Close? Or Walk Away?
Here’s what I’m mulling. I promise to think my decision through myself and not rely entirely on this forum. So don’t freak out. That said, I’m genuinely interested in Brownstoner opinions. We signed a contract to buy a brownstone back in June. The sellers have been jerking us around for the last four months, but…
Here’s what I’m mulling. I promise to think my decision through myself and not rely entirely on this forum. So don’t freak out. That said, I’m genuinely interested in Brownstoner opinions.
We signed a contract to buy a brownstone back in June. The sellers have been jerking us around for the last four months, but they’re getting ready to actually set a closing date. (There is a longer story, but the short one is that they discovered they can’t afford to close so we had to set up a short sale. Which takes time.)
Given the state of the economy right this second, we’re having serious second thoughts.
If we want our escrow back we can have it, so we don’t loose much by walking away. What we loose is the time it takes to start over.
Inspecting, negotiating, all that.
We’d be dependent on renters to make our mortgage work, which is a strike against going forward in this economy. Or a strike for it, since apparently everyone will have to rent now?
It is a nice place. We’re kind of happy with the price. Assuming we can find tenants we can make it work.
So seriously, would you close today or wait for the market to tank?
“I don’t think it really matters how the market is doing if the price is reasonable.”
Mrs. Limestone, the problem is the vast majority of people on this blog seem of the opinion prices are falling and will continue to do so. What is “reasonable” today can quite easily be considered “unreasonable” tomorrow.
“I don’t think it really matters how the market is doing if the price is reasonable.”
Mrs. Limestone, the problem is the vast majority of people on this blog seem of the opinion prices are falling and will continue to do so. What is “reasonable” today can quite easily be considered “unreasonable” tomorrow.
I don’t understand how you can loose your money and time? Lose, I understand.
I guess it depends on your motives. If you are annoyed with the sellers, you could certainly screw them over nicely by walking away.
But if you like the house and plan to live in it for quite a long time and feel like you got a good price, then I’d say go forward.
Some anxiety around any event this “big” is normal in any market and its even worse in this economy. But unless you plan on selling in the short term, I don’t think it really matters how the market is doing if the price is reasonable.
From what I see around me, and we are talking about similar neighborhoods here, the market for nice rental apartments in your price range is still strong. Most of the rentals in 2 or 3 family brownstones around here go to 20 and 30-somethings who are either a couple or share the space with roommates. I don’t think you’ll have a problem finding renters.
Secondly, as I’m sure you know, finding the right house is time consuming and fraught with emotion. When you love a house, that can be a pull that’s hard to resist. If this house is THE house for you at this time and place, I say do what you have to do to get the most for your money (roof etc)in terms of negotiation, but take the plunge.
No one really knows what’s going to happen, financially or socially. I disagree with those who think Bed Stuy is going to revert back to the bad old days. This is a different time, different people, different neighborhood. We are all more aware, more active in our community’s fate, less complacent.
I also don’t think we can time the market. If you pass, you might spend another year looking, you might find something better next week. Who knows? I know too many people who missed out on many good things, including houses, because they tried to second, third, fourth guess the future. It sounds as if you are buying a home, not just an investment. If that’s the case, go for it.
$1,250 should be easily doable in Bed Stuy if it’s a typical 800-850 sq. ft apt that is in decent shape. I rented mine out for $1,200 and know I could have gotten $1,300, maybe $1,400. I have a new kitchen & bath in there though..but hardly any closet space
The problem with questions like these is that the answer is inside you, not with us. You seem to have an “I can take it or leave it” attitude about the house. That right there makes me think maybe its not a great idea. If you are going to be spending big money for a house, it better be one that you REALLY WANT, especially in this environment. Normally I’m inclined to say if you think they will actually close, then stay the course. But here, you have to decide how much you really want it. Is it “the house I’ve always wanted,” and a great price to boot? If it’s not, I say get out and find the one that is. And when you do, buy it and don’t worry so much about the price. So many people on this board seem to think of a house as some kind of investment security you could buy or sell on any given day. This is your home and therefore YOUR LIFE — invest in yourself, its always worth it.
Run don’t walk. . .whatever you were going to pay in June, the place is worth a lot less now.
Not anyone’s fault, but times are different.
Wait a while for the financial crisis to sink in and much better deals will come.
If you’re dependent on the renters to make the mortgage work, then you need to determine what rent you can realistically expect to get in this market. You can always rent an apartment out (assuming it isn’t a dungeon) – it’s just a matter of what you get for it. So how optimistic – or pessimistic – were your rent projections when you decided to go ahead with the deal? if they were optimistic, that’s probably a good reason to back out, because rents really can’t go anywhere but down in this market.
I would think the other consideration would be – how much do you love this house? If you’re totally in love with it, I would think that would tilt the scales toward going forward. it could take a long, long time before you find another house you can really connect with.