Did you feel you overpaid for your house and does it matter in the long term?

(25 Posts)
suebfg Sun 27-Oct-13 19:05:18

Been having a sneaky feeling we recently overpaid for our house - perhaps by a few percent. If we're planning to stay here a while, does it really matter?

fluffygal Sun 27-Oct-13 19:12:46

No it doesn't matter, a house is worth what someone will pay, you can't change the past so no point worrying.

suebfg Sun 27-Oct-13 19:13:39

thanks smile I'm a terrible worrier

Sparklebum Sun 27-Oct-13 19:18:19

We definitely did. It seems like as soon as our legal papers were exchanged the arse fell out the market. No point in.worrying about it now though and luckily we bought this.place as a home not an investment.

BrownSauceSandwich Sun 27-Oct-13 19:32:15

Well, we bought in 2005, so compared to somebody who bought in 2000, yeah, we really overpaid. Compared to somebody who bought in 2007, we probably got a bloody good deal. House valuations at any point in time are pretty arbitrary. Factor in year to year fluctuations, and they're utterly meaningless.

Can you afford your mortgage? Are you happy in your home? Then none of the rest of it matters.

LittlePeopleOnTopOfTheCake Sun 27-Oct-13 19:38:31

We bought our current house in 2009, it is now worth less than we paid sad

If we stay here long term then it doesn't matter, but we want to move so it isn't great.

noisytoys Sun 27-Oct-13 19:41:53

No. We bought in the South East and it didn't change value for a few years then increased. I'd rather it didn't increase in value though because we the next step is too big a jump

Noggie Sun 27-Oct-13 19:44:20

We definitely overpaid hmm. Still it is a great home and exactly what and where we needed. Still have moments when I think 'what have we done?' But mostly I just put my head in the sand about it!

BananaPie Sun 27-Oct-13 19:49:52

Yes, overpaid for our first flat (2007). Market crashed, sold in 2011 for less than we bought it for. Didn't really matter though - managed to save and get the next leg up the ladder.

Try not to worry - the main thing is whether you're happy living there and can afford the mortgage.

Whether it matters or not, it's done now so really not much point worrying about it <unhelpful>

I suspect we overpaid a bit on ours but we were really desperate to move and we've been very happy here.

lade Sun 27-Oct-13 20:03:55

No, we bought in 99, 02 and 10. In all 3 houses, we have had price rises - even since 2010, but we got this house at a good price.

Preciousbane Sun 27-Oct-13 20:05:41

No because we bought in 1999, I agree though that as long as a house is a home that you love it is not worth the upset of fretting.

Shakey1500 Sun 27-Oct-13 20:08:08

This house-no

Our other house-absolutely. This is DH's fault obviously wink Hence we're now renting it out. An unreasonable part of me stubbornly refuses to sell it for less than we paid confused

Chottie Sun 27-Oct-13 20:15:21

What's done, is done. So long as you like your home and can afford the repayments, don't worry. Enjoy your home and be glad you have your foot on the housing ladder.

itsnothingoriginal Sun 27-Oct-13 20:23:48

Not if your house is a home..

It can feel a bit shit knowing you could have got a better deal but if you like the house that's the main thing. If you'd haggled you never know, you may have lost the house to another buyer.

Not sure if we overpaid or not - bought in 2010 but it needs a bit of work and prices around here are pretty stagnant so not sure what we'd get if we sold it tomorrow (which we don't plan to do!). I'm just pleased we have a house and don't have to rent any more tbh!

I bought my house and when I put my offer in it was for £10k less because thats what it was worth for me but I ended up paying the £10k just to secure it. The banks valuation came in spot on my first offer so I was abit miffed as it was hard to find that extra money but I consoled myself in knowing I called it right first time hehe

If you are planning on staying put and it is your home, then no it doesn't matter. Have you looked at how much your house would be to rent vs how much your mortgage is, that should make you feel better.
ie we bought out house in August 2007 just before the crash, we could have pulled out but decided to go for it as we loved the house, it was 425k, it is now worth 490k (so at least we have done OK). However our mortgage is £1500 a month, lady next door is pays £1900 and we have a much better plot. We couldn't afford to rent our house.

Mandy21 Mon 28-Oct-13 16:10:29

No-one can know that - the market may have changed since you bought, but at the time you bought it, most people can't know they'd have still got the house if they'd have offered a few thousand less (vendor might have said no, someone else might have been waiting in the sidelines to offer asking price), or whether they'd have got a cheaper / better / whatever house.

I agree that it doesn't matter in the long run unless your mortgage is more than you can afford or you're looking to move.

mellicauli Mon 28-Oct-13 16:23:30

You lose on the cost of the house but maybe you win on the interest payments. Overall: you are even.

I like to think of the mortgage payment as rent: if I am happy with that amount, I am happy. Actual value is irrelevant unless you want to sell.

TheArticFunky Mon 28-Oct-13 16:24:55

I think our house was about £5k over priced. It needed decorating from top to bottom, new kitchen and bathroom but wasn't priced to reflect that, it was the same price as similar houses in immaculate condition. The vendor refused to budge on the price and there was nothing else available so we went for it.

I think it only matters if you are intending to sell the house almost immediately and I'm not sure why you would do that.

mellicauli agree with you totally. We have an interest only mortgage to (we do have another payment vehicle to pay it off, hence the reason we could still get one). We all have to live somewhere, any increase in the value is a bonus.

AwkwardSquad Tue 29-Oct-13 19:43:19

We did. Paid too much for a house at the top of the market, which promptly nose-dived. Not good, as we want to sell. I have just taken comfort from mellicauli's wise words, though, as our interest rate is low.

Varya Tue 29-Oct-13 19:47:31

I felt niggled when I found the new house next door cost several hundred less than our new house. Now we find that next door's detached has lower council tax than our semi. !

mrsravelstein Tue 29-Oct-13 19:50:41

we overpaid because we'd been trying to move for 2 years and things kept falling through, and we needed to move in time to get ds1 into a decent secondary school.... we would lose money, i expect, if we had to sell now, but hopefully by the time we move the market will be better, and on the plus side, we're getting 7 years of education for ds1 out of it.

ParkerTheThief Tue 29-Oct-13 19:54:24

We bought this house when prices were at their highest, however we were downsizing so it worked in our favour. I don't spend time worrying about it because I feel you pay what the house is worth at the time

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