2021 Holiday Season & The Real Estate Market

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The 2021 holiday season is upon us and one of the biggest impacts is going to have is in the real estate market. Most people don’t consider real estate when they think about holiday shopping trends, but it’s actually one of the most heavily impacted markets. Real estate finance leaders at IMC Money know the importance of staying on top of seasonal real estate trends.

Let’s take a look at a few of the major trends we’re going to see in this year’s holiday real estate business.

Holiday Market Trends

Here’s the general wisdom you need to know when it comes to the real estate market during the holidays. The real estate market starts to drop off around Thanksgiving as people focus on seeing their family, traveling, and getting ready for the holidays.

However, things start to pick up around December 24th. Potential homebuyers are off for the holidays and they’re using some of that free time to browse their local real estate markets looking for their dream home. You can take advantage of this sudden uptick in real estate interest by making sure your listings align with this new influx and potential buyers.

Serious Buyers Start Shopping During the Holidays

You’re also more likely to find serious buyers during this time of year.

This is a combination of harsh winter weather as well as how people spend their precious holiday vacation time. People who are out looking for houses and other real estate opportunities during the holiday season are going to be more serious about potential purchases than they would be during other times of the year.

Taking Advantage of Low Holiday Interest Rates

The market for real estate loans has its own fluctuations that don’t necessarily obey seasonal changes. However, one of the interesting trends that’s held true for the past few years is that interest rates tend to dip around the holidays.

This is another reason why potential buyers start flocking to homes this time of year.

Consider Your Timing

One thing that’s true no matter what sales industry or and is that buyers tend to prefer recently listed items rather than things that have been around for a long time. You can improve your timing by updating or listing properties at midnight on the 23rd or early morning on the 24th.

One Easy Tip For Holiday Real Estate Sales

Old real estate wisdom says that you should unlist your properties during the holidays, but this just isn’t true anymore. The holidays are a prime time to update and relist real estate listings.

Need more tips and tricks for real estate sales this holiday season? Property and finance experts at IMC Money can help you get your real estate moving!

 

Your Guide To Hard Money Construction Loans

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Hard money construction loans are one of the many types of people consider when they’re doing home renovations. However, there are some important considerations to make about this specific type of loan.

Let’s take a closer look at private loans for home construction projects.

What Are Private Construction Loans?

Private construction loans and hard money construction loans refer to the same type of loan. This is a type of cash loan that uses real-world assets to back up the loan. In the case of private construction projects, part of the property is often used as the collateral for the loan.

Who Can Get a Hard Money Construction Loan?

Hard money construction loans are designed to assist people who are building and designing a second home. These are not the ideal type of loan for a homeowner who is renovating the property that they currently live in. There are other types of loans that can assist individuals who are currently working on a building that they also occupy.

This means that hard money construction loans are more for people who are doing renovation projects, flipping houses, or doing construction.

Are Their Benefits to a Hard Money Loan?

There can be a few advantages to choosing a hard money loan for your project.

The first is that hard money loans are much faster to close. Traditional loans can take up to five months to close while hard money loans can take only a few weeks. These are also asset-based loans so they can be a good option for individuals who have assets they can put up for collateral.

How are Funds Paid Out?

During the underwriting process, the lender and the loan company will arrange the draw schedule for the payout of finances. This is the schedule that determines when and under what conditions the loan can be dispersed.

Here’s how it typically works.

Once a phase of the project is complete, the lender will send a third party to inspect the building. If they agree that that phase of the project has been completed according to the draw schedule, they will then order at the next round of funds to be dispersed. This process typically takes three to five days.

How Does Repayment Work?

The repayment for hard money loans is a little different than what you might expect. If you are used to typical loans, like a home mortgage, then things are going to be different this time around. Hard money loans have different payment schedules and plans that you can work out with the lender.

How to Find the Right Lender

You should look for a reputable company that has experience dealing with hard money loans. They should be able to walk you through the process and answer any questions you might have about this particular type of loan.