Buying a House in Ireland
Before buying a house, I wish I had known what the entire process looked like. The only people I could ask for first-hand experiences were my parents, Dave’s parents, and their friends, who had all bought 20 years previously. Most of what I found online was about buying in the US or UK. I had no idea what to expect. If you're thinking of buying a house in Ireland, here's a rough step-by-step guide on what to expect… And remember, the only thing more stressful than buying a house is trying to assemble flat-pack furniture, or get a tradesperson to reply to your calls!
(Since we bought the cottage I have discovered hundreds of Instagram accounts which I have linked below that spell out the process and highlight some of the highs and lows that can happen during this stressful period.)
1. Research and Preparation
- Determine Your Budget
Assess your financial situation, including savings, income, and expenses to establish a budget for buying a house.
Start 6 months to a year in advance. Budgeting and tracking spending habits are crucial. It helps you understand where your money goes, identify wasteful spending, and see the full picture of your financial position. - Mortgage Pre-Approval
Secure mortgage pre-approval from a bank or mortgage lender to understand how much you can borrow.
For us, we decided to work with a broker as we wanted to buy a derelict building that needed renovation work before it could be lived in. We ended up not getting mortgage preapproval as we had found the house we wanted to buy and our brokers advised us that we should just submit our case and the renovation work we wanted to carry out rather than applying for mortgage pre-approval. - Understand Additional Costs
Account for costs, such as stamp duty (1-2% of the purchase price), legal fees, property tax, and surveyor fees. One thing that surprised us mid-build was that we thought we were going to receive 100% of the renovation budget, but as with the cost of the property, it was only 90% of the renovation budget.
2. Finding a Property:
- Property Search
Use online property portals like Daft.ie and MyHome.ie, and consult local real estate agents to find suitable properties.
Dave got an email about The Cottage from MyHome.ie in July 2020 and we organised a viewing for that weekend. We had both set up alerts when properties went on sale in areas we were interested in and prices we could afford. We knew we wanted to either buy a house that was ready to live in, or one that was derelict or very dated so we could really put our stamp on it. - Property Viewings
Visit potential homes to inspect them in person. Make a Checklist: Note essential features and aspects to evaluate, such as the condition of the home; natural light; presence of a garden; house orientation; proximity to good schools; and availability of nearby cafes and gyms that fit your routine. Consider Your Lifestyle - think about how you live day-to-day and what you want your life to look like in this home. Explore the Area - walk around the neighbourhood to see if it feels right for you.
3. Making an Offer:
- Negotiate!
Make an offer based on your budget and the property’s market value. Be prepared to negotiate with the seller or their agent. Be realistic and only go over your budget if you can afford it!
When we placed our bid, the seller asked us to increase our offer and if we did they would accept it. The estate agents said the sellers were considering a number of offers so we agreed to increase our bid ever so slightly. - Offer Acceptance
Once your offer is accepted, you will receive a sales advice notice detailing the agreed price and terms.
4. Legal and Financial Process:
- Engage a Solicitor
Hire a solicitor specializing in property transactions to handle the legal aspects, including title checks and contract drafting. - Survey and Valuation
Arrange for a property survey to check for structural issues and a valuation to ensure the property’s worth matches the offer. - Mortgage Approval
Finalize your mortgage application with the lender, submitting the required documents and the property valuation report.
5. Contract and Completion:
- Contract Review
Your solicitor will review the contract and negotiate any terms with the seller’s solicitor. Ensure all conditions are met, including fixtures and fittings agreements (e.g. are the current owners leaving all the white good or taking them with them?) - Signing the Contract
Sign the contract and pay a deposit (usually 10% of the purchase price). The contract exchange legally binds both parties to the sale. - Final Inspection
Conduct a final inspection before the closing date to ensure the property’s condition has not changed since the offer.
6. Closing the Sale:
- Completion Day
On the agreed completion date, your solicitor will transfer the remaining funds to the seller’s solicitor. Once this transfer takes place, the sale is complete. - Receive Keys
Once the funds are transferred, you will receive the keys to your new home. For many of my friends, they were greeted by the estate agent or solicitor with a bottle of bubbly and a lot of good wishes… For us, we were texted to say the estate agent had another viewing so had left the keys under the flower pot. There is no official handing over of the keys so try to not have high expectations - you will only be disappointed! - Register Ownership
Your solicitor will register the property in your name with the Property Registration Authority.
7. Post-Purchase:
- Move-In
Plan your move-in logistics, including utility setup and any necessary renovations or repairs. If you need wifi to work from home, plan this into your move-in schedule. Some utilities that you might need to organise are phone, internet, TV, electricity, gas, rubbish disposal. While you don’t need to have these all set up on move-in day, it is good to start thinking about what providers you want to use. - Update Address
Notify relevant parties of your new address, including banks, insurance providers, and government agencies. You can begin to formalise this list as you begin your budget but I have found that I update as it happens as I didn’t know half the places my address was registered!
I hope that these steps help you navigate the process of buying a house in Ireland with greater confidence and clarity. Everyone has their own story though so what might happen for your friends or me, might not happen for you.