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    • DD265
    • By DD265 6th Aug 18, 5:33 PM
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    DD265
    Looking above your budget
    • #1
    • 6th Aug 18, 5:33 PM
    Looking above your budget 6th Aug 18 at 5:33 PM
    We haven't done a mortgage application yet but have crunched some numbers with the broker. If we're looking at 150k including our deposit, would you set the limit on property searches at 150k or a little higher?

    It'll be a hard 'this is the max we can offer' if it comes to it, but I'm aware that house prices are often set to allow room for negotiation, so I was thinking maybe extending the search up to 160k?
Page 1
    • sal_III
    • By sal_III 6th Aug 18, 5:38 PM
    • 578 Posts
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    sal_III
    • #2
    • 6th Aug 18, 5:38 PM
    • #2
    • 6th Aug 18, 5:38 PM
    Feel free to search for above budget, but the problem with that is the potential disappointment when you find that "dream home" and the vendor won't budge. Or you even worse if you decide to overstretch and face up an unexpected bill a year down the line.
    • Sunny Intervals
    • By Sunny Intervals 6th Aug 18, 5:50 PM
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    Sunny Intervals
    • #3
    • 6th Aug 18, 5:50 PM
    • #3
    • 6th Aug 18, 5:50 PM
    I looked at properties over my budget and bought one which was advertised for more than I wanted to pay. As long as you're able to recognise which ones are genuinely overpriced and which ones aren't, you should be okay. Otherwise, you'll fall into the trap Sal mentioned and end up with unrealistic expectations of the sort of property you can afford.
    • DD265
    • By DD265 6th Aug 18, 6:07 PM
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    DD265
    • #4
    • 6th Aug 18, 6:07 PM
    • #4
    • 6th Aug 18, 6:07 PM
    Thanks both. I'm still getting to grips with the valuations side of things (I swear there's no logic to some of them!) so will proceed with caution.

    My husband definitely won't let us go over budget and the 'winning' property at the moment is on for 140k which makes things feel achievable!
    • sal_III
    • By sal_III 6th Aug 18, 6:12 PM
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    sal_III
    • #5
    • 6th Aug 18, 6:12 PM
    • #5
    • 6th Aug 18, 6:12 PM
    If you are talking about EA valuations - there is perfect simple logic behind them. Most people fall into the trap of selecting the EA who gives them the highest valuation, thinking that said EA will be best equipped to sell their property at the highest possible price, with added benefit for the EA of getting more commission.

    So EAs are somewhat liberal when making their valuations.
    • PasturesNew
    • By PasturesNew 6th Aug 18, 6:20 PM
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    PasturesNew
    • #6
    • 6th Aug 18, 6:20 PM
    • #6
    • 6th Aug 18, 6:20 PM
    160k, but, in the main, most houses would probably only knock 5k off maximum.... but you never know your luck. Also, while you're looking, if you viewed one at 160k then you never know if it might randomly be reduced to 150k just 3 weeks later and you can be on the phone PDQ and say "2nd viewing please... I'll have it".
    • steampowered
    • By steampowered 6th Aug 18, 6:21 PM
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    steampowered
    • #7
    • 6th Aug 18, 6:21 PM
    • #7
    • 6th Aug 18, 6:21 PM
    Make sure you have factored in stamp duty, conveyancing costs and moving costs. It all adds up.
    • Bluebell1000
    • By Bluebell1000 6th Aug 18, 9:20 PM
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    Bluebell1000
    • #8
    • 6th Aug 18, 9:20 PM
    • #8
    • 6th Aug 18, 9:20 PM
    When my Dad was looking, we kept trying to ignore the house at offers in region of 160k, because his budget was 150k. After seeing a lot of houses that weren't right, we viewed, he loved it, got it for 151k. So it may be possible, and yes, I'd say it is worth looking around that budget, but probably not if it's newly listed for sale.
    • kinger101
    • By kinger101 6th Aug 18, 9:21 PM
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    kinger101
    • #9
    • 6th Aug 18, 9:21 PM
    • #9
    • 6th Aug 18, 9:21 PM
    What PasturesNew said. Also - I'd say if it's been on the market say six weeks at 160K, many vendors have probably already shifted their expectations downwards.
    • M2808
    • By M2808 10th Aug 18, 11:22 PM
    • 27 Posts
    • 22 Thanks
    M2808
    I have seen houses that I have been to view drop significantly. One started at 175, I went to view when it was 140 which was pushing it for me but it was too small and then seen it's just gone STC with advertised price of 125.
    Another I went to view at 140 is now being advertised at 125, still not sold.
    Doesn't always happen, but it does happen.
    The one I am currently purchasing started at OO 135 and my offer (accepted) is 125.
    I was looking up to 140 even though my current budget is 125, would have been 130 by Christmas and 140 by next year.
    • jonnygee2
    • By jonnygee2 10th Aug 18, 11:41 PM
    • 158 Posts
    • 121 Thanks
    jonnygee2
    Definitely set at 160k, maybe even a bit higher.

    If you do see a house that you like for 160k, just phone up the estate agent and explain the situation. They'll have a good idea about what position the seller is in.

    I got just over 5% (20k) off the advertised price of my house when I bought recently.
    • mije1983
    • By mije1983 10th Aug 18, 11:55 PM
    • 3,543 Posts
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    mije1983
    It entirely depends on the market in your area. You'd struggle to get a discount on prices where I live currently. The last 4 that have sold nearest me have all gone fairly quickly and for at least asking price.

    Having said that, I was actually the last purchase in my road to get a discount off asking price 2 years ago, although that was only 1.5%!

    If the market is slow moving where you are looking, then discounts will be easier to obtain.

    • MysteryMe
    • By MysteryMe 11th Aug 18, 12:03 AM
    • 1,914 Posts
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    MysteryMe
    It does depend on your local housing market but assuming stuff isn't being sold within days then I don't see too much harm in looking a little above your budget. Viewing a variety of houses is the best way to get the feel of what you can get for your money and you'll be better informed on what is overpriced and what looks reasonable. Also the more layouts you see the more you'll be able to tailor your preferences so when you do see an ideal house at the right pic you can jump straight in.
    • Cakeguts
    • By Cakeguts 11th Aug 18, 12:14 AM
    • 4,719 Posts
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    Cakeguts
    It the properties in a certain area are very popular and sell in days and are above your budget there is no point in viewing them because they will sell very close to the asking price.
    • DD265
    • By DD265 11th Aug 18, 7:34 PM
    • 1,419 Posts
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    DD265
    Thanks all, for now I'm comfortable capping at 160. Good points about time on market vs existing reductions! I'm still slowly sussing out what the market is doing in the area we're looking at, but I don't think we'll struggle for choice.
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