Selling your Home by Owner

If you are hoping to sell your home you have two options available. You can either hire an agent who will work on your behalf, or you can sell your home by owner. Either way, you will notice soon enough that there are both pros and cons. The fact of the matter is that you can sell your home by owner if you are up to it. Thousands of people do this year in and year out and there is no reason that you cannot be the next one on the list. But before you get too excited about this, make sure that you know what goes into this process.

First and foremost, when you sell your home by owner you must know that you are going to be responsible for anything and everything that happens. You may think that you are ready to sell your home by owner, but until you know what goes into the process you cannot really make this decision. When you sell your home you should be sure to paint and decorate your home, then market it, show it, and even complete the negotiations on your own. And this is only the tip of the iceberg.

If you are thinking about selling your home by owner you should find as much information on this way of doing things that you can. Did you know that there are many books that are devoted to doing this? There are also plenty of websites that teach you how to sell your home by owner with success. You should consider reading as much about this opportunity as possible. This way you will know what you are doing, and in turn have a much better chance of coming out a winner.

Overall, when you sell your home by owner you will be able to keep all of the profits for yourself. There are quite a few people who think that selling homes by owner is the only way to go. But of course, there are many others who are against this. You need to look into everything that this has to offer, and then take things from there. This is the only way to ensure that selling by owner is the way to go. And this is a decision that you definitely want to get right the first time around.

Do you need a Property Manager?

Do you need a property manager? This is a question that a lot of new real estate investors struggle with. While there are some people who think that a property manager is a necessity, others will tell you that this is nothing more than an added expense. The fact of the matter is that you need to make this decision on your own. It is up to you to decide whether or not hiring a property manager would help your situation, or do nothing more than get in your way. Either way, you need to make your mind up on this as soon as possible.

In most cases, the investors who need a property manager are the ones who own more than one property. After all, trying to keep all of your investment homes organized can be difficult to do. But with the help of a property manager you will always have somebody on your side to lend some assistance.

Of course, even if you only have a couple of rentals you can still hire a property manager to work on your behalf. But remember, you will have to pay him or her to do the work for you. This means that your profits are going to be cut into before you know it. To some people this is well worth the money because it saves them from having to deal with the day to day grind of staying up to date with investment properties.

So what are some of the things that a property manager can do for you? All in all, their main goal is to manage your property on a daily basis. Managing real estate means doing everything from collecting rent to answering questions about repairs and maintenance. Are these things that you would rather not handle on your own? If so, it is time for you to consider hiring a property manager. For the most part, you can tell them what you need done, and if you find the right person they can help you out with every last task that comes up.

A property manager can also be a major asset if you are thinking about expanding your portfolio of real estate properties. Remember, as you buy more and more homes your workload is going to increase. So even if you are handling one or two homes just fine, if this number increases to three or four you may begin to slow down quite a bit. This is when a property manager can move in and really take over all of the day to day tasks that have been holding you back.

Finally, an experienced property manager can also help you with any questions that you may have. And as a new real estate investor this is very important. When you hire somebody who has been around the industry for a while, it is safe to say that they have seen just about everything. Not only will this help you, but it will do the same for your tenants. For this reason, you need to hire a property manager that knows a bit about the area you are located in.

Overall, the decision to hire a property manager is up to you. If you are getting along fine without one, you may want to keep things this way for the time being. But if you are struggling to keep up with all of your work, what is the point in waiting? You would be much better off hiring a property manager that knows what they are doing. You will have to pay them for the services that they offer, but it will go a long way in helping to keep all of your properties organized. And when you are organized it is safe to say that you are going to have a better chance of growing your investment business in the future.

What Buying during a Recession should mean to you

When buying during a recession there is a lot that you need to know. If you think that this state of the real estate market is the same as any other time, you are far from right. The fact of the matter is that when you are dealing in a recession there are some changes that you need to make to the way that you are doing things. This is not to say that you have to totally change your direction, but you should consider what you can do to better your situation.

The nice thing about buying during a recession is that you should be able to save a lot of money. In many markets, a recession means that real estate prices will be down anywhere from three to five percent. As you can imagine, this will differ greatly based on where you are shopping for a new home. But no matter where you are located, it is safe to say that buying during a recession will offer you the ability to save money.

Another thing to consider when buying during a recession is that there may not be as many homes on the market. Remember, sellers know that they are not going to get as much money during a recession. For this reason, they often times wait around in order to put their home on the market. Additionally, the homes that are for sale usually go quick because they are priced to sell. If you are going to shop for a home during a recession you better be prepared to make a purchase without waiting around too long.

There is nothing wrong with buying a home when the real estate market is going through a recession. In fact, you may find that this is the right thing to do because you can save money. But remember, this is a unique situation that you will be in. You need to be aware of what you should pay for a home in a given area, and of course, you should be ready to buy. If you know what a recession brings to your market, you should have no problems buying during this time.

5 Tips for Buying Your First Rental Property.

When purchasing your first Rental Property, it is anything but delicate to get overpowered or feel like the money related choices are out of your control. Unless you are a land addict like me, you may not be very instructed in land back or investigating homes; really, I’m not either. In any case, purchasing a house is entirely straightforward. You just need to teach yourself on the rudiments, with the goal that you can keep the experts that will help you en route altogether. Underneath are 5 tips for buying your first rental property. Read More

State of the World Economy

Members, with inflation running rapid worldwide and with the new emerging middle class especially out of China we are seeing demand for all food increase and as predicted we are starting to see social unrest as a result. I have stated my concerns on past economy calls that the emergence of a large new Middle Class would put demands on Mother Earth that she may not be able to fulfill. I am predicting many more problems to happen in the future. Here is what has happened only in the last few weeks.

Governments all over the world are restricting food exports as food prices in their domestic economies are rising. Saudi Arabia cut import taxes on most foods as they are more concerned about feeding their people than protecting the domestic farmer from more competitive foreign imports. India has banned exports of all rice due to domestic shortage concerns and Vietnam has substantially cut back its rice exports.

Not only is worldwide demand for food increasing at never before seen rates but supply is becoming more limited. There remains ridiculous policies regarding using agricultural land for massive corn crops for ethanol that requires more energy to make than the energy it produces. The industry has heavy gov’t funding and strong lobby groups and therefore it is unlikely this foolish experiment will be stopped and certain persons are making too much money. But we are now seeing the consequences that are only going to get worse as more agricultural land is used for production of bio fuels.

Another problem on the supply side is agricultural land in China has decreased by over 25% in the last 20 years due to lack of available clean water and turning agricultural land into development land.

On the news last night I saw the India trade minister being interviewed and he said food shortages were becoming the most pressing trade issue. He said that world food stocks have never been lower. I spoke to a close personal friend last night in Manila and we were discussing the world food situation and he told me that in the Philippines government investigators this week raided warehouses suspected of hoarding rice.

I am following closely and will keep you updated in the coming months.


Well members I hope you read my report just 2 weeks ago and took the action steps that I discussed. I discussed that gold was overbought and there was a high likeliness of a sell off. In fact gold has fallen 15% in the last few weeks and we continue to see short weakness for gold FIC looks at this as a normal occurrence in a market that has had a very fast runup and we are excited by the fact that many members may be able to buy gold on this sell off.

We are convinced that the trend for gold over the long term remains upward and over time we call for gold prices to be much higher. As I have announced in February and March Economy Calls the International Monetary Fund would be selling 10% of its gold reserves to raise cash. That cash has been used by Central Banks to ensure the banking industry can be given emergency reserves in the event of any concern about banking solvency. Central Bankers I believe are selling much gold to have massive cash reserves on hand to avoid another calamity like Bear Stearns. As stated the Bear Stearns collapse was the most negative financial event since the beginning of the subprime mortgage crisis.

Members, do not panic with the pull back of gold. In fact gold could pull back much lower and we will still be in secular bull market in gold prices None of the trends have changed especially the non stop printing of the US dollar which will ensure that gold prices eventually will move to much higher levels. In addition, US interest rates remain near all time lows and US treasuries are not attractive to foreign investors and eventually once again they will look to higher returns and safety by investing in gold and existing the US dollar.

On April 1st the bond spreads narrowed between government bonds and corporate bonds and we saw a very strong rally in financial stocks. Many traders liquidated their positions in gold and hopped on the financial stock one day surge. It is possible that we might see some short term strength in financial stocks however, I would be very weary about still buying any financial stocks as we still could suffer an unpleasant surprise like a Bear Stearns collapse. Noone knows for sure and the club would rather sit in cash then try to play any short term rallies in the high risk financial sector.

US Dollar:

Nothing has changed fundamentally with the US dollar. However, the dollar has had such a strong sell off that what is occurring right now with the short term rally of the US dollar is what I refer to as a suckers rally. The Federal Reserve with its low interest rate policy continues to flood the market with cheap paper to pay for the war in Iraq, to pay for social services and most recently to create enough liquidity in the marketplace to ensure that banks continue to lend.

The long term outlook for the US dollar remains very Bearish and both the Republics and Democrats strategies only focus on more outlandish budgets and spending that the country cannot afford. I am absolutely convinced that there is absolutely no way with US demographics of an aging population of baby boomers and a medical program that outpaces inflation by a factor of two times that the next generation of Americans will suffer a dramatic decline in life-style.

It is the politicians desire to be reelected. The most popular way to get reelected is to announce new spending programs and make promises to the voters. The problems is that if America was to keep all its spending promises by 2040 the debt will be so large that the USA will only be able even to service the interest payments on the debt. That means that not only is there no new programs but existing programs cannot be afforded. In other words there will be no social benefits at all. I am not overdramatizing the situation. It is the fact that US spending is out of control to the amount of almost $2 billion per day more in spending than tax revenue.

No US political party has policies to stop the spending spree. America is a society where I see over time the elimination of the Middle Class who kept all their assets and money in US dollars. Make sure as an American member that you see more opportunities for investments outside of the USA to ensure you are not caught in this inevitable occurrence.

I want to urge you for your own good to attend Investfest 2008 June 6-9 in Vancouver. We have many cashflow and investment opportunities . The event is June 6-9 in Vancouver. The event last from 9am to at least 10pm daily and we have top educators from all over the planet. More than 90% of last year’s attendees are returning.

If you would like more information about the event go to Also send an email to if you have any questions.


Investors often move to gold in times of fear or uncertainty in the markets. The same phenomenon is now true for oil. When traders are concerned about the declining US dollar they buy oil futures. Recently with the rally in the US dollar oil prices have fallen 10% but still hover at the $100 mark. Oil could drop again as low as $80 in the short term but once again the long term trend for oil prices is much higher. Nothing has changed with the supply or demand fundamentals and sometimes there are other factors that influence the price of oil.

Right now financial institutions are tightening margin requirements on trading futures and this has caused a sell off in overall commodities led by oil as traders cannot leverage their trades like in the past. This also has the effect of cooling speculation and many traders have left the short term trading opportunities available in commodities futures.


Members the last few weeks all trends that I have spoken are working in reverse. Inflation is a great example. With the non stop printing of currencies around the world and money supply in the USA alone increasing 30% in the last 3 years we are looking at inflation that is going to take away the purchasing power of of all citizens.

But Mike when I read the inflation reports this month inflation had actually declined. But with so much money supply chasing the same amount of goods and services how can this occur? Well when we dig deeper into the inflation numbers we see that 3 of the major index measurements decreased.

1. The cost of borrowing money with lower interest rates.
2. Lower automobile prices.
3. Lower home prices.

Once again in isolated period of times we may see periods where we see inflation decreasing however, with so much new money supply being created everyday the trend remains upward for extreme inflation in the future.

The best way to make money in these current market conditions is through trading. It is rare that I have made such a statement but any short term upward movement in a stock or a market sector will be met with profit taking outweighing more buyers buying stock. Therefore, for those who trade I would be buying gold, oil and other commodities on sell offs and selling them on market upward movements. In this marketplace we are unlikely to see sustained market rallies as traders are very quick to take any profits.

I only suggest that very skilled technical market members who watch daily charts participate in the process of trading. It is a strategy where all your gains can be wiped out in minutes. For the majority of members the best strategy is to remain on the sidelines in cash in the short term or make an investment and be very patient and don’t expect large gains in the short term.

Another market indicator that is causing much concern is the spreads between corporate bonds and government bonds is at historic highs. The market is very fearful at this time and as a result investors are not buying corporate bonds. For this reason corporate bonds are priced much higher than government bonds. This is a bad indication of the overall lack of confidence in the market. At this moment the spread between government bonds and corporate bonds is about 4%. The historic average is about 2-2.5%.

I will note that the rally in the US financial sector on April 1st was for the first time in many months the positive perception that spreads between corporate bonds and government bonds narrowed. This is an indication that fear is abating and hence the reason we saw strong buying in the markets of financial stocks and bonds.

Today on April 2nd I am also seeing that insurance rates on all risks investments is decreasing. This is a positive indicator as investors are signally more confidence in all risk investments with the strongest confidence the last few trading sessions returning to the banking sector and the reason we have seen a rally.

With short term strength in financial stocks we are likely to see a shift away from commodity stocks and another reason for the short term bearish outlook on commodities. The good news is if we see a sustained rally of financial stocks this will be for the entire markets and we will see recovery in all sectors. We are a long way from this as we await many more market indicators in the coming months.

This current market is driven by bad news. In fact I have witnessed many times in recent months that a great announcement by a company is only met by selling and the stock moves up very little however, any slight bad news and stocks have had an over exaggerated sell off.

The school of thought that a slower economy will reduce demand for economies has been discussed for the last few years however, in recent weeks I have noticed it has been discussed much more within the popular media and a contributing factor to the short term sell off in commodities overall. Also the dollar has rallied the last few weeks and a higher dollar leads to lower commodity prices as commodities are mostly priced in US dollars and it takes few dollars to buy the same amount of commodities.

I remain very bullish on commodities overall for many years to come. This month I read a fascinating report by Jarod Diamond in the New York Times. He stated that there are 1 billion people in the developed world living with a relative consumption level of 32. The rest of the world’s 5.5 billion people live with a relative consumption index close to 1. That’s is right as Canadians and Americans we consume 32 more than the average person in the developed world which includes energy, food, and all other times of consumption whereas most Kenyans have a relative consumption of just 1.

Through his very complicated mathematical index calculation he measured that China’s relative consumption level is about 3. This was the point in his conclusion that fascinated me the most and my believe that we remain invested in the right areas. If no other factors change, no new population growth, no other countries increase their relative consumption rates, an increase of Chinese per capita consumption to levels in the West would increase global energy demand by 106% and that of metals by 94%. In other words , if China were to achieve relative consumption parity to the West which I believe will happen over the next 50 years then demand would double for all commodities with no population increase. The challenge is that the world population will be close to 10 billion in the next 50 years and we cannot as a human race sustain this growth and this level of consumption. In my opening tonight I discussed we are already seeing social unrest due to the extra demands on food due to the growth of an emerging Middle Class world wide demanding more and better foods.

I am confident that this run on all commodities worldwide will work as follows. Middle Class existence in the emerging nations will improve at the expense of the Middle class in the West who can no longer afford all the luxuries of the past.

The primary goal of all governments is to increase the living standards of its population. This trend which is underway will not change. Members here is where the study gets more intense. If India’s citizens were to move to Western per capita consumption levels then world consumption of things would triple and there is no way the world can sustain this type of consumption. Now if the entire world were to catch up the amount of consumption would increase by 11 times. This is the equivalent of attempting to support 72 billion humans (6.5 billion population time 11)

The difficulty for Canadians and Americas is that this formula is a zero sum proposition. In other words, what is used for consumption purposes in India and China will not be used by Americans and Canadians. No politician ever discusses life in 50 years as frankly I don’t think they care beyond getting reelected. I am very concerned in the long term for our children and especially our children’s children. Planet Earth cannot sustain this growth and one day we will require a world governing body and that will only happen when the human race is faced with mass populations dying without change. The only way such changes will occur is if it happens to Westerners. Only at the point when we cannot buy milk, bread, meat and gasoline and walk in the streets protesting worldwide will a new worldwide governing body emerge. I believe we are only 50 to 100 years away from this happening but just your reaction right now Most of you think, “I will not be here and that is the problem.”

We have seen very few sectors to make money but we have discussed carbon capture as a place that investors could make strong returns but would have to be patient. The Freedom Investment Club bought 400000 shares of HTC Pureenergy Inc at $2.09 per share. The stock is now trading above $4.80 per share. The company is in the business of Co2 capture and storage and on March 28th Prime Minister Harpur handed HTC a cheque for $240 million to help develop the world’s first and largest commercial scale carbon capture and storage demonstration project.


Other than the election in Zimbabwe it has been a quiet month geopolitically. It looks like Mugabe’s rein of bankrupting his economy and bringing misery to millions is over as despite his attempts to fix the election he has lost the vote however, still as I speak he has not conceded defeat. There are a few people that are better off never have lived on the planet it is very unfortunate for the damage that Mugabe has caused millions that at an earlier stage he was not brought out back and shot. He is a narcissist self absorbed by greed and power that took a once prosperous country and turned it into an economic basket case. To give members a sense of how bad things are if I give someone $10 US I would in return receive $400 million Zimbabwe dollars. Inflation is so bad that prices double every few days. It will be great to see the end of this tyrant. Maybe they can send Mugabe to join Chavez on a one way ticket to oblivion. These men are the saddest creation of human beings.

Today Fed Head Bernanke implied that the economic stimulus programs seem to be working and that is a signal at least in the short term that we are unlikely to see any further interest rate cuts. The Fed in previous months have loaned capital to banks that in the past would not meet loan criteria. For example, the two mortgage lenders in the USA Freddie Mac and Fannie Mae have been making loans available to homebuyers in geographical areas they would not have in the past. Job growth in the US was better than expected as analysts expected a loss of 75000 jobs in the private sector but the number came out that jobs increased by 6000. The worst news since my last writing when Bear Stearns collapsed is that the large Swiss bank UBS writedowns exceeded 19 billion and they are now raising 15 billion through an offering.

US elections and statements made by candidates are not impacting the markets. This will change as we get closer to a Federal election and it becomes apparent who will become the next President of the United States.

From this time last year mortgage applications are down 28.7% and refinancings are down 38.1%. The highest number of adjustable mortgage resets have occurred in March and we will see what happens to the number of foreclosures over the next several months and determine if we see a market bottom in US housing prices.

The feedback on an upcoming fieldtrip to Chula Vista near San Diego on a previous newsletter was overwhelmingly positive with over 200 members interested to attend. The purpose of the field trip would be purely educational to examine the market as it is a great market study for what has happened in the subprime mortgage crisis. In Chula Vista residential developers dominated city council policy and the area was overbuilt with new homes very quickly. This was an area that was particularly aggressive with questionable mortgage practices and initial adjustable mortgage teaser rates. I continue to watch the carnage in the area as Executive Homes that were selling for 1.5 to 1.7 million less than 2 years ago are now selling in the 800k range and it is likely these properties could drop further. It is impossible to pick a market bottom but when market indicators are showing signs we are near a bottom due to the overwhelming interest the club is looking further into planning a field trip and possibly an investment opportunity.


One of the most commonly asked questions remains on uranium as many members continue to own uranium stocks. Activity on the spot market has been very quiet with the majority of demand coming from discretionary buyers. Sellers now appear willing to lower their offering prices to attract buying interest.

Despite the recent uncertainty and spot price weakness, the fundamentals for uranium long term remain strong. Internationally many governments continue to endorse nuclear fuel led by China and Russia. There is also renewed political support for nuclear expansion in the UK and Europe.

How to Speak the Secret Language of Contractors

Often times people ask me how I have been able to manage between 15-25 projects at one time and not lose all my hair. Although I must admit that I have lost quite a bit of hair from the many mistakes I have made along the way, I have noticed recently that it is slowly growing back as I get better at learning how to manage my contractors more effectively and avoid these mistakes. I have spent a lot of time studying the art of rehabbing homes from some of the best in the business combined with learning from my experiences of doing over 100 deals and 64 projects just last year alone.

Now I have made it my mission to share my systems for hiring contractors and managing projects effectively with real estate investors across the country. I noticed that many investors see the huge potential of the business of rehabbing homes but dread having to deal with headaches or potential contracting nightmares. This fear prevents many investors from getting started rehabbing in the first place. I am committed to helping you overcome this fear so you can cash in is one of the most lucrative streams of income out there.

So what does it take to find these contractors?

When people see my team and I on TV Show Flip This House they are able to see the amount of rapport that I maintain with my contracting teams which is a critical ingredient to becoming successful in the art of rehabbing homes to maximize profits. Let me say this, there is a lot of work behind selecting and managing a contracting team that can get your job done not only the efficient way but the most effective way which will ultimately mean the difference between success and failure on your bottom line.

One of the most common questions that viewers post to my blog is this: How do you find qualified and competent contractors to complete your jobs both professionally and proficiently? The first step in good management is hiring the right contractors from day one. The key to doing this is knowing what to look for in the first place. The single most effective way to communicate to potential contractors is to learn to speak their language. The single mistake of mismanaging your contractors can make you or break you in this business. Although it may sound cliche I cannot stress enough how pivotal mastering communication on the initial estimate can be on the final outcome of your job. I have a 3 Step process that I follow that will help you become an expert communicator in Contracting 101.

Step Number 1

Do your Homework

When I got started in this business I would call four contractors and receive one bid. Many of you I am sure are lucky sometimes if you can get that and when you do it is often a bogus quote. The solution to this is first mastering the conversation with the contractor while they are bidding on the job by making it clear that you know what you are talking about. If you are unsure of costs you must do some preliminary research beforehand so that you can speak contractor language. Contractors will not respect you and often take advantage of you if do not clearly state what you need and what you expect to pay for their services.

Begin by educating yourself on what the costs of doing a job really is. You can search online, talk with local material suppliers or consult a reference manual similar to the one that I wrote which I created to solve this problem when I was training my project mangers. I have found specific manuals dictating baseline costs of materials and labor are one of the most valuable resources to use especially if you are new to this business.

Step Number 2

Lay Out a Detailed Scope of Work that Outlines Your Expectations.

Before I meet with a contractor I lay out what I call a detailed scope of work. This scope of work lays out each component of the contractor’s job that I expect to be completed within a certain time frame in order for them to be compensated.

This holds them accountable but also shows them that I have done my due diligence and that I know what I am talking about in terms of the work expected. In addition in my initial meeting I make it clear that I have a budget and a specified timeframe to complete the work within. Then I will actually give them a deadline to meet when submitting their quote. I clearly state a period of time that I expect the job to be done in order to test their confidence in hitting the overall target date for completion.

Let me give you an example of a typical conversation that I would have on an initial estimate;

Hi, I’m Paul Esajian with DR Homes, LLC. I work with a network of investors that rehab over a 100 houses a year and I need to form new relationships with responsible contractors so that I can give them multiple projects. Is this something your interested in?

Great, I have a budget of 25k and feel confident that you can work within that number. This is a great opportunity for us to start working together and I would like you to give me a estimate for a roof at 123 East Street today if possible. The scope of work is at the house with the standard Quote Itemization Form complete the form and fax or drop off this quote by 5pm today. I need to get working on it right away as it needs to be completed in three weeks. Do you have the staff and the time to complete this job within that time frame?

Great, as I mentioned before I do multiple projects at once so I will require you to pull the permits, That is something that you do correct? Great, I have written up a scope of work that I expect you will need to do to complete the job but will also be open to your expert opinion in how I can get this job completed in the fastest most professional and cost effective manner.

Great, I look forward to reviewing your bid on Wednesday and if everything looks good we can begin work on Monday.

Notice that I laid the foundation for everything that I expect from this contractor before I have even met him. I do not want to waste his valuable time and I definitely do not want to waste mine. By following contracting Interview scripts like the one above, I have obtained all the answers I needed before he has come to look at the property and bid on the job. If they can meet all these requirements next I will invite them to come bid on the project.

Step Number 3

Investigate the Contractor’s Business before you go to contract.

When an estimate comes in and is near my numbers the next step in my hiring process is investigating the contractors business. I want to know how long they have been in business. If they have another business I also investigate what that is and the time and capital to run that as well to make sure they can work on my allotted timeframe. Because of previous negative experiences I no longer hire contractors that have less than 3 years experience as a rule of thumb. Next I check their business credit. I never want to have to make a payment because they have run out of funds. I go by the golden rule to stay ahead on work and behind on payments. Finally I verify their insurance and provide them with 6 critical documents that I have developed that protect my business. This gives me an opportunity to communicate both verbally and written exactly what is expected to be completed before payment can be given. I also make a payment schedule that outlines benchmark & milestones.

By following these 3 easy steps you are well on your way to building a network of competent contractors that can efficiently manage and complete multiple projects leading to huge profits in the future.

Sellers and Buyers: Working Together during a Recession

During a real estate recession, both sellers and buyers are looking for something special out of a transaction. Even though this is always the case, a recession brings out a new side of sellers and buyers; a side that is not seen very often due to the differing circumstances. No matter what side of the deal you are standing on, you need to know what to expect from the other side, as well as what you can do to help out your own situation.

As a seller during a recession you know that you are up against the odds. The reasons for this are simple. First off, the market is slow which means that there will not be nearly as many buyers looking for homes. To go along with this, the buyers that are in the market are expecting to save a lot of money. After all, recessions in the past have shown savings for buyers of up to five percent. And of course, every potential buyer will think that this is the kind of deal that they are going to get.

As for the buyers, they may not have as many homes to choose from because of the slowdown of the market. One area that a buyer may want to check is new home construction. During a recession, developers are more so inclined to drop the price on their new construction homes. After all, offering price drops and upgrades is the only way for them to get rid of the properties that they have built.

When it comes down to it, a real estate transaction can only be successful if sellers and buyers are willing to work together. During a recession this is even more so the case because both sides are up against difficult odds. When you get sellers and buyers who are willing to work together, the end result is a house that gets sold at a mutually agreed upon price. Even though this may sound a bit far fetched, it is possible to agree to terms with the other party.

Overall, it can be difficult for sellers and buyers to get on the same page during a recession. No matter if you are in the market or trying to find a buyer, you need to know your role. And from there, take the time to consider what the other party is going through. This will help you to make a deal in the end.

What to expect when Selling during a Recession

When selling real estate during a recession there are some things that you should expect. Even if these details do not present themselves to you, expecting them will put you in a much better position. Selling during a recession is not the same as doing so when the market is in good shape. The more that you know about this type of selling the better chance there is that you will achieve the success you are after.

One thing to expect when selling during a recession is a slow market. In other words, do not expect to have thousands of potential buyers breaking down the front door. During a recession things tend to slow down quite a bit. People will be more selective about what they are buying, while also moving forward in a cautious manner. Additionally, some buyers will simply decide to wait for the recession to past.

Another situation to expect when selling during a recession is buyers who are not willing to pay your asking price. They know that a real estate recession usually results in lowered prices, and for this reason they use it when shopping. The good thing is that as the seller you are in charge of the entire situation. If you feel that lowering your price will not affect you too much, you should go ahead and do so. But remember, never make a rash decision. Some sellers drop their price right away just to make a sale, and find out in the end that they did not have to do this. Consider every move that you make if you decide that you are going to sell your home during a recession.

Overall, there is a lot that goes into selling during a recession. You not only need to know about your home, but staying up to date on market news is also very important. On top of all this, you then have to deal with potential buyers. Do yourself a favor and stay patient no matter when you are selling your home. This will help you to get the best deal, and will definitely work in your favor during a recession. And as a seller, you want to have as many benefits on your side as possible.