Buying A House In This Craziness

[Miraclemomma]

Ugh I was about to sign a contract on a single family home one month before the 2008 crash. A divine miracle intervened and stopped everything and I couldn't purchase. At the time I was devastated, but it turned out to be a blessing in disguise because the prices dropped by $30k 6 months later and I purchased a beautiful condo with parking in DC. My mortgage is now around $840 (not including condo fees).

The said house that I planned to purchase was never sold and the owner rents until this day. The house did appreciate slightly so I don't know if it was a loss or gain for the owner. But I have no regrets on waiting. I hope that you go with your gut and everything falls into place. Weird times we are living in.

[Anonymous]

If you find a house or condo you love, and plan to live in it at least 5 years, you will be fine. We are likely to take a hit with all that is going on, but the fundamental market here in DC is strong and it will come back quickly.

[Anonymous]

Anonymous wrote:Many of the people who are saying not to purchase a home are the same ones who would tell you not to buy stocks right now. Never mind that you may see a very nice discount versus waiting a year or two.

It does take nerves of steel to step up in a challenging time, but those are the times you can also score better prices and over a long-enough time-frame a better investment too.

If that is not enough, think of the outcomes post-virus - more work from home, possibly less travel, desire for space from others. If you can find a single family home you like and that you would enjoy living in, I would still move ahead and just negotiate. A significant reason home prices increased in the early 2000s was a lot of tech money and people sheltering after 9/11. That was a terrorist act in only a few locations. What do you think will happen with a nationwide outbreak? Everyone will be home more and want to enjoy their homes!

But I haven’t noticed any discounts? At most maybe $5-10k.

[Anonymous]

We are closing on a house Monday. Ratified in a crazy market weeks earlier but Id rather have this house for 20 years than live where we are currently living in- smooshed together and no outdoor space for our dog and kid. It works for us mentally, physically, emotionally, and spatially. Financially- maybe not the best decision but only time will tell.

[Anonymous]

I get the perspective of if you plan to stay in the home and have job security to move ahead with purchasing. I just don't want to be the person who is kicking herself because she could have gotten the same house for significantly less had she waited. If I wait a year and get my forever home for 40-50k less, I will automatically like the home better.

[Anonymous]

Anonymous wrote:I get the perspective of if you plan to stay in the home and have job security to move ahead with purchasing. I just don't want to be the person who is kicking herself because she could have gotten the same house for significantly less had she waited. If I wait a year and get my forever home for 40-50k less, I will automatically like the home better.

This assumes: you have a job. Your downpayment hasn't taken a hit. And people aren't holding onto their homes instead of listing them (or even really able to list them). That the quality of the homes being listed are ones that you'd like to live in. Mortgage rates are lower in the future (while low they have been increasing quite a bit because of market volatility). Plus 40-50K less doesn't really change your mortgage by that much.

Now of course if house prices drop hundreds of thousands of dollars. Sure. But unlikely to happen.

If you're in a home now or very comfortable renting, yeah sure by all means wait this out. But there are also forces that in a year from now you have no control over and you might not be happy with the outcome. That's why this situation is tricky. It's very unpredictable.

[Anonymous]

A house on our block went on the market yesterday. Seems like bad timing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I get the perspective of if you plan to stay in the home and have job security to move ahead with purchasing. I just don't want to be the person who is kicking herself because she could have gotten the same house for significantly less had she waited. If I wait a year and get my forever home for 40-50k less, I will automatically like the home better.

This assumes: you have a job. Your downpayment hasn't taken a hit. And people aren't holding onto their homes instead of listing them (or even really able to list them). That the quality of the homes being listed are ones that you'd like to live in. Mortgage rates are lower in the future (while low they have been increasing quite a bit because of market volatility). Plus 40-50K less doesn't really change your mortgage by that much.

Now of course if house prices drop hundreds of thousands of dollars. Sure. But unlikely to happen.

If you're in a home now or very comfortable renting, yeah sure by all means wait this out. But there are also forces that in a year from now you have no control over and you might not be happy with the outcome. That's why this situation is tricky. It's very unpredictable.

All valid points. I am 22 year fed so job security is not an issue. Additionally, my down payment is tucked away comfortably in the bank so it has not been harmed by the stock market. My biggest fear is pressing "go" too soon. I have been stalking Redfin relentlessly all week, and I can't help but notice that price drops are everywhere. It's no longer my imagination that COVID is in fact impacting the housing market.

[Anonymous]

We are house hunting and it's as crazy and competitive as ever - any decent house is going for way above asking, people waiving contingencies, etc.

[Anonymous]

Anonymous wrote:We are house hunting and it's as crazy and competitive as ever - any decent house is going for way above asking, people waiving contingencies, etc.

That you Keri?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are house hunting and it's as crazy and competitive as ever - any decent house is going for way above asking, people waiving contingencies, etc.

That you Keri?

nope

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I get the perspective of if you plan to stay in the home and have job security to move ahead with purchasing. I just don't want to be the person who is kicking herself because she could have gotten the same house for significantly less had she waited. If I wait a year and get my forever home for 40-50k less, I will automatically like the home better.

This assumes: you have a job. Your downpayment hasn't taken a hit. And people aren't holding onto their homes instead of listing them (or even really able to list them). That the quality of the homes being listed are ones that you'd like to live in. Mortgage rates are lower in the future (while low they have been increasing quite a bit because of market volatility). Plus 40-50K less doesn't really change your mortgage by that much.

Now of course if house prices drop hundreds of thousands of dollars. Sure. But unlikely to happen.

If you're in a home now or very comfortable renting, yeah sure by all means wait this out. But there are also forces that in a year from now you have no control over and you might not be happy with the outcome. That's why this situation is tricky. It's very unpredictable.

All valid points. I am 22 year fed so job security is not an issue. Additionally, my down payment is tucked away comfortably in the bank so it has not been harmed by the stock market. My biggest fear is pressing "go" too soon. I have been stalking Redfin relentlessly all week, and I can't help but notice that price drops are everywhere. It's no longer my imagination that COVID is in fact impacting the housing market.

You are 22 and have a down payment for a place in the DMV? How’d you pull that off?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I get the perspective of if you plan to stay in the home and have job security to move ahead with purchasing. I just don't want to be the person who is kicking herself because she could have gotten the same house for significantly less had she waited. If I wait a year and get my forever home for 40-50k less, I will automatically like the home better.

This assumes: you have a job. Your downpayment hasn't taken a hit. And people aren't holding onto their homes instead of listing them (or even really able to list them). That the quality of the homes being listed are ones that you'd like to live in. Mortgage rates are lower in the future (while low they have been increasing quite a bit because of market volatility). Plus 40-50K less doesn't really change your mortgage by that much.

Now of course if house prices drop hundreds of thousands of dollars. Sure. But unlikely to happen.

If you're in a home now or very comfortable renting, yeah sure by all means wait this out. But there are also forces that in a year from now you have no control over and you might not be happy with the outcome. That's why this situation is tricky. It's very unpredictable.

All valid points. I am 22 year fed so job security is not an issue. Additionally, my down payment is tucked away comfortably in the bank so it has not been harmed by the stock market. My biggest fear is pressing "go" too soon. I have been stalking Redfin relentlessly all week, and I can't help but notice that price drops are everywhere. It's no longer my imagination that COVID is in fact impacting the housing market.

You are 22 and have a down payment for a place in the DMV? How’d you pull that off?

22 years in the government--sorry.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I get the perspective of if you plan to stay in the home and have job security to move ahead with purchasing. I just don't want to be the person who is kicking herself because she could have gotten the same house for significantly less had she waited. If I wait a year and get my forever home for 40-50k less, I will automatically like the home better.

This assumes: you have a job. Your downpayment hasn't taken a hit. And people aren't holding onto their homes instead of listing them (or even really able to list them). That the quality of the homes being listed are ones that you'd like to live in. Mortgage rates are lower in the future (while low they have been increasing quite a bit because of market volatility). Plus 40-50K less doesn't really change your mortgage by that much.

Now of course if house prices drop hundreds of thousands of dollars. Sure. But unlikely to happen.

If you're in a home now or very comfortable renting, yeah sure by all means wait this out. But there are also forces that in a year from now you have no control over and you might not be happy with the outcome. That's why this situation is tricky. It's very unpredictable.

All valid points. I am 22 year fed so job security is not an issue. Additionally, my down payment is tucked away comfortably in the bank so it has not been harmed by the stock market. My biggest fear is pressing "go" too soon. I have been stalking Redfin relentlessly all week, and I can't help but notice that price drops are everywhere. It's no longer my imagination that COVID is in fact impacting the housing market.

You are 22 and have a down payment for a place in the DMV? How’d you pull that off?[/quote
I think they are a mid 40s person who has been a fed for 22 years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I get the perspective of if you plan to stay in the home and have job security to move ahead with purchasing. I just don't want to be the person who is kicking herself because she could have gotten the same house for significantly less had she waited. If I wait a year and get my forever home for 40-50k less, I will automatically like the home better.

This assumes: you have a job. Your downpayment hasn't taken a hit. And people aren't holding onto their homes instead of listing them (or even really able to list them). That the quality of the homes being listed are ones that you'd like to live in. Mortgage rates are lower in the future (while low they have been increasing quite a bit because of market volatility). Plus 40-50K less doesn't really change your mortgage by that much.

Now of course if house prices drop hundreds of thousands of dollars. Sure. But unlikely to happen.

If you're in a home now or very comfortable renting, yeah sure by all means wait this out. But there are also forces that in a year from now you have no control over and you might not be happy with the outcome. That's why this situation is tricky. It's very unpredictable.

All valid points. I am 22 year fed so job security is not an issue. Additionally, my down payment is tucked away comfortably in the bank so it has not been harmed by the stock market. My biggest fear is pressing "go" too soon. I have been stalking Redfin relentlessly all week, and I can't help but notice that price drops are everywhere. It's no longer my imagination that COVID is in fact impacting the housing market.

You are 22 and have a down payment for a place in the DMV? How’d you pull that off?[/quote
I think they are a mid 40s person who has been a fed for 22 years.

If you have no pressing need to buy, then don't! There's never going to be a perfect time to pull the trigger because hindsight is 20/20. A lot is up in the air right now so unless you found something you 1000% loved today or tomorrow, then there's no reason not to sit tight.