You're watching...
The Corcoran Group founder Barbara Corcoran on calls to eliminate the mortgage deduction and offers tips for those looking to buy or sell a home.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- fighting to -- the mortgage deduction at a time homeownership rates reach a fifteen year low.
For more I'm joined by real estate mogul Barbara quadrant founder of the Corcoran Group welcome back to the show Barbara that have -- Well do you agree with me.
A sort of I agree and that it's wildly unpopular idea that I don't think we'll go anywhere but there's a lot of talk also about people editing at slightly the second homeowners.
Can run very high price home I think that can go over.
But I also think it's -- -- as an incentive for buyers in any market house so.
Because I don't think it's less on the list as to why people buy and it's not it's not Panasonic plus when -- do the math on any given homeowner actually doesn't that.
It's always a little bit less of the benefit than they really perceived TP.
But what about people who are in homes now and want to hold on to them.
Those -- the people we're worried about here you're right to worry about -- and I have to say that these are exactly the people that should be shored up vs broken down and I do wholeheartedly agree that the market has.
Already turned the corner I don't know if you quite went that far but I believe it has filed just while having the momentum I think the -- we -- -- to slam somebody in the head.
Well I -- you to respond to something Paul O'Neill former secretary Treasury Secretary Paul O'Neill said on our show about that he wants to take away out a lot of deductions here's what he said.
Well.
I think fundamental reform of the tax system is what we need to do it needs to entice -- he's been clear -- An obvious to everyone no credit no deduction by unclear how many kids you have I don't care what you want.
A home mortgages that's between you and your family so no -- -- action we the people should not -- so I think anything we should use the tax code to raise money.
Not to re distribute much.
All right so we added to that which I thought was really interesting and something a lot of people are talking about now.
That everybody in every instance when they're buying home.
Should the 20% down -- you agree with that no I don't I mean it's very popular right now that people should be putting a chunk of change on the -- wouldn't buying.
But that eliminates probably 80% -- first time homebuyers.
What happened to the helping hand we always gave them just to get started in the business to get their first home I think that's essential.
And bankers to -- why can't -- for all kinds of products instead just one plain Vanilla mortgage well they do offer.
All kinds of product but why are they so tough.
On qualifying people because everybody is overreacting to the problems we had since some real estate bubble burst.
And now it's so difficult for any average showings but that's what some regulators are suggesting is that we go with the plain Vanilla mortgage that applies to everybody which makes no.
Sense at all because people situations are so very different and I think -- -- I think certainly you know that's something happened anything -- never passes Muster it never really happened to salon brave talk that doesn't amount to anything.
You know I mentioned before that homeownership rates are dropping -- -- there's a big debate in this country right now about the value homeownership isn't a good thing.
Of course it is but it's lost its shine for so many people it used to mean stability hasn't presented that to people in more.
Many people owe more on the mortgage of course you know that and they kids than the home is worth.
But what is happening now is people don't have any shame about saying they prefer to rent it to some flexibility and they feel like that he get in and out easily.
And they really don't want to -- -- house and -- cassette lost confidence in but I still think it's a single best thing to do.
And 80% of -- -- markets across America it's still cheaper alright now.
-- -- -- -- It's not just -- brains and the rents are only getting higher.
Exactly well OK we talked last time you said that you should look -- homes on the market.
That have been there for over six months and at least 25% over what you think you could afford and then go offer what you can afford you still believe and I.
Certainly do this nothing wrong with putting in a -- being the worst happens is you get to know if it's gonna her chick ego and make -- go home crying and I certainly get some -- got to put the offering for you.
But I think all of my -- homes by shopping over what I could afford and putting in -- the -- house that sat on the market before too long.
I wanted to get some -- -- -- viewers love that now people who are what most at risk right now probably sellers still nervous still don't know what to do.
I your tips include don't gut.
Yeah why.
Is you get the money back no reason 100 improvements which you really want to focus on the surface changes that all -- the house.
Make it look a little bit pretty and that's all the she won't get the cash back -- If they don't buy before yourself of course that's approaching mortgages and can't be that certain putting.
You -- -- I thought this was interesting you say good photos sell -- that's so true.
Because what we were looking we spent all -- time looking at the picture yet and it's a new carpet he'll know what you knowing drives -- -- the real -- what does it look like.
How much worked as -- Every when shops for themselves online if you pictures don't look -- nominal.
You're not gonna get -- shopping -- and of course inspections are G when I say that when you say that.
I mean somebody who really knows what they're doing -- When you get -- home inspection before you sell your home.
And you'll be so thankful because you could correct everything wrong as a -- is gonna make you double pay for it when they find out what's wrong.
-- -- I've seen that over and over again now.
Now if you are buying in this market -- the -- early Easter right and it's not you know Placer of course you have to really pay attention to what the motivation to sellers is that seller.
Is rated it already committed to something else of course you could get a Greek deal there.
But -- -- truly motivated they have nowhere to go.
-- a good you still won't get a great deal on that and I think people don't understand your vote you need the facts of the marketplace for example how long -- that house been on the market.
Everyone knows asked that and it's certainly in guidance on enough -- important factor or -- -- what's.
Average per what's selling price in our neighborhood that's a great equalizer and the levels of the house and we'll make sure that you don't know -- -- Innuendo -- in this -- or in foreclosure in that neighborhood right.
You can just count the full closure signs -- -- is more than two -- three plots that market is still falling from them.
And while I know people say they want to wait.
Until the market stabilizes can you actually call it like.
You can't pinpoint where the market bottom is voluntary them a sure sign that the market's turned around is when you get over bidding.
And 25 the fifteen major markets right now -- appreciate it already by up to 15%.
And people are over bidding so really the bottom of the market if you're making me guess I would say those two months ago.
Wow so half of the markets.
We've got to watch him upon markets are already on the rise by a lot 12% plus hearing somebody -- something positive not just a positive tied in how I guess.
Guilty as charged Barbara Corcoran thanks for coming on -- thank you yeah.
