Would you pay asking price or more for the right house?
Discussion
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A tricky situation, one I'm thinking of currently, good houses round me go very quickly, and many people are in the position you mention, rented, ready to rock. I think unless I can save enough money to buy another house without selling mine I'll go into rented when we're ready to move, seems like the only way in competitive markets.
A tricky situation, one I'm thinking of currently, good houses round me go very quickly, and many people are in the position you mention, rented, ready to rock. I think unless I can save enough money to buy another house without selling mine I'll go into rented when we're ready to move, seems like the only way in competitive markets.
If you want the house. Offer as much as you can afford. Sealed & final bids means exactly that. We viewed an amazing house 18 months ago. Sounds like exactly the same situation as you. Open day absolutely rammed with potential buyers.
House was up for 320k. We went in with a sealed bid of 345k. We were sure it was ours. We lost it. Went for 355k!! We tried ringing to increase our bid to 360k, but it was refused as it wouldn't have been fair. We learned a valuable lesson!! If you want the house that badly, go to the absolute maximum you can afford!
House was up for 320k. We went in with a sealed bid of 345k. We were sure it was ours. We lost it. Went for 355k!! We tried ringing to increase our bid to 360k, but it was refused as it wouldn't have been fair. We learned a valuable lesson!! If you want the house that badly, go to the absolute maximum you can afford!
nick s said:
If you want the house. Offer as much as you can afford. Sealed & final bids means exactly that. We viewed an amazing house 18 months ago. Sounds like exactly the same situation as you. Open day absolutely rammed with potential buyers.
House was up for 320k. We went in with a sealed bid of 345k. We were sure it was ours. We lost it. Went for 355k!! We tried ringing to increase our bid to 360k, but it was refused as it wouldn't have been fair. We learned a valuable lesson!! If you want the house that badly, go to the absolute maximum you can afford!
And people wonder why the housing market is nuts!House was up for 320k. We went in with a sealed bid of 345k. We were sure it was ours. We lost it. Went for 355k!! We tried ringing to increase our bid to 360k, but it was refused as it wouldn't have been fair. We learned a valuable lesson!! If you want the house that badly, go to the absolute maximum you can afford!
illmonkey said:
nick s said:
If you want the house. Offer as much as you can afford. Sealed & final bids means exactly that. We viewed an amazing house 18 months ago. Sounds like exactly the same situation as you. Open day absolutely rammed with potential buyers.
House was up for 320k. We went in with a sealed bid of 345k. We were sure it was ours. We lost it. Went for 355k!! We tried ringing to increase our bid to 360k, but it was refused as it wouldn't have been fair. We learned a valuable lesson!! If you want the house that badly, go to the absolute maximum you can afford!
And people wonder why the housing market is nuts!House was up for 320k. We went in with a sealed bid of 345k. We were sure it was ours. We lost it. Went for 355k!! We tried ringing to increase our bid to 360k, but it was refused as it wouldn't have been fair. We learned a valuable lesson!! If you want the house that badly, go to the absolute maximum you can afford!
nick s said:
illmonkey said:
nick s said:
If you want the house. Offer as much as you can afford. Sealed & final bids means exactly that. We viewed an amazing house 18 months ago. Sounds like exactly the same situation as you. Open day absolutely rammed with potential buyers.
House was up for 320k. We went in with a sealed bid of 345k. We were sure it was ours. We lost it. Went for 355k!! We tried ringing to increase our bid to 360k, but it was refused as it wouldn't have been fair. We learned a valuable lesson!! If you want the house that badly, go to the absolute maximum you can afford!
And people wonder why the housing market is nuts!House was up for 320k. We went in with a sealed bid of 345k. We were sure it was ours. We lost it. Went for 355k!! We tried ringing to increase our bid to 360k, but it was refused as it wouldn't have been fair. We learned a valuable lesson!! If you want the house that badly, go to the absolute maximum you can afford!
If it was under-valued, then fine, £355k may have been fair, but to just bid more and more is a disaster.
We've bidded on houses, to be told there is a higher offer and walked away due to is thinking it's not worth that cost. We then find out that the SOLD price is less than we offered. Agents being dicks, or deals falling through?
Where does mortgage valuation come into it?
Looking at nicks situation above, lets say he went in at the max he can afford, 400k, the next highest bid was that 355k, he'd had paid a huge amount more than it was on for an indeed anyone else (sadly doesn't work like ebay!), but with a house listed at 320, what happens when you say you want a mortgage against it for a considerable sum more than what it was on the market for?
Looking at nicks situation above, lets say he went in at the max he can afford, 400k, the next highest bid was that 355k, he'd had paid a huge amount more than it was on for an indeed anyone else (sadly doesn't work like ebay!), but with a house listed at 320, what happens when you say you want a mortgage against it for a considerable sum more than what it was on the market for?
okgo said:
Where does mortgage valuation come into it?
Looking at nicks situation above, lets say he went in at the max he can afford, 400k, the next highest bid was that 355k, he'd had paid a huge amount more than it was on for an indeed anyone else (sadly doesn't work like ebay!), but with a house listed at 320, what happens when you say you want a mortgage against it for a considerable sum more than what it was on the market for?
I never mentioned mortgage valuation, I said valued, as in, compared to other properties in the area etc.Looking at nicks situation above, lets say he went in at the max he can afford, 400k, the next highest bid was that 355k, he'd had paid a huge amount more than it was on for an indeed anyone else (sadly doesn't work like ebay!), but with a house listed at 320, what happens when you say you want a mortgage against it for a considerable sum more than what it was on the market for?
Market value is market value, He'd have struggled to get a mortgage at a sale price of 400k if the mortgage provider says it's worth £330k. But then he'd have offered WELL over market value.
It was answering his point about paying as much as you can afford. He could afford 400k as he spent that the next month, if he had paid what he could afford it would have been 50 grand more than anyone else and 70 odd grand more than the asking, which I doubt would have gone through would it?
okgo said:
Where does mortgage valuation come into it?
Looking at nicks situation above, lets say he went in at the max he can afford, 400k, the next highest bid was that 355k, he'd had paid a huge amount more than it was on for an indeed anyone else (sadly doesn't work like ebay!), but with a house listed at 320, what happens when you say you want a mortgage against it for a considerable sum more than what it was on the market for?
I guess the mortgage company has to agree to the value put on the property against amount borrowed. So if you're borrowing nearly the full amount they may be a bit more wary than if you only need 50% perhaps? I'm no mortgage adviser though... Looking at nicks situation above, lets say he went in at the max he can afford, 400k, the next highest bid was that 355k, he'd had paid a huge amount more than it was on for an indeed anyone else (sadly doesn't work like ebay!), but with a house listed at 320, what happens when you say you want a mortgage against it for a considerable sum more than what it was on the market for?
Luckily our mortgage company valued ours at what we offered but we didn't go silly and were only 8% ish above asking (still making it less than other similar properties in the local area).... Whether they researched and knew the asking price beforehand I don't know.
I'm sure I read ages ago that on average houses sell for between 5 and 15% under the asking price.
This hasn't been the case with the last two places my better half and I have bought. One was ~6% above asking and the other was ~14% above asking (put in %age terms it doesn't sound like much at all...).
But in each case we really wanted the house. So as others have said, if you really want a place and can afford it - the asking price + whatever you're comfortable with is fine. IMO.
I appreciate many people won't pay more (and will in fact insist on paying less than asking) on principle.
This hasn't been the case with the last two places my better half and I have bought. One was ~6% above asking and the other was ~14% above asking (put in %age terms it doesn't sound like much at all...).
But in each case we really wanted the house. So as others have said, if you really want a place and can afford it - the asking price + whatever you're comfortable with is fine. IMO.
I appreciate many people won't pay more (and will in fact insist on paying less than asking) on principle.
The dream is shattered.
We offered 15k over the asking price, which was also the next best offer, and despite this the vendors still turned it down and favoured the lower offer simply as there was no chain. Crazy, as our chain of 2 is watertight.
So, there is nothing else we are interested in and I am sick of looking at the same alternatives online.
Thanks for your advice though.
We offered 15k over the asking price, which was also the next best offer, and despite this the vendors still turned it down and favoured the lower offer simply as there was no chain. Crazy, as our chain of 2 is watertight.
So, there is nothing else we are interested in and I am sick of looking at the same alternatives online.
Thanks for your advice though.
GetCarter said:
Won't help, but I offered asking price or 'more if needed' to buy my dream. Money seemed somewhat insignificant. 8 people offered over the asking price, but we were lucky enough to get it.
IMHO. If you want something don't f
k about - buy it!
This if you can make it happen OP. I was scared to put our offer in, it was double the cost of the house we were in at the time but the house is PERFECT for us. Don't regret it for a second now that we have it. IMHO. If you want something don't f
k about - buy it!Dizeee said:
Crazy, as our chain is watertight.
Sorry to hear of your plight but having sold a number of properties I can assure you there is no such thing as a "watertight" chain. Things can and do go wrong all the time despite the best efforts of those in a chain. I would always favour a cash buyer (either with all the cash in the bank or a mix of cash and and approved mortgage).
Simply put, they are in a position to buy today, not at some point in the future. A few weeks or months out. If none of the many moving parts go wrong.
Harsh but true.
Edited by AC43 on Tuesday 21st April 17:11
AC43 said:
Sorry to hear of your plight but having sold a number of properties I can assure you there is no such thing as a "watertight" chain....
Harsh but true.
This.Harsh but true.
One of the hardest things to do is find a good home and then turn off the emotion when it comes to the transaction.
You'll find something better. And maybe this place will still be available when you have a suitcase of cash...
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