The Real Estate Black Friday
Black Friday refers to the day after Thanksgiving (often starting as early as midnight) when retailers provide incredible deals to shoppers willing to fight through massive crowds and traffic jams. From televisions and computers to the hottest toys on the market, shoppers from around the country look forward to Black Friday every year.
This year, Black Friday plays a particular importance in gauging consumer confidence. With the foreclosure crisis and crash of the United States economy, many people are without jobs and therefore are struggling to make ends meet. Furthermore, those with a modest income are still weary of investing (even in leisure shopping) due to economic uncertainty. The number of shoppers and the amount of merchandise sold this Black Friday could provide indication of consumer confidence.
The Real Black Friday: Real Estate Bargains
However, this year buyers may want to look into real estate, where the best bargains lie. The high number of foreclosure homes (distressed properties, REO homes, etc.) on the market provides Black Friday shoppers with an incredible opportunity to find a home for far less than market value.
Why, exactly, is now a great time to buy real estate?
1.) Foreclosed Homes for Sale
The great thing about the current real estate market is the high number of discounted properties on the market. If your family had your eye on a $200,000 home in 2006, you can potentially get this same type of home for up to 50% off (depending upon your location, the local real estate market, and a variety of other scenarios). Although purchasing a foreclosure property may require some initial handyman labor, the work could be minimal and your investment could be outstanding.
2.) Low Interest Rates
Along with the high number of foreclosure properties on the market, incredibly low interest rates provide a rich incentive for homebuyers and investors alike. Obtaining a low interest rate can substantially reduce the overall cost of your home (more than most people realize). Therefore, shop around to find the best interest rate possible and be prepared to see the savings.
3.) The Buyers’ Market
Perhaps the most important reason for you to consider real estate when planning for your Black Friday shopping is due to the current buyers’ market. Over the last few months the list price has been more of a suggestion than a sticking point. Gone are the days of sellers having the last say and being able to stand firm with their desired home price. Now, buyers are able to take advantage of the current real estate market and economy and make reasonable offers that are often not refused.
In the end, Black Friday shoppers should definitely take into consideration the incredible real estate deals that is right on their doorstep (or future doorstep). Utilize the high foreclosure inventory, low interest rate, and buyers’ market to your advantage this holiday season. Happy investing!
