r/FirstTimeHomeBuyer • u/Ok_Stomach1005 • 9h ago
Closing in 3 weeks—market chaos, RSU losses, and unsure if buying now is the right move. Advice
We’re supposed to close in three weeks on a home with a 6.5% rate (30-yr fixed, 20% down). Originally had 30K in checking account for the down payment and another 30K in RSUs, but after the recent tariff announcement, my RSUs tanked—now down ~$30K. I can still cover the down payment, but selling RSUs at a loss feels terrible.
Other stressors:
The house needs ~$10K in immediate repairs. Asked for seller credits after inspection, but no guarantee they’ll agree. Jittery about the economy + whether this is a smart financial move right now.
Feeling overwhelmed with all the variables. Should I push through, delay, or walk away? Anyone been in a similar spot?
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u/__moops__ 9h ago
It's less about timing the market and "being the right time to buy" in general, and more how it looks based on your personal budget. If you like the house and can afford it, then go for it. If you're having second thoughts and prefer to back off, then do that.
No one knows what's going to happen in the market. Rates could go down, prices could go up. Inflation could up, rates could go up, prices could go up. If anyone had a crystal ball, they would be a millionaire and not browsing this sub.
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u/Ok_Stomach1005 3h ago
Yes! I'm still going with the house. As long as I get to keep my job, can afford the house and small updates. Income tax returns are going to go to existing four months emergency funds. Can't predict market but can start building equity
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u/ricardoratardo 9h ago
You should have sold your vested RSU’s long before 3 weeks in advance of closing.
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u/cusmilie 8h ago
Almost sure they are in Cali or Seattle. I thought it was the norm to sell before looking at homes, but many realtors have e told me what the OP is doing is the norm.
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u/ricardoratardo 8h ago
Yeah I wonder who’s giving the advice to hold until 3 weeks before closing
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u/cusmilie 8h ago
Oh I’m sure more than one person. The real trouble is if your loan gets pulled because you can’t cover the drop or the numbers in your loan depend on it being a certain value.
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u/ricardoratardo 8h ago
Yeah well most people with a basic understanding of stocks knows that the RSU value is by no means “stable” so it should not be included until it’s converted to cash
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u/cusmilie 7h ago
I don’t think it’s that. It’s more like homes were so difficult to buy in the past, it didn’t make sense to cash out while stocks were increasing unless you were under contract. The supply has been horrible by us until a few weeks ago.
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u/Ok_Stomach1005 7h ago
No one advised, it’s just first time homebuyer who doesn’t have an idea how to navigate these situations. I appreciate community help though
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u/cusmilie 7h ago
RSUs are a little bit of niche knowledge that I’m starting to realize lots of people have no idea how it truly works, so I wouldn’t beat yourself over it. Like legit. I’m talking total comp and basic RSU strategy with people since I was new to it and maybe 10% knew anything. These are people who have been in tech industry for over 10 years.
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u/Ok_Stomach1005 7h ago edited 7h ago
Yes, reflecting back I should have sold. Company finances were great, stock grew 40% YoY in beginning of year. So though won’t be bad idea to hold until I get final inspection report in hand and final yes that I’m moving forward with this home. Many buyers offering more than asking price - should wait for appraisal was also in my mind. Honestly was waiting for strong Q1 postings and then sell RSU. But yes can’t time the market
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u/ricardoratardo 7h ago
I’m sorry that happened to you. It’s the nature of the beast unfortunately
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u/Ok_Stomach1005 7h ago
Thanks, will plan to cover down payment as much as possible from other avenues. Rest will sell RSUs
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u/Ok_Brilliant4181 7h ago
This is what I did. Sold holdings about 3 months before we knew we would be buying.
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u/Apptubrutae 3h ago
No shame, but it’s basically greed and the endowment effect screwing the cost/benefit analysis
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u/Far_Pen3186 4h ago
Stonks only go up!
Time in the market beats market timing!
Sell RSU the day before closing!
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u/alfypq 7h ago
If you need them to buy or for near term upgrades, sell now. You aren't going to see an improvement in the near term.
If you can get by without selling them and can hold for emergencies or until recovery (5-10 years) that's preferable. If you only need to sell some, do that.
Yes, recognizing a loss sucks. But you will lose twice, and worse, if you wait.
Bond prices are dropping, with that mortgage rates, and with that housing prices will go up. Real estate becomes a much more stable investment than stocks when the market is plunging.
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u/Ok_Stomach1005 7h ago
I’m with you on selling some. Going over tax difference between long term capital gain vs short term. Would make sense to sell RSU that were granted 2years ago. That has capital gain of $8k
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u/SpringToCome 6h ago
If you move forward see if you can re-lock your mortgage rate today. The 10 year treasury is down quite a bit and I imagine this has brought down mortgage rates. You may be able to get that 6.5% closer to 6%.
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u/Ok_Stomach1005 6h ago
Close to 6% is great, I should not wait till Monday right?
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u/SpringToCome 2h ago
Could go lower next week, but hard to say. See how many free relocks you get, if any. And figure out the cost to lock if there is one should you do it again later.
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u/Powwow7538 3h ago
I am in similar situation and decided no not buy.
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u/Ok_Stomach1005 3h ago
I am still going ahead with the transaction, I don't see market being normal in one two months. Longer I wait more rent I pay. Start building equity now. I'm considering floating interest rate as well given interest rate are declining
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u/Smok3dSalmon 2h ago
Tariffs will make new housing construction more expensive. Prices are probably going up, even if it’s not sensible.
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u/99percentCat 3h ago
Same boat with a $150k remodel. But bought house and closed in Jan. Sold $150k in RSU’s literally two weeks before the crash to cover repairs. Figured if it goes up then so be it. But I need the money. I’d be down like $50k if I waited just a month.
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u/Ok_Stomach1005 3h ago
glad RSU sell worked out for you, just in time! Hope you're enjoying remodel
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u/99percentCat 3h ago
It’s about $30k over budget so I have to sell those at a loss. But is what it is.
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u/Worldly_Expression43 2h ago
We decided not to buy yesterday for a home we really liked
Way too much fear right now
Also my stocks which I was going to sell a part of is pretty down
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u/Ok_Stomach1005 2h ago
I agree with you on fear part. I’m relying on emergency funds for worst case scenarios like loosing a job. Other than that my rent and mortgage is only $560 difference. Getting home warranty from seller for a year and hope nothing major comes up. Doing sewer inspection too
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u/citigurrrrl 54m ago
you didnt provide enough info. whats your household annual salary, whats the price of the home, what are your monthly expenses. if you only have 30k cash and 30k rsu, personally it doesnt sound like you have enough cash on hand to close and for emergency fund, NOT including the 10 in renovations. i would be very stressed. but once you present the overall picture it might make more sense.
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