Offer accepted but have I been stupid here?

sambessey

OK following on from my last thread:

I have been looking for a house in S11 (Near Eccleshall Road, Sheffield). I have been looking for a couple of months and have been involved in two bidding wars for houses in the area recently, both of which have resulted in the houses selling for about 7.5K and 10-12K over their respective asking prices. I know from my previous offers that good houses in the area typically attract 4-5 parties with good (i.e. asking price or higher) offers before one is accepted.

This house is about 2 miles from the city centre, and very close to Eccleshall Road which has many designer shops and nice restaurants on it. It is also close to both of Sheffield's universities & various schools, and there are parks/ woodland about 2-3 minutes walk away in either direction- so obviously the kind of area where people would like to live. The area typically attracts young couples/ families educated to degree level with moderate incomes.

I saw the house at the weekend and put an offer in yesterday. I went straight in at 10K over. I have had the offer at accepted.

I am (and have been feeling) quite worried I was foolish in putting that offer down. I have spoken to a couple of people who have been looking at houses in the area with me and they think I did the right thing in doing this and avoiding an inevetable bidding war. This is why I think it was worth going in at such a price:

• A previous house (pretty much identical) I bid full asking price on (I was the first to offer on it too) on an adjacent road went for a minimum £10K over the asking price. My offer was full asking price
• There were 5 offers on the house mentioned in the previous bullet point. All were £10K or more over the asking price, so you can bet your bottom dollar at least 1 or 2 of the other 3 people who lost out with me will have expressed an interest in this house given the chance
• I jumped in quickly with the offer and hence prevented any other interest/ viewings which would have resulted in it going for over the asking price IMO, and probably for around what I offered.
• Another agent informed me that another identical house I veiwed nearby had a full asking price offer. (it was up for £20K more than the one I offered on)
• Nicely done houses in the area typically get purchased within a week or 2 (at the most) of coming on the market. I have watched a fair few come and go.
• Similar houses (which IMO are not as nice) in the area areon the market for £195-£200K which I guess means they will also go for at least £190K I reckon.
• I live in Bristol and am buying in Sheffield so it's very hard/ expensive for me to get up there and spend my weekends looking at houses, and my job means I spend a lot of time abroard which means I might suddenly find myself in a situation where I cannot look at a house for quite a few months.

I can see why people on here think I was silly to go in with such a large offer, but based on the above, do you still think I got silly and carried away or do you think it was a reasonable thing to do? I would greatly appreciate all honest feedback.

Thanks.

cattie

It sounds as if you have done the best thing for you & that's what is important. You've been outbid on 2 previous properties, so know that the market is very bouyant in the area you wish to buy a house & offered the price that you thought would secure this house for.

I was guzumped on the house I presently own, even though I had offered at full asking price & ended up having to cough up an extra £10,000 to secure the house. For me it was worth it as the house was just what I wanted, I knew I'd not find anything else as desireable that I could just move into & unpack & I just couldn't face househunting any longer.

Yes sometimes I've wondered was I crazy to fork out £10,000 more than the house was valued at, but I did what was right for me at the time.

I hope it all goes smoothly for you this time.

sambessey

Ok thanks you've made me feel a bit better! I was considering withdrawing my offer earlier, as just sitting and thinking I was offerring £10,000 MORE than something was valued at seemed crazy!

And like you say, the whole process of househunting isn't fun, and then you have a nervy wait to see if your offer will be accepted/ does anyone outbid you etc? Not having to go through all that again has to be worth £1000 in itself!

zag2me

offering 10k more than what they where asking is not good moneysaving I can tell you that

zzzLazyDaisy

You have to understand the way houses are sold in Sheffield. Everywhere else I know (except Scotland) you put a house on the market and expect the price to get knocked down. In Sheffield the marketting is always 'offers over'. So the price is pitched approriately as people are EXPECTED to bid up. It is NOT gazumping - it is the way it works there.

I remember vividly the difficulties buying from away when I moved to Sheffield. I think OP did absolutely the right thing. Especially if the deal included the house being taken off the market.

Well done OP, Sheffield is a brilliant place to live, I am sure you will enjoy it when you get there

zag2me

You learn something new everyday! I was aware of this practice in scotland, but not in England.

I wonder what would happen in a depressed market!

BobProperty

It's a Yorkshire thing I think...mind you, they say while meaning until and they mash tea...

clairehi

If you have overbid, and have a high LTV, the surveyor may value the house at less than what youve offered.

this happened to friends of mine trying to buy a house in a similar desirable area in a rising market.

On the other hand, if you have a large deposit to put down, they may be a bit more flexible as they figure the lender would get their money back in the event of a repo.

why is Sheffield such a hot spot - what are we all missing?

BobProperty

clairehi wrote:

...why is Sheffield such a hot spot - what are we all missing?

Ah the old People's Republic of South Yorkshire...It's a nice place with friendly people...alright I'm guessing (and if anyone is from Sheffield, which I'm not, I'm old enough to remember "The Brick Rabbit")

never_red_Paul

Forget the asking price, if you think the house is worth what you offered, be content with that.

InMyDreams

No I don't think you were silly either. As others have said, buying in some parts of Sheffield (eg S11) is a whole new ball game. We had to sell up before anyone would take our offers seriously. When the vendor asks 'have you sold yet?' they mean 'have you exchanged?' not just sold stc. We 'only' offered asking for the house we eventually managed to buy, as it had already been on the market a few weeks (less than a month), and we had already exchanged on our house by then so in a good position, but even that was not excepted initially. It did end up with a bidding war which we won despite not bidding the most as we had already sold.

It was all worth it though. Within minutes one way you're in the city centre, minutes in the other and you're in the Peak Distict. Nice and central for friends and family all round the UK. Really is the best of both worlds here. I'm sure you'll love it

The only thing missing is a beach ;-)

IMD