Why Real Estate Investors Can Win | Buying or Selling
August sits at a useful intersection of seasonality, motivation, and money. Families who needed to be in new homes before school have largely finished bidding wars, inventory is still relatively abundant, and builders and sellers alike are more willing to deal before the market cools into fall. Add in a recent dip in mortgage rates and near-record concessions, and you have a month with real, tactical advantages for investors on both sides of the table.
A quick market snapshot | As of early August 2025
Mortgage rates eased: Daily average 30-yr fixed hovered around the mid-6.5% range in early August, improving buyer affordability at the margin.
More selection than last year: June’s total housing inventory was up ~16% year over year (4.7 months’ supply), giving buyers more options and reducing pressure on pricing.
Negotiation is back: Roughly 44% of Q1 home sales included a seller concession—near a record high—while a majority of builders are deploying incentives like mortgage-rate buydowns.
Late-summer dynamics: Realtor.com’s late-July/early-August reads show rates slipping and shoppers re-engaging late in the season, even as many sellers remain cautious.
Leasing season context: August is peak moving season, yet national rents were flat in July—handy for underwriting and lease-up planning.
Why August favors buyers
More choices, slightly less competition.
Inventory stands materially higher than last summer, but many “school-timed” buyers are already out of the market. That combination creates more selection and softer bidding dynamics. Redfin’s 2025 work also shows sellers outnumbering buyers nationally, which tends to shift leverage toward those still shopping.
Price cuts and concessions are in play.
Historically, the share of listings with price reductions rises into late summer/early fall. Last August saw the highest August rate of price cuts since 2018—an investor’s cue that negotiability often improves this time of year. Pair that with 2025’s near-record concessions (closing-cost help, repair credits, rate buydowns) and the math on value-add deals gets better.
Builders want to move standing inventory.
NAHB data show a majority of builders offering incentives; rate buydowns are common and can be stacked with closing credits or design allowances. Late-summer “close-out” pushes on completed specs can pencil especially well for investors who can move quickly.
Financing windows open.
With rates dipping in early August, buy-side investors can lock opportunistically, structure 2-1 or 3-2-1 buydowns, or negotiate permanent buydowns funded by sellers/builders. Catching a friendly rate print—even temporarily—can meaningfully boost DSCR.
Lease-up alignment.
August is peak moving month, which helps fill vacancies faster. At the same time, national rents just printed flat month-over-month, which keeps pro formas grounded and reduces the risk of over-optimistic rent growth assumptions.
Due-diligence is clearer.
Summer heat tests HVAC, irrigation, and building envelopes; roof and exterior issues are easier to see and estimate in dry weather—cutting “unknowns” and change orders post-close. (General advantage; aligns with standard inspection practice.)
Why August can be great for sellers
Motivated, qualified buyers are still active.
Lower mortgage rates can pull fence-sitters back into the market late in the season. Investors, 1031 exchange buyers, and relocators are disproportionately active now and value quick closes, rent-backs, or concession-for-speed trades.
Less “new-listing” competition.
Heading into August, weekly data showed new listings up only modestly year over year; many would-be sellers are staying on the sidelines. Well-priced, turnkey investment property can stand out—and sell—without getting lost in a crowded spring feed.
Price strategically—before the heavier fall markdowns.
Because price reductions tend to accelerate into late summer and fall, sellers who list and price correctly in August can capture demand before buyers expect steeper cuts. It’s a “beat the curve” strategy that trades a small initial concession for faster, higher-certainty execution.
Comps still support premium features.
Spring/early-summer comps are recent enough to back renovated finishes, ADUs, or strong rent rolls. In many metros, days on market have lengthened compared with the frenzy years, but well-packaged assets still clear—especially if you pair pricing discipline with thoughtful incentives (e.g., a targeted rate buydown instead of across-the-board price slashing).
Investor playbook for August
If you’re buying:
Target price-cut cohorts (14–30 days on market, 1+ reductions) and spec homes nearing builder deadlines; lead with inspection-backed credits and rate buy-downs rather than list-price demands.
Leverage the concession regime: Ask for closing-cost credits, prepaid HOA/insurance escrows, or cap-ex escrows on items found in diligence. Nearly half of sellers are saying yes somewhere.
Model conservative rents (given flat recent prints) but plan on faster lease-up given August move activity; be ready with pre-marketing the minute you go under contract.
Finance creatively: Stack temporary buydowns with seller credits; lock quickly when rate dips appear.
If you’re selling:
Price to the market you have, not the one from spring. Use the first two weeks for maximum exposure; if traffic is soft, pivot fast with a targeted incentive (e.g., offer a permanent rate buy-down) before cutting price. Buyers value payment more than list optics.
Market the income story: Provide full rent rolls, T-12s, utility bills, and a clean inspection summary. Investors will pay up for certainty and well-documented OPEX.
Time your launch: Early-to-mid August can catch the last wave of summer movers before the broader fall markdown expectations set in.
Stay flexible on terms: Short rent-backs, inclusion of appliances, or covering minor repairs can preserve top-line price while opening the buyer pool to more financed offers.
August rewards prepared investors. Buyers benefit from more inventory, lower rates than just weeks ago, and a market that’s normalized around concessions and builder incentives. Sellers can still capture serious, late-season demand with strategic pricing and payment-focused incentives—before fall expectations turn more aggressively to price cuts. Used thoughtfully, August’s seasonality can compress timelines, improve terms, and create cleaner exits or entries for your portfolio
