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Its all about if you happy with the offer and that you can afford it. I think everybody gets cold feet but thats natural. Long as your happy with the decision you've made and trust Realtor. Good Luck
Congrats on your new home purchase! I agree that Verona is a good town and you probably made the right move. But I have to be honest. Your realtor should have provided you all the market comparables first (or you should have done research yourself). Then you always know where your potential offers stand. Now, when there are multiple offers you sometimes have to go higher than you may want to. But I would still always go by the comps and always try to negotiate if at all possible. Check zillow and some other web sites for some basic ideas on the home value.
plus remember, even the buyer's realtors only get paid if the house sells. they are all in this for the business reasons and most of them will reccomend whatever is possible to expedite the purchase!
plus remember, even the buyer's realtors only get paid if the house sells. they are all in this for the business reasons and most of them will reccomend whatever is possible to expedite the purchase!
My buyers agent (and the listing agent) ended up taking a slight cut in commission to bring the price down to the comps (seller didn't have enough cash to bring to closing to sell at a good price).
Regarding comps -- if you can get them from your realtor, that is ideal because they can send you the full GSMLS listing including pictures, room sizes, etc of the sold comps.
She did show me the comps but now that i think about it, she only looked up sold houses of the same style, i.e. split levels, so there weren't that many to compare and i'm not sure why i didn't ask her to look at everything (???). She didn't look at sold comps for everything in the town. i've looked at about 60 homes so far and this does seem like the best deal. Zillow estimate is at 5-6% lower than what we offered.... but with another buyer interested, she thought it best to offer full asking price.
I don't plan on staying in this house for more than 5 years since it is on the small side.
Up until I read this sentence, I was going to tell you to relax, that you may have offered a bit too much for the house but that if your financial position is strong (20% down payment, 12 months of living expenses saved in FDIC insured accounts even after your down payment is made, purchase price of no more than 3x or max 4x your income) and you plan to be in the home a long time (at least 10 years) you should be OK.
However ... if you know you're going to want to sell in 5 years or less ... man alive, why would you even think of buying right now? Five years will go by in a blink, and there's a very good chance you stand to lose money on the purchase/sale of your house. Even if the price held stable over the next 5 years (inflation adjusted), you're looking at 6% less when you go to sell due to transaction costs. How much equity do you think you're going to build up in 5 years, given how much goes to interest in the early years of a mortgage and how house prices stand a good chance of a long, slow slide over the next few years?
It's impossible to know whether you're getting enough of a deal on this house to protect you from some of these very real risks. The old "hurry offer full price there's another offer on the house" trick seems to have been pulled on yet another buyer. You'll have to make your own choice, but at the very least you should insist on a clean inspection with no issues that are going to cost you even more money down the road.
Up until I read this sentence, I was going to tell you to relax, that you may have offered a bit too much for the house but that if your financial position is strong (20% down payment, 12 months of living expenses saved in FDIC insured accounts even after your down payment is made, purchase price of no more than 3x or max 4x your income) and you plan to be in the home a long time (at least 10 years) you should be OK.
However ... if you know you're going to want to sell in 5 years or less ... man alive, why would you even think of buying right now? Five years will go by in a blink, and there's a very good chance you stand to lose money on the purchase/sale of your house. Even if the price held stable over the next 5 years (inflation adjusted), you're looking at 6% less when you go to sell due to transaction costs. How much equity do you think you're going to build up in 5 years, given how much goes to interest in the early years of a mortgage and how house prices stand a good chance of a long, slow slide over the next few years?
The amount he takes out of the principal is about the same as the realtor commission, so his net gain or loss is approximately his down payment plus the increase (or minus the decrease) in value.
The amount he takes out of the principal is about the same as the realtor commission, so his net gain or loss is approximately his down payment plus the increase (or minus the decrease) in value.
Well, exactly. Loss of (downpayment + decrease in value) is serious downside risk, and I see little upside gain in this environment, where you're planning on selling within 5 years.
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