Do you view houses above your budget?

booksandbikes

RHemmings said:

booksandbikes said:

RHemmings said:

It depends on the definition of 'budget'. I did look at houses over my target price for a house, but nothing that I couldn't actually afford. 

The advantage of buying a house outside London... 

Hmm, I'm currently looking at houses around 5 - 7% above what I can afford. Trying to determine whether I am wasting my time doing this! 🤦‍♀️Annoyingly, it feels like all the houses I really like are just above my budget!  

If you look at Zoopla sold house prices, then you can often find out what the asking price was, and what the actual sold price was. I'm not sure how it handles price reductions on its portal - there only seems to be one price for 'listed at', and then the sold price. But, this should tell you if there are houses in your area in the price range you're looking at that sell for what you can afford. 

Ah thanks! I usually use Right Move, but I will head to Zoopla to have a look.

annetheman

I don't view >£25,000 than I can afford, but have offered on houses above budget - some success, some failure ---

FAIL - searching for my dad in Surrey; as he is a cash-buyer in a guaranteed chain (developer buying his mortgage-free house), I tried to leverage his strong position but we've only offered on 1 at £310,000 for £325,000 asking price -- it is still for sale 2 months later. He is quite picky and doesn't offer much (we've viewed lots lol)!

SUCCESSES - search for my own in London. London property goes fast and any seller with a house around my budget is very likely to get a range of multiple offers if they have a decent, liveable house. For this reason, I don't feel too much like I'm insulting them, as I know they will have other options and can just tell me to F off lol! 

Amazingly, both times I offered earlier this year, the lower offers were accepted. The first house fell through due to timelines not working for the vendor.

The house I'm now buying was £25,000 under asking, which is reflective of its condition (rodent infestation, non-compliant extension which lenders wouldn't accept (hard to mortgage), damp, smells like dog wee). Asking price was over my budget but much lower than others in the street.

If I really like the house, I will put in my maximum always.

Also note that right now it is a buyer's market - slow, seemingly; imagine that'll change when rates come down OR it becomes accepted by most that current rates are the new norm. In a seller's market, I would have to change my approach.

strawb_shortcake

I've started just searching within 5 miles which covers where we want to live, min beds needed and no upper limit value. I quite like seeing what's coming on the market and also how our house compares. We aren't on the market yet - hopefully I won't still be saying that come Christmas...

pjs493

pjs493 said:

I researched houses that were up to my upper limit, which I was only willing to go up to for the perfect house. As it turned out I only viewed one house at that limit and it was sort of pushed on me by an estate agent because I was in the area anyway and it had just come on the market. It wasn't the perfect house so I quickly discounted it. I wouldn't have viewed it if I wasn't literally around the corner viewing another property with them at the time.

The house I've ended up buying was on for 'offers over' a set price and I wanted to stay just below that so I had plenty of budget for a new kitchen, new bathrooms, redecoration, etc. I am also in the position of being a cash buyer, but was willing to get a small mortgage for the 'perfect' house if it cost a bit more than I wanted to spend. I ended up getting the house I'm buying for 7.5% under the 'offers over' price, I was prepared to walk away and put an offer in on another property if the vendor insisted on 'offers over' because it needs a lot of work doing to it compared to similar properties on for that price. For me, remaining a cash buyer if possible was key and I managed to achieve that.

At one time I was looking to get a small mortgage to tide me over until I received more money. But, after speaking to some in-house mortgage advisors, I decided to stay a cash buyer. It's just so much easier, if possible. 

Ultimately, I made the same decision. I was only willing to get a mortgage if it was the only way to buy the perfect house if it was a little more than I had to spend in cash. I've managed to get the house I'm buying for what I think is a good price. I'd rather have to wait a few years to replace something like carpets, for example, and get the big stuff done first, like kitchen and bathrooms, than have a mortgage and do everything immediately.

Bigphil1474

We found the perfect house that was only £10k above our absolute top max budget. Seller wouldn't budge though so I kinda regret going to see it. The OH still not happy we couldn't buy it (4 months later). We got a nice compromise house near our comfortable budget. Even our top budget would've meant some sacrifices so worked out well for us I think 

GrannyKate

I am working on a very wide price range depending on how much work needs doing.  I have an absolute maximum that I want to spend and that would have to be perfect - I could afford a little more but I want to have money to get house exactly to my liking.  I, therefore, limit myself to £10-15000 over that target for anything that looks exceptionally good.  I don't want to waste people's time but you do need to look at a good range in order to be able to gauge what something might actually be worth. 

booksandbikes

Bigphil1474 said:

We found the perfect house that was only £10k above our absolute top max budget. Seller wouldn't budge though so I kinda regret going to see it. The OH still not happy we couldn't buy it (4 months later). We got a nice compromise house near our comfortable budget. Even our top budget would've meant some sacrifices so worked out well for us I think 

That is the frustration in looking at houses above budget...it's whether you can let it go if the seller doesn't reduce their price. This is what I will struggle with, getting my hopes up and then losing out.