I often get asked by clients, “When is the best time of the year to make an offer on a property.” I have approached this question from a number of different angles, and I feel the best answer to that question is, “When you find the right property.”
This answer has been derived from countless occasions I have seen clients experience in disappointment when a property they truly wanted to own went to another buyer because my clients were waiting for ‘the opportune moment.’ However, the time when you locate the right property could be beneficial because of the cyclical nature of the Steamboat Springs market.
I am a firm believer in buying when the market is low. And with statistics dating as far back as 1995, the quarter of the year that is the slowest in Steamboat Springs is typically the first quarter (January , February and March). This may come as a surprise to many, for those three months are right in the heart of ski season. However, the nature of our market is that those entertaining the ownership idea begin to think about a property when visiting Steamboat during a ski vacation, but only ratify the decision by coming back for a summer visit…and once someone visits Steamboat Springs during the summer, it is an easy decision to make the Yampa Valley a more permanent part of their lives.
With this in mind, it is logical that the second (April, May & June) and third (July, August & September) quarters are the busiest.
Sellers receiving offers on their property this time of the year may take a closer look at a lower offer than, say in the summer, for they know this is a slow time and they will be faced with several more months of carrying costs before they may get another offer. Accepting a lower offer now may end up saving them money in the end. In addition, who knows what the market will be like, come summer.
If you’re a buyer, not only will the seller take a closer look at your lower offer, but if the property is used as a rental, you’ll still be able to receive the lion’s share of rental income from ski season, not to mention the ability to use it during that time.
And specific to today’s economic factors, interest rates are at historic lows right now!
Timing may never be better than over the next few months to make your move. Please give us a call and we would be happy to discuss the opportunities that are now available.
Tags: real estate buying tips, steamboat springs real estate, timing a Steamboat real estate purchase
