Current property market - how much over asking price are you offering/accepting?

[erhsla14]

Also where in the UK are you based?

Just trying to get a feeler for what is happening out there currently. Possibly also trying to make myself feel better for making what feels like a really significant over asking price offer but could just be due to FTB nerves etc.
With the current property prices/market, it makes me wonder if prices are bound to crash and if I'll be making a loss whenever it is we sell down the line...

I've heard of two near me that have sold for over 40% of the offers over price.

We accepted an offer that was only just over asking (about 3%), but the buyer was attractive as in rented and happy to wait for us so they were worth more than cash to us. We could easily have held out for more from another buyer but we are now in a tiny chain of 2 houses which is brilliant.
Our purchase was accepted at just under asking (bit less than 4%). This is rural East Mids.

Heard via a property search agent (having lost out on 2 houses in a bidding war) that round us, stuff is going for between 5-10% over the ‘Guide Price’.

Im in the SE, about 38 miles from London.

Interesting, thank you. We've paid about 10% over asking.. I guess I might be subconsciously trying to justify this was in fact a good decision.

crazy offering over asking with the recession on the way and interest rates rising sharply

A house near me was on for £440k it went for £590. It had about 60 viewers and something crazy like a dozen offers

We viewed house yesterday where the seller was only interested in looking at offers at least 6% over asking (as it had generated so much interest and had offers in) which pushed it too high for us. Asking price if was already above the highest guide price threshold bit work had been done to it.

We accepted an offer 2% above asking in a similar area.

South London.

I offered 5% over asking on the one I’m in the process of buying. I’m in the North West. Before that I had offered up to 8% over asking and didn’t get anything accepted.

In the West Midlands. We accepted an offer 3% over asking price on our house (chain currently collapsed though as our buyers trying find a new buyer as they lost their original one), and we completed on another property last week which we got for asking price.

Live in central York. Just sold our house which was on at £450k. Had offerers of £475, £468, £465 and £458. Accepted the £467 offer as they were in great position and we really liked them. They sent us a lovely bouquet of flowers after we accepted.

Thank you everyone for the perspective. I know it’s stating the obvious but somehow paying 10% over on a flat coding 150k (I.e 15k) feels so much less risky than 50k for a house costing 500k even though it’s the same %. Do people really feel this difference and regret it down the line? Or does it get easier to digest..

If I was getting offers of 40%o over the asking price, I'd be dumping my estate agents as they obviously don't understand the market they're operating in.

Not quite the same talking about a crash, we bought our first 1 bed flat in 2006 for 167k. Market crashed soon after. Sold almost 5 years later for the exact same price but had to spend 9k on extending the lease to get that so made a decent % loss. However in that time our mortgage was about 75% of what rent had been (even at almost 6% interest) so as well as paying off capital we overpaid, increasing where we could as wages went up. Plus we had somewhere that felt like ours and security of not being moved on from rented (which had happened in our last two placed). So we still ended up better off even with a crash.

NE England here. We recently sold for 17k over asking on our property (had offers higher but they were in best position). We then had an asking price offer accepted on an "offers over" place that had been available for a month with few viewings.

It's hard to gauge sometimes, I think you have to really know the hyper local market. Your offer sounds sensible tho OP.

I bought just before a crash before and it caused some stress but ultimately turned out fine. I didn't make money on it, but neither did I lose any, and in the meantime I had somewhere to live!

I bought (offered on) Sept last year. The house was on the market at £350k which we thought was over priced, it dropped to £320 a week later. Now we were interested, viewed and offered asking price straight away. They tried to up us £5k but we held our nerve knowing we'd sold and were in temporary accommodation. Ended up getting it for £320k.

In the south west. Just be aware people are trying out silly prices at the moment. We know our local market pretty well as been in the moving process for a year and been watching closely for around 2 years. Was a house put up for 415 guide price, we knew straight away they would never get that. They reduced it once to 400 and then finally to 375 before it went which is the price we said right at the beginning it should have gone on for! My advice is research the market in depth and watch and you will get to know what is reasonable. For the record, we sold our house for 5k under asking price and house we are buying 5k under asking price so it's not always offers over.

The market is crazy at the moment so you have to be really sure you are doing the right thing. We did bid on previous properties but at the end of the day we were very firm on what we thought they were worth and had a budget so would not enter into bidding wars. I think we were quite lucky with this property as is with the same agent we are selling with so could push us forward.

20-25% over is pretty standard in my area. Occasionally hear of something going for 30% over. That's central Scotland (where everything is "offers over" to begin with).

I would be very cautious at present, particularly as a FTB. The market is over inflated with so many buyers bidding huge amounts over asking because of the effects of the very low interest rates and the 'free' pandemic money. However, all the signs are that the tables are turning and that prices will come down possibly a huge amount. We already have very high inflation and that will get worse. Banks have raised interest rates a small amount and are expected to continue to do this. Lenders are already getting more cautious. Credit is getting more expensive and more difficult to obtain. Households have less to spend and this has already become obvious in the official figures.

We sold at 10% over askingand bought at4% over.

We’ve just bought in Yorkshire for almost 20% over asking. We sold in SE for about 5% over.

Very interesting article in the Times today about this very same issue. The main driving force is the lack of housing on the market - it has dropped dramatically in almost all areas of the UK, creating a skew in the supply / demand chain. I am about to put my mums house in the market. She bought it for £94K in February 2019, nothing has been done to it at all and local estate agents have advised to put it on at offers over £115K. The house next door sold for £110K in February and one 3 doors up sold in 1 day. It was in for offers over £115K and I can’t think the buyers would have taken an offer below that the first day it went on the market.
If we do get £115K for it, that’s an increase of over 20% in just over 2 years.

Ours sold for £25k above asking (listed at £525k). We’ve put 4 offers in recently, most was 9% above and lost out. We’re much more cautious on overspending in recent weeks than we were at start of our search in Jan.

Some agents are putting houses on for ridiculous prices at the moment (for example a 4bed detached going on for £650k in comparison to £550k for one nearby that was on market a month ago) so they’re sitting on the market for a while.

I’m now wondering whether we should be a bit more savvy and offer more than we can really afford in the hope that we can knock it down at mortgage valuation stage? Feels wrong to do, but is that what others are doing to secure a home do you think?