First time buyers general advice/queries..

Ninja_Go

1641 wrote: »

I thought the OP was looking to buy a second hand house, not new ?

Yes we won't be able to afford a new build anywhere near our areas of interest

CHealy

Ninja_Go wrote: »

Wow! That's scary stuff!

Whereabouts in the country are you? We started out in January on a similar budget to you and we signed contracts in the last few weeks, but I think we got lucky. We are in Cork and in the time we started bidding in late January houses went from going 30k over asking to 50k+ in a few months and its only rising. If we were to have to start again I dont think Id be able to afford anything in the city and would have to move way out, which I wasnt willing to do.

CPSW

CHealy wrote: »

Ninja_Go wrote: »

Wow! That's scary stuff!

Whereabouts in the country are you? We started out in January on a similar budget to you and we signed contracts in the last few weeks, but I think we got lucky. We are in Cork and in the time we started bidding in late January houses went from going 30k over asking to 50k+ in a few months and its only rising. If we were to have to start again I dont think Id be able to afford anything in the city and would have to move way out, which I wasnt willing to do.

If this question is to me, I am in Dublin, house is in the Dublin 7 area.  We went in low with our offer, with more parties making bids they jumped in over the asking price (probably thinking they could eliminate us from the process, not knowing its still within our budget).  Its gone up and up but the amounts of each increase  have slowed down, so still hopeful. 

First time bidding so all new to the experience, its been eye opening so far!

Ninja_Go

CHealy wrote: »

Whereabouts in the country are you? We started out in January on a similar budget to you and we signed contracts in the last few weeks, but I think we got lucky. We are in Cork and in the time we started bidding in late January houses went from going 30k over asking to 50k+ in a few months and its only rising. If we were to have to start again I dont think Id be able to afford anything in the city and would have to move way out, which I wasnt willing to do.

We're in Dublin. I work in Wicklow and my husband works in Parkwest and doesn't drive; we are looking in parts of Tallaght and Clondalkin, mostly at former council houses as these are priced within our budget owing to size and location. I'm from Tallaght so I have a fair idea of locations that we're ruling in and out, don't know clondalkin well at all and would prefer to be buying in Tallaght but houses are only up and they're gone again, and too early to check the register to see what they're going for.

CHealy

CPSW wrote: »

If this question is to me, I am in Dublin, house is in the Dublin 7 area.  We went in low with our offer, with more parties making bids they jumped in over the asking price (probably thinking they could eliminate us from the process, not knowing its still within our budget).  Its gone up and up but the amounts of each increase  have slowed down, so still hopeful. 

First time bidding so all new to the experience, its been eye opening so far!

It can be incredibly deflating and I say that as a newcomer aswell. Patience is key, dont jump into any panic bids and know when you are done. I think we bid on 10 houses and every single one was "the one" but once they went way over and we had to step back you shortly find yourself completely forgetting about it. A house is what you make of it after the buy.

Ninja_Go wrote: »

We're in Dublin. I work in Wicklow and my husband works in Parkwest and doesn't drive; we are looking in parts of Tallaght and Clondalkin, mostly at former council houses as these are priced within our budget owing to size and location. I'm from Tallaght so I have a fair idea of locations that we're ruling in and out, don't know clondalkin well at all and would prefer to be buying in Tallaght but houses are only up and they're gone again, and too early to check the register to see what they're going for.

You sound like you know exactly what you are after and you seem realistic as to what you can afford, thats one hurdle crossed already. It might take some time but something always pops up. As I said I am in a similar position to you budget wise and we have purchased an old council home that needs alot of work but its all part of the journey.

Ninja_Go

Further query - is it OK to get AIP from more than one lender? KBC seem confident they'll give us AIP and I'm also in touch with a broker. .if KBC give us AIP then should I notify the broker? Thanks. .

Samuel T. Cogley

Get AIP from as many banks as possible, some won't go through brokers. Brokers are more of a hinderer than a help in many situations - putting that aside get yourself the best deal. In regard to once you go sale-agreed keep looking! It's about 50/50 that the sale will go through at that point. The mistake people make is having to start from square on should something start to go wrong on the property they've set their minds on.

Ninja_Go

Samuel T. Cogley wrote: »

Get AIP from as many banks as possible, some won't go through brokers. Brokers are more of a hinderer than a help in many situations - putting that aside get yourself the best deal. In regard to once you go sale-agreed keep looking! It's about 50/50 that the sale will go through at that point. The mistake people make is having to start from square on should something start to go wrong on the property they've set their minds on.

Great advice, thanks. If we were to go Sale Agreed on a property, then make an offer on another and that too goes Sale Agreed, can we pull out of the first property? What's the key difference between Sale Agreed and Sold? I.e. what steps are involved? Money drawn down, paid over, contracts & keys exchanged I presume is Sold; what's involved in being Sale Agreed?
Thanks

awec

Pretty sure Sale Agreed just means your offer has been accepted, but nothing is binding until contracts are signed.

So while you are sale agreed the vendor can back out with no consequences, but so can you.

1641

awec wrote: »

Pretty sure Sale Agreed just means your offer has been accepted, but nothing is binding until contracts are signed.

So while you are sale agreed the vendor can back out with no consequences, but so can you.[/QUO

Correct. "Sale Agreed" is non-binding - it involves paying a booking deposit to the EA but this is fully refundable if you pull out (or the vendor pulls out).

Next the Vendor's solicitor prepares a "contract for sale" and sends it to your solicitor. If your solicitor approves it you will be invited to sign it and pay a purchase deposit. Once you sign this you are committed to the purchase and can only withdraw as per explicit conditions in the contract - the vendor has to provide good title etc. (DO NOT sign the contract unless you are sure you are committed). After this the vendor is invited to sign - when they do they are committed.

The two solicitors then work on the legalities of it and agree a closing date. This is when you pay the rest of the price and the property is yours, ie, "Sold".

This is briefly the sequence (leaving mortgage issues aside) for a "Private Treaty" sale (when all runs smoothly!). It is very different for a "Public Auction".

You will need to organise a survey also.

Samuel T. Cogley

You don't want to go sale agreed on two properties, sale agreed is the period where you've an offer in which has been accepted and everyone is doing their due diligence. As such keep looking as you never know what that due diligence will turn up.

Ninja_Go

Samuel T. Cogley wrote: »

You don't want to go sale agreed on two properties, sale agreed is the period where you've an offer in which has been accepted and everyone is doing their due diligence. As such keep looking as you never know what that due diligence will turn up.

Sorry just to clarify - keep looking in case the first property falls through, but don't make an offer on a second property in case the first one goes ahead? What if we've gone sale agreed on one house and then a more desirable property comes our way, we go sale agreed on the second property..are we within our rights to pull out of the first property? If not, why not?

1641

Ninja_Go wrote: »

Sorry just to clarify - keep looking in case the first property falls through, but don't make an offer on a second property in case the first one goes ahead? What if we've gone sale agreed on one house and then a more desirable property comes our way, we go sale agreed on the second property..are we within our rights to pull out of the first property? If not, why not?

Yes you are legally entitled to pull out, even if sale agreed - up until you sign the contract for sale (with your solicitor).

If the same estate agent is involved in both transactions (or if its a more rural area where all EAs are likely to be aware of what is happening) there is a possibility that EA may advise the second vendor that you may be unreliable purchasers, more likely to change your minds. So,there is a risk.

Samuel T. Cogley

As above, you keep looking but pull out of the first, with cuase, before you go sale agreed on the second. A very good mover of things is saying 'look I'm pulling out completely' but you have to be serious.

My brother-in-law was strung along for what seemed like months before he said, 'look forget it'. The very next day there was an agreement to all of his terms whereas if they'd just negotiated from day one he would have met them in the middle. We were strung along for months and eventually only managed to negotiate a small reduction in price - what we didn't know if the vendor had lost the house they were purchasing due to the delay, it was only serendipity that they eventually got it back and our moved happened. We could have been six months later and starting again.

greensheep777

Question.
Let's say I get approved for a mortgage and have 6 months to house hunt.
At the end of the 6 months, I have not found a house.

Do I have to apply all over again and does it have any negative effect on my application or on my credit rating?

ILikeBoats

Yes you need to reapply. No negative effects. In theory, you should have more saved so could get approved for a higher amount on the second AIP

awec

ILikeBoats wrote: »

Yes you need to reapply. No negative effects. In theory, you should have more saved so could get approved for a higher amount on the second AIP

Unless the rules change in the mean time, in which case you'd have to meet the new rules which could mean you get less or you are no longer able to apply at all.

ILikeBoats

True!