Who here has overpaid for a ppor knowingly?

I reckon I underpaid on mine by around 50%. It took the vendors a few weeks to agree to sell to us... we did well. Perfect time in the market, with the Sydney market dying for 8 weeks at the end of 2015. Then it started booming again, at least where we are, anyway

 

Are you saying that at the time the owners could have achieved 50% more that what you paid? Fair enough that it's worth more now but at the time?

 

Nice play, market did start dying then revived and I sold.... damn it, still doubled my money cant complaint.

Well done.

 

I was gobsmacked to see this house for sale at the price I saw it at. Honestly I thought it was a mid 2's house. Market was dead December 2015, it was supposed to be auctioned. Perhaps in July to September 2015 it could have gotten a mid 2's price but the market briefly turned.

We went into and inspected a very ordinary battle axe 10-15 year old home for sale just in the next street asking 100k more. Boring as. But as I like open houses I was driving and decided to follow the signs to this one too. So we both saw the front of it and were blown away.... and it just got better as we got into the house, the back opens up to a large newer extension with gorgeous wooden beams and abundant verandah spaces. Its got the scarcity factor and ticks all the boxes. We just had to hope nobody would give a better offer!

 

Wife loved it... didn't get a choice in the matter haha paid at least 20k over.

I blame the horses!!

 

Not sure how I know if we overpaid.. Is this based on the bank valuation just before settlement?

Anyway I know we paid close to 150k more than what I would ideally pay for any house, regardless of location. This is a price of buying a ppro in Sydney (I grew up in Melbourne).

Having said that I don't believe I overpaid for the suburb we bought

 

Usually checking comparable sales and valuations should give you a good indication and a reference point to what it's worth, you might narrow the price point between say 10-50k max for example. If you paid more than the max amount you thought it's worth, then you overpaid.

 

But... what do you do with a unique home?

 

The same thing. I'm sure you can roughly work out what to much is.

 

Few homes are so unique you cannot appraise its approx market value. What in the purchasers eyes is a one time only never to be seen again house will draw much of its value from other properties based on number of rooms, location, land size, school zoning, car accomodation etc, then a variance for the unique elements. Generally you can get to within 10% without any drama.

 

We paid 20k over ask and about 100k less than it was "worth" although could only know after the fact looking at more sales data. Hard to price accurately when prices are going up fast every month, and I don't like in an identical home to the nearest compatibles.

 

I thought I had over paid with the recent Ppor purchase in Hamilton east in Newcastle, the last 3 sales have all been 100k to 250k more then what we paid. I'm Certain the agent we bought it off made a mistake by not auctioning it.

 

House diagonally opposite sold at auction on the weekend....1 week shy of 12 months from our $950K purchase. Similar condition, 16m2 more land. Winning bid was $1.205m.

No regrets!!