Middle Class Looking To Purchase a Home? Barbara Corcoran Shares 4 Tips
Owning a house affords middle-class families the possibility of building wealth. of course, due to a shortage of inventory, home prices continue to increase as high interest rates only worsen the situation.
Fortunately, financial personality Barbara Corcoran has provided numerous actionable tips to make buying a house more attainable for the middle class if they are in the market to buy. Here are a few pointers to consider.
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1. Consider Homes That Have Been Sitting on the Market
Seeing a new listing is exciting, but you're likely not the only one looking. Corcoran advised in an interview with Yahoo Finance to avoid the shiny new listing. "I would say the most important overall tip is always look where somebody else is not looking, and that's always where you find your value," she said.
Instead of visiting the new possibility, dig deeper to find a hidden gem. "Do your search based on houses that have been on the market nine months or longer," Corcoran added. "Those people are having second thoughts, thinking of taking a lower offer, ready to move, and that's where you want to put your lower offer."
It takes some work, but it may reap a discount.
2. Shop Off-Season
Spring and summer are commonly peak home shopping seasons. That increases competition, making it conducive for sellers.
"People don't like to shop in the wintertime or Christmastime. They think it's a bad time," Corcoran said. "It's a great time to shop for houses because you're not going to have any competition out there, and they are going to be more likely to take your bid."
If you're not in a rush, waiting for the off-season may provide the chance to snag a home at a reduced price.
3. Don't Be Intimidated by a Fixer-Upper
Purchasing a fixer-upper may not be glamorous, but the savings can be attractive. If you have the know-how, it pays to include fixer-uppers in your search.
"People don't want to bother with [a fixer-upper] because it takes upfront cash, but you could always get a construction loan," Corcoran said. [There's] no problem getting construction loans today, and you could find a fixer-upper and add value yourself if you're willing to just wait a few months to do it."
4. Seek Out Homes With a Second Entrance
An overlooked way to save on a home is to purchase a property with a second entrance. A basement or back-of-the-house entrance qualifies as a second entrance.
That matters because a second entrance may reduce insurance costs. "You could create a small unit in the basement or the back of the house where you can offset your insurance costs," Corcoran said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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