Buy during winter months or bad idea?

Question

I'm mulling over the concept of waiting till winter months, January - February specifically to start putting offers on 2 unit MFH's.  My questions are:
1)  Since this isn't during busy season of tenant turnover, lots of selling, etc. I am assuming the properties I find will be more inclined to sell (thus negotiate) then during the summer months?
2)  Since I am on the east coast, can snow cover up problems with homes (cracks, yard issues, etc.) and make it harder to inspect them or does the colder weather make issues even more apparent thus easier to detect?
3) What has been your experience of buying Spring/Summer vs. Winter?

I feel like I can get a better deal during the winter months when sellers are more motivated to sell since they're selling during a slow season but hoping you guys can share your experiences and knowledge.

Thanks!
Shea

Shea Stringert · Answer

Thanks for all the responses.  It seems like getting a deal is easier during those months for sure but I def didn't take into consideration that it's more difficult to get work done during those months.  My plan however is to buy something mostly turnkey that needs some light cosmetic work to increase rents with - nothing major so this shouldn't be a big issue.

Geof Greeneisen · Answer

For me November and December have been my best buying months. I start putting in, what I would call low-ball offers in October. The last two years I've closed on several houses just before year end. All of these were bank owned properties.

I try to buy at tax sales which for us are in August and September. If I'm not able to pick anything up there I know I'll have luck in the winter months.

Just start putting in offers you would consider to be sweet-heart deals and see if you get one or two. Good luck!

Patrick Snyder · Answer

I agree with Kevin and have had the same experience: Banks will dump properties at deep discounts in December, and they'll want to close quickly, so you should benefit from buying REOs.

Personally, unless I find a great deal, I prefer to shop in late winter, late February/early March.  This way, I can have it rehabbed when buying season it just getting started.

As for inspections, I have never run into a problem inspecting in the winter.  Aside from not being able to test the central air, everything else is manageable.

Rob K. · Answer

I've found that winter can be the best time to make deals. When everyone else is out Christmas shopping, I like to go house shopping.

As far as tenants go, most of them are getting their tax refunds in late January into February. That's when I've found that a lot of people are moving. It's also the best time to do a lease option and get a large down payment.

Lynn McGeein · Answer

Our best deal was an offer made in February, we asked for 60 days to close so closed in mid-April, fixed it up and rented by May 1.   We think it's the perfect time to start making offers as seems to be less competition from owner-occupants, so more chance of seller taking lower offer to get it sold more quickly.

We did close one end of October, and it sat vacant until January, so I would definitely avoid late fall closings as found out the hard way that renters seem to be busy at holidays.

Kevin Kaczmarek · Answer

personally if you are in that mode of determining when to buy, you might want to consider the last few days of December. Banks specifically are ready to make their best deals, and same applies with private sellers, if you start your due diligence soon.

Kyle J. · Answer

Personally, I wouldn't make it a goal to wait.

It may be the "slow season" for people looking to buy, but it's probably also the "slow season" for people looking to sell (i.e. less inventory to choose from).

Plus if you need to do any repairs/work outside the home, the inclement can make that harder to accomplish.

I recently had to do some work (i.e. patching stucco, painting, new exterior doors, etc) outside of one of my houses that I just bought and was in the process of remodeling.  Fortunately for me it was nice and sunny out, but I was just telling someone how much harder it would have been if it had been the rainy season.  Not even sure I could have done it at all.