Real estate mogul Barbara Corcoran has been wheeling and dealing in the housing market for decades. She’s certainly seen her share of ups and downs.
That’s why, despite the volatility of the residential housing market, the “Shark Tank” star recently told her one million followers on Instagram that it’s still a good time to purchase a home.
Here, Corcoran offers her three best tips for purchasing a home in the current market.
1. Take some of the pressure off yourself
Corcoran says that buyers shouldn’t put so much pressure on themselves. Yes, it’s a big purchase, maybe the biggest of your life, but this doesn’t have to be your “forever home,” she said.
Real estate purchasing doesn’t have to be one-and-done, she adds. You can always sell or refinance. Don’t “take it all so seriously.”
2. Reevaluate your budget (realistically)
“Your budget won’t go as far as it used to, but instead of looking at the added cost of a house, or the added cost of a mortgage, figure out what your mortgage payment is and ask yourself, ‘Can I afford that,'” she explained. “It kind of makes it in real day-to-day terms that you appreciate and might just go forward understanding that.”
3. Shop for the best rate
Corcoran topped off her advice with something that can be used when making any major purchase — don’t settle for the first deal, and explore multiple options.
“Don’t forget to shop for the best possible rate. People don’t do this. People go to a mortgage company, of course, but start with your own bank,” she advised. “You might want to ask them, do they have any special discount for a good customer who’s been banking with them for a while? It’ll very often save you a full quarter percent. Doesn’t sound like a lot, but it adds up.”
Why now is a good time to buy
Earlier this month, Corcoran explained that even though residential prices and mortgage rates are high, buyers should consider making a purchase now and refinancing when the rates drop — because as soon as they do, prices will start rising again, and “all hell is going to break loose.”
“This is the very best time to buy a house because everybody’s scared,” she said.
Corcoran’s estimated net worth is $100 million.