As the year draws to a close, most of us plan to do some extra spending for the holidays. But on top of the money we plan to spend on gifts for our loved ones, there are also compelling reasons to think about making real estate purchases during this time. Here are five reasons why you may want to make a real estate investment during the holiday season.
1. Home Sellers Are Highly Motivated
A motivated seller can be an early holiday gift for the real estate investor. There are a variety of reasons seller motivation rises during this holiday season. Some people are selling their homes and eager to move into the new one before festivities begin. Other sellers may be anxious if the year is drawing to a close and the home has been on the market for a long time. Whatever your buyer’s circumstances, you can use their motivation as leverage during negotiations or to gently request flexibility on pricing and other issues.
2. Market Forces Can Work in Your Favor
Real estate sales overall drop during the holidays. This is one of many reasons sellers are more highly motivated this time of year. Since business is slower in general, you will also be competing against fewer other buyers. With fewer offers being made on the home you are eyeing, your offer begins to look more attractive to an already motivated seller.
3. Closing On A Home Quickly is Easier During The Holidays
The end of the year doesn’t just motivate sellers. Lenders and real estate agents are also motivated to wrap up business as the year ends. Agents, after all, are humans with families who want their commissions for holiday spending. While you must still make time to do your due diligence, the fact that all parties are motivated can speed up the closing process.
4. Interest Rates Are Lower
As a buyer, you have a bit more leverage over the lenders who want to close up shop for the year during the holidays. Further, interest rates tend to be lower during this time of the year because business overall is lower. If you’re in need of financing, take advantage of the fact that lenders will lower their interest rates to keep business coming in while there is less market activity overall.
Protect Your Holiday Real Estate Investment
If you do decide to take advantage of these benefits and make an investment, don’t forget the importance of protecting your new investment from lawsuits. You’re already making a smart decision by taking advantages of the perks the holiday season offers investors. Continue the trend by making the smart choice to protect your real estate assets. If you already have an asset protection plan in place, make sure to incorporate each new purchase into your asset protection structure. The experts at Royal Legal Solutions are here to help you. Whether you need to create an entity for asset protection or execute a transfer into an existing structure, we can assist and advise you. The last thing you want to worry about during the holiday season is a lawsuit. So give yourself the gift of professional legal advice that will protect your real estate business. Schedule your consultation today.