Rachael Ray: Rachael's Daytime Talkshow

Money-Saving Real Estate Tips

Aired on: July 5, 2010

With families across the country still struggling, is it too soon to get into the housing market? Before you put your money down on a new home or try to sell the one you've got, HGTV Real Estate Intervention's Mike Aubrey offers the tips that could save you thousands of dollars!

Understand the local market. Mike says using emotions to price your home is a complete no-no. It's not about how you feel, it's about the market. "Real estate is local. Find out what the trends are," he says. "Homes that are like your home - what are they selling for? How long are they taking to sell? Are prices going up? Are they going down? Are they flat?"

Consider renting out your house or delaying a move until the market bounces back. "The first thing I say to people when I meet them is if you don't have to sell right now, stay in it!"

First-time buyers will benefit from using a Realtor. "You want to take a gun to a gunfight not a slingshot, no doubt about it. You want somebody who is working on your behalf to get a great deal for you."

Make sure you can afford the mortgage for your dream house. "Live within your means. You don't want to be house-poor," Mike says. "Most financial advisers will tell you that the best thing you can do is about 30 percent of your monthly gross should go toward a house payment."

Don't view your house as a quick investment. "Plan on staying in that house for a protracted period of time. This idea of, 'I'm going to buy a house and I'm going to sell it in a year and I'm going to make a ton of money off it,' - it's not that market anymore!" Mike says. "You need to buy a house that works for your family and your goals down the road. The real estate market waxes and wanes and the only way to sort of take the market out of the picture is own it for a while."

If you just can't afford your dream house, be patient. "I think somewhere along the line people started seeing home ownership as an expectation," he says. "It's not. It's a privilege. Save your money [and then] live the American dream!"