Me and my husband booked a house back in March for 1.3 M in Bay area. We paid the EMD of 30K. Since then the real estate price has dropped and interest rate has increased. Should we let go of 30k and wait for market to cool down further or should we go forward with the purchase. Closing is next month.

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Humm.. Price drop is temp and ll go back up in a couple years.
My opinion is if the PMI is manageable then go for it but then you can refinance when the % goes down

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Thank you !

Agree with C1. If you still want to pull out, a lot of sellers will let you pull out without keeping EMD. Don’t go in with the expectation of losing that money, just ask your agent.

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I would say lets go bcoz even 5% drop is less than that.
Also recession is ahead so prices will go down further

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You may have an opportunity to renegotiate the price based on current appraisal. Your agent is best to ask these types of questions to.

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we make 400 k together

Will you get a similar move-in ready house for >=5% less price now? If yes, it is wise to let the house go. My friend did that in AZ. He lost 15k from the booking but found a house which is 50k less due to the price drop and interest rate hike.

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I doubt prices in the Bay Area will “drop” especially those that are in a good school district. They would probably level off for a bit.

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We made an offer in March and closed in May. The value of the house has appreciated since we bought it. Not sure letting go is a good idea right now

Which area in the bay?

1.3M in Bay Area a stellar deal. I am assuming you’re in west bay, I don’t think the prices will go down by a huge margin that will land you in a profitable situation.

Okay! I change my opinion. San Ramon is far east . You might get a better deal around San Ramon, Walnut Creek and Concord. Don’t get me wrong, but I think you are overpaying even with inflated market.

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I am also in a similar boat, signed contract in March .. interest rate was 4% that time .. closing is next month, we are going ahead and buying… if you can manage monthly payment, then go for it

Thank you 🙏🏽

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