Well, we made a bid on the house, they counter bid, and now we counter bid again. . . . so we are waiting. Then we get the paper today and see that this house is on the front of the real estate section and they have an open house scheduled for Sunday. Grrrr.
This whole process has really been uncomfortable and a bit difficult for us.
To start with, we are going from not paying any mortgage to paying a fairly large one. It’s not that we can’t afford it, but it will make some significant changes for us.
Next, we obviously want to get the best price we can for the house and not be suckers-this house is pretty expensive for our town. However we also realize that for our town this is a prime piece of real estate, not to mention one of the few that meets all our requirements, and if we bid too low or take too long someone else may easily outbid us. Not to mention that if someone from downstate looking to retire looks at it they would probably pay the asking price without batting an eye. (They think anything 1/4 million or less is a bargain-and on Long Island it would be!)
So with each decision we’ve made, we keep second guessing ourselves. We’ve had to really think and weigh the options. Is the extra space, more charming atmosphere, and closer proximity to things worth the change in lifestyle, larger expenses, and inconvenience and cash outflow of doing such things as repainting the whole house and refinishing the floors.
Although we both think so, we also both have a few reservations, so it makes the second guessing even worse. Should we have just accepted the counter offer instead of bidding them down $5000 more? (well, $3500 because we said to skip the $1500 at closing they offered) Will that $5000 cost us the house because someone else comes in and gives them their price at the open house this weekend? If we lose the house, will we wish that we had spent the additional money? (yes, I know they could come back and say “no” to the counter offer, and then we could go back up to what they asked in the last counter offer again-but they could get a higher bid out of the open house)
Arrrggghhh. I guess you just do the best you can, think things through, and pray.
I bet that they are keeping the ads and open houses going to try to secure a back up offer. With the whole instability in the mortgage market right now, sellers are really nervous. Remember, buyers have the upper hand these days. You’ll be fine!
They also might just like your offer better. Many years ago we lost a house that we bid full price on because another bidder made a cash offer. They bid less than we did, but the seller wanted a fast closing (of course, when we closed on the house we eventually bought, we did it in 15 days. With an FHA mortgage. And the government was closed for three of those 15 days… which tells you how long ago that was).
Hang in there. I truly believe that if it’s meant to work out, it will. At least, that’s what I keep telling myself as people keep looking at my house and not making any offers. Oh, and hey: if it doesn’t work out, wanta buy a house in Buffalo? š
I will be thinking of you, Jenn! I hope it works out in your favor and you guys get this house!!
Good luck it’s beautiful. If you do buy it be sure to have an inspector come in. You may get the price reduced that way and it could save you future headaches. Another issue is an electrician, Be sure to have one check everything (cheaper than a huge bill) before you move in to save you a bundle. My relatives had a huge bill due to some crooks!! It’s cheap to have him come in for about an hour in the long run!! Good luck!! I love it!! Annette
It looks like a lovely house. Just hang in there. Good luck!
Barb C
Funny how things have a way of working out. The house looks lovely-I would love it. Houses built in that era were built to last, and the builders were craftsmen and took pride in their work and used good, solid materials. If the house has been kept up over the years you should not experience problems. New home builders are actually more at risk because of cost cutting measures and no pride invested in the workmanship by the builders(excepting those who build and /or oversee the construction from start to finish and know what they are doing). We will enjoy your adventures in moving and new home set up.
Be sure to have plenty of geust rooms because, I am coming over ha ha just kidding Annette Have a great week!!!
Thanks for all your great tips. I hope your bid goes through and you get your house. Because of reading your blog I called Tyson foods today. I opened a package of Cheese Quesidillas and there was mold. I almost threw them away and then remembered. So, they are sending me a refund for the purchase price. Wow! Thanks!
I’m loving the woodwork! I’ve been wondering how it’s going so thanks for keeping us updated. Hope you get it (if it’s the right thing).
Can you please explain something to me (and your readers). Kindly explain why someone (you) who has a blog dedicated to a ‘frugal philosophy’ and ‘living within your means’ would do something like this, in your own words:
“To start with, we are going from not paying any mortgage to paying a fairly large one. It’s not that we can’t afford it, but it will make some significant changes for us.”
Foreclosures are up 94% in the USA, layoffs are piling up daily, the credit crunch is affecting the global economy, not just USA, you didn’t sell your own home yet nor have you put it on the market, yet you are bidding on a home, which in my opinion is more home than you can chew? Can you just explain this to me? I don’t get it? How do you justify not being in debt and then going into large debt because the house looks nice or whatever? By your own admission, you state that this house is the most expensive in your town?
Why aren’t you content with your 1200 sq ft high ranch?
I’d like you to share with us how you are attempting to accomplish this, your justifications and why you need to upgrade your life?
Yes, the house is beautiful. Have you thought about how older homes need costly repairs? Higher taxes, heating bills and cooling? More furniture requirements? Have you really thought this through and if so, can you share your frugal philosophy with us?
Thank you.
I’m sure my frugal wifey will take the high road in response to this comment, so I will get in here first.
Mr/Ms Anon (go figure) has no idea of our financial situation and yet takes it upon him/herself to pontificate about it.
We do not live underneath a rock – we are fully aware of the current housing/mortgage market…I do not subscribe to this doom and gloom view of the “global economy” – are there problems? Sure.
Were uneducated or arrogant folks sucked into low interest rates and interest-only loans? Sorry to say – but, yes they were and shame on them.
Have we considered the higher costs associated with this new home? Of course we have.
We don’t need to justify our choices to you or anyone else. And How would you base your “opinion” that we are biting off more than we can “chew”?
We have no debt because of the fact that we have made good choices – we have saved for this eventuality – we knew that this would be a “starter” home for our family and moved into it 2+ years ago knowing full well that we would be upgrading at some point in the next 5 or 6 years. We put ourselves into a position where we would be able to make a move on the right place at any time it came open. There was absolutely no admission that this was the most expensive home in our town – it is by far NOT! More than most – yes probably. But again – why would we have to justify this choice to Jenn’s readers? Are you stockholders? We want upgrade to have more space for entertaining and so the kidlets can spread out a bit (and so the Yankee & Jenn have their own bathroom) We can absolutely afford it, we want it and we are responsible adults who are making an informed choice.
Jenn’s frugal philosphy is (and if you read often – you already know) that you save in areas where you can so you can enjoy the things you really want!
Thanks for letting me answer,
The Harley riding (2 of ’em) antique Buick driving (2 of ’em) DH