Should we go straight in 25k over asking price?

Gavin83

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

How much did you offer over the asking price?

MaryNB

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

Not if they stay in the same LTV band. If the OP has a 50% deposit the downvaluation will have to be significant to affect their interest rates, below the £195k asking. If the stay in the same LTV band then the only concern left is possibly making a loss if the decide to move in a few years.

Slinky

We offered £42K (and a bit) over asking (more than 10% over) after we'd been outbid offering £16.1K on another house in the same street. We negotiated down to £30K over asking with some things that the surveyor raised. We knew we overpaid but we wanted the house. In doing so, we've raised the ceiling in the street and 4 years later one has sold for at least £75K (with a bit of a bidding war having gone on )more than we paid. We have no intention of moving from our house and location won out as there are few streets which match our needs here.

pretamang

If you'll have no regrets paying 'over the odds' for it and want it that much then go for it OP.

We paid asking price for our last-but-one purchase, which at the time I felt was high for area but it was the only thing we'd seen for ages that ticked all the boxes and we had our first child on the way so were in no position to wait and see.

If we'd waited a few months a similar house on the same road came up cheaper, and in the end we sold for less than we bought it (even though prices in the area had increased slightly). But at the time it was worth that much to us.

nicknameless

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

Monsternextdoor = gazunderer ?

NameUnavailable

lhg91 said:

Unfortunately the way that the market is at the moment, we don't seem to have a choice other than paying over the odds. All houses in my opinion are overvalued at the moment based on previous selling prices. And unfortunately we are in a situation where we need to purchase a house now rather than waiting until the market comes down (if it ever does?!)

That is true, maybe we should keep our offer as it is for now then. I just wish things were more transparent!

The previous homes we were outbid on have been in the past month. Some we've been outbid on, some the vendor has chosen a lower offer (we are assuming cash-buyers), and some have just accepted the first offer and not even given us a chance to increase ours.

Firstly I would wait to see what happens after this weekend. It would appear that they've not had any better offer yet otherwise why haven't they accepted? Unless of course they are yet to find somewhere and so can wait it out, in which case you're wasting your time.

I would maybe offer another couple of £K before the weekend - they probably won't accept it but it puts you well on the radar as it were.

Approximately a third of offers end up falling through, change of mind, mortgage issues, survey issues......one or two of those other places you've offered on might come back up and they might be glad to take your offer! And, as always, there is ALWAYS another property you will like as much or more than the last one!

lhg91

NameUnavailable said:

lhg91 said:

Unfortunately the way that the market is at the moment, we don't seem to have a choice other than paying over the odds. All houses in my opinion are overvalued at the moment based on previous selling prices. And unfortunately we are in a situation where we need to purchase a house now rather than waiting until the market comes down (if it ever does?!)

That is true, maybe we should keep our offer as it is for now then. I just wish things were more transparent!

The previous homes we were outbid on have been in the past month. Some we've been outbid on, some the vendor has chosen a lower offer (we are assuming cash-buyers), and some have just accepted the first offer and not even given us a chance to increase ours.

Firstly I would wait to see what happens after this weekend. It would appear that they've not had any better offer yet otherwise why haven't they accepted? Unless of course they are yet to find somewhere and so can wait it out, in which case you're wasting your time.

I would maybe offer another couple of £K before the weekend - they probably won't accept it but it puts you well on the radar as it were.

Approximately a third of offers end up falling through, change of mind, mortgage issues, survey issues......one or two of those other places you've offered on might come back up and they might be glad to take your offer! And, as always, there is ALWAYS another property you will like as much or more than the last one!

I forgot to say, the property has actually been rented out as the previous owner had to go into a care home. They have had bad tenants and are deciding to sell because they cant put up with the hassle of continuing to rent the property out. So I dont think they're in any rush to sell by the sounds of it!

MysteryMe

I'd hang fire, yours may still be the best offer on the table. No point second guessing. I'm sure if a better offer was received the agent would get back to you to see if you were interested in upping yours or request best and final offers.

NameUnavailable

lhg91 said:

NameUnavailable said:

lhg91 said:

Unfortunately the way that the market is at the moment, we don't seem to have a choice other than paying over the odds. All houses in my opinion are overvalued at the moment based on previous selling prices. And unfortunately we are in a situation where we need to purchase a house now rather than waiting until the market comes down (if it ever does?!)

That is true, maybe we should keep our offer as it is for now then. I just wish things were more transparent!

The previous homes we were outbid on have been in the past month. Some we've been outbid on, some the vendor has chosen a lower offer (we are assuming cash-buyers), and some have just accepted the first offer and not even given us a chance to increase ours.

Firstly I would wait to see what happens after this weekend. It would appear that they've not had any better offer yet otherwise why haven't they accepted? Unless of course they are yet to find somewhere and so can wait it out, in which case you're wasting your time.

I would maybe offer another couple of £K before the weekend - they probably won't accept it but it puts you well on the radar as it were.

Approximately a third of offers end up falling through, change of mind, mortgage issues, survey issues......one or two of those other places you've offered on might come back up and they might be glad to take your offer! And, as always, there is ALWAYS another property you will like as much or more than the last one!

I forgot to say, the property has actually been rented out as the previous owner had to go into a care home. They have had bad tenants and are deciding to sell because they cant put up with the hassle of continuing to rent the property out. So I dont think they're in any rush to sell by the sounds of it!

If it's empty then I think they'll be wanting rid of it asap!

Monsternextdoor

Gavin83 said:

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

How much did you offer over the asking price?

£17,000.

We were happy to pay it but the bank got a bit antsy when we said we could pay the extra ourselves. 

Spoke to the EA and sent them the rics, who in turn went back to the client and told them the exact issues and we were still happy to buy it but we would give them £12,000 under the top line.

They agreed because they were still getting £5,000 over asking and they were happy that they didn't have to find comparable properties to contest the rics.

nicknameless said:

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

Monsternextdoor = gazunderer ?

Nope, we did all this well well before contracts and exchanges took place, My husband said I should be a poker player. 

We made the offer and sat back and let them stew for a weekend - admittedly my bum was twitching but we got the property and we complete in 2 weeks.