Massively overpaid on a property as a first time buyer and I’ve lost all motivation to make the house “mine”

[justaballofanxiety]

Apologies for the negative post…
I’m a first time buyer who bought last winter. The area I bought my house had seen a big increase in prices during covid. When I saw my house come on the market it was slightly lower than others nearby but still felt it was overpriced (230k was advertised). It was last sold in 190k in December 2021, and not much had changed with the property, although the area had become more popular so I put the price increase as down to that really.
At that point in time I was dealing with the craziness of interest rates skyrocketing so I rushed ahead after having viewed dozens of properties, and I felt the pressure to get on the ladder so went ahead. The lender valuation was fine and agreed with my offer despite me feeling like I overpaid.
Fast forward a few months and I’ve noticed so many old DIY jobs that were awfully botched and covered up by furniture/fixings, to the point that this feels more like a fixer-upper than what I paid for. I have no idea of how to start fixing things but labour these days costs so much.
I wanted to get the bathroom done up as that’s the worst part, but I don’t even know if it’s worth it if I’ve already overpaid. Don’t want to pour more money down the drain….
I’m on a 5 year fix, and trying to think of this as a home rather than just an investment, but I still would like to spend my money wisely.
Just looking for some advice and how to get out of this negative mindset that I keep returning to. Is it worth getting the bathroom redone? And is there a way I can get an accurate valuation of the house as I really don’t trust myself (or estate agents really)?

I would get the bathroom done if that’s the worst bit. It may cheer you up a bit and make you feel better about living there. It’s worth it if you intend to live there 5plus years. Will make it easier to eventually sell & will also benefit you in the meantime.
Try to stop obsessing over valuations & think of it as your home.

It’ll be worth it to get the bathroom done if it needs doing - and even if you don’t recoup all the costs when you sell you will have had the benefit of a nicer bathroom in the intervening years.

I doubt you’ve overpaid for the house, especially if you intend to stay in it for five years or more. You would have had to ‘overpay’ for any other house you bought at the same time, and once you factor in rent you haven’t paid and the lower interest rate you’ve secured by fixing for five years it’d all have worked out at about the same anyway.

Enjoy your new house and good luck with your bathroom!

If you took out a 5 year fix when rates were low you might have lower repayments than people buying a cheaper house today.
In the long run house prices will always go up, generally more than inflation because there is limited supply. You have a roof over your head, your mortgage is fixed so you know you can pay it. You have it better than you think.
I remember painting my first house, choosing curtains etc and making it my own. Would that help?

Does the whole bathroom need refitted?

If it's white sanitary wear in decent order perhaps you could retile/ change the flooring to freshen it up

Post a picture for ideas.

I wouldn't be spending too much now unless it was dire. You'll be paying top whack on trades and materials.

There's a lot you can do yourself. It could be a good opportunity to get a few new skills and some confidence under your belt. They'll save you more than you've overpaid in the long run.

You also need to factor in how much you'd have spent living elsewhere and how much you've chipped off the mortgage in that time, plus the lower interest rate you are hopefully paying.

If you hadn’t gone for this house you would have continued to pay rent, so say that was £1000/month, that’s £12,000 if you’d waited a year.

You’re on a lower rate now than if you bought a different house tomorrow.

No one knows what rates will do in 5 years but you know what you’ll pay each month for the next 5 years. When you come to remortgage you’ll have paid a bit off and you might have had a pay rise.

I don’t think this was a terrible decision!

I have no idea of how to start fixing things

Do you imagine any of us were born holding a paintbrush?

We learned DIY from library books, or asking people; or going on courses at evening class, and the more DIY we tried the better we got at it.

These days every conceivable DIY skill is demonstrated taught and instructed on Youtube. Free.

I think lots of people are in this boat.

Did you get a low interest rate? Because fixing for 5 years at a low rate is pretty good so you’re already doing better than some who only fixed for 2.

Are you planning to move after 5 years?

what’s the purpose of the valuation now? If you don’t intend to sell soon what would the valuation be for?

I would get the bathroom done

we had a level 3 survey (and paid almost £1000 for it) and he missed so much crappy botched DIY

Honestly, it can feel very overwhelming dealing with all this first time on your own.

Do you have a parents or friends or someone that can help who know a bit more about DIY, even just the basics.

Firstly, i'd go around and make a list of the issues - all houses have issues. once you have a list look through and see what you can fix, what needs a professional and what can wait. then you'll have a starting list. It might be a few niggly things a good handyman can sort in a day for a couple of hundred pounds.

I'd also redo the bathroom if you're planning to stay a while.

But please don't let the money get you down. I was in a similar position. I bought a flat as everyone kept telling me prices were rising and i'd never get on the ladder. then covid hit and the price of flats plummeted and i ended up selling 4 years later at a loss. And so what? I will survive. I didn't buy that property to be an investment, I bought it to be a home and it was. I loved that flat - i was so happy there. it had its issues and yes i overpaid but it was worth every penny. I met my now husband 6 months later and we got to know each other there, we spent hours talking there, he told me he loved me for the first time there. i had my friends over and i was there when i found out i got a promotion. it was a happy place cos i filled it with love and laughter and friends. and that's what your buying - a home. please keep that in mind.

Also get some friends over and turn it into a happy place :)

Firstly, home maintenance is just something that needs to be done. Every home will need the bathroom/kitchen replaced, or walls skimmed or skirting boards replaced and so on at some time. It's part and parcel of owning, even new builds will ned something done. If the bathroom really is rubbish then get it done, if the suite is OK but tiles aren't get them replaced. when that 's done look around, does it make you feel better? If so, go on to the next room, look at it and think how it could be improved. If it's going to be your home for some time ,then surely you want it to be comfortable, to feel like a place where you want to be? If you had a survey that will give you an idea of what is essential and what is cosmetic so refer to that too.

I would guess a lot of this is post-buying remorse, which almost everyone gets. I bought a house I love on a five year fix in February and I still have wobbles over whether we should have done it. It’s such a massive life decision, it takes a year or so to settle.

as others have said, if you bought on a good rate you will save the approx 20k you might have overpaid throughout the life of the mortgage.

I would do the bathroom and buy some other little bits for it to make it seem like yours. A rug, vases, etc.

I have bought two properties and both have things I wouldn't have done. Even when I have paid for trades, some of the jobs they have done I was not happy about. It's just part of life. It sounds like you aren't happy with the bathroom most. Get it done and it will make you happier. Look at this as your home.

At our current place, I didn't plan to redo the garden and the kitchen so quickly. But they turned out to be the things that irritates me the most.

Did you get surveys done on the property? How long was it on the market for?
although an estate agent will want to get the best price for the property, it’s cut throat Industry so rarely is it possible to overpay that dramatically as so much goes into valuing a property and getting the bank to agree on the mortgage for that property.
just get some estate agents round to do some valuations and go with the average. Some will promise you the earth and overvalue it but most will not do this. My husband runs his own estate agency and despises agents who overvalue as it wastes time and it purely to get people to sign up.

Try not to think of your house in financial terms but as a home. You’ve paid that price now there’s no point dwelling on it. Make is as nice as you can and enjoy having a permanent place to live. Many people would love to be in your position.

Prepare for your next move. Calculate what you would be paying in mortgage if you had to remortgage today, and then put the difference into a cash ISA each month (I assume that the rate on a cash ISA will be higher than your current mortgage rate - so not worth paying down the mortgage directly).

Whatever happens, in four years time you'll be comfortably placed to handle a remortgage at higher rates if that is what transpires OR you'll have all those savings to help buy the home of your dreams.

What needs doing?

You might find it's easier than you thought to do it yourself. Most people give DIY a go for the first time when they get their first property.

You may have overpaid but things tend to even out in the end. Values still rise long term even with blips along the way.

True, but if you buy at the top of the market then it can take 10/15/20 years for the market to recover just to same sticker price (nominal price). So long as folks understand that and factor it in then I'm cool, but many folk are surprised and have their lives ruined by it.

Just pay down that mortgage as quickly as you realistically can (or save in a Cash ISA if more beneficial) to give yourself contingency.

^ This, if you had surveys done properly I doubt you have paid that much over the value as the mortgage people would have needed the house to be able to secure the loan if you couldn't pay it.

Oh you could be me! We also paid top of the market for our house last year - turns out it was a bigger fixer upper than we thought it would be. As others have said, it sounds like you’re going to stay for the 5 years - I would do the bathroom. We did (got rid of the 70s wallpaper, tiles etc and put a new suite in). Made me feel a hundred times better and we’ll get use out of it because we couldn’t afford to move even if we wanted to now - got a really low interest rate. I was thinking the other day it’s really swings and roundabouts, yes you might have overpaid, but you have a lower interest rate. I keep seeing all these cheaper houses popping up where we wanted to be, but actually we still couldn’t afford them because interest rates would make the mortgage payment unaffordable for us. We’ve been here a year now and honestly I thought we would have sold up by now cos I hated it so much - it’s got better and bit by bit the house looks totally different. Look on YouTube, do painting etc yourself- it won’t cost much.

I may get flamed but ultimately I’m one of those that think house prices will ultimately go up again at some point as well, and if this is a long term home for you it’s irrelevant whether you are in negative equity etc.

P.s also plants, plants plants! Make a world of difference in a house when it doesn’t feel like home.

We live in a very strange world now where people feel as though they are obliged to do a lot of work or decorating to a property almost immediately to "make it theirs" and there is something wrong with them if they don't. This is just artifice that is financially costly, and for the planet.

Most people didn't feel quite that way in decades gone by, even if they did paint the walls their favourite colour and get cushions to match. A lot of people just moved in and cracked on. We weren't all taking photos of everything every 5 minutes then either. I suspect there is a connection.

If it's liveable, just personalise it with your possesions, and do the jobs as you feel like it and have the money. You own a house, that's amazing, and presumably it's in a location you like?

The stress of buying it and the cost of living crisis now you are paying for it are both exhausting. Give yourself a mental break and for now, just fix anything that is going to become a problem. While enjoying the fact that you are in control of your space, not a landlord.

It's buyers remorse! I get this every time I buy a property as well! The house we're in now was like yours - so many unexpected issues that I genuinely wanted to sell up after 6 months. But slowly and surely we got DIY done and mended the previous mistakes - including a bathroom that had a hole in the bath we didn't know about and a sink that was balanced on a wooden plinth and fell off one day. A few years later and it's my home and I can't see myself moving anytime soon. It's just taken time...and a lot of YouTube videos!

Oh, and give it a couple of years and you'll see that the price you paid was a fair one. And it becomes irrelevant anyway because it's your home. We lost money in the northern rock crisis all those years ago but it was where we'd had our first years of married life, had children, made memories (even though I hate that phrase!) and what we'd lost was still less than we would have paid in rent anyway.

When we bought our first flat we paid OVER THE ASKING PRICE (grabs pearls) and everyone was horrified.

We eventually sold it for almost double the price.

It just goes to prove that your home is worth whatever you wanted to pay for it.

There is no ‘right’ or ‘wrong’ price.

Everything comes out in the wash when you start thinking about interest rates, rental prices, how much you will eventually sell it for.

Honestly, you did what was best for you at the time now just take you time learning how to turn it into your dream home.

You’ve done nothing wrong.

It will just take a bit of time. Do the bathroom if that's the most pressing bit.
Dh was ready to pack the removal van back up before we'd even emptied it. We were also first time buyers here and really had no idea what to look for, we just got excited because the rooms looked lovely and bright (with no furniture and a sunny day!)
A couple of things needed fixed immediately for safety/peace of mind but a lot of the things we wanted to sort/change quickly have become things we have been comfy with for two years now 😀

??