Should we buy an overpriced property?

Hello dear ones,

after a very long search (5 years), we were finally offered a house that meets all our requirements. Location, equipment, size, number of rooms - everything is exactly what we have been looking for for so long. Nothing really needs to be renovated in the house, a new heating system was installed just 2 years ago. The house is about 20 years old. What we don’t like is that the price is about 20% above the market value! And thus totally overpriced. On the other hand, it is a top-class area, no new development areas will be built in this area in the next 20 years, and there are many interested parties who might be willing to pay even more, so all price negotiations are pointless. A small consolation is that there is no real estate agent yet. We got good conditions from the bank, mixed interest rate bank + KfW is at 1.3%, and we still have a condominium that will be debt-free after 3 years. The monthly rate including interest is €1080 and is €180 above the current rent. But if the possible rent increase of 20% is taken into account, then I think it is comparable. After 20 years we will still have debts of €130k. But we will already be in our mid-50s then. Of course, it would be possible to pay off these debts from the sale of the apartment, but that is pure speculation since we don’t know what we would get for the apartment then. The current market value is €170k. However, the apartment can only be sold after 3 years due to speculation tax. Should we take the plunge or not? Or rather wait until a good offer comes along at some point? Thanks already for reading and I look forward to your opinions

Do you want to have it?
Can you afford it?

If yes, what is there left to consider?

What we don't like is that the price is about 20% above the market value! And thus totally overpriced.

The market value is what is currently being paid ;) . What makes you think the price is too high?

No new development areas will be created in this area in the next 20 years and there are many interested parties who might be willing to pay even more, so all price negotiations are pointless.

So the price for the house might even be below market value? Many interested parties = the price fits and is (currently) justified. But I read from your post that a) it is your desired property and b) there are no alternatives for the foreseeable future. So either buy and be happy or leave it and regret it for a long time.

No wonder you have been searching for 5 years. You have to pay the price... Either pay a high price or keep searching for years and regret it

Or wait for the boom to collapse, but no one can predict that for you.

The market value is what is currently being paid ;) . What makes you believe that the price is too high?

well, the bank's valuation is just 20% lower

So is the price for the house perhaps even below the market value? Many interested parties = the price fits and is (currently) justified.
But I read from your post that a) it is your desired property and b) there are no alternatives in the foreseeable future. So either buy and be happy or leave it and be upset for a long time.

The market value is what is currently being paid ;) . What makes you believe that the price is too high?

So is the price for the house perhaps even below the market value? Many interested parties = the price fits and is (currently) justified.

But I read from your post that a) it is your desired property and b) there are no alternatives in the foreseeable future. So either buy and be happy or leave it and be upset for a long time.

well, the bank's property valuation is just 20% lower, and they determine it according to the current market value

A small consolation is that there is no broker yet.

That is not a "small consolation," but a significant saving. Everything I read from you tells me: Buy!!! You won’t find the perfect solution anyway; if the price is right, the problem is with the property elsewhere. In my view, a good house that is also nice may well cost a bit more. I fear you will regret it as soon as someone else has bought it.