Monday, September 19, 2005

Oh, the humanity of it all...

I made an offer on that apartment, but someone had snuck in with a full-price offer right before me and the seller accepted it. There may yet be a chance that the other offer could fall through, as the broker thought there might be some issues with the buyer's finances and ability to get past the coop board. That could work out well for me, because the seller is in a hurry and I could get a better price as a backup candidate after it's been off the market.
Of course I am very disappointed but this was an interesting experience overall. I got a better idea of the kind of traffic openhouses are getting (mediocre, which bodes well for me) and I was forced to really nail down my finances and what kind of mortgage rate I'd be likely to get, which was actually slightly better than I had thought. I also went to some other openhouses over the weekend to get more of a sense of what is out there.
I may have let one get away, but I feel like I did my due diligence and didn't allow myself to rush into something without all the details I needed. Next time, I'll be even more ready to go for the gusto!


Anonymous said...

I've read your recent posts and honestly I'm having a hard time understanding why you want to move, when you are renting what sounds like a nice place for only $850.

If I had the choice between renting for $850/month, or making a mortgage payment of twice that, along with taxes/insurance/maintenance, and the depletion of my savings in order to make a down payment, it would be an easy decision for me.

There may be other reasons to want to buy a house (besides financial), but from a pure numbers standpoint I don't see how it makes sense in your case.

Good luck with whatever you decide.

Madame X said...

I do plan to be very picky about buying. It's really a toss-up as to whether renting or buying will leave me better off financially 5 to 10 years from now-- it depends on factors I can't control or really predict. I do believe that long term, buying is the right thing to do, even if my monthly costs double. (and I mean my total monthly costs are double my rent, with taxes and maintenance included, not just the mortgage.)
But also, I bid on this particular place because it had some substantial advantages over my current place. Outdoor space, free laundry, storage space, more windows, working fireplace, etc. I thought it was likely to hold its value better and was worth the risk. Unfortunately, someone else thought so too!

Anonymous said...

Interest rates are still very low. Let's say prices go down, interest rates will probably be high, so the cost of the mortgage might actually end up being the same, except the payment goes to the bank instead of the seller.

What areas in Brooklyn are you considering? A friend of mine purchased a park slope apartment this year for 107k, it's about 270 sq ft. Deals are definitely out there.

Anonymous said...

I'd consider it God/luck/fate (whatever you want to call it) and just accept that it was "just not for you". Something even better will come along -- I know it will.

Madame X said...

I do think it was fate. And some good things came out of it-- I got off my butt and called a mortgage broker, and I found $5 on the ground outside one of the other open houses that I went to in my sudden rush of comparison shopping!