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My husband and I bought a house in December. We had been looking for a while for a home in walking distance to our son’s future elementary school. We love our current house, but we knew eventually we would have to move.
Our son is only 3 years old, so we had plenty of time to find a house. We could have waited literally years to move. But when we found the right house, we jumped on it. And we had to compete hard for it! There were three other offers, and we paid over asking price.
So why did we buy now instead of wait?
There was no doubt we were going to buy eventually, but it was not a step we took without carefully weighing our options. I shared our decision making process below in case our experience is helpful to you.
I ended up being interviewed by the Wall Street Journal about interest rates and the market overall. It’s funny because the article was published in January, by February the buyer sentiment in the market has already changed dramatically with warmer weather and a downward trend in rates. Showings are up and buyers are tired of waiting and ready to move.
Here is how we evaluated the various scenarios of buying now vs waiting.
Scenario 1 : What If Everything Goes Up? Rates go UP and prices go UP
It would cost more to wait. Everything would be more expensive.
Scenario 2 : What If Things are Split? Rates go DOWN and prices go UP
It would cost more to wait. We refinance because rates went down and we have a cheaper mortgage.
Scenario 3 : What If Prices Go Down?
We aren’t moving while our son is in school, and never in the history of real estate in this country have home prices not risen over a 7 year period. So even on the slim chance that they went down in the short term, we’ll be in the house long enough for prices to go up. And we win either way with rates. If rates go down, we refinance. If rates go up, then we’re glad we’re locked at a lower rate.
Here is how the purchase process went.
We had been looking for months. I told my agent network we were looking in this particular neighborhood/school zone, and so we did have get a heads up before this house hit the market. Advance notice was very helpful because we had time to evaluate before it listed, and we were able to move quickly with our offer.
We ending up competing with 3 other offers. The list price was $750,000. We ended up paying $800,000. We had to pay title, waive appraisal, and shorten our closing date to get the house.
A full renovation and addition. Plans, survey, evaluating contractor bids, hiring a contractor, and getting permits all take months to complete. We hope to start actual construction in April.
If you have questions, don’t hesitate to ask. Buying a home is a huge financial and emotional investment, and I’m happy to help.
Buying or Selling in Nashville?
WENDY MONDAY • BROKER
Onward Real Estate
@wendymondaysellingnashville on socials
615.642.1313
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