Wanting to offer on a house that I think is over priced

[lboogy]

I've seen a house I like - has been done to high spec - pretty much exactly as I'd do it myself but it has some draw backs

1. not in my desired school area
2. mid terrace - I wanted a semi
3. I think is over priced especially in this market
4. is 25k over budget has just gone on the market and the owner doesn't need to sell to move so is not entertaining offers

But we've been looking since November ( we are under offer) and it's made me realise I seriously need to compromise since I don't have the money to afford what I want. Well, I did find one but it went to bids and I missed out

I offered what I think is fair based on sold prices - which are around 75- 50k less than what he wants which he's rejected. agent says my offer is the highest offer so far so it looks like everyone else thinks he's asking too much for it.

Surveyor acquaintance of mine says the property is over priced based on her data.

I'm loath to pay my top budget when it has all these limitations but Brexit seems to have caused a dip in the spring bounce

If he accepts my tip offer then I'd be paying £30k more than what I think the house is worth but it's unlikely we would move for another 10 years. Does 30k matter that much in the grand scheme of things or should I keep looking until I find something baring in mine my buyer isn't going to wait around forever?

Depends if it's 30k on 1 million or 30 k on top of 100 k.

What % is it?

Offer what have you got to lose?

Ive offered 7% under the asking price. if I offer the top of our budget it would be 3.5% under the asking price. The house has been on the market for 3 weeks.

I overpaid for my last house. I really wanted it. It was perfect for me. I sold 12 years later for a third less than I paid. It still annoys me. I should have waited for another house in the area to come up. This house isn't even in the area you want. Don't overpay, especially not when house prices could take a dive after Brexit. You could find yourself feeling robbed. I will never pay more than I think a house is worth again even if I really want it. They may come back to you if nobody else fancies overpaying either. You could still get it, just at a more reasonable price.

I think the drawbacks are quite big compared to the advantages. It sounds like you are being influenced by the fact it's your style.

He’s not going to accept an offer under the asking price when the house has only been on the market for three weeks. Especially if he doesn’t need to sell quickly and can afford to wait. His price may may be unrealistic but it’ll take months for him to accept that.

I wouldn't bother if it's not in your desired school areas. That's too big a negative on its own.

Well, we just had an offer of 8% under asking price accepted and house had already been reduced 10% down from original price. But, it has been on the market for nearly 6 months with one sale fell through already. It's a total fixer-upper, so we had lots of justification for offering low. Doesn't sound like that's the case in your situation (if the house has been done up to high spec already). Comparing to other similar ones that have sold recently is the most helpful thing, I think, in terms of negotiating.

Thanks ladies

a house value is subjective. What you pay for it becomes it's value. It resets the clock so to speak,

If you're going to live there for a lengthy period, then I'd go for it, if it's the house you really want,

If it's not, don't, because you'll always be thinking of the money,

All you have said it's not the house for you.
Are you rushing to buy?

''a house value is subjective. What you pay for it becomes it's value. It resets the clock so to speak,''

What a load of absolute rubbish!
Just because one buyer is naive or gullible or ill informed enough to overpay for a house doesn't automatically mean that it sets an immovable benchmark for what that house will be worth to any future buyers.

Ok, back to school for you. At no point did I say it became an immovable benchmark for future buyers, that's just ludicrous.

I did say it becomes its value. And it does. At that point in time. It then either increases or decreases with thr market. It also impacts the value of neighbouring houses.

So either you've a reading comprehension issue or you were or had consumed too many vinos when you wrote that ridiculous post.

Next time stay off the sauce.

OP, how would you feel if anyone else bought it? Gutted or not. I don’t think £30k in the longer term a problem.

Not being in your desired school might be a problem though.

It sounds like you would pay over the odds for basic decoration style that can be easily replicated and done cheaper for what you are offering plus style changes and quickly dates.

These flipped houses make XXX because buyers can’t be bothered to redo a bathroom or wait for decorators etc

Don’t pay it.

Look in the area you want because school will be more important in the long run

Rent somewhere and buy once your money is in the bank. Don't rush into buying somewhere you aren't 100% happy with

Don’t overpay. We viewed a lot of houses last year. 3 of them were fabulous, but in all of those cases, the vendors had overpaid originally (around 5-ish years ago) and now can’t sell for what they want/need in the current market. The owners are effectively stuck!!

We moved into our new house last October. With hindsight I definitely think we overpaid by about 3.5%. It would have been fine (as I though it was exactly as we wanted), but we’re discovering a lot of shoddy workmanship and maintenance that we didn’t anticipate (despite full survey etc). It now grates that we paid a premium

Well , a house is worth what someone will pay for it and what someone will accept for it at the time of the deal. Schools area sounds like a big compromise - decoration etc can be fixed over time. Personally mid terrace v semi wouldn't bother me - other people it may very well do. Offer what you are prepared to pay and if the vendors don't like it move on and find somewhere else. In general if it is a long term house & you would be happy there paying a bit more than you think you could have got it for , over time , I think is not a massive problem - these things tend to be cyclical. That said - be very sure of the compromises you are prepared to make & school area could be a big factor. (Well, my opinion only) Vendor cannot make you pay more , you cannot make them take less.

Not in desired school area

Fails on this criteria for me. Sell your house and rent. Brexit or not, we’re heading into a recession. Don’t buy a house with a compromise too many. There will be better houses which you can wait for if you bank your sale and rent for the short term. Yes, it’s more hassle but worth it in the long term. We have done this 3 times and never regretted it.

If its not in desired school area and surveyor said you would be paying more than its worth I would walk away. If the school area is still very good and surveyor says its worth 5% under then would consider raising bid to that but personally I won't compromise on school area and would only do semi or end terrace. I would never pay more than a surveyor valued it at.

I would be going to desired school area and looking again at end terraces or houses that need a bit of work or just waiting for what you want to come up.