I’m the CEO of one of the most successful privately held real estate firms in America — these are the 3 things every homebuyer should know now
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Bess Freedman knows a thing or two about real estate. As the CEO of Brown Harris Stevens, Freedman, a former agent, now oversees the operations of roughly 50 offices and more than 2,000 agents, and has helped the firm reportedly reach nearly $9 billion in sales. So we asked the executive what she thinks every new buyer should know. Here are her thoughts:
1. “Interest rates are at historic lows, but mortgages aren’t always easy to get.” Indeed, qualified buyers can find rates under 3% (see the best mortgage rates you might qualify for here), but you may have to jump through some hoops to get that mortgage. “I highly recommend anyone interested in buying get pre-approved before they start their home search,” says Freedman. “In competitive markets, you have to be prepared to move quickly and a pre-approval letter is likely required.” And, she adds, you’ll want to “make sure your finances are in order before applying for a home loan — pay off credit cards, don’t make any major purchases, and be prepared to show debt-to-income ratio statements.” Finally, “if you don’t like the rates your bank is offering, shop around,” Freedman says.
2. “There is such upward pressure on prices now.”
“During the height of Covid-19, we saw people leave places like New York City to buy homes in the suburbs or in South Florida. The markets that were flooded during this time have now dried up in terms of available housing stock,” she explains. “There is such upward pressure on prices right now, and that’s simply a function of supply v. demand.” (Check out today’s mortgage rates here.)
3. “HGTV isn’t real life — there is no such thing as the perfect house.”
Indeed, you likely can’t get every single thing you’ve dreamed of. “Linoleum countertops shouldn’t be a deal breaker, especially if the home you are considering is well priced and inventory is low. You really have to look at the big picture when buying a home. Items like cabinets, fixtures, bathroom flooring and landscaping can all be spruced up over time.” explains Freedman. “If the house is in good condition, and there are no structural or safety issues, then you really have to decide what will make or break your ability to buy.”
