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Worried we’re overpaying

31 replies

Applecrumble32 · 04/10/2024 17:58

We’re in the process of relocating for schools (and also to be closer to family) which means a move across the country.

We had an offer accepted on a house last week but I have some concerns about whether we’re overpaying. Prices seem particularly high right now and I don’t want to end up losing money or struggling to sell when the time comes.

We’re buying in Cheshire, south of Chester in a small village which is very pretty but quite quiet. It does have access to an excellent secondary though and several outstanding primary schools.

We’ve found that the houses close to Chester are very expensive for our tastes hence why we’ve looked further afield.

This is a four bed house (advertised as 4 doubles but two rooms would struggle to fit anything other than a double bed) newly refurbished and almost doubled in size by the owners. They bought it for £160k 12 years ago. It has a relatively big garden but not the nicest outlook to the front (not bad just not great). It has underfloor heating, mod cons and a lovely finish. We’ll be paying £470k which is “cheap” compared to what we’ve been looking at and it’s bigger than anything we’ve seen. I’d say we’d be looking to pay £600-£650k for the same house outside Chester.

Our worry is the houses on the street don’t sell often so it’s difficult to see whether we’re paying a fare price for the village. The house a few doors down sold in 2018 for £320k. It’s practically the same size (slightly bigger but negligible) no mod cons but refurbished to a pretty good standard (kitchen not as big but has a conservatory and a little old fashioned ). The bedrooms are configured better so it’s 3 doubles and a small double/ single. Zoopla says that should be worth around £450k now. Similar houses that haven’t been refurbished or extended (so 2 bed) and need a lot of work are going for £250k.

I don’t know if this is enough information to give an opinion but if anyone has any thoughts I’d be grateful to hear them.

OP posts:
HellsBalls · 04/10/2024 18:14

How long has it been on the market and has it had any discounts?
You should be able to scan what’s sold in similar villages to gauge what is selling.
If it really has been updated to a high standard and you would not need to spend anything on it for another 10 to 15 years, maybe the price is appropriate? People do pay a premium for the immaculate houses. There is so much dross for sale.
You are right about prices feeling high at the moment. And does sound like it’s 2 doubles and 2 singles, as you do need wardrobes and a chest of drawers in every bedroom.

Applecrumble32 · 04/10/2024 18:17

it will need storage building in because the small rooms will struggle to fit wardrobes. It has very large landings though which currently look oddly empty to there’s space. Spending money on what could already be an expensive house though is a concern. Houses in similar villages and even similar sized houses in the same village but slightly better outlook are on for a lot more (£600k plus).

This one has been listed since March but was reduced by £60k by the time we offered.

OP posts:
SoNiceToComeHomeTo · 04/10/2024 18:28

That is kind of a 'how long is a piece of string' question. There are so many variables that the only reasonable point of comparison would be with houses in a very similar town, in a similar condition, sold very recently. It's price 12 years ago isn't that relevant to what it sells for now, especially since they have done a lot of work on it. Is it worth 470K to you, is a better question, and could you get something you like at least as much for around the same price? If not, it's a good deal.

XVGN · 04/10/2024 19:28

SoNiceToComeHomeTo · 04/10/2024 18:28

That is kind of a 'how long is a piece of string' question. There are so many variables that the only reasonable point of comparison would be with houses in a very similar town, in a similar condition, sold very recently. It's price 12 years ago isn't that relevant to what it sells for now, especially since they have done a lot of work on it. Is it worth 470K to you, is a better question, and could you get something you like at least as much for around the same price? If not, it's a good deal.

Yes, yes, yes. Pay what a home is worth to you and that you can comfortably afford. Nothing else really matters. But really make sure about that last bit!!!

Geneticsbunny · 04/10/2024 21:18

Sounda like you are getting a good deal if other nearby similar houses are more. Any slight missspend on price will average out the longer that you are there. So if you are staying for more than 5 years it probably doesn't matter

EverybodyWantsTo · 04/10/2024 21:20

XVGN · 04/10/2024 19:28

Yes, yes, yes. Pay what a home is worth to you and that you can comfortably afford. Nothing else really matters. But really make sure about that last bit!!!

Agree with both these.

I may have overpaid for several houses I bought. But they were what I wanted at the time, and if you end up staying for a decent amount of time it becomes a bit meaningless if you paid a few grand more or less.

I really wouldn't get hung up on it.

mnahmnah · 04/10/2024 21:33

I live in this area so I’m dying to know which village 😂feel free to DM me in case I can offer any helpful knowledge

BubblyTime · 05/10/2024 00:01

Applecrumble32 · 04/10/2024 17:58

We’re in the process of relocating for schools (and also to be closer to family) which means a move across the country.

We had an offer accepted on a house last week but I have some concerns about whether we’re overpaying. Prices seem particularly high right now and I don’t want to end up losing money or struggling to sell when the time comes.

We’re buying in Cheshire, south of Chester in a small village which is very pretty but quite quiet. It does have access to an excellent secondary though and several outstanding primary schools.

We’ve found that the houses close to Chester are very expensive for our tastes hence why we’ve looked further afield.

This is a four bed house (advertised as 4 doubles but two rooms would struggle to fit anything other than a double bed) newly refurbished and almost doubled in size by the owners. They bought it for £160k 12 years ago. It has a relatively big garden but not the nicest outlook to the front (not bad just not great). It has underfloor heating, mod cons and a lovely finish. We’ll be paying £470k which is “cheap” compared to what we’ve been looking at and it’s bigger than anything we’ve seen. I’d say we’d be looking to pay £600-£650k for the same house outside Chester.

Our worry is the houses on the street don’t sell often so it’s difficult to see whether we’re paying a fare price for the village. The house a few doors down sold in 2018 for £320k. It’s practically the same size (slightly bigger but negligible) no mod cons but refurbished to a pretty good standard (kitchen not as big but has a conservatory and a little old fashioned ). The bedrooms are configured better so it’s 3 doubles and a small double/ single. Zoopla says that should be worth around £450k now. Similar houses that haven’t been refurbished or extended (so 2 bed) and need a lot of work are going for £250k.

I don’t know if this is enough information to give an opinion but if anyone has any thoughts I’d be grateful to hear them.

The 2018 sale is a red flag, interest rates were very low then, it doesn`t matter if the sales in the village were all cash the general market sentiment and number of transactions is greatly affected by where borrowing rates are, in my opinion this house sounds overpriced by quite a lot. How many other offers do they have, how long has it been on the market?

https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp#:~:text=Official%20Bank%20Rate%20history.%20See%20how

You have to ask yourself why these houses have gained over a 100k in value, has anything changed with the house, the village, the general environment? If you can not come up with an answer that satisfies you be prepared to walk away, or negotiate properly until the seller drops the price.

Bank Rate history and data | Bank of England Database

https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp#:~:text=Official%20Bank%20Rate%20history.%20See%20how

Applecrumble32 · 05/10/2024 00:14

@BubblyTime We bought our current house in 2020, interest rates were incredibly low and we got ours for a steal. It’s increased in value by over £100k in that time. Nothing in the area has changed and actually it’s very rural and so with people being forced back in to the office the attractiveness of being so rural is wearing off for people.

Isn’t it that house prices have just escalated over the last few years? Zoopla seems to think the neighbour to the new house has gone up by over £100k (£150k at the top estimate) and that’s calculated based on local house sales.

As mentioned house prices in Cheshire are really high now (£600k plus for small 3 bed semi that needs some work). We’ve seen similar sized properties nearby that all need work and are listed at £80k above ours.

The main concern is coming from the recentish (6 years) sale price of the neighbour’s house.

OP posts:
BubblyTime · 05/10/2024 00:16

Applecrumble32 · 05/10/2024 00:14

@BubblyTime We bought our current house in 2020, interest rates were incredibly low and we got ours for a steal. It’s increased in value by over £100k in that time. Nothing in the area has changed and actually it’s very rural and so with people being forced back in to the office the attractiveness of being so rural is wearing off for people.

Isn’t it that house prices have just escalated over the last few years? Zoopla seems to think the neighbour to the new house has gone up by over £100k (£150k at the top estimate) and that’s calculated based on local house sales.

As mentioned house prices in Cheshire are really high now (£600k plus for small 3 bed semi that needs some work). We’ve seen similar sized properties nearby that all need work and are listed at £80k above ours.

The main concern is coming from the recentish (6 years) sale price of the neighbour’s house.

Have you actually sold your house?

Applecrumble32 · 05/10/2024 00:16

@mnahmnah i’m dying to tell you where it is because I have lots of questions but I think it would be quite outing!

OP posts:
Applecrumble32 · 05/10/2024 00:17

@BubblyTime we have a buyer.

OP posts:
Applecrumble32 · 05/10/2024 00:19

@BubblyTime and for size, condition and style of our house the price for ours is very reasonable when compared to others listed in our area.

OP posts:
BubblyTime · 05/10/2024 00:23

Ok, I still think that you are right to be concerned about the recent ( 6 years ago) sale, in fact considering what your potential house sold for 12 years ago I would say they might be trying it on.

Whatatodo79 · 05/10/2024 00:29

Are you happy to let this house go? Is there anything else you want to buy in the right area? Tbh i don't think this sounds overpriced (house prices defy sensible expectations of inflation, 6 years ago is a different time financially) if it is a long term home for you but if it won't meet your needs then it's not the right house for you is it

Propertyshmoperty · 05/10/2024 01:13

£470k for a 4 bed detatched house, completely renovated, South of Chester with outstanding schools sounds like a bloody bargain quite frankly. I just sold my small 3 bed semi detatched in East Cheshire for just South of £400k.

Unless you intend to flip it in a couple of years the price will get smashed by inflation anyway. As others say can you afford it? If so, £20k on zooplas estimate is neither here nor there, they don't know the extent of renovations. Also just get a valuation when you get your survey done and ask your mortgage broker to do one.

Honestly OP it doesn't sound overpriced to me.

Applecrumble32 · 05/10/2024 06:59

@Propertyshmoperty sorry I should have said, it’s semi detached but a period home with a very large and sympathetic extension making it 1750 square ft.

Thank you! It’s definitely a lot less than we expected to spend.

To make it right for us we need to make a few adjustments but being generous I estimate these will cost a maximum of £10k. If we chose to there’s also an outbuilding that we could turn in to a home office in the garden if we decided to.

OP posts:
63isMe · 05/10/2024 07:05

I probably overpaid for my house (was sealed bids) but it doesn’t matter as I will be staying here for many years.
If you like the house snd can afford the mortgage, the actual ‘value’ is irrelevant,

soupfiend · 05/10/2024 07:09

You seem to be very reliant on Zoopla says this, Zoopla says this, you know that its just an algorithm of information and averages and therefore makes no sense at all, particularly where there is scant information?

TemuSpecialBuy · 05/10/2024 07:14

We probably /maybe could have gotten our house for 20-50k (2-5%) less but the market was weird we’d looked for ages and knew we’d be there ages (10years plus) so figured it would come out in the wash

EveningSpread · 05/10/2024 07:18

It doesn’t sound overpriced. A house is ultimately worth what people are willing to pay for it. Plus if you’re planning on staying a long time you won’t lose money on it. And if you’re having a mortgage you’ll have a valuation - if it’s downvalued (not valued at what you’ve agreed to pay for it) you could renegotiate the price on that basis.

JohnCravensNewsround · 05/10/2024 07:38

If you are moving for schools, the major factor is

  1. is it in a nailed on catchment area
  2. Can we live in it for 10 years?
  3. Can we afford it?

You have already described it being good value in terms of size/price vs other options and this is as far as you can go. In terms of will it hold value, if it's in good catchments then it's pretty safe.

RunAwayNow · 05/10/2024 10:03

There's a lot of variability in prices in the villages south of Chester. If you can share which village, it might be easier to tell you if it's overpriced or not.

RunAwayNow · 05/10/2024 10:05

Going East from Chester might also be worth a look - some lovely villages and great schools.

BubblyTime · 05/10/2024 13:34

Whatatodo79 · 05/10/2024 00:29

Are you happy to let this house go? Is there anything else you want to buy in the right area? Tbh i don't think this sounds overpriced (house prices defy sensible expectations of inflation, 6 years ago is a different time financially) if it is a long term home for you but if it won't meet your needs then it's not the right house for you is it

6 years ago was near zero interest rates on mortgage borrowing, that can"t be ignored, and the only reason property defied "sensible expectations of inflation" for so long was due to cheap borrowing! This seller has not adapted to the new financial reality and I think if they don"t seem open to a price drop then walk away.