Am I Overpaying?

FrancisBegbie

Hi

I am a single fella , no children , no partner and live with my parents in a nice area of Liverpool where property is expensive . 

I have been looking for a small manageable home , extremely low maintenance and garden for my dog . 

I have found one , it literally ticks every single box , Redrow build in a close full of 500k houses there is one block of terraced houses with two private parking bays and rear access- Sue Perb. 

However, the owner was particularly stubborn with it listed for £290,000 and wouldn’t go anywhere less than £285,000 which I have had accepted.

He bought the house for £170,000 in 2018. 

I am quite upset over the price as I know it’s over valued - however there have been no other sales , it suits my every needs and I love it . 

My concern is someone else next door will sell at £260,000 and I will have been silly .


The houses prices are growing in the area 4% a year . 

My friend has just bought a house 10 mins away terraced with no parking no garden and no downstairs toilet in a worst road not a posh close for £195,000.

Does it sound like im doing the right thing ?

david29dpo

What the seller paid is irrelevant.
Why did you put in the offer in if you think its over priced?
What next door sell for in the future is anyones guess.

You could withdraw your offer and wait, it may sell or not, who knows?

At the end of the day only you know if you are doing the right thing.


 

theartfullodger

We/you can answer your question in 5 or 10 years when the property prices in future are known.  Otherwise it's just a guess, sorry.

BungalowBel

The house is worth whatever it sells for (i.e. whatever price was agreed between the seller and the buyer).  

If you are unhappy with the price you have agreed, then withdraw your offer.

If you really want that house, then you will have to pay £285k if the owner will not go lower.

If it was me, and I was unhappy with the price, then I would look elsewhere.

silvercar

Once you move in, are you going to have this on your mind, or are you going to enjoy living in your new home? That should determine whether it was right to go ahead.

Given that the sort of house seems to be in short supply, I would go for it - unless it is going to constantly be on your mind. I would also think that buying now vs in a few years time, means no more waiting around in frustration. That has to be worth something.

they say it’s always better to buy the cheapest house in an expensive area than vice versa.

bobster2

The general trend in the NW according to the Nationwide House Price Index was an increase of about 42% from 2018 to 2025. So that would take £170k to £241k in 2025.

This doesn't factor in whether there were any improvements/extensions etc.

silvercar

What does Zoopla say it’s worth? Not that accurate, but can give you an idea, especially for a house that hasn’t been extended since the last sale date.

FrancisBegbie

bobster2 said:

The general trend in the NW according to the Nationwide House Price Index was an increase of about 42% from 2018 to 2025. So that would take £170k to £241k in 2025.

This doesn't factor in whether there were any improvements/extensions etc.

You’re right I looked at this but no way will it sell for that , not a chance. .

FrancisBegbie

silvercar said:

What does Zoopla say it’s worth? Not that accurate, but can give you an idea, especially for a house that hasn’t been extended since the last sale date.

£240k but that’s obscene 
It’s never going to happen 

david29dpo

In my experience Zoopia is a waist of time.

bobster2

FrancisBegbie said:

bobster2 said:

The general trend in the NW according to the Nationwide House Price Index was an increase of about 42% from 2018 to 2025. So that would take £170k to £241k in 2025.

This doesn't factor in whether there were any improvements/extensions etc.

You’re right I looked at this but no way will it sell for that , not a chance. .

The NW index is a good general guide to trends - of course the increase for a particular area could be greater if it's become particularly desirable, and for an individual house if it's been improved significantly. Or because the current owner got a great deal back when they bought it.

The price you're planning to pay would be a nearly 70% increase over the 2018 vs a general NW index trend of 40%. So you need to have a clear idea as to why the price should increase so much more than the general trend for this house.

So has the house been renovated since 2018? Extended? Improved in some way?