Have I offered too much?

Dazzler74

Hi all,

My wife and I are FTB and had a few viewings now. The last house I called the EA to book a viewing, was given a time and day and told that there would be other viewers before/after but it was not an 'open house' style viewing. Got there at the allocated time to find it was actually an open house viewing. Annoying, but not the end of the world although we did feel a bit more pressured into making an offer after seeing so many people looking at the property.

So to the nitty gritty - the EA had put pressure on us that 'offers had already been submitted', and also that they expect it to reach the asking price or even above asking price and that it would be sold that very day. Being a naive FTB, I fully believed all they have said. We come away from the house, really liking it, the area, the layout etc but it does need some work. A whole new kitchen, double glazing all round and new doors are the main issues that need addressing in the near future.

When we got home, my wife and I decided we would put a offer in, and I was thinking we could start low and bid up if the offer gets rejected. Rang the EA, asked if there would indeed be a chance to revise bids if rejected at which he advised to get our 'full and final' offer in as they expect it will go for the asking price. We ended up offering £146k, with the asking price being just under £150k 'guide price'.

Having had a chance to think, I now feel we may have offered too much due to the work required. I have checked price history on rightmove, and the last house to sell on the street went at £125k in 2014 (this also looks like it would have needed work doing, similar to the one we have an offer in on). The last house to sell on the street which looks far more the finished article was sold in 2011 for £130k. I am just nervous we have actually offered too much due to the pressure from the EA and the fact we are FTB and still learning what this house buying malarkey is all about!

While the housing market around us does seem very scarce, I am concerned we will be paying too much and potentially making a costly mistake. When it comes down the the valuation by the mortgage provider, will their valuation reflect the true value, thus ensuring we haven't paid too much?

Cupcake85

Can't answer if it was too much... It's what you want to pay.

We recently view a house offers over 180k... We liked it and knew there was more interested and the estate agents said there had been others offers so our best and final was 190.... We didn't get it. I don't know what they took (I will in a few months when it shows online)

So if you want the house offer what your happy to pay

Good luck

Dazzler74

It is what we are happy to pay, particularly reflecting on the prices in the local area (this house is in a village near by). I am just a little nervous/stressed we may have offered too much...I guess it's all a part of the game. My main point from my post is with regards to the mortgage lenders valuation - will they give a true reflection on the value of the property, thus putting my mind at rest that we aren't overpaying for the property? Thanks for the advice/input!

Debtslayer

Dazzler74 wrote: »

Hi all,

My wife and I are FTB and had a few viewings now. The last house I called the EA to book a viewing, was given a time and day and told that there would be other viewers before/after but it was not an 'open house' style viewing. Got there at the allocated time to find it was actually an open house viewing. Annoying, but not the end of the world although we did feel a bit more pressured into making an offer after seeing so many people looking at the property.

So to the nitty gritty - the EA had put pressure on us that 'offers had already been submitted', and also that they expect it to reach the asking price or even above asking price and that it would be sold that very day. Being a naive FTB, I fully believed all they have said. We come away from the house, really liking it, the area, the layout etc but it does need some work. A whole new kitchen, double glazing all round and new doors are the main issues that need addressing in the near future.

When we got home, my wife and I decided we would put a offer in, and I was thinking we could start low and bid up if the offer gets rejected. Rang the EA, asked if there would indeed be a chance to revise bids if rejected at which he advised to get our 'full and final' offer in as they expect it will go for the asking price. We ended up offering £146k, with the asking price being just under £150k 'guide price'.

Having had a chance to think, I now feel we may have offered too much due to the work required. I have checked price history on rightmove, and the last house to sell on the street went at £125k in 2014 (this also looks like it would have needed work doing, similar to the one we have an offer in on). The last house to sell on the street which looks far more the finished article was sold in 2011 for £130k. I am just nervous we have actually offered too much due to the pressure from the EA and the fact we are FTB and still learning what this house buying malarkey is all about!

While the housing market around us does seem very scarce, I am concerned we will be paying too much and potentially making a costly mistake. When it comes down the the valuation by the mortgage provider, will their valuation reflect the true value, thus ensuring we haven't paid too much?

House is worth what you are willing to pay for it.
Do you really want the house?
Will you be happy paying 146k?
If you don't get the house will you be gutted or not particularly upset?

I don't think you can compare house prices from 2 and 5 years ago, unless house prices haven't risen in your area in that time

PasturesNew

We will never know ... but I can tell you that everybody thinks they offered too much when they buy a house.

Hoploz

What else is available to buy? Are similar houses priced similarly and selling? If its the best thing you've seen and prices are going o increase before you find another house you want as much, it's worth paying a little extra ... What if you're still looking when the same money buys a less good house? I've seen it happen many times. Miss out on one (or more) trying to scrape a couple of k off and end up upping the budget 20k for a smaller house a year later!

But you've offered below the asking price in any case so you are unlikely to be too far over the top. If the asking price was too high they wouldn't have had as many viewings.

justme111

You can use nationwide page to see house price increase in % terms and so compare prices id properties sold a few years ago. You can always ring ea with a revised offer or walk away completely at this stage if you think it was too high.

alchemist.1

Unfortunately you dont have any real comparators. A property sold two years ago isnt going to give you any indication at the level of market at this moment in time.

If properties around the area are scarce, it could well go above the asking price.

Essentially , i think you are worrying about nothing. If you feel you have offered too much, just withdraw the offer.

alchemist.1

justme111 wrote: »

You can use nationwide page to see house price increase in % terms and so compare prices id properties sold a few years ago. You can always ring ea with a revised offer or walk away completely at this stage if you think it was too high.

Doesnt really work with specific areas does it? Overall general percentage of a huge area like the Northwest?

MoneyEM

Out of curiosity what area are you looking at? If it's anywhere in the south east, i'm guessing it probably will go at or over asking price..

I saw this one house that was priced at 200k but needed 30k of work (new windows, doors, boiler (no central heating)! Damp proofing, kitchen, bathroom... the list can go on...) so I offered £175k... apparently someone paid over 190k for it even though good houses in the area that need no work sell for 200k... madness.

walwyn1978

You offer a) what you can afford b) what you feel is a fair price reflecting how much you want to live there, based on factors like size, local amenities, distance to work/school/family etc.

If you feel you're happy with both a) and b) it doesn't matter what other people paid a few years ago. There's no such thing as as too cheap or too expensive, it's how much you value that property. If you're not happy with either a) or b), you can withdraw your offer. Good luck with it - hope you get the outcome you want.,