Buying a fix and flip home in the winter may seem like a recipe for disaster. The prime time for real estate is in the spring and summer, but you may come out ahead if you think carefully and remember these things that can affect your budget.
Sellers may be more motivated to unload their property in the winter, leaving you room to negotiate cost and closing dates. There are fewer buyers, so you aren’t competing with as many people. Many sellers want to get their home taken care of before the holidays, which puts you in the driver’s seat.
You Can See Curb Appeal in the Harshest Conditions
Sellers often spruce up their home to make it look its best to get a better outcome. You can save money on your fix and flip because you’ll be able to find drafty windows or a sagging roof that could be cosmetically covered in nicer conditions.
Year-End Tax Advantages
Sellers may be more motivated to sell before the end of the year because they’re looking to improve their tax situation. As a home buyer, you could take advantage of tax deductions that apply to your fix and flip.
Contractors Have Fewer Job Opportunities
You could save money by working with contractors who need jobs during their own slow season. You’ll get a more competitive quote, quicker than you might in the spring or summer months. You may even be able to negotiate more effectively, bringing your costs down even more.
Your Realtor May Be More Focused on You
Real estate slows down in the winter, which gives your agent more time to negotiate for you, whether you’re buying or selling. The winter may be a great time to work on your fix and flip project.
Need financing for your fix and flip project? Contact Third Bay Capital to discuss funding options.