How much to offer when the guide price is between £1000000 to £1050000

[windyWillo]

We are trying to buy a house in this crazy market and I am not sure how much to offer if it is listed as guide price is between £1000000 to £1050000. Would it go above £1050000 if it goes for best and final offers ? If so how much, any predictions please and also any suggestions for first offer please? It is in an extremely popular location and there are loads of viewings.

It all depends on who wants it and how much they are prepared to pay for it. It could go for below the bottom level but it could also easily go above.

A neighbour here was on the market for £999k and eventually sold for £1.2mil.

Thanks TheSnowyOwl. Omg it shows how crazy the market is isn’t it. 200K over is a huge increase!

Bump

£1049999 & a bag of cheesy Doritos?

In this climate to be in with a chance you have to work out to the nth degree your absolute maximum, ask if you are comfortable with that, ask yourself if you will be happy living in that house for that price, and if so, then offer that. Prices are nuts, houses are going way over asking at last and final. If you really want it, you have to be (within your financial limits) aggressive with offers.

But wouldn’t the bank will under value the property if we offer to pay way over the maximum guide price as we require a mortgage?

Please anyone

How much the bank will lend you and how much it is 'worth' are two very different things. If the bank don't think their money is protected then they won't lend it to you. If you've a large deposit and the value of the house exceeds the amount they are lending you then you'll be fine.

Offer what you can afford to pay. Be prepared to move on.

Good luck 🤞

Extremely random price. £1m to £1.05m? Seems very strange. But people on the Internet can have no idea without knowing the property and area, i.e. the value. You should be able to work out what it is likely to go for based on similar properties nearby then, if you really want it, offer a few grand more than that.

It may well go above a million + 50 at best and final.

Paying over ask will not affect your mortgage, but obviously you cannot guarantee what the mortgage company will value it at (this would be the same if you’d paid under ask).

Decide how much you want the house, be clear what the average £ per sq foot is for the road, decide your absolute max and go for it.

You can always drop the offer after the survey.

Thank you so much for comments. Really appreciated in these stressful time.
Our worry is for best and final should we offer more than the higher limit of the guide price which is 1050000. Say for an example £1075000?

@IrisVersicolor the issue is well above can be 10K above or 50K above so so hard to guess

Nobody can answer your question as how much it will go for will depend on other people. What they can do is tell you how to approach it, and several people have kindly taken the time to do that. Good luck!

We offered £1.1m on a house listed as “offers over £950k” and we weren’t the highest bidder. We did, however, get it due to our position - no chain.

it was a property we just couldn’t miss though. First property to come on the market in that location in three years. Our dream village and it will be our forever home. We worked out what we could afford to pay and offered that and stopped trying to second guess what other people would bid. It’s awful not knowing what the other offers are though.

The house came with a half acre garden though in a prime location so a lot of the value is in the land. We didn’t have any issues with mortgages and undervaluing as a result.

At the time we felt we had paid more than it was probably worth but now feel vindicated as a house 1,000 square foot smaller on a plot half the size has come on the market for £1.2m. I am sure the bubble will burst at some point but for us it’s the house we’ll have forever so it doesn’t really matter.

You don’t even bother telling which part of the country you are looking at. Not all England is booming, for most of London flat market, the only thing increasing is the interest rate.

Really depends on the area. One I’m buying in things were selling for over but the craziness is over now.
anything over £1.1 million is falling through or sticking. Actually things around the £600/£700k mark too.
Not much comes on between £700 and £1.1 million so hard to gauge. One came on this week so I’ll watch that with interest.

We recently offered 15% over on a house with an £800k guide price and it was accepted in a best-and-finals process.

We’d lost out on a previous house by offering 5% over on a £950k property, so we ended up lowering our budget so we’d be strongly placed to bid when ‘the house’ eventually came up in that price range.

Much like @BookwormButNoTime , we then found a uniquely lovely place that we knew would be our forever home, so we went in bold with our 15%-over offer. We needed a mortgage and knew there might be a risk of down-valuation if we went significantly over the asking price, so we ensured that we had enough cash set aside to pay the difference if needed when deciding on our offer value. We’re not worried about ‘overpaying’ as for us it’s an investment into a yearned-for lifestyle change, plus we won’t be moving for decades (if we ever leave!).

We don’t yet have the mortgage valuation but I’ll be curious to see where it lands!

I'd suggest speaking to local people and the agent. It varies so much by area plus what you can afford, how much you want it and how much it is worth to you.