Ever overpaid for a house
Discussion
Petrolsmasher said:
Bought a house within an hour of viewing it today.
Stunning house, massive kerb appeal, absolutely immaculate, close to good schools and a good area.
Had a lot of interest and only been on the market for a day so we acted quick, ended up paying full price for it and on closer reflection we have maybe overpaid for the house about 5% of its true value. Does this cause any problems when it comes to getting a mortgage?
Its not crazy overpriced, maybe 7.5k at most but no less.
It causing trouble with mortgage entirely depends on your situation. Your equity/ deposit matters. Stunning house, massive kerb appeal, absolutely immaculate, close to good schools and a good area.
Had a lot of interest and only been on the market for a day so we acted quick, ended up paying full price for it and on closer reflection we have maybe overpaid for the house about 5% of its true value. Does this cause any problems when it comes to getting a mortgage?
Its not crazy overpriced, maybe 7.5k at most but no less.
If it’s a £200k house and you’ve paid £210k, then doh t there will be a problem if you are looking for a 65% LTV mortgage. If you want a 95% however, that could be a problem
Petrolsmasher said:
eltax91 said:
Petrolsmasher said:
Bought a house within an hour of viewing it today.
Stunning house, massive kerb appeal, absolutely immaculate, close to good schools and a good area.
Had a lot of interest and only been on the market for a day so we acted quick, ended up paying full price for it and on closer reflection we have maybe overpaid for the house about 5% of its true value. Does this cause any problems when it comes to getting a mortgage?
Its not crazy overpriced, maybe 7.5k at most but no less.
It causing trouble with mortgage entirely depends on your situation. Your equity/ deposit matters. Stunning house, massive kerb appeal, absolutely immaculate, close to good schools and a good area.
Had a lot of interest and only been on the market for a day so we acted quick, ended up paying full price for it and on closer reflection we have maybe overpaid for the house about 5% of its true value. Does this cause any problems when it comes to getting a mortgage?
Its not crazy overpriced, maybe 7.5k at most but no less.
If it’s a £200k house and you’ve paid £210k, then doh t there will be a problem if you are looking for a 65% LTV mortgage. If you want a 95% however, that could be a problem
Petrolsmasher said:
Bought a house within an hour of viewing it today.
Stunning house, massive kerb appeal, absolutely immaculate, close to good schools and a good area.
Had a lot of interest and only been on the market for a day so we acted quick, ended up paying full price for it and on closer reflection we have maybe overpaid for the house about 5% of its true value. Does this cause any problems when it comes to getting a mortgage?
Its not crazy overpriced, maybe 7.5k at most but no less.
So it's a stunning house, massive kerb appeal, absolutely immaculate, close to good schools and a good area. Stunning house, massive kerb appeal, absolutely immaculate, close to good schools and a good area.
Had a lot of interest and only been on the market for a day so we acted quick, ended up paying full price for it and on closer reflection we have maybe overpaid for the house about 5% of its true value. Does this cause any problems when it comes to getting a mortgage?
Its not crazy overpriced, maybe 7.5k at most but no less.
And you've agreed to pay £157.5K but think it's really worth £150K?
OK.
So you haven't bought a house at all, you've out an offer in and had it accepted. In England, that's a different thing.
It's only priced to market value. If you had to pay full whack to get it as you would have been gazumped, then that's it's value.
Go to your bank for your mortgage in principle and get it confirmed that what you paid is market value. What's your obsession over a few thousand?
It's only priced to market value. If you had to pay full whack to get it as you would have been gazumped, then that's it's value.
Go to your bank for your mortgage in principle and get it confirmed that what you paid is market value. What's your obsession over a few thousand?
The Op is a fantasist.
But he is more than a little bit amusing. In another thread he wants advice as to why his house isn't selling. It's because its overpriced but according to him everyone is wrong and it's not. then someone realised he had in a previous thread agreed a sale with a buyer then welched on that's sale and demanded more.
By chance can you see a pattern forming here
Then in another thread he attempts to adopt a more human façade and goes all mumsnet by asking when you know its the right time to have children.
He is great VFM
But he is more than a little bit amusing. In another thread he wants advice as to why his house isn't selling. It's because its overpriced but according to him everyone is wrong and it's not. then someone realised he had in a previous thread agreed a sale with a buyer then welched on that's sale and demanded more.
By chance can you see a pattern forming here
Then in another thread he attempts to adopt a more human façade and goes all mumsnet by asking when you know its the right time to have children.
He is great VFM
techiedave said:
The Op is a fantasist.
But he is more than a little bit amusing. In another thread he wants advice as to why his house isn't selling. It's because its overpriced but according to him everyone is wrong and it's not. then someone realised he had in a previous thread agreed a sale with a buyer then welched on that's sale and demanded more.
By chance can you see a pattern forming here
Then in another thread he attempts to adopt a more human façade and goes all mumsnet by asking when you know its the right time to have children.
He is great VFM
PH needs more like him & Welshy.... utterly harmless yet quiet entertaining in many ways!But he is more than a little bit amusing. In another thread he wants advice as to why his house isn't selling. It's because its overpriced but according to him everyone is wrong and it's not. then someone realised he had in a previous thread agreed a sale with a buyer then welched on that's sale and demanded more.
By chance can you see a pattern forming here
Then in another thread he attempts to adopt a more human façade and goes all mumsnet by asking when you know its the right time to have children.
He is great VFM
In Amsterdam in recent years, the process of buying has been like this - which amazed me, having gone through it:
Visit the house/apartment, along with many others - often there is a queue and you filter through a few at a time - if you like it, you make an offer based upon the asking price.
The highest offer generally wins but it can be usurped by a lower offer if that offer is from a cash-buyer and the Owner wants the deal done quickly. The upshot in every case though is that the Owner gets more than their asking price! The rule of thumb was 10% more if you really wanted it.
This was/is due to a big demand in a city with few new builds. I believe the boom is slowing now but the process is still similar. To then get a mortgage, you hope the Bank's valuation agrees that the value is there for whatever percentage you need, or obviously, you need a larger deposit. Most of the people we saw looking were young families seeking to up-size for an additional room in the bracket we were looking at. We also only bought because it was literally no more expensive than renting and offered the potential of a decent return on investment when we no longer needed it. As it happens, it seems we have already made a very nice profit in less than 2 years, barring any crashes, which is unlikely given the demand is no less.
Therefore, buying for more than the asking price is not uncommon in some places.
Visit the house/apartment, along with many others - often there is a queue and you filter through a few at a time - if you like it, you make an offer based upon the asking price.
The highest offer generally wins but it can be usurped by a lower offer if that offer is from a cash-buyer and the Owner wants the deal done quickly. The upshot in every case though is that the Owner gets more than their asking price! The rule of thumb was 10% more if you really wanted it.
This was/is due to a big demand in a city with few new builds. I believe the boom is slowing now but the process is still similar. To then get a mortgage, you hope the Bank's valuation agrees that the value is there for whatever percentage you need, or obviously, you need a larger deposit. Most of the people we saw looking were young families seeking to up-size for an additional room in the bracket we were looking at. We also only bought because it was literally no more expensive than renting and offered the potential of a decent return on investment when we no longer needed it. As it happens, it seems we have already made a very nice profit in less than 2 years, barring any crashes, which is unlikely given the demand is no less.
Therefore, buying for more than the asking price is not uncommon in some places.
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