UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: jreg2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127262  
Subject: to buy or not to buy . . . Date: 11/10/2008 6:10 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Back with another question or two. As you may recall, I asked last week about whether to consider a seller's counter offer. As it turns out, we decided to say "no" to the counter offer of $325. Our offer was $300. Now, the seller's realtor has come back saying that she'll give up some of her commission (apparently she's a friend of the home owner) and we can purchase for $310. The assessed value (by the town) is $310. The current list price is $335. Comparables indicate that the price is "in the zone". The realtor's (buyers agent) opinion is that the comparables indicate $315-ish. The house is in the Boston MA suburbs.

New questions:

1) Should we jump in and buy our first house or will prices come down so much over the short term that it's worth giving up on this house and waiting? (Or maybe just staying where we are with our low offer and seeing what happens?)

2) And, to what extent should we factor in possible job loss? I have no reason to think that layoffs are in our future. But as I listen to the news and hear from friends about their companies, it gives me reason to think. Is there any insurance that we can purchase to account for this possibility? We don't plan on purchasing PMI as we have 20% to put down. The State of MA, however, does have some sort of free insurance for those who do have PMI. Should we consider putting less money down?

I know full well that no one has a crystal ball (or at least one that works for this purpose) but since this is all so new to me, I thought I'd ask for input.

We can afford the payments, including taxes and insurance and the repairs that need to be done. We like the house. It has everything inside that we want with one exception and that's central AC. And it is in what we consider to be a nice location. The downsides are that it's a bigger lot size than we'd been looking for but too big is better than too small, right? And the tax implications don't seem to be huge. The only other down side is that the house was originally one story, and an addition was added for a second story. This leaves the house a bit funny looking, not awful at all, but I wonder if a potential buyer will, 10+ years from now, have the same reservation.

Thanks for all advice!
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
Post of the Day:
Value Hounds

Mylan Transitioning from Generics
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement