Is Love Worth It?

Okay, I get this question a lot. You've found your dream home. It meets all your wants and desires. You think you should pay $950,000. The seller wants $1,000,000. You offer an insulting $920,000. You and the seller counter back and forth and the last counter and final one to you is $965,000.  You dig in your heels and keep saying you don't want to pay over $950,000. But you love the house!

Okay so let's get real here.  If mortgage rates are 5%. That means for every $1,000 of mortgage you are going to pay $5.37 per month. So your delta here is $15,000,  or a payment difference of  $80.55 a month.

So let's check in again. You love the house. You have seen lots of other houses, they all need something, some more than others, but this house doesn't need anything. You'd be happy to move in tomorrow, colors and all.

 But you think it's worth $950,000. You think you would be a schmuck if you pay more. Baloney!  You could easily spend $80.55 a month at Starbucks or the 7-11 or whatever. You could pay a lot more in the long run to buy a house that wasn't move in ready and had to have a new bath a kitchen or whatever. Remodeling and living through it, is not fun.

Whoever remodelled it before you paid alot more for the improvements than they are getting from you at $965,000.

Trust me buy the house.  You are in love. Enjoy it.