This guides you through the all the legal stages. This can be a stressful but exciting process for you. We are there to help you.
- Obtain loan approval
- Instruct Solicitors
- View lots of houses
- Read reports in the media on the market
- Narrow down your favourite houses
- Select final choice
- Place a bid on your chosen house
- Be ready to change your bid if you are out bid and you want to bid higher
- Complete the bidding process
- Receive acceptance of your bid
- Pay booking deposit
- Inform your bank that bid is accepted
- Inform your Solicitors that you have paid booking deposit
- Wait for word from your solicitor or agent that contracts have issued (Purchase legal steps).
- This is vital to the whole process going smoothly and as per your expectations. Plannng means looking at everything that will be impacted - your family, extended family, work, schools, shops, sporting committments, commute times, leisure pursuits, health issues, holidays booked. The list is endless but you should consider all the big headings.
- This sets the paramaters of what sort of home and where you can afford to buy. Working out the cost of the purchase is relatively straightforward, its the extras and the amount of loan you will qualify for that are unknowns. If you already own a home this will come into the budget as the quity from it will be a part of the budget for the purchase. We have been in an era of historic record low interest rates- this will not last forever and when the uptick comes this will have a big impact on mortgage repayments.
Obtain loan approval;
- This requires you to apply to your bank for approval. This process may take weeks. The bank will expect you to have worked out your budget and researched the market. The bank has maximum sums it may lent depending on your salary/savings/job prospects/ type of home.
Instruct your solicitors;
- Its a good idea to instuct your solicitors at the outset of the purchase. Your solicitor is there to guide you and advise if any issues arise. You may not need any legal advise until you have secured your new house-but if you do its best to have them available and aware of your circumstances.
View lots of houses;
- The best way to learn about the market is to view lots of properties in your price range and in the area you wish to buy. You will quickly become aware of where the market is going. You will see some houses that will not appeal to you but every time you view, you will learn. Estate agents are very experienced and will share their knowledge willingly if asked.
Watch media reports;
- Property is always a hot news story. Any significant shift in the property market will be widely reported. Sometimes the news will be stale but you should know from first hand experience what is happening. The importance of media reports is that its out there and influences what everyone else is thinking.
Narrow your search;
- As soon as you get up to speed and know what you are looking for start to be very focussed. Do not waste your time on properties that do not meet your requirements. Up the effort on the area and property type that suits your needs and budget. This may mean you wait till the right one comes along but this is a big purchase and you want to do the very best you can.
Select final choice;
- In the end you could spend the rest of your life looking at homes. That is not the object of the exercise. You are there to buy the best and most suited one for your needs. Having spent many hours researching and viewing you have to make your mind up. You should have a number in mind. Narrow the list to a small number. Don't make this decision on the spur of the moment. Sleep on it. Give yourself every chance to make the right decision, don't decide late at night, or if there is other issues on your mind. Once you have decided go for it.
Place your bid;
Contact the agent and tell them you are putting in a bid. The agent will indicate the minimum bid that will be considered. You should heed that but it is your decision. The agent will relay that bid to the seller.
Upping your bid and the bidding proces;
- If there are a number of others interested they will then bid too. You are now in a bidding circle and this may take days or weeks to shake out the weaker bidders till there are only one or two left. At this stage the agent makes a call on the process. Either each party is asked to make their top offer in a sealed envelope and the top bid wins, or its a private auction between the top bidders. The highest bid is not automatically accepted. When the seller decides to accept a particular bid everyone is informed.
Paying your booking deposit;
- As soon as the seller accepts a particular bid the agent then seeks the successful bidder to pay a booking deposit of between €5,000.00 - €10,000.00 depending on the price of the house. You should not delay making this payment. You should have this money ready to pay within a day or so of your bid being accepted.
Inform your bank;
- Tell your bank your bid is accepted immediately. Processing the formal loan approval requires some time. Do not waste any time at the outset. You will have lots to do. Make sure that you get the exact address of the property at the outset as the bank will process your loan approval using this information. If it is wrong it will mean a loan approval will have to be amended and that could take up to 10 days further down the line.
Instruct your solicitor;
- Your solicitor becomes very central in the purchase process from this point. It is key that they are ready to go with your contracts as soon as they are issued. Your purchase file should be opened in your solicitors office with correct address details on file and core information set up.
Sales advice sheet;
- As soon as your booking deposit is cleared in the agents bank account they will issues the sales advice sheet to the buyer,seller and their solicitors. This sales advice sheet will state the core terms of the deal, price, parties, property, closing date, contents included, special conditions, amount of booking deposits and solcitors details. Be aware the sales advice does not mean you have a binding contract. There are a few more steps till the house is secured for you.