Quick Post: Recession and Real Estate

Much like everything else in your life right now, real estate is being effected by the pandemic and recession that the global economy is facing.

I’ve been keeping an ear to the ground to understand how that is effecting my local real estate market.

Here’s what I’ve seen:

  1. Some buyers have more bargaining power. A friend who has been shopping around for an investment property negotiated almost $90k off the asking price. The sellers are clearly super motivated and this will work out well for my friend.
  2. Some buyers have the same bargaining power as before.  On the other hand, I’m watching homes in my city sell for asking or above asking. Unlike my friend’s sweet deal, some sellers are ready to weather the financial storm and can sit on the listing for a bit without driving down their price.
  3. More listing are popping up. There’s no doubt this recession will change the market in my city. Homeowners in need of cash and landlords who can’t keep up are off-boarding properties where they can. Keep scanning your local listings to find a deal that’s within your budget.

Pro tip from watching my local real estate market: find a motivated seller. Some owners really need to sell their properties right now and are willing to negotiate on asking price, closing costs, and repairs in order to exit. Of course, be smart about what you’re purchasing, but a motivated seller in a down market could offer you a great deal in a neighborhood or property that otherwise could have been out of your budget.

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