Many home buyers, real estate agents, and industry professionals recognize that spring is the proverbial bread and butter month for the real estate industry. While the sentiment can vary slightly based on location and seasonality, April showers tend to bring May open houses. With warmer temperatures bringing potential buyers out from hibernation to explore newly placed “For Sale” signs, it can be said that April showers bring May open houses. Throughout bustling cities, the sounds of new construction can be heard bright and early with industry professionals, like Sean Tissue, and brave novices scrambling to finish renovations before the culmination of the coveted season. With the spring season so ingrained in the mind of the industry, though, many investors overlook the idea of investing in real estate throughout the winter months, passing up golden opportunities to beat the rush and potentially set the market. With several benefits to pursuing this non-traditional route of investment, winter can prove to be a great time for real estate investment.
Location, Location, Location
As the most important deciding factor for real estate purchases, the location of potential homes, investment properties, and real estate can naturally create a blossoming opportunity, even in the midst of the coldest winter. While the national real estate market showcases ebbs and flows that can affect the majority of locations, certain “hot pockets” exist where the demand for modernized housing outweighs the current supply, and the supply of these properties can maintain speed throughout the winter as demand drops, creating an opening for savvy investors. In large cities, this can equate to swiftly developing trendy neighborhoods, which are not only convenient but also become coveted as a result of amenities, nightlife, aesthetics, and continued development. Once a modernizing pocket becomes popular, investment opportunities can grow within the winter months, in a perceived rush to capitalize on the trend of a particular neighborhood. While inventory may be a bit more limited, opportunities for investors, home buyers, and other professionals can be plentiful based on the popularity of a particular location.
A Slower Pace
In many bustling areas, homes are listed for sale on a particular day, receive multiple offers by that evening, and go under contract within three days, likely even above full asking price. Alternative sources of real estate investment like Sheriff’s Sales and Foreclosure Auctions also see this trend as they are seemingly bursting at the seams with potential investors looking for their next opportunity. Thus, winter offers a small reprieve from the potential chaos of real estate investment and provides better mobility for home buyers, potential sellers, and investors. Throughout this time, interested real estate investors take advantage of the slower market to focus on longer-term renovation projects, dedicating winter months to processes like full demolitions, complete renovations, and other extensive projects with the goal of placing their completed projects on the market in time for the spring market.
Practical Insights from Nature
In addition to the benefits the winter real estate market can give to those brave enough to venture out in the cold, winter’s natural elements can provide insightful clues about the status of a property, especially in harsh climates. For investors and homebuyers alike, the sight of a snow-covered roof can indicate in-tact insulation, as heat isn’t escaping and melting the snow. Additionally, snow-covered months would be ideal indicators of potentially leaking roofs, basements, and other crevices that could otherwise be missed throughout the summer. Thus, the harsher conditions of winter can be used as a tool to actively gain first-hand knowledge regarding a property’s condition.
Budgeting, Leverage, and Competition
While there are fewer available properties to choose from, there are also fewer competitors seriously perusing the market for available investment opportunities. Simultaneously, sellers who are looking to part ways with a property can be more willing to negotiate on pricing while the market is significantly slower than during the summer months. This gives real estate investors a unique leverage point throughout the winter, one that could save investors tens of thousands of dollars the right circumstances. In the case of Foreclosure Auctions or Sheriff’s Sales, it may make sense for financial institutions to part ways with properties at a lower cost, rather than waiting until Spring. Thus, winter is a great time to ask for concessions, submit lower offers, and take advantage of leverage that is not usually present during the spring months.
As the winter lull slows down many industries, real estate investors like Sean Tissue are more likely to receive swift, effective, and low-cost services within these associated industries. From working with agents who can dedicate more time to finding the perfect investment opportunity, to lenders who aren’t stretched too thin, and contractors who aren’t bogged down with Spring’s renovations, industry professionals are able to offer their services in a streamlined, effective, and cohesive manner. With daily operations slowing down across these service providers, investors can also negotiate pricing, and develop long-term relationships that would be harder to build throughout the busier seasons.
Marketing, Skill Development, and Investment Savvy
For real estate investors of all varieties, winter is also a great time to develop the skills that will translate into a fruitful busy season. For example, learning to take effective “before” and “after” photos can generate better listings and traction, while learning to market rental properties can result in successfully renting out space immediately. Winter is not only about finding the next investment property, but also about honing the skills that are needed to complete all tasks associated with the investment, and building a strong foundation for the busier months ahead.
From limited competition, to the increased pricing leverage, winter’s unique conditions can be lucrative, seamless, and fruitful for real estate investors across the board. By recognizing these potential benefits, dedicated investors can take advantage of winter’s opportunities, setting the tone for a successful year!
About Sean Tissue and Centureon Investments
Operating successfully for almost a decade within the Detroit, Midwest, and Southeast real estate markets, Centureon Investments is a real estate investment company specializing in providing investor partners with comprehensive services throughout the lifecycle of their investment. Unlike other turnkey real estate management companies, Centureon works in tandem with investor partners prior to investment, including forecasting local market trends, providing insight related to potential cash flow and rental success, and creating specific blueprints to meet unique investor needs. Centureon leverages the expertise of industry-leading staff to provide ongoing management tools for rental investors, including marketing and tenant procurement, maintenance and physical repairs, as well as ongoing tenant satisfaction through communication and management tools.
With varying entry points dedicated to meeting the specific needs of various investors, Centureon Investments provides investment opportunities in single-family homes in the Detroit market starting at $45,000, all the way up to multi-family units in the Midwest for up-to $$1,000,000+. With such vast offerings, the company has a unique ability to work with investors to expand their portfolios. Since its inception, Centureon has utilized this multifaceted approach to build a positive reputation among investors with also developing meaningful long-term relationships and growing the company’s own real estate portfolio.
At the helm of Centureon Investments is CEO Sean Tissue, who has leveraged his own personal experiences as a real estate investor and developer to create, maintain, and champion Centureon’s comprehensive investment platform.