Yeah had something similar selling a rental, refusing to knock off a small amount runs the risk of them backing out of the deal, and when its a buyers market that's a higher risk because they could find something else they like easier.
In the end compared to the actual price of the house $500 is nothing. One person I've done real estate with would agonize over that as they feel like they're losing. I didn't even think twice about accepting it, it gets me to get the deal done and the additional costs due to the deal not going through are probably more, so it's a no-brainer to me.
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Uncertainty is an uncomfortable position.
But certainty is an absurd one.
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