As housing market slump, price stop appreciating, how much should I pay for a property?

Answer 1

In a buyers market, sellers tend to panic and will consider almost anything to unload a property. I am not suggesting you take advantage of people but your job as an investor or agent is to determine the Fair market value and start from there. Sometimes that doesn't equate to what a seller thinks their FMV is.

Historically, housing trends last for four to five years absent any continuing outside influences, like war, weather issues, job loses etc. In some parts of the country though, trends can differ from street to street. A desireable neighborhood will always be desireable and while prices may slump, they will probably never get into negative growth. At the same time, a low or middle class subdivision across the tracks could be losing value by the minute not unlike a brand new showroom vehicle as soon as it hits the street. In that case, your only hope is to hold the property long term until the trend turns and get as much in rent as you can and keep it rented.

It is all relative. Do your research!

Answer 2

Whatever is the lowest price you can get the owner of a property that is attractive to you to sell.

Prices are down 20% locally to me. It is possible, even likely, that prices may come down further. But right now, buyers have more power to make the deal they want than they will again for the next ten years. Even the ugliest buyer is looking very attractive right now. When more people come off the sidelines and are willing to buy, buyers are going to have a lot less power.

For instance, right now seller carrybacks are practically routine. People with truly putrid credit are able to leverage this fact into 100 percent financing. Sellers don't want to do carrybacks, ever! They want their cash, not a continued interest in the property, and particularly not from someone with putrid credit who can't get banks to lend that much! But the facts of the market are giving buyers the leverage to get that. Later on, when more buyers come off the sidelines, sellers will tell such buyers to take a hike.

Answer 3

it ought to matter upon the position you look. even even as the expenditures went down in maximum factors of the U. S., some areas were up. And that still counts for nice Britain and quite some different countries. If that's for funding you more beneficial valuable look at different countries like Bulgaria and Romania, both joined the ecu community this 365 days, the position prices will upward thrust with double digit % for the subsequent 5-10 years.

Answer 4

Take the price of the house and add 5% for each year til now. That would be the ral fair market value. Not a penny more.

Answer 5

at this point find an area you like to live, then find a large group of houses that you could live in, then start low bowling offers, while most will be rejected their are some people getting desperate to sell, paying asking price at this point for a house might be a Gamble

Answer 6

That is totally dependent on where you live, there is no set price in any area for any type of property, why not look into foreclosures?

Answer 7

Go to http://www.zillow.com/ to calculate what the property is worth

Answer 8

to day you will pay more than latter.
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