In escrow and getting really cold feet

[Tyler Condon]

Put in an offer at list price with 3% seller concessions and furniture included. With the concessions I am able to cover closing costs and get a 2 1 buy down. So my monthly payment for the first year is approximately 43% of my gross income. I can rent out the property to cover most of the mortgage some months and more than cover the mortgage other months. I am putting more than I was hoping to put for the down payment. I have 17 days for contingencies. Now on day 8. Cleared inspection with no issues. Will receive the appraisal on Friday. Problem is I feel like pulling out. But I don't want to lose my earnest deposit. I am oscillating between thinking this is just pre game jitters to thinking I should pull out losing my earnest deposit or not. What have other people done in this situation?

[Julien J.]

Quote from @Chris Seveney:

Quote from @Tyler Condon:

Quote from @Julien J.:

@Tyler Condon

1. If you are concerned about losing your earnest $ and truly want to back out, talk to your agent. If no agent, get to know better the contingencies in your contract.

2. Sounds like a good deal, what's holding you back?

I'll find out on Friday if it is indeed a good deal. My idea was that once rates drop and going into spring summer months the market will heat up. So should jump in now to get ahead of competition but then I thought what if rates don't go down. Which put me in a tail spin.

 you are making some pretty significant assumptions, what data are you using to come up with those assumptions? 

Have you analyzed what if rates do not go down? What if you have to drop rents? What if it sits vacant for two months? 

It appears you are basing everything off of "best case scenario". 

Good points there. Make sure the deal works with current rates. If rates drop and its impact on the market is the cherry on top. If it goes sideways, have some buffer, but also, keep in mind REI is a long term game.

Again, your agent, lender, and other industry folks should be able to support their hypothesis on the future in your market.