Would you buy an overpriced property if you could afford it?

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I know people will say a property is worth what someone is prepared to pay, but given no one else has wanted to buy it in well over a year and the EAs admit that the asking price is almost 100k more than their initial valuation was and the sellers won't even consider lower offers, would you buy somewhere if it was the only place that had come up for sale that was suitable?

Then your answer is 'No,' obviously! £100k over asking? Nuts.

Yes if I absolutely loved it, didn't need a mortgage and was v confident of staying at least 15 years. Given you don't meet #3 - this one is a No from me.

What I would do is put a sensible offer on the table and leave it there.

I suspect the owners are in the position of they would be happy to sell if they achieved a certain price but are happy to stay if they don't. Their prerogative IMO.

If you could buy it without needing a mortgage (because lenders will value it for mortgage purposes and that will be what they use to lend against, not the agreed inflated purchase price), AND you knew you would be there for a significant period, then it could be worth it for you.

Based on your updates neither of those things are 100% true, so this probably isn't the wisest investment for you.

If your sure on staying 20 years and don't need to mortgage it's still a 100k that you could use for other things. I would wait personally but I can see the dilemma

I reckon that I overpaid by about 10% but I had my eyes open while doing it. I fell in love with the place and considered it a rare find so it became more about making sure I secured it than getting the lowest possible price. I also decided that it wasn’t just a financial investment; it was a home and I wanted the experience of living in it.

Yes, we overpaid by about 5%, which was a lot as we're in London. But we needed to move, we had 2 young dcs and the eldest was due to start at a school five mins away from the new house, and we ruled out doer-uppers as we couldn't cope with doing it with young kids. We've always planned to stay here 18+ years (until youngest finishes secondary) so it made sense for us, and we've been very happy here.

It would make less sense in your position, as you might have to move for work.

Personally, would never pay over the odds for a property, particularly with your lack of job security.
Would personally work out what you can afford, get an independent valuation (especially taking into consideration cost of works)- offer more in that region price wise. They don't have to take it but if the house is overpriced, they won't manage to sell it!
FWIW I saw a house for sale over 2 1/2 years ago which still hasn't sold and the price has dropped over £100,000! In a pretty desirable area but needs work doing.

Three years of probation??????!!!!

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hmm... I might theoretically pay slightly more than I thought it was worth in a competitive situation (best & final offers) in a sellers market.

But 100k - no way!!

We overpaid by more than this because we're idiots plus it's quite a rare find. Cash buyers.
I don't think we will regret it as we plan to be here until old age, but we're in the very lucky position to be able to afford it. It's our home not an investment and we won't need the money from its eventual sale.

Just to pick up on the probation point. "Probation" is not a legal thing in employment law. In most cases it means diddly squat in real terms.

Over 2 years service you have rights to claim unfair dismissal in the ET, under 2 years you don't.

Up to 2 years of service an employer can dismiss someone for any or no reason with no process to follow at all. I could call you in at any point under 2 years service and say "it's not working", pay you your contractual notice - in lieu as a lump sum if contract allows PILON - and that would be it. (So long as it's not discrimination under a protected characteristic in the Equality Ac, in which case an employee has the right to make a claim in the Employment Tribunal irrespective of length of service).

So don't rush into this thinking 'passing probation' after 3 or 6 months makes you "safe". On the other hand, over 2 years they cannot just 'fail' your probation. They have to follow a reasonable process to dismiss you and give you a reason, and you could make and ET claim if they didn't.

Other than that, no I wouldn't be overpaying by more than 10% or so of the ceiling cap for the area, unless I was a cash buyer AND independent wealthy with no concerns about losing the lot if I had to sell expectantly.

@friskybivalves yes it’s absolutely ridiculous! I’m not actually worried about passing probation at all though.

@Mumofoneandone funny you should say that because one of the first properties we went to see when looking was initially on at the same price as this one (same agent as well). It was reduced to 500k several months ago and still hasn’t sold!