Oops! Offered too much - WWYD

[BlushingBidder]

NC as embarrassed

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

Also did you want to post a link, tricky once offer is in, survey might assist.

@WombatChocolate: thank you for the thoughtful reply

I do still like the house, it suits my needs, mainly due to the extension. The issue is that the extension (3 small interlinked rooms) covers most of a small garden, leaving just a patio which is probably 2x7m. I can live with the compromise as I’d rather have those rooms, but worry about resale as I imagine most people would prefer to have a garden/just move on to another house... and I don’t plan to be there long.

The extension also makes it hard to compare vs others, but this road has lots of unextended otherwise identical properties which have sold for less than the 450 I calculated my offer off. That one was at the top end andI now realise has a much bigger plot. I suppose ideally I’d like the same house with enough land for an actual garden but haven’t found that so this is the compromise. It narrows resale pool quite a lot I think.

The other concern I have is no potential to add value (eg loft extension) but I can deal with that ... I’d just move!

I hope the valuation will clear things up for me, I’d like to buy it, but not to massively overpay and it’s hard to work out that I’m not doing that now . I’d like to have that data to bring to any renegotiation, and if valuation comes back same as my offer it’s not a problem at all and I would continue with my mind at ease. Meanwhile, I’m thinking about what to do if valuation v different - 10k or so I would deal with, more than 20 I might have to walk away

You sound really unsure OP and if you aren't planning on spending long living in this house I would back out now and find something that suits you better at a price you are willing to pay.

@FAQs

What year was the £450 k one?

Thanks @FAQs . The 450 was this year, others under offer now at asking price of 425 & 435.... it’s mainly a question of what value the extension is adding, vs taking away by leaving v little garden. If there was a decent garden left (eg the original 30m2 or so, not huge) I wouldn’t be thinking about this

Thanks to everyone who has taken time to reply to my thread: it’s really helpful to have different points of view

@sunshinesupermum: thanks... I am leaning more to liking it, I just think I’d rather live in a village than London in time, but not sure if that’s pandemic fatigue talking and I will think differently in a year or so! I think it’s going to be my last London place & then I will move right out - but so much depends on jobs etc

It’s in budget for me, but I realise this area is cheaper than others I’ve looked in, so that means I may have unthinkingly over offered. I’ve been looking hard but not found anything ‘ better’ over quite a broad area so that’s helping the decision making

How many square meters is the house? Just established the price per sqm like the rest of Europe does to compare the relative value of this property versus the others that traded at low to mid 400’. Of course other parameters can add/reduce valuation but that s a good base to value the extension.