Barbara Corcoran: This Is the Biggest Mistake People Make When Buying Real Estate
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Gabrielle Olya
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Joe Evans
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Buying a home is exciting, but it’s also a major investment. That’s why ensuring whatever property you’re buying meets your needs is important. Even if a home seems to hit every mark on your checklist, there’s one crucial mistake you could be making, according to real estate guru Barbara Corcoran.
Here’s a common mistake buyers often make.
Barbara Corcoran’s Homebuying Advice
Corcoran, who is one of GOBankingRates’ Money’s Most Influential Women, said that there’s one major mistake that could lead to homebuyers’ remorse.
“The biggest mistake people make buying a house is that they don’t scope out the property at different times of the day,” she told GOBankingRates. “It’s the only way to catch the loud garbage truck that idles outside at 6 a.m., the party house across the street or the dog next door who barks all afternoon. Always go back for another look.”
Corcoran has previously spoken about other reasons a home might not be a good investment. One is if you plan to move within the next couple of years.
“It always pays to buy a house if you’re going to be somewhere for more than two years. If you’re going to be in and out — you’re working at home, you’re going to take a temporary job — it never, never pays,” she said while appearing on Forbes’ “Women & Wealth” series. “It never pays, because closing costs outweigh any benefit you get from appreciation. So your rule of thumb is generally at least two years in the market before you [sell].”
You also should never buy a home if you can’t realistically afford the mortgage.
If you’re deciding whether or not to buy, “it all comes down to one thing — can you afford the mortgage payment,” Corcoran told Forbes. “Can you afford the monthly cost? If you can afford the payment, you’re buying the house; if you can’t afford it, you have to wait.”
Jaime Catmull contributed to the reporting for this article.
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