We’re in the heat of back to school season again. It can bring some pretty big changes in the market for real estate investors. What moves can you prepare to make to capitalize on the weeks ahead?
Know Your Seasons
One of the things which can really throw off newer real estate investors is how the market changes with the seasons. If you haven’t had several years of experience these shifts can cause you to make bigger commitments than you should, or panic and sell out cheap when you shouldn’t. You have to know your seasons.
Typically, there is a rush right before school starts again. This timing may depend slightly on your area. Kids may be heading back to school over a 4 to 6 week period. The end of summer vacations and the migration it causes also lines up with this. Population volumes and buyer pools can change a lot during these weeks.
Back to school is a good time to sell and rent. Buyers and tenants are under more pressure than ever to take action, and so are their real estate agents. Then it calms down. It becomes harder to sell, it takes longer to sell. Agents and sellers get nervous, and prices traditionally drop for several months.
So, what smart moves can investors make during this season?
- Go Hard
The end of summer rush is a good time to go hard with marketing and advertising. Stand out, get noticed, boost those showings, move units that are for sale, and lock in leases while renters are up for grabs. If you miss this window, many won’t be in the market again for at least another year. It’s okay to spend a little more and work a few extra hours at this time. You’ll get some slack in the weeks after.
- Go with the Theme
Get into the spirit of the season. Host end of summer BBQ networking events. Hold themed open houses. Get involved in charity drives providing backpacks for school kids. Make sure your social media posts and blogs are relevant to the information people are desperately looking for. Consider specials to help those on the fence, such as help with moving.
- Chill Out
Then relax a little. Be mentally prepared for the calm in the weeks after all the kids are back in school. Schedule yourself a long weekend off to reenergize and recalibrate. People will be focused on other things like reorganizing after vacation, redecorating for the new season, and getting children on those tough school schedules again.
- Get in Buying Mode
Then it is time to going into buying mode. When it gets quiet, and there are fewer buyers and renters out there, nervous agents may negotiate their commission rates. Sellers may be ready to cut prices or offer seller financing terms. This is especially if they moved and didn’t sell their old place in the summer. On top of all the seasonal stress they may be juggling two mortgages, and trying to keep an eye on a home that isn’t close by. Make offers. Line them up. The market is going to bounce back soon, and you’ll want the inventory.
- Be Ready
Make sure you are lined up for the next rush. Once we start nearing Black Friday buyers and other investors can be more active again. Some tenants will be as well. People will be looking for deals and even real estate as holiday gifts. Rev up that marketing so that you are at the top of their mind and can bring in fresh revenues before you have to do your own holiday shopping.
- Learn Too
This is the ideal time to get your own mind back in school too. Set your mind on something new to learn. Add a new skill, strategy, or niche by picking up a new book, or online course from the academy.