Hi All

jamie_128 · 17 August 2019 at 10:54PM

In a bit of a panic as went a bit crazy today and bought a house within an hour of viewing. On closer reflection i feel like we have maybe paid more than its worth, found a house on the same street with another bedroom for the same price and looks to a good standard, this is a 3 bed. And looking at sold prices doesent fill me with much hope. It was in high demand viewing and interest wise so we wanted to secure it.

rightmove.co.uk/property-for-sale/property-84040331.html

This is the link for anyone interested. Will this affect anything when it comes to getting a mortgage if it is over valued? And do you think its overvalued looking at the rest of the market surrounding? A lot of other 3 bed in different streets but same area sold for like 187-190, some with sun room extensions.

Cheers all.

freeof1 · 17 August 2019 at 11:19PM

The lender will value it and base the LTV % on that value, not the amount you've agreed to pay the seller. Eg if you are borrowing 150k and paying 200k, you may think it's a 75% LTV. But if the lender values it at 187k then that pushes it up to 80% LTV, which can affect your mortgage rate.

However from what I hear lenders are known for valuing properties at the same amount as the purchase price unless they feel it is significantly overpriced.

If it turns out they say it's overpriced, then use that to negotiate a new, lower price. The sellers would be foolish not to agree to this as they know almost all other buyers will hit a similar problem (apart from cash buyers who won't ever get a lender's valuation).

More importantly however is if you think you're paying too much for this place or not. If you search in that postcode + 1/2 mile for 3 bed detached houses, then it has the joint top price with 2 other houses. So it's on the top end. But only you can say if you think it's worth it!

jamie_128 · 17 August 2019 at 11:39PM

Thank you.

Does kerb appeal and the fact its got a detatched garage and large block paved driveway do anything to the value? Its the only house in the estate that looks like that and its tucked in a cul de sac.

freeof1 · 17 August 2019 at 11:50PM

It probably makes little difference to the lender's valuation.

In terms of actual market value, kerb appeal absolutely can influence price. Would you be happy paying less for one of the other houses?

jamie_128 · 18 August 2019 at 8:43AM

does a 4th bedroom add a lot of value compared to a 3, im trying to figure out if this is worth the same as a 4 bed due to its kerb appeal and detatched garage etc.

Mutton_Geoff · 18 August 2019 at 8:57AM

Surely you didn’t buy a house that quickly? You simply put an offer in that was accepted? Perhaps you should have carried out some due diligence and comparisons prior to offering but it’s not too late to do that now before you spend any money on surveys or legal fees/searches etc.

There is absolutely no problem pulling out at any time up until exchange of contracts although the later you leave it, the more it will cost you in lost fees. I would completely ignore the agent’s attempts to load guilt on you if you do so.

You may also want to amend the title of the post as most people won’t bother clicking on “Hi All” instead of something more relevant like “Is this Middlesborough house overpriced?”

ethank · 18 August 2019 at 8:59AM

Doing a search of recent sold prices, there are a lot of three beds selling at about 190k. Remember there will be a time lag in the data.

Cakeguts · 18 August 2019 at 9:13AM

You are going to pull out of the sale anyway once you realise what a heap of trouble a shared access is.

You just withdraw your offer.

AdrianC · 18 August 2019 at 9:31AM

jamie_128 wrote: »

In a bit of a panic as went a bit crazy today and bought a house within an hour of viewing. On closer reflection i feel like we have maybe paid more than its worth

You haven't bought it yet.
You've put an offer in, and it's been accepted.
There's a long, slow process before you do actually buy it in several months time - first, you'll be legally bound to buy it (but won't have yet) at exchange, then you actually buy it and get the keys at completion.

Right up until the point at which you exchange and are legally bound, you can revise your offer or pull out completely, with no penalty at all, except any fees you've accrued to that point.

Will this affect anything when it comes to getting a mortgage if it is over valued?

The mortgage lender will simply view your borrowing as relative to what their valuation says the property's worth. That would mean a higher loan-to-value, which may be outside what they're willing to lend you, or which they'll charge you more for.

Mickygg · 18 August 2019 at 9:44AM

I’m another for the shared driveway meaning for me a big fat no.

As said above a shared driveway is a constant thread issue on this forum. If the house is the one in the corner on street view then there are potential issues here. That grass verge has got ‘hey inconsiderate neighbour park on me and make access really difficult’ written all over it.

On your impulse offer, I too have been there, but it’s not too late not by a long shot. You have some options:

1 keep researching until you know what max amount you are ok to pay.
2 go back to EA to revise offer and of course have a high chance of losing house as it’s new to market and sellers will be peed off.
3 pull out completely and learn from experience
4 proceed with you offer if you are ok with number 1

FWIW with my learning experience I researched and went ahead with my original offer even though I knew on impulse i had offered too much. I offered same day on viewing to. I didn’t want to lose house. Sold house several years later for less than market movement all because I paid too much. Did I regret it? Yes.

jamie_128 · 18 August 2019 at 1:08PM

Thanks for all your responses so far chaps.

With regards to shared access, could a few people look at a satellite image and see what they think.

Land wise we have that huge blocked paved driveway, and a space for a car in front of that garage, then the bit behind that is obviously shared access for the 3 houses. Where do you think we could potentially have problems? That grass verge someone mentioned is someones garden?

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