In 2011, I moved to New York City with a backpack and an I-pad from home. By 2015, I had bought my first house. These were not the clearest of times. The housing market was on fire, and I am not sure if I would have bought my first home if I had been here a few years earlier. Still, it was the right decision to buy my first home.
In today’s market, buying a house has become, in many ways, the most difficult financial decision you’ll ever make. It’s a relatively new concept, one that requires a lot of thought, research and advice. Buying a house is no longer a decision you can make with a single phone call, a quick Google search and a quick walk around the neighborhood. The reason it’s so difficult is that house prices have risen so much over the last few years, as have the costs of buying a home. This has left many people wondering if they’ll ever be able to buy a house.
When I was 22, I bought my first house for $245,000. And I had just finished my last year of university. I was in a hurry to buy a place before I graduated, but was nervous about having enough money saved. That year, the average house price in Australia was around $360,000. I was saving around $6,000 a month, so I expected to have enough for a deposit.. Read more about why is it so hard to buy a house 2021 and let us know what you think.
Last June, we had a crazy idea. After almost twenty years of living in the same house, we decided it was time to move. Despite the limited supply and sky-high prices, we promised ourselves to find a new place to stay. With flexible work options, we can finally move to the countryside. After living in the same house for so long, I’m ready to call the new place my home.
At first, it didn’t seem so hard to find a new place. We planned to scour different neighborhoods, find the right one, make an offer and move into our new home.
If only it were that simple! Instead of looking for a new home, we spent countless hours searching for new homes and setting up neighborhood alerts in our desired price range. Once a week we would travel north and west looking for the perfect place to live and come home tired and disappointed.
After nine months we started to get restless and ended up choosing a house we didn’t like. Fortunately, an undisclosed easement allowed us to withdraw from the case. If not for this glitch, we would have bought the wrong house and been unhappy.
Mandatory conditions for seeking accommodation
Our list of must-haves grew and shrank as we bought a house, because what seemed important one day was no longer important the next. Every time we stepped over the threshold, we changed our minds.
But almost buying the wrong house changed everything. Most of all, I realized that I wanted to live in a place full of light. The house we had almost bought was dark and dingy, with small windows and a shady garden. From then on, only houses with large windows and lots of natural light were an option for us.
We also wanted to live nearby. It is easy to find contiguous streets in the city filled with similar houses. We found many small splits in the landscape – small roads with a handful of houses.
While I am ready to leave my current home, I am not ready to give up all the benefits of living here. For example, I like to say hello to my neighbors as we sit on the porch and I like to talk to my friends as we walk through the neighborhood.
Many buyers want a quiet street, away from the main road, but we didn’t want a house on a cul-de-sac. Instead, we tried to find a new house down the street where people could walk their dogs or ride their bikes in front of our house.
Honestly, I was afraid of feeling isolated and alone without the community around us.
We were also unwilling to give up the convenience of living close to the shops. While we want to live outside of the city, we don’t want to drive thirty to forty minutes to run errands or do other necessary things. To decide which houses to visit, we used Google Maps to see how long it would take us to get to hardware stores or gas stations.
In addition to these requirements, we wanted a large, level yard where the kids could play and where my husband and I could spend time. We were also hoping for a spacious kitchen with a gas stove.
The list didn’t seem too long, but we couldn’t find a house that had everything we wanted. Despite a search that lasted almost a year, we still hadn’t found what we were looking for.
Preparing for 2021 offers
In a buyers market, you can make an offer, impose an earnest money clause and wait and see if you can’t buy the house for less. But in this crazy market, realtors have asked sellers to make only the last offer.
That didn’t stop anyone from making an offer. Every house we visited went from active to dormant for a day or two.
To win a house, you had to come to the table with a lot of money. In the beginning, homes sold for $20,000 to $25,000 more than the asking price. But the numbers ended up going from $75,000 to $125,000!
Forget the need for audits or the inclusion of evaluation requirements. All monetary, non-conflicting bids have been winners time and time again. When we made the offer, the buyer’s agent urged us to give up everything.
After a while we decided to abandon our plan. We could not find the right house for the right price.
Not enough time
The new school year starts in a few months, and it takes time to settle into a new home. I told my husband we had two months to find a house or give up the search before the kids started school.
And then, just in time, we found one. It doesn’t have everything we wanted, but it has many features we love!
Once again, we negotiated in the dark. The broker asked for final bids without escalation clauses. So which number should we say?
Throughout the year of searching, we only bid on two homes, and in both cases our agent was almost 99% accurate. She said the first house will sell for $720,000. We bid $725,000 and we won. When we went off market, the house sold for $718,000.
A few months later, we made an offer on another house listed for $730,000, but as soon as we walked in the door, our realtor told us the house would sell for over $800,000. It was sold for $805,000 cash, no strings attached.
So when our realtor said the next house would sell for $700,000, we offered $80,000 more than the listed price. Does that sound crazy? Absolutely.
How do you feel about paying much more than the retail price? Honestly, not that bad. Is this house worth the money we paid? Maybe not, but it’s the best house we’ve found in a year of searching. He has four of the six things we want.
The only thing missing is a large kitchen and a gas system, but we may be able to modify those in the future.
Will I regret buying when the market is high?
But what happens when the market corrects itself? What to do when real estate prices collapse? Won’t I be ashamed that I paid so much for the house? I’ve been asking myself that question a lot lately.
In my case, I don’t think so. We are considering selling our current home as soon as possible. I may be paying an inflated price, but I hope to sell my current house for an inflated price as well. We’ll see how it goes in the near future.A few weeks ago, I wrote about how I was planning on buying my first home in 2021. In that article, I went over how I had decided on a price range for the house based on the average first-time homebuyers income in the area. One thing I failed to mention though, was how I was planning to finance my purchase. My original plan was to piggy-back on my current home loan, but I’m starting to think that might not be the best idea.. Read more about buying a house in 2021 meme and let us know what you think.
Frequently Asked Questions
Is 2021 a good year to buy a house?
There are many upsides to buying a house in 2021, but by that time you may have missed the opportunity to buy a home sooner. In fact, you may have missed out altogether. It’s pretty common knowledge that house prices are going to start rising over the next couple of years, but just how high will they go? Obviously, it’s a question that will be answered by the market itself, but there is one prediction that is likely to be accurate. According to the Cacsi Index, house prices could rise by an average of 25% over the next five years, starting in 2021.
Is house market going down in 2021?
The house buying spree in the US ended in 2017, and it’s not likely to restart in the next few years. It’s a good time to be a homeowner in the US, but a bad time to be a buyer. This is the year house prices are finally going down for good, according to the IMF. They predict that house prices will fall in the U.S. and Britain, and that house prices will continue to fall in the next two years in both Canada and Australia. This has only been confirmed by the IMF to be true in 2011 and again in 2013. The UK market has been predicted to fall by 8% from 2010. It has since fallen by 6% to 2017 and is predicted to fall by another 6% to 2021.
What do I need to know about buying a house in 2021?
As first-time homebuyers, you may not have the same access to information as buyers who’ve made the same purchase before you. In fact, buying a home is even more confusing in the current housing market, with so many variations on the theme. But don’t worry, we’re here to help. Here are a few things to keep in mind, based on our experience and research, that we hope will help you get started. Buying a house in 2021 may not sound like a big deal. But, it is going to be the biggest decision that most people will make in their lifetime— and there are some things that you need to know, to ensure that you don’t make any mistakes.
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