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”?

You shouldn’t buy a house just because it is a bargain or value for money. You buy a house to live in. It is where you spent the majority of your time.

15 years ago I think we probably overpaid by 10-15k for our house (and we had to borrow some of that from my FIL) but it was worth it because it was my house (still is)

Zoopla valuations mean absolutely nothing.

@TheGrimSmilemy heart was fully in it but having to overpay has left a very bitter taste in my mouth

Have you overpaid though? It sounds more like you're upset at not getting to underpay.

Also another principle called 'winners curse'. Essentially the winner of any auction has effectively paid more than anyone else would value it, in a perfect market.

I go by the saying of "a house is only worth what people are willing to pay for it".

If you want it and you're prepared to pay what you've offered, then fine.

If you don't want to pay what you've offered then walk away.

House valuations are SO subjective - it's up to you what you are willing to pay for the house.

When you say "overpaid", have you actually paid or exchanged contracts, or have you just had a verbal offer accepted?
It's not binding until you exchange contracts so you can either pull out or renegotiate at any point until then.
Better to do it sooner rather than later so you don't mess the sellers around.

@splendidpicklethats why I’m asking AIBU…maybe I am? I do want the house for a long term home. Perhaps I feel like this because I expected one thing and something else happened 🤷🏻‍♀️

You aren't overpaying if you spend a bit more to.buy somewhere you love, rather than somewhere that is a 'bargain' but doesn't make you happy to live there.

My house makes me smile when I think about it, and is so comfortable even when.i am.not thinking about it. The layout, the location, the garden that isn't too small but isn't too big.

It came with a greenhouse, which I would probably never have bought for myself. I enjoy trying to grow tomatoes in summer, and sometimes in winter sit there reading a book.

It wasn't a bargain, it was a reasonable price.

Is this your next home? Can you afford to buy it? Could you get something nearer your ideal if you don't buy this one?

@ArtTheClownyou are making me see sense

You're not overpaying - you're paying what you were willing to into get the house?
A house is a boy worth what someone will pay for it.

Oh, and forget Zoopla/Rightmove valuations.

I had a huge amount of work done (kitchen extension, central heating, double glazing, rewiring etc) but the estimated value on those sites is based on what I paid for it plus the average increase in value locally since I bought - it's meaningless. Because the price I paid reflected the work.it needed.

And the average increase in values includes the properties that have been renovated, not just the 'underlying' increase in house prices like-for-like.

You can withdraw offer. But we overpaid for our house (another came up in the same road for much cheaper, quite unusual as there are only 15 and they don’t sell often). We took the view that we were buying a home not a house and would need to rent if not paying a mortgage. It has increased in value (we’ve been here ages, though, it dropped initially) but it is still our home and it was worth paying for that.

A house is worth whatever someone is willing to pay for it.
If you plan to live in it for a while the value is immaterial really.
Do you like it? Do you want to live in it? Can you afford it?
If the answer is yes to all these questions I don't think there is any problem

@luckycat888 arey ou in England/Wales? If so also remember that the survey may change the picture a bit. But if the survey doesn't have many issues it may help reassure you that you're doing the right thing.
If it helps, I paid 15K more than my first offer on the house I bought last year, and I'm pretty happy with it.

i've always found the opposite, they overvalue

OP, you say, “I do want the house for a long term home.” So you like the house, you’ve got it, and in the great scheme of,things, a few thousand either way is neither here nor there. Be glad you have the house - by the time you come to sell it, the small amount extra you paid will be lost in the mists of time. You’re still under the guide price - nothing to worry about. Enjoy your new home!

A house is only worth what someone is willing to pay! If you feel like you've overpaid for it and it's not worth what you've offered then withdraw. I wouldn't pay too much attention to the zoopla valuations.

Buying a house is a huge emotional and financial commitment.

The house is only worth to you what you are willing to pay for it.

If you don’t believe the house is worth what you offered withdraw and apologize for wasting everyone’s time.

There is no exact science in valuing a house. It could go back on the market and either fetch more or less than your offer.

Buying a house is not like buying a dress or a chair in the sales. It’s a negotiation between what someone will offer and the other person will accept. You didn’t get it for the lowest end of the price range, but you didn’t pay the highest either.

Are you serious?

I have also noticed people like to believe they are smarter than the average house buyer - they want to believe they have got a bargain or tricked the sellers -
plying games, pretending they don’t really like the house etc.

you are annoyed because you wanted a bargain - now you don’t think you have got a bargain so you are annoyed.

but again it comes down to whether you want the house or not.

If you go ahead and get a valuation done with your survey, that valuation will be shared with Zoopla who will match the same value . That's pretty much the only time it's a bit more reliable.

Give it a few days and if you don't have the love for the house then pull out. You are not committed until exchange. Pulling out after a few days is not dishonourable as no one will have spent any money yet.

I understand what you’re feeling OP and buying is stressful.

However, if this is a house you are going to live in, the key thing is if it will make a happy home for you. I think we view our homes too much as investments when they are not the same as second properties/investment properties - they are homes.

It doesn’t sound as if you have overpaid. So, provided you are still keen to live there and it’s affordable, don’t let this take the shine off for you

@AliBaliBee1234then I’m screwed!