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Original poster

Are we overpaying?

88 replies

Winniepoo · 16/02/2023 22:33

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?

OP posts:
RudsyFarmer · 17/02/2023 11:06

Soapyspuds · 17/02/2023 11:03

Oh god, the sale has fallen through

And you are actually surprised? Jesus fucking wept.

Honestly you’re being so aggressive with your responses! What’s got you so rattled today?

pilates · 17/02/2023 11:06

Yes you have done the right thing - something better will come along

teachingbean · 17/02/2023 11:08

Winniepoo · 17/02/2023 11:01

Oh god, the sale has fallen through, they weren't willing to come down AT ALL! It's crazy, tell me I've done the right thing, I feel sick. It was too much wasn't it? Shit we visited the school and everything, back to the drawing board. Thank you all x

Wasn't meant to be. Onwards and upwards

hotfairballoon · 17/02/2023 11:09

@Soapyspuds wow, you're not only majorly aggressive, you're wrong. The OP has done the right thing and is fully justified in reducing the offer.

SeriouslyLTB · 17/02/2023 11:09

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?

This is all pretty standard in an old house tbh. But your call if you walk away.

Frangipanitime · 17/02/2023 11:09

You did the right thing, you can’t pay 80 odd grand more than it’s worth, Christ. You will find another place without gouging sellers

Original poster
Winniepoo · 17/02/2023 11:10

Soapyspuds · 17/02/2023 11:03

Oh god, the sale has fallen through

And you are actually surprised? Jesus fucking wept.

Not surprised they didn't accept it no not really. Surprised that this has all happened well yes, I honestly didn't expect the bank to down value so much. The house looked in really good condition too so I didn't expect the rising damp, drainage issues, dodgy chimney stack etc etc. This time yesterday all was fine and we were looking forward to moving.

OP posts:
SeriouslyLTB · 17/02/2023 11:11

Winniepoo · 17/02/2023 11:01

Oh god, the sale has fallen through, they weren't willing to come down AT ALL! It's crazy, tell me I've done the right thing, I feel sick. It was too much wasn't it? Shit we visited the school and everything, back to the drawing board. Thank you all x

Don’t stress OP. You’ll end up in the house you’re supposed to. The sellers would have been bonkers to drop that much and you said you were willing to walk away, and that’s what’s happened. I’ve lost some houses and felt devastated but always ended up in a better one! X

Wonnle · 17/02/2023 11:16

Winniepoo · 17/02/2023 11:01

Oh god, the sale has fallen through, they weren't willing to come down AT ALL! It's crazy, tell me I've done the right thing, I feel sick. It was too much wasn't it? Shit we visited the school and everything, back to the drawing board. Thank you all x

Of course you have done the right thing , if you had gone ahead with the purchase you'd have paid 470K for a house that's only worth around 390K

That house will still for sale a long way into the future as well if the owners think it's worth that much more than market value , with the issues the survey pulled up it's worth less than market value

BigotSpigot · 17/02/2023 11:17

You have had a lucky escape frankly, if more issues had been uncovered (and they often are...) post-sale you could have been in for even more renovation costs. I was in a similar position moving from an expensive place to a cheaper one and pulled out of a sale as I understood the local market a bit better during the conveyancing. We ended up with a much better property, in a better position for significantly less money and that was in a rising market a few years ago. You will find something else. Good luck!

Soapyspuds · 17/02/2023 11:18

The OP has done the right thing and is fully justified in reducing the offer

Maybe and maybe not - We know nothing about the property or area. Where I am there are plenty of properties going for or above asking because they are desirable properties in nice areas.

If the house in question is ten a penny and nothing out of the ordinary then yes I agree. If the property is something unique and fresh to market then paying above mortgage valuation is not at all uncommon.

What was the reason that OP offered £470k when nothing else has sold for over £400k. There must have been one? Right?

HurryShadow · 17/02/2023 11:18

You did the right thing OP.

It will be interesting to see what it goes back on the market at (if it even does), and how long it takes to go under offer again.

They may yet come back to you...!

squtable · 17/02/2023 11:19

Where I am there are plenty of properties going for or above asking because they are desirable properties in nice areas.

I paid 40k over asking but the mortgage company were happy with the valuation.

GoodChat · 17/02/2023 11:19

Soapyspuds · 17/02/2023 11:18

The OP has done the right thing and is fully justified in reducing the offer

Maybe and maybe not - We know nothing about the property or area. Where I am there are plenty of properties going for or above asking because they are desirable properties in nice areas.

If the house in question is ten a penny and nothing out of the ordinary then yes I agree. If the property is something unique and fresh to market then paying above mortgage valuation is not at all uncommon.

What was the reason that OP offered £470k when nothing else has sold for over £400k. There must have been one? Right?

Because she liked the house and thought it was in good condition/ value for money. She's since found out that is not the case.

If you don't regularly deal in property it's easy to fall into a trap of paying more than a house is actually worth.

squtable · 17/02/2023 11:21

80k over on a 400k property is a significant difference.

Original poster
Winniepoo · 17/02/2023 11:22

Soapyspuds · 17/02/2023 11:18

The OP has done the right thing and is fully justified in reducing the offer

Maybe and maybe not - We know nothing about the property or area. Where I am there are plenty of properties going for or above asking because they are desirable properties in nice areas.

If the house in question is ten a penny and nothing out of the ordinary then yes I agree. If the property is something unique and fresh to market then paying above mortgage valuation is not at all uncommon.

What was the reason that OP offered £470k when nothing else has sold for over £400k. There must have been one? Right?

It's my own fault, we were in a hurry as my job isn't stable and I may be made redundant this year so needed to lock a mortgage in and we wanted to move into the right school catchment area, my gut said it was too much and I ignored it. I'm an idiot.

OP posts:
Original poster
Winniepoo · 17/02/2023 11:23

The property is nice but not unique or special for the area.

OP posts:
C4tastrophe · 17/02/2023 11:24

Frangipanitime · 17/02/2023 11:09

You did the right thing, you can’t pay 80 odd grand more than it’s worth, Christ. You will find another place without gouging sellers

Exactly.
Plenty more properties for sale, and with vendors being more realistic with their expectations, more reasonably priced.

Frangipanitime · 17/02/2023 11:24

Soapyspuds · 17/02/2023 11:03

Oh god, the sale has fallen through

And you are actually surprised? Jesus fucking wept.

Why are you being so utterabley rude. Jesus fucking wept is right, but at your on line behaviour. Not at the op making a prudent financial decision.

grow up

C4tastrophe · 17/02/2023 11:25

Winniepoo · 17/02/2023 11:23

The property is nice but not unique or special for the area.

Come on then, let’s be having the RM link to have something to analyze!

Dammitthisisshit · 17/02/2023 11:25

If they weren’t prepared to come down at all you’ve done the right thing. I’m surprised they didn’t negotiate as they will have this issue with other buyers and a lot won’t be able to go over the mortgage company valuation if they don’t have spare cash to put in.

We had a similar thing years ago, not as much difference as you but 10% of the agreed price difference. We managed to talk the valuation up and the vendors agreed to a drop in price so we met in the middle. If yours weren’t prepared to negotiate at all it was a non-starter.

Hopefully you will find an even better house!

drpet49 · 17/02/2023 11:26

Frangipanitime · 17/02/2023 11:09

You did the right thing, you can’t pay 80 odd grand more than it’s worth, Christ. You will find another place without gouging sellers

This. You’ve had a lucky escape OP.

FirstnameSuesecondnamePerb · 17/02/2023 11:27

You are not an idiot, far from it. You took the right action. Why risk losing all your hard earned equity?
Unless the vendors were desperate to move, they wouldn't take your offer, of course not.
I hope something suitable comes up soon for you.

SomeonesRealName · 17/02/2023 11:29

My bank valuation was £275k and within a year I sold it for £320k.

midnightblue12 · 17/02/2023 11:29

You've done the right thing OP!

My Nanna used to always say, "if in doubt, do without".

You wouldn't have been happy with this!