In this episode of Money Talks News, the podcast dives into the challenging housing market as Stacy Johnson and Miranda Marquit discuss strategies for buying a home despite high rates and low inventory. They are joined by real estate expert Mindy Jensen from BiggerPockets. Mindy shares insights on preparing finances, creative financing options, and the pitfalls to avoid in such a tight market. The conversation extends to the recent legal changes affecting real estate agent commissions, offering listeners a thorough understanding of the current landscape. Whether you're an eager buyer or a cautious renter, this episode provides valuable advice and perspectives.

00:00 Welcome to Money Talks News: Navigating the Housing Market
00:33 Expert Insights with Mindy Jensen on Real Estate
01:32 The Art of Live-In Flips and Tax Benefits
03:16 Navigating a Tough Market: Strategies and Stories
09:44 Financial Strategies for Buying in a High-Rate Market
10:57 Understanding Mortgage Payments and Home Affordability
14:50 The Rent vs. Buy Debate in Today's Market
18:02 Exploring Alternative Financing and Investment Strategies
19:56 The Risks and Rewards of Margin Loans for Real Estate
23:12 Making Decisions in a Challenging Real Estate Market
24:20 Navigating Real Estate Pricing and Mortgage Payments
26:11 The Art of Negotiation and Seller Financing
32:52 Exploring Mortgage Assumptions and Creative Financing
42:36 Adjustable Rate Mortgages: A Risky Solution?
45:17 The Future of Real Estate Commissions and Buyer's Agents

Existing home sales surged 9.5% in February 2024, the largest increase in a year. Even with the rate of home sales slowing down a bit, they remain relatively strong. With home sales still fairly strong, we're not likely to see prices come down anytime soon. Combine that with relatively high mortgage rates, and it's definitely NOT a buyers market.

But what if you're ready to buy a home anyway? What can you do to best position your finances to get ready to buy a home, no matter what's going on with the market? In this episode we welcome back a friend of the show Mindy Jensen from BiggerPockets to help us sort out how to get the best bang for your homebuying buck.



Remember, even though we sometimes talk about money and specific investments on this show, don't take them as recommendations. Before investing in anything or making any money moves, do your own research and make your own decisions.

You can download the episode wherever you get your podcasts:
Listen on Apple Podcasts
Listen on Google Podcasts
Listen on Spotify

Don't forget to check out our podcast page for more episodes designed to help you make the most of your money.

Why is the housing market so tough for buyers right now?

We start by taking a look at why the housing market is so tough right now—and why prices remain stubbornly high. Some of the reasons that home prices haven't come down as much as we'd like:
There remains a housing shortage of at least 1.5 million homes.
It can be difficult to buy a home on a current income since home prices have far outpaced wage growth in recent years.
Coming up with a down payment can feel challenging in the current climate.

On top of that, there are concerns about how the recent settlement with the National Association of Realtors could impact buyer representation and costs for buyers.

However, some of these pressures might finally help bring home prices down, at least in some markets. Depending on where you hope to buy, you might be able to find lower home prices as you move forward with your homebuying journey.

Tips for preparing your finances for buying a home in any market

Our episode includes helpful information on buying a home, pointing out that it depends on your goals. Trying to time the housing market, especially when you're looking for your primary residence, might not make much sense in the long run.

We reference a past episode featuring Mindy, which offers tips on getting the best homebuying deal possible. But we also talk about some of the realities of getting financing these days.
You don't need to put down 20%, even though that's the conventional wisdom. Indeed, first-time homebuyers often put down 6%, and some conventional programs through Fannie Mae and Freddie Mac allow as little as 3% down. Figuring out how to come up with a down payment is one of the most difficult parts of the process.
Government programs can help you get a lower down payment. We talk about FHA loans and VA loans as ways to get help financing a home with a low down payment.
Another option is to use seller financing. If you can work out a deal with the seller, and they don't need an immediate chunk of cash, you might be able to convince someone to help you with a deal.
Keep your credit score as high as possible and make sure you have a low debt-to-income ratio to increase your chances of being approved at the most competitive rates.
Understand your goals for buying. In some cases, getting a cheap live-in fix and flip, like what Mindy does, can be a way to make the most of your dollars—as long as you have the ability to upgrade the home yourself.

We also spend some time on the rent vs. buy debate. In the end, figuring out why you want to buy is essential to moving forward. Miranda also talks a little bit about how much she likes renting.

Meet this week's guest, Mindy Jensen

Mindy Jensen is a licensed agent in Colorado, and has been buying and selling houses for more than 20 years. She's the Community Manager for BiggerPockets.com, and the host of the BiggerPockets Money Podcast.
Website
Podcast



Don't listen to podcasts?

A podcast is basically a radio show you can listen to anywhere and anytime, either by downloading it to your smartphone, or by listening online. They're awesome for learning stuff and being entertained when you're in the car, doing chores, jogging or riding your bicycle.

You can listen to our latest podcasts here or download them to your phone from any number of places, including Apple, Spotify, RadioPublic, Stitcher and RSS.

If you haven't listened to our podcast yet, give it a try, then subscribe. You'll be glad you did!

About the hosts

Stacy Johnson founded Money Talks News in 1991. He's a CPA, and he has also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.

Miranda Marquit, MBA, is a financial expert, writer and speaker. She's been covering personal finance and investing topics for almost 20 years. When not writing and podcasting, she enjoys travel, reading and the outdoors.

In this episode of Money Talks News, the podcast dives into the challenging housing market as Stacy Johnson and Miranda Marquit discuss strategies for buying a home despite high rates and low inventory. They are joined by real estate expert Mindy Jensen from BiggerPockets. Mindy shares insights on preparing finances, creative financing options, and the pitfalls to avoid in such a tight market. The conversation extends to the recent legal changes affecting real estate agent commissions, offering listeners a thorough understanding of the current landscape. Whether you're an eager buyer or a cautious renter, this episode provides valuable advice and perspectives.
00:00 Welcome to Money Talks News: Navigating the Housing Market 00:33 Expert Insights with Mindy Jensen on Real Estate 01:32 The Art of Live-In Flips and Tax Benefits 03:16 Navigating a Tough Market: Strategies and Stories 09:44 Financial Strategies for Buying in a High-Rate Market 10:57 Understanding Mortgage Payments and Home Affordability 14:50 The Rent vs. Buy Debate in Today's Market 18:02 Exploring Alternative Financing and Investment Strategies 19:56 The Risks and Rewards of Margin Loans for Real Estate 23:12 Making Decisions in a Challenging Real Estate Market 24:20 Navigating Real Estate Pricing and Mortgage Payments 26:11 The Art of Negotiation and Seller Financing 32:52 Exploring Mortgage Assumptions and Creative Financing 42:36 Adjustable Rate Mortgages: A Risky Solution? 45:17 The Future of Real Estate Commissions and Buyer's Agents
<a href="https://cdn.nar.realtor/sites/default/files/documents/ehs-04-2024-overview-2024-05-22.pdf?_gl=1*1a1gv2n*_gcl_au*NTA4NDI1NTkzLjE3MTY5MzMxMDM.">Existing home sales surged 9.5% in February 2024</a>, the largest increase in a year. Even with the rate of home sales slowing down a bit, they remain relatively strong. With home sales still fairly strong, we're not likely to see prices come down anytime soon. Combine that with relatively high mortgage rates, and it's definitely NOT a buyers market.
But what if you're ready to buy a home anyway? What can you do to best position your finances to get ready to buy a home, no matter what's going on with the market? In this episode we welcome back a friend of the show Mindy Jensen from <a href="https://www.biggerpockets.com/">BiggerPockets</a> to help us sort out how to get the best bang for your homebuying buck.

Remember, even though we sometimes talk about money and specific investments on this show, don't take them as recommendations. Before investing in anything or making any money moves, do your own research and make your own decisions.
You can download the episode wherever you get your podcasts:
<ul>
<li>Listen on <a href="https://podcasts.apple.com/us/podcast/money/id1465774878">Apple Podcasts</a></li>
<li>Listen on <a href="https://www.google.com/podcasts?feed=aHR0cHM6Ly9hcGkucG9kY2FjaGUubmV0L3Nob3dzL2ViYzg4ZWYxLTczYmUtNDU4MC1hYmFiLTQ4M2FkYjQ0ZDA5Yy9mZWVk">Google Podcasts</a></li>
<li>Listen on <a href="https://open.spotify.com/show/4XzsoL58984FkzefrRay0c">Spotify</a></li>
</ul>
Don't forget to <a href="https://www.moneytalksnews.com/podcasts/">check out our podcast page</a> for more episodes designed to help you make the most of your money.
Why is the housing market so tough for buyers right now?
We start by taking a look at why the housing market is so tough right now—and why <a href="https://www.moneytalksnews.com/slideshows/places-where-home-prices-doubled-the-fastest/">prices remain stubbornly high</a>. Some of the reasons that home prices haven't come down as much as we'd like:
<ul>
<li>There remains a <a href="https://www.whitehouse.gov/wp-content/uploads/2024/03/ERP-2024-CHAPTER-4.pdf">housing shortage of at least 1.5 million homes</a>.</li>
<li>It can be difficult to buy a home on a current income since home prices have far outpaced wage growth in recent years.</li>
<li>Coming up with a down payment can feel challenging in the current climate.</li>
</ul>
On top of that, there are concerns about how the <a href="https://www.cnn.com/2024/03/15/economy/nar-realtor-commissions-settlement/index.html">recent settlement with the National Association of Realtors</a> could impact buyer representation and costs for buyers.
However, some of these pressures might finally help bring home prices down, at least in some markets. Depending on where you hope to buy, you might be able to <a href="https://www.moneytalksnews.com/slideshows/the-housing-markets-most-likely-to-fall/">find lower home prices</a> as you move forward with your homebuying journey.
Tips for preparing your finances for buying a home in any market
Our episode includes helpful information on buying a home, pointing out that it depends on your goals. Trying to time the housing market, especially when you're looking for your primary residence, might not make much sense in the long run.
We reference a past episode featuring Mindy, which offers t<a href="https://www.moneytalksnews.com/10-insider-tips-for-getting-a-great-deal-on-a-house/">ips on getting the best homebuying deal</a> possible. But we also talk about some of the realities of getting financing these days.
<ul>
<li>You don't need to put down 20%, even though that's the conventional wisdom. Indeed, first-time homebuyers often <a href="https://www.rocketmortgage.com/learn/what-is-the-average-down-payment-on-a-house">put down 6%</a>, and some conventional programs through Fannie Mae and Freddie Mac allow as little as 3% down. Figuring out how to <a href="https://www.moneytalksnews.com/slideshows/how-homebuyers-come-up-with-a-down-payment-per-zillow/">come up with a down payment</a> is one of the most difficult parts of the process.</li>
<li>Government programs can help you get a lower down payment. We talk about FHA loans and VA loans as ways to get help financing a home with a low down payment.</li>
<li>Another option is to use seller financing. If you can work out a deal with the seller, and they don't need an immediate chunk of cash, you might be able to convince someone to help you with a deal.</li>
<li>Keep your <a href="https://www.moneytalksnews.com/how-to-raise-your-credit-score-without-getting-ripped-off/">credit score as high as possible</a> and make sure you have a low debt-to-income ratio to increase your chances of being approved at the most competitive rates.</li>
<li>Understand your goals for buying. In some cases, getting a cheap live-in fix and flip, like what Mindy does, can be a way to make the most of your dollars—as long as you have the ability to upgrade the home yourself.</li>
</ul>
We also spend some time on the rent vs. buy debate. In the end, figuring out why you want to buy is essential to moving forward. Miranda also talks a little bit about <a href="https://www.newsweek.com/vault/mortgages/owning-a-home-vs-renting/">how much she likes renting</a>.
Meet this week's guest, Mindy Jensen
Mindy Jensen is a licensed agent in Colorado, and has been buying and selling houses for more than 20 years. She's the Community Manager for <a href="http://biggerpockets.com/">BiggerPockets.com</a>, and the host of the BiggerPockets Money Podcast.
<ul>
<li><a href="https://www.biggerpockets.com">Website</a></li>
<li><a href="https://www.biggerpockets.com/moneyshow">Podcast</a></li>
</ul>

Don't listen to podcasts?
A podcast is basically a radio show you can listen to anywhere and anytime, either by downloading it to your smartphone, or by listening online. They're awesome for learning stuff and being entertained when you're in the car, doing chores, jogging or riding your bicycle.
You can listen to our latest podcasts <a href="https://www.moneytalksnews.com/podcasts/">here</a> or download them to your phone from any number of places, including <a href="https://podcasts.apple.com/us/podcast/money/id1465774878">Apple</a>, <a href="https://open.spotify.com/show/4XzsoL58984FkzefrRay0c">Spotify</a>, <a href="https://radiopublic.com/money-6rRgm9">RadioPublic</a>, <a href="https://www.stitcher.com/podcast/money-talks-news/money-104">Stitcher</a> and <a href="https://api.podcache.net/shows/ebc88ef1-73be-4580-abab-483adb44d09c/feed">RSS</a>.
If you haven't listened to our podcast yet, give it a try, then subscribe. You'll be glad you did!
About the hosts
Stacy Johnson founded Money Talks News in 1991. He's a CPA, and he has also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.
Miranda Marquit, MBA, is a financial expert, writer and speaker. She's been covering personal finance and investing topics for almost 20 years. When not writing and podcasting, she enjoys travel, reading and the outdoors.

Welcome to Money Talks News: The Podcast, a podcast devoted to everything money: how to get it, how to grow it and how to keep it. From the creators of MoneyTalksNews.com, a leading source of personal finance news and advice since 1991.

Welcome to Money Talks News: The Podcast, a podcast devoted to everything money: how to get it, how to grow it and how to keep it. From the creators of MoneyTalksNews.com, a leading source of personal finance news and advice since 1991.

Money Talks News: The Podcast

3 Tips for Buying a Home When the Market Stinks

https://api.omny.fm/orgs/67ee9ddc-11a3-4cec-841d-ac9a015d5b41/clips/013d43e6-4017-4366-ae2b-b17e01666161/transcript

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