dream house but am i overpaying?

pedro789

been looking in specific area for 2 years, must have viewed 50+ properties but only made 1 offer

anyway went to view house 2 weeks ago (just come on to market) and absolutely loved it, could see us spending the rest of our days there

up for 190,000 and had 175,000 offer acccepted yesterday, about 7% below asking but can't help thinking it's a bit over the odds particularly in today's market

obviously done research on nethouse and detached in same road went for 210,000 last year and semi (which this is) went for 160,000 in 2009

keep reading stories about prices going to plummet and everything being overpriced by 20-30% - am i being irrational?

KateLiana27

I would disregard how far below asking you got it. That is more or less arbitrary and depends more on the vendor's sense of realism than anything else. You're doing the right thing comparing its price to similar properties. Do you have more sales prices to compare it to?

If you love it, and you have struggled to find something else you love, that in itself is worth a premium. Also, you're buying now, not in the future when prices may or may not plummet. Overpaying is a risk you'll take when you buy in an uncertain market. Depends on how much moving now versus moving in a year is worth to you.

SuzieSue

pedro789 wrote: »

anyway went to view house 2 weeks ago (just come on to market) and absolutely loved it, could see us spending the rest of our days there

That says everything - if you don't intend to sell it in the short term, it doesn't matter what happens to house prices.

Nobody likes paying over the odds for anything, but if it is exactly what you want and you aren't paying silly money (which from what you have said, you aren't), then it doesn't really matter.

You have agreed a price with the vendor and I doubt they would go any lower, unless they are really desperate to sell, so if you want it, that is the price you will have to pay.

No-one has a crystal ball, so if you were only intending to stay there a few years, then you need to be more cautious, but in your case, yes, you might have got it for less if you had waited a year or so but then someone else might have bought it too, so that is risk you take.

pedro789

thanks kate, not many properties sold in last 3 years - something for 197,000 in 2007 but height of bubble so probably not worthwhile comparison

love it but nagging feeling i may have been bit hasty and might have got for bit less if i'd waited, started at 170,000 and went up by 2500 each time

gonna take a deep breath and go for it, spent our last 2 years of weekends looking and haven't seen anything that we liked as much

ukcarper

According to the Land Registry the average semi has increased 5% since mid 2009. This is the average for England and Wales and things vary a lot depending on where you are.

It’s easy to find people who will tell you house prices are over valued but it’s just as easy to find people who will tell you aren’t, in truth nobody knows for sure.

pedro789

thanks guys, glad i posted now!

GDB2222

If it's any help, I think houses are overvalued. OTOH it's clearly government policy to stop prices collapsing. So, what I think you'll find is that there are years of house price stagnation ahead, whilst earnings and prices of other things will move ahead. That doesn't make buying a house a bad idea as somewhere to live, but just don't expect to make a fortune out of it over the next 5 - 10 years.

KateLiana27

Also, if you didn't like 50-odd similar properties and absolutely loved this one, there must be something pretty special about it that will more than likely appeal to other buyers when you come to sell. I wouldn't say you've acted hastily. I get the feeling you'd be gutted if you had lost it, so if you can comfortably afford the price you paid, just enjoy living there and forget about resale value until you come to sell. Which may be never by the sound of it