Yesterday’s Tenant is Today’s Buyer; Tips on Resort Buying and Selling
by: Jeff Quintin, on June 22, 2011 - Uncategorized
We can all use some good insight into the real estate market. What sets the Ocean City area apart from the rest of the nation’s real estate market is the resort nature and prime rental property opportunities that are unique to beachfront areas. Activity goes both ways, of course, and in this article we cover important factors on how to effectively sell and buy properties in this resort market.
SO YOUR THINKING OF SELLING?
For many sellers the waiting game that is happening these days is too much to take. And just as they approach the time that their property will likely sell, they consider pulling the listing off the market and “waiting the market out” for a while. Maybe they shouldn’t. This is not the best choice when it comes to selling your property in a resort environment. At a time when many buyers who may have been tenants in the same area for years are looking to buy their own property, exposing your home to the buyer audience is paramount.
The people that will be looking at your home are those who are used to spending thousands of dollars per week on rentals in the same area. They are eager to buy in time for the upcoming summer months. One of the major plus points they perceive of buying during this time of the year is the fast turnaround for income revenue, given that the peak season for rental incomes in a resort environment is June through August.
Homeowners in these markets have the misconception that putting their property up for sale in the fall is a better option. They could not be further from the truth. In the fall season, a lot of inventory pops up, buyers are typically the ones with the upper hand and it can become an intense scene of wheeling and dealing. Not to mention the very important fact that buyers in a resort property will not benefit much from having a property whose mortgage must be carried through until the following summer, in terms of rental revenue.
SEE SOMETHING YOU LIKE?
Who doesn’t like the idea of instant return on investment? When buyers seek out properties in a resort community, looking for revenue streams that will flow during the peak months June, July and August are the single best months. Far better than seeking out these properties in the fall, buyers can expect to almost instantaneously reel in the cash as soon as they put their new property up for rent. We’ve mentioned in previous blogs that the peak rental season is July and August and within that time, the peak peak time is the last week in July and the first week in August. This is when you can pull in enough rental income to carry through the mortgage payment nearly nine months! So if you are in the market to buy a property in a resort community this is the BEST time to do so. Sure, you can wait until the fall, but then carrying it through until the following summer can be a tedious undertaking.