In 2020, a total of 6.5 million homes were sold, but the numbers don’t hold steady from month to month. So what is the best time of year to close a deal? Even people outside of the real estate industry are aware that the market fluctuates and shifts with each rotation around the sun, but sellers and agents must also be mindful that there are best and worst months in the real estate market.
Life doesn’t always allow sellers to place their homes on the market at the ideal time of year, but that doesn’t mean they’re destined for a bad deal or endless “For Sale” signs. There is always a buyer somewhere. Real estate agents may just need to use a different strategy at certain times of the year. For context, here are the best and worst months in the real estate market and tactics you can use to close the sale at any given time.
Selling a Home in the Spring
When you think about it, it’s only natural that the real estate market is usually booming in the springtime. When spring begins, eager buyers defrost their wallets and start touring houses. Blooming flowers enhance the property’s curb appeal, while natural sunshine highlights the home’s best features.
In case you weren’t aware, springtime is also the beginning of the residential sales season. Families with children often need to begin looking for a house just as the school season comes to a close. From there, they have the whole summer to complete the necessary paperwork and move in before school starts up again in autumn.
The high demand in the spring means that the offers are rolling in for real estate agents. Fierce competition in the springtime ensures that real estate agents can close deals at a higher price than they typically would at another time of year. Studies show that in May, sellers can expect to close deals at an 8.3% premium. To put this in perspective, the median home value in May is $181,000, while the median sales price is $196,000.
However, sellers must keep in mind that an increase in demand can only increase supply. Real estate agents must pull out all the stops to stand out against competitors. Sellers would be wise to keep an eye on competitors to confirm they’re pricing homes to sell.
Selling a Home in Summer
Real estate agents can expect competition to decrease by the summertime since most of the properties listed in the spring are already off the market. The best time of year to close on a home is in June, just as summer begins, with a price premium of 9.6%. However, from July onwards, expect a steady decline in the price premium.
That said, bright summer days ensure that curb appeal remains high. In addition, many families are ready to close deals as soon as possible before school begins. Use this to your advantage by remaining motivated through the summer months.
Real estate agents looking to close deals in the summer should keep monitoring prices to ensure that they are competitively pricing the homes in their portfolio. The majority of homes still available from the springtime are left overpriced as the market dips.
A lull in qualified leads can also complicate pricing in another way. Back in the spring, real estate agents could quickly read their audience and figure out how much serious buyers were willing to pay. However, many potential buyers are preoccupied with other matters during the summer months. They might be on vacation or taking care of their children while school’s out. And if you reside in an area that’s scorching in the summertime, buyers might not be interested in traveling to an open house in the heat.
This lack of competition amongst buyers creates the biggest pitfall of closing deals during the summer — that buyers may attempt to decrease closing costs by asking for sellers’ concessions. Ultimately, as the summer fades away, serious buyers are much more likely to negotiate with real estate agents.
Selling a Home in the Fall
By the time autumn arrives, most potential buyers will be preoccupied with back-to-school and gearing up for the holidays. As a result, real estate agents can expect their pool of potential buyers to diminish. The available market in your area is also dependent on the weather where you live. In some areas, it might begin to snow as early as October, a challenge unfamiliar to agents in tropical environments. But whatever the case may be, there’s a good chance that the sale property may benefit from the vibrant appearance of the fall leaves.
Agents shouldn’t anticipate a competitive market during the fall, as the supply of properties is much lower. However, the demand will have decreased at this point as well. In September, the median home value is $185,368, while the median sales price is $195,000. In translation, real estate agents should only expect a sales premium of 5.2%. And by October, the sales premium can drop to a mere 3.8%. During this time of year, real estate agents will have two types of sellers. The first seller is desperate to close on the deal before the holidays, while the second will choose to stay home until next spring.
During the fall, real estate agents will need to up their game to attract more qualified leads. Houses that didn’t sell during the warmer months will drop in price considerably to draw in buyers. Real estate agents should begin to use negotiation tactics, like listing the home just below market value or offering the seller’s concessions.
Selling a Home in the Winter
Generally speaking, winter is the worst time of year to put a home on the market. Sellers should expect the supply and demand to shrink unless they reside in an area with a robust seasonal market. The sales premium in November is only 4.7%. December has the lowest sales premium of the year, at only 3.7%. Despite this, there are a few advantages to having a listing during the winter months.
First off, a smaller amount of properties on the market means an increased likelihood that people will see your listing. No matter the time of year, there will always be qualified leads in need of purchasing a home immediately. A lifestyle change may require them to move in the winter, while some buyers want to purchase a property before the end of the year to reap the tax benefits.
While some sellers worry about pipes bursting due to freezing temperatures or the cost of heating the home for each showing, your primary concern should be the likely decrease in offers. Winter is the time of year when real estate agents must exhaust every option available to get a property off the market. Sellers can increase their number of qualified leads by leveraging their social media presence and enlisting the help of experienced cold callers to develop a sales strategy based on your ideal customer’s profile.
Call Motivated Sellers
Although specific times of the year are more challenging for real estate agents than others, don’t let this derail your efforts. You can rise to the occasion by using every tactic at your disposal to generate qualified leads and close sales in any season.
Set yourself up for success in the real estate business by recruiting a team of experienced cold callers. Call Motivated Sellers can raise your sales to unprecedented heights during both the busy and slow months. We are an American-based real estate cold calling service, complete with a highly skilled sales staff. Leave the hard work of vetting your leads to us so that you can focus on closing deals and increasing profits. By partnering with Call Motivated Sellers, you can expand your reach without losing that human touch.
Ready to uncover new leads for your real estate business? Contact our team today!
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