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Original poster

Oops! Offered too much - WWYD

31 replies

BlushingBidder · 14/11/2020 13:16

NC as embarrassed Shock

I’ve been looking for a house for a while and missed out on a couple as I was too slow/bid too low

Saw a house a few weeks ago, on at 485 and offered 480 straight away (that day) - there were lots of viewings and I just acted impulsively! I now realise lots of viewings did not translate into lots of offers

Now having checked sold house prices I realise I’ve offered over by quite a bit ... ‘identical’ 2 bed houses on same street have sold between 415/several at 425/one at 450k but with a much larger plot - some of the prices are this year others I last 2-3 years. It’s the most expensive 2bed I the area by quite some way some I’m worried I’m making a mistake p. This is a new area/further out of London for me and I had not realised the difference in price

This house has a small extension which I’ve calculated would have cost around 20k to build (it’s 2x7m so quite small really), which adds value but it’s about half the garden so now very little garden (which may also make it hard to sell)

I like the property: seems good condition, like the street/location, I haven’t seen other houses I like better but feel very silly and worried I’d be selling at a loss if I move in eg 3-5 years . I’ve been advised my mortgage company will do a valuation which I won’t see but it’s 60pc LTV so not sure what outcome would be

Is there a decent way for me to renegotiate the price? Eg get a surveyors valuation ? Vendors are moving into rented, so I wouldn’t be messing up a chain, I’d like to renegotiate and buy the property but at a price more reflective of what there’s on street swelling at

I realise now I think I should have offered eg 460 perhaps... my offer was made 2 weeks ago & accepted a week later

Thanks in advance for any advice on what to do

OP posts:
TheStripes · 14/11/2020 13:18

Round here house prices have gone up and places are selling quickly. Are you certain that the property is overpriced and not just reflective of the change in the market?

All you can do is offer lower but don’t be surprised if the sellers say no and put it back on the market.

jackstini · 14/11/2020 13:25

I would ignore any of the sold prices on other houses that are pre-Covid - they just won't be relevant now.

Consider:

Do you still love it and think you will be there a long time?

Have you paid for any fees/searches etc. yet that you won't get back?

If you back out of this one and buy similar and don't complete before end of stamp duty holiday that's £14k extra you would end up paying

Africa2go · 14/11/2020 13:36

Highly unlikely that a 14sqm extension would have cost £20k in London - if it's been done in the last 3 or 4 years, the basic cost without decorating, flooring etc would have been at least £2k plus VAT so £30-35k, probably more.

You can revise your offer at any time prior to exchange, although sellers are likely to think you're playing games if you reduce now without any other explanation than you offered without doing any research to try to beat the competition and now you're changing your mind as you've had chance to think about it.

NewHouseNewMe · 14/11/2020 13:37

Personally if my buyer tried to renegotiate based on no material change (like asbestos), I would have my property back on the market ASAP.
This is definitely the case if there was lots of interest as you suggest.

mountains76 · 14/11/2020 13:42

If you're going to mess the vendors about then just drop out now and allow them to remarket without wasting any more of their time. It's people like you who make buying and selling houses more stressful then it really needs to be. You should of done your homework before making an offer.

Ickabog · 14/11/2020 13:42

If I were the seller and you tried to lower the price with no reasonable explanation, then I would put the property back on the market. It had a lot of interest, and currently prices are all over the place so older listings aren't as relevant. Also as a PP pointed out the stamp duty holiday is definitely something to consider.

Bumble84 · 14/11/2020 13:54

I agree with pp, if you did this to me because you got over excited and hadn’t done your research I’d be putting it back on the market. Think how you would you react if someone did this to you?

Original poster
BlushingBidder · 14/11/2020 13:57

@TheStripes - hard to say what the market is like re COVID (which is why I’m doubting myself). It’s possible that this is a hot area, I get a lot of reduction emails for areas 1-2 miles away but not specifically this one

@jackstini: that helps, 14k is a lot of tax and probably in the region I think I’m ‘overpaying’

@Africa2go: your comment re build costs is extremely helpful, thank you, & helps to set my mind at ease. The extension also includes a tiny shower room (like an en-suite) so that would have cost a bit too

Am happy to pay the ‘fair’ price, it just seems so hard to work out what that is... like anyone I don’t want to make a mistake that leaves me stuck for years. I dont actually think I will stay there a long time - maybe 3-5 years, I think I’d like to leave London in time

OP posts:
fabulousathome · 14/11/2020 14:13

An ensuite can add more than it costs to what the house is worth.

mrsm43s · 14/11/2020 14:35

Honestly, if I was the vendor, and you tried to reduce the price now, I'd be telling you to take a hike and putting the property back on the market. I wouldn't want to deal with someone who was mucking me about like that from the get set go.

In future, do your research before making an offer.

ktp100 · 14/11/2020 14:38

From the vendor's POV I'd be furious if someone tried to reduce the offer by 20 grand after it had been accepted and would tell you to piss right off.

Honestly, if it were me selling it I'd rather wait and be forced to take an offer that low a year down the line than let you have it and I think you might find their agents would advise them to turn it down too (I am an ex estate agent and I don't recall this ever happening).

Sometimes buyers play games and reduce an offer but not by that much!

If you've messed up and don't wish to pay what you offered, retract the offer and move on.

MatildaonaWaltzer · 14/11/2020 14:40

Do you need a lender’s valuation? That should flush out the range of actual value but of course you will pay for it

ImMoana · 14/11/2020 14:49

The fact it took them a week to accept your offer would suggest to me they’re not biting your hand off.

WombatChocolate · 14/11/2020 14:50

Unless you have basically decided you just do t want the house (in which case pull out) I think you should wait until a survery and valuation has been done before trying to renegotiate. Otherwise, you just don’t have any basis to really offer a lower offer on, a part from you’ve done your research...and you should have done it before.

Of course, if you are worried about spending g the money and it being valued as you offered but essentially you can’t afford it, or just don’t want to pay that amount now, then you’ll just have to say so. Of course it’s never going to be warmly welcomed because you are messing them about due to your lack of research......so you need to own this error on your part. Own it and accept you may well lose the property.

And next time, do your research first and negotiate on price rather than offer something you’ll quickly regret.

WitchesBritchesPumpkinPants · 14/11/2020 14:53

How much would you feel happy paying now?

Is there anything else you'd happily put an offer in on today?

It would be horrible fir the vendors if you pulled out. It is a shame you didn't do your homework first, (but I understand you being impulsive due to missing out previously!!) but at the end if the day, it's YOU that will have to pay the mortgage & YOU that will be selling it one day. The price has to be right. But do bear in mind the advantages this property has over done others & the stamp duty issue.

WitchesBritchesPumpkinPants · 14/11/2020 14:56

@ImMoana

The fact it took them a week to accept your offer would suggest to me they’re not biting your hand off.
Yes, that occurred to me too! A week is a long time to mess about accepting an offer, especially one close to asking. Either they're not actually that keen to sell or they believe it's worth asking or more!
Original poster
BlushingBidder · 14/11/2020 14:57

I did research as much as I could on the day ... turning up a property that had sold at 450. The others (413, 420, 425 etc) I found when doing further research

OP posts:
lolabears · 14/11/2020 15:10

If you're getting a mortgage your lender will do a valuation as will a surveyor if you ask them. If this is significantly lower than your offer then yes re negotiate.
From your description it doesn't sound like you're overpaying on the basis of house prices having increased from 2-3 years ago and the extension.

TheStripes · 14/11/2020 15:20

Remember as well that the ones that sold this year could have been valued as long ago as a year beforehand if the sale took a long time to go through.

Original poster
BlushingBidder · 14/11/2020 17:15

Thanks all: haven’t seen anything I prefer but have seen lots of my much cheaper 2 bed properties in the area. I think I will see what the valuation says as that should decide it

OP posts:
Alexalee · 14/11/2020 17:52

What is the area? Share a link?

Heyahun · 14/11/2020 18:26

If you think it’s too high and you’d not really mind losing the house I’d just try lower it - worst case scenario they will just refuse to sell to you

But maybe they want the house gone quickly and putting it back on the market might be a hassle and they may not get a better offer anyway?

I’d deffo take the risk

WombatChocolate · 15/11/2020 17:44

I wonder if you’re just getting the usual old feet. Once people have had an offer accepted, many start to feel a bit worried about the big financial commitment and if this house is ‘the one’. It’s easy to do further research and find seemingly better houses or better deals and feel worried.

The key is to think really carefully about why you liked this house? What we’re the things that made you want it at the time and made you offer what you did? If essentially you decide you just don’t want this house now (it happens) then pull out quickly. If you decide you might have offered a bit much (remembering that prices you see for other so,d houses are based on market situations which were pretty different to the one we find ourselves in now and so aren’t totally comparable) but actually do want this house, then get the valuation done and think again. If the survey and valuation suggest it’s worth less, then you can negotiate. Also consider if they come back with the idea that the price you offered is right if you are actually willing to pay that, or have basically decided you won’t pay it.

Lots of thinking about how much you want the house needed. With the market moving and changing fast, it is hard to know what the ‘right’ price is because what others sold at a few months or couple do years ago aren’t really good comparisons to make now things are different.

Bluntness100 · 15/11/2020 17:46

You can try, most vendors will tell you to do one though. And you could be wrong or just getting cold feet.

Try but be prepared for them to no longer deal with you.

FAQs · 15/11/2020 18:36

What year was the £450 k one?

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