All Forum Posts by: Deb R.

@Nicole Heasley

Good luck Nicole

@Jonathan Greene

Why do you want me to be panicked so badly?

I agree, I agree, I agree and thanks again.

Hello and thanks Jenny. The deal was good from the start but certain things have changed how all this will play out. We do have a buffer to hold both mortgages for a while but now it will need to be longer. If I get to the point where I have to reduce the price to try and sell I have decided it will be pulled off the market and put up for rent. Do you have a suggestion for when I should set that timeline like end of summer or midsummer? I don't have appraisal as a reason for backing out as it came in above my offer. Bank just came back with some financing stipulations but they don't seem unreasonable.

Thanks Kirk. That is the process I am going through. 

Yes, there has been much hesitation on our part because of many reasons but the first deal was cancelled because of a lawyers suggestion that we should not have followed (this is only the second home we are purchasing so still very green). The second was cancelled because big $ work was found during the inspection that we couldn't get the price reduced to cover. Mostly we really don't like much of what is around the areas we are looking and those are very restricted because my husband wants to be able to drive home for lunch. On top of the crazy seller's market my husband's restriction has really made the selection available limited. Of course I want a deal on top of it all, who doesn't, am I right?! At this point we feel like we are clearer on the idea than we were in the past so that is why we haven't panicked and backed out already. If there wasn't a pandemic causing havoc there would be no question to continue, but here we are and I have to protect the family economy because I am concerned with what can be done with our current house. I've already started plan b to reduce renovations to make sure we have enough cash on hand to get through this period. Our dream of making it move in ready right off the bat seems to be right out the window due to the pandemic causing problems getting help with repairs. I have done a lot of work to make this happen and tried to adjust to the new reality that hasn't fully been realized. I am just trying to get as much information to make sure we are more than likely to come out with our heads attached and figure out what the signs are that we won't. Is that so bad? And basically, we don't have to move we just want to. Thank you for the response, I really appreciate talking through this with someone.

Yes, there has been much hesitation on our part because of many reasons but the first deal was cancelled because of a lawyers suggestion that we should not have followed (this is only the second home we are purchasing so still very green). The second was cancelled because big $ work was found during the inspection that we couldn't get the price reduced to cover. Mostly we really don't like much of what is around the areas we are looking and those are very restricted because my husband wants to be able to drive home for lunch. On top of the crazy seller's market my husband's restriction has really made the selection available limited. Of course I want a deal on top of it all, who doesn't, am I right?! At this point we feel like we are clearer on the idea than we were in the past so that is why we haven't panicked and backed out already. If there wasn't a pandemic causing havoc there would be no question to continue, but here we are and I have to protect the family economy because I am concerned with what can be done with our current house. I've already started plan b to reduce renovations to make sure we have enough cash on hand to get through this period. Our dream of making it move in ready right off the bat seems to be right out the window due to the pandemic causing problems getting help with repairs. I have done a lot of work to make this happen and tried to adjust to the new reality that hasn't fully been realized. I am just trying to get as much information to make sure we are more than likely to come out with our heads attached and figure out what the signs are that we won't. Is that so bad?

@Kirk R.

I didn’t mean to make you sound like a meanie

@Jonathan Greene

The only contingency is getting the loan. We are in underwriting and have been told unlikely that we won’t get it. If current house doesn’t sell or rent when we can finally get out, it would eventually become a problem to carry 2 mortgages plus other costs and neither providing income. Having the house we are buying drop in price after closing, which is April 6, is less of my concern unless it never goes back up. It would sting to know I could’ve bought cheaper but have been at this for more than a year and wonder if there will be a house we want since it has been so hard. It would be easier if we were buying an investment and not a personal house, I would back out and try to buy cheaper. I really wanted to get the equity out of the current house to buy investment properties but can rent if selling at good enough price looks bleak even though we really want to sell.

I don’t understand what you mean when you say, “If the renovations are cosmetic, you can’t do them before you close anyway.” Also, I don’t believe a CCO can apply in our situation. I think I haven’t been clear enough that the purchase is a personal home to get out of current personal home. Current personal home would be sold to buy other properties or backstop we could rent it out if unable to sell.

What I am trying to get a handle on is if we back out will we find something cheaper? If it gets really bad out there it would be nice to have the cash cushion especially if job loss occurs.

Worst case is we go through with the purchase, spend a bunch of money on renovations which leaves us with depleted cash reserves, can’t get current house sold or rented then job loss hits. Am I about right?

Thank you very much for your response @Jonathan Greene

I’ve actually spelled it out a little clearer in my mind but still no closer on decision.

@Kirk R.

So here I am riding my happy bid price cloud. Then comes a pandemic dirtying it up and pushing it down and now you’re kicking me while I’m down. The nerve (imagine cartoon voice saying that, and you’re welcome for the cloud so your foot doesn’t hurt :) ).

Details: I bid $13k lower than asking, which is half what I wanted to drop it because the market here is crazy. I’ve been under contract 2 other times at lower than asking but backed out only for someone else to come in and pay full asking. It has been a struggle to put in lower bids in such a seller’s market but ‘it’s what I am willing to pay’ I keep telling my agent when the seller scoffs at my price. I could back out and watch someone else come in and pay full or at least more than I would’ve but then I’m left in the same predicament, in a house I want out of and no rental property.

Trying to read the tea leaves of this pandemic and the hurt it could bring is hard. I’m just looking for as much information to determine if I need to delay steps in my path to avoid crushing losses or change the path yet again (less willing since I I have done a lot of tweaking to this path). Thanks for the kick, sorry for the prattle, I gotta go ice :)