BUYING A HOME DURING A RECESSION
Did you or someone you know plan on buying a home for the first time? Or maybe hoped to buy a home for investment purposes?
The Covid-19 pandemic and subsequent recession has most likely put you in a position to re-think some of your plans, however with a few adjustments to your criteria and agenda there are still ways to purchase a home successfully in the midst of this economic downfall.
Challenges and benefits
For some areas across the country there is a massive shortage of houses on the market, which we understand makes home buying difficult when looking for something in a specific area. However the upside to that is the fact that interest rates are at an all time low which is extremely helpful for the first-time home buyers out there facing some financial challenges.
While attempting to buy a home during a recession may feel like a daunting task there are still some things that may help you in your search.
One of the biggest successes in home buying is to look in an area you never thought you may like. Drive around a little, there are hidden neighborhoods everywhere and stumbling across an area that may be undiscovered by others could pay off financially. You’re also going to want to be flexible about closing details. Being flexible allows you to close more effectively and potentially in a short amount of time securing the home from other potential buyers. Another tip is to consider different mortgage options. We know there are a bunch of them out there, and some are better than others. So consult with a mortgage broker and really dive into what is going to work best for you. It may turn out to be something you would have never thought of otherwise.
When buying for an investment
A recession is probably one of the best times for an investment buyer to look into real-estate. Hardships during this time often force homeowners and businesses to look into the options of selling their property. You want to be careful however, jumping at the opportunity to invest in any kind of property just because the pricing is low could come back to hurt you later. Just be sure to take your time and consider all of your financials and what your goals are before making the new investment.
Looking for the right property
As we all know the pandemic has forced us to change our way of life and how we would normally do things. Businesses across the world have been forced to rethink how they are going to continue to provide their service while dealing with the crisis at hand. For real estate, 3D tours, virtual showings, and videos have all become part of the norm when it comes to home selling and buying. This most likely isn’t how you pictured buying your first home and we know that it still isn’t quite the same as walking through in person; so don’t be afraid to take advantage of the options listed above as many times as needed to narrow down your search in the buying process.
Keep in mind that there may still be an opportunity for you to do a walk-though, you may just have to schedule your showing further in advance than normal.
The Covid-19 pandemic has surely put the real estate business at its mercy, but with some states lifting some of their rigorous lockdowns there is a chance that some markets could be revived before construction stops and financials get harder.
Of course if you’re moving, there are other considerations you’ll want to account for as well, such as hiring professional movers during the pandemic.
If you’re moving during this uncertain time, it’s crucial that you use professionally trained movers not only for peace of mind but for your family’s safety as well.
Home Bound Moving Co. provides expert service and can ensure a smooth transition into your new home.
The pandemic and this current recession has most likely made you reconsider a lot of your plans, including home buying, but you can still achieve your goals with some patience.
Flexibility, knowledge, and seeking guidance is key when you're sifting your way through the housing market. Remember to consider your financial situations and look into all your options before you comitt, and most importantly be prepared for some uncertainty and changes to your initial plans.
Home Bound Moving Co
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