Feel like I overpaid for a house

[luckycat888]

Just won the bid on a house but there was (allegedly) another offer on the table from a cash buyer and so I was asked to put down more money. The EA indicated what amount the vendor was looking for and I went lower than that but it’s still extra money I hadn’t expected to pay and now I feel really shit, like it’s not a good deal and should I even bother? I checked Zoopla valuation which says it’s worth more than what my offer was by over £10k.
Guide price had a £25k range and we ended up just less than the half way point. AIBU to feel shit and now less excited about the house or should I feel happy I “won”?

The house is valued at more than the amount you offered. What is the problem?

Zoopla isn’t a reliable source of value so you need to reconcile whether the house is worth it for you personally. For me I’ve never got involved in sealed bids , I’ve offered asking price then walked away

Cos it no longer feels like a bargain and it’s more than what I had expected to pay for it

Can you withdraw the offer?

Over a long period that's not going to make a huge difference so unless you've paid significantly more than its worth or are planning to move again next year then you've paid a fair price. Whilst it might be nice to feel you've got a bargain surely there are many reasons you chose this house? Try just focusing on the other reasons you love it.

I've said it before and I'll say it again

In the long term, property always increases in value.

It'll be fine.

Enjoy your new house!

@CoastalCalmI always got the impression Zoopla undervalued properties

@Guavafish1I could but I’d like to think I’m not that kind of person

@WonderingWanda@Poopeepoopee Thank you for the encouraging words

So true…. I don’t know where Zoopla dream up their valuations!

Not from my experience they just use a basic algorithm - mine is showing as worth about 10% more than it would sell for and that’s because my development has a range of four bedroom houses and they just use an average. It was the same at old house too and that wasn’t a new build

Must vary. Zoopla undervalued mine by about circa £40k but we had done work to it. Zoopla only knows the basics doesn’t know the condition

You can withdraw. If they were being honest about the other person, they will step up to buy it. It doesn't sound like your heart is in it so I'd pull out.

Why does it need to feel like a bargain? That's an odd idea unless the house has a lot of issues

I would sleep on it and if you still feel the same tomorrow then I’d withdraw your offer.

Zoopla has no clue about additions like extension etc. If some other houses on the road have been significantly extended so therefore big jumps in value at some point then zoopla thinks all the houses will have risen at those rates between those dates. Similarly if few houses have ever been sold on that street zoopla is just guessing. When you spend a lot of time studying the local market ( hours on right move because you've been trying to move for 5 years) you can spot one's which are overvalued easily.

@onwards2025i mean a “good buy”

This is a well known phenomenon called buyers regret. You just need to sit with the feeling for a while. It will pass and then you will remember why you wanted it and feel happy again.

I don't entirely understand. Do you like the house and want to live there?
I understand that everyone wants a bargain, but a house seems like too much of a major purchase to only be interested in it for that reason.

Zoopla uses an algorithm to extrapolate from the price you paid for, an average % increase, and what other houses are going for locally. It doesn’t take into account any updates or renovations or anything like that.

Cos it no longer feels like a bargain and it’s more than what I had expected to pay for it

The price you've paid should feel worth it to you but I don't think you can really expect to feel like you've got a bargain when making a house purchase. Why should the seller part with their asset for less than it's worth?

It is worth what someone will pay.

Forget what anyone else might pay. Is this what you are willing to.pay for this house? Or would you rather withdraw the offer and keep looking? How likely are you to find something that suits you better at this price?

I might have got my house for a couple of thousand less. But it ticked everything for me and I love it. It is a long term home for myself and DD. Over a couple of decades that couple of thousand doesn't matter.

But if you don't think it is worth it FOR YOU, withdraw the offer.

Zoopla isn't a good guide. It values my London flat at considerably more than I've been able to shift it for. It gave me false hope. Hey- ho.

My neighbours house and mine are not average for the area so Zoopla puts the prices as much less than they are actually worth. Neighbors sold over 2 years ago for 520k and my house is identical but with an extra bathroom. Zoopla values it at £470k. It's because the algorithms go by house prices of close houses not like for like.

Do you love the house and see it as your home? If so, then keep with the purchase.
However if you don't love it or it it's a rental purchase and the numbers don't add up, then withdraw.