Overpaying on a house - how are you justifying it?

[Anonymous]

We put in an offer today a bit over what we were comfortable with. We'll see what happens. Most likely we won't get it even though we went higher than we wanted.... It makes me so anxious.

[Anonymous]

I want to trade up into a bigger house but even in my midsize market, prices are just going up despite interest rates hitting 8%. It's a bit depressing even though I'm sitting on a 2.75% and still in a nice area.

Having said that, there is virtue in being patient. Something has to give at some point. Prices can't keep going up forever and interest rates can't keep going up.

[Anonymous]

Anonymous wrote:I want to trade up into a bigger house but even in my midsize market, prices are just going up despite interest rates hitting 8%. It's a bit depressing even though I'm sitting on a 2.75% and still in a nice area.

Having said that, there is virtue in being patient. Something has to give at some point. Prices can't keep going up forever and interest rates can't keep going up.

]

We bit the bullet to forego our 2.5% and get a bigger home with a new rate. The interest rate when we first met with our loan officer, a month ago, was quite different than it was a few days ago when we locked in. They are currently going up and probably wont plateau until the fall. You have to make quick decisions if you want to move.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I want to trade up into a bigger house but even in my midsize market, prices are just going up despite interest rates hitting 8%. It's a bit depressing even though I'm sitting on a 2.75% and still in a nice area.

Having said that, there is virtue in being patient. Something has to give at some point. Prices can't keep going up forever and interest rates can't keep going up.

]

We bit the bullet to forego our 2.5% and get a bigger home with a new rate. The interest rate when we first met with our loan officer, a month ago, was quite different than it was a few days ago when we locked in. They are currently going up and probably wont plateau until the fall. You have to make quick decisions if you want to move.

agree -- i've put in a few offers recently and a month ago i was quoted a much lower interest rate. UGH

[Anonymous]

We needed a place to live.

[Anonymous]

Anonymous wrote:I want to trade up into a bigger house but even in my midsize market, prices are just going up despite interest rates hitting 8%. It's a bit depressing even though I'm sitting on a 2.75% and still in a nice area.

Having said that, there is virtue in being patient. Something has to give at some point. Prices can't keep going up forever and interest rates can't keep going up.

Prices can keep going up forever.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I want to trade up into a bigger house but even in my midsize market, prices are just going up despite interest rates hitting 8%. It's a bit depressing even though I'm sitting on a 2.75% and still in a nice area.

Having said that, there is virtue in being patient. Something has to give at some point. Prices can't keep going up forever and interest rates can't keep going up.

Prices can keep going up forever.

In the long run, yes. But in the short run, they don't. I've studied the real estate market for my city and they do come in cycles. There's never been a crash but there are periods of stagnated prices and a few years of slow declines.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, we are going to be overpaying to get a house. Everything is selling well over with multiple bids so we have to outbid others who are also bidding high. We're justifying it because we hope to be in the house for many years (hopefully at least 20, possibly longer), so the overpayment won't matter in hindsight.

that's not overpaying. that's market price.

Great. Can realtors actually start listing houses at market price then? It's incredibly frustrating as a buyer when 90 percent of homes in a target market sell well over list price.

Or recognize that realtors underprice and shop for houses listed 20% below your budget.

[Anonymous]

Anonymous wrote:We move every 3-4 years, overpaying isn't a huge deal since we won't be living in any specific house for very long. It's almost like high rent but no one complains about our cat.

does someone else pay your closing costs?

[Anonymous]

Anonymous wrote:You can't buy a house through time travel, so I don't understand how buying a house at market price is "overpaying."

If you are only willing to pay 2023 prices then you will not get a house.

Take your emotions out of this. Treat it like an objective financial decision.

+1

[Anonymous]

Anonymous wrote:We put in an offer today a bit over what we were comfortable with. We'll see what happens. Most likely we won't get it even though we went higher than we wanted.... It makes me so anxious.

and we didn't get it anyway. there were 18 offers....

[Anonymous]

Anonymous wrote:

Anonymous wrote:We put in an offer today a bit over what we were comfortable with. We'll see what happens. Most likely we won't get it even though we went higher than we wanted.... It makes me so anxious.

and we didn't get it anyway. there were 18 offers....

What town? Just curious.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We put in an offer today a bit over what we were comfortable with. We'll see what happens. Most likely we won't get it even though we went higher than we wanted.... It makes me so anxious.

and we didn't get it anyway. there were 18 offers....

Sorry to hear this and hope you get something soon.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, we are going to be overpaying to get a house. Everything is selling well over with multiple bids so we have to outbid others who are also bidding high. We're justifying it because we hope to be in the house for many years (hopefully at least 20, possibly longer), so the overpayment won't matter in hindsight.

that's not overpaying. that's market price.

Great. Can realtors actually start listing houses at market price then? It's incredibly frustrating as a buyer when 90 percent of homes in a target market sell well over list price.

Or recognize that realtors underprice and shop for houses listed 20% below your budget.

Correct answer. Acknowledge reality and don’t get frustrated.

[Anonymous]

Felt like I overpaid for a house in 2021 with a 2.75 rate. Now my house is worth probably 500k more at today's rates. It's all relative. But plan on prices going nowhere but up.