Offering on overvalued house

eidand

thelastofman said:

jimbog said:

thelastofman said:

Was told other offers are much higher than ours and have been asked for a best and final offer. Apparently the others at least exceed the guide price. Can’t see this property being worth that much so will walk away

or more accurately: 'can't see this property being worth that much to me' 

If it sells in excess of the asking price then it was worth more to someone else. If you're finding that this is continually the case then either you will need to up your budget or look in a different area

Of course, it goes without saying that this is just my opinion and my own valuation. I'm not concerned about whether other buyers agree, hence why I'm happy to walk away and let it go to those who may value it more. We've done our research so if a house does end up selling for that much it'll be more to do with the buyer's circumstances and the success of the EA tactics if that becomes more prevalent in the area then sure we'll consider it. That does not mean I will start offering way above market value out of fear.

You're too stuck on this "market value". What does that even mean?

We saw people make this kind of statements in 2007, in 2015, in 2020. Today you'd bite a vendors hand to buy at what they were asking even a year ago. 

If you find the right property, in the right area and you can afford it, then buy it. Anything else is irrelevant noise.

peterhjohnson

The great thing about an over-priced house from a buyer's perspective is that there will be less competition. Do your research and make a sensible offer even if it's below asking. Expect initial refusal. If someone does offer more then you lost. If it stays on the market, you may win if you are patient - because loads of buyers just thought "too expensive" and didn't put in a sensible offer. They were too chicken or just couldn't be arsed.

rdchick

Irrespective of the board price if I wanted the house and wasn't willing to pay asking, my best and final offer would be just that... Best and final. No negotiation, set my cards on the table showing if I have cash, or if I need a massive mortgage (which you could then swing to say the mortgage provider may down value the property anyway at valuation), I can move fast or take it at the buyers pace... 

We had our offer accepted because we knew the sellers wanted to be sold ASAP to move away and we also knew that most of the other viewings were in chains and we are not... So didn't offer silly money, just what we were happy to pay! 

lookstraightahead

robatwork said:

I want to pick up on a point a previous post made. That post said the vendor determines the value of the house. That's wrong.

The vendor determines the price of the house. The buyers determine the value. 

Or indeed the lender 

diystarter7

peterhjohnson said:

The great thing about an over-priced house from a buyer's perspective is that there will be less competition. Do your research and make a sensible offer even if it's below asking. Expect initial refusal. If someone does offer more then you lost. If it stays on the market, you may win if you are patient - because loads of buyers just thought "too expensive" and didn't put in a sensible offer. They were too chicken or just couldn't be arsed.

Or they could lose genuine buyers as this to me would indicate they are taking the p and not really want to sell.

thelastofman

eidand said:

thelastofman said:

jimbog said:

thelastofman said:

Was told other offers are much higher than ours and have been asked for a best and final offer. Apparently the others at least exceed the guide price. Can’t see this property being worth that much so will walk away

or more accurately: 'can't see this property being worth that much to me' 

If it sells in excess of the asking price then it was worth more to someone else. If you're finding that this is continually the case then either you will need to up your budget or look in a different area

Of course, it goes without saying that this is just my opinion and my own valuation. I'm not concerned about whether other buyers agree, hence why I'm happy to walk away and let it go to those who may value it more. We've done our research so if a house does end up selling for that much it'll be more to do with the buyer's circumstances and the success of the EA tactics if that becomes more prevalent in the area then sure we'll consider it. That does not mean I will start offering way above market value out of fear.

You're too stuck on this "market value". What does that even mean?

We saw people make this kind of statements in 2007, in 2015, in 2020. Today you'd bite a vendors hand to buy at what they were asking even a year ago. 

If you find the right property, in the right area and you can afford it, then buy it. Anything else is irrelevant noise.

The right property includes how much I think it’s worth and not just whether I can afford it. Putting offers in on any house that is nice and you can afford is partly what has led to desperation and bidding wars. 

We stopped where we thought was the right price and decided to wait. As a result, we have found something nicer for us a few days later. With this one we’re not messing around, don’t worry.