Would you buy in cash now?

[Anonymous]

House was listed at $900K a few weeks ago. Offer accepted at $1M. Can still walk away. Would you buy it if wait for a market correction/better value? 2100sf in a high demand walkable area with good schools (not in DC). Worried that as rates increase I will not recoup. Cash purchase, so closing costs are just title insurance and title agency fee.

[Anonymous]

Why did you offer over ask?

[Anonymous]

One thing I didn’t know existed until I read dcum is people who bid on a house and THEN figure out if they want to buy it.

OP instead of trying to figure out what interest rates are going to do, figure out what went wrong in your brain that you decided to not figure this out until you were under contract.

It does make me more sympathetic to sellers with draconian earnest money and closing requirements to know that whackadoos like OP really are out there.

[Anonymous]

Anonymous wrote:House was listed at $900K a few weeks ago. Offer accepted at $1M. Can still walk away. Would you buy it if wait for a market correction/better value? 2100sf in a high demand walkable area with good schools (not in DC). Worried that as rates increase I will not recoup. Cash purchase, so closing costs are just title insurance and title agency fee.

Why exactly are you having second thoughts on a house you put an offer in over ask? How much was your good faith deposit?

[Anonymous]

OP. If you need the house, what choice do you have?

In general, if it's cheaper to rent, rent. Otherwise, buy. Every real estate bubble has had a large contingent of "this time it's different" crowd, led by the real estate cartel, cheerleading it. This market too will crash and prices will go down. It shouldn't matter however if you time horizon is over 10 years.

[Anonymous]

Anonymous wrote:One thing I didn’t know existed until I read dcum is people who bid on a house and THEN figure out if they want to buy it.

OP instead of trying to figure out what interest rates are going to do, figure out what went wrong in your brain that you decided to not figure this out until you were under contract.

It does make me more sympathetic to sellers with draconian earnest money and closing requirements to know that whackadoos like OP really are out there.

In commercial real estate this is the norm. Obviously, they only write on properties they think will be good, but during due diligence they actually figure it out. No reason residential real estate cannot be the same.

[Anonymous]

What would happen if you walked away? If it’s a cash offer a couple weeks ago presumably closing is very soon.