After 5 years of my career, I’m finally ready to buy a home. I have fully liquidated my investment account and have around $188k cash sitting in my bank. I was planning to spend a maximum of $150k in all expenses and have a comfortable 6 months emergency fund ($5k/month expense). That is putting our max budget to $650k based on my math.
We ran into an absolute 5000 sqft dream house yesterday. Everything is so perfect and move in ready. The extra expenses are probably cleaning it, and buy some basic furnitures. It’s $750k, and we are negotiating now trying to get to $710k-$720k (we started at $700k and received a counter offer of $735k). This is really stretching our budget thin. At $710k, the estimated cash needed to close is $152k, and we will have to buy furnitures.
The other house in the same neighborhood is $660k and we are trying to negotiate it down to $600k-$620k. It has the same potential as the first, but it needs so much work because it’s very dated. It’s usable, but we prefer to get some work done before move in because they are harder after moving in like flooring and kitchen. This one will give us a lot of breathing room upfront, but more maintenance moving forward.
Which one should we go with or should we move on?