The modern real estate market, that is, the market in the second half of 2009, has shown sporadic signs of recovery. Still, most experts are not saying that this is an end to the fall in property prices that started with the sub-prime crisis and culminated during the global economic recession. However, if you are looking to purchase a house, it may not be a good idea to wait for the prices to fall further.
Everybody wants to buy when property prices are at their rock bottom. However, no one can truly predict how the modern real estate market will behave. Property prices are linked with the complex web of banking finance, insurance, availability of credit, and global economic trends. A layperson may not be able to comprehend all these factors. The following tips would guide one to select a cost-effective and convenient house.
Buy In Off-season
It has been observed that more number of people enter property market during summer months. The competition would be high and the market, even at the time of a crisis, would become a seller’s market. If you have the time and resources, it is better to hunt for a house during the winter months. This is because during the winter, sellers would be open for negotiation because of scarcity of buyers in the market.
One has to be patient for exploiting the modern real estate market to its full potential. It is better to inspect as many houses as possible. Your heart may tell you to go for a certain house; but always use your head to evaluate its cost-effectiveness and convenience. There will be people who are desperate to sell their house because of job loss and financial meltdown. The success in buying lies in finding a desperate seller.
Opting For Condomoniums
Condomoniums, or condos, is an option for cost-effective living in the modern real estate scene. These are individually owned houses or apartments with common facilities. Lobbies, swimming pools, garden, water tank, and security features are some of the common facilities. The expenses for these facilities are shared by the individual owners of the condos. There is usually a committee to oversee the functioning of the common facilities. A well-managed condo in a good neighborhood is always a value-for-money option.
Opting For Co-Ops
Co-ops are similar to condos; but there are some striking differences as well. The first is that the co-ops function only in a handful of cities. In addition, one will not get ownership of the property in which one lives; instead, one gets a share in the co-operative society. The efficiency of the governing body of the society and the background of other members determine the quality of life in a co-op.
Buying Houses In Foreclosure
Banks sell houses that are pledged to them if the owners do not repay the loan amount. Banks generally do not worry about the profit margin as individual sellers do. In many such foreclosure sales, the buyers will be able to get properties at around 10% to 20% less than the market value in the modern real estate scene.