As the spring season kicks in, more properties are being listed and sold as part of the annual buyer surge during this time of the year. But while the spring rush has become a common occurrence in the property market, investor Brenton Tidow believes that while now is the best time to sell a property, it is not the best time to buy one.
“Spring is an ideal time to sell, not buy. It’s a fine double-edged sword, as the surge in spring buyers brings about increased competition, which can hike prices and put pressure on budgets,” said Tidow.
Tidow further offers five reasons why spring may not be a good time to buy property:
- Price hikes
The increased competition during the spring rush can cause a rise in advertised sale prices. For Tidow, working with a real estate agent even before other buyers flock in can give you access to a large number of listings both on and off the market – and at better deals.
- Less negotiating power
During active periods like spring, negotiating power usually rests in the hands of the seller, not the buyer. In fact, properties sold at auction often get sold above the asking price.
- Demand outweighs supply
Prices skyrocket when demand is greater than supply, and that is what happens during the spring rush. However, Brenton encourages buyers not to give up, as a lot of re-zoning and infill activity are underway.
- Buyer burnout
Buyer burnout usually results from the buyer feeling overwhelmed by the market competition. According to Tidow, a flurry of buying activity usually precipitates this occurrence.
“In such times, I encourage buyers to be realistic and pull back,” said Tidow.
“If you cannot find a purchasable property, consider renting for several months and return to the market after spring.”
- Risk of impulse buying
Buyers could experience the fear of missing out amidst the strong property competition. This could affect their purchasing decisions negatively.
“While you may miss out on your first choice, it is unwise to be in a hurry to buy, or worse overlook the potential of the market in the months preceding spring, when you may find a better deal,” said Tidow.
“Buying a property is a major life investment and is best done with a strategic rather than emotional mindset.
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