Buying In A Recession

In the current economic downturn, home ownership has taken a back seat to the big business bailouts. With foreclosures at their highest rate in decades, this is a very trying and difficult time for homeowners, especially those looking to sell. For buyers, however, anyone with a real estate license will tell you there's no better time to look at moving on up.

Making the transition from a smaller property to a larger, more upscale one can be very cost effective right now, particularly if you're a perspective first time buyer without a property of your own to sell. If, for instance, you're a Canadian living in one of the many available Brampton condos looking to make the jump down to the Valley of the Sun, this is a great time to get more bang for your buck.

With a steady decline in property values and a sharp increase in foreclosures and short sales, there are a variety of wonderful old, new, and luxury homes available for up to half the price one would have paid five years ago. In Glendale, finding a great, affordable house today can be like shooting fish in a barrel, provided you know where to look and how to score a great deal.

Foreclosures are where some of the best deals lie. From Orlando FL to Arlington TX, houses are popping up all over the market because their owners are unemployed and forced to move their properties, leaving a wide variety of choices out there for potential buyers. For buyers, going after a foreclosed property can be beneficial in that there is only one owner to deal with, and they can accept or reject offers much quicker than short sale or well positioned sellers. On the downside, a foreclosure seller will stand firm on the selling price, so the ability to haggle is eliminated. Foreclosures do represent some of the best deals on the market, however, so it's a good idea to contact a real estate agent to help you sift through the listings to find the best fit and the strongest deals.

Short sale houses, which are properties that the seller has bought into not long ago but wishes to get out of, can be good deals as well but are far more stressful transactions because they involve the lenders interests as well, and could take months to finalize. Real estate agents in Kitsilano or Phoenix will tell you that traditional, well positioned sellers are better to deal with than short sellers, mainly because there is room to negotiate on price, and they are more willing to assist with the inspection process.

Think of this investment as short term cost, long term gain. When the economy recovers, and property values begin to increase, the property value of your home will begin to increase and could someday be worth nearly twice what you paid. So get out of those Liberty Village townhouses, find a professional Glendale real estate agent, and find that retirement home you've always dreamed of!