Posted on 03/25/2020 11:27:59 AM PDT by Mariner
I am on the cusp of closing a real estate deal for a new home.
While interest rates remain favorable, I'm looking down and see no floor under the housing market. I'm concerned I'll be paying a mortgage on a house worth far less than I paid at peak.
Considering letting the seller keep the earnest money and bailing out of the deal.
Prudent move?
Have you already peddled the old place?
Depends on the house, location, how much you want it, etc.
If you plan to live in it for a number of years, then the price, even if too high, will eventually come back.
If it’s only an investment, then you might think otherwise.
Hiw much money in escrow? Are you currently renting?
Are you talking about a high priced area that has experienced huge appreciation over the past decade, or a more down to earth location that never had a bubble, in 08 or now? You don’t need to disclose exact location if you’re uncomfortable with that.
I’d say bail if the location is expensive and peaky. I’d say go through with it if the market is stable and affordable. Just my two cents.
Underlying fundamentals are still good and the money is relatively inexpensive. If you like it, close it.
Free real estate advice you receive on the internets is worth what you paid for it.
Disagree completely that RE has no floor. Small blip, perhaps. Temporary though.
Yes, I have sold and received payout on the old place at peak market and did well.
And I could still rejigger the deal to use 0 down VA.
Is the escrow 3k or less? Run dont walk. I would not buy a home now.
Unless this goes on all summer, any contractions in price will reverse themselves pretty quickly as everybody gets back to work.
It’s only $3k in escrow
“Free real estate advice you receive on the internets is worth what you paid for it.”
Same with the financial stuff I see here its a hoot
If you like the property, intend to live there, and can afford to pay the cost of owning it, don’t think of it as an “investment.” It’s NOT an investment; it’s a HOME.
I’d bet that prices will get more reasonable the longer this crunch goes on. I’d further guess that sellers are holding tight on their wish prices for now. Interest rates aren’t going anywhere for the foreseeable future.
Me, I’m waiting until there is a bit more blood in the streets and will then bargain hard for a vacation home.
If you ask a broker, they’ll always say that now (when they get a commission) is always a good time to buy a home.
“Is the escrow 3k or less? Run dont walk. I would not buy a home now.”
Are you in the business?
Wonder how many houses currently under construction are stopped and closing dates pushed back by months.
If you can go zero down VA and conserve your cash... I would stick with your deal.
Theoretically, you could get a better deal mid-chaos... but inventory is still tight and you could get on the wrong side of the money real quick especially if you lose your escrow.
I would stay with it. Interest rates are low now. May go up later. (Or may not.)
But even with low rates, you’ll often pay more in interest than you will for the price of the property. And over the years, you will pay more for maintenance that you will for the property. And then there are taxes, utilities, etc.
Any potential loss pales in comparison to all the other outlays you will have.
Walk away. Prices will probably drop. Lots other closing costs.
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