Real estate investors know that good timing can lead to a good deal when buying investment properties. Certain times of the year (months, days, and even specific dates) are generally known to be the best time to buy a house for investment. For example, a public holiday like Easter or Christmas can offer great buying and investment opportunities. And while the spring real estate market is traditionally considered a peak time for selling properties, the Easter holiday is actually an exception. Keep reading to learn why you should make plans for buying an investment property on Easter Sunday and know how to make sure you’ll find the best deals for real estate investing in 2019.
Related: Spring Real Estate Market 2019: Find Out What’s In Store
Why Is Easter the Best Time to Buy a House?
Though winter is generally more of a buyer’s market and spring a seller’s market, there are still benefits to buying a house on Easter which make it the best time to invest in real estate, specifically:
#1 No Bidding Wars Over Investment Properties
Many would advise real estate investors not to buy investment properties during spring months because they’ll face more competition. Not only will you have to compete against other real estate investors, but also against regular homebuyers who believe that the spring housing market is the best time to buy a house before the back-to-school season approaches. So yes – there’s no doubt that Easter Sunday is in sync with one of the busiest periods in the US housing market since it falls in the middle of spring.
While this may discourage a real estate investor from entering the market during spring, you must keep in mind that Easter is a public holiday which affects the level of competition. You see, most homebuyers and investors prefer not to worry about finding properties for sale and would rather relax during holidays. But the thing is: while they may be relaxing, the real estate market never sleeps!
Savvy real estate investors put offers on investment properties for sale when sellers likely have no others, thus increasing their chances of closing. This typically happens during the Easter holiday which is why it’s the best time to buy a house for real estate investing. Competition is almost non-existent and the chance of you entering a bidding war are slimmer. This is especially beneficial for beginners in the real estate market who are worried about competing against more experienced investors.
#2 More Homes Listed for Sale
There’s another reason why you should start your property search now and find an investment property to buy during Easter weekend and it is rather interesting. Though competition makes the spring real estate market a seller’s market, this is actually the time when we see property listings multiply, giving real estate investors a greater choice of investment properties. That’s interesting because more homes for sale is a feature of a buyer’s market, not a seller’s market!
Because sellers favor spring for competition and higher home prices, more and more of them prefer listing their homes for sale during this time of the year. While this might not be the best time to buy a house for someone looking to find cheap properties, it’s certainly a better time than June when homes sell the fastest, leaving you no room for negotiations. Moreover, you’ll have to pay premium prices in June- higher than at any other time of the year!
Related: Why Spring Is the Best Time of Year to Buy a House for Investment
On the other hand, the lower competition and more options available during spring months (and on Easter weekend specifically) makes for a great combination for real estate investing. Higher housing inventory makes it more likely that you’ll find the perfect investment property for sale that meets your criteria and can bring in a good return on investment.
Want to find cheap investment properties with high returns on investment in your city/neighborhood during the best time to buy a house? Sign up for free and use Mashvisor’s Property Finder.
But Wait…
We did say that timing is an important factor for a good real estate investment, but that’s not all! If you’re in the housing market to invest in real estate this Easter, here are the most important factors to keep in mind to ensure that buying a house will turn out to be a good investment decision rather than a financial disaster:
Start with Finding the Right Location
When it comes to searching for investment properties, the first thing to focus on is where exactly the best places to invest in real estate are. You might be interested in buying a house in your local housing market, but is it a good investment location? To find the answer, a real estate investor needs to conduct a thorough real estate market analysis. It allows you to evaluate a certain market and investment properties in that market to find out whether or not it’ll make a good location for real estate investing.
Here’s our guide on How to Perform a Real Estate Market Analysis
If you’re interested to find out whether a certain city is a good place for investing in 2019, head over to our real estate investment blog. We regularly publish market reports about the best cities in the US housing market with real estate data and analytics proving why you should invest there during the best time to buy a house. For example, you might be interested in checking out these cities:
According to Mashvisor’s Investment Property Calculator, these are the top cities for real estate investing in 2019.
Have Your Investment Property Financing Ready
Once you’ve chosen a housing market, it’s a good idea to have your financing ready during the best time to buy a house before you start searching for properties for sale. For example, if you’re taking out a loan to finance the purchase, make sure to secure financing and include a pre-approval letter in your offer. In general, sellers are more encouraged to accept offers from buyers who are financially prepared. So, doing so will give you an advantage when competing against other investors and homebuyers. Here are a few financing tips to keep in mind:
- Start shopping around for a mortgage as soon as possible
- Make sure you have a good credit score as it’ll make a huge difference in terms of interest rate, monthly payments, and total cost
- Save up for a 20% down payment
- Save cash for closing costs
Having investment property financing taken care of will make it much easier and faster to close the deal during the best time of year to buy a house for investment.
Run the Numbers and Do the Math
A good real estate deal depends on the numbers behind it. Meaning, after finding a house for sale, real estate investors always run the numbers to make sure it makes financial sense and will bring profits. In reality, the best time to buy a house for real estate investing is when you find a home that ticks all the boxes. This requires an investment property analysis which allows you to assess and compare the targeted house with others in the same location to determine its profitability.
Key metrics to use when analyzing investment properties are cap rate, cash on cash return, and cash flow. These metrics will give you an estimate of your potential return on investment before buying and committing to the property. It’s best to use an Investment Property Calculator (like the one Mashvisor provides) to make this process quicker and get more accurate numbers.
To start analyzing the best investment properties in your city and neighborhood of choice, click here.
Don’t Forget to Inspect the Property
Finally, one of the most important things to do to ensure getting a good real estate investment during the best time to buy a house is to do a home inspection before sealing the deal! First off, you may not find a professional home inspector willing to work the holiday if you keep waiting. Secondly, this gives you an opportunity to uncover defects in the investment property while there’s still an opportunity to negotiate the fixing of those defects. In addition, by having a pre-offer inspection, you can make your offer cleaner by removing the home-inspection contingency in the purchase offer, making it more attractive to the seller!
Related: 14 Things to Consider Before Buying Investment Properties in 2019
Now that you know that Easter is the best time to buy a house, it’s time to start taking action! Don’t wait until Easter weekend to actually get started – you simply won’t have enough time. Take advantage of the time you have now and start looking for the best investment properties for sale in your city/neighborhood of choice. Start out your 14-day free trial with Mashvisor now to get started!