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Original poster

Realised we probably offered way too much

48 replies

Bakedbanana · 12/08/2022 09:39

We are in the process of buying [and selling] and had taken a long time to find anything. We panicked a bit once we found a house we liked that we offered a lot over the asking price. It went to best and final so I think there were 2-3 over asking price offers. Our offer was accepted. However I'm now thinking we offered too much and will make a loss if we need to sell in future.

We are getting a survey and valuation done. If the valuation comes in in line with the asking price can we just reduce our offer? Even if no big issues with the survey? Vendors are downsizing so don't think it will mess up their purchase.

I know it s a bit rude but i think it's a business transaction and trying not to get emotions too involved in it.

We are buying without a mortgage.

OP posts:

ChateauMargaux · 12/08/2022 13:31

You will have to weigh up pulling out and not finding anything else that fits your needs. The accepted offer was the price you need to pay to outbid the other interested parties. Unless there is something on the survey that was not obvious on viewing or the valuation causes a problem. If the valuation is lower, then negotiation might be possible but with little else on the market and two other hot buyers, the odds are against you.

Original poster

Bakedbanana · 12/08/2022 14:23

The move is a relocation that I'm getting cold feet about, which I think is the problem. DH reminds me I did say 'I love it' when I viewed the property so perhaps it's all the other worries getting in the way. If I could imagine living there for 20 years I wouldn't mind overpaying but....

Maybe I want to pull out and am just looking for excuses.

OP posts:

ImWell · 12/08/2022 14:27

Bakedbanana · 12/08/2022 14:23

Maybe I want to pull out and am just looking for excuses.

If you are going to pull out, the best time to do it is as soon as possible.

SafeHeaven · 12/08/2022 14:37

The whole point of a valuation is so you don’t pay over the odds.

if the vendor puts their house back on the market, the same thing will happen, the new buyer will be told they’re paying too much and will try to price negotiate.

the house we bought was up for 425k, but our mortgage valuation came back at 375k. we obviously re negotiated the price.

Honeyroar · 12/08/2022 14:44

My mil’s house went to final offers and the winning couple also tried to negotiate their offer a couple of weeks later. The estate agent told them final offers are not negotiable afterwards- if they didn’t stick to their offer it would be sold to the next person down the list of bids. So the couple stuck to the bid.

You’re not only messing the seller around, but the rest of the people in the list of bids, who might have been more serious..

Anniefrenchfry · 12/08/2022 14:50

SafeHeaven · 12/08/2022 14:37

The whole point of a valuation is so you don’t pay over the odds.

if the vendor puts their house back on the market, the same thing will happen, the new buyer will be told they’re paying too much and will try to price negotiate.

the house we bought was up for 425k, but our mortgage valuation came back at 375k. we obviously re negotiated the price.

No it’s not the point at all.it’s for the mortgage company to be assured they get their money back if you can’t pay.

Johnnysgirl · 12/08/2022 14:57

rainingsnoring · 12/08/2022 13:20

Sure but the value of houses has risen exponentially over that exact period.
That's clearly not going to happen again. You were lucky with your timing and that has impacted on you feeling it was 'worth it'. People buying now will not be so fortunate and so paying over value makes far less sense.

Show quote history

That's clearly not going to happen again
??
How is this clear?

Dougieowner · 12/08/2022 15:06

Anniefrenchfry · 12/08/2022 14:50

No it’s not the point at all.it’s for the mortgage company to be assured they get their money back if you can’t pay.

Show quote history

Exactly, and as the OP has said they are buying without a mortgage it doesn't make any difference apart from making them think if they are willing to pay that amount.

Depends on the situation the seller is in.
As I said in an earlier post, we told the EA that any last minute requests to drop the price would not be entertained, if they hadn't immediately agreed to honour their B&F then they would have been dropped like a hot potato.
Others though are so scarred of loosing the sale (and the inconvenience it can cause) that they may well go along with it regardless of how tight it may make things.

ImWell · 12/08/2022 15:07

SafeHeaven · 12/08/2022 14:37

The whole point of a valuation is so you don’t pay over the odds.

if the vendor puts their house back on the market, the same thing will happen, the new buyer will be told they’re paying too much and will try to price negotiate.

the house we bought was up for 425k, but our mortgage valuation came back at 375k. we obviously re negotiated the price.

No, that’s not how it works. There is not any one “correct” valuation for a home, it’s a subjective quantity that can only be worked out from how much someone will sell it for and what someone else will buy it for.

One buyer may be desperate for a workshop and double garage, while another may not care, so they would value a house with or without these differently.

Unless you are stretching yourself there’s no need to have the mortgage company’s valuation as the buying price.

keeprunningupthathill · 12/08/2022 15:08

I think if you make an offer you stick to it or pull out completely. It's not like recession/inflation is a recent surprise.

Allthegoodnamesarechosen · 12/08/2022 15:15

Well, you can try. Personally, unless I had no other proceedable offer, I would decline your revised offer. Even if I had to put it back on the market, I wouldn’t want to go ahead with you, because I would worry constantly that you might have another go at price reduction before exchanging contracts.

nothing personal, I’m sure you are actually a nice Person who keeps their word, but in this instance you are not behaving as I would want a purchaser to behave.

pennysarah · 12/08/2022 15:24

Either buy the property as intended (unless genuine structural issue shows up) or don't if you are having second thoughts. But make up your mind soon as if you pull out you are wasting everyone's time.

If you drop the offer and the purchase doesn't go through just be aware that you probably won't be able to purchase through that estate agent again unless you are the only bidder on the property. I'd be worried you'll have a mark against your name if you put in any further offers.

hoorayandupsherises · 12/08/2022 15:43

For me, in the vendor's place, it would depend on whether your lower offer was still higher than the second-highest and then what was the position the second-highest bidder was in. If I was in a hurry to sell, I would have to give it some serious thought given that you are cash buyers.

Original poster

Bakedbanana · 12/08/2022 16:04

Yes I don't think we would carry on with the move at all if we didn't go through with this property. It's not perfect but took us ages to find.

Yes would think we would be blacklisted by the estate agents and it's a small place so probably all of them!

We are not cash buyers, we are funding purchase with sale of our existing house.

OP posts:

ChateauMargaux · 12/08/2022 16:52

I am sorry you are feeling the way you do about the move. Moving is unsettling and there will be pluses and minuses to moving and to staying. It is hard to make these decisions. We have moved quite a few times and every time, the pros and cons played out as we predicted. The cons still hurt (I am pathologically unable to let things go!!) but thankfully the pros also panned out!!

w0rkschmurk · 12/08/2022 17:04

We thought we offered too much on our house (we were desperate and in a stressful living situation) but as the months have gone by, we've been checking the sold property prices and people have paid even more ridiculous amounts for similar properties in our area. It's just been necessary at the moment.

CounterTop · 12/08/2022 17:19

Bakedbanana · 12/08/2022 16:04

Yes I don't think we would carry on with the move at all if we didn't go through with this property. It's not perfect but took us ages to find.

Yes would think we would be blacklisted by the estate agents and it's a small place so probably all of them!

We are not cash buyers, we are funding purchase with sale of our existing house.

Are you going to offer the eventual buyers of your current a discount?

rainingsnoring · 12/08/2022 18:55

Johnnysgirl · 12/08/2022 14:57

That's clearly not going to happen again
??
How is this clear?

Show quote history

Gosh, do you really want a long answer to that?!

girlmom21 · 12/08/2022 19:18

We knocked the price down after valuation as we weren't willing to pay more than the house was worth in case anything happened and we needed to sell. We were willing to lose the house if the vendor said no. Luckily they didn't.

Honeyroar · 12/08/2022 20:57

girlmom21 · 12/08/2022 19:18

Was that after it went to final offers?

lot123 · 12/08/2022 21:01

Did you post a few weeks ago when you were trying to decide on your bid? I can't remember the exact numbers but I think the OP was going to offer £75k over the asking price but won it at £525k. Or something like that.

It's a tough one, it's a bit unethical but if you're prepared to lose it, you can try.

girlmom21 · 12/08/2022 21:02

@Honeyroar to be fair, no, we were the only offer as far as I know

Move22 · 19/08/2022 09:16

@girlmom21
how much did you go over by and then how much did you reduce it by?

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