Buying Real Estate in a Slow Market
Published on Friday, 01 June 2012
The market of real estate fluctuates a lot - there are periods when it favors sellers and periods when it favors buyers. The real estate market determines its own prices, based on the current economy and the demand and supply. While some markets experience a downfall, others are more stable than ever and even growing steadily. In many countries the situation of the real estate market varies between areas. If you happen to live in an area where the real estate market is having a slowdown, but you want to buy property, there are a few things to consider which could help you. The first strategy to use is clarifying exactly what you want. Determine the kind and size of home you are looking for and its must haves - number of bedrooms, location, yard, etc. Then concentrate on finding that exact property and focus your search on properties which meet your criteria. The next thing to do is consult a real estate expert. Find a good local real estate and follow his guide into finding your desired home. Real estate agents have a network of connections and can even show you a home which hasn't yet been listed. An important skill for buying a home in a slow market is to understand the market data. You can ask your real estate agent to provide you with statistics for certain communities which properties you are considering.
A good real estate agent should be able to give you statistics on the following aspects: a summary of the available properties in your desirable area, how long the properties stay on the market before they sell, how many have been sold in the last month/ year, how the average prices have varied in the past few months, the ratio between the sales price and the initial listed price, or how much the seller has lowered the price in order to sell the property, any comparable properties to the one you desire. If you want to stand a better chance at finding the right property, look in communities which are particularly slow. They will offer a wider variety of available properties and therefore better deals. Even though a seller's reason for selling is in most cases confidential, sometimes a real estate agent is allowed to disclose certain information. This will give you an idea of how much to offer as a price and whether to make an offer at all. Obtaining a loan pre-approval from the bank, considering the future mortgage will make a good impression on sellers and show that you are a serious and reliable buyer. Before you view the house yourself, have it inspected by an expert. This will provide you with all the necessary information on the property's condition and any needed repairs. If the home needs a number of repairs or replacements you can either require these from the owner or negotiate a lower price, in order to cover the expenses yourself, once you move in. If you don't find your desired property fast, don't despair. You have to be patient and flexible - expand your search scope and compare different options. Even if you fall in love with a certain house, try to remain objective and fit it in your budget. All of these guidelines are a good starting point for purchasing a property in slow economy. For any additional strategies, trust your real estate agent's expertise. Always remember your main objective - an affordable house, an ordinary family home or a great estate to be proud of.