To view a house I can't afford?

[likeamother]

Have lost all sense of reason after months of nightmare house hunting/not house hunting due to lockdown and would appreciate some thoughts and experiences!

In the current market, which seems weirdly quite buoyant perhaps 'cos of a bottleneck effect and the stamp duty holiday, is it madness to view a house about 6-7% over budget? For clarity, prices are around 240k with a budget of 225k, not in the higher regions where I guess a 15k price drop is more common.

I don't want to waste anyone's time, but neither do I want to miss out on a great property for my DC and me if making an offer this sort of % under is fairly common.

When my budget was less (have managed to increase my borrowing amount) the houses priced around 190k were going like hot cakes, but in this higher bracket they seem to be hanging around for longer, making me ponder...

Am I being unrealistic and unreasonable? WWYD, Mumsnet?

Yep, view it and put in a cheeky offer. What’s the worst that can happen.

I would absolutely be looking at houses that price on your budget. I don't think we have ever paid asking price.

I buy and sell a lot. I would view it. In fact I always view within 10% if not more. Only once have I paid the asking price. But be careful of looking too far above - as you said then nothing else will compare and you will end up disappointed.

You’ve just contradicted yourself! It will have been priced with the lack of parking and garage taken into account. It’s like expecting a property that needs work to be heavily reduced from the asking price. That asking price has already taken the need for work into account.

Ok, fair point Sold prices around there do seem to vary though with some WITH garage and parking going for not that much more, yet I imagine these features, or parking at least, are quite important factors when it's a family home and family area. But I admit to not yet being too up on this sort of price bracket. It's also the element of work needing doing, this one doesn't need much and I think there is huge demand for a finished article so people will be happy to pay more for less hassle. Unfortunately for me

No harm in offering but I wouldn't get your hopes up right now, my sister and partner sold theirs in 48 hours for 8% more than it was valued before lockdown, in the two weeks since they've offered on 3 houses, one got 3 offers in the same weekend having been on the market for a year, another ended up going for 16% over the asking price, and the last one they're waiting to hear on as it's gone to sealed bids and will be decided this week. All of these are very standard Northern houses, this isn't the south east property market of insanity!

Its worth a try, definitely. The last house we looked at accepted our offer at £100k less than the asking price, so a shade under 8% reduction. We decided location in our case was best so stayed put - the stamp duty at the time would have been £63k so we put that towards a big extension instead. It's a good time now, though stamp duty wise - I'd go for it, you never know!

@Ullupullu that's an interesting perspective. I suppose the more knowledge and clarity the better for comparison. I don't want to blindside myself with the advantages of one house that's, say, detached, but the bedrooms and plot are smaller than a semi, which also has a downstairs loo. And I can't really get a feel until I view.

@Pipandmum Thanks for this, v exciting. Can I ask was it always properties that had been on the market a good while that you went in a good way below asking price and were successful?

No harm in offering but don't fall in love with a place you can't afford because they may not accept

When I was looking last year I had a budget up to £250k - there was a house on for £275 and I spoke to the agent explaining what my budget was and would it be wasting everyone's time if I looked round. For that house the answer was yes as vendor wanted asking price (probably why it had been on the market for so long!). House I bought was on the market for £260 and I bought it for £240.

Speak to the agent as every vendor is different.

Don’t view it unless you can afford it at full asking price. Sod’s law you’ll end up falling in love with it and being broken hearted.

@Ohnoducks this is a stark reminder about the bonkers market so thanks for the reality check! It seems a bit like that round here, especially with ones that don't need work. So annoying that prices are going for more than they were worth a few months ago, especially as there is likely to be a drop. I will try to remain grounded and not daydream!

Our house was way over budget and we put in cheeky offer. It had been on a while though. These are strange times and bottom is predicted to drop out of housing market so maybe worth hanging on. Just accepted a £30k reduction on my mother’s place but needed quick sale.

We bought the house we are in for lower than the offers over. Go see it put in an offer if you like it and if its refused well you looked however if you are likely to be disappointed or disheartened then don't go.

We went in 8% lower on ours because after research that was how much less things were selling for at the time. Our initial offer was rejected outright and we were told they were insulted ( ), but after walking away they came back a month later and we agreed 6% off the asking price.

Prices are unlikely to go any way but up until the stamp duty holiday ends so it’s as broad as it’s long. I’d rather pay a bit more for a house than pay stamp duty, which is literally money for nothing.

I’d view it. There is always a chance they will take below asking price. About 5 years ago my friend went to view a house well above her budget. They asked the family selling what the absolute minimum offer they would consider. She got it for £80k under asking price (£330 to £250): the sellers were downsizing, it had been on the market for a while and they thought they were the right family for the home

I wouldn’t if I were you. If you like it, nothing else will match up and you’ll be upset it’s out of your budget and hate everything else you see.

On the other hand you could go view it, if you like it offer what you can afford.

When we were house hunting there was a gorgeous I really wanted to view but DP wouldn’t agree as it was out of our budget. He knew if we liked it it would ruin any future properties for us.

Hope you find your house soon. I hated house hunting.

God no, id absolutely view it. A house is worth what someone is prepared to buy it for, not what an agent lists it for. Do research - what have others sold on the road for? Is it listed correctly? Does it look like the roof will need replacing soon? As you can knock money off for that.

Your circumstances are very important. Have you got a property to sell, or chain free? If you're chain free it makes your situation much stronger.

We're still under offer and have lost out on 3 properties because we're in a chain. We were the highest bidders, by far, each time but the buyers' situation is often worth more to the seller. If you're in a chain, I'd still view it but be able to explain why your offer is lower eg look at comparable sales, work out if they're desperate or not.

Definitely view it. Good luck!

We did look at houses outside of our budget but to save unnecessary work for the vendor we told the EA what bracket we were looking at so they could put this to the vendor. One accepted what our potential highest offer would be and arranged a viewing one didn’t. We didn’t end up offering on the house but we also didn’t mess the vendors about. This was post lockdown but only just and I think vendors were a little nervous. Both had been on the market for a considerable amount of time. Ironically the one that didn’t want us to view based on our budget has now reduced theirs into our range now but we have settled on another.

We offered £35,000 less than advertised a few years ago.

The sellers quickly rang the vendors of the property they wanted and offered £45,000 less - and it was accepted, so they didn’t lose out and neither did we!

It’s possible. Depends on circumstances

Just slightly off topic for a second: how do estate agents know you are able to afford the properties you are viewing? I’ve always wondered what is to stop me browsing Country Life and asking to view a £10m house? Ok, perhaps they check for £10m, but what about £1.5? There are lots of houses near me in this bracket, but I couldn’t afford them without a decent Lottery win!

@IrmaFayLear We were asked questions before viewing but don't think they asked for proof of solvency until we put an offer in (house was £1.3) It could be different for the mega houses though!!

It worked for us, but the house we bought had been on the market for 4 months and had two sales fall through. We had no chain, so offered 10% below asking, settled on 7% below. You never know your luck

If you’ve got no chain, you are a desirable buyer so they may be willing to take a lower offer. I don’t think a 6-7% under offer is too cheeky. Might have a better chance with houses that have been on sale longer, but worth a go.

Of course you should. It’s a no brainer.