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    • seebeeess
    • By seebeeess 11th Sep 19, 6:00 PM
    • 5Posts
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    seebeeess
    Did I offer too much? (Buying)
    • #1
    • 11th Sep 19, 6:00 PM
    Did I offer too much? (Buying) 11th Sep 19 at 6:00 PM
    FTB in London. Went to see a property with a guide of 425-450k. Seller told us that he had the house on the market for 3 months and it didn't get much interest, so now it's with this other agent and they're starting to get some viewings. Also told us that they needed to move quickly as they had another house lined up that they want to start proceedings on. This didn't work for us as we don't want to move until February / March next year so that we can use our HTB ISAs, so I emailed the agent basically saying "Lovely house, may have put an offer on if the sellers situation was more compatible with ours, please give my best, various pleasantries etc".

    The agent came back and asked us what we would have offered, and we put in 415k. Agent called me back a couple days later and informed me that their other house had fallen through and they were now prepared to work with us and to our timeline, but not at that price. Discussed it with my wife later and we put in 425k - the lower end of their guide price.

    The next day the agent emailed me saying that he was "pretty sure they can get it off the market at that price" and later in a phonecall "you've offered 425k which they will be delighted with". Lo and behold, the seller accepts the offer and it's now marked down as Sold STC. But I'm a bit concerned at the confidence of the agent here - the fact that he was pretty sure they would accept my offer makes me think it was well above what they expected to receive and what the property is worth.

    The amount is not a concern for us at all - it's comfortably affordable and well within what we can borrow (Our max budget was 460k). But I'm worried that I've been naive here and have ended up offering way more than I should have.

    Thoughts?
Page 1
    • Cakeguts
    • By Cakeguts 11th Sep 19, 6:04 PM
    • 6,704 Posts
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    Cakeguts
    • #2
    • 11th Sep 19, 6:04 PM
    • #2
    • 11th Sep 19, 6:04 PM
    How does the price compare to similar properties in the same area? You must know this because you would have checked before you made your offer?
    • Slithery
    • By Slithery 11th Sep 19, 6:09 PM
    • 1,992 Posts
    • 3,323 Thanks
    Slithery
    • #3
    • 11th Sep 19, 6:09 PM
    • #3
    • 11th Sep 19, 6:09 PM
    But I'm a bit concerned at the confidence of the agent here - the fact that he was pretty sure they would accept my offer makes me think it was well above what they expected to receive and what the property is worth.
    Originally posted by seebeeess
    A lot of sellers will have told their agents a price that they'd accept, and you offered the lower limit of the asking range. I'm surprised your offer was accepted as most buyers who specify a range won't go as low as their lower limit.


    TLDR - The vendor wouldn't have accepted a lower offer. Either you think that it's worth it or you don't so you pull out.
    • theartfullodger
    • By theartfullodger 11th Sep 19, 6:10 PM
    • 10,560 Posts
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    theartfullodger
    • #4
    • 11th Sep 19, 6:10 PM
    • #4
    • 11th Sep 19, 6:10 PM
    You'll only find out (and if it was otherwise a wise purchase..) after 2-3 years. Bit like marriage.
    • seebeeess
    • By seebeeess 11th Sep 19, 6:13 PM
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    • 6 Thanks
    seebeeess
    • #5
    • 11th Sep 19, 6:13 PM
    • #5
    • 11th Sep 19, 6:13 PM
    It's really hard to tell - there are houses that sold for less by about 10- 15k but are less modern and well maintained than this one and don't have an extension, and there are houses that are about 20k more but have better features, such as a conservatory, larger garden or attic conversion.
    • Fred.Y
    • By Fred.Y 11th Sep 19, 6:18 PM
    • 8 Posts
    • 3 Thanks
    Fred.Y
    • #6
    • 11th Sep 19, 6:18 PM
    • #6
    • 11th Sep 19, 6:18 PM
    agree it takes time to know and you have to understand the current market: now is a buyers market, for example...

    Check out the advisory as have very useful guides on this

    amusing to compare to marriage and agree
    • ethank
    • By ethank 11th Sep 19, 6:45 PM
    • 2,084 Posts
    • 1,101 Thanks
    ethank
    • #7
    • 11th Sep 19, 6:45 PM
    • #7
    • 11th Sep 19, 6:45 PM
    I think you are reading too much into it. I definitely told my EA what was the least I would accept. It had a guide of 425-450k and you are at the bottom end well done.

    If you had asked me to wait 6 months to complete. It would be a no from me.
    • davidmcn
    • By davidmcn 11th Sep 19, 6:57 PM
    • 13,198 Posts
    • 15,045 Thanks
    davidmcn
    • #8
    • 11th Sep 19, 6:57 PM
    • #8
    • 11th Sep 19, 6:57 PM
    It's really hard to tell - there are houses that sold for less by about 10- 15k but are less modern and well maintained than this one and don't have an extension, and there are houses that are about 20k more but have better features, such as a conservatory, larger garden or attic conversion.
    Originally posted by seebeeess
    Sounds about right then? Valuation isn't an exact science so a few percent here or there isn't much to worry about.
    • Crashy Time
    • By Crashy Time 11th Sep 19, 9:42 PM
    • 8,445 Posts
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    Crashy Time
    • #9
    • 11th Sep 19, 9:42 PM
    • #9
    • 11th Sep 19, 9:42 PM
    Do you have a link to the general area, not your house just nearby?
    • seebeeess
    • By seebeeess 12th Sep 19, 12:07 PM
    • 5 Posts
    • 6 Thanks
    seebeeess
    Do you have a link to the general area, not your house just nearby?
    Originally posted by Crashy Time
    I can't post links but it's a 3-bedroom terraced within 1/2 mile of the postcode RM11 - Zoopla will show it with that criteria.
    • Crashy Time
    • By Crashy Time 16th Sep 19, 11:12 PM
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    Crashy Time
    I can't post links but it's a 3-bedroom terraced within 1/2 mile of the postcode RM11 - Zoopla will show it with that criteria.
    Originally posted by seebeeess
    Rightmove is showing lots of 25k and 50k price drops for that area, which obviously puts you in a strong position as a buyer....unless you already bought?
    • SunnyCat
    • By SunnyCat 16th Sep 19, 11:21 PM
    • 130 Posts
    • 65 Thanks
    SunnyCat
    This didn't work for us as we don't want to move until February / March next year so that we can use our HTB ISAs
    Originally posted by seebeeess
    Do you mean LISAs? You can use HTB ISAs within three months of opening (once you have 1.6k in it).
    • Vestra
    • By Vestra 17th Sep 19, 6:56 AM
    • 822 Posts
    • 284 Thanks
    Vestra
    So it was sitting at 425k unsold for 3 months? Prices have dropped in London during that time so suggest you have hugely overpaid sorry.
    • Lokolo
    • By Lokolo 17th Sep 19, 7:34 AM
    • 20,219 Posts
    • 15,399 Thanks
    Lokolo
    I can only assume its this one https://www.rightmove.co.uk/property-for-sale/property-83442845.html

    When comparing it to another https://www.rightmove.co.uk/property-for-sale/property-82801928.html

    You have overpaid, but I have no idea how much the second one sold for.

    But if you have, does it matter? Are you planning on only living there for 5 years or so? If it's a 10 year house, after 10 years, its unlikely to bother you that much having overpaid by 10-20k (which is 5%!).

    Get the survey done first. Then go from there.
    • shortcrust
    • By shortcrust 17th Sep 19, 7:36 AM
    • 2,523 Posts
    • 3,992 Thanks
    shortcrust
    You found a house you want and you’ve offered an amount that’s broadly in line with nearby house prices, and an amount that’s well within your budget. Might you be overthinking things?

    No one ever knows if they’d got the best possible deal they could have struck. I suspect I could have got my house for 10k less, but as I sit of an evening in my garden watching the sunset with a glass of wine in my hand I’ve never once regretted paying the price I paid.
    • ReadingTim
    • By ReadingTim 17th Sep 19, 9:01 AM
    • 3,451 Posts
    • 5,175 Thanks
    ReadingTim
    You got a house you are happy with, to move into on a timetable you are happy with, at a price you are happy to pay. You might have been able to save yourself 10-15k, but at the cost of the timetable, or even the property completely, which seems somewhat foolish given it represents less than 3.5% of the purchase price, and you'd be back to square one.

    So yes, this small premium is probably worth it for the convenience factor.

    Also, would you be so worried if prices had risen, and you felt you'd offered too little. Would you revise your offer upwards? Thought not.
    • Crashy Time
    • By Crashy Time 17th Sep 19, 11:08 PM
    • 8,445 Posts
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    Crashy Time
    https://www.rightmove.co.uk/property-for-sale/property-72883591.html

    75k price drop so far and still insanely over-priced...Oh my Lordy what are some people thinking?!!
    • Lokolo
    • By Lokolo 18th Sep 19, 8:26 AM
    • 20,219 Posts
    • 15,399 Thanks
    Lokolo
    https://www.rightmove.co.uk/property-for-sale/property-72883591.html

    75k price drop so far and still insanely over-priced...Oh my Lordy what are some people thinking?!!
    Originally posted by Crashy Time
    That they need a house to live in and they don't want to rent?
    • Crashy Time
    • By Crashy Time 19th Sep 19, 10:17 PM
    • 8,445 Posts
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    Crashy Time
    That they need a house to live in and they don't want to rent?
    Originally posted by Lokolo
    So they are happy to drop the price because they know the price of their next purchase is also dropping, is that what you mean?
    • Diocletian II
    • By Diocletian II 20th Sep 19, 10:21 AM
    • 442 Posts
    • 117 Thanks
    Diocletian II
    So they are happy to drop the price because they know the price of their next purchase is also dropping, is that what you mean?
    Originally posted by Crashy Time
    I wonder what most neighbours think of sellers who drop their prices. Are they considered realists, or traitors? I find the dynamics fascinating. I read about one street that threw a party when someone hugely overpaid for a house (much to the dismay of the buyer). Conversely, would they throw a lynching for a seller in the street who dropped their price?
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