When the economy slows down, the prices of homes for sale drop. Markets burst… equity collapses… and suddenly, there is a growing number of listed properties selling for less than the market would have supported months earlier. For the savvy homebuyer, this means there are plenty of opportunities available. The challenge is sifting through the rubble and locating the gems.

Below, we’ll provide five tips to help you do exactly that. The following suggestions will help you uncover bargains, and clear away potential roadblocks that threaten to derail the deal.

1 – Research The Local Real Estate Market

In a recession, you’ll have the upper hand as a buyer. Sellers are motivated to unload their homes due to a number of reasons (e.g. lost job, declining equity, etc.). However, this doesn’t mean every home for sale is a bargain. You’ll need to research the local market.

Your goal should be to determine whether the prices you’re seeing are low or high compared to that particular market. You may be able to find this information on your own, but a realtor is usually a better solution. He or she will likely know the history of property prices in the neighborhood in which you’re looking.

2 – Identify The Desperate Sellers

A desperate seller is a motivated seller. This means the homeowner is usually more willing to negotiate a deal to your advantage. For example, he or she may be willing to pay for title searches, appraisal fees, and other closing costs. The homeowner may also be willing to lower the price of the property.

How can you tell whether a given seller is desperate? Ask your realtor to find out how long the property has been listed? Also, find out whether the price has dropped since it was first listed. These are clear indications the homeowner may be more motivated than ever.

3 – Stay On Top Of The Details

Buying a home entails much more than making a bid and negotiating with the seller. There are myriad details that must be addressed along the way. If you allow these details to fall through the cracks, you’ll risk losing the property to another, more organized, buyer (you’re not the only person trying to uncover bargains).

Once you select a home, line up an inspector who can examine the property. You’ll also want to be preapproved for a mortgage loan to prevent needless delays that can easily derail a deal. Your realtor will you help manage the filing of documents and any other paperwork by their associated deadlines.

4 – Make Your Realtor Work For Your Business

Keep in mind your realtor may be struggling for business during a recession. If so, he or she may be willing to work harder, and devise creative solutions for securing a lower price for you.

For example, many homeowners build the listing realtor’s commission into their property’s price. Ask your realtor to approach the listing real estate agent, and ask that person to shave a point off their commission. This allows the seller to lower their price by the same amount without losing money. While the listing realtor’s commission will be less than it would have been otherwise, he or she will still make a reasonable profit in a sluggish market.

5 – Take Extra Care Clearing The Title

During a recession, sellers are often motivated because they may be drowning in debt. For this reason, you’ll need to make sure the title is clear of liens. Hire a title company, and have an attorney conduct a title search. Be certain there are no other claims on the property from financial institutions or other creditors.

Note that the tips above are applicable even in a strong real estate market. But when you’re looking at homes for sale during a recession, they’re doubly important.

Author Bio: Great deals available for Harrisonburg homes for sale” and real estate offerings at http://www.ValleyFarmsandLand.com

Category: Real Estate
Keywords: real estate, buying a house during a recession, buying a home during the recession