Question:
“We found the perfect home. It’s on a culdesac near my sister and her family and just a block to the elementary school. It’s in our price range, but the seller is being stubborn on the price. Two homes like it just sold for $493,000 and $495,000, but they want $500,000. Do you think we should buy it anyway?”
Answer:
What I hear you saying is, “should you ever overpay a little for a home?”
My answer is yes…but you’d expect a Realtor to say that, wouldn’t you?
Here’s why you should buy it:
When you shop for a home, you’re not just looking at what it’s worth, but what it’s worth TO YOU. So perhaps you could pay market value for another home NOT near your sister, NOT on a culdesac, and NOT a block from the elementary school.
Would you be happier with that home?
Doesn’t sound like it.
So as long as it’s within your means and you’re not grossly overpaying (i.e. it’s within a few % of value), buy the home you WANT.
Side note: With those 493K and 495K comps, your appraisal may end up in the 490s. If so, you could ask the seller to lower the price at that point, but they’re not obligated to. So have a few thousand available to pay over the appraisal if needed.
