Influential Real Estate Entrepreneur Says You Have One Month Left to Buy a House
Barbara Corcoran believes now is the “very best time” to purchase a house, but she advises that you have just one month to act.
The real estate expert and “Shark Tank” star issued a caution on Instagram on October 24 for those hesitating to enter the real estate market. Corcoran emphasized in a video message, “You have one month to buy a house,” signaling urgency by repeating, “One month!”
She pointed out that while everyone expected mortgage rates to decrease following the Fed’s rate cuts, the opposite has occurred. Consequently, many buyers have exited the market, adopting a “wait-and-see attitude.”
Contributing factors like market uncertainty stem from scarce inventory, ongoing inflation, high interest rates, and the upcoming election, prompting many potential buyers to delay their plans.
Yet, Corcoran asserts that this moment is ripe for finding “the best deals,” as sellers, driven by their own uncertainties, may be open to negotiations. She warned that postponing plans to see where interest rates head in a year is unwise due to a shortage of homes and predictions that home prices are expected to rise by another 5%, similar to the increase this year.
Who is Barbara Corcoran?
Barbara Corcoran is an influential entrepreneur, renowned for her pioneering work in the real estate industry.
Born in 1949, Corcoran grew up in a working-class family in New Jersey and initially struggled academically. Her determination and entrepreneurial spirit led her to found The Corcoran Group, a New York-based residential real estate brokerage, with a $1,000 loan.
Under her leadership, the company flourished and became one of the most prestigious in the industry. Corcoran eventually sold the business for $66 million in 2001.
Beyond her real estate endeavors, Barbara Corcoran is a familiar face as an investor on the hit TV show “Shark Tank,” where she has become known for her keen business insights and straightforward advice.
Corcoran is also a successful author and motivational speaker, sharing her expertise on entrepreneurship and inspiring others to pursue their dreams.
Her story exemplifies how tenacity and innovation can transform challenges into opportunities, making her a respected figure in the world of business.
First Steps to Buying Your Home in One Month
If you’re considering taking Barbara Corcoran’s advice and buying a house soon, you’ll need to move quickly. Below is a step by step guide for starting your home search in order to find your new home within one month.
Determine Your Budget
The first step in the homebuying process is to assess your current financial readiness by calculating your total monthly income and expenses. This includes evaluating your savings, your monthly payment on debt obligations like car loans or student loans, and regular expenses such as groceries and utilities.
Next, you’ll want to consider how much you can afford to spend on a down payment, which typically ranges from 3% to 20% of the home’s purchase price. Having a larger down payment can decrease your monthly mortgage payments and may allow you to secure a better rate, but first time buyers may qualify for special programs at lower rates, enabling them to purchase a home they might otherwise not be able to afford.
Speaking of mortgages, a good rule of thumb is to ensure that your monthly mortgage payment does not exceed 28% to 30% of your gross monthly income.
Additionally, don’t forget to factor in closing costs, which usually account for 2% to 5% of the home’s purchase price, and ongoing expenses such as property taxes, homeowner’s insurance, and potential homeowner association fees. Lastly, ensure that you have an emergency fund for unexpected additional costs before purchasing. This will provide you with a safety net for unexpected expenses.
Essential: Get Pre-Qualified
Before you begin hunting for a home, it’s essential to start by getting pre-qualified for a mortgage. This initial step involves a basic evaluation of your financial situation, where financiers assess your income, assets, debts, and credit history to estimate how much you can afford.
While getting pre-qualified doesn’t guarantee a mortgage, it provides a realistic budget range and demonstrates to sellers that you are a serious buyer. It also helps identify any potential financial issues that need addressing early in the process, such as improving your credit score or reducing debt.
Pre-approval also shows sellers that you are serious. With a preapproval letter in hand, you have a better chance of having your offer accepted.
Pre-qualification simplifies the house-hunting experience by narrowing down property options within your price range, ensuring a more focused search. Moreover, it accelerates the full mortgage application and approval process once you’ve found the right home, offering a competitive edge in today’s fast-paced real estate market.
Choosing the Right Financier
Selecting the right financier is crucial when venturing into home ownership, especially for those seeking options that align with specific ethical or religious values.
For people interested in alternatives mortgage options rather than a traditional mortgage, Guidance Residential presents an appealing choice. Unlike conventional lenders, Guidance Residential operates on a co-ownership model.
This unique approach involves entering into a partnership with the homebuyer, where both parties contribute to the purchase of the home. The homebuyer gradually buys out the financier’s share over time, while both enjoy the benefits of home ownership. This method eliminates the burden of interest-based transactions, making it an attractive option for those who prioritize faith-friendly values in financial dealings.
By offering transparency and a commitment to ethical financing, Guidance Residential ensures that homebuyers can achieve their dream of homeownership without compromising their principles.
Check for Assistance Programs Available to You
Make sure to talk with your financier about assistance programs that might be available to you.
Many programs exist for qualified buyers, especially first time buyers. The federal government as well as private organizations offer a range of programs to home buyers.
Your financier might also have their own assistance programs available to you. Guidance Residential at times offers assistance to qualified buyers, so be sure to ask your account executive for all the details on programs that might make it more affordable for you to buy a home.
Next Steps
After you determine your budget, choose a financier, and get pre-qualified, here are the next steps to take to get your home within a month.
1. Define Your Needs and Wants
Make a list of features that are critical for your new home—such as location, size, and amenities. Distinguish between needs and wants to focus your search on homes that will most likely meet your essential criteria.
2. Hire a Real Estate Agent
A knowledgeable real estate agent can be invaluable in your home-buying process. They possess expertise on local market conditions and can negotiate on your behalf. Ensure that you choose good real estate agent, someone who understands your needs and makes you feel comfortable. You’ll be working with them closely, so you need to feel comfortable with them, and you need to be able to trust them to assist you, especially in competitive markets.
Guidance Home Services can connect you with trusted and proven agents in your area.
3. Start House Hunting
With your pre-approval, needs list, and agent by your side, it’s time to start searching for homes. Attend open houses and schedule visits to properties that match your criteria. Take notes and compare features to narrow down your options.
4. Make an Offer
Once you find a home that meets your criteria and fits your budget, work with your agent to make a competitive offer. Be prepared for possible negotiations with the seller’s agent until you reach an agreement. You can include conditions such as an inspection contingency in your offer, which ensures that you can easily get out of the deal if the home has major flaws.
5. Conduct a Home Inspection
After your offer is accepted, hire a professional home inspector to evaluate the property’s condition. This step is crucial to identify any potential issues that may require repair or influence the final purchase price. If flaws are found, you may want to have your real estate agent go back to the seller’s agent to negotiate repairs.
6. Finalize Your Mortgage
With the inspection completed and any negotiations resolved, finalize your mortgage agreement with the financier. This involves working through the final paperwork and ensuring all conditions of the loan are satisfied. Take a final walk through with your real estate agent to ensure that the home is in the expected condition.
7. Close the Deal
The final step is closing, where you’ll sign all necessary documents, pay closing costs, and officially transfer ownership on the closing date. Once completed, you’ll receive the keys to your new home.
Ready to Get Started?
Buying a home is one of the most important decisions you will make. The team at Guidance Residential is here for you, from the first step of pre-qualification or pre-approval, on through to finding the right real estate professional for you and your family — or refinancing a home you already own. We invite you to explore the home buying process with Guidance Residential today. You can also instantly calculate an estimate specific to your personal situation with our finance calculators online.
Guidance Residential remains the #1 U.S. Islamic home financing provider, with more than 40,000 families assisted over more than 20 years. Learn more about our co-ownership model of Islamic home financing, and get started on your home finance journey today.
Your Guidance Residential Account Executive is here to help with any questions. Looking to refinance or purchase? Have a friend or family member who is looking for a home? Call 1.866.Guidance, or start an application today.
