Worried about valuation on house I'm buying

purpleparrotuk

Hi. I have sold my house and have had an offer accepted on a house we like. All is progressing ok and I have just paid the search fees and applied for the mortgage. They are getting back to me with a valuation date.
The problem I have is that I fear the house is overpriced. It was on the market at 375,000 and I had an offer accepted at lower than this. Other similar properties have sold for around 65k less. In 2010 the house sold for £225k and its has since been extended at the rear and had some improvements done. Surely the price would not have increased by nearly £150k in 7 years? A similar thing happened with another house I put an offer on previously. It sold for £200k in 2010 and was on the market last week for £350k. I am happy with the price I have offered but fear the mortgage valuation will be a bit of a shock.
Shall I just wait to see what comes of the valuation before I panic unecessarily?

G_M

If you think it was over-priced, why did you offer what you did?

Do you think it is worth paying what you've offered in order to get it and live in it?

Looking at 2010 prices, especially if it's been extended since, is a waste of time.

The question to ask yourself is how would you feel if you now went back and offered £10K less (or whatever), and the seller said no and sold it to someone else?

Would you feel regret at losing it?
Would you be able o find another similar property at the (lower) price to replace it?

purpleparrotuk

G_M wrote: »

If you think it was over-priced, why did you offer what you did?

Do you think it is worth paying what you've offered in order to get it and live in it?

Looking at 2010 prices, especially if it's been extended since, is a waste of time.

The question to ask yourself is how would you feel if you now went back and offered £10K less (or whatever), and the seller said no and sold it to someone else?

Would you feel regret at losing it?
Would you be able o find another similar property at the (lower) price to replace it?

I did offer less at first and it was rejected. Like I said I think the house personally is worth my offer. I'm not sure why the other houses on the road are on the market so low. Maybe they want a quick sale?

I would feel regret if I lost the house. Been looking at loads of houses and this feels like home. Houses similar to this in other areas are valued at what I have offered. There haven't been loads sold or on the market to compare to really. There are only a few recent ones. Not a lot sold over that last few years in the road. That's why it harder to value I guess.

goodwithsaving

purpleparrotuk wrote: »

Surely the price would not have increased by nearly £150k in 7 years?

Yes it can have, plus more. Depends where it is, local market etc.

purpleparrotuk

goodwithsaving wrote: »

Yes it can have, plus more. Depends where it is, local market etc.

Thanks I think I will just wait for the valuation and see what happens.

G_M

purpleparrotuk wrote: »

I would feel regret if I lost the house. Been looking at loads of houses and this feels like home. Houses similar to this in other areas are valued at what I have offered.

Then stop asking yourself this question. You've found a property you like, and want, and can afford and agreed a price.

Buy it and stop making comparisons.

Fiesto88

If only worry if a down-valuation from the mortgage lender's surveyor might result in you having to stump up a bigger deposit than you can afford. Even in that scenario, you can always go back to the vendor and see if they will move on price. In all likelihood they'd only encounter the same problem again with a subsequent buyer if you had to pull out.

The other consideration is the future. If its a forever home and you're reasonably comfortable that you won't sell any time soon, then it doesn't matter as long as you're comfortable with what you're paying. Just be aware that, if you borrow at a high LTV and pay over the valuation amount, you might be stuck in the higher interest rate bands for longer when you come to remortgage.

PField

purpleparrotuk wrote: »

I did offer less at first and it was rejected. Like I said I think the house personally is worth my offer. I'm not sure why the other houses on the road are on the market so low. Maybe they want a quick sale? .

Why aren't you interested in the houses with the lower asking prices? Clearly there is something in this house that is worth the extra.

ACG

2010-2012 was when the market was at an all time low and now the market is pretty buoyant. I bought my last house in 2012 and sold it earlier this year for about 60% more than I bought it for.

Why did you offer more than you think it is valued at? What your buyer bought it for is irrelevant, they bought it at a different time and in a different state to what it is now.

newatc

I thought the house we bought in 1987 was overvalued but wife liked it so bought.

30 years on, we are still here, don't want to move and whether we paid too much in 1987 is of no interest at all.

Crashy_Time

goodwithsaving wrote: »

Yes it can have, plus more. Depends where it is, local market etc.

And of course depending on if you can find a buyer at that price.