The Best Times to Buy and Sell Your Apartment Investments
The more you look at your apartment community, the more you feel it’s the right time to sell it. That little voice inside of you is telling you that selling the property now would help you to save on the cost of renting the property out long-term. Plus, it may result in a larger payday than you ever thought was possible years ago, when the market wasn’t as robust.
Or, if you’re an investor who is ready to buy apartment investments, something is tugging at your heart and telling you to go ahead and buy your first community. You have your eyes on a property where you can get a steal of a deal. And the cash flow that comes with owning an apartment would sure be nice.
Yes, those all sound like good reasons to either buy or sell your apartment investment. But the question you should be asking yourself is, when is a good time to buy or sell an investment property?
Here’s a rundown on the best times to buy and sell your apartment investments.
When to Sell
Research indicates that the quantity of real estate market listings increases during the first six months of any year. Then, inventory rises again during the early fall months. In light of this, if you are investing in apartments and would like to finally sell, it is in your best interest to list the property between January and June, if possible.
In fact, consider listing apartment investments between April and June, or during peak season. This will boost your chances of selling these properties rapidly—perhaps 10 to 15 days sooner, compared to the remainder of the selling seasons.
What If You Don’t Get Into the Market in Time?
Let’s say you finally decide to sell your property in July—long after the early spring selling season. In this situation, it may behoove you to simply wait until after the Labor Day holiday. This is generally the second-busiest time for buyers.
Also, if you are at liberty to do so, it may benefit you to remove an unsold apartment community from a listing between July and August and simply relist the property during the fall months. Likewise, if your property isn’t sold by late fall, you might want to pull the listing off between Thanksgiving and February, as buyer activity isn’t as strong during the holiday season and winter months.
There’s no doubt that seasonality has a major impact on when to buy or sell investment property. However, keep in mind that, when it comes to apartment investing, sometimes you have buyers from out of town, and they don’t always follow the same fall/spring selling and buying schedules as those in your local area.
Likewise, online marketing is changing the game. So, you could still experience some success with selling apartment investments outside of these ideal periods.
When to Buy
If you’re looking to buy an apartment investment, your goal should be to complete the deal during the spring months. Why? Because real estate prices are usually lower during these months. As a result, you increase your chances of experiencing price reductions.
Note that price reductions are also relatively prevalent in the months of September to October, when compared with other months.
What About During the Summer and Winter Months?
Although spring and fall are two of the best seasons for buying an apartment community, that doesn’t mean you should avoid looking for a property during summer or winter. The reality is, in the summer and winter, sellers of apartments may be more determined to off-load and, thus, might be more open to negotiating. This gives you an edge as you seek apartment investments.
Keep in mind that, during the summer or winter, there may not be as many complexes on the market. However, many buyers are not hunting for properties during this time, which means less competition for you.
Also, the benefit of buying properties during the holiday season, in particular, is that a seller is often more open to an offer if he or she can picture himself or herself making sales before the holiday season is over. After all, this means that he or she doesn’t have to hold on to on-the-market apartment investments during the cold winter months.
What About the Start of the School Season?
If you’re considering buying an apartment complex once students are back at school, this isn’t a bad time to make a deal, either. Specifically, it may be beneficial to buy during the last week of September. Why? Because many sellers are back from their summer vacations during this time and are, therefore, ready and determined to finalize the real estate objectives they have established for themselves.
In fact, don’t be surprised if you experience a substantial dip in competition from other buyers during this period. You may also witness an increase in the amount of time that properties stay on the market.
Start Selling or Buying an Apartment Investment Today
If you are looking to sell or buy apartment investments, now is a great time to jump into the market. Of course, if you’ve never been through this process before, you may feel intimidated and unsure as to which steps to take first.
Fortunately, I have completed numerous syndication deals. I can show you how to invest in apartments, including how to seal the deal the first time around. Are you interested in apartment syndications? Get in touch with me if you’re an accredited investor looking to add apartments to your portfolio.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.