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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I just bought.  These posts stress me out a little.  I paid premium (over asking), but not absurdity (ie 100+ over asking).  I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also.  The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out.  I think it’s likely our new home could see a small drop in value in the months/ my ears ahead.  But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better.  And I’m at peace with that.  The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc.  no one knows what will happen.  Waiting would have been very difficult for my family so I am glad we didn’t do it.  Only you know what’s right for you and your family OP.[/quote]

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty?  Do your kids not go to college?  Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens?  Is it that bad?

It sounds like you made the best decision for your family.  Rest easy.

This is the way.[/quote]

Yeah I don’t know.  I was underwater in 2008 and the subsequent years.  It was terrible.  Just the fact I couldn’t sell my property.  I had to continue paying a mortgage for a property where I had negative equity.   Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off.  I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check.  I would have liked to move to another city but I couldn’t.  When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck.  Would you suggest someone put down 0% on a house and then take out a home equity loan immediately after closing?  Because that’s essentially what being 100k underwater is like.

Sure, I more than recovered financially, eventually sold my property and I’m doing fine.  But it was a lot of unnecessary stress that could have been avoided had I not bought a home during a home buying frenzy when market fundamentals didn’t make any sense.

[/quote]

[b]You are beating yourself up for not predicting the future?[/b]

Hindsight is 20/20 100% of the time, foresight...not so much.

And I'm glad you've more than recovered.  That's exactly the point.  Nobody said it would be pleasant or an experience somebody would want.  But it did not end you.  Here you are.[/quote]

Of course not.  But do I think it’s a good idea for a first time home buyer to be escalating way over the listing price and getting involved in a bidding war right now?  No.  So much of the real estate activity in recent months seems emotional and based on FOMO.  The market just doesn’t make any sense and the Fed has a giant MBS portfolio to unwind.  No one knows what will happen, but I can’t help but think a first time home buyer should sit back and let the dust settle.  [/quote]

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