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Original poster

Help - I think I got carried away with sealed bids

72 replies

PandaLorry · 14/04/2021 06:39

We saw a house recently which we loved. In an area where the right house doesn't come up often. It was also chain free which was a huge plus for us (we were considering going into rented to avoid losing our buyer and to avoid dragging the whole process out too much for our son who will need to move schools).

Anyway, other people liked it too so it went to sealed bids and I think we went a bit crazy and offered 10% over. It was competitively priced, but it was still not a cheap house. We got it but ever since I've been feeling a bit sick and have buyers remorse.

I feel like people in the area will look at us and think we are total idiots to pay that much. It's hopefully a long term home and not a house to us and we can afford it but I still feel like a mug.

DH thinks we maybe did overpay but is just glad to get it all sorted. We have a decent amount of equity and are porting our current mortgage so surprisingly the bank just approved it on an online valuation based on the address of the property. We haven't had the survey yet.

Any advice, anyone been in this situation? Does it get better or are we idiots?

OP posts:

LolaSmiles · 14/04/2021 10:19

If you love the property and would be sad to lose it then it's probably worth putting the extra on your bid.
Some people think every property should be a bargain. One of my relatives seems to think it's a badge of honour getting properties below asking price for some reason. I'd rather have the house we really want.

Hopefully it will be yours OP.

RhubarbFairy · 14/04/2021 10:20

We didn't offer over on this house, but we did pay asking. It had only come on the market 15 hours earlier and we were the second people in (we saw the first people leave). We offered 10 minutes after the viewing.
We spent that 10 minutes debating whether to offer a little under but ultimately decided that losing it wasn't worth the potential saving.
The first people wanted to come back for a second viewing but the vendors decided to accept and take it off the market as we were in rented and ready to proceed.

DeclineandFall · 14/04/2021 10:23

*Scotland always sells by sealed bids. The normal pattern in house buying in a popular areas is:
Lowball the first few houses you bid on, not get them.
Throw everything at the next house, get it, curse yourself.

You get over it.*

Lol. I'm in Scotland in a v competitive house market and this is so true. First thing anyone says when they are showing you round their new house is they think they probably paid too much for it.

BiddyPop · 14/04/2021 10:32

We paid almost 10% over the valuation price on our house, in a sealed bids situation, to make sure we got it. We were worried about it at the time, and also porting over the mortgage.

But then, as now, there were ridiculous rises in property prices happening, and this house - while needing significant refurbishment - was sound, in the right area and had great neighbours.

That was 18 years ago. We are so happy we didn't get cold feet. It really does have great neighbours and location, both locally and for getting into our city centre (for work). We have done a lot to make it our own over the years too. The only reason we might move out in the future is to get a smaller cottage nearer the sea (with sea views) as we head towards retirement in another decade or so.

(And if it helps, after the crash of 11 years ago, the price of the house dropped from its absolute high of almost double what we had paid for it 7 years previously, back to a level that saw us still staying in positive equity and has steadily crept back up again since in general terms in the estate. Ours is particularly well finished now so would likely get a good price, and we have paid off the mortgage in the meantime, with a couple of houses in the estate changing hands most years, usually relatively quickly and increasing in value every year).

If you can afford it, and are happy with it - the value of the house is what someone is prepared to pay for it. And if you are happy to pay that in order to have the house that you like (for whatever reasons they are), then that is its value.

LolaSmiles · 14/04/2021 10:35

DeclineandFall
I'm showing my ignorance here, but does the sealed bid approach change the asking prices in Scotland? Do they price knowing that most people will add 10-15% to the price?

DeclineandFall · 14/04/2021 10:43

LolaSmiles
Most places have an offer over price which is less than the valuation. Then the Home report is available so you can see what the property is valued at but in places like Edinburgh where property is very hot prices can go 20% or above over. Usually there an outlandish bid from someone who has missed out on multiple properties before.

8misskitty8 · 14/04/2021 11:23

@LolaSmiles. In Scotland the seller has to get a home report which has its value and also has a surveyors report. Various areas are noted 1-3, like roof, electrics, house structure etc. 1 being fine and anything a 3 needs immediate fixing.

For a few years most places were marked at offers around home report value and would go for around that mark. Last few years in Edinburgh/lothian it’s went back to marketing at offers over, generally 5-10k under the home report value. If your lucky you get it for home report value.
I’m in East Lothian and things are on the market for a couple of days and either under offer or go to a closing date which is sealed bids. Last few houses round about us have went for 15-20% over the home report value. Even houses needing work done to them.

BluebellsGreenbells · 14/04/2021 11:27

You won’t be stuck on this price is the survey comes back in need of unexpected works.

It’s still negotiable.

Wait for the survey

LolaSmiles · 14/04/2021 11:27

DeclineandFall 8misskitty8
Thank you for explaining. Having the report before offers goes in seems like a great thing.

NightCzar · 14/04/2021 11:33

There's the cost of renting and then the fact that mortgage payments are going to your house, and rent payments to someone else's.

Original poster

PandaLorry · 14/04/2021 13:06

*You won’t be stuck on this price is the survey comes back in need of unexpected works.

It’s still negotiable.

Wait for the survey*

I did think this, but presumably we could only negotiate down by the cost of the works anyway? I'm not sure as I've never had issues show up on a survey before.

OP posts:

suggestionsplease1 · 14/04/2021 13:10

@MaryGubbins

Scotland always sells by sealed bids. The normal pattern in house buying in a popular areas is: Lowball the first few houses you bid on, not get them. Throw everything at the next house, get it, curse yourself.

You get over it.

I had to smile at this - exactly my situation!

Soontobe60 · 14/04/2021 13:12

My DD offered 10% over asking after being less generous on 10 other houses. She was worried that the mortgage desktop valuation would be nearer asking price but it came back at her offer price. Survey is the same!
My DM has had 3 offers on her little bungalow that are 30% higher than she paid for it 18 months ago, and 20% over asking!! It’s madness.

DespairingHomeowner · 14/04/2021 15:26

I've overpaid by about 10-20K on the house I moved into a month ago, thinking there was 'nothing to do' & will probably spend another 20K on updates...

Immediately before exchange, I got cold feet (mainly due to feeling I have overpaid), and I went to look at a few other properties (not with same agent) - this helped to settle my mind that I was buying the right house

10% is a fair bit of money, so I do understand, but equally it probably secured you the property, and you might have had to pay some over anyway (2 family members have had to pay 5% over asking AND be chain free to secure properties)

I'd say move ahead, keep an eye on other properties coming on/view if you are keen (even a drive past can tell you its not better), possibly see what valuation & survey say...

You can always look at other houses which will set your mind at ease one way or another, obviously don't let selling agent be aware of either this or your reticence

If you would like to renegotiate, you have to wait for survey and see, and also probably max 5% off

If you are saving on SD that is something to consider too

Having now made the move, I am quite at peace with my choice: this house meets my needs, and although it has cost me realistically 5% more than comparable houses on the street (same build, extension etc) - I prefer THIS house to those... and the owners of most comparable house are currently knocking down their downstairs and renovating which will easily cost the amount I 'overpaid' and saves me the hassle

What SPECIFICALLY drew you to this house, & can you find it cheaper elsewhere?

DespairingHomeowner · 14/04/2021 15:29

@PandaLorry

*You won’t be stuck on this price is the survey comes back in need of unexpected works.

It’s still negotiable.

Wait for the survey*

I did think this, but presumably we could only negotiate down by the cost of the works anyway? I'm not sure as I've never had issues show up on a survey before.

Also, I was hoping my mortgage valuation would help me to renegotiate: it did not as I had a decent amount of equity to bring (which may also have helped me secure the property)

If its down valued you have STRONG grounds to renegotiate

Re survey - you can request discount of cost of works, if you are lucky vendors might meet you halfway for structural works, but no guarantees, especially if there has been a lot of interest in the house, in which case they may tell you no negotiation or they will remarket if you reduce price

Original poster

PandaLorry · 15/04/2021 14:05

I'd say move ahead, keep an eye on other properties coming on/view if you are keen (even a drive past can tell you its not better), possibly see what valuation & survey say...

I think this is good advice and this is what we have decided to do. There's absolutely nothing else on the market which is even close to meeting our needs, let alone anything chain free. So I do need to bear that in mind I think.

OP posts:

DespairingHomeowner · 15/04/2021 14:27

@PandaLorry: them being chain free is also worth something as it means they actually ARE moving

My vendors have moved from London to NE England (retiring), so they wanted to move. A relative recently had their house purchase fall through after paying for surveys, solicitor etc as vendors made redundant. The security of knowing they def will go ahead, & being able to plan your life/peace of mind was v attractive to me

palacegirl77 · 15/04/2021 14:33

We went over by 30k (around 10%) which is standard in SW Sheffield. We knew it was the house for us and since moving in 2.5 years ago we have LOVED it. The price has already increased by that much plus weve had the loft converted and this will be our forever home - we'd been renting for 10 years prior to that and spent approx 75k in rent! Now THAT is a waste of money! Just enjoy your forever home.

Original poster

PandaLorry · 15/04/2021 14:44

A relative recently had their house purchase fall through after paying for surveys, solicitor etc as vendors made redundant.

This happened to a couple of friends and was a huge worry of ours. Also some people seem to take forever to find something to buy and you're left in limbo.

OP posts:

Magnificentmug12 · 15/04/2021 14:47

Don’t have buyers remorse. You did the right thing!

soughsigh · 15/04/2021 15:01

I had buyer's remorse after buying both my properties and I paid less than the 'offers over' price (I live in Scotland but didn't go to sealed bids).

I think with a big purchase like a house, you are always going to second guess yourself. Hopefully in a year's time, you are settled and loving your new long term home.

UndomesticHousewife · 15/04/2021 15:32

I would pay what I thought the house is worth to me. If that's the house you want and it ticks all your boxes you would have been kicking yourself if you'd have lost it for the sake of £xxx if you actually have the money.

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