Feel gutted, have we paid too much....

[Shandysue]

Hi MNs, reaching out at a wobbly time, looking for some perspective.

It concerns a house that was listed originally at 475,000.
A year on the market, it slipped down to 425,00 so we viewed it.
Loved it, didn't offer at all though still that bit too much.
It went under offer from someone else, we told agent's we'd be in the background if anything went wrong.

So weeks later the agent calls, CLAIMS the buyer's pulled out and isn't it spooky as we'd JUST emailed to ask, etc etc....
We made an offer of 398,000, came back they needed 400,000 so we met that and it's ours.
HOWEVER
since exchange I can now see that a 3 bedroom, smaller garden but on same row sold in November 2020 for only 325,000.

I feel such an idiot. Had been so happy about the house and thought we'd offered low enough under asking but now feel the agent saw me coming. questioning if it was even true that the original buyer pulled out and think we may have outbid them unwittingly which I'd never want to do...

This house has 4 bed and a much larger garden than the 325 one but my gosh I'm just so angry I didn't offer much less, like 380,000 rather than 400,000. esp as it s a terrace.
I keep thinking about what that money would have bought.
I know it's done now. but I'm worried it's resale will be much lower and that we've put our money into a very overpriced property.
I figured if it had come down from 475,000 originally they wouldn't consider much under 400,000. I've lost houses before by being too low on starting prices.

Also since the similar 3 bed sold in November 2020 house prices have risen, even in the 9 months between then and now.
but it doesn't comfort me. , how can I make peace or learn from this??...
Thanks all xxx

@FurierTransform

What does the Zoopla estimate say it's worth and how does it compare to houses that are being listed right now, in the same area? If it's in the ballpark for price I wouldn't worry.

It will be what she paid or there abouts, zoopla recalculates based on the sale price Ie it becomes it’s new value.

You can't compare the two. And there are several reason why one house may sell for more than another other than location and square footage. On my street all house are pretty much identical - Victorian terraces extended out 3m across the back and most lofts converted. Some are done up more than others, but square footage and amount of bedrooms the same. But prices have ranged from £850k to a whopping £1.2m in the last year. And there's one listed for £1.35m, though it is ever so slightly bigger as it has a bay window. I paid £920k this past summer, but I know across the street paid £1m over a year ago.

We've offered on a house at 130k more than the typical price for a large house on our estate. But... its 5 bed not the typical 4 bed, has a double height extension and has a great garden due to being a corner plot. So you just cant compare it ith any other house on the estate.

Next door bought the same house without the extension for 230k less 2 years ago. Do i feel gutted? Yes. But that was 2 years ago and this is the price of things now.

Be happy with what you have. We werent ready to move 2 years ago but now its perfect for all of us...

Everyone, thank you SO much.

This forum has been invaluable to me as I’ve navigated the whole buying and bidding process without much guidance and so I am very grateful for the spectrum here of various ways of kicking me up the bum and telling me it’s ok!!

Valuable to say the least. Really appreciate it. Thank you all for responses xxxx

Also the housing market is crackers

Job done, excellent work ladies home for tea and medals, ☕🎖️ enjoy your new house op. 🏡

Extra bedroom, bigger garden, when gardens are now at a premium, and compared to a time before prices went insane? I think you are doing okay.
The other house could have been sold to relatives, had damp problems, needed rewiring, could be all sorts of reasons why it might have been cheaper, quite apart from the fact that prices have rocketed since then.
You paid what it was worth to you. When you offered, you decided you'd rather have that house than that sum of money. That's all that matters.

Sounds like a good deal - higher price justified by larger garden and extra bedroom. Congratulate yourself on paying £75k less than original asking price, not paying £75k more than the a 2020 price of a smaller house.

Me again MNS!
so big eek here, I've got into the house and it needs more work that I'd thought. It's also an E rating on EPC and is big and cold - costs a fortune to heat. Neighbour mentioned something about what I'd taken on and now I am convinced I've bought an unsellable house. Low EPC ratings are hard to mortgage, am I right? I keep thinking of how the govt will impose all sorts of fines on low EPC houses in coming years and
I think I've put my money into a money pit!

I just can't get over the pitfalls of this house. I think I've made a mistake!!

Our 4 bed house is valued at £75-£90k more than the 3 bed next door so sounds right to me. Enjoy your new home.

Is this your home, or a financial investment?

My house is a naturally cold house. It’s still worth more than most houses on this street.

What do you want from this house? Happy home? Decent investment opportunity? Enough space for your family? What?

Articulate why you bought/offered on it.
What are your 1-year; 5-year and 10-year plans?

Does this house - cold and low EPC-rated - still serve your needs?

If yes, stop worrying.
If no, what are your options otherwise?

Seriously it sounds like buyer’s remorse which is very common and usually very temporary.

If you like the house and got a mortgage without difficulty, someone else will too. An ‘E’ EPC rating is usually boosted by some very simple stuff - loft insulation etc.

Don’t panic!

Don't be overwhelmed by the low EPC, that's changeable. There's probably plenty that you can do to make the house warmer. It's natural to get cold feet about such a big commitment but if you throw yourself in to making it feel like home you'll probably feel better.

Op, you can do things to improve your house gradually:
Good insulation in loft
Cavity wall insulation
Efficient boiler
Double glazing
Decent front door
Please don’t panic, I’m sure it will be fine long term

The surveyor will have known their stuff and confirmed the price is fine. Don’t go by zoopla, it can be misleading due to home improvements, extensions etc

It’s really normal to have doubts and to discover some work that needs doing. Think if the house as a long term home and long term investment. Think of why you chose the house in the first place. In 5 or so years you’ll have the place decorated and updated exactly how you want it.

Don't panic but please don't have cavity wall insulation as we've so much damp because of it- the cavities are there for a reason!

Ah thanks again MNs for all your help. It’s no good though, I am utterly convinced this was an overpriced and oversold house.

The 3 bed that sold before was part of the same development, not just a dissimilar house nearby. So quite directly comparable.
It’s a terraced house. And a 4 bed detached house in better condition sold recently for a similar price to mine.
Think I’m in shock. I feel sad about it. We need a nice place to live, but I feel I’ve Paid nightly for a place that won’t have much resale Value as it’ unusual and sat on the market for a year. Sorry to be a Debbie downer. Appreciate all your help xoxo

I’m saying this gently, are you okay, OP?

It seems that you got a bargain for a house (really, a bigger garden and a bedroom in a rising market, you did well) but you obsessed over it a fair amount. You’re now obsessing over EPC ratings which frankly I’ve never given a second thought.

If you’ve already exchanged, you’re IN the house, right? Is there something else going on with you that means you’re obsessing over these minor things and catastrophising, rather than just enjoying it?

But it’s not directly comparable, as it’s a 3 bed and yours is a 4 bed! And yours has a bigger garden!

The 3-bed sold a year ago for £325k. Add 10% due to the rising market for houses, say £30k. Your house has a extra bedroom and bigger garden. Add another £50k (at least). The £400k you paid (a £75k discount on the original asking price) doesn't seem excessive.

£325k for a 3-bed terrace a year ago vs. £400k today for a 4-bed detached feels out of kilter. Someone got a bargain with the 4-bed detached - feels a bit unlikely in the current market - or the survey found something wrong with it? Another reason? Who knows.

Paying £400k for a house is a huge financial commitment and very stressful, and you're reacting by double guessing yourself and seeing demons where none exist. Absolute worst case, you slightly overpaid. Best case, you underpaid. Even if you overpaid, no-one knows what the market will be like in several years time when you come to sell. That bigger garden could attract a premium price.

In the meantime, you have a house you loved when you first saw it. And if you hadn't bought it, where would you be now? Very probably, kicking yourself for missing out. Chances are, come spring / summer when you're relaxing in the sunshine in your big garden, you'll be back in love with the house.

OP I think this is normal feelings.
You liked the house and bought it and so someone else will too. I bet there are small things you can do to improve the EPC rating.

We bought last year when the market was crazy, a (virtually identical) house came on the market further down the road three months after we moved in for 15% less, it eventually sold for 10% less than ours (but in a rising market). Ours was in a better state cosmetically but we have had no end of problems - the boiler packed in (was supposedly new, we have a gas safe certificate stating that it was installed in Nov 2019 but the person who fixed it said it was a 2015 model number) and we have had loads of leaks from dodgy plumbing. It has cost us around £5k to fix problems so far - and this was supposedly a turn key house!

However the house down the road apparently needed completely gutting. The loft conversion was not done properly and so needs redoing, the back "extension" was just a lean-to with no foundations etc (my DH has been talking to the builders). So you don't necessarily know the full extent of what they have bought just from the estate agent's photos.

FWIW every house I have bought I have felt remorse for the first few months but it goes. Are you planning on staying there for a long time? We are and it makes a difference as the price doesn't matter until you come to sell.

@Shandysue

Ah thanks again MNs for all your help. It’s no good though, I am utterly convinced this was an overpriced and oversold house.

The 3 bed that sold before was part of the same development, not just a dissimilar house nearby. So quite directly comparable.
It’s a terraced house. And a 4 bed detached house in better condition sold recently for a similar price to mine.
Think I’m in shock. I feel sad about it. We need a nice place to live, but I feel I’ve Paid nightly for a place that won’t have much resale Value as it’ unusual and sat on the market for a year. Sorry to be a Debbie downer. Appreciate all your help xoxo

OK, let’s say you’re right.

(Clearly I don’t think you are, and neither does anyone else who has commented, but let’s go along with the assumption you’ve overpaid and your house will be so unusual it’s hard to sell again.)

What are you going to do?

Are you so unhappy you’ll sell it? And risk losing not only the ‘nice place to live’ but also finding out definitely that it was overpriced AND having to look again for something else AND paying more removal fees solicitor fees etc?

Or are you going to stay put for 3+ years? In which case, WHY does it matter what you paid now? The market may go up or it may go down, and stressing out now over future house prices when you come to sell in future is a colossal waste of your mental energy. You can’t predict the future and you can’t change the past.

Here’s what you should do.

Live in your house. Enjoy the space. Have fun decorating.
Give up your RightMove obsession, you’ve absolutely no need to be checking those property sites, you’re not looking to move. It’s fuelling your anxiety.

Well, they wanted £400k. Your only other option was to walk away. I’m sure it will be fine, don’t worry.

Thanks all. Some very good observations and Views.
And yes I think I always feel I could’ve done better - and like they saw me coming.
Sure they wanted 400K but I went in so close to that I reckon they saw it as my threshold.
So crucial to be a hard negotiator when hundreds of K are involved.
I tend to be a bit of a pushover so always look out for ways I could’ve spoken up more.
No, I don’t want to sell it on immediately, and my focus on the EPC is because houses that are inefficient will drop in value as time goes on.
And yes. I tend to analyse things A LOT....you have all been very kind.
Thanks again for all the support MNs xoxo