Are we overpaying?

Winniepoo · 2023-02-16T22:33:41+00:00

Am a couple of weeks away from completing on a new house but am now worried we're overpaying. We had an offer of 470k accepted but Zoopla estimates the house at 390k - 440k and the mortgage offer from the company has a valuation of 390k, what should we do?

C4tastrophe · 16/02/2023 22:48

Believe the mortgage company, ignore Zoopla.

mondaytosunday · 16/02/2023 22:53

Is it a new house ad in new build? What have the others gone for? If not what have similar houses in the area gone gif in the last few months?
I'd ignore Zoopla, but your mortgage company should justify their valuation.

AlmostSummer21 · 16/02/2023 23:06

Ignore Zoopla! It's shite!

Will the bank loan you enough to buy it?

id be wary I'd done enough research if they're both much lower than my offer!

Londongent · 16/02/2023 23:06

With that information it certainly sounds like it. What are similar properties going for? Did you have a surveyor value it?

alwaysmovingforwards · 16/02/2023 23:15

Believe your mortgage valuation.

Original poster

Winniepoo · 16/02/2023 23:57

The survey came back today, it's not great, the roof needs some work, there's damp on the front wall and some bad brickwork. Potentially a drain issue he couldn't tell! No other property has sold over 400 ever it looks like and a similar property went for 390k 6 months ago. Shit I've been an idiot haven't I? This is a disaster. I'm just going to have to drop our offer. What would you offer?

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Original poster

Winniepoo · 16/02/2023 23:58

Thank you all for replying. It's not a new build it's nearly 100 years old.

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Original poster

Winniepoo · 16/02/2023 23:59

Bank will loan us enough to buy it as we're putting a significant chunk in so they'd get their money back if we had to sell but we wouldn't would we?

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Mondy · 17/02/2023 01:04

Use the survey and valuation to your advantage and reduce your offer. Don't forget that the seller will be scared that the same thing will happen if another buyer has it surveyed, old houses can throw up loads of issues when they're surveyed, the key to this is working out how much things will cost to put right and whether they need doing straight away or can be done in a few years (or even not at all).

Offer less due to the survey & valuation (start at £410k say, more than the valuation but significantly less than the overpriced asking price), say that the offer is conditional on the house being removed from sale with no further views or marketing and hold your nerve. You can always up your offer if necessary. Remember, they've got more to lose than you. Good luck!

C4tastrophe · 17/02/2023 07:05

The issues could be something or nothing. A few new slates, a bit of repointing. Why did the drains come up?
But the that’s irrelevant if you are overpaying by £80k/20%
Personally I’d go in at 390, raise to 400, state your reasons. If they won’t accept then walk away.

BernadetteRostankowskiWolowitz · 17/02/2023 07:16

Just go back and say the mortgage Co have said its worth 390 so that's what you will have to reduce your offer to.

Is anyone buying the home you are currently in?

pilates · 17/02/2023 07:20

You need to tell your sellers the property has been down valued by a great deal. You either walk away or try and negotiate a price reduction (a big one).

Petronus · 17/02/2023 07:25

Gosh absolutely don’t pay £470k, it sounds like it’s worth way less. I’d go to them with the valuation and take it from there whilst being prepared to walk away.

EarringsandLipstick · 17/02/2023 07:29

If the valuation is £390k & you are paying £470k that's a significant issue. Talk to them.

mummabubs · 17/02/2023 07:36

To echo others I'd trust your bank and survey more than zoopla (although any recent previously sold stats on there for comparable houses is also helpful). Assuming you haven't exchanged I'd definitely lower your offer. Truth be told they might not accept and offer with a big enough reduction to hit its true value, in which case you'll have to decide to proceed. Is the house so amazing to you that you wouldn't begrudge losing money on it? (I'm trying to think of a house I wouldn't mind potentially losing 80k over and am struggling!)

Sorry OP. :( What was it originally listed for out of interest?

hotfairballoon · 17/02/2023 07:37

With both a mortgage down valuation and a dodgy survey you're in a good place to be very reasonably asking to renegotiate. Our house was down valued (unjustly, all parties agreed) however we still renegotiated with our buyers. They stumped up more cash & we lowered the asking price to meet them. We bought at the top of the market last year and we did overpay by 10-20k because of competition in our area. It has given me sleepless nights but I'm confident that once the market picks back up we will make money on this over 5 years, especially with improvements we are making. It's a scary time to buy a house with so much uncertainty in what things are or will be worth in the near future. Best of luck with it!

mummabubs · 17/02/2023 07:37

*whether to proceed!

rainingsnoring · 17/02/2023 07:48

Winniepoo · 16/02/2023 23:57

The survey came back today, it's not great, the roof needs some work, there's damp on the front wall and some bad brickwork. Potentially a drain issue he couldn't tell! No other property has sold over 400 ever it looks like and a similar property went for 390k 6 months ago. Shit I've been an idiot haven't I? This is a disaster. I'm just going to have to drop our offer. What would you offer?

Drop your offer to 390K. You would be crazy to over pay so much and even more so in a falling market which is going to fall even more.
You will obviously need to be prepared to lose the house but you will probably look back with relief.

Wonnle · 17/02/2023 07:55

How much was the house up for when you made the 470k offer ?

Original poster

Winniepoo · 17/02/2023 08:33

It was on for 490k. We're moving from quite an expensive area to a much cheaper area, the same type of house here would be over 600k so it seemed like a bargain!

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Original poster

Winniepoo · 17/02/2023 08:35

Thank you all for your help, I think we're going to go back and offer 406k, a big drop but am prepared to walk away, much as it breaks my heart, we were so close to exchanging 😔

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Wonnle · 17/02/2023 09:18

Winniepoo · 17/02/2023 08:33

It was on for 490k. We're moving from quite an expensive area to a much cheaper area, the same type of house here would be over 600k so it seemed like a bargain!

So 100k higher than equivalent properties nearby then

EA pushing their luck and commission by the sounds of it !

Trouble is if the sellers think it's worth that then they will turn you down i'm afraid .
We looked at a bungalow near where we're living now a couple of years ago and it was way overpriced . Made an offer of 10% below the guide price and told them that was it , not going to increase it . Was told they have offers higher already , it stayed on the market for another 9 months or so with various different EA's and never sold . Kept coming up again a few times after that as well

The price kept being increased every time it was listed . As far as we know it never sold but the woman who owned it was a total fruit loop , i'm not convinced it was actually for sale myself

Greenfairydust · 17/02/2023 09:20

I would believe the survey and mortgage valuation and renegotiate the price accordingly. If they don't agree walk away.

Any other buyer will come to the same conclusion anyway so the sellers need a reality check.

Frangipanitime · 17/02/2023 09:25

Wow , that’s an issue. But you know when you buy that becomes it’s value.

personally I’d be going in at 390. Why did you and them think it had increased by 80 grand in six months? Have they renovated?

Candleabra · 17/02/2023 09:26

Winniepoo · 17/02/2023 08:35

Thank you all for your help, I think we're going to go back and offer 406k, a big drop but am prepared to walk away, much as it breaks my heart, we were so close to exchanging 😔

Why 406? There’s no science behind that offer. I would offer 390 max (but possibly not even that much given the survey). Be prepared to walk away.