When property market is in the midst of a down term, it is smart to consider to buy a home. Every real estate investor wants to realize what the best time to purchase a property is. Specifically they are more considerate about buying in a down market when real estate prices are declining and sellers are more benevolent to negotiate.
Downsides of Buying
Many people say a Realtor says “Now is the best time to buy.” That’s right, and here is why you might not want to wait to purchase a piece of property in a down market.
- If you want to upgrade to a more luxury property in a down market, now could be the smart time. The longer you wait to sell your current property, the lower the price of your property could fall.
- If you have a cash or you have a good credit history with your bank, then buying new property in a down market is smartest decision. Why should you wait until prices start raising, if you can pay less now!
- If you sell and buy at the same time, you’ll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale.
Watch for Motivated Sellers
In any period of time there will be some homeowners who want or need to sell their properties in a hurry. This will give you additional bargaining power. Here are some examples when sellers are motivated:
- The property was listed for sale during a long time (several months) and price was reduced couple of times already.
- When at the showing, the home is empty, which means that the owner has moved out and might be holding two mortgages.
It is not always as easy to determine precisely how much leverage you have since a homeowner may have many different reasons for selling home. That is where your real estate agent can give you a great advice about the seller’s motivation, though. Professional property agents have access to the multiple listing services and can advice about the selling price for similar properties in the neighborhood. Usually realtors also know how long the property has been on the market and recommend specific price negotiation strategy for your target property.
Buying from developer or flip?
Thousands of new condos continue flooding on to the Bangkok market even when mortgages are very difficult to get. This put a pressure on developers to reduce prices and offer deals to buyers. But, don’t jump into this blindly. There is another excellent opportunity to get even better deal. There are plenty of people who pre-paid property two or three years ago, and now need to pay a balance that is usually a huge 70-80% of the price. Some of these people cannot afford such a payment now and are willing to flip their contract with the same price as it was 3 years ago, or even a little bit lower. You will never get such a deal from developer.
Ask your agent about these cases and, if you need a good and new condo now, and you have funds, you can get the deal of your life.
Now, when market is down, is the smart time to buy property in Bangkok.
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