by Suzanne on January 3, 2009
The impulse is to say yes, buying a house during a recession is a great idea because a recession creates a buyer’s market where prices are very low. Add to that the possibility that the Fed is going to lower the interest rate for new mortgages to 4.5 and it seems like the smartest thing to do.
There are some things to consider:
- Do you have something to sell before you can buy a new house? As just mentioned, it’s a buyer’s market, so it’s very challenging to sell real estate right now - though it can be done (and it is being done!)
- Don’t be swayed by the low, low prices. Make sure that the house is really what you want and that you aren’t just hypnotized by the price tag.
- Similarly, make sure the house is in the neighborhood of choice. A great house is really only as great as its surrounding community.
- Always get a new property thoroughly checked by an inspector and make sure your realtor is well versed in the legalize surrounding your property. In other words, make sure the low price reflects the economy, not the property and its issues.
by Suzanne on December 23, 2008
I’ve talked to a lot of sellers recently who are worried about selling their home during this economic turndown (cough, cough), recession or whatever the news media is calling it today. Here are some tips to make sure your house sells:
- With nerves playing a big part on both sides, I recommend bringing in a tough house inspector before you put the house on the market as well. This way there will be no surprises that could send a promising buyer running.
- Then, take care of any repairs and maintenance before you put the house on the market. Buyers are likely able to handle the mortgage payment, but not interested in fixing anything up.
- Stay positive. Did you know that many businesses boom during recessions? Even during the Great Depression of the 1930’s, companies like Proctor & Gamble and Chevrolet saw increases in revenue because they maintained the attitude that nothing was wrong.
- Encourage your realtor to market and promote your property - insist on this even if s/he would like to keep costs down. The companies I mentioned above - P&G and Chevrolet had another major tactic in common - they both ramped up their marketing efforts despite the recession.
- Use a realtor with a solid reputation. Again, with instability in the market and for both the buyer and seller, find as much stability as possible. A real estate broker with a proven record and the esteem and respect of his/her community is the perfect steady hand.
