To the average American, it might seem ludicrous to suggest that the United States is not in a recession right now. But economists’ fuzzy definition of the term makes it hard to say when a recession actually starts until we’re well into one.
The behavior of the housing sector over this recession is unlike anything in recent history. A recent Standard and Poor survey revealed that housing prices nationwide have fallen to their lowest levels since the beginning of the great recession.
If you’re a homeowner, this probably doesn’t come as a surprise to you. if you don’t own a home, now might be a great time to buy real estate. This article in sundaybell.com gives buyers valuable advice to buy a home on the post-recession market
Recession is definitely bad news. But you can take this chance to purchase a property at a much lower price than normal. However, just because the odds are in your favor as a buyer does not mean you are not at risk as well.
As always, you have to be particularly mindful about your decisions, especially because this heavily involves your finances. So, you may want to take note of the following things first.
- Make sure you have a secured income source: The worst that can happen is close a deal, only to end up losing your source of income eventually. It can put you in a heavy burden that will give you worse than headaches to deal with.
- Make sure the purchase is within your limits: You have to be conservative in drawing the figures.
- Consider the purchase not as an additional investment but more of a home you can live in and keep until the economy is much better for reselling.
All these and more considerations have to be duly kept in mind and seriously addressed. You will find more tips on finding good deals on real estate in the middle of recession below.
Give time for research
Go through the listings carefully. If you are careful in a real estate transaction under normal circumstances, you should be more cautious when an economic downturn is involved. Aside from internet listings, you may also want to look through the local newspaper for more information on specific areas you are targeting. In addition, hiring the assistance of a real estate agent can also prove to be advantageous.
This is not only important in finding good estates but ones that are offered in excellent price ranges. This research is supposed to give you an idea of what needs to be expected as far as cost is concerned. And it is a knowledge which you can use during the negotiation process or as early as the bid. When you set your bid, make sure that you have plenty of room for making a bargain.
Prepare for a better edge
You have to be ready to close a possibly great deal the moment you get the chance. This is to avoid other prospective buyers snapping the deal from you. Make sure you are well prepared by moving a step ahead on your mortgage. Have it pre-approved and hire a real estate lawyer who can prepare the paperwork the soonest time possible or when the situation calls for it.
Think of all the things you need and make sure they are well taken care of. Look up your insurance options and hook up with a reputable home inspector. This will also let the seller know that you are serious about closing a deal.
Look especially for eager sellers
Eager sellers who want to close a deal in a hurry can give you a better advantage during the negotiations. So, make sure you ask for a lower price. In some cases, you may also make a few requests such as pieces of furniture and fixtures. The seller may be more than willing to give in to your requests. You can also negotiate so he can cover the closing cost whether a certain portion or in full.
But how do you exactly know that the seller you are dealing with is in a hurry to make the sale? Take note of these clues.
- One, the house has been put on sale for several months and its price has been in a continuous landslide.
- Two, if the house is ready for occupancy. This may mean the seller has a bigger reason to be in haste since he may already have two mortgages under his name.
Look out for foreclosures
One man’s loss is another’s gain. This is true in the real estate business and it is not far from happening during the recession. So, include this in your checklist. That is to check the inventory of foreclosed properties.
What you need to remember though is that this particular type of properties may present a few challenges, especially the legal kind. In which case, it pays to employ the assistance of a professional when dealing with foreclosed properties.
Author: Ted Bridges
Timothy Real Estate Group has professional designers and stagers that can help you prepare your home for the war. Gorilla tactics that work because it is a Price War and a Beauty Contest that can mean making and saving more with your property investment. Stay informed about Puerto Vallarta Real Estate and sign up for our newsletter… click here
Timothy Real Estate Group – An innovative company setting new standards in Real Estate sales and services has the most professional and experienced Realtors in the Puerto Vallarta area who understand the intricacies of Mexican Real Estate ownership, the local market, Puerto Vallarta property codes and regulations and financing. The Timothy Group uses that knowledge to provide a sound analysis on every aspect of property ownership. Timothy Real Estate Group is known for professionalism and experience and they bring this to every transaction they work on for the benefit of Real Estate investors and developers alike. Ask about our Real Estate Listings