Skip to main content

Buying a house that didn't experience as much price increases in order to avoid price drops as rates go up?

Warning: probably too much FUD.

With all the news about interest rates going up in the coming months, I've started worrying about what that could mean for our current house hunt. In our market, we're looking for houses around 550-600k. But what if we put 20% down on a house, and then home prices drop by 20% after close? I wouldn't exactly be underwater, but it would be as if my down payment disappeared!

It got me wondering if I could somehow avoid the future price drops by finding houses that are already low price due to out of date interiors or something. Like if I buy a <500k home I'd have more spare money for renovations and maybe any price fluctuations post-interest hike won't hurt as bad? I suppose the hole in that line of thinking would be "just because the house is old doesn't mean it didn't also ride the wave of home prices", so maybe we would signing up for a remodel home for without even dodging my original issue?

Tell me I'm dumb or anything that makes me feel better.

Note: We do feel a bit of pressure to move sooner rather than later due to an uptick of shootings in the area that are literally putting bullets in our windows and living room. Much as I'd like to wait and see, I don't think my husband would enjoy the risk of staying.

Edit: Looking in the DMV area, usually in VA

submitted by /u/Oangusa
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/sdz9wu/buying_a_house_that_didnt_experience_as_much/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

How to Avoid Property Scams in Delhi?

Here’s What You Should Know! Commercial Real Estate (Non-Residential) Buying a property in Delhi can be tricky, especially with all the stories about scams and shady deals. If you're in the market, here are some tips to keep yourself safe:Double-check the documents: Always verify ownership and approvals. Don’t just take someone’s word for it—look at the actual papers. Do your homework on prices: Compare similar properties to avoid overpaying. A little research can save you from a bad deal. Work with trustworthy people: Whether it's a seller or an agent, go for someone who's transparent about pricing and the process. If they’re dodging questions, that’s a red flag. Ask for reviews or references: If someone you’re dealing with has a good track record, they won’t hesitate to share testimonials or connect you with previous clients. I’ve noticed that some property services have started focusing on things like verified listings and clear communication, which makes the whole proc...
Post a Comment
Read more