Barbara Corcoran Has These Words of Wisdom for New Home Buyers

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  • There are a lot of factors that should go into your home buying decision.
  • It's important to buy a home that will meet your needs and make you happy.

It pays to take her advice to heart.

The current real estate market is a tough one for home buyers across the board. Not only are home prices up on a national level, but housing inventory has still yet to catch up with buyer demand. That means buyers are commonly having to duke it out in bidding wars, which can be both costly and stressful.

Compounding the problem is rising mortgage rates. Borrowing for a home has been more expensive since the start of the year, and now, many buyers are being forced to make difficult choices to purchase property.

In fact, some buyers may be hesitant to purchase a home at all right now because they're not sure if they're buying in a strong market or not, and they're not sure if they're buying at a price that will allow them to make money over time. But real estate guru and Shark Tank personality Barbara Corcoran has some key advice for people who are struggling with those decisions.

Buy where you most want to live

In an interview with Yahoo Finance, Corcoran said that one of the best decisions buyers can make today is to purchase a home in an area that's desirable to them. For you, that could mean buying in an area with great schools, lots of restaurants, or nice parks. Or, it could mean buying in an area where you can be close to friends and family.

But ultimately, Corcoran insists, you should base your choice on where you want to be -- not the market you think is the best place to buy in. Going that route could ultimately make you a lot happier with your decision.

Don't approach buying a home like an investor

You'll often hear that a home can be a solid investment. That's not false. But unless you're in the business of investing in real estate, you shouldn't look at your home as an investment -- meaning, your goal shouldn't be to secure the most financial upside. It may be that buying in one neighborhood makes it less likely that you'll one day sell your home at a premium. But if that's the neighborhood you want to be in, buy there.

Plus, if you'll be sharing your house with other people, such as a spouse and kids, it's important to buy in an area that suits everyone's needs. Focus more on that, and less so on how much you might sell your home for down the line.

Advice to take to heart

Buying a home means making a number of important decisions. And there are different factors you'll need to consider in the course of your home purchase, including affordability and access to jobs.

But rather than stress yourself out over buying a home in the right market and at the right price, focus on buying a home whose mortgage you can swing in an area you want to live in, and that your family will want to live in, too. It's okay to hope that your home eventually turns into a great investment. But your goal should be to set yourself and your family up with a comfortable living space in an area you're happy with.

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