The fourth quarter of the year can be a roller coaster ride for real estate investing. Those that recognize the potential of the upcoming months, and are prepared, can find it is the best performing period of the year. Those that aren’t can be fooled into making many disastrous moves. Essentially, ignorance can result in several missed opportunities. So what do real estate investors need to know about how the market acts in the fourth quarter, and the smartest moves for capitalizing on the most important dates?
The Dips and Spikes in 4th Quarter Real Estate Prices
The last quarter of the year typically brings a series of ups and downs for real estate asking prices. Those new to the business, and unaware of this cycle, can get freaked out and make major mistakes. Those that have invested in their real estate education and understand their markets can use these pivots to their advantage. On a national level, Realtors say there is a predictable dip in listing prices in the fall. This comes after the summer rush, and is caused by a combination of fewer buyers in the market causing some agents and sellers to panic that their homes haven’t sold, as well as fewer buyers being active in the market during these weeks. Those unfamiliar with this trend may slash their listing prices, sell off properties out of fear, or hold off buying. However, it is crucial to note that prices can bounce back significantly as the industry experiences a flurry of deals before year’s end.
This makes the fall a great time for real estate investors to seize on acquisition opportunities and load up on contracts and inventory to be resold or leased before the end of the year. Note that seasons can vary depending on the location, and some warmer destinations only see their markets blossoming from November through April.
Halloween
The end of October brings Halloween. This is a great occasion to capitalize on for real estate marketers and those selling homes. Halloween offers an array of great marketing opportunities for all home sellers, including real estate investors and agents. This may include themed open houses, themed social media, blog and email content, and unique networking opportunities. The key is planning ahead, standing out, and having marketing materials ready in advance.
Thanksgiving
Next up is Thanksgiving. This can be a highly volatile time for marketing. Timing is everything. Campaigns at this time of year can be a huge hit or terrible waste. Many real estate business owners will find the best ways to approach Thanksgiving is through taking the time to plan ways of showing their gratitude to employees, vendors and strategic partners, as well as expanding their personal networking opportunities.
The Black Friday Blitz
Black Friday sales are starting earlier and earlier. They have now expanded throughout the following week with Small Business Saturday, Cyber Monday, and Giving Tuesday. Real estate investment firms really can’t start preparing for this rush early enough. Themed marketing and events should be planned for each occasion. There is no reason real estate shouldn’t be one of the most bought and sold items on these days. This is also a time when many can scoop great deals for their organizations. Think about all of your building material, office products and technology needs for the next year and look out for great bargains. Also strategize what you and your real estate company will do in honor of small business and giving and look for ways to build on it each year.
End of Year Holidays
The end of year holiday spree can be both highly rewarding and highly frustrating for real estate investors. Which it will be for you this year depends on grasping the trends, maximizing the opportunities, and knowing when to relax and enjoy yourself.
The last couple weeks of the year can be an emotional roller coaster for those with deals in the pipeline. Everyone want to close before the end of the year, and half of the industry in on vacation. Deals move extremely slowly. Just be prepared for it. The time to be signing contracts is before December 15th. After this, everyone is effectively on holiday, at least mentally, if not physically.
For marketing for new business and filling the pipeline this can mean the best strategy is to ramp up marketing efforts from Halloween through December 15th. Then focus on networking and outbound efforts to set up appointments for January. Before Christmas the leading investors will have their January calendars booked solid with appointments with buyers, sellers, renters and private lenders. This still leaves a week to truly unplug. Let automated marketing do its job, while you relax and rejuvenate for the New Year rush.
Last, but definitely not least; remember to be maximizing tax deductions and write-offs over the next weeks. Talk to your accountant and identify whether you should be increasing expenditures on property, business resources, labor, and contributions to retirement accounts, as well as forming new corporations to slash tax liability ahead of the deadlines. Most will find they can cut thousands from their tax bills, while simultaneously multiplying their annual real estate investment returns.
