New Haven real estate and properties in the rest of the Connecticut have suffered from frighteningly high foreclosure rates over the recent months.  Luckily, the trend seems to be ending soon.  According to Dan Levy’s Bloomberg article on November 12, 2009, “U.S. foreclosure filings surpassed 300,000 for an eighth straight month as unemployment made it tougher for homeowners to pay their bills.”  Additionally, “rising vacancy rates and the resulting loss of rental income will lead to the reduction of the market values of properties and increase foreclosure rates.”  However, foreclosure filings in Connecticut dropped over twenty-six percent to 2,306.  This positive change brings hope to several homeowners who have watched foreclosure rates increase in nearby New York and Massachusetts as of late.

New Haven homes for sale have maintained a relatively consistent price level despite other areas experiencing price cuts of up to forty-three percent, like in some Floridian neighborhoods. However, New Haven properties have not been immune.  In Daniel Taub’s Bloomberg news report on November 12, 2009, it appears as though more than thirty percent of homes in New Haven have experienced price reductions, although more recent numbers show that price reductions are beginning to taper off as the economy recovers and sellers begin to regain some pricing power.

A large part of real estate in New Haven is dedicated to Yale University’s faculty, staff, and students, and is largely seen as immune to most changes because of the properties’ operational necessity to the school.  Regardless, Yahoo! Real Estate reported 244 foreclosures in New Haven between October and November 2009, selling at a median price of only $139,000.  This price tag is a 0.7 percent drop from the previous month’s median.  The median price for other homes for sale didn’t change.

When the economy is booming, people are generally happier with their work and overall purchasing power.  They go out to buy things, they dine out and they make big investments such as buying real estate properties.  Similarly, when the economy experiences setbacks like the recession we are experiencing today, people have a greater feeling of needing to save.  They feel that they have to tighten their belts and not spend as much.  As a result, the economy goes further down.  People are not as enthusiastic about buying houses or properties.  With regards to selling, individuals find that they have to sell their houses to pay for mortgage, because they are relocated due to employment changes or some find that they would be able to save more if they lived with relatives.

From this instance alone, one can see that although the number of buyers goes down, the number of sellers remain the same or even go up.  As such, prices begin to drop and depreciation of properties takes place.  People should take advantage of this slow period, however.  After such a time the economy would surely kick off again and start to improve.  For this reason, people are still encouraged to make real estate investments even at this condition of the economy.

The key to making a good deal is to make a great offer.  When you have chosen the house you want to purchase, you can now start negotiating with the seller by writing him or her your first offer.  Usually sellers make the price known to potential buyers.  Do not be afraid to offer something that is lower than this.  After all, the seller has already considered having offers that are lower but still reasonable.  According to real estate experts, determining the proper amount that one should offer is a three step process.

The first step is to consider similar properties in the market and how much they are selling.  This is called comparable sales.  In the location where the property you are eyeing is located, consider what the going rate for houses is.  At least have an idea of the price range.  Compare the prices of homes within the same size, number of bedrooms, bathrooms, floors, garage space and total area that you are planning to purchase.  You may also refer to actual documents and databases listing the prices of similar properties.  Three main sources can be accessed by a certified real estate agent.  However, the public is generally restricted to it.  Nevertheless, there are public records and multiply house listings that can easily be accessed by the public.  You can make use of this.

The next step is to look at the house itself.  Does it need repairs?  Are you going to have renovations made?  Also take into consideration the condition of the seller?  Is she or he in a hurry to sell the property?  Is it in a mortgage under a bank?  As a third and final step, adjust the price you have come up with and analyze if this is indeed ‘fair’ for the seller.

It is not very hard to strike a good deal.  Just remember to be fair with the seller as well.  Talk to him or her about your concerns and even your budget and you could actually get that property you want.