Buying A House In This Craziness

[Anonymous]

We picked a great time to buy our house. We have a ratified contract, appraisal, and interest rate locked. We are about three weeks from closing but are worried about what would happen if a shelter in place order is made. Can we still close? Will we lose our interest rate lock?

[Anonymous]

I would be happy to get out of it. You are going to be sitting on a goose egg for a decade or more before you will dig out of this hole.

[Anonymous]

Anonymous wrote:I would be happy to get out of it. You are going to be sitting on a goose egg for a decade or more before you will dig out of this hole.

Agreed.

[Anonymous]

Not scared of job loss?

[Anonymous]

Can you back out due to an act of God?

[Anonymous]

Be very careful about proceeding. Local real estate lags public REIT markets by several months but prices have already dropped 35%. There is another 2008 style crash headed our way.

[Anonymous]

OP, we are in the same situation. We thought about backing out but our jobs are safe for at least three years and we meant this purchase to be our forever home so even if the housing market tanks it will rebound eventually. The novel part of this disease will end within two years and we won’t be sheltering in place for that whole time. If anything, the market will completely dry up in the area we are buying as many people will hold onto their house and few buyers will buy while they wait this out. Things feel crazy right now but as we learn how to better handle this virus we will adjust to a new normal. These are extraordinary times but we will get through this and the economy will come back.

As for closing, so far things are humming along and it seems like we can close on time with how everything is set up in VA. Some places though things are paused because the courts are closed. Just depends on where you live.

[Anonymous]

Anonymous wrote:OP, we are in the same situation. We thought about backing out but our jobs are safe for at least three years and we meant this purchase to be our forever home so even if the housing market tanks it will rebound eventually. The novel part of this disease will end within two years and we won’t be sheltering in place for that whole time. If anything, the market will completely dry up in the area we are buying as many people will hold onto their house and few buyers will buy while they wait this out. Things feel crazy right now but as we learn how to better handle this virus we will adjust to a new normal. These are extraordinary times but we will get through this and the economy will come back.

As for closing, so far things are humming along and it seems like we can close on time with how everything is set up in VA. Some places though things are paused because the courts are closed. Just depends on where you live.

+1. This is the most reasonable, practical, mature comment I have ready thus far. Yes, life will continue. Adjustment will be required.

[Anonymous]

Anonymous wrote:Can you back out due to an act of God?

Act of God is a fire or a tornado, not a virus caused by humans inability to sit still.

[Anonymous]

Anonymous wrote:We picked a great time to buy our house. We have a ratified contract, appraisal, and interest rate locked. We are about three weeks from closing but are worried about what would happen if a shelter in place order is made. Can we still close? Will we lose our interest rate lock?

If you are in DC area..do not close. You are going to lose 20% value.

[Anonymous]

Anonymous wrote:OP, we are in the same situation. We thought about backing out but our jobs are safe for at least three years and we meant this purchase to be our forever home so even if the housing market tanks it will rebound eventually. The novel part of this disease will end within two years and we won’t be sheltering in place for that whole time. If anything, the market will completely dry up in the area we are buying as many people will hold onto their house and few buyers will buy while they wait this out. Things feel crazy right now but as we learn how to better handle this virus we will adjust to a new normal. These are extraordinary times but we will get through this and the economy will come back.

As for closing, so far things are humming along and it seems like we can close on time with how everything is set up in VA. Some places though things are paused because the courts are closed. Just depends on where you live.

This can change suddenly in a couple of days. 3 weeks is now eternity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would be happy to get out of it. You are going to be sitting on a goose egg for a decade or more before you will dig out of this hole.

Agreed.

+1

[Anonymous]

So is the overall consensus that those of us who were planning to buy should wait? My lease is up in late June and I had planned on giving my two months notice in April. Should I extend the lease for a few months? The month to month increase is extraordinary (103%) so there is no way I can or will go that route.

Additionally, if I stay, should I negotiate the increase my landlord has provided considering that none of the amenities, which are included in the rent, are operational?

[Anonymous]

This situation is unprecedented. Therefore I don’t think anyone can meaningfully predict what’s going to happen next to the real estate market (or anything else). Based on how things have played out in other countries, I think we’ll have a much better sense of the near-term trajectory of this thing within the next 2-4 weeks. In the end, this could end up being just a blip on the radar... or a long-term situation we all need to learn to manage.

Anyhow, for those who haven’t bought yet, my suggestion would be to wait and see for the next few weeks/month. The unknown is stressful, but no harm in waiting a bit. Maybe rent month-to-month if you can. If you’re already under contract and have a “safe” job, I would probably stick with it especially if you’ve put down a large EMD and/or plan to be in the property for a long time. If your job is potentially on the line and your EMD is relatively small, then you might want to reconsider. But for those who can... just wait it out a bit!

[Anonymous]

The world will recover. If you plan to buy a home and live there for 5+ years, then buy.

We will get over this. Value may dip +- 5%, but loom at the market. Things that are being listed now are still getting crazy attention. I had a client put an offer on a new listing this well and did not win. There were six other offers and all contingencies were waived.

3% interest rates provide lots of buying powers. Sure if you over pay for a sfh in a transient school district you may suffer, but look at the trends. Most areas (not condo or th) in the dmv you will be fine and happy you did it.