OzFree Online Real Estate

Recession is the buyer’s market. Most home buyers looking for a great deal are in luck. During the 1929 Great Depression, real estate prices dropped an astounding 24%. The same trend may be just around the corner.

The worsening economic situation makes it an ideal time to buy homes for sale. The prices will continue to drop. Mortgage lenders, although more wary about repayment capacity, will also most likely be charging lower interests.

Before you make start going through all those real estate listings, here are some questions you might want to answer:

1. Can you ride out the storm? The prices are low today, but there’s no telling just where they will go. The recession could last anywhere form six months to ten years. If you are looking at your property as an investment, do not expect the growth and subsequent returns to be immediate.

2. Can you afford to make the payments? Ask yourself if this is the right time for you to buy a house. Your financial stability should be your number one concern before anything else. Getting your dream home at a lower cost is ideal, but keeping it at the current amortization rate should also be well-considered.

3. Have you looked at all the options? Since this is a buyers market, feel free to take your time to choose the right property for you. Check out brand new homes vs older ones. You might also want to consider homes that are nearing foreclosure.

4.  Do you understand all your rights? If you go with a short sale, you need to understand all the terms and conditions that come with the sale. There are also some terms that you need to clarify. For instance, how is a Real Estate Owned (REO) property different from a foreclosure?

5. Are you sure this is the one? A home purchase is a big decision. You need to deal with repairs, monthly payments, insurance and all the other wonderful things that come with homeownership. Don’t let the current economic situation sway your decision. You don’t want to end up buying a cheap property that you simply can’t live in.