Selling in winter can be the best strategy to buy well in spring

Selling property in winter may run counter to popular opinion but it can be the wisest time for anyone planning to buy in spring.

This is certainly the case for many changeover buyers who are either upgrading or downsizing. By selling their existing property on delayed settlement terms in winter, these buyers can put themselves in pole position to buy well when a large volume of stock comes onto the market in September and October.

Technically, winter runs from June 1 to August 31, and there may also be additional benefits for those who buy property just prior to the end of the financial year. This is especially so for property investors.

One year leases struck with tenants in the mid-year can work to an owner’s advantage. That’s because there are typically fewer properties available for rent in the middle of the year compared to the December/January period when tenant vacancy rates spike and rents can fall.

Melbourne is justly famous for its spring market, when properties and gardens look their best. However, since 2010 Nelson Alexander has seen significant growth in the number of properties transacted through winter.

“It is sometimes better for a vendor to sell in winter because there’s less competition with other properties,” says Nelson Alexander Sales Director Arch Staver.

“If you decide to sell over the winter period you’ll join a small number of people who are selling because most people either do it in autumn or spring. I think it’s a wise move to think about selling when there are fewer properties on the market.”

Because there is less stock around in the June-August market, buyers have less choice. The winter market tends to attract genuine buyers who may be more prepared to compromise in their choices as they want to purchase in certain areas.

Even though the winter property season is a more subdued time, the period can still generate some surprises and opportunities. People need to sell houses and apartments at all times of the year. And in winter plenty of people are still looking for property to invest or live in.

In fact, with good quality homes buyer interest can actually intensify due to lack of supply, and prices can go up on certain offerings.

Because the footy is on and it’s cold, winter-time vendors won’t see as many half-hearted prospective buyers who are “just looking around.” The buyers at this time of the year are far more likely to have their finance approved and be ready to bid. Vendors are likely to see a different and more committed crowd to the auction attendees who turn out during the spring and autumn property seasons.

If you’re selling in the winter, it’s critical to make the property as welcoming as possible. If it’s cold in the home, light a fire, cheer it up, turn the lights on, to make people want to walk inside.