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Step 6 - Make an offer

What should you consider when making an offer and preparing to buy?

So, you've found a place that calls to you and it's time to make an offer. If it is accepted, the sale is agreed and you pay a booking deposit to the estate agent. This is 100% refundable to you up until the contracts have been signed by the buyer and the seller.  

Before you bid you should:

  • Know the local market – are properties selling quickly or slowly?
  • Talk to a variety of estate agents. Read property sections in Irish newspapers
  • Check recent sale prices for similar properties in the area using the Property Price Register
Top tip

Be mindful of how the bidding process may affect your behaviour and budget. When people are in a bidding process with other potential buyers, it can feel like a competition and create a drive to win. Keep in mind your mortgage approval value and all the additional costs you may have after you purchase.

 

Visit Negotiating price and online bidding for more information.

Navigating a chain of transactions

When selling one home to buy another, you're part of a chain of transactions. This means that you may depend on closing the sale on your current home before you can afford to buy the new one. Judge this carefully, be aware of what can go wrong and don't feel pressured into selling for less than you could, or paying more than you should.  

Chains can be unpredictable. Even if your side is ready, another buyer or seller in the chain could experience financing, survey or legal delays. Build some flexibility into your moving timeline, so unexpected setbacks don’t derail your plans.

Prepare a plan for temporary accommodation

Ideally, you will close both deals as close together as possible, but delays do happen. Consider what you would do if there is a longer gap between moving out and moving into your new home, like short term rental, staying with family or storage solutions for your belongings.

Budget for additional or overlapping costs

Close the deal on your current home as near as possible to securing your new one, with minimal overlap to avoid paying two mortgages at the same time. There are also other costs you may need to factor such as:

  • The cost of temporary accommodation
  • Additional moving or storage costs
  • Household costs such as utilities for both homes
Bridging finance

A bridging loan is a short‑term loan that gives you the funds to buy a new home before you have sold your current one. These loans provide temporary finance when the timing between selling and buying doesn’t line up. 

Lenders will allow you to borrow up to a maximum percentage of your current property value typically 60 to 70%. Loan terms for bridging loans are typically up to 12 months, so you will need to sell your existing home within this time frame and pay off the loan.

Sale agreed

Unfortunately, "sale agreed" is not a done deal as, until contracts are signed. Both parties can pull out without penalty. There are a few more things you need to square away before the home is yours. 

CCPC/ESRI research found significant gaps in people’s knowledge of their rights and responsibilities in the "chain of transactions". Did you know: 

  • It is illegal for a seller to accept multiple deposits for the same property. But agents can legally continue to market a property after it goes “sale agreed”.  
  • Overbidding, delays in conveyancing and new builds remaining unfinished are common causes of stress when buying or selling a home in Ireland. 
  • Most people do not know that a buyer can pull out of a sale without penalty before contracts are signed. Do you have a plan in case your buyer pulls out, or the seller of your next home gets a better offer? 

Once your offer has been accepted the next stage is moving from approval in principle to full mortgage approval. Before giving you your Letter of Offer, your lender will carry out a final set of checks to make sure everything is still in order. These usually include:

  • A property valuation: Your lender will ask you to arrange a valuation to confirm the property is worth the amount you’re borrowing. This typically costs between €150 and €250.
  • Final legal checks: Your solicitor will complete the last of the legal work to ensure the property can be legally transferred to you.
  • An updated review of your finances: Your lender will take another look at your bank accounts and financial documents to make sure nothing significant has changed since you first applied, for example, that there are no new loans, your employment is stable and your savings pattern has continued.

Structural survey

A structural survey of the property is recommended to make sure there are no serious structural issues, and to get a handle on how much repair and upgrade work is required. Any problems could significantly impact your finances after the sale. Keep in mind that a structural survey may not identify every issue, but it should highlight any major concerns.

If you’re buying a new build, it’s a good idea to arrange a snag list. This is a report that highlights any small issues or unfinished work in the home so the builder can fix them before you move in.

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