Should we overpay if it’s our dream home?

[cooperbug]

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?

The only valuation you need to worry about is your mortgage lender's. Assuming they say the price ok and you can afford it, then go for it.

I’m also not sure that you genuinely think it’s worth less than 440 or it’s because you want to spend less.

If their valuations do come in at 480, then they would be silly not to decline your offer and go to market to see if they can get closer to the 480.

All you can do is offer what you think it’s worth and what you can afford and let the cards fall as they may. I’d really not be sweating right now unless you genuinely believe it’s worth less than 440 and I don’t think you do.

As a pp said, the only critical valuation is that of the mortgage company.

Hello @DespairingHomeowner I am a cash buyer and people did tell me to offer less as I have a 'strong' proceedable position, but I've been looking for five months and this is the best I can get for my money.

I've been dithering over moving home to the south but could only afford a flat there - plus I think my kids would still like to come 'home' to the village they were brought up in. Luckily I'll still have some money for my world travels when there is a vaccine :)

Laptop isn't working - I'm in a very popular tourist village by the sea in Northumberland.

If it's on for £440-480 they will
Be Unlikey to take a first offer of 440 surely?

@Salome61: thanks - living by the coast would be a dream , I guess the market is hot in various places all over the UK! If you've been looking for 5 months you def know what is out there, & you are in an amazing position being a cash buyer so I hope this one works out for you!

Thanks DespairingHomeowner, it's a bungalow. I had to sell my five bed listed building for peanuts at auction after much messing about by a horrible chancer of a developer, and this bungalow is, as Goldilocks would say, 'just right' :) Fingers crossed the vendor is honourable.

Estate Agents generally over value to get the instruction then ask the vendor to lower the price after a couple of weeks.

So it entirely depends what the market is like in your part of the country. The part of London I'm in has seen quite a slow down and properties being reduced left, right & centre.

Estate Agents generally over value to get the instruction then ask the vendor to lower the price after a couple of weeks

That’s not quite true, many many properties go for original asking price or close to. Yes many agents will over value to get the business, but she’s four valuations here, ranging from 440 to 480. The odds are the house is in that range, much depends on what the sellers will sell for. Unless they are not very savvy them it’s unlikely to be the lowest or the highest and likely some where in between. So they might reasonably be expecting about 460, but like most folks would like more.

Cooperbug, if you don't mind me asking, what makes it your dream house? The reason I ask is that before you decide to bid anything on this house, you need to make sure it meets your main requirements. Sometimes people fall for a house based on one detail e.g. a lovely fireplace or a room that would look lovely with a Christmas tree in it. But if it truly meets your needs in terms of location, no of bedrooms etc, state of repair etc.., and you're convinced you'll live there for many years, then offer the lowest valuation and only offer more if you get outbid.

We are in Greater London, and had our house valued a couple of weeks ago. The market is really good round here - houses selling quickly (ours would be objectively viewed as a 'dream family home'). All agents said that lots of sales are happening off market ie with no marketing, and there are cash buyers around for equivalent dream homes. They were recommending that we went with a guide price of between £X and £Y, with the aim of accepting a proceedable offer at the mid to two-thirds point. They also said that the market was very slow for one bedrooms flats with no garden, which makes sense as so many people are working from home right now.

you're convinced you'll live there for many years, then offer the lowest valuation and only offer more if you get outbid

That’s the issue, her highest bid is the lowest valuation, it doesn’t seem thr op can go higher.