If you’re a first-time buyer in Ireland wondering how to make the right offer on a house, you are not alone.
First-time buyer mortgage approvals reached record highs last year, with 30,508 FTBs given the go-ahead by the end of October. With so much competition, it’s no wonder that those chasing their dream home are questioning how to put their best foot forward when it comes time to take the plunge and make that all-important initial offer.
While reforms to the bidding process may be on the horizon, first-time buyers searching for their own homes in the here and now need to understand how to negotiate wisely and effectively. The good news is that with careful preparation and strategic decision-making, you can make the right offer and increase your chances of securing that perfect property.
Read on to learn more about navigating the process successfully.
Preparation is key
Before you even consider making an offer, it’s essential to prepare for the process by developing an understanding of the current state of the housing market in Ireland.
With demand often outstripping supply, properties can sell quickly, and bidding wars are common. Therefore, financial preparation is crucial. Start by determining your budget. This includes saving for a deposit and understanding the hidden costs associated with buying a house, such as stamp duty, legal fees and survey costs.
Engaging with a mortgage broker early in the process can also provide you with a clearer picture of your financial situation and the options available to you.
Get Approval in Principle (AIP)
Approval in Principle (AIP) is a preliminary loan approval from a lender that outlines how much you can borrow based on your financial information. Having AIP will give you a clear understanding of your budget, while also signalling to sellers that you are a serious and prepared buyer. This can give you a significant advantage in a bidding war, as sellers are more likely to favour buyers who have their finances in order.
Start by making a competitive offer
When it comes time to make an offer, being strategic is key. In a competitive market, the initial asking price is often just the starting point. If you want the property, you might need to offer more.
However, no matter how much you might love the house, it’s important not to get carried away. Know your budget limits and stick to them. A significantly higher offer can sometimes end a bidding war quickly, but only if it doesn’t push you beyond your financial comfort zone.
Be the odd one out
When making your final offer, consider using an odd-numbered bid, such as €302,500 instead of €300,000. This tactic can make your bid stand out from others and give the impression that you’ve stretched to your maximum budget, signalling your strong interest in the property.
Show flexibility with closing dates
Flexibility can be a valuable asset in negotiations. If you can accommodate the seller’s preferred timeline, whether that means a quick closing or giving them more time to move out, your offer might become more attractive, even if it’s not the highest bid.
Personalise your offer
Selling a home is often an emotional decision for the current owners, especially if they’ve lived there for many years. Writing a personal letter to the seller, expressing why you love the property and how you see your future in it, can help create a personal connection. This can sometimes tip the scales in your favour if the seller is choosing between multiple similar offers.
Negotiate wisely
If your offer is being seriously considered, this will usually kick-start the negotiation process. Understanding the seller’s motivations – whether they are looking for a quick sale, a hassle-free process, or the best price – can help you tailor your offer to meet their needs.
Effective negotiation isn’t just about the price; it’s about bringing an offer to the table that reflects the seller’s priorities.
Learn how to make the right offer on a house with professional advice
Navigating a bidding war can be stressful, particularly for first-time buyers. This is where the expertise of a financial advisor can be invaluable. These professionals provide strategic advice on making offers, managing your budget, and understanding the market. Their guidance can give you the confidence to make decisions that are both financially sound and strategically advantageous.
Contact Symmetry Financial Management to ensure you make the right offer on your dream home
Winning a bidding war as a first-time buyer in Ireland is challenging, but with the right preparation and strategies, it is achievable. The team at Symmetry Financial Management are best placed to advise on this very process.
We understand the complexities of the Irish property market and through our first-time buyer mortgage services, we will guide you through every step of the process. Whether it’s financial preparation, mortgage advice or bidding strategies, our expert team is dedicated to helping you secure your first home. With careful planning and the right support, you can make your winning bid and move forward confidently into homeownership.
Contact us today to start the journey towards securing your dream home.
