Offering on overvalued house

thelastofman

We have seen a house in SE region that we really like that has a guide price of £440k. There was an open house this weekend and we believe there were at least 8 other viewers. We have been told to make an offer by the end of the weekend otherwise they will assume we're not interested and we're told if there are similar offers there will be a 'best and final' round. The house is a great layout and space wise but definitely needs modernisation.

Looking at the local market, there were two properties recently sold with same total size and similar layouts although one had an extra bedroom. One sold for £405k in Sept 2021 and listed again in Jan 2022 (?!) for £420k. Even more recently, there is a property sold STC at £415k for the exact same house (identical layout, num of bedrooms etc.) but it has already been modernised so should be worth more.

We are quite surprised that they have put this up for £440k guide price and are hinting offers will go above this price given recently sold properties. Obviously, with the property that's listed as Sold STC there's no way to tell how much it actually sold for. We've looked at Nationwide, Mouseprice, OnTheMarket and Zoopla and estimates are around ~£420k.

I appreciate the market is hot but there's always going to be 1-2 houses being overvalued. 

If we offer lower than asking price, what are the chances we miss out completely? What's the best way to make an offer under asking price without causing offence? What are the chances others won't do this research and offer more anyway? At any other time, we would stick to our own valuation but are partly worried about lower supply in the coming months.

anselld

Were there really 8 other viewers?  Did you see them?  Or is this just agent hot air, like the end of the weekend deadline.

Take however long you need to do your own research and make what you consider is a fair offer.  Don't believe what the agent tells you about other offers even at best and final stage, there might be none.  However, bear in mind also that if it is the one you want then it is worth offering something of a premium in order to secure it.

robatwork

The 2 hot takes from this are the identical but modernised house at £415k and ansell's "don't believe the agent" comment.

Assume what they are saying isn't true and the number of viewers was anywhere from 1 to 8 and ignore their hints.

If these houses really are identical, how can it be worth more than £415k?

Approach this with your head - if someone offers over the value then so be it.

thelastofman

anselld said:

Were there really 8 other viewers?  Did you see them?  Or is this just agent hot air, like the end of the weekend deadline.

Take however long you need to do your own research and make what you consider is a fair offer.  Don't believe what the agent tells you about other offers even at best and final stage, there might be none.  However, bear in mind also that if it is the one you want then it is worth offering something of a premium in order to secure it.

Well, they actually said 11 viewers but given it was a 2 hour window with 15 mins slots that's not possible. Also given that they said they "finished early" with the one before us I imagine some of the slots weren't filled. We definitely saw one after, we were mid-way through the 2-hour window so I imagine there were at least 1-2 before us.

Wise advice on the second point. If we're ready to make an offer does it hurt to place it before the weekend anyway or does that make us seem too keen?

thelastofman

To add to the research, we spoke to the agent of the other property and they did say it sold for a "fair bit over asking". Personally it would have had to sell for £40k over to make the £440k guide price on this reasonable considering the amount of work required.

robinwales

A house is only worth what you are prepared to pay for it, because ultimately it is not a house it is a HOME. My wife and I moved to West Wales and bought our current, and final, house in 2000. The builder (it was new) wanted £136k. I was prepared to pay £160k but obviously settled for £136k as no other buyers were on the horizon. The house in now worth £550k. Had the builder asked for £160k I would have paid it because it's the best house I have ever lived in. Home rather than house. Not everything is a bottom-line investment.

diystarter7

Like anything you want it could be "overpriced" but a price is only dictated by those wanting to buy it. Supply and demand rules.

When we sold our last house we were told by a couple of EA that it was "overpriced" and one rude one gave me a lecture somthing like "why would they pay xxx for your proerty when up the road is a much nicer area" -  We chose another agent that also felt it was over priced but give it a go, and we got almost 100% of the asking price a fair few k's over the EA's estimates. 

IMO, our property has a slight wide drive so could park at least three big cars i a row, the garden was wider and the property has loads of monet spent on it and was the best property in the raod IMO.

thelastofman

diystarter7 said:

Like anything you want it could be "overpriced" but a price is only dictated by those wanting to buy it. Supply and demand rules.

When we sold our last house we were told by a couple of EA that it was "overpriced" and one rude one gave me a lecture somthing like "why would they pay xxx for your proerty when up the road is a much nicer area" -  We chose another agent that also felt it was over priced but give it a go, and we got almost 100% of the asking price a fair few k's over the EA's estimates. 

IMO, our property has a slight wide drive so could park at least three big cars i a row, the garden was wider and the property has loads of monet spent on it and was the best property in the raod IMO.

Totally understand and can appreciate that hence why I want to approach this with respect but a house genuinely the same but done up should be valued similarly. 

diystarter7

thelastofman said:

diystarter7 said:

Like anything you want it could be "overpriced" but a price is only dictated by those wanting to buy it. Supply and demand rules.

When we sold our last house we were told by a couple of EA that it was "overpriced" and one rude one gave me a lecture somthing like "why would they pay xxx for your proerty when up the road is a much nicer area" -  We chose another agent that also felt it was over priced but give it a go, and we got almost 100% of the asking price a fair few k's over the EA's estimates. 

IMO, our property has a slight wide drive so could park at least three big cars i a row, the garden was wider and the property has loads of monet spent on it and was the best property in the raod IMO.

Totally understand and can appreciate that hence why I want to approach this with respect but a house genuinely the same but done up should be valued similarly. 

Thanks. The value is down to the seller for whatever reason. Like the example I gave you, the EA's were eager to give me a "same" similar value but I knew our house was worh a bit more as it was slightly different.

What you said, I see where you are coming from, but it is luck of the draw and the sellers circumstances, EG, marraige break up want to sell quick, someone needing to move for some urgent reason will sell lower prices etc

Good luck and I hope you get the right property and have a peacful and happy life there.

twoLou

thelastofman said:

anselld said:

Were there really 8 other viewers?  Did you see them?  Or is this just agent hot air, like the end of the weekend deadline.

Take however long you need to do your own research and make what you consider is a fair offer.  Don't believe what the agent tells you about other offers even at best and final stage, there might be none.  However, bear in mind also that if it is the one you want then it is worth offering something of a premium in order to secure it.

Well, they actually said 11 viewers but given it was a 2 hour window with 15 mins slots that's not possible. Also given that they said they "finished early" with the one before us I imagine some of the slots weren't filled. We definitely saw one after, we were mid-way through the 2-hour window so I imagine there were at least 1-2 before us.

Wise advice on the second point. If we're ready to make an offer does it hurt to place it before the weekend anyway or does that make us seem too keen?

Perhaps say you are very interested but would like to know how the agent came to that price?

I've done that myself and it gives you a little bit of an advantage as the agent is taken unawares, it can be interesting how they answer too, the truth or waffle!

You may find that the only staff who will be able to receive an offer are not in over the weekend anyway and you’ll need to wait until Monday, most agents check your own financial position before putting forward any offers I’ve found.

The best of luck, buying a house has become a very difficult compared to a few years ago.

robinwales

diystarter7 said:

When we sold our last house we were told by a couple of EA that it was "overpriced" and one rude one gave me a lecture somthing like "why would they pay xxx for your proerty when up the road is a much nicer area" -  We chose another agent that also felt it was over priced but give it a go, and we got almost 100% of the asking price a fair few k's over the EA's estimates. 

IMO, our property has a slight wide drive so could park at least three big cars i a row, the garden was wider and the property has loads of monet spent on it and was the best property in the raod IMO.

When we sold our cottage in Cambridge in 1999 I thought it worth £125k. The EA puffed himself up and said that was tosh! It went on for £120k. Two weeks later it was sold for £132k (10% over) after two buyers, both hospital doctors, were outbidding each other in order to get it. The one who got it wanted it as an investment property. As I said above, a property is worth what it is worth to the individual buyer, not just what an EA states.