Building custom home and want to walk away. Potentially big loss.
Hey everyone, my wife and I are building a custom home in South Dakota to be closer to family - we currently live out of state. Here are some details:
-Home is priced to be 900k with closing date in July. We will have 180k down payment by July.
-Wife and I are 28 years old, no debt, no kids, and are both dentists. Combined income 400k right now
-We have jobs lined up and don't exactly know how much we will be making. 300k combined 'should' be the absolute minimum. Will likely be higher.
I felt we were too hasty wanting a forever home when we moved back. Tried canceling the contract with the builder, but he wouldn't budge. My main concerns are income uncertainty and having kids in the picture in a few years. I lost 15lbs from the stress and not eating for a couple weeks back in November.
Builder offered to list the house for us and see if it sells, but if realtor fees are 6%, that's a 54k loss, and I think the house is overpriced compared to comps in the area by 50-80k.
The big question is whether we should buy it as planned or let the builder sell it and pay the difference (if it sells for less than 900k) + realtor fees.
I've been in my head too much this last month and need outsider perspective. My wife thinks we'll be fine, but I'm too hung up on the worst case scenarios