Making An Offer On Real Estate In A Recession

What should you look for when you are making an offer on a piece of real estate during a recession?  You naturally want to get the best deal possible, so you should be careful about doing your homework before you are ready to make an offer.  Here are some tips that can help you make a good offer during a real estate recession:

Discount anything the real estate agent tells you about the price.

Real estate agents are paid on commission.  It is not in their best interest to see you “get a deal” on a piece of property.  It is in your best interest, though.  Do your homework and take a look at the amount that other homes in the area have sold for, not for the amount that they are listed, but for how much they sold.  This is all public record.  Take a trip down to the county recorders office and you will find the information on any homes that have been sold in your area. 

Offer At Least 20 Percent Less Than The Listed Price

The rule of thumb used to be to offer 10 percent less than the listed price.  This was considered a low offer.  With the economy today, the rule of thumb is 20 percent less.  There are so many homes on the market today that you really have quite a choice when it comes to where you want to buy and how much you want to spend. 

Take A Look At How Long The Home Has Been On The Market

Be sure to look at how long the home has been listed.  Homes that are fresh on the market should be looked at as they are sometimes listed a lot lower than they should be by either an inexperienced or greedy real estate agent.  If the home has been on the market for less than a month, chances are that the owner has delusions of grandeur and refuses to believe that there is a recession.  You can offer less, but chances are that they are going to want to get other offers.

If the home has been on the market for a year or more, there is either something really wrong with the house or they are not budging on their price.  This is a good one to skip.  There have been houses that have remained on the market for several years, vacant. 

Be Pre Approved And Have Nothing To Sell

Although a seller will probably take any type of contract in this market, you are a lot more attractive as a buyer if you have nothing to sell and have been pre approved for the mortgage.  A pre approval letter is different than being pre qualified.  Someone who has been pre qualified has not gone through the gamut of giving in all the paperwork needed for the loan.  A pre approval letter means that you have gone through the entire mortgage approval process and are ready to close.

Follow these tips before you make any offer on real estate in the market today.  You can invest in real estate during a recession - you just have to understand how to go about making the right offer. 

·         Sarah Miller offers real estate services in Bryan-College Station Real Estate. She is one of the RE/MAX Bryan-College Station realtors that has a long list of the finest real properties bryan tx, that any intending settler or buyer can choose from.