Help - I think I got carried away with sealed bids

[PandaLorry]

We saw a house recently which we loved. In an area where the right house doesn't come up often. It was also chain free which was a huge plus for us (we were considering going into rented to avoid losing our buyer and to avoid dragging the whole process out too much for our son who will need to move schools).

Anyway, other people liked it too so it went to sealed bids and I think we went a bit crazy and offered 10% over. It was competitively priced, but it was still not a cheap house. We got it but ever since I've been feeling a bit sick and have buyers remorse.

I feel like people in the area will look at us and think we are total idiots to pay that much. It's hopefully a long term home and not a house to us and we can afford it but I still feel like a mug.

DH thinks we maybe did overpay but is just glad to get it all sorted. We have a decent amount of equity and are porting our current mortgage so surprisingly the bank just approved it on an online valuation based on the address of the property. We haven't had the survey yet.

Any advice, anyone been in this situation? Does it get better or are we idiots?

[Lockdowndramaqueen]

It sounds like you need to make your peace one way or the other. Presumably you wanted it enough to offer this much. We recently bought and offered over asking - I know that we have probably slightly overpaid but we are not planning to move for a long time and it was the ONLY house we saw that met our needs so I feel very calm about the fact we made sure we got it over other bids. I have been here a few months now and no regrets - I love it. You need to get rid of the remorse feeling though so can you find peace or do you need to re-negotiate/ pull out?

[Vodkabulary]

1. it’s unlikely People in the area will know how much you paid (unless they stalk the sold prices which might be a little strange if they’re not doing it for their own house move research)
   
   
2. how disappointed would you have felt to lose the house? If securing the house was worth it then I wouldn’t worry! We paid full asking price for our house (despite me being sure i reality it was likely we could have got it a bit cheaper) because it was my perfect house which I saw myself raising my children in and I knew I’d be heart broken if we didn’t get it and also that it would be unlikely we’d get a house like it (because it doesn’t have a drive or garage) with 4/5 beds at that price again

[lightand]

Not been in this situation.
For me, I think I would have to think, if I have a choice[not sure if you do in this situation or not], do I[not your DH] want to pull out?
If the answer is yes, then you both have some thinking to do.
If the answer is no, then you have your answer.

I too dont like limbo situations.

[Rainbowqueeen]

You also need to take into account the cost of moving into rented and out again plus the value in knowing it’s sorted. Peace of mind and lack of stress is valuable. Also being chain free.
Enjoy your new home

[DianaT1969]

How much money have you made in equity over the years just because house values increased? You didn't go out and sweat for that money. Just consider this 'overpayment' some of that 'free money' reinvested. The house will probably hold its value (or close) and you'll save on paying rent for the next 20 years.

[Undervaluedandsad]

You did the right thing. Everyone wants to get a bargain but the reality is that what you needed to pay to get the house. We paid more than we wanted to for our house 4 years ago and I suspect we are still the highest priced house in our street but we wanted the house, houses like ours rarely come up so if we’d looked for a bargain we wouldn’t have got this house. It bothered me to start with but mainly I was relieved to get a house and move on with our lives. Enjoy your new house.

[LunaDeet]

You managed to put bid others to get your perfect house. It fits your criteria and has no chain. Congratulations! Please stop fretting and enjoy getting settled in your new home.

Starting the process again doesn’t necessarily mean you’ll spend any less on a different house.

[candlemasbells]

If the 10% is the same as moving into, out of and paying for the rented you haven’t overpaid.
Sometimes it’s worth paying money for non tangible things, such being in a nice house in the right place and being able to get on with life. We buy other stress saving services such as takeaways, cleaners, etc

[DoubleTweenQueen]

It's normal to feel like this when you commit to such a massive purchase. I got mine for under asking, in the property slump a number of years ago, and I still felt utterly sick when the offer was accepted :)
Draw up a list of pros/cons and calculate your net worth at this point, and costs for the house - you will be saving a significant amount of stamp duty?

[AnnaFiveTowns]

10% over is nothing if you love it and plan to love there for a long time. Unless it's going to cause you financial hardship then it's definitely worth it.

[RachelRavenRoth]

1) it’s unlikely People in the area will know how much you paid (unless they stalk the sold prices which might be a little strange if they’re not doing it for their own house move research)
Wow. Now I feel judged.

[LaMariposa]

We went 10% over on our new house, very similar situation. We are planning on staying there for the next 20-30 years though, so in the long run that money really won’t make a difference.
Just got to get through all the paperwork now - we’ve had the chain collapse twice already 😩

[DoubleTweenQueen]

And you can still keep an eye on the market, until you exchange, just in case!

[JamMakingWannaBe]

Someone on another thread said they didn't actually accept the highest offer, they took the best "package" and sold it to a young family they liked when viewing and not someone who wanted a BTL.

[justanotherneighinparadise]

I can understand and yet I think it sounds like you have successfully purchased a house that sounds wonderful. It’s always great to snag a bargain but it’s also great to buy a long term asset in a place you love.

[Roselilly36]

Property is worth what people are willing to pay.

Most properties in our county are going well over asking at the moment.

You say in your post that that the right house doesn’t come up often.

Assuming you are intending to stay for quite a few years I wouldn’t worry, if it’s a short term you may require some more thought.

Lots of people are losing out on bids at the moment you offered what you needed to pay to secure it. Only you know if the property is worth that price to you.

Good luck with whatever decision you make.

[MangosteenSoda]

Is it more important to get a bargain or to find a house that suits your needs, ticks the boxes, allows you to proceed with your own sale and lets your son move into the next school year with stability?

A house purchase is priced at what it’s worth to the buyer. Like PPs, I also offered above asking in final bids and felt a bit like you do. I don’t regret going ahead with the purchase two years on. In fact, I’d be priced out of my street by now.

Also, you don’t know if you were much higher than anyone else. Having already found a buyer for your house could have been the deciding factor between two very similar bids.

[Pootles34]

10%isnt that much, especially if not much comes up in that area. If you'd not put as much down and lost it you'd be kicking yourself now!

[Screwcorona]

The housing markets quite competitive at the moment and a lot of property, at least in my area, is going over asking.
It's unlikely you're the only one who offered over

[MaryGubbins]

Scotland always sells by sealed bids. The normal pattern in house buying in a popular areas is:
Lowball the first few houses you bid on, not get them.
Throw everything at the next house, get it, curse yourself.

You get over it.

[sazza76]

How would you be feeling now if you had missed out on the property? I understand its frustrating not knowing about other bids when sealed bidding takes place, however it could be equally as possible that you only secured it by bidding the amount you did. We were in a similar situation (although a long time ago and not strictly sealed bits but we had a deadline to make an offer) and we found out that 3 of us all bid the same and it came down to who was in the best position to complete the quickest.
It sounds like you have found a lovely home and I hope that you enjoy many years there. You may even have done neighbours in the area a favour as it sets a precident and they might get more for their houses if they choose to sell.

[WankmasterBastardDeLaShithead]

Surely if it's sealed bids, it's pretty much inevitable that the winner has offered more than anyone else? Sealed bids are the norm where I live, so I've always had that fleeting thought of "oh shit, no one else thought this house was worth what we're going to pay". On the other hand I've also been on the losing side, and it's gutting to think you've missed out on a lovely place because you've offered too low! I've never regretted my "wins" by the way... As long as you plan to keep the house for a few years, the extra cost shouldn't matter too much.

[Cattitudes]

Are you likely to save on stamp duty? That would be a bonus in my eyes. You will be in and settled in good time for school applications and being owners there might be less of a feeling that you moved just for the school than if you are temporarily in rented to get a school place. You will hopefully have the summer to iron out problems with boilers etc.

I felt a little as if we had paid over the odds, but not planning to move in a hurry, the house suits our needs and I haven't seen anything like it come onto the market we would like as much since we bought it.

[trevthecat]

We bought ours 2 years ago, next door sold just a few months ago for more than 10% more than we paid for ours and they are done to similar standard. You will pay more now but it won't take long to make it back and it's long term. I wouldn't be too worried

[PandaLorry]

Ah thank you so much for all these responses. I'm relieved to know this feeling is normal. Starting to allow myself to feel excited again...

With regards to stamp duty, we will save a little but not loads as completion before the end of June would be a stretch. The costs of renting would be significant though so that's definitely something to factor in.