Would you pay asking price or more for the right house?

[Dizeee]

Reason I ask is we are moving house, this time to our "forever home". We thought we bought that when we moved to where we are now in 2009, but, 2 kids, 3 animals and 2 road bikes further on we need more space. Luckily having renovated and extended, we can also now afford it.

We have been exhausting what is available in our budget to suit our needs and seen a lot. We have now found something which ticks every single box, plus it is at a smidgen below our max budget, plus it has even more space and room than we could ever have imagined. The compromise is location. Location is fine, but it is not the chocolate box village where we are currently. FWIW it is around the same value as we have sold ours for, only around 25k more. (3 miles up the road, for the same money, we move out of a cramped 3 bed terrace with no drive or garage into a very large 4 bed semi with large drive, electric garage and lot's of space).

However, this house seems to be extremely good value for what else is available for the same price. As a result there is some serious interest, and basically tomorrow there is an open day, which is the only few hours that anyone can view it. The open day is crammed full. There have also been a few special pre visits, such as ours today, for those who are very serious about it that cannot make the open day. It has taken a week of pestering to even get through the door but we managed it. Although offers will not be considered until open day tomorrow, we have submitted one to the agent as we are not attending tomorrow. I believe the other couple who have seen it early have done the same, and I have no doubt many more will follow.

So - this is bound to get to an almost "sealed bid" scenario, which was hinted by the estate agent today. They are going to gather all the offers on Monday ( if any but there certainly will be ) and start to go through them. I am sure that the house will go for very close to the asking price, and to be honest, we have both agreed without doubt we would pay the asking price. My concern is that if it gets to a "what is your best and final offer" scenario - how do you pitch it? You have no idea what others are pitching or how much they want it. We can go above the asking price, but it kind of fees wrong to do this, as people never really do this do they? Plus I am wary of being led down this route by a hooky agent when there may have been insufficient threat to our initial offer to warrant it.

What are your thoughts?

[Jasandjules]

If I wanted it enough I'd pay more than the asking price yes. You've said it is cheaper than similar elsewhere. So I'd pay up to their prices at least if not more.

[Muncher]

I have bought 3 houses, I have paid above asking price on all 3 of them. From 4% over, 19.5% over guide and 17% over guide. If you want it, it's just a question of paying what it takes to get it.

[Dan_1981]

Muncher said:

I have bought 3 houses, I have paid above asking price on all 3 of them. From 4% over, 19.5% over guide and 17% over guide. If you want it, it's just a question of paying what it takes to get it.

You don't fancy a 3 bed semi in sheffield do you?

[Piglet]

Are you in a position to proceed or do you need to sell your existing property? If they get someone who is able to proceed without a sale they will probably prefer them unless your offer is significantly more.

My friend has just had an offer accepted on something similar, they were not the highest offer but were accepted as they have nothing to sell.

But to answer the question, yes for the right property, in the right market I'd offer asking price or more.

[p1stonhead]

Instantly offered asking price for the house I just exchanged on.

still a bargain because I could put it up for sale for £50k more than I bought it for and I haven't even moved in yet.

It's everything we ever wanted - views, 4 bed, garden, garage etc etc. gonna be expensive mortgage for a while but meh, that's just a living cost to me.

[chrisga]

We have just been through this process. A house we wanted came up for sale at what we thought was below market value for similar properties in the area. We had to pester the agent to even see it. Put an asking price offer in then and there while viewing (we'd been looking for ages so knew it was what we wanted). Was told we weren't the first to do that that morning and due to interest it went to sealed bids. We offered 8-9% over the asking price and wrote a letter asking the agents to show to the vendors to explain we were a couple looking for a village house to do up and live in, not rent out or sell on to make a quick profit from. I think this went down well as the vendor was selling on behalf of her deceased parents estate and it had been her family home when she was a child. We recently met her at the property to do some measuring up as we have exchanged but not completed and she said she chose us because of the letter, not the money. She thought we'd fit in well in the village (2 miles from the village we just sold in).

Edited by chrisga on Friday 17th April 21:42

[Hoofy]

Dizeee said:

as people never really do this do they?

All the time in London. Open days really result in a case where offers creep above the asking price unless the property is awful and estate agents know this. 10-15 years ago, it was rare to get open days. You'd make an appointment etc.

Your best strategy if you both like the place is to go around criticising everything and putting other buyers off.

[chrisga]

It did feel pretty wrong offering above asking price (we're not in London) and I don't really want to know if we were the highest offer. I don't really think about it, ultimately we got the house we wanted for a price we can afford so why worry?

[mycroft]

OP your playing a game , you will only buy the property if you out bid every body else so it depends on how brave you are . If the agent wants someone else to get it you don't have a chance no matter how much you bid.

[JeffreyLebowski]

I paid under the asking price for our place, but probably more than I could have if I'd been better at negotiating. Bottom line for me is that unless you buying as an investment, £5/10/15k on a place worth £2/3/4/500k over 10-30 years is nothing, and I wouldn't want to loose the place I'd set my heart on over that.

[Dizeee]

Interesting advice thanks. Its along the lines of what I was thinking. I can just hear my out of touch mother who has not delved into the market for over 25 years shaking her head and sighing about nobody ever getting the asking price. Times have changed though. This house purchase is everything we have ever wanted so its now ir never. We are under offer too. Looks like if it gets to that stage we will offer slightly over asking.

[NewNameNeeded]

Dizeee said:

I can just hear my out of touch mother who has not delved into the market for over 25 years shaking her head and sighing about nobody ever getting the asking price.

I have one of those! We bought our previous place for five grand over asking. We had seen lots of houses and felt we could value them well. We'd seen some sell and the next ones on the street go on for fifteen grand more. We knew there was a lot of interest in the property. So we offered five grand over and got it. My folks also thought the estate agents must have played us, but that was the market and five grand to get the house was a tiny amount more in terms of total asking price.

The question I always ask myself is 'if I pay this much how will I feel that first morning I wake and wander around my new property?'. If it feels wrong and you'll be full of regret then don't do it. If it is a number you can live with go for it!

We lived in that house for three years, loved every minute and not once though about paying over asking.

And my Mum even apologised and admitted to knowing nothing when she first saw it (and loved it and 'understood')... Oh, and again when we sold it three years later for one hundred grand more

[Pit Pony]

Because I have watched every episode of that TV drama where they con people every week, and which I can't remember the name of, I'd be assuming that every one else at the open day was an out of work actor paid to be there and the OP is the "Mark".

I tend, having lost money on my first 2 houses, to take a clinical view of house buying, and no longer believe there is any such thing as a dream house.

There is a house which meets your ALL your likely functional needs, appeals to your aesthetic mind, and your aspirational Mrs Bucket desire to impress your friends. But Look another 20 miles, or wait 5 years and you'll find something you want more.

That said, If you can afford it, and you intend to stay there sometime, go for it.

[3000GT ANT]

My only advice would be to pick a price and do not go above it, even for the 'right house'. Speaking from recent experience do a quick check on the estate agent who is selling it. We have just gone through exactly the same and to cut a very long story short, we had two issues, 1. the estate agent was one of these start up anywhere internet based ones and made all sorts of random claims (estate agent of the year) so just check to see if the estate agent are signed upto the property ombudsman code of practice and 2. What is the situation of the seller i.e are they down sizing, moving abroad....as the house we put a 'sealed' bid on they were going through a divorce and it was a complete joke added to the fact the estate agents were completely clueless in the end, we gave up and bought another house. oh and yeah more houses always come on the market so don't worry too much, I know people say this a lot but it couldn't be more true! good luck!

[grumbledoak]

Don't fixate on the 'asking price', it's just a number pulled out of the air by a twerp in a bad suit. Ask yourself what you would pay to live there, ask said twerp what it would cost to secure it, and offer the smaller of the two.

[Jobbo]

You really should be going to the open day, or sending a friend, so you can gauge the numbers of people interested.

Be wary though; if you thought your last place was going to be your forever home and even after extending you're moving relatively soon, is this one really the forever home worth paying extra for? Location must be a big factor.

[Renovation]

Yes I have paid asking price and I have offered above asking price too.

The last place I bought I was told would be going on the market for £520k but because I wanted it and saw huge potential I paid £570k to keep it off the market.

Having spoken to the neighbours I'm glad I did as several of them would have paid substantially more.

I wouldn't pay more than I think it's worth though - particularly at the minute as I'm sure prices will collapse soon (although I've been saying that for years)

[FrankAbagnale]

Put in your sealed bid and if you lose, re-offer a higher amount.

[ScottishExile]

Offer what you think it's worth for you to live there, ignoring completely what the list price is. The list price is just a number that you're getting hung up on due to 'convention'.

Your Convention/mind set/Mother dictates that you MUST offer less than the list price. Whereas if you were in Scotland, then your mindset/convention would be telling you that you MUST offer over the list price.

Just offer what you think it's worth to you to live there.