Posted on: 19 May 2017
Buying a home when the real estate market is uncertain is a real anxiety trigger. However, it can almost be like buying a property during any other period if you know how to go about it. The following four pieces of advice will point you in the right direction:
Buy for the Long Term
This is a fundamental advice that everybody should heed while buying a house in an uncertain market. Market fluctuations tend to be temporary (short-term or medium-term), which means things usually get back to normal in the long run. Therefore, someone buying a family home (where they intend to live for the rest of their lives) isn't risking their lives as much as someone buying a home with the home of flipping it for profit.
Don't Spend Too Much
Another useful tip is not to splash too much on your property if you aren't sure the market is stable. Minimal spending will lead to minimal losses in case the market takes a downturn after your purchase. For example, if property prices plummet by 10%, the guy who bought a property for $500,000 would lose $50,000 while another guy who bought a home for $250,000 would only lose $25,000.
Be Wary of Too Much Advice
It's also a good idea to be wary of "expert" advice from unqualified sources. News reports, inputs from colleagues or advertisements from real estate companies may not be the best source of advice during this period. Taking an advice to "buy now" or "hold on for some time" may lose you money if you aren't careful. If you have made up your mind to buy a house, go ahead and do it. If you need advice, consult a qualified real estate agent.
Use an Experienced Agent
The final advice is to use an experienced agent. You don't have to use an agent while buying a property, but it is always a good idea to use one at any time. It's even more important, however, if you are operating in an uncertain market. An experienced agent has probably seen comparable market conditions; you can tap into their experience and skills to minimize your potential losses.
Note that there is no universal right time for buying a property; what is right for your best friend may not be right for you. You just need to confirm to yourself that you really need to buy a house and you are ready for it; after that, a real estate agent can help you do the rest.Share