Guest Post by Suzie Wilson
I decided to take a break from ranting about the destruction of Confederate monuments and heritage for the time being. It upsets me so much that I seriously need re-focus on something else for the moment. Instead, I’d like to share with you a guest post I received that might spark your interest. My husband is in real estate, so I find it fascinating and can’t get enough of HGTV! I hope you enjoy this guest post. Thank you, Suzie Wilson, for providing it.
5 Tips for Buying a House During a Recession
The idea of making a large purchase during a recession can seem risky, but there are advantages to buying a home when the economy is weak, as prices are often lower and there’s less competition. That’s why first-time home buyers and investors alike should consider putting an offer on a home during a recession. However, there are a few things that buyers should keep in mind as they navigate this process. These tips will help first-time buyers and investors find ideal properties in the midst of an economic downturn.
Financial Guidelines
Before you begin looking at homes, you should take some time to brush up on the basic financial guidelines for purchasing property. The requirements will vary somewhat between first-time homebuyers and investors, but many of the basic principles are the same. You may be in a buyer’s market, but you don’t want to be tempted into spending beyond your budget! Spend some time studying up with this helpful first house guide so that you know exactly how to apply for a mortgage and how much you’ll need to have on hand for your down payment.
Market Research
Whether you’re buying your first home or purchasing a new investment property, you will need to conduct extensive market research before you begin looking at houses. Look up average home prices for properties that fit your requirements in neighborhoods that you like. You may find that listing prices are lower than usual, so keep an eye on areas where home values are predicted to appreciate in the coming years, especially if you want to rent out your property. And remember, if you plan to purchase a fixer-upper that will require deep cleaning and extensive renovations, you’ll have to consider those costs in addition to your initial down payment.
Work With a Real Estate Agent
If you want to ensure that you’re getting a great deal on your new home, you’ll want to connect with a reputable real estate agent, especially if this is your first time buying property! Policy Genius recommends asking potential agents how many transactions they conduct per year, which buyers they have represented in recent months, and which neighborhoods they would suggest that you consider. Investors should seek out agents who specifically help buyers find investment properties.
Find a Motivated Seller
The low asking prices that crop up in the middle of recession won’t last forever, so if you want to save big, you’ll need to act fast. Finding a “motivated seller” is the key to speeding up the process so that you can move in or start looking for tenants as soon as possible. According to WiseBread, you should try to connect with home sellers who are moving far away, relocating due to a major life change, or have had their home on the market for months on end. These types of sellers are generally looking to move as quickly as possible, so you’ll have better luck getting your initial offer accepted.
Negotiate Your Offer
First-time home buyers and investors shouldn’t hesitate to negotiate on the home’s listing price. When a seller is seeking buyers in the middle of a recession, they won’t have as many offers coming in, so you may be able to persuade them to agree to a lower price! It’s often a good idea to wait until after the inspection to negotiate. That way, you will be able to factor in necessary repairs when you calculate a fair offer. Furthermore, you’ll need to conduct a property title search to ensure the seller has paid their taxes and fulfilled other legal obligations before you buy.
Buying a home can be a long, complicated process, but if you have the ability to buy during a recession, you may have an easier time finding the house of your dreams. Whether you’re planning to settle down for decades to come or rent out a home that is likely to appreciate in value, you can benefit from the real estate opportunities that are available during a recession. A recession can bring challenges, but it can also present opportunities.
Photo via Unsplash
