No, but the answer is relative. If you have a million dollars then $5,000 isn't "expensive" for the perfect name. But if you have $20,000 spending $5,000 on the domain name would be insane.

I just went through this myself. I started negotiating with the squatter and I came to find out that we went to the same school and we travel in the same circles. Even still we were not able to agree on the price so I walked away.

Last week I finally had a new inspiration for the name. It's just one character longer than the perfect name. I was able to buy .com .org and .net with this minor variation from a registrar (not a squatter)!

Keep thinking!