8 years later it happened: we bought a home

[LongTimeListener]

Hello Piggs,

Perhaps the all too familiar story – been lurking for a long time, finally signed escrow papers this week!

Our experience: We first started looking in 2004. Back then, it was a matter of “going with the flow” since we were getting constantly bombarded with news from our friends, neighbors, and relatives, about purchasing a home with little or zero down-payment, and the accompanying encouragement to not be left behind renting when we could be living the American dream. A couple of visits to two lender’s offices, for financing products available to us, quickly convinced us that the market conditions were not right for us. We were getting insane financing pre-qualifications for amounts many times what we were earning; also, homes in our now inflated price range were being literally snapped up by the competing buyers. So, we decided to wait.

A couple of years later, in late 2006, with better jobs and nothing but “good news” from the RE market, we decided to have a go at it again. This time, the lenders were not holding back at all – basically, it was a “don’t worry, we’ll qualify you, we’ll get docs later” environment from the major banks and Countrywide. Again, the idea was that we would be missing out if we didn’t buy and this time, it really was the right time to buy…we should’ve known better. Anyway, looking for the right home at the right price, the ratio of “impending doom” vs the NRA news began to change in favor of not buying a home (this is near September 2006) and, by the time we had declared a winner loan provider, we decide to once again, wait for the right time.

Fast forward to 2008, I still have a job, and RE prices are plummeting, we begin to look for an opportunity. After a few months looking for the right home, and finding it, the layoffs begin at my place of employment – oh, oh…time to hit the brakes again.

Now, in late 2011, with employment feeling a bit more solid, with the available economic indicators pointing North, with the record low interest rates, and the fact that in our price range, the mortgage payment would be similar to our current rental rate, we got serious about looking for a home. One thing became apparent immediately after we started looking: it may be a “buyer’s market” officially, but competition is just as heavy as it was in 2006. Many of the property showings that we went to, had offers being presented basically on the spot. Many of our offers became “back up offers” on short sales because we were too late to in at the front of the line. The properties that were sitting for relatively longer periods of time had definite issues with them – illegal additions, unpermitted work, etc. Also, the pickings were slim. Inventory would dry up every other week (no new listings in our area of interest).

We finally got an offer accepted on a short-sale which had its previous accepted offer fall through from another buyer.

We want to thank Rich Toscano and all the knowledgeable people who make this site such a relevant source of information. The information gathered from here over the years, coupled with our “on the field” experiences definitely made us more robust/prepared buyers. Whether this is the right time to buy – time will tell, but we won’t be looking back too much.

Thank you all!

[scaredyclassic]

8 years goes by pretty fast

[sdrealtor]

And certainly worth the wait in this case.

Congrats!

[briansd1]

Congrats! I’m sure you’ll enjoy much more satisfaction and pride of ownership than people who bought into the mania.

[Bubblesitter]

Congrats LTL!
I too was a bubblesitter who waited out the bubble, i bought a couple years ago now and am thoroughly enjoying homeownership. My wife is alot happier now with gardening activiies and home decor projects, as I am too with my various home projects and man-cave buildout still in process

Bubblesitter

[5yes]

Congrats! I hope you enjoy your new house!

[protorio]

Congratulations! Its amazing how so many of us had the *exact* same experiences. And read the tea leaves correctly…

[lpjohnso]

Congratulations! We just bought too! Absolutely no regrets!

[CafeMoto]

happy for you too. I started to feel I would never get into ownership. Smart choices are key in life. congrats

[CA renter]

Timing is everything…

Congratulations on your new home! 🙂

Though renting is perfectly fine, and especially smart during the bubble years, it’s nice to have more “ownership” in your home and community.

Enjoy your new home!

[svelte]

[quote=lpjohnso]Congratulations! We just bought too! Absolutely no regrets![/quote]

hey lp, i remember the area where you bought…how is the new homestead? 🙂

[Jazzman]

Congratulations! We finally bought after eight years as well, but not in California which is still such a challenge. Prices seem to be where they were when we started looking, which was a shock then so nothing really changed in our view. We rather begrudgingly wasted eight years waiting, due to others’ greed and stupidity. Such is life, and we accept the Great Recession was (is) a once in a lifetime event.

After a lot of soul searching, and with probably only another 10-15 healthy years ahead of us, the price to pay to live here just didn’t add up. It’s a personal/cultural thing. I’m from the UK and my wife from Taiwan and we’re both well traveled, so our outlook is going to be different. For us France still remains one of the most extraordinary place in the world and offers a life style second to none. Its rich cultural heritage and emphasis on living is a huge lure so we will be spending much of the year there, where wonderful old manors, chateaux etc can be bought for less than a SFH in established neighborhoods in CA. Maui will become home in a few days time for residence and tax purposes, and of course being one of the most beautiful places in the world, is in our view more deserving of the premium you’d expect pay, which actually turned out to be better value. Two wonderful homes in two top destinations for the price of one in California was a no brainer.

Please forgive me for highjacking your post, but I thought it might offer a contrasting story, but one which also ends happily. I hope you enjoy your new home.

Big thanks go to Rich and many of the other long term posters who have contributed some great insights, and helped me enormously. The tenor seems to have changed a little from the old days (I was qwerty007 then), but that’s understandable.

[bearishgurl]

Jazzman, the coming “retirement” you have planned for yourselves sounds absolutely extraordinary!

[briansd1]

[quote=Jazzman]For us France still remains one of the most extraordinary place in the world and offers a life style second to none. Its rich cultural heritage and emphasis on living is a huge lure so we will be spending much of the year there, where wonderful old manors, chateaux etc can be bought for less than a SFH in established neighborhoods in CA.
[/quote]

France is a wonderful retirement country. It’s a country rich with culture and beauty; and if you don’t flock to tourist areas such a Provence, you can buy something very affordable.

If you don’t speak French already, then learning French is good brain exercise to prevent Alzheimer’s (chess playing is great too).

[Jazzman]

Brian, I get my senior moments but luckily school boy French is indelibly stamped in there somewhere.

[Author]

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