Dealing with fear of overpaying

hounsehunterftb

Hello guys!

We have an offer accepted on the house which we love. During the viewing we could see ourselves living there. And hence we offered accordingly in the hope to close the deal and start the procedure. (No chain and I am a FTB)

I do know that there is another house in the same "Close", end of terraced too, that was sold 2014 at the same price we are offering now. (Houses were built in 2012. So just 5 year old with NHBC warranty)

However the same structured houses in the 1-2 mile area around, less than 10 years (as this one) had been advertised (now sold stc) at about 7-8K lesser. But to be fair some of those are terraced while this one is "end terraced". Not sure if there is much of a price difference between end terraced and terraced, street and "close" or "court".

I know for the fact that I love the house and also know I am over paying slightly. But just once in a while I feel worried and get jitters about over paying.

Being a FTB could be daunting at times I believe. Anyway did you guys have that feeling after having the offer accepted on the house you love? I am sure I will feel better if there are such experiences.

Thanks for reading!

Regards,

househuntftb

ReadingTim

Would you have similar concerns if prices went up? Would you be worried that you'd underpaid? Thought not...

Offer what you think something's worth and what you can afford. Assuming it's acceptable to the seller, start the buying process, get on with your life and stop worrying about what might have been. You might have bought shares instead which might have made millions. You might have lost the lot. You might get hit by a bus tomorrow, you might not.

Surrey_EA

A fear of overpaying is most common, likewise most sellers feel they sold for too little - it's all perfectly natural!

I would say that a price differential of £7-8000 is reasonable for a terrace versus an end of terrace. However, it depends a little on what amount this represents as a portion of the purchase price. Are you buying at £100k or £400k?

Cakeguts

1 to 2 mile area doesn't count. Comparisons have to be with immediate area. No through traffic as in close is worth more than a quiet street that is open at both ends. End of terrace are more expensive than mid terrace because of getting dustbins etc from front to back of the house.

hounsehunterftb

Surrey_EA wrote: »

A fear of overpaying is most common, likewise most sellers feel they sold for too little - it's all perfectly natural!

I would say that a price differential of £7-8000 is reasonable for a terrace versus an end of terrace. However, it depends a little on what amount this represents as a portion of the purchase price. Are you buying at £100k or £400k?

Close to £135K. I guess you would say that does make huge margin then?

hounsehunterftb

Cakeguts wrote: »

1 to 2 mile area doesn't count. Comparisons have to be with immediate area. No through traffic as in close is worth more than a quiet street that is open at both ends. End of terrace are more expensive than mid terrace because of getting dustbins etc from front to back of the house.

Aah yes. I would have thought the same. Yes the area is completely what you call as "cul de sac". And parking spaces for about four cars for this property.

Cakeguts wrote: »

End of terrace are more expensive than mid terrace because of getting dustbins etc from front to back of the house.

How much do you think that would be given I am buying in the range of £130-140K ?

Surrey_EA

hounsehunterftb wrote: »

Close to £135K. I guess you would say that does make huge margin then?

Between 5-6%, I wouldn't say that was a huge margin.

hounsehunterftb

ReadingTim wrote: »

Would you have similar concerns if prices went up? Woud you be worried that you'd underpaid? Thought not...

Offer what you think something's worth and what you can afford. Assuming it's acceptable to the seller, start the buying process, get on with your life and stop worrying about what might have been. You might have bought shares instead which might have made millions. You might have lost the lot. You might get hit by a bus tomorrow, you might not.

Hahah "You might get hit by a bus tomorrow" :rotfl:

You are right. And we are starting the process! Just "worrying" seems like a part and parcel. I "worry" a lot. Contrast to my husband, who is ultra chilled

TBagpuss

I think it is quite common to have a bit of a 'wobble' when you've had an offer accepted, or when you move in. You've come done from the excitement and have time to start thinking of all the potential things which could go wrong.
Maybe you've overpaid a little, but presumably there were things about this house which drew you to it. Think of any (hypothetical) over payment as paying for those intangible things.

it may be that your house is worth a bot more because it is an end terrace, has good parking, is on a quiet street...

joshardy

I can totally relate to this. We have just had an offer accepted and have started the ball rolling with the buying process and I'm worried we've massively overpaid. We paid a bit under the asking price but there is nothing like it on the local market. It was a 3 bed semi that has been extended to become a 5 bed (4 really good sized bedrooms and a small one) in a quiet cul de sac. My (silly I think) problem came with not having anything else to measure it against. This isn't a long term thing I hope - just nervous as its our first house.

Hope the OP gets past this and enjoys their new home!

cloo

You need to let go and stop looking at other places’ values etc is all I can say.
If you like a place, it’s worth it. We’ve just spend a fortune getting the house we bought 2 years ago renovated (and it still isn’t finished) but what’s surprised me is how little I care how much it cost, it’s all been worth it to really make the place our own, change the layout, bring an unmodernised house up to date, and so I have no regrets. A home is such an important thing, it’s not like a magnified version of buying an expensive item of clothing you then realise you’ll never wear, the cost is kind of immaterial at the end of the day if you love living there.