Did you regret buying an overpriced house?

[ohblahdee]

The housing market is dire where we need to buy. Nothing has come on for over a month. We are renting so in prime position. There is a house with loads of potential for future and in great spot, would we be mad to pay over the odds for it at this brexit clouded time? It’s been on the market for a few months.

House is on at 450k and has been modernised but not to a high spec. They bought it for £350k two years ago : (.

I think I might feel angry at giving these greedy people my money but it’s such a good house...

Start your offer low!!

We’re in a very similar situation. Been looking since October. We have a very niche requirement for our new home, related to a hobby. In all that time only 3 suitable houses have come up.

We’d had a tip-off that one house was coming to the market. We viewed it two days after in came on and by the end of the day we’d agreed to buy it at the asking price. Weeks later, we’d calmed down and realised that it was priced really quite high and was actually a bit crap. We withdrew....

Given the short supply I think people are indeed trying their luck with a high asking price. They might get realistic once offers are made. We just had an offer accepted on another house at £60k less than the asking price!

Depends on the area but brexit will hit the south east and london hardest....and if it's in these areas then asking 100k more than 2 years ago is ridiculous, the house is probably worth what it was 2 years ago.
What are comparable?
Look at it another way if you pay 450k and it's really only worth 350k and brexit causes house prices to fall 30% then you will have paid 450k for a house that's worth 250k... not a position I would want to be in, even if it was a forever house

Although, if it’s been on for months, it might be that they just don’t really want to sell. Have you viewed it?

We bought a house just before the 2008 crash, so it was definitely overpriced compared to a few months later (although we didn't realise at the time). Longer term, it's definitely been the right house for us.

We did, and only occasionally regret it. We hate the house, but it is in exactly the location we need. In the six years we have lived here only one other has been on the market, at the same as we paid, so not too bad. It was really important we got the location though for school continuity for the DC.

Agree with starting with a low offer. How much would you be willing to pay for it? Over the asking price?

If they bought at 350 and spent, say 30, I'd start at 390 and see what reaction you get. Be wary off making small increases though as they'll cotton that you're really interested.

Do you know whether they have had offers in that time and do they need to move? They might have rejected low offers. They might not NEED to sell but are just wanting another project. In their situation they are not going to sell for the same price they paid two years ago before putting loads of money into it, even if you don't like the way they have modernised it. I think it comes down to how urgently you need to buy and how urgently they need to sell.

Does the price difference reflects the money they put into it? Look at what houses have sold for recently in that street, that will give you some back up for offering low.
In the end you have to weigh up your heart against head. I don’t believe there’s going to be a huge drop, just continuing stagnation for a bit.

How on earth are they greedy? It's natural for house prices to go up!!!

It's on at what an estate agent has told them to put it on at! They are hardly greedy. What an unfair assumption!!!!

Thanks for your replies! Soothing to know other people have been in same boat. We are viewing it tomorrow. Alexalee that does worry me. I just feel panicked that so few houses come on and it feels so risky to wait till October in the hope brexit is resolved and a magic housing stock wand is waved.
I was thinking to put in a low offer and leave it on the table hoping they come to their senses but I think they are chancing second home owners to come along.

£100K more than to years seems greedy. House vvalues have not been increasing at that rate.

100k in 2 years natural?
But yes, The estate agent here is notoriously greedy.

Mikeuniformmike - clearly it's been revamped but it's not the buyers fault it's on at higher price. They may have got it for a low price because of issues they have fixed.

Hate assumptive buyers - very unfair! People need to get off their high horses about people making money on property. If you don't, you're stupid. You shouldn't sell unless your set to be better off. And if you argue with that statement it's because your stupid and lost money!

You're *

Is it possible you’re under estimating how much they’ve spent on renovations? It’s fairly easy to spend £100k if you get new windows, bathroom, kitchen, etc.

A recession is coming ... every several years they do. Nothing to do with Brexit.

Standard practice is for the potential vendor to offer 20% less and the seller finally agrees 10% less, so on that basis, it's about the right price.

I'm not sure where prices have gone up by over 30% in 2 years. However, if the people bought a wreck and did it up, then I can see why it's on for 100k more now. Doing up a place costs £££ and people do it to add value not just to go through the stress and expense for noting in return.

OP, see if you like the house and you can always offer what you think it's worth. Otherwise, just give it some time as summers tend to be quiet.

They might have spent a lot on it but not enough to justify a £100K price increase in a stagnant market, unless they had added an extension or something or done some serious repairs.
It might be priced higher than what they expect to get.

Thanks guys,
Wisteria I think you might benefit from a nice cup of tea to calm down. Thank goodness not everyone thinks like you as the world would be horrible.

There’s some good advice about offering strategies so thanks guys.

They have at best spent 10k on new kitchen and bathroom, new carpets and painted walls. Still has storage unit heaters. So no they have not done up a wreck at all.

I don't know where you are but in London the prices have dropped £100k in the last two years so it sounds overpriced.

Mmm I think the renovations sound like more than 10k, obviously depending on the house size but a new bathroom realistically 4. 5-7k, new kitchen similar or more, new carpets throughout, redecoration I'd say all in all its probably more like 20-30k but not as you say the 100k leap. Which area is it? Would you want to convert to GFCH? As that will be an expense youd have to factor into your offer I guess. Any way of finding out why theyre selling?

We had a similar thing. Looked at a house that’s £1.1m. Sellers bought for £850k four years ago. Done zero to it (not in great nick either). But they want £250k based on ‘market rises’. Prices stagnated when Brexit started and in the last year have fallen at least 10%. Almost no stock coming on.

People have missed the boat but still want the profits they would have made a few years ago. I’d be cautious. There will be others!

Estate agents take the mick. I remember when DGFs house went for sale and me and DM looked at each other like at the price they came up with. It didn't go for anything like it and neither did we expect it to.