Am I Overpaying?

Uriziel

There is no such thing as too high or too low for a property since supply and demand will decide the price and you are obviously happy to pay it. If there had been any other cheaper property that you liked you would have gone with it but clearly there is not which means you are paying the correct price. Stop thinking about the money and enjoy the home instead.

ReadySteadyPop

Herzlos said:

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. 

That is because borrowing costs went up.

ReadySteadyPop

Herzlos said:

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. 

If there is a mortgage involved the lender won`t let you overpay, not nowadays.

ReadySteadyPop

Uriziel said:

There is no such thing as too high or too low for a property since supply and demand will decide the price and you are obviously happy to pay it. If there had been any other cheaper property that you liked you would have gone with it but clearly there is not which means you are paying the correct price. Stop thinking about the money and enjoy the home instead.

Not really, supply is massively up and many sellers are still holding on for silly prices.

SarahB16

FrancisBegbie said:

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 ?

I too have located the house that you are thinking of buying.  That is a really beautiful close and the surrounding houses should maintain their values/incease in value and I think yours will too.  It's got a decent enough sized back garden too.  Not too big but neither too small.  

In Liverpool as with all places there are some nice areas and some not so nice areas and I genuinely believe you are doing the right thing paying £290,000 for that house as it looks lovely.    

Herzlos

ReadySteadyPop said:

Herzlos said:

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. 

That is because borrowing costs went up.

I'm not getting into the why because it's off topic. I was just correcting your claim. 

Bigphil1474

OP, if you get a L2 survey done, it'll give you a guide price, as will your mortgage application. If either are way below what you are paying, you have your answer. Banks will only lend if they can get their money back if you default. 

TheJP

Bigphil1474 said:

OP, if you get a L2 survey done, it'll give you a guide price, as will your mortgage application. If either are way below what you are paying, you have your answer. Banks will only lend if they can get their money back if you default. 

Only if you pay extra for the valuation on a L2 survey.

Albermarle

TheJP said:

Bigphil1474 said:

OP, if you get a L2 survey done, it'll give you a guide price, as will your mortgage application. If either are way below what you are paying, you have your answer. Banks will only lend if they can get their money back if you default. 

Only if you pay extra for the valuation on a L2 survey.

Although if you have an informal chat with the surveyor after the survey, which often happens, they well be wiling to give you a verbal indication of their opinion.( if you ask nicely) .

ReadySteadyPop

SarahB16 said:

FrancisBegbie said:

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 ?

I too have located the house that you are thinking of buying.  That is a really beautiful close and the surrounding houses should maintain their values/incease in value and I think yours will too.  It's got a decent enough sized back garden too.  Not too big but neither too small.  

In Liverpool as with all places there are some nice areas and some not so nice areas and I genuinely believe you are doing the right thing paying £290,000 for that house as it looks lovely.    

Are they paying or borrowing though, big difference, and if borrowing has the lender given their valuation yet?

https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/mortgage-rates-climbing-bank-england-cut-interest-rates-3853853