Today I was calculating the difference in a payment for a Buyer on a 5 bedroom 3.5 bath home in a gated community. The home cost with NO down is $245k (VA loan) but the buyer's dream is a $230k loan. The house is WORTH the $245k.
At 4.5% interest rate (today's Texas Vet rate),
the PITI (Principal, Interest, Taxes, and Insurance) on a $245k loan is $1925 a month.
The PITI on a $230k loan is $1843 a month.
That's $82 a month- or $2.73 per day, about the cost of one gallon of gas.
Can you drive less per month to "afford" a home selling for $15,000 more?
Or, if you're still smoking, (not around the gallon of gas), how about giving up less than one pack?
Need to lose weight? Give up a cheese burger!
In San Antonio, Texas your money goes farther. You'd be surprised what $15,000 more will buy you! Or, think of it this way:
When you find the 'perfect' home for your family, why are your chiseling away at the seller for that last $15k? Do you want to keep shopping for a 'steal' for the difference of $82 per month?
(Comparison of how much more home you can buy in San Antonio, for not much more money)
Sometimes the home is RIGHT PRICED- or the Seller's COUNTER OFFER is a GOOD PRICE!
BUY A HOME! SUPPORT THE ECONOMY, SAVE GAS, LOSE WEIGHT- AND BE HEALTHY!
-Steve
Sara Woolford & Steve Golson in friendly San Antonio, Texas
If you are planning to Buy or Sell a home or land in San Antonio or the Texas Hill Country, we'd be happy to get you moved on with your life! You can go to our blog, website, Facebook page or just, call to Chat: 210-492-6683
www.iTexasRealty.com info@iTexasRealty.com
Sara, what a great post and a way to look at the difference. Sometimes it is just mind bogling that buyers walk away from a great deals for much less than $15,000.
Hi Manuela-
That was actually Steve's work (I just edited and formatted), but he and I both think that it is those small differences in payment that keep people from having the home that they want.
Such a shame to see them missing out!
It's amazing how low rate are and have been for some time now. Utopia for buyers!
Good point. I had a buyer part ways with a seller last weekend $4,900 apart on a $320,000 home.
Hi William- How can so many not know that they are in Utopia? It amazes me!
Hi Bill- $4,900? that's just a shame! I hope that they re-evaluate and come back to get their home.
Thanks for stopping by to comment.
This is a game I've always enjoyed, even when I was little.....if I cook instead of eating out 4 times a month, I can soon go on a little shopping spree....if we cut down on our cable package, we can take a nicer vacation this year...it's like negotiating with yourself! And I love the idea of applying it to a home purchase!
Hi Shannon-
You are absolutely right, with a little thought, you can find the money to get what you need AND want!
Thanks for adding your thoughts!
I think when you break down the actual payment difference to such a manageable number, people can see how they can save alittle each day and afford the larger payment.
Especially if you put it in terms of what they waste. A mentor of mine in business some decades ago (when heavy drinking was more the 'norm' in business) said when confronted with a difference in price he wanted to overcome "Hell, I SPILL more than that in a month!" -Steve
Sara - I don't think they often realize how little that ammount translates into when you put it into a daily amount. I've heard that called the "reduce it to the ridiculous close".