Conventional wisdom says that listing a property in the spring or summer (when demand is typically highest) will bring the highest return on investment (“ROI”). Real estate investors rely on market data to ensure they strike while the iron is hottest. New data points to May as the best month to sell if you want to earn the biggest ROI bang for your buck.
Renovo’s data analytics team reports that investors who have sold rehabbed properties in the second quarter (between the months of April and June) achieved a sales price that was 5.8% higher than the initial appraised after-repaired value, higher than in any other time of year. This is corroborated by broader market data as well. According to the Wall Street Journal “a May boost [in home prices] was most notable in Chicago and Baltimore, where sellers who listed in the first half of the month could expect to close the sale 22 ½ days faster than the national average (with sales prices 1.2% and 1.1% higher respectively).”
Real estate investors looking to maximize their profits would do well to list their projects in the next few weeks and take advantage of the spike in May sales prices.
How can Renovo Financial help you reach your goals? Give us a call today at 312-279-7305 or fill out our online form to get started.
The 1003 Application (Uniform Residential Loan Application) is a form that was standardized by the GSEs, Freddie Mac and Fannie Mae, and is the required format for obtaining necessary information from mortgage loan applicant(s).