Barbara Corcoran: Do These 3 Things If You Want To Buy a Home Right Now
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Heather Taylor
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Amber Barkley
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It’s tricky to navigate the real estate market if you don’t have the right information to guide you. In a recent “Good Morning America” appearance, real estate mogul and “Shark Tank” star Barbara Corcoran talked about the current housing market and how buyers can confidently shop for a home.
Here’s what Corcoran had to say about the spring 2024 housing market.
Interest Rates Will Probably Go Up By the End of 2024
If your expectation is that the housing market will thaw out this spring, the reality is it’s not going to happen. Corcoran said this is because of interest rates. By the end of 2024, Corcoran predicts interest rates will likely go up by 1% — or they might go down by 1%.
“What’s interesting is that 1% only represents a 10% difference in your mortgage payment,” said Corcoran.
By looking at this metric, she said buyers can ask themselves if they can afford 10% more or less. If you’re not in the market, however, Corcoran said by the time interest rates do come down, you’ll have double the competition. It’ll be impossible to get your hands on a house.
Tips for Buying a Home in 2024
For buyers in the market looking to buy a home right now, Cororan shared the following tips:
Shop Around for Your Mortgage
Most people fall for low interest rates they see advertised, which Corcoran said is a terrible mistake that happens when you’re shopping for a mortgage.
“The only number that counts is the APR,” said Corcoran, adding that the APR includes interest rates and all of the fees charged by the bank.
Write a Love Letter
How do I love thee, townhouse? Let me count the ways. Does the approach of writing a love letter really work when you’re shopping for a home? Yes, according to Corcoran.
She told GMA she was able to buy her last three homes by writing the owners love letters explaining why she adored these houses. None of these homes were on the market, either.
Your love letter might not get a call from the home’s owner right away, but Corcoran said every time she has done this she has “eventually” received calls from curious owners.
Make an Offer
If you find your dream home and are ready to buy it, it’s time to make an offer. Corcoran previously shared some of her best tips for winning a bidding war in an episode of “The Rachael Ray Show.”
- Ask yourself what you’re willing to spend on a house or condo. While some people will put in low bids in the hopes of receiving a second chance to make an offer, Corcoran said you don’t get a second chance in a hot market.
- Offer your best bid upfront. Corcoran said a potential buyer thinking of offering $320K, for example, needs to ask themselves what price they’re willing to lose the home to someone else. What if someone else makes a $350K offer, and they get that house with that offer? You would need to offer $350K.
- Offer all cash, even when you’re financing. Corcoran recommends getting pre-approved so you can confidently say your offer is all cash.
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