Sometimes in contract negotiations the seller and buyer are relatively close to an agreement when both parties dig in their heels.
For sake of example, let's say the buyer has come up to 400,000 to purchase a home, but the seller will not budge for less than 410,000. Doing a quick calculation, financing the different amounts over 25 years at 4%, the higher price will result in approximately $50 per month more.
I'm also estimating that a small family going to McDonald's once a month would spend about $50.00. So, if this is in fact someones dream home, a better question than looking at 10,000 as a hardship would be to consider it as a small sacrifice over time. Skipping 1 fast food meal with your family each month could equate to your family living and loving in your dream home.
While I would never encourage a buyer to pay too much for any property, perspective is often a helpful tool to measure the real day to day impact of paying a bit more for a home.
What happens sometimes when a buyer walks away from their dream home over a relatively small amount is that all other properties are stacked up against "the one that got away." And on occasion when a buyer decides to go ahead and pay the 10,000 more they face possible heartache at hearing "their home" has sold to someone else.
In the long run, trust me when I tell you this. You'll be far happier living in a home that suits you and your family exactly then "saving" 10,000 and living somewhere "close but not quite." And, in the long run, you will not miss the fast food burgers once a month.
For sake of example, let's say the buyer has come up to 400,000 to purchase a home, but the seller will not budge for less than 410,000. Doing a quick calculation, financing the different amounts over 25 years at 4%, the higher price will result in approximately $50 per month more.
I'm also estimating that a small family going to McDonald's once a month would spend about $50.00. So, if this is in fact someones dream home, a better question than looking at 10,000 as a hardship would be to consider it as a small sacrifice over time. Skipping 1 fast food meal with your family each month could equate to your family living and loving in your dream home.
While I would never encourage a buyer to pay too much for any property, perspective is often a helpful tool to measure the real day to day impact of paying a bit more for a home.
What happens sometimes when a buyer walks away from their dream home over a relatively small amount is that all other properties are stacked up against "the one that got away." And on occasion when a buyer decides to go ahead and pay the 10,000 more they face possible heartache at hearing "their home" has sold to someone else.
In the long run, trust me when I tell you this. You'll be far happier living in a home that suits you and your family exactly then "saving" 10,000 and living somewhere "close but not quite." And, in the long run, you will not miss the fast food burgers once a month.
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