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I'll admit, i didn't do my homework and much of this decision was emotional at the time.
First time home buyer for primary residence. Wanting to buy a house because i expect to stay in the area for a long period of time (5+ years) and my rent is set to increase (1275 to 1425) in the next few months. Would like more space than what we have in our current apartment. I also think that prices in my area will likely not drop in the next year so i was thinking of pulling the trigger sooner than later.
Ended up offering 40k over asking on a 3bed 2 bath (listed as 269k, buying at 309k) due to suggestion from realtor for aggressive initial offer (285k) with 1k escalation clause since wife and I like the house and apparently there were 10 other offers. Inspections waived. 10k earnest money deposit. The roof, water heater, windows, and sewage were replaced/looked at within the last 2 years. kitchen and master bathroom remodeled in the last 5 years. appraisal came back at 310k. FWIW, zestimate is 286k. Mortgage would be 15 year, 2.99%. No HOA fees, total monthly payment would be 2090$ including mortgage and taxes, not including private garbage disposal services and utilities.
We like the house because of the backyard, size (0.41 acres, finished basement of 750 ft + 1920 of other livable sq ft), distance between neighbors. So we got pulled into what the realtor was suggesting at the time. It didn't seem too out of the norm considering all the wild stories of what houses are going for.
Now that the hype has died down a bit, i feel like I'm being too flippant with my money (essentially a new car) and that I'm going to be screwing up my future self. Other houses in my area with similar specs of bed/bath and sq footage are listed at and/or sold for around this much (anywhere from 285k up to 350k) in the past 12 months.
About me: 2nd year attending. went from salary of 195k to 205k. expecting to go up to 215-220k in the next year. I have no student loans, about 4k in cash, 80k from a UTMA account from my parents, 140k combined in 403b/457b, 25k in Roth IRA, and 45k in taxable account. Wife has -30k of student loan debt, salary of about 65k, 15k in 403b, around 2k in cash. No kids yet, probably not for at least 5 years. I save 50% of my gross income.
My question: Should I back out of this deal and wait to see what other houses come up? I'd potentially lose 10k of the earnest deposit but thats not as bad as potentially 74k from down payment and closing costs. Or, am i being too anxious and the numbers are reasonable in the end?
First time home buyer for primary residence. Wanting to buy a house because i expect to stay in the area for a long period of time (5+ years) and my rent is set to increase (1275 to 1425) in the next few months. Would like more space than what we have in our current apartment. I also think that prices in my area will likely not drop in the next year so i was thinking of pulling the trigger sooner than later.
Ended up offering 40k over asking on a 3bed 2 bath (listed as 269k, buying at 309k) due to suggestion from realtor for aggressive initial offer (285k) with 1k escalation clause since wife and I like the house and apparently there were 10 other offers. Inspections waived. 10k earnest money deposit. The roof, water heater, windows, and sewage were replaced/looked at within the last 2 years. kitchen and master bathroom remodeled in the last 5 years. appraisal came back at 310k. FWIW, zestimate is 286k. Mortgage would be 15 year, 2.99%. No HOA fees, total monthly payment would be 2090$ including mortgage and taxes, not including private garbage disposal services and utilities.
We like the house because of the backyard, size (0.41 acres, finished basement of 750 ft + 1920 of other livable sq ft), distance between neighbors. So we got pulled into what the realtor was suggesting at the time. It didn't seem too out of the norm considering all the wild stories of what houses are going for.
Now that the hype has died down a bit, i feel like I'm being too flippant with my money (essentially a new car) and that I'm going to be screwing up my future self. Other houses in my area with similar specs of bed/bath and sq footage are listed at and/or sold for around this much (anywhere from 285k up to 350k) in the past 12 months.
About me: 2nd year attending. went from salary of 195k to 205k. expecting to go up to 215-220k in the next year. I have no student loans, about 4k in cash, 80k from a UTMA account from my parents, 140k combined in 403b/457b, 25k in Roth IRA, and 45k in taxable account. Wife has -30k of student loan debt, salary of about 65k, 15k in 403b, around 2k in cash. No kids yet, probably not for at least 5 years. I save 50% of my gross income.
My question: Should I back out of this deal and wait to see what other houses come up? I'd potentially lose 10k of the earnest deposit but thats not as bad as potentially 74k from down payment and closing costs. Or, am i being too anxious and the numbers are reasonable in the end?
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