Whether you’re buying or selling a home, be prepared for a lengthy, complicated process. The outcome can be rewarding, but recognizing — and finding — a great deal isn’t always easy.
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As of Q4 2024, the median sales price of homes was $419,200 (as per Fred Economic Data). The median time homes sat on the market before being sold was 66 days. That might not seem long — until you’re on either end of the transaction.
If you’re starting to lose sight of the end goal or are unclear on what makes for a great deal, you’re in the right place. Here are five quotes on homebuying and selling from known real estate mogul, Barbara Corcoran, to help you out.
Decisions Get Made “In the First Eight Seconds”
Corcoran once said, “Buyers decide in the first eight seconds of seeing a home if they’re interested in buying it. Get out of your car, walk in their shoes and see what they see within the first eight seconds.”
If you’re selling property, this can give you perspective on what prospective buyers see when they come by. Consider the property’s curb appeal, or how it looks from the outside. Is the paint peeling? Is the front yard well-maintained?
Big or small, these things matter and can impact how long your home sits on the market — and the kinds of offers you get.
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“Buy With Your Heart, Not Your Head”
If you’re buying, you should consider your finances. After all, you want to make an informed decision. The last thing you want is to get saddled with a debt you can’t afford.
But homeownership has a major emotional side.
“Buy with your heart, not your head,” Corcoran said in an interview with the Today Show. “You can look at all the aspects that make a purchase practical, but that kind of thinking makes it an investment rather than a home.”
If you want an investment, that’s one thing. But if you want a home for yourself and potentially your family, don’t be afraid to let your heart into the decision-making process.
Refinancing Makes Sense “If You Can Lower Your Interest Rate”
“Refinancing your mortgage usually makes sense if you can lower your interest rate by at least two points,” said Corcoran in a Today article. “But the most important question to ask yourself is, how long will it take you to break even?”
Say you get a mortgage with 6.50% APR. By this logic, you should only refinance if your new loan’s APR is 4.50% or lower.
Remember to consider things like your credit score, how much equity you’ve built, and how refinancing will affect your new monthly payment. Refinancing could also extend how long you have to pay off the loan — which can be either a good or bad thing.
“Make a Bid 10% Below”
“If a house is priced appropriately, make a bid 10 percent below that amount,” said Corcoran.
This advice applies primarily to buyers looking to score a good deal.
“Don’t pay attention to asking prices at all,” Corcoran said. “What people ask for has nothing to do with the value of a property.”
Say the property’s listing price is $400,000. If you think it’s worth less, try for a lower offer of $360,000. Compare the property with others in the area to ensure you know its worth.
“The Most Influential Factor In Selling a Home Is Always Price”
If you’re selling, price your home appropriately.
“The most influential factor in selling a home is always price,” said Corcoran. “Don’t build ‘wiggle room’ into the asking price. There’s a price war out there and you have to win it from the get-go.”
See what sellers with similar properties price their homes at. This will give you a better idea of what your property is worth.
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This article originally appeared on GOBankingRates.com: 5 of Barbara Corcoran’s Best Quotes That Will Help You With Home Buying and Selling
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