Buyer's remorse

[MW_doc]

We are a physician couple who have prided ourselves on our financial prudence but are worried that we may have done something that has the potential to alter our financial trajectory. We are 9 and 6 years out of training respectively with a combined income of ~500k and a current net worth of about 2.5 million. We have never had any debt, until now.

We have been renting ever since graduation and generally followed the "live like a resident" and bogleheads investing philosophy. We recently started looking for a home now that our child is about to start elementary school. After many months of looking, we finally found the perfect home in a very nice neighborhood with great schools. The list price was 900k. After a brutal bidding war this price got escalated to 1.15 million. We plan to put down about 400-500k and finance the rest. Redfin and Zillow price the home at approximately 950k and we worry that we have grossly overpaid but know for a fact that at least one other buyer was paying the same.

While we're happy that we found the perfect home that we're in love with, paying 250k above list price feels like undoing all of our previous hard work. We always had an option of waiting out the market frenzy but we decided to live by our rules of not trying to time the housing/lending market when our family situation required us to buy a home.

[ACN]

Yes you overpaid. Yes you'll be fine.

[pit.alumni]

The market sets the price, not the seller. It sounds like you have done an amazing job building your net worth in such a short time. As long as you are planning to stay for a while you will be more than fine. You have been living like a resident way to long. The journey is everything.

[Otolith]

You payed more than you wanted for something you want. Don't move for awhile and it wont matter. You are clearly at a point in your life where you should enjoy the fruits of your labor...

I would look at it as you worked hard and developed a financial plan such that you could make this happen.

You should do buyers celebration rather than remorse. Congrats

[Tangler]

Hang in there!

You cannot (almost never) perfectly time markets.

Not stock market Not RE market.

Best to buy a house when it is right.

You did this the right way.

I am glad it stings. Not because I like suffering but because it means you understand $.

Normal to feel as you do.

Stay in the home for > 5 years and it will be fine.

Stay for >10 years and it will be EXCELLENT!

EXCELLENT: It was the right time for you
1. stable life and job
2. Good house for family
3. You have a near 50% down payment
4. You realize debt = risk
5. You are a great saver
6. Outstanding house hold income.

Enjoy life. Move forward.

[SpacemanSpiff12]

Agree with all of the folks above who made excellent points.

I don’t know any homeowners who haven’t had a moment of buyers remorse at some point. Heck, I bought my house four years ago and my home equity has doubled… and I still sometimes wonder why I bought this dumb old house with its drafty windows and ancient plumbing and complicated heating etc etc..

It never ends. Welcome to the club!

[Auric goldfinger]

Twenty years hence you may sell for a loss. A big loss. It happens all the time. So what. Start enjoying the house for what it is- a place to raise a family, a commodity, not an index fund

[dayman]

You don’t mention your goals. But based on the information provided - if you can’t buy a house you love to raise your family, what was the point of all that diligent saving?

[jhwkr542]

The cost of something is whatever someone is willing to pay.

[artemis]

Everyone who buys a house feels buyer’s remorse at some point. And it’s understandable, because even the cheapest house is an expensive purchase. A home is the most expensive thing most people ever buy.

You bought the right house at the right time for the right reasons. The buyer’s remorse will fade, but those three facts will not. Enjoy your new home!

[Zaphod]

We are a physician couple who have prided ourselves on our financial prudence but are worried that we may have done something that has the potential to alter our financial trajectory. We are 9 and 6 years out of training respectively with a combined income of ~500k and a current net worth of about 2.5 million. We have never had any debt, until now.

We have been renting ever since graduation and generally followed the "live like a resident" and bogleheads investing philosophy. We recently started looking for a home now that our child is about to start elementary school. After many months of looking, we finally found the perfect home in a very nice neighborhood with great schools. The list price was 900k. After a brutal bidding war this price got escalated to 1.15 million. We plan to put down about 400-500k and finance the rest. Redfin and Zillow price the home at approximately 950k and we worry that we have grossly overpaid but know for a fact that at least one other buyer was paying the same.

While we're happy that we found the perfect home that we're in love with, paying 250k above list price feels like undoing all of our previous hard work. We always had an option of waiting out the market frenzy but we decided to live by our rules of not trying to time the housing/lending market when our family situation required us to buy a home.

This is why waiting beyond finding stability and know what you want makes no sense. You're either slowly saving it into an account to pay for the down payment, etc...or you pay a monthly mortgage thats maybe higher, all the while just building equity and getting ahead. Its a left pocket to right pocket issue though usually framed as if its something entirely different.

Oh well, its over and there is always buyers remorse, even if you get a great deal.

[Tim]

Mortgage is less than 2x gross. AND your savings rate seems fine AND you found a house you want to make a home with your kid starting school.

Now, tell me what the problem is? I really don't think you need to feel bad because of Redfin or Zillow. Actually, pretty silly.
Congrats

[Tangler]

Yes you overpaid. Yes you'll be fine.

Agree he will be fine.

Overpaid?

I don't think we know that. Zillow is not always perfectly correct.

It was the right house for him and his family. It was the right time for him and his family. He is a great saver.

He had an almost 50% down payment and he has a great income with no other debt.

"Overpaid" is difficult to determine immediately after purchase of a home. Especially if other buyers were also bidding above listing price.

A house is worth what people will pay for it.

I think this house will add value to his life.

How much is it worth to him (and his family) to be in the right house for the next 10-30 years?

Most of us will die with millions.

Finding a stable housing situation after your job is stable is something that makes life easier and better IMO, and is worth pulling the trigger on.

Normal to be nervous (worried) when spending that much money. Sign of maturity.

[Tangler]

Mortgage is less than 2x gross. AND your savings rate seems fine AND you found a house you want to make a home with your kid starting school.

Now, tell me what the problem is? I really don't think you need to feel bad because of Redfin or Zillow. Actually, pretty silly.
Congrats

I had same experience with redfin when I purchased in 2019............seems silly now.

[VentAlarm]

I mean, sounds like you bought a house you’re excited about for a price that you felt was fair and you can comfortably afford. Sounds good to me.