Blog by DOINA BIOLAN B.Comm

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WHY AND WHEN BUYERS ARE LOSING THE PURCHASE OF THEIR DREAM HOUSE

WHY AND WHEN  BUYERS ARE LOSING THE PURCHASE OF THEIR DREAM HOUSE

 

Negotiating a house purchase is a very stressful process, for both the buyer and the seller.

Working with your realtor and mortgage broker to figure out how much it will cost you to " lose/win" a deal is very important.

Let's assume you are the buyer and all you are ready to offer for your dream house is $382,000. The sellers will like to obtain $ 385,000 as a sale price. (let's also assume the buyer has $100,000 down payment).

You, as the buyer, are upset that you cannot get the house for $382k, thinking that paying $ 3000 extra is not fair. “I am not paying $3000 extra “ , you are saying. So, in the buyers mind, he willing to lose the house for the $3000.

Well, think of it that way : the reason the buyer will lose the house is not because he refused to pay $ 3000 extra , is because he was not willing to pay $ 10.50 extra per month for his mortgage payment.

Assuming that the buyer qualifies for both $382 and $385k,  why is the buyer losing the house? Is just the principle or misinformation?

 

Before entering into a Purchase Contract, know what your expenses are going to be : mortgage payment , property taxes( for both the unit and your parking), utilities, condo fees, HOA fees for your neighborhood, closing costs like lawyer fees, appraisal, moving expenses, inspection. The only number that changes while you are negotiating the offer is the MORTGAGE PAYMENT!

Does the $10.50 cents extra per month is actually the deal breaker?

Comments welcome !