Why Buy during a Recession?

There are many reasons that you may want to consider buying your home during a recession. Of course, this is not something that you want to wait around for. If you are lucky enough to be purchasing during a recession then you are going to be able to get a good deal. But since there is no way of knowing when this will happen, you should simply go about your business. If you wait around because you think a recession is on the way you may never buy a new home. You would be much better off taking this into consideration, but not hinging your decision on what the market is offering.

The number one reason to buy a home during a recession is that you can save money. In many cases a situation like this will drive down home prices five percent or so. This is not to say that you will see this decrease across the board, but it is surely something to keep in mind. After all, five percent is $5,000 on every $100k worth of asking price. This can really add up; especially if you are spending several hundred thousand dollars on your new home.

Another good reason to sell during a recession is that sellers may begin to get anxious. They know that they are not going to get a great deal, but at the same time they are afraid that things could get worse in the near future. For this reason, they may be more so inclined to work with you on finding a mutually agreed upon price.

Keep in mind that a recession works in your favor as a buyer. You should know this when searching for a home so that you get the best of the deal, not the seller. This does not mean that you should be insistent on an absurdly low price, but you should know that a recession works in your favor.

It can be nice to buy a home when the real estate market is in a recession. This will allow you to save money, and hopefully get into a nice home. But remember, you should buy when you are ready to do so. If you put the time into finding a nice home, you will be happy with the end result no matter the market standing.

© Allison Van Wig