Insiders Secrets for Buying an Investment Property Series
Buying an investment property in Utah requires an understanding of not only the seasonal shifts in market activity but also the weekly flow of the market.
I can’t emphasize enough that you’ll be a more successful and less stressed investor, if you know how to use the flow of the market to your advantage. You need to work when no one else is working, buy when no one else is buying. You need to go AGAINST the flow.
The Weekly Inventory Cycle
Homes tend to come on the market Thursday and Fridays. As the weekend approaches buyers have time to devote to their home search and attend open houses before they go back to a busy work week on Monday.
That means if YOU are shopping on the weekend, you’re not getting a deal. Historically speaking, between a Saturday and a Monday, the market drops by nearly 1%. A seller is much more difficult to negotiate with on a weekend when they are seeing a lot of interest/activity.
The Yearly Inventory Cycle
Inventory in Utah has a yearly cycle that looks like a bell curve, with the low periods from Late November-Early February, and activity peaking Mid April – Early July.
We mentioned working when others are not working, and this same principle applies to holidays and especially to the end of the year.
Most people see the time between Thanksgiving and New Year’s Day as “holiday” time, so they work half as hard. Savvy investors, however, know that this is the best time all year to find deals, for two reasons. One, during this season, banks are in a hurry to unload their properties before the new year, and two, there is less competition.
Once you’ve decided you’re ready for another (or your first) investment property, you really need to be constantly aware of when things come on the market, how long they’ve been there, when there is a price reduction, etc. The best way to do this is with automatic listing alerts, contact me if you’d like some set up so you don’t miss out.
Next up in our Insiders Secrets for Buying an Investment Property series is a must-read – Real Estate Financing. These tips may open your eyes to options you haven’t seen before.
Parker Properties, Inc.
With a background in property management, I know which homes make the best investments and excel at managing those properties for you after we close. My meticulous eye and high standards are applied to every aspect of caring for your home & your investment.
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1192 Draper Parkway #154
Draper, Utah 84020
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