Am I Overpaying?

bobster2

Herzlos said:

What they paid for it is irrevelant, what's it worth now is important. 

Is it worth that to you now? How long are you willing to wait for another one coming up for sale in the hope that (a) it's cheaper and (b) you manage to buy it?

Will you care that you overpaid a bit in 10,20,30 years time?

I agree that what the current owners paid is not the critical factor - but it does have some relevance. It provides information on how others valued the property.

And I reckon I've found the house on Rightmove. The other largely identical houses in the terrace sold for £170k, £172k, £163k, and £175k in 2018. Presumably the year the development was completed.

So this clearly shows that the current owners did not get a special deal out of line with the market in 2018.

None of the terraced houses have sold since. However, a detached house in the development sold in 2022 at a price 31% above it's 2018 price. In line with the NW house price index which projected a 33% gain 2018-2022.

So there is no evidence to support the idea that this street is showing gains way ahead of the regional trend.

The difference between the agreed price and a simple projection based on the past sale is not just "a bit". OP is stretching themselves to the limit (see their other threads about getting a mortgage) and planning to pay 20% over the house price index projection.

FrancisBegbie

bobster2 said:

Herzlos said:

What they paid for it is irrevelant, what's it worth now is important. 

Is it worth that to you now? How long are you willing to wait for another one coming up for sale in the hope that (a) it's cheaper and (b) you manage to buy it?

Will you care that you overpaid a bit in 10,20,30 years time?

I agree that what the current owners paid is not the critical factor - but it does have some relevance. It provides information on how others valued the property.

And I reckon I've found the house on Rightmove. The other largely identical houses in the terrace sold for £170k, £172k, £163k, and £175k in 2018. Presumably the year the development was completed.

So this clearly shows that the current owners did not get a special deal out of line with the market in 2018.

None of the terraced houses have sold since. However, a detached house in the development sold in 2022 at a price 31% above it's 2018 price. In line with the NW house price index which projected a 33% gain 2018-2022.

So there is no evidence to support the idea that this street is showing gains way ahead of the regional trend.

The difference between the agreed price and a simple projection based on the past sale is not just "a bit". OP is stretching themselves to the limit (see their other threads about getting a mortgage) and planning to pay 20% over the house price index projection.

That’s serious research 
you’re correct 
I know it’s over priced 
but I absolutely love it 
love it 

as you can see they don’t come on often and it hits every single criteria box 
including two private parking bays

how did you find this out when I didn’t even provide a post code ?

ReadySteadyPop

david29dpo said:

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.


 

If they bought when interest rates were very low it is relevant in that the OP will likely be overpaying for today`s market, especially if rates have to rise again.

ReadySteadyPop

GrubbyGirl_2 said:

why are you worried that your neighbour will sell their house for £15k less than the price you paid for yours?  If you buy for £285k that's the baseline estate agents will use to value any other houses in that block to come up for sale.  Also, if you're planning on staying there then over time the only way is up.

Not if interest rates stay higher or have to go up again, looks like the seller bought when borrowing costs were very manageable for most people. EA valuations are like asking prices, meaningless, mostly done just to get business, what counts are lender valuations and actual sold prices.

ReadySteadyPop

Herzlos said:

What they paid for it is irrevelant, what's it worth now is important. 

Is it worth that to you now? How long are you willing to wait for another one coming up for sale in the hope that (a) it's cheaper and (b) you manage to buy it?

Will you care that you overpaid a bit in 10,20,30 years time?

People on average tend to move evert 6 years (or they did before borrowing costs went up) overpaying by a lot now could be very problematic in future.

bobster2

FrancisBegbie said:

bobster2 said:

Herzlos said:

What they paid for it is irrevelant, what's it worth now is important. 

Is it worth that to you now? How long are you willing to wait for another one coming up for sale in the hope that (a) it's cheaper and (b) you manage to buy it?

Will you care that you overpaid a bit in 10,20,30 years time?

I agree that what the current owners paid is not the critical factor - but it does have some relevance. It provides information on how others valued the property.

And I reckon I've found the house on Rightmove. The other largely identical houses in the terrace sold for £170k, £172k, £163k, and £175k in 2018. Presumably the year the development was completed.

So this clearly shows that the current owners did not get a special deal out of line with the market in 2018.

None of the terraced houses have sold since. However, a detached house in the development sold in 2022 at a price 31% above it's 2018 price. In line with the NW house price index which projected a 33% gain 2018-2022.

So there is no evidence to support the idea that this street is showing gains way ahead of the regional trend.

The difference between the agreed price and a simple projection based on the past sale is not just "a bit". OP is stretching themselves to the limit (see their other threads about getting a mortgage) and planning to pay 20% over the house price index projection.

That’s serious research 
you’re correct 
I know it’s over priced 
but I absolutely love it 
love it 

as you can see they don’t come on often and it hits every single criteria box 
including two private parking bays

how did you find this out when I didn’t even provide a post code ?

I'm send you a DM explaining how I found it.

I'm not saying don't buy at that price - just be clear on your reasons.

ReadySteadyPop

bobster2 said:

Herzlos said:

What they paid for it is irrevelant, what's it worth now is important. 

Is it worth that to you now? How long are you willing to wait for another one coming up for sale in the hope that (a) it's cheaper and (b) you manage to buy it?

Will you care that you overpaid a bit in 10,20,30 years time?

I agree that what the current owners paid is not the critical factor - but it does have some relevance. It provides information on how others valued the property.

And I reckon I've found the house on Rightmove. The other largely identical houses in the terrace sold for £170k, £172k, £163k, and £175k in 2018. Presumably the year the development was completed.

So this clearly shows that the current owners did not get a special deal out of line with the market in 2018.

None of the terraced houses have sold since. However, a detached house in the development sold in 2022 at a price 31% above it's 2018 price. In line with the NW house price index which projected a 33% gain 2018-2022.

So there is no evidence to support the idea that this street is showing gains way ahead of the regional trend.

The difference between the agreed price and a simple projection based on the past sale is not just "a bit". OP is stretching themselves to the limit (see their other threads about getting a mortgage) and planning to pay 20% over the house price index projection.

Early 2022 borrowing rates were still very low.

jimbog

By offering £285K you have already  indicated to the seller that they didn’t in fact overprice it. 

Once the mortgage valuation comes through you might again have some leverage.  

Don’t let the falling interest rates stretch you too much whatever you decide 

Herzlos

ReadySteadyPop said:

Herzlos said:

What they paid for it is irrevelant, what's it worth now is important. 

Is it worth that to you now? How long are you willing to wait for another one coming up for sale in the hope that (a) it's cheaper and (b) you manage to buy it?

Will you care that you overpaid a bit in 10,20,30 years time?

People on average tend to move evert 6 years (or they did before borrowing costs went up) overpaying by a lot now could be very problematic in future.

Zoopla says people move on average every 23 years...

https://www.prospect.co.uk/news/how-many-times-will-the-average-brit-move-house

Albeit that's skewed more by younger folk moving a lot. 

Herzlos

FrancisBegbie said:

bobster2 said:

Herzlos said:

What they paid for it is irrevelant, what's it worth now is important. 

Is it worth that to you now? How long are you willing to wait for another one coming up for sale in the hope that (a) it's cheaper and (b) you manage to buy it?

Will you care that you overpaid a bit in 10,20,30 years time?

I agree that what the current owners paid is not the critical factor - but it does have some relevance. It provides information on how others valued the property.

And I reckon I've found the house on Rightmove. The other largely identical houses in the terrace sold for £170k, £172k, £163k, and £175k in 2018. Presumably the year the development was completed.

So this clearly shows that the current owners did not get a special deal out of line with the market in 2018.

None of the terraced houses have sold since. However, a detached house in the development sold in 2022 at a price 31% above it's 2018 price. In line with the NW house price index which projected a 33% gain 2018-2022.

So there is no evidence to support the idea that this street is showing gains way ahead of the regional trend.

The difference between the agreed price and a simple projection based on the past sale is not just "a bit". OP is stretching themselves to the limit (see their other threads about getting a mortgage) and planning to pay 20% over the house price index projection.

That’s serious research 
you’re correct 
I know it’s over priced 
but I absolutely love it 
love it 

as you can see they don’t come on often and it hits every single criteria box 
including two private parking bays

That's your answer then. Go for it and enjoy it without worrying too much about overpaying by a few k.