Many analysts agree that this is the right time to buy a house as property prices have fallen significantly and interest rates are close to their all time lows. The enormous ups and downs of the last few years in the real estate sector have now given way to a quieter market, which means you can take your time to assess a deal and have greater control over your choice. This benefit was almost completely absent a while ago as you had to move fast to close a good deal.
While the current market situation offers great opportunities to people buying a house, it also poses some challenges. To make the most of the present market conditions, you need to be aware of a few key aspects.
If you are looking to buy a property through a foreclosure process, you should know that while bank-owned properties are priced nearly 30 per cent less than seller-owned homes, these often require a large sum as down payment. So go for that option only if your cash position is strong.
Do not be in a hurry and agree to a so called “speedy deal”, because even these transactions can take as long as six months. Although some banks claim to have made the process simpler, it can still take a lot of time before you move into your new apartment. Before executing the deal, you should also carefully check the condition of the house. Do not fall for bidding traps of brokers if you haven’t seen the house yourself, as it may need heavy repairs.
If you are making a purchase in an area that has seen a large number of foreclosures in the recent past, it will be a good idea to ask the anxious seller for a discount. Get the house inspected and ask the owner to have the necessary repairs done, or ask for a concession in lieu of the same.
It is a difficult market if you’re selling your house, but you can take some steps to get a good deal. While competing with prices of repossessed properties would not help you at all, you can have repairs done and tell prospective buyers that the property is in a move-in condition. Most buyers would want to close the deal fast as they would want to take advantage of low prices. So offering buyers a quick deal could also work to your benefit.