“Sell In Spring?...Not Necessarily!” Four Reasons to Consider Selling Now!
There is a general sentiment in Washington, especially Western Washington, that the best time to sell is spring. There’s some merit to this idea, especially if we’re talking about houses.
Here at Serviss Commercial, however, we’re not talking about houses…we’re talking about your investment real estate.
I get it: spring time is beautiful here. Flowers are blooming, trees are full, the grass is green. All true, and all things people consider when they’re determining where to live. That’s not the decision you’re trying to influence though.
Your tenants already live in your building. You’re trying to get the maximum price once you’ve decided to sell it, and your potential buyers think very differently than your tenants.
Here are 4 reasons you should consider listing this fall, if you’ve decided it’s time to move on from your building:
Reason 1: Motivated Buyers Are Out There!
As we all know, winter follows fall, often more quickly than we’d like. But it’s not the weather, or even the dread of driving in snow, that motivates investment buyers.
It’s the 1031 exchange timeline.
When an investor sells a property using a 1031 exchange, they have just 45 days to identify a replacement and 180 days to close. If that sale happens late in the year, the tax filing deadline (typically April 15) can actually shorten that 180-day window—unless they file for an extension.
That’s why many 1031 buyers are laser-focused in the fall. They’re on the clock, and missing the deadline could mean paying tens or hundreds of thousands in capital gains taxes. Closing in the same year also keeps their taxes cleaner. For these buyers, getting a deal closed,even if it means accepting some deferred maintenance, can be far better than writing a big check to the IRS.
Reason 2: You Likely Have Less Competition
Historically in WA state we see more closings in Q2 (April/May/June) and early Q3 than any other time of year. This would indicate that a lot of properties are being brought to market in the spring. However, according to recent quarterly data from the Commercial Brokers Association (CBA), more investment properties actually closed in December than in any other month in both 2023 and 2024.
Those 1031 buyers often need, or really want, to close by the end of the year. This means that if you are well positioned in the fall, you can close before year’s end. All while facing less active competition in the market place.
Reason 3: Your Building Likely Never Looks Better Than It Does In September
As an owner of a Multifamily asset you know your tenants are people, not businesses. People tend to move in alignment with big events in their lives and if they have children, that means school.
Families make every effort to be moved and stable prior to the start of the school year in September, meaning that your building is likely leased, stable, and financially clean in September.
Multifamily investors know they’re never getting 5 years leases like retail investors, that risk is accepted. Knowing they have nearly 12 months of stabilized rent in place is as good as it gets.
Reason 4: Lower Rates are Likely Coming Along with More Competition
As most of us know, the Fed recently cut the overnight borrowing rate by 0.25%. It is unlikely that this cut will do much to the market, despite all the media hype.
More importantly the Fed shared plans for two more rate cuts in the near future, and the cumulative effect of these cuts could absolutely impact the market.
“But wait”, you say, “doesn’t that mean I should wait to sell?”. The answer is, it depends. Lower rates will bring more buyers, that’s for sure. That influx of buyers MIGHT increase building values and deal prices, but here’s the thing…that same event also brings more sellers.
Deal price ultimately comes down to the balance of supply and demand and while rate cut momentum might bring more buyers, you as a seller only benefit if it brings MORE buyers than sellers.
If your building is positioned NOW you may be able to stand out more easily in the market place when there are less people trying to sell.
