Offer on house accepted, but have I offered too much...

gibson1

Hello all,

I've had an offer accepted on a house recently.

Thought I'd wait to see if prices really would go down post Brexit, but perhaps unsurprisingly they continue to rise, and I need a home!

So the house I'm interested in has an asking price of £475,000 (overpriced in my opinion). Its a small two bedroom detached with a 100' garden.

Last year a 3 bed detached went for £420,000 on the same road. There's been a 7%ish increase in the price of property in the area in the last year.

I'm an all cash buyer. My initial offer of £400,000 was refused. I then went up to £420,000, based on the price of the property sold last year. This was initially refused but when I didn't make an increase the offer was accepted.

I'm now concerned that I may have offered too much.
The road seems very quiet, I really like the area and its close enough to work and my old mum which is important. In fact, the area is ideal.

An identical house is going for £400,000 but on a much busier road. Its also been on the market for a while, so I'd probably get a discount based on that and being an all cash buyer.

However, its probably not going to sell as easily as the one I'm interested in will, because of its proximity to a busy street. The bedroom view of the more expensive house is a forest on the horizon, the view from the front bed in the second house is flats. Of course, you pay a bit more for a nicer area.

Any thoughts would be greatly appreciated. I've knocked the price down by 12%, but as an all cash buyer should I have expected more of a discount?

Thanks for reading.

Startup1985

If you like the house and you can afford to pay that much does it matter? You have got a discount on the asking price and you made an offer that you must of felt happy to pay and now it has been accepted. Chill out and enjoy your new home when the time comes

anselld

As soon as a seller accepts an offer there is a tendency to wonder if they would have accepted less. You have given no other reason for thinking you have over offered, in fact you have justified your offer in that there is nothing else as good available at that price.

Wait and see what the survey valuation comes out at, then you might have some grounds for concern (or not).

BTW being an "all cash buyer" is not the big discount driver that you suggest. It is only of benefit to vendors who are in a desperate hurry to sell.

Missus_Hyde

gibson1 wrote: »

The road seems very quiet, I really like the area and its close enough to work and my old mum which is important. In fact, the area is ideal.

An identical house is going for £400,000 but on a much busier road. Its also been on the market for a while, so I'd probably get a discount based on that and being an all cash buyer.

However, its probably not going to sell as easily as the one I'm interested in will, because of its proximity to a busy street. The bedroom view of the more expensive house is a forest on the horizon, the view from the front bed in the second house is flats. Of course, you pay a bit more for a nicer area.

I think you've answered your own enquiry; the fact that it's in a nicer area with better views are the things for which you're paying a higher price.

For me, the most important thing is the location; once bought, you can't move the house to a better place if you don't like the neighbourhood and surroundings!

BTW being an "all cash buyer" is not the big discount driver that you suggest. It is only of benefit to vendors who are in a desperate hurry to sell.

Quite!!

warby68

Are 2 bed detached houses common where you are ?

Apart from bungalows, there are NONE (well, none that I've ever seen in many years) up here.

Does this make it tricky to value as in paying the detached premium but without the space most people need? How many people would pay for detached but only want 2 beds? Might be a different market where you are but could explain your underlying concern on pricing.

How much do non-detached 2 beds go for for example?

The formal valuation might help you out here.

Mickygg

You sound like you think you should be king for being a cash buyer. It is good as less likely for chain to collapse, but mortgages get arranged quickly these days and they are currently available everywhere.

You've knocked 12% off and want more. If you had had £420k rejected then I bet within a few weeks you would long for that offer to be accepted and then be happy.

Sounds like you have 2 options, continue at the agreed price or pull out. If I had accepted 12% below price and then someone came back asking for more off I wouldn't hesitate but to remarket as I wouldn't trust you for not lowering price right before exchange.

AnotherJoe

I think a 2 bed detached (assuming non bungalow) is a very rare beast anywhere, and that in part is what you will be paying the extra for.
Then there is the location, which as someone else pointed out is crucial, you can change many aspects of a house but that one is tough !
You seem to be getting absolutely everything you want, five or ten years down the line will the extra money make any difference?
I agree with Mickyg, you could lower your asking price but I think the odds will be very high you'd lose out entirely in that case.

jimbog

I think you done really well. As others have said if you were now to ask for more off now it will backfire big time.

agrinnall

Of course you've offered too much, every buyer does. And equally, every seller accepts a lower offer than they might have. There is no price at which everybody will be completely happy.

shortcrust

Sounds to me like a much quieter road and a lovely view are worth an extra 5%. I've noticed a lot of threads along the lines of "the house I've fallen in love with and want to buy is more expensive than similar properties nearby that I wouldn't dream of buying" like it's a mystery. The house you want is obviously more desirable than the cheaper one. Wouldn't it be odd if that wasn't reflected in the price?

Davesnave

Is the 2 bed capable of becoming a 3 bed? If so, it's a no-brainer.

Moving is expensive, so if someone has the ideal location and the capability to extend, that's a safer option than thowing the dice again.

You might think your needs won't change, but so have many of us, at some time.