Did I Make a Huge Mistake Buying My NYC Co-Op? Here’s My Dilemma

A Reddit user bought a co-op in New York City recently. He financed it with a 10-year interest-only loan at 5%. Although his monthly costs are lower than what he was paying when he was renting, he is still feeling buyer’s remorse — particularly because the co-op is noisier than he expected it would be. 

One of his biggest concerns right now is that the property is going to end up being harder to sell than he’d like, and he’s interested in offloading the property in a few years after the market becomes more stable.  However, he’s worried that because of broker fees and taxes, he’s going to take a loss.

He’s looking for advice on whether he is overreacting and wants to know what next steps he should take

Buyer’s remorse is common, but doesn’t necessarily mean he made a bad choice

Many people experience regret after finalizing a home purchase, as it’s a huge commitment to make, and you may start to overthink and second-guess everything once you’ve put a huge amount of money into a property.

These immediate regrets don’t necessarily mean that you made the wrong decision, and the best thing to do is to give things time to settle and see if you still end up unhappy with the decision or if you realize that you actually did not make a bad choice after all. This means doing nothing for at least six months or so. 

If there is a specific issue causing regret — like the noise in this case — it may also be possible to take steps to improve the situation. For example, several Reddit users soundproofing the co-op by installing more sound insulation, which comes at a low cost and can do wonders for your quality of life. 

The poster should also remember that he’s paying less than he was in rent, so he’s not in a worse financial position because of his purchase. He can simply choose to stay at the property until it appreciates enough to sell it without taking a loss, and he won’t end up taking a financial hit due to buying. 

No one can predict what will happen with the real estate market

Several commentators on the Reddit thread also pointed out that if the property is in a desirable neighborhood, it may go up in value more than the poster thinks and not end up being hard to sell at all. 

The reality is that no one can predict how much a property will sell for. It’s important to do your research before you buy to understand whether the property is priced fairly for the neighborhood and to make sure there are no major issues that could affect value in the future, such as zoning changes. 

Beyond that, though, your property values may rise faster than you expect, stay stable, or fall. Over the long term, the value of most properties usually will increase, but that doesn’t mean that you’ll always be able to sell a property quickly without losing money. 

This is why you should generally purchase properties only if you do plan to stay put for at least a couple of years. You should also make a generous down payment — ideally around 20% — to reduce the chances of ending up owing more than the home is worth. 

For the Reddit poster here, since the property is affordable, he can hopefully just remain there — and find ways to enjoy it — until he can sell for enough not to hurt his finances. He may find that happens sooner than he expects, or he may not, but at least he has that option available to him if he doesn’t want to take a loss. 

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