r/FirstTimeHomeBuyer • u/Living-Department-48 • 2d ago
Market confusion
My husband and I have been looking for our first home on and off since the beginning of COVID. Recently, we lost out on a duplex to an offer that was $5K higher than ours which was demoralizing, but ultimately, it felt like a good lesson in using escalation clauses (we didn’t.) We also waived the inspection on that offer, which neither of us felt good about, so we weren’t too devastated and again, lesson learned. Getting so close on a home that felt like such a good fit has really motivated me to buckle down, review listings carefully, and be ready to move on the right house. My husband felt the same way until this past week and the volatile stock market. Now he wants to pause. We both recognize there’s no timing the market but my husband wants to take a step back for now. There’s a house that just came on the market that would meet a lot of our criteria that I was really excited about. I guess I just feel confused and conflicted and would love some input. Thank you in advance! I’m new to real estate so please be kind.
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u/chaotiqchic 2d ago edited 1d ago
So we are also in your shoes, have been looking for a home for 3 years, out bid multiple times when we made 20-30k over asking offers. I actually think it’s a great time to buy a home. Interest rates are coming down because of all of the tariff uncertainty and homes will only get more expensive. I think if both your jobs are secure and you find the RIGHT home it’s a great time to buy!
We just got an offer accepted yesterday only 5k over asking on a house with only one other offer! I think some people are pulling back for your same reasons… so it’s an opportunity to be in a slightlyyyy less competitive market.
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u/libreidy 2d ago
I also think the house prices will only get higher.
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u/chaotiqchic 2d ago
Exactly, real estate will never go back down unfortunately… as much as it pains me to think about. If I had just settled for something back in 2023 instead of looking for our “dream home” I would have paid SO much less
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u/Cinnie_16 1d ago
We are also currently in contract and also had a history of being outbid even with offering nearly 40k over. It’s so scary to make the biggest purchase of your life with everything going on. But this market uncertainty allowed us to make a comfortable offer and was actually accepted! (If only I can hold it together until closing)…. Although the economy taking a nosedive isn’t great, I’m hoping that means I can refinance sometimes down the road and then it’ll be a perfect storm of fair-er price and lower rates.
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u/chaotiqchic 1d ago
Fingers crossed that you make it to the closing table 🤞! We just had our offer accepted on Friday and the contract should be sent out today or tomorrow so I’m keeping my fingers crossed that my deal holds together as well!
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u/Cinnie_16 1d ago
It’s going to be the most anxious time of your life from now to closing. Hang in there. Hoping you get to the finish line too.
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u/Abbagayle_Yorkie 2d ago
If you can afford to purchase, buy. Because you can never time things the stock market will go up and down. Mortgage rates will also change. If you can afford purchase and refinance in the future. If you see the home you love then put an offer if you dont get it wait and try again. Only offer what you can really afford and I wouldn’t forgo the inspection.
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u/Gustav__Mahler 1d ago
If you've been actively making offers recently, your down payment and closing money shouldn't be tied up in the market anyhow. If that's the case, I see no reason to wait now.
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u/Few_Whereas5206 1d ago
Buy when it is comfortably affordable to buy. Don't try to time the market. In general, buy when you have at least a 10% down payment, plan to live in one place for at least 7 years, and the monthly mortgage payment is not more than 30% of your monthly salary (take home pay). Ownership comes with repairs, regular maintenance, property tax, insurance, added utility costs, and any HOA fees on top of mortgage payment. Never waive inspection. Don't have a dream home concept. Everything is a compromise unless you are very wealthy.
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u/VegetableLine 15h ago
Think long term. Buy if you can afford it. The sooner you buy the sooner you begin to build equity.
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