Offer accepted but have I been stupid here?

lynzpower

I think V0N has some excellent advice there, which I shall take with me when I move. Wish the thanks button was around.

Sam, I really think you are doing the right thing.

ellies_angel

I live in a small town in Aberdeenshire. The house 4 doors up from me went on the market for £102,000. It sold for £145,000. A friend who was interested went in past the estate agents and asked what sort of prices people were offering. She was told that over the past 4 months houses were going for 20 - 25% over the asking price so she put in an offer of £127,000. It went to a closing date and she was 7th. I know from the valuation on mine that it won't have a morgage value of more than £115,000 which means even on a 100% morgage thats a deposit of £30,000.
House prices up here are going through the roof. If you have £100.000 budget you should be looking at houses around £65,000- £75,000 in order to secure.

sambessey

lynzpower wrote:

Sam, I really think you are doing the right thing.

By pulling out or staying in?

3 years ago,I nearly bought one of the new houses at Norfolk Park,but had heard bad things about the area.Obviously,the house builders told me that all that was in the past etc etc.In the end,I bought a much smaller house in a Suffolk village instead.
I am very happy here and will probably stay for 3 years until youngest daughter goes to uni.But,were my instincts right - does anyone have an opinion about Norfolk Park?

It's not so bad these days. I know people who like living there. I don't think I would buy a house there though, It's also very studenty.

littlejaffa

have to say (being in scotland) £10k over the asking price is nothing, we'd go up to £100k over the asking price obviously depending on the value of the property.
BUT i do think you should have started lower just in case it wasn't one where you needed to go so high, you have the luxury of bidding, and not one price or nothing like we have.
Also when you go for valuation make sure your surveyor knows what you need it to value at for the mortgage to balance, at the end of the day, generaly, if you had to pay that to get it, someone else would have to pay it to buy of you so it's not a waste of money, unless the market suddenly drops.
check out http://www.upmystreet.com/ to see what other houses in the area actually sold for recently and you'll know for sure if you've been had

lynzpower

By pulling out. I think paying over the odds in an already overpriced area is madness, and certainly not worth the interest paid on the mortgage for it.

Buy in a cheaper area is my advice.

sambessey

Ok so I am going to reduce my offer tomorrow. If they say no, then that's that. If they say yes, do you think proceeding at 5K over (bearing in mind it is a popular area) is wise at this price or am I still being foolish?

Thanks

lynzpower

Personally, I think you are being foolish. I know I am on the cautious side here, but for a start, you are running the risk of negative equity from day one. You are already paying over what the home is valued at.

It sounds like S11 is overinflated ( if other areas of sheffield arnt being bought & sold in this way) and therefore, personally, I owuld avoid that area till the market starts taking its dip.

zag2me

Good luck whatever happens

sambessey

well I changed my offer and surpisingly they said they were gonna put their house back on the market!

I'm giving up for now- I've had enough... Perhaps I'll try again in a couple of years.

lynzpower

Sorry to hear that Sam, what might be a good plan is putting the 80 you would have been paying on the extra 10k mortgage to one side every month and using that towards buying your next place, or for your petrol costs when the time comes!! Just keep an eye on the market there, or consider other areas of Sheffeild, Seriously I cant see this going on for THAT much longer, the market will implode, surely...in S11.

Lynz
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