Fallen in love with a house. Would we be stupid to buy it?(114 Posts)
DH and I have fallen head over heels with a house. It is 5 miles away from where we wanted to buy but is still a good location with good schools. But it is £5k over our budget. We could borrow off family and pay this £5k back with DHs bonus at the end of the year as long as we are careful with our spending but we have a good amount to live on to be honest we just wouldn't be able to go on holiday or do any house renovations for a year. The house is very nicely done and so I doubt we would need to spend money for a while but you never know. The mortgage payments are still less than a third of our income so we are not going crazy.
I don't know what to do! I don't want to make a hasty decision based on my heart and gut feeling and make a mistake. We have offered at £5k under the asking price but they aren't budging. We have said that it is all we can afford and to get back to us if they change their minds but I really don't want to lose this house. It is beautiful and has 50% more space than we can get around where we were first looking with our budget.
If you need to commute for work/schools how much additional journey time is that for you and/or dc, how independent can they become and can you really afford the additional cost of travel as well as the stretch on mortgage/savings?
I would ask the estate agents a) why it has been on the market for a year and b) why it fell through 6 months ago before I did anything else.
It would depend. I presume the mortgage requires that you have a minimum of 10% deposit, so the maximum loan to value for that particular mortgage is 90%. If you are buying at 325,000, the deposit you will require is 32500. The question is whether even if you meet that criteria will your lender agree to you borrowing 292,500? If the maximum they will let you borrow is 287500, then you will need to find additional 5000, so your deposit would be 37500.
If this property has been on the market for a year with a sale falling through, I wouldn't be tempted to pay anywhere near asking. I know some people say its only an extra 5k, work out how much you would actually be paying for that extra 5k over the term of the mortgage.
I agree we shouldnt really pay asking but if he refuses to budge do we let it go? Mortgage wouldnt go up as we would put in the money ourselves to top up deposit. Hmmm dont want to lose it but seems stupid to pay asking at this stage.
Sorry to keep bumping but I am agitated with not knowing what to do!
I don't think it is stupid to pay what it is worth to you. The prices EAs put them on the market at are in many ways meaningless. Really it's worth what someone will pay and, also importantly, what someone will let it go for. If your seller is going to just hold out and hold out, they can. Doesn't solve anything for you. You need to decide what's its worth to you. All the EAs price, offering etc etc is just a white noise game in the end.
It also depends how you can look at it. We've just bought a house. Didn't get as much off as we tried. At points I've worried we've paid over the odds. However some selective zoopla studying and new houses coming up for more has meant I can convince myself I've got a deal. I'm sure if I looked I could find evidence to the contrary. So I don't look for that stuff. Means I'm happy. Are you looking for an investment or home? I'm very much on the latter so view it all accordingly.
Really it's all a ridiculous game. Personally I try to not let that get to me because I don't like it. So it all depends how you feel about all that and what you feel comfortable with. Of course this is within parameters. You can't get away with offering what the mortgage company won't support. But there's leeway within all that.
put in a bid you can afford, with a little room to go higher if needed, still the amount you can afford.
don't stretch yourself unless you really have to.
if they've been trying to sell for a year they might be happy to have an offer.
but seriously, DON'T go full asking price. set your max figure in your mind FIRST. then cut 5 - 10k off that. obv i don't know what figures you're talking about so my figures won't mean much.
What Alice said really. If they are in no hurry and want to hold out for the asking price that's their right, and it's up to you whether you will pay that. In your shoes I would go to the asking price if I loved it so much and the vendors weren't budging.
But if we decide to go to asking price do we just do it now. They will know we are keen as we offered quickly. I am worried he might think he can get even more if werush in!
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It's very easy. How many years are you planning on living there, 5, 10, 15? 5k spread over 10 years is less than 10/month which is really a small investment for a house you are really happy with. Besides you will still have something to show for it as it will be an investment as opposed to a holiday which will be over in a week or two, buy it.
£5,000 is nothing in the grand scheme of things when you're buying a house. If you love it, buy it. People spend £2,500 putting in simple thing likes woodburners etc. It's really not worth losing out on a house over, if you really love it IYKWIM. Yes, it's annoying that its been on the market for ages, but if you start playing a waiting game, someone else might out an offer in. Try and imagine if it suddenly went under offer and see how you feel.
Just the other day I saw a pait of boots in schuh I liked-ish...they were £85, yet they were not leather!
How the hell will I ever be able to afford a decent pair of shoes again, if pleather boots are coming in at £85???
The other issue we are battling with is it would add another 20 mins onto my morning commute as I want to keep the kids at their current primary and it is 7 miles away. Keep worrying about what might come up that would cause issues.
To be honest it doesn't really seem to me like you want this house. Maybe do that thing where you toss a coin to decide whether to go for it or not, then mid flip you suddenly know which way you want it to land. Works for me!
Message withdrawn at poster's request.
Commute now is 2 mins
I do want this house desperately but I am worried about making the wrong decisionfor my kids.
Lisa they are moving into rented as they have started building a house nearby and need to sell this one to release funds to continue the build. Yet he said they arent in a rush which sounds like bollocks to me. I think they need the full amount to pay for this new house which is why he isnt budging on price.
Imagine these two scenarios:
1. Estate agent phones tomorrow and tells you the house has gone under offer with a cash buyer. It is off the market. How do you feel?
2. You decide to offer the extra 5k (you could try 2.5k). Vendor accepts, house is yours. How do you feel?
My thoughts would include: how long will you live there? Is the area likely to remain static or change in value? Secondary school commute?
1 - I would be gutted and would cry
2 - I would be dancing around with excitement
We would stay there until the kids were grown I guess as it is big enough. I dont really know what will happen with the house values. Good secondary is within walking distance of house.
Why don't you ring tmro and offer 2.5K extra? Then you can stop thinking about the turmoil and get on with it! Imagine the relief when it's all sorted.
I say go for it, you sound like you would be really happy there. Once you've moved in and are happy, you'll look back and wonder why you even hesitated.
If you weren't looking in that area, is there any chance that there are other properties just as good as this one? What makes this one unique? There are very few houses which are truly unique, so maybe there are others like it nearby but you just weren't looking?
Ask the estate agent why the previous offer fell through, they may be awkward people to buy from.
Agree there probably are or will be others equally as good and more affordable. I think you need to spend more time in that area to see what is on offer, and not. Committing to driving the dc to school for several years should not be underestimated - to parties, see friends , parents evenings and concerts. If vendor really needs cash flow they won't hold out for longer.
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