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Fall for leaves or for home sales?

In pumpkin season it gets chilly in New England and so does the local real estate market of Home Sales

A beautiful September in Massachusetts this year, 2019, doesn’t mean that the Fall isn’t around the corner. We’ve already had a little taste of chilly temperatures in the morning and at night, but for now it has work great at gifting us a very pleasurable balance of temperatures throughout the days, at least for many of us.
However, the Fall is indeed coming, and that’s not a bad thing, as it’s possibly the best season in New England, between the Foliage which attracts people travel from all over, including from abroad, Halloween which is one of the kids’ favorite times of the year (and some adults’ too!), apple picking and all that revolves around it and much more.
There is no doubt that after Labor Day the real estate market changes, and it’s not always as pretty as the colors of the season. While it definitely makes many homes look so pretty by painting them with the colors of the New England Fall, it’s also the last chance for sellers and buyers to make a deal and swap places in homes.
Both home Sellers and home Buyers may have closed deals and moved during the more favorable Spring season, usually in the last part of it as it tends to start a little late up here, in the North-East of the country. Many others may have closed during the second part of the year favorable for residential sales and purchases, the Summer. All others either drop out of the market, waiting to rinse & repeat in the Spring, if they can afford to without having to re-plan their near future, or become very motivated and take make or break decisions.
It’s the time that Home Buyers increase their efforts and start lowering their expectations, like the areas that they would like to buy in, conditions, type of home, features and amenities.
It’s also the time that Sellers really use the only effective option they may have to finally sell, especially if they went through the whole Spring and Summer without success, a price cut.
We could think that the Sellers’ and Buyers’ actions should finally meet on common ground a real estate sales pick up, but that doesn’t always happen, not to the degree that we could expect and certainly not in all real estate markets.
The reality is that there are some factors which don’t allow a significant market pickup.
Schools start mostly at the end of August, so families with school-age children (approx 1/3 of potential buyers) tend to postpone a move, letting mostly Millennials and Empty-Nesters take control of the market.
Millennials typically struggle to qualify for finance thanks to the heavy burden of student loans that haven’t lead to very high salaries to start out at. They also tend to overlook homes which require any amount of work, even minor. Amenities nearby are considered indispensable, not to mention that they accept the idea of being renters more than other generations, so they don’t pressure themselves into purchasing. There certainly are many other reasons, they just don’t rush into buying as much as other generations.
Empty-Nesters tend to be savvy and have probably been the the process of acquiring a home, possibly more than once, and therefore emotions don’t push them into buying so easily. Their experience also allows them to go through all the steps to buying and selling very cautiously. So they often prefer to wait the market out to sell, in the end, they know that property values tend to rise over time which is great if you’re downsizing as they usually do. Many are also financially more stable and can make thought through decisions, which doesn’t help the number of sales.
Of course there are many other reasons why the real estate market usually slows down during the Fall, especially towards the end, with weather related issues and more, but that’s what often happens in the conventional real estate market of homes sold traditionally, whether through a real estate agent or directly by the owner in a FSBO.
Despite factors influencing both Buyers and Sellers, markets often tip into a temperature which has remarkable parallelism with the weather, so it chills into a “cold market” and is generally perceived as the best time to snap up deals from extremely motivated Home Sellers who don’t want to go through another Winter in the home they are selling. A cut in price may be the last hurdle before being able to move to a warmer climate down South and may possibly be worthwhile. Psychologically Sellers have at least tried during the favorable months, but if a 5% cut is what it takes. Buyers know this, especially in this age of information that is only one-click away. The problem is that all unsuccessful Sellers who don’t want to lower their expectations enough, a price cut of less than 5% is not very effective, will continue being unsuccessful and the house unsold.
Other markets are very different and may even accelerate in the Fall, as they are much less sensitive to the classic real estate cycles, like the market we, Proxima Investors specialize in, which is the market of Sales on Terms.
Our busiest months are the cold ones here in New England, because Sellers run out of options and start looking around for alternatives and that’s how many of our Sellers find us: looking for a Home Selling solution that works for them. And that’s what we’re about.
At Proxima Investors we sell most of our properties through our program of Lease-Purchase or Lease-Option, in all variants, as we have designed it specifically for our model and unlike any other investor. On the other side of the deals, we purchase the properties we sell in any of the many ways to acquire real estate ranging from Wholesaling to Delayed Purchase, from Straight Options to Lease-Purchase, from Seller Finance or simply CASH depending on the goals of the Sellers and the best method of achieving them. A conventional sale is only cash minus all the closing costs that occur, often as a surprise, in an ordinary Purchase & Sale transaction and the Seller has to take care of everything with that set amount of money and make the most of what’s left after all the costs of a pricey conventional sale.
Almost all homes and many Sellers qualify for at least one of our programs and they all provide a fast selling option for the most financial return. If you’re a Seller or a Buyer, ask to see if you’re a fit for success through our programs, test us and you will probably be blown away by finding out how many options you have outside the box of a conventional sale.
More info for Home Sellers and Buyers is available on our websites or just a quick email (proximainvestors@gmail.com) or short phone call or text (857-540-5640) away.
We look forward to answering your questions, but don’t forget to embrace and enjoy the Fall, so beautiful in New England, it’s really worth it!

Halloween soon! Kids love pumpkins and scary costumes! Does that mean little time to sell and buy homes?
 

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