Refinance when the time is right.

Isn’t everyone in theory potentially “overpaying” for their house? I bought my house in 2019 and overpaid compared to what people in my neighborhood bought for in 1999. But now I have a lot of equity and should do well in the long term since I plan to live here until my young kids are grown and through college.

In the long run if you can afford your payment and to live there for a decade + then you will not have overpaid. You need a place to live regardless of whether you buy now or later.

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.

We bought a house as an investment property recently that is a terrible short-term investment. We will lose money on it for years in terms of cash flow. But in 5 years it will be worth well more than what we paid for it, and our own mortgage is in such a good place we can afford to take the loss for a while. And we had a personal interest in it that compelled the decision. So, OP, I just remind myself of our reasons and I can live with them because I would make the same choices again and we can afford it. If that's true for you, that's all that matters.

Anonymous wrote:

Anonymous wrote:

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.

don't you end up losing money with all the closing costs? I mean more recently - I'm sure you could make money in 3-4 years but that wasn't always the case

houses in good areas go up a minimum of 2-3% a year normally, so you should never lose money if selling in 3-4 years

That might be an average, but the increases tend to come only during certain periods and tend to be outsized during those periods -- for example, doubling from 2000 to 2006 then stagnating for 13 years.

If you believe that inflation will stay high, it will be worth it if you stay there 10-20 years. Think of it like a premium bond that you have to pay more than face value for because it is paying a higher interest rate - you are paying "more" for the house now because that is the market price based on the market pricing in the opportunity you get as a buyer to own this asset as a hedge to inflation. I'm not an economist to have to basis to say this is actually true of the current market -- but, if it is true, you would not be overpaying.

Anonymous wrote:

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.

don't you end up losing money with all the closing costs? I mean more recently - I'm sure you could make money in 3-4 years but that wasn't always the case

We're about 50-50 over 18-ish years. Still better than renting.

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.

Anonymous wrote:

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.

don't you end up losing money with all the closing costs? I mean more recently - I'm sure you could make money in 3-4 years but that wasn't always the case

houses in good areas go up a minimum of 2-3% a year normally, so you should never lose money if selling in 3-4 years

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.

Anonymous wrote:What does overpay mean? Market dictates the price. But only at that moment. In 6 months things can be different as they were 6 months ago as well. You will pay more in price and interest if you bought my house than i paid 8 years ago. But thats a useless comparison.
Houses and maybe cars are the only dynamically priced items most people encounter (besides uber rides). So its a weird concept to us.

OP here - yeah, I agree that market dictates the price. I just mean I look at similar houses sold just a year ago and feel like I missed out (not to mention the insane increases over the past few years!) It's hard to not think that I'm overpaying because I could have bought it for a lower price just a short time ago. But it is what it is. Part of me has a fear that the market will correct itself drastically some point and this will all been a huge mistake, but hopefully prices continue to go up over time.

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.

don't you end up losing money with all the closing costs? I mean more recently - I'm sure you could make money in 3-4 years but that wasn't always the case

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.

What does overpay mean? Market dictates the price. But only at that moment. In 6 months things can be different as they were 6 months ago as well. You will pay more in price and interest if you bought my house than i paid 8 years ago. But thats a useless comparison.
Houses and maybe cars are the only dynamically priced items most people encounter (besides uber rides). So its a weird concept to us.

I'm trying to buy a house and feel like I will be overpaying on anything I buy (even compared to the last 6-12 months, seems like prices are higher). I think I'm OK with that as long it feels affordable. I plan on being in my house for at least the next 10-20 years hopefully, so down the road I don't think it will be a big deal.

Has anyone felt like they overpaid but justified in that way? I'm buying a house because I want a house, and I want to enjoy living in it. The financials come second for me (again, as long as I'm not stretching myself).