First Time Buyer Advice

monkeytronics

Hello Everyone,

I am a first time buyer (24) looking to buy as a single applicant in the next 6 months. I have lined up 6 properties to view starting on Monday.

I have never done this before and I was looking for some advice:

Apart from my own tastes etc... what should I be looking for/avoid when viewing a property.

How should I behave during the viewings... i.e. not come across positive bout aspects of house, should I act disinterested etc...

I am just about to apply for a mortgage in principle so that I have money ready to go and maybe it will be a positive when negotiating price.

The max I can go to is €250,000 and most likely I will make an offer of 10% less than the value of I see anything I like.

If something does take my fancy how long should I leave it before making a bid, i.e. dont wanna seem too desperate or anything.. etc...

Any advice much appreciated.

Thanks

Monkeytronics

Lex_Diamonds

I'm not in the same boat as you (although I am working up to it) but I would probably be more aggressive with my offers; certainly chance your arm as there is alot more property coming onto the market at the present time, and for the forseeable future. Remember, you now have a much better hand than a few years ago.

astrofool

I wouldn't say to appear disinterested, they'll likely not follow up, which can be a good way of getting to know what bids have been put in, and what the level of interest is like, I usually add a property I viewed to my saved brochure list in my home to see if it has later sold, or price dropped.

You're going to see a lot more than 6 properties, so be prepared for that, look at properties 10%-25% over and 10-15% below your price to see what a house in your range should provide (beds/baths/orientation/location). Bring a camera, take photos, even if you don't like it, they let you compare houses and you get a lot of details you may have missed during the viewing. Bring a measuring tape for if you have any queries over room sizes.

Don't let yourself be put off by decor, this can be changed, always get a surveyor when you've gone sale agreed. Think how you're going to be in 5-15 years time in this place, the footprint (land its on), location, and orientation cannot be changed.

If buying a run down house, try and get a rough idea of what it costs to make it livable, and make sure you have that money in reserve.

If you like a place, go for a second viewing first, the agent will usually ring you at that stage and you can mull over making an offer. Don't be afraid to put in a bid, they can't make you pay more, no matter what, always put in a very low offer first, and then ask what the vendor would accept, then go lower than that again, if you're the only bidder, don't bid against yourself, and say that to the agent, however, be prepared to give a little ground (1-2k) to finally secure the place, if you really want it.

Don't plan your moving until contracts are signed, with 10% downpayment, this is not a booking deposit(which is a small amount so the property can go sale agreed) and a date has been set to pay the remainder, and even then, things may not go smoothly and dates can change.

Have a solicitor, surveyor, life insurance, and property insurance lined up and ready to go for when you need it.

sadie9

I would get your mortgage approval in principle as soon as you can, only then will you know how much you have to spend. Article in today's paper says lenders only giving FTB about 80% of house price now. Carefully watch the websites that on a weekly basis track price drops www.irishpropertywatch.com and http://www.treesdontgrowtothesky.com/ so you can monitor the current prices and drops of similar places to the ones you are interested in. You can also use this knowledge when dealing with estate agents. As soon as you make a low offer expect this to happen (1) offer will be refused, (2) another offer will already have been taken or will be put on the property within days of yours (often this is a phantom bidder designed to make you up your bid). You need to be prepared to stand your ground and let properties go if your bids are not accepted - another one will always come along, most likely a nicer one in a falling market.

jmcwobbles

I started a similar thread recently on the specifics of what to look out for when viewing - there's plenty of good advice, so check it out here: http://www.boards.ie/vbulletin/showthread.php?t=2055267487

johnnyskeleton

sadie9 wrote: »

Article in today's paper says lenders only giving FTB about 80% of house price now.

What paper is this? Do you have a link?

jmcwobbles

I saw that article too, it's in the Irish Times: http://www.ireland.com/newspaper/finance/2008/0411/1207859143423.html

Stephen

ffs

That's a hell of a lot of money to ask someone to come up with. I don't know how a single person like me will ever be able to get a mortgage if they now have to come up with 20% up front.

johnnyskeleton

Stephen wrote: »

ffs

That's a hell of a lot of money to ask someone to come up with. I don't know how a single person like me will ever be able to get a mortgage if they now have to come up with 20% up front.

40,000 deposit for the most basic one bed apartment in a suburb of dublin. Whereas before people weren't afraid of going into negative equity, they will now be quite scared of losing their 40k savings.

gamer

you can get a dublin city council mortgage on any property ,in theory if its in good nick,if your income is less than 38k approx,the unit would need to be less than 250k,you,d have 2 pay a bit more in legal fees maybe 2k,going thru them ,the conveyancing takes longer ,thru them i think,i dont know all the details.

heavyheart

Hi There

Worked in this industry for a long time and my suggestion would be to appear interested , ask what contents would be staying , is the garden north or south facing , is it alarmed , who are your neighbors , ask if they offer a mortgage service , if they do , think about using them as they will be more inclined to see you get the mortgage if it means you will be buying the house off them..again ask them can they recommend a solicitor , they might be able to get a discount for you with their preferred solicitor..ask have any surveys been taken out on the building so that you will be able to possibly get a copy and to certify that the building is structurally sound ...initially let the agent show you around once , then ask can you look around on your own so you dont feel like they are watching you and give you time to get your own thoughts on the place...
happy house hunting !

gamer

make sure central heatings working,test all water taps, taste the water.drive thru area friday,satrday night, see if theres louts,teens hanging around, look 4 litter outside,graffitti,is there keys 4 the internal doors,look 4 cracks in outside walls, look 4 cracked roof tiles, cracked tiles = possible water leaks into attic,if you r really serious,after making bid,ask can i go up inspect the attic,4 leaks, examine roof from inside attic,see if wood under gables is cracked or rotting.is there an alarm system, is there proper gates on drive, which can be locked at night, most cars are robbed after midnight in dublin.

monkeytronics

Hey,

thanks for all the replies, much appreciated. i am actually moving from Dublin to Wexford for work reasons, all houses i am looking at are in Wexford town.

My dad has been in the construction trade for 25 years (plumbing and heating mostly) so i'm dragging him with me for professional advice.

sadie9

Would you not rent for a year at least if you don't need to buy and then get something next Spring when there is better value to be had. I attach a discussion from www.irishpropertywatch.com http://irishpropertywatch.wordpress.com/2008/04/08/ipw-report-14-912-price-drops/#comment-1508

bleary

heavyheart wrote: »

ask if they offer a mortgage service , if they do , think about using them as they will be more inclined to see you get the mortgage if it means you will be buying the house off them..again ask them can they recommend a solicitor , they might be able to get a discount for you with their preferred solicitor.

Fair advice generally but I think using the estate agents mortgage broker and solicitor is a terrible idea, Even if it was a sellers market at the moment I would never recommend using an estate agents services for this.Their professional service is to sell a property for the most they can get in the quickest time.You want your broker and solicitor to be independent

arctictree

bleary wrote: »

Fair advice generally but I think using the estate agents mortgage broker and solicitor is a terrible idea, Even if it was a sellers market at the moment I would never recommend using an estate agents services for this.Their professional service is to sell a property for the most they can get in the quickest time.You want your broker and solicitor to be independent

I agree 100% - wasn't there a prime time special about this last year? Biggest problem is the fact that the EA now knows exactly how much you can afford. Leaves you in a very weak position when it comes down to the bargaining.

A

CALI

I am a FTB and have had issues with estate agents recently coming up with "phantom bids". How can I be sure that other bids are genuine?? One house I saw during it's first week on the market had an offer for the asking price already in....is that realistic? Is anyone genuinely going to offer the asking price?

Stephen

I think you'd just have to be prepared to play hardball with them and refuse to up your bid when they come out with the phantom bids. You'd have to be ready to lose the property though!