There are many schools of thought when it comes to buying a home. Do I buy when the market is up or down? Is there a season that is best? Here we will discuss a few tips to consider when buying a house in a down market:
- Do Your Homework.
Buying a house is a commitment that you have to be willing to accept. You wouldn’t walk into an MCAT exam without first studying the material, would you? So do your homework! - Get Pre-approved.
Ensure you get pre-approved for a mortgage. The last thing you want to do is find your perfect house, put in an offer, and then realize you have not been approved for a mortgage, so the house goes to another person. Be proactive and get pre-approved for a mortgage before you head down the path towards actually bidding on a house. - Negotiate.
Most home sellers set a price in mind for their house, but the asking price is more than this figure. The reason is that they expect people to negotiate the price. Don’t be shy, ask for a bit of a deal. Even if the house has undergone price reductions, sometimes the seller will be open to negotiate in order to just sell the house and get it off their back. Don’t be afraid to negotiate, just ask! - Determine a set price.
Be firm about your price range. Especially during tough economic times, some people will try and increase the price of the house at the last minute to squeeze a bit of extra money out of you once you have become emotionally attached to the house. Don’t let this happen. Choose a price range ahead of time and stick to it.
