Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

Should we overpay if it’s our dream home?

37 replies

cooperbug · 02/11/2020 06:24

So we went to view a house on Saturday and both love it. We want to place an offer on it and owners said they had had four very different valuations on it from 440-480k.
It’s a private sake and not officially on the market yet.

We are thinking of offering 440k but to be honest this is more than we wanted to pay (despite it being perfect for us).

It’s difficult to estimate the true value of houses on the particular street as none of this style have sold for 5 years and for 440k we could have bought a detached in the same street last year but needed lots of work.

I just want to make sure that the valuations they have had are true and that they are not just making up numbers in their heads what they would like to get for it and then we end up overpaying.

Don’t know what to do?

OP posts:
WitchesBritchesPumpkinPants · 02/11/2020 06:29

How does it compare to others in the same general area?

Can you afford it, realistically?

AgentProvocateur · 02/11/2020 06:34

Presumably you’ll get your own survey, and that will determine the base. And after that, it’s just horrible much you want to pay over and above to secure it. Even if you overpay, if it’s your dream house and you intend to stay for years, it will be worth it.

FippertyGibbett · 02/11/2020 06:34

A house is only worth what someone is prepared to pay for it.
I personally wouldn’t pay that much out on someone else’s say so.
Can you get it valued yourself ?

Original poster
cooperbug · 02/11/2020 06:39

It is comparable to others in the area (well what happens available at the minute which is very little)

It’s a 4 bed Edwardian semi with huge garden. Not overlooked, views out onto countryside from back. Has lots of traditional features and we wouldn’t really need to do anything.

We could just about afford it at a stretch (would be maxing out in the mortgage and have nothing left in savings etc)

It’s such a massive decision, have never spent this kind of money on anything before and it’s a big step up from our current home

OP posts:
Original poster
cooperbug · 02/11/2020 06:44

Do you the agents would share what they valued it at with us?

OP posts:
Jessbow · 02/11/2020 06:53

You have nothing to lose by making an offer. If its not on the market yet, they may decide its not worth going onto the market and accept it.

Ultimately, You offer what its worth to you. Make your offer and stand fast for a bit

SwedishK · 02/11/2020 07:15

Are you cash buyers? If not, the mortgage company will send someone out to value it if you agree a sale with the vendor and even if you agree to buy it for 480, if the it's valued at let's say 420 then you won't get to borrow as much as you need.

When we bought our last house the price we agreed with the vendor was 725, it was later valued at 670 so we had to either pull out or the vendor had to agree to a lower price.

Original poster
cooperbug · 02/11/2020 07:19

It would be part mortgage but we have a good deposit.

OP posts:
JoJoSM2 · 02/11/2020 07:22

Have you seen any other houses? How does thins one compare? What do you feel is a fair price to pay for it?

I agree that a house is worth what someone is willing to pay for it. I’ve seen properties that I would pay a lot more or a lot less that the agents’ valuations.

Hotwaterbottlelove · 02/11/2020 07:56

Overpay if it is your dream home and you can comfortably afford it. It sounds as though you aren't convinced by the valuations though. For a private sale, I think it would be reasonable to ask them to show you the multiple valuations.

IheartNiles · 02/11/2020 08:23

Estate agents email their valuations so just ask the vendors to share these with you. If it’s a house you plan to live in for years I would be comfortable to pay at the higher end as in the long term they always gain in value.

OnlyFoolsnMothers · 02/11/2020 08:35

Must be some way of comparing it to similar properties in the area. Not that their valuations are great but what’s zoopla say?

Mosaic123 · 02/11/2020 08:35

What would you be happy paying for it? How upset would you be if you lost it for £10k or for £20k? Look at the difference between what you would be happy paying for it and how much extra you would need to pay to get it. If you can afford it then go ahead. Have a full structural survey as you said you would have very little money over to fix any problems.

Loofah01 · 02/11/2020 08:43

Have to start negotiations somewhere so start with whatever you're comfortable with. Make your case - people are losing jobs, you're in a great position etc. The mortgage company will send a valuer anyway so they'll confirm if it's worth it or not.

NewHouseNewMe · 02/11/2020 08:45

Have you doing viewings for long? If so, then you know the market and can make an educated guess.
If you're at the start of the viewings process, it is harder. We saw only one that interested us but were sure it was overpriced. It went to a bidding war in the end so clearly only we thought that Grin

WoolyMammoth55 · 02/11/2020 08:54

Hi OP, as others have said your mortgage company won't lend a higher amount than they believe it to be worth.

So if you will be spending all your savings plus some mortgage, you won't be able to afford to buy if your mortgage survey values it lower than you've offered (IYSWIM?) because you don't have extra funds to bridge any gap.

That in mind, I think you'd be advised to speak to local agents who know the area (and know the house if poss) to get confirmation of a ball-park value before you proceed, otherwise it's a lot of stress for nothing.

But ultimately all property purchases involve (a) a frightening amount of money, (b) a risk you'll either lose out on the house or overpay, (c) wild levels of stress! That's just the nature of house buying... I've had friends lose money because expensive surveys contained massive errors, because of badly behaved vendors, because of badly behaved buyers further up the chain.

There are no certainties, basically. You can only trust your gut and hope for the best, IMO. Wish you good luck!

SilkieRabbits · 02/11/2020 09:05

When we put our house on the market the agent sent us the valuation in writing - have they got that to show you. Ours went for 91% of that after 5 weeks so they can be on the high side (though maybe if we'ld waited we'ld have got higher). Or get a surveyor round to value, I would trust a surveyor's view much more.

I would normally not pay over market value but we paid more than we wanted for this one (though still very cheap to us as rural) as it was the dream house and no regrets. But depends if its unique, if not would wait it out / offer market value.

WanderingMilly · 02/11/2020 09:07

If it's your dream home it's worth overpaying for to get it. It sounds wonderful, just go for it.....

SilkieRabbits · 02/11/2020 09:13

Houses done up with big gardens are selling very quickly by us and presumably at full asking price or close as deals are done within 2 weeks.

GreySkyClouds · 02/11/2020 09:14

If you can afford it and plan on being there for 10+ years, then yes.

Salome61 · 02/11/2020 09:46

I was first to see a property on a Saturday a few weeks ago, and offered full asking when I left the viewing. I know it's different as it is through an EA, but the vendor wanted to continue the weekend viewings. Apparently the second viewer also offered asking, the third offered under.

The EA is closed on a Sunday here. On the Monday the EA rang and said the vendor would like to give me the opportunity of offering more - I offered 1%, and she accepted. On the Tuesday I learnt that the third viewer came back and offered full asking - luckily for me was told it was sold.

It's a horrible game, like a never ending auction. I have got my Memorandum of Sale but still feel worried someone might gazump me.

If you love it without regret as it doesn't present any compromise, I'd offer full asking.

DespairingHomeowner · 02/11/2020 10:35

@Salome61

I was first to see a property on a Saturday a few weeks ago, and offered full asking when I left the viewing. I know it's different as it is through an EA, but the vendor wanted to continue the weekend viewings. Apparently the second viewer also offered asking, the third offered under.

The EA is closed on a Sunday here. On the Monday the EA rang and said the vendor would like to give me the opportunity of offering more - I offered 1%, and she accepted. On the Tuesday I learnt that the third viewer came back and offered full asking - luckily for me was told it was sold.

It's a horrible game, like a never ending auction. I have got my Memorandum of Sale but still feel worried someone might gazump me.

If you love it without regret as it doesn't present any compromise, I'd offer full asking.

@Salome61: if you don't mind my asking, what area of the country are you in, & is this more of a 'starter' home or several rungs of the ladder?

I'm just curious as I'm in London & some areas seem really fast, some slow

I can understand your worry about being gazumped: but reading your post I think if your sellers (or Estate agents) were that way inclined they would have put you into sealed bids. The fact that they did not, & did not leave it for a week or 2 to see what interest would come in shows your sellers are motivated to move (have they found somewhere they like?) & probably not game players..

DespairingHomeowner · 02/11/2020 10:37

@Salome61: I also think you probably offered most/best position or they would have dragged it out a bit longer, its possible the other 2 bids were not quite what you have been told but I think you have done right thing :)

NewHouseNewMe · 02/11/2020 10:47

@DespairingHomeowner The market in my area of outer London is hopping. Before we were on the market, we had a dozen viewers, and sold on the first real morning of viewing.
However the house we are moving to was on the market over a month with offers but none at asking price.
I agree that houses that are already in good condition with big gardens are selling well.

Bluntness100 · 02/11/2020 10:52

I don’t think going it at the very bottom of the valuation is over paying, unless you think the seller is lying to you? And it’s worth less? If you already think this I think you’re on trouble to be honest.

I think make your offer, they may decline and go to market if it has been valued up to 480. No one can guess.