Homebuyers have an opportunity to pick up a home on the cheap when real estate sales are slow and there are excessive homes for sale. However, there are times when you should dive and time you should avoid an urge to buy. Here are some tips to follow if you are going to benefit from house hunting during a recession.
Do some research – Though home buyers basically have the advantage in a market downturn, this does not mean you should go into transactions without knowledge. Potential homebuyers must do his research and check for listings or inquire with a real estate agent. The intent is to get to know the price range of the area. You must know what is considered low and what is excessive.
Be prepared and efficient – You must remember that you are not the only deal hunter out there. You may have an advantage over the home sellers, however, another potential buyer could grab your bargain if you delay the home buying process. You must be prepared and have the home inspector and insurance agent lined up. It also makes sense to get pre-approved for a mortgage and have a real estate agent to handle the closing paperwork.
Look for motivated home sellers – It may give you extra bargaining power if the seller wants to sell their house in a hurry. You can negotiate with the seller about the listing price and cover some if not all of the closing costs.