Hello Friends, We were actively looking for house in bay area since last june but did not like any house as per our requirements. Finally I liked one house and our offer got accepted and gave earnest money just before the recent stock market crash three weeks back. This house was in market for 2 weeks and we got it may be 50k / 100k less than recent comps from last month. Since then I have been seeing more cooling down in the market and getting cold feet. Our kid will be starting school this year so timing is important. This is non contingent offer. So confused on what to do, if we back off we will loose our earnest money, not sure if we will find a house according to our liking later, not sure if market will go up after we forfeit this one, so many unknown. What a luck :( More info: This would be our second hose, the shift is mainly for school as the current schools are not good and private school expanses for two kids would be $500k, may be more with inflation. TC: 450k
We were in a similar situation with a home that was ok but good enough for us about 4 weeks ago. Also non contingent offer accepted. We decided to back out but got a real estate attorney to help us with the cancellation. He got our earnest money deposit back due to some technicalities that the seller side failed to do during the acceptance of the contract. Dm me if you want a referral to this attorney. He’s a fucking badass.
If you can afford it and have stable jobs you will be fine. Make sure to have 1-2 yrs cash saved just in case
There’s no loss if you’re planning to live there awhile and it meets all your requirements and is affordable. The market is going to recover.
It meets most of our requirements. Bay area is pretty expensive :)
Market is clearly slowing down.. it depends on how much you bid shd for what house. Dm me if you want, I can give my perspective
There are lot of buyers on edge like you. So once the prices stabilze at a good support all these buyers will jump in. Also unless everyone in tech start to lose jobs unlikely that prices will drop a lot.
if meta started to lay off people bay area home price will drop another 10%
Your home value will fluctuate constantly while you own it. The value of it when you Buy/Sell is all that matters as far as Price. Would you rather risk finding No Home or having a sure thing and perhaps overpaying a bit now? With a family, stability and certainty of your dwelling situation may be more important.
Go ahead and buy the house; you need to live somewhere and your child is starting school. If you are going to be in the house from 3-5 years you will be fine.
There are always homes in the market. You will get something at 30% discount in Nov/ Dec this year. So bail out and find a way to get your deposit back.
It's not easy to find a house you like, can afford, and have the offer accepted. You have been looking, so you should know how challenging it is to get the stars aligned. Sure, if you wait you may pay a lower house price, but likely with a higher interest rate. It might just be a wash. Is that really worth the whole hassle of disputing to get earnest money back + keep looking again?! If I were you, I would stick with it (unless you don't like the house).
Thanks @nbggd mostly thinking in the same line.
It really depends on area, house price, earnest money..... If it's your first home then just buy instead of paying rent.
Its my second home, shift is mainly for school.