Did my son over bid for this house?

[ByJadeUser]

So my son and his GF viewed a property which was listed at offers over 144,950 and he said that the estate agent said that there was 10 viewings but currently only one offer which was 50 quid over the asking price. Its a four bedroom, new boiler system, fitted wardrobes with built in kitchen appliances, new floor, house rewired, big garage out the back and it was originally a council house built back years ago (but its very modern). My son and his GF fell in love with it and offered 150,000 for it, his father thinks he went over board and called him "stupid" and should of offered something like 146,000 but then my son said that if he did that then someone is more likely to round it off to 150,000 so thats why he did it first. He said he also didnt want a bidding war where they keep on bidding 500-1,000 more each and that he'll rather just be out bidded completly with a much bigger offer and move on if he doesnt get the house

My son says he thinks its worth more and that the owner deserves more than 50 quid extra because he kept it in very good condition, its basically a new house and thats even what the estate agent said.

Btw this was my sons first ever offer for a house and I dont own a home so I dont really know how it works.

Was my son stupid? Could that bid be false just to get him to pay more? Was it smart?

It was down to your son and partner and noone should be calling them stupid. My neighbours sold their house about 25k over asking due to a bidding war. Over the course of a mortgage an extra few thousand to secure a home they love is very little difference. Congratulations to them. Your husband is rude and need to pipe down. He's probably jealous

It's worth what your son is willing to pay and if he is of house buying age and didn't ask for your advice you and your husband should probably just leave him to it especially as it sounds like you are not experienced in house buying.

@Pieandchips999 although this house is located in a small town, I know in cities that houses go for a lot more than the asking price because more people bid on them. He really likes it and think its perfect home for starting a family, he also said that its a very quiet area and that many of the residents are older people

Houses for for more than the asking price in all sorts of place. It sounds like your son is sensible and has a nice house to move into that doesn't need work and is perfect for him and his partner. Choosing a place because it's suitable now and in the future and quiet shows they know what they are doing

It's probably around £20 a month more. Not with losing a dream house. They may have paid a couple of thousand over the odds but it sounds like they're really happy with their decision. Not worth stressing about

@Pieandchips999 lol my husband has always been someone who is a bit of a cheap skate to be honest who tries to pay less money as possible for things and trying to get deals on everything. My son said he doesnt mind over paying because its a four bedroom, very well maintained, built in wardrobes and kitchen appliances so less labour when it comes to moving (i.e moving wardrobes or a fridge in for example).

It's impossible to know and 4K doesn't really matter in the scheme things. A house (like everything) is worth what people are willing to pay for it -- and that'll depend on the individual house and location which are unique so it's always a bit of a guessing game. Your son won't really know if he overpaid unless he tries to sell it again relatively quickly and only gets lower offers.

A first homebuyer has to get into the market at some point. If you get in when the market is down, it's good. However, you have to jump in at some point if you don't want to keep renting.

If you need to pay more to secure a house you want, it's worth it. If he lives in it a long time, it won't really matter if he overpaid slightly or not because inflation will absorb that anyway. And he might actually have got an absolute bargain. If he's happy (and didn't obviously way overpay), that's all that matters!

@Pieandchips999 exactly 20 pound more isnt much in fact even 50 aint. He also said that estage agents hate bidding wars and that they are more likely to encourage the owner to accept the offer asap

Your son seems very happy with the house, it is only a few thousand more and nit worth worrying about. Be happy for them and proud of them!

I presume they will need a mortgage. As part of that process, the mortgage lender will require an evaluation survey, and that will confirm whether it’s over valued or not.

I don’t think you (nor your husband) should be concerning yourselves with the detail in this way. I certainly don’t think you should be discussing it on here.

The correct response is something along the lines of “That’s brilliant news” and then you cross your fingers that it all proceeds smoothly for them.

The house is worth whatever your son feels it's worth.

If the house is worth that to your son and he can afford it then his offer is fine. The mortgage they can get will depend on the valuation so they'll need enough savings to cover a slightly bigger deposit.

I live in Scotland and houses often sell by sealed bids. There is less chance of a bidding war but you always wonder if you could have got a house for less when you're successful (and, conversely, if you should have just offered another £100 when you're unsuccessful).

I hope their purchase goes through smoothly.

I think your husband should learn to mind his business. What a negative response to your son and girlfriend's excitement about buying a home.

He's not stupid at all, £4k to secure him and his girlfriend's happiness. House prices will keep increasing even if it is over priced a touch. What a kill joy your other half is 🤣

Are you or your DH paying anything towards the house?
If not then your only reaction should be to congratulate your DS on his new home. Your DHs reaction sounds toxic and controlling and a good way to stop your DS sharing details of his life going forward.

He needs to take into account how much the mortgage company is willing to price the house at. If they think he has gone over they might not get the mortgage they want and have to fund the difference with their deposit/ savings.

Your sons logic makes sense.

It’s only a few thousand above an ‘offers over’ asking price. It’s been modernised, is in excellent condition and is a four bed with garage. The sellers would likely have got 150k for it off someone else anyway. It doesn’t sound like they are overpaying.

Talk about put a downer on their excitement. Why is your DH getting involved? Unless asked I wouldn't offer an opinion to my adult DCs.

It sounds like they love the house so quibbling over a few grand when it's presumably a 25 year mortgage isn't worth potentially losing the house.

What your son said makes sense.

But more to the point, if I told my parents I'd had an offer accepted on my dream house, they'd be nothing but over the moon for me. How wonderful for your son. Your husband's response was horrible and sounds like it has spoiled what should have been a happy announcement.

Your DH sounds horrible.

A house is worth what you are willing to pay for it, so no, he did not overpay. If they really wanted that house they chose a good strategy to secure it.

I think his father sounds like a dickhead. What a rude man ruining this for them.

£5k is nothing when it comes to housing and I’m quite certain they will have forgotten when it comes to purchasing their next.

houses often go for higher than asking- one of mine went for £20k over. Your son sounds sensible to me to avoid the bidding war. He didn’t go nuts, but he’s paid what’s right for him. He’s an adult and will have weighed up the pros and cons.

I am the only one who is really intrigued as to where in the country he's managed to find such a bargain...

Your husband is bloody rude! But anyway house prices aren't static and are probably slightly down in a lot of areas compared to say 2022. You're son has found a house he liked and offered a price he can afford, its not an investment property but a home for him and gf, I would say it was all good.