Did I overpay?

missjy

If these were the selling prices for a postcode:

2001 - £72,000
2004 - £115,000
2007 - £132,250
2007 - £160,500
2008 - £154,500

& you bought a house for £113,500 that needed about £12,000 work doing would you consider you had a bargain?? I thought I had a bargain but people on this forum keep saying that you should offer 10% below asking price. The house went to sealed bids and I paid £8,500 over asking price and am now wondering if I did the right thing I love the house and the location is perfect. The EA only did 2 days of viewings and they didn't even have time to put it up on RightMove cos the seller wanted a quick sale.

spadoosh

missjy wrote: »

If these were the selling prices for a postcode:

2001 - £72,000
2004 - £115,000
2007 - £132,250
2007 - £160,500
2008 - £154,500

& you bought a house for £113,500 that needed about £12,000 work doing would you consider you had a bargain?? I thought I had a bargain but people on this forum keep saying that you should offer 10% below asking price. The house went to sealed bids and I paid £8,500 over asking price and am now wondering if I did the right thing I love the house and the location is perfect. The EA only did 2 days of viewings and they didn't even have time to put it up on RightMove cos the seller wanted a quick sale.

Are you planning on staying there for a longish time (about 10 years) if you are then it doesnt matter if you overpaid, a house is to live in not make money. Sounds like there was also a high demand for the property so not always that bad to pay over the listed price. and what did your mortgage company say when they valued it, did you have problems getting the mortgage?!

Bullfighter

My opinion is that the price will drop to nearer the 2001 level, so in that sense I think you overpaid.

That said, unless you have taken a huge gamble by overextending yourselves with a massive debt, then just enjoy the house and forget about it's value.

GDB2222

It depends where you are in the country. You effectively paid £125k, which is 19% down on 2008 prices, assuming your house is average. Some parts of teh country are down more than 19%, some less. What's the postcode?

hazyjo

The price of a house is determined by what someone will pay for it. If it was priced way under to sell, it's not unusual to attract a bidding war/sealed bids.

You can't just search by postcode as that will include a variety of properties.

What part of UK?

Can't just tell everyone to bid 10% under - if that was the norm, everyone would just market their properties at 10% over what they actually want! It's up to you to do the research to see what similar properties sold for.

Has the valuer been in yet (presuming you need a mortgage)?

Jx

DannyboyMidlands

Agree with hazyjo above. Comparing to the average price for the postcode will tell you nothing. What have similar properties to yours been seeling for over the same timeframe?

Anyway it doesnt matter anymore. What's done is done. You'll drive yourself crazy thinking like this.

sonastin

By that rationale, my buyer got a MASSIVE bargain because the last place to sell in that postcode (c. 2009) went for £240k-ish and she only paid £115k. But given that she only got a small 3-bed starter-home-type semi and the previous sale was for a huge 4-bed Victorian place, its not really that much of a good deal.

Incidentally, the last house of our type to sell, prior to our transaction last summer, went for £115k in 2004. And a neighbour just sold his for £120k.

missjy

I am planning on staying there for a while and because I put down a good deposit the mortgage isn't large and am hoping to be able to overpay as much as I can and have it paid as soon as I can.
I've always wanted to buy a house that needed doing up - and this is ideal! I am happy with what I paid, but sometimes when I read too much on this forum I get the feeling that prices are gonna come tumbling down and as a single mum I do have to think of my kids future!
Thank you as always x

GAH

OP, as long as you are happy with what you paid you enjoy your new home thats all that matters.

People that come on here and automatically say, 'you should offer at least 10% off asking price' do not know what they are talking about.

The fact that you have put down a large deposit is sensible as it will protect you against falls when you come to re-mortgage or sell.

Enjoy your new home.:)

olias

People who post on forums like these are (in no particular order):

Helpful and knowledgeable
Bored
Lonely
Those that have an agenda
Those that have a chip on their shoulder
Those that suffer from sour grapes
Those that teach their grandmas to suck eggs
The paranoid
The mad
The deluded
The optomistic
The pessimistic
The mad
Trolls

etc etc.....you get the picture. Hopefully you will get mostly the first ones, but take a lot of what is said with a pinch of salt or at most as one element of a bigger program of research, and for gods sake, don't ever conduct a £100000 plus transaction on the basis of what some stranger has said on a forum!:eek:

By the way OP, this is not neccessarily aimed at you, just a general observation for any user of the forum.

Olias

spadoosh

which category are you, i tihnk im lonely!

o and optimistic