scorecardReal estate mogul Barbara Corcoran on navigating real estate uncertainty: 'For somebody like me, it's the perfect time to buy.'
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Real estate mogul Barbara Corcoran on navigating real estate uncertainty: 'For somebody like me, it's the perfect time to buy.'

Libertina Brandt   

Real estate mogul Barbara Corcoran on navigating real estate uncertainty: 'For somebody like me, it's the perfect time to buy.'
PolicyPolicy3 min read
Barbara Corcoran

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Barbara Corcoran.

  • Real estate mogul Barbara Corcoran, founder of The Corcoran Group, told Business Insider that the best time to invest in real estate is during uncertain times.
  • However, she warned that in order to recognize a good deal, you have to be knowledgeable about your local market.
  • People often think they want to buy when a market hits "bottom," but since it's hard to tell when the true bottom is reached, she said to think about buying "within the bottom."
  • Visit Business Insider's homepage for more stories.

There are now more than 400,000 coronavirus cases in the US.

As the government cracks down on measures to mitigate the spread of the virus, industries across the country are grappling with an unprecedented downward shift in business, and real estate is one of them.

While many prospective investors are pulling away from the market due to the fear of the unknown, some see a rare opportunity to get into it.

There's always risk when entering the market, especially during an economic downturn. Those who consider investing should make sure they have job security, patience, savings and overall financial health.

"It depends on your appetite for risk," said real estate mogul Barbara Corcoran, founder of The Corcoran Group, in an interview with Business Insider. "For somebody like me, it's the perfect time to buy."

Corcoran added that "when things are uncertain, it's always the best time to buy. Uncertainty brings deals." She added that experienced investors flourish during times like this because they will be out searching for the perfect bargain.

But it's not quite as simple as just looking for a bargain, she added. You have to know the marketplace and know what a good deal like when it emerges in front of you.

Buy 'within the bottom'

Corcoran explained that a lot of people think the time to buy is when the prices are "low," or at their "bottom," but there's a problem with that - nobody actually knows what bottom looks like. You only find out where the bottom was once the market has shot back up.

Alternatively, Corcoran explained, you should think about it as buying "within the bottom," when prices have dropped lower than usual, keeping in mind that the actual bottom is usually only determined after the fact.

If you want a "bargain" or a "sweetheart deal," she added, "you have to really know the marketplace and stay in it." It's not enough to be bargain-oriented.

"Everybody says they love a bargain, but the truth is, the great majority of people who like a bargain don't love being at risk," she said.

Knowing what prices properties are trading for and how fast they are trading in your local marketplace will allow you to realize when you've stumbled into a good deal.

Uncertainty in the marketplace, financial stability, and hands-on knowledge of the local housing market are all key factors that go into making a successful investment, she said.

"And that's the best time to buy real estate, if you really want a bargain," Corcoran said.

Finally, she shared a tip on how to know when you might have found a good deal.

"There's always people in every marketplace who really have to sell," she said, and the best way to indicate who those people are is to look at what has been listed in the last month.

"Why would you list a house in the last month unless you really had to sell?" she said.

Those are the places you'll likely be able to bid low on and get a good deal. But this type of environment is not for everyone.

Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story.

Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.

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