Cold feet? It’s normal

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Published Date 8/10/2023

Because nothing is guaranteed in home buying until the zaftig soprano sings, it’s not unusual for many buyers to get cold feet at one point.

As Realtor.com’s Daniel Bortz puts it: “Buying a home is a lot like getting married: Your stomach’s all butterflies as you make the offer; then you’re over the moon once it’s accepted. Only then, as you take those slow, winding steps toward the big day (aka closing), completely different butterflies may settle in the pit of your gut: Holy crap, this is a huge commitment. Did I make the right choice?”

A case of cold feet over an impending home purchase is remarkably commonplace, but it doesn’t necessarily mean there’s anything wrong or that proceeding is a bad idea. Odds are that your mind is just reeling with many “what-ifs” — and that can feel downright paralyzing.

Bortz offers ideas on how to silence those questions so that you can make this commitment with no qualms. The first is usually “What if I can’t afford my monthly payments?” If you’re at the top of your budget, it’s a logical question to ask. So sit down with your loan consultant or financial adviser and review the numbers and calculate the total cost of owning the home—not just your mortgage payments but also taxes, utilities, insurance, and any HOA or condominium dues. Then compare that amount to your combined household income.

“As a general rule of thumb, your housing costs should be no more than 28% of your gross income,” says Bortz. “But don’t panic if your ratio is a tad higher; your financial planner may be able to help you create a monthly budget that works for you.”

Afraid you overpaid? Sounds like a scary song lyric, doesn’t it?The first thing to look at is how much competition you had from other buyers. If you were in a bidding situation, it’s likely you had to bid at, or above the listing price to nab the property, but consulted with your agent as to comparable and an anticipated appraisal at that price. And your offer automatically includes an appraisal contingency if you’re borrowing money to buy it, because it’s required by your lender and involves a third-party appraiser assessing the value of the property. If the appraisal doesn’t meet the agreed-to purchase price, your lender will approve a loan only up to what the appraisal indicates—leaving you to decide whether you want to cover the remaining costs out of pocket or walk away from the deal.

Are you afraid you’re going to miss out on another listing while waiting for this one to close? “Ask yourself how happy you are with the home that you’re buying on a scale of 1 to 10,” says an agent Bortz consulted with. “If it’s an 8 or higher, you’re making a good purchase. You can look for a year and never find a 10.”

A valid concern is that the value of the home you’re buying might tank in the near future. While we never know what tomorrow will bring, this is typically a concern only an issue if this home is a mere short-term investment for you — such as in house-flipping. If you plan to own the property for at least five years, you’ll likely live there long enough to regain any equity that you may have lost after purchasing the home.

Lastly, if you uncover more issues during the home inspection than you predicted, remember that you don’t have to tackle all repairs at once. Use your home inspection report to assess what areas of the house require immediate investment and what areas qualify as remodeling projects. Bortz advises that that is the time to consider whether you’re up to the challenge.

Realtor, TBWS

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