This is a strange time for the economy. We have just returned to everyday life after the pandemic, but war is happening worldwide, and economies face massive financial issues. The fear of a recession is looming upon us, but if you plan to invest in a property, there is no better time than now. Whenever the real estate sales are down, you have a chance to buy a property for cheap. If you have the funds, make the most of this opportunity. Here are a few House Buying tips you should follow if you are house hunting in a current market downturn.
Research the market
The first and critical step to buying a house is to do the homework. As a buyer, you have a strong advantage in the market but this does not mean you put in no effort. Searching for listings and getting in touch with an agent for properties is essential. This will give you an idea of the price range in a specific neighborhood. You will also get an insight into what is considered very low and very high. It will allow you to make the correct bid and have enough space for bargaining for a property you like.
Get pre-approved for a mortgage
It might seem like you are the only bargain hunter in the market & House Buying tips, but this is not the case. Many other buyers could get a great deal if you delay the process. Hence, ensure you get pre-approved for the mortgage and have someone who can handle the paperwork for you. You might also want to look for a home inspector who can assist you and help you make the right choice. They provide valuable insights into what the home looks like and what items will need repair once you make the purchase. You must also understand how all reverse mortgage programs work; if you are above 62, you can benefit significantly.
Look for determined sellers
You will come across several homeowners keen to sell their homes in a hurry, providing additional bargaining power. This is when you can ask the seller if they can cover some of the closing costs or negotiate your way to the best price available. Do not miss this opportunity to bag a great deal at the right price. Determined and motivated sellers are the ones whose home has been on the market for many months and has already gone through several price reductions. Another sign is an empty home; this means the seller has moved out and could be dealing with two mortgages. If you are working with a real estate agent, they can give you a clear idea about the property and help track down the original listing price compared to the selling price in the neighborhood.
With the market moving at a slow pace, houses will also sell at the same pace, and this is when real estate agents often struggle. The agents and sellers are keen to lock in a price to get the deal done at the earliest. When hiring an agent, try to negotiate the commission, and you could get a discount if the agent is keen on working with you. You can also ask the agent to ask the listing agent to reduce their commission to get the deal done, and this way, both the agent and seller are happy. If you do not negotiate, you could lose out on a good discount.
Walk away if you have to
Whenever the inventory increases, you will see a drop in real estate prices. And if the market is down, you have many options to consider. Do not fear walking away if you are not getting the deal you want. Continue to look for a home that fits your needs and is within your budget. Always keep in mind that a down market means a buyer’s market, and this is when you have negotiation power. Stick to the price you want to pay and if you cannot strike a deal, look for different properties.
Buyers do have an edge in the looming recession, but this does not mean you are guaranteed to get the right house at the right price. You must ask yourself why you want to house buying tips and what is the maximum amount you can spend on it. Be prepared to bargain, negotiate and look for real estate agents who can help you throughout the process. Many buyers have successfully managed to bag a great deal in the recession. But you need to do your homework and keep your eyes and ears open when looking at properties.