I should warn you before you begin that this one is a long one. . . .
Last week, Dan and I put in an offer on a house. A house that, for all purposes, could be considered our "dream house": right in the heart of the borough, in walking distance to absolutely everything, hardwood floors, enclosed front porch, deck, three bedrooms + two bonus rooms in the basement, two baths, lots of lighting, a good dose of charm, and 2000 square feet. It was really more than we ever dreamed we could get, and thanks to some needed cosmetics and a divorce, it fell amazingly close to our price range. On the same day as my last day at my old job, we met with our Realtor, took a second look at the house, and put in an offer.
For the next 24 hours, we were on a bit of a high of nerves and excitement and anticipation. It really felt that this might be THE house. The sellers came back with a counteroffer--and let us know what their bottom line was--and though we thought it seemed doable, we decided that we'd better take a hard and fast look at the numbers before we made anything official.
I've usually kept a pretty close eye on our budget, but for the last nine months I've been using a budget spreadsheet very similar to
this one to track every bit of our expenses and income so we have a real picture of where our money is going, how much we can really spend, and to keep us focused on saving. These spreadsheets have been a real eye-opener in a lot of ways, and when we sat down to look through them as we were contemplating the offer, they opened our eyes once again. As we started to take a hard look, our feelings of elation and confidence about the house slowly deflated. We realized it was a stretch--too much of a stretch. The higher-than-planned monthly payment combined with all of the work that needed to be done would have just been too much. We realized we might buy the house and then spend our time in it counting every single penny and stressing over every unanticipated expense. It was hard--because the house presented an amazing opportunity to buy our "dream house," one that we suspect might not come again--but we decided to walk away.
I know that, in the end, that was not the house for us. A house that makes us feel knots in the pit of our stomachs about finances before we've even signed a contract is not our house. Still, we feel rather deflated by the whole thing and are now wondering if we can really buy a house at all, and if we should keep moving forward or just put things on hold; whether we are better off just staying put for a while and socking away more money, or if the housing market now presents an opportunity that might not come again, and we'd be foolish to wait. So many unknowns that keep my brain (and my stomach) wrestling and twisting and turning.
Every time we look at the money, I can't help but wonder how other people do it--we are generally pretty conservative when it comes to our finances and have decent (though non-profit) salaries, and even though we live in a relatively expensive area, it's hard not to feel like a bit of a failure sometimes that we can't seem to do something as basic as buying a house. Perhaps our standards are too high (though I feel they are rather modest), or perhaps we just need to buckle down more or get second jobs, or perhaps we just don't know everyone's situation (perhaps they all got big checks from their parents to help with down payments), but it's hard sometimes not to feel that we're coming up short.
One thing I can't help wondering about, though, is at what point you just decide to take a leap of faith. When it comes to many things--and especially to money--I often find it hard to know the line between having faith that things will work out and making a wise, informed decision. We've talked to people who, when they bought their own houses, didn't do any major number crunching or even think things through too carefully, but somehow things worked themselves out and it's turned out great. Of course, there are so many others (mostly the ones you hear about in the headlines) who took that leap, and it ended in disaster. I tend to freak out about making big decisions (especially anything that feels "permanent") and to have a lot of anxiety about money, so I always have to be aware of how those feelings are coming into play. I feel confident that we made the right decision with this house (the numbers really didn't lie in that case), but going forward, I'm not really sure where to draw the line.
And, in general, home buying involves two of my biggest Achilles heels: the unknowns, and the what ifs. We can look at how much house we can afford now, but what if we have kids in the future? How will we pay for both our house payment and the outrageous costs of childcare? What happens if one of us loses a job? What happens if we need major maintenance, or the home inspector misses something big? How much can we anticipate salary increases or career advancements? There is so much that can't be known, and it makes it so hard to make a decision.
In the end, I think we are still going to at least try to keep an eye on things, and keep saving money, and hopefully when something comes along, we'll know if it's right. Despite all my number crunching, I can't tell if I'm being practical or overly cautious (or, even worse, if I'm letting fear paralyze me), if I'm being smart or if I'm being paranoid and cynical, if it really is the case that now is the right time for us or if I'm just letting what I want--rather than what I can really afford--take control of the decision making process. Right now, I have not a clue on all fronts, and all the questions and worries of missed opportunities just won't stop nagging me.