How do you live with losing out due to mistake in research?

[purpletrees16]

I just want a bit of a moan really...

So found a great house - we rarely make offers, having offered on 3 houses in 1 year of looking (not in a rush still the stamp duty thing and I’m picky). Made an offer on Saturday, don’t hear back till Wednesday where we have to go to final offers - which is a first for us as we’re used to a more piecemeal back and forth. Both DH and I have nothing but stressful work deadlines and teams meetings practically all day. Attempt to see what we should got up to and make our guess, but get out bid (presumably by a lot but as we’re FTB with an actual mortgage agreed due to having to drop out due to house Subsiding.)

Now nursing the disappointment of missing out for 3 months savings which we would have paid - especially as in our haste I missed that the other side of the road had a different postcode as rightmove sold in the actual postcode had the max price at 10% less than asking ( we only 2% under).

Gah, I’ve just watched my parents neighbours make a 30% loss on a house they bought at the peak oil price in Aberdeen 5 years ago and I can’t fight an inner feeling that even the 5-7 years we want to stay in the house w

Pressed post

...5-7 years we will stay in the house will still realise a loss, even in zone 3 London. Anyway, rant over. It’s so annoying as if I had won and never known the other offer I would be freaked out by the whole thing and worried that we’d sunk all our Savings but now I’ve lost and I can’t help but cry a bit.

I hate final offers - hindsight is 2020 but I would have offered the asking had I seen that sold property, and not been worried About it appearing 10% over all others.

i got used to best and final disappointment.
it is a fast market, avoid the haggling process now(specifically in London)
most important work out the right price to pay for particular property by doing some homework.
work out your affordability including stamp duty and legal fees.
Always stick to your best and final.
you are only to get lucky once to purchase.

Yeah, the issue is that “affordability” as defined by a bank and all of savings (which due to having been a consultant includes some which is a pension in my head as I didn’t have one at the time) is stupidly high, which is a great problem to have and means we have chosen a price we are comfortable with but we can always go higher - but we aren’t bidding on the most expensive properties - so it’s all about working out what they are worth, rather than Just worth to us as if we were to spend that much we would expect more. Really I want to know what someone else would pay! And I can’t help but be coloured by Aberdeen and knowing people who are stuck or have lost a lot...

I guess I’ve learned to do better rightmove searches!

I was in your exact position last year, best and final offers when I was horrifically busy at work! So stressful! Then I found out I missed by £500 😩

The whole offer process is awful, not knowing what someone else would offer, it took me a few failed offers to get an idea of what I was comfortable with offering. I did loads of research too, but I wouldn’t get too hung up on what one house in the street sold for, it may have been someone’s perfect house so they paid loads, or a lower price may be because something came up on survey.

In terms of prices dropping, I’ve taken the view, if I’d bought the house at this price and this monthly payment pre COVID, I would have been happy. The time is right for me to move into my own place, no one knows what will happen to the housing market, but I know I want to have a home of my own instead of renting any longer (house sharing too in my case).

The process is a difficult one.
If you try to think what it is "worth" in absolute terms, you will be looking at the insurance cost to re-build, that is a fraction of its value.
If you think of what it's "worth to you", that's a whole different story. Could you see yourself entertaining family or having children? Is it near the train or close to a park you love?
We bought a house that arguably wasn't "worth it" but it was in the right location, near the right schools and had the right size. Other people will value those points too.

Be happy that you can afford to buy a house

You can’t compare Aberdeen and London. Aberdeen is a specific bubble (being so reliant on a single industry) and goes through boom and bust cycles, it’s a risk if you’re buying at the top of the boom, but equally you can do well if you get in at the dip and can wait it out.

If you try to think what it is "worth" in absolute terms, you will be looking at the insurance cost to re-build, that is a fraction of its value.

That’s not strictly true - a large element of what you’re buying is the land (unless you’re buying leasehold).

It's fine to have a bit of a wallow, but then pick yourself up and decide what you are going to do. You have options.

You could widen your search area or look at making some different compromises. Are there some "must have"s you could let go for a few years? First houses are all about compromise.

You can make your peace with what you offered. Just because one person bid more, doesn't mean you were wrong. Maybe they overpaid. Not winning one bidding war is not failure.

You can increase your limit. However what you set as your personal ceiling is much more important that what the bank says you can borrow. I'd never buy a car based on whatever scary amount the finance company is prepared to lend me, so why on earth do that for a house? It's your money.

It is stressful but you will get there. Think about what levers you have, what you can control.

I see what you mean, you wish to pay the right and fair price for the property, not just what you can afford.
that was my major concern while purchasing.
Tricky one, however with a bit of research as you title says, you will work out the pattern and funnily enough you become an expert.
I will copy and paste an advice I gave to a mumsneter .
"best advice is to do the homework before dip in.
make sure what sort property you need/want, don't decide once you are under offer.
work out compromise you can live with or without.
be realistic with your budget and stick to IT, mainly buying
make sure about the area you wish to move in.
conveyancer chosen and ready to instruct.

mock test, yes mock test!
save properties you will consider(price,location...etc) period, minimum 6 months to 18 months, keep an eye how fast they were sold and why, watch the price trend ,I would check history purchase price, old pictures, old/new planning applications, timeline google street picture how the property kept changing, any improvement, that will teach you to work fast and grab the right property.
once you worked out the pattern, selling speed and quality and compare each property pluses and minuses each one.
as soon you see a property you will know if it's good one.
work out list of things to avoid, example house near major road too noisy, house near petrol station or paint factory hard to mortgage.
HMO nearby, crime search, deprived area index.....etc.
all this online.
once you are under offer, you have the tools and data for the area.
I spot the right property, I will search any information about the seller and selling agent(planning application, facebook, their friend,pictures,comments,pets...etc) gives me clearer picture what sort people I'm dealing.
you will surprise how much info out there."