House over priced

[cheesecrackersandgrapes]

If you were renting in an area with low housing stock and the only property in your budget was at least £10k over-priced, had a small east facing very over-looked garden (sun in the morning), would you still buy? The house itself is nice (if a bit smaller than what we are looking for. In a v nice area. Apparently the owners won't drop the price any further and are holding out for the price they want.

Despite houses in the area going v fast, it's been on the market for a number of months and reduced in price once already.

There don't seem to be many options for us other than to keep paying high rent and waiting it out or to relocate.

Put an offer on the table that you would be comfortable with, and leave it for them to ruminate over?
Have you made personal contact with all local estate agents to register your interest and what you’re looking for/your position? Might get you a n early heads up for new places coming on the market?

Sorry you need to be clearer has it been valued by your mortgage supplier and they have valued it as ten k under? Or is it just your opinion it’s over valued?

Thanks yes we're registered with all estate agents and nothing else is available.

We have researched the property history and sales for similar properties in the area. Even the estate agent tends to agree! But the owners will not drop any further.

Ok then it’s really down to the mortgage company valuation op, I’m sorry.

If you can afford it (and many people seem to sadly think things are over priced but it’s miraculously the right price is their budget) then offer, you will know if it’s right or not when it’s valued for mortgage.

If you can’t afford it, move on. The sellers do not have to sell it for less.

How quickly would you waste 10k on rent? Whilst I can see why you don't want to overpay you are currently wasting money on rent and atleast you would then be on the property market - this is assuming there isn't anything on the market that isn't overpriced

It's worth what people are willing to pay for it! Previous sales history and comparisons are useful, but don't always give you the full picture. For example the previous purchase may have been a certain price due to work needing doing, which has now been done, quick sale needed etc etc. If it felt like the right house and I could get a mortgage then in the long run 10k will make little difference. Only you know if you really want the house, which is the most important thing.

I think with interest rates going up, and additional 10k is not insignificant, and depends in percentage terms on overall cost.

The house hasn’t been snapped up, so as yet no-one is willing to pay the price asked.

If it’s a great house with all boxes ticked, affordable and acceptable to lender, then it wold be less of an issue, but only OP has all the info and can make a call.

Hmmm we did this with no less than 3 houses.

The area we were looking in has an older demo (all had adult children (20s to 50s) no mortgages and / or mulriple houses. None needed to move for jobs/ school or space.
They had NO motivation to sell beyond fancying it and therefore were adamant about getting the price they had in their head)

All houses were overpriced (I did a lot of research) we left good offers on the table. None of them were accepted, some were still on a year AFTER we completed...
But they were good houses and all eventually got the prices they wanted as there was v limited stock and someone was desperate enough / had the budget and decided they could live with the premium and went for it.

The risk is that your mortgage company could value it lower and you wouldn’t get the mortgage you need.

Borrowing an extra 10k is about £60 extra a month on a 25 year mortgage at 5%. It’s about £45 a month at 2.5%. Assuming the interest rate you get on the rest doesn’t change due to shifting loan to value thresholds.

10k overpriced doesn't sound very much in terms of a 400k house, but does for a 150k house to me, so it does depend on the price of the house, I think.