Celebrity real estate agent Ryan Serhant joins TheStreet to share his advice for those trying to break into the housing market.
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00:00 So give me some strategies here. I like strategies. All right, given the environment that we're in right now
00:05 Yep with rates with prices. What is a prospective home buyer to do?
00:11 We talked to a lot of buyers who say I'm gonna wait for rates to come down and then I'll buy I don't want to
00:19 Rent anymore. I've been renting for five years ten years
00:21 I want to buy I want to I want to kind of set my boots in the cement and I want to own my own place
00:27 But I gotta wait for rates to come down
00:29 My best advice is to really understand what that means
00:32 Every half a point let's say in interest rate reduction is
00:38 about
00:41 $33 a month for every hundred thousand dollars borrowed
00:45 so, you know if you're borrowing an additional three hundred thousand dollars to get the home that you're gonna be in for five to seven years and
00:53 You're waiting for rates to come down by another half a point you say, you know what?
00:58 I'm gonna wait till it's at six percent instead of six and a half today
01:01 What you're really doing is turning down a dream house getting this off your plate for a hundred bucks a month
01:07 So you need to have a real thought-out conversation with yourself as to what that what that really really means
01:13 My best advice is to understand rates are flexible. The price you pay is not
01:18 Once you close you're closed
01:20 So you marry the house you date the rate. I hate saying that it's so cliche, but it's true. It's true. It's true
01:28 So my best advice is to not wait right because to your point rates do come down at the end of the year
01:34 We're having conversations with sellers right now in all of our markets, you know, we think they should sell now
01:38 September rates could come down but that's also going to be two months before a presidential election
01:44 It's anyone's best guess as to what that's going to mean for purchase power and consumer confidence
01:50 But if rates do come down you're gonna have some seller say, you know what?
01:53 I don't want to negotiate as much as I would have back in May
01:56 So you might pay a little bit more today than you think you're gonna pay but you can always refinance in the fall
02:02 Versus paying a lot more in the fall because then you're gonna try to get done by the end of the year
02:06 You
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