The depression has hit America and the domino effect is being felt all over the world. While it may not be all that good for everyone, the real estate price corrections are really something to party about.
All of us, for whom, owning our own house were a distant dream; the falling property prices are a real blessing in disguise.
Here are few tips to guide you about buying a house during recession:
i) A buyer’s market
Previously, the demand for properties was pretty high and the builders started sprouting new constructions wherever they can. However, the recession and the excess supply, together, has put the sellers in a pretty tight situation. There are lots of houses out there but no takers. And, as any economics student would tell you, when supply goes up and demand comes down, prices fall and that is exactly what we are experiencing now. This is a buyer’s market and the best advantage of this is that you can negotiate (to put it bluntly- ‘bargain’) with your seller in this market.
ii) When will it hit the all – time low?
Prices are falling and it is the right time to buy a house. Talks are around that it is going to fall even more in a few months. So, isn’t it better to wait when it is the least?
That does sound sense but how are you ever going to know whether it has hit the rock bottom? If you are looking for a house to live and cherish over the years, then falling prices shouldn’t deter you. Even if the value of your house falls in the months after you purchase it, it is bound to appreciate after this economy mess has cleared up. So, if you are thinking of a long term asset, you can just go ahead with your plan.By clicking we get more information about the sell my house cash Austin.
However, if even after the fall, the house doesn’t fit into your budget, then you can go ahead and wait but you do run the risk of losing the place to another buyer.
iii) Don’t get clouded
Prices are falling and certain builders have been hit much more than the rest. So, the fall has not been uniform. Some of them have reduced the prices a lot while some have not. But, when you buy, think about your needs and requirements, not just the price. Think about whether you like it, is it functional for you and reflect whether you will be happy in it.
iv) Not all low prices are due to recession only
I recently came across a beautiful apartment at a good location at a throw-away price. I was elated but thankfully, before signing the dotted lines, I came to know the fall was not due to the recession but due to legal problems that the construction company was facing about the title to the land. Immediately, I got out of the deal. So, always investigate why the prices are low. Is it only due to recession? I repeat – Investigate!
After several months of studying the recent property markets, I have come to one conclusion. There is a maxim in Tamil that has always perplexed me, “Getting your own house and planning a wedding are the two toughest things you will do in your life.” Believe me – this person did know what he was talking about!