What To Think About Before Making an Offer

What To Check Before Making an Offer on a House?

Before making an offer on a house, you'll need to assess your situation so you know exactly what you are looking for in terms of your budget and what the prices are like in the surrounding area.

  • Check Your Financial Position — If you're in the market for buying a house, chances are you've already created a budget accounting for all the costs you're likely to incur. Mortgage deposit, solicitor fees, valuation fees, stamp duty should all factor into your budget.
  • Research Local Prices — Like buying any other products, you want to know whether you're getting a good price for the area. Take your time to research the area that you're looking to buy in to see how much the properties are being valued at.
  • Freehold or Leasehold? — A big decision for buying is deciding between freehold and leasehold. Buying a freehold house is very different to buying a leasehold flat. Mortgages on leasehold tend to be much harder to get.
  • Keep Emotions Level — You want to give yourself as much room as possible to negotiate house price. Try to go into house viewings with a level head and with your budget always in mind.
  • Consider Getting a Survey Done — As well as the mandatory mortgage valuation, you should definitely consider budgeting for a professional surveyor to evaluate the house. A surveyor may be able to find problems that could give you a good way of negotiating down the price.
  • Get a Mortgage in Principle — Having a mortgage in principle is a document from your mortgage lender stating how much you can borrow from them. This is a great way to prove to sellers that you're serious about making an offer.
  • Use a Buying Agent — A buying agent can work with you to help you find the perfect home at the best price for you.

What To Look Out for When Making an Offer

  1. Organisation — Being organised and having all your documentation ready to show your buying capability will make you a reliable option for a seller. If you're planning a joint ownership arrangement, make sure you all have the correct papers ready.
  2. Consider the Chain — If you can avoid the chain, the better for your buying opportunity. If you aren't waiting for your property to be sold so you can move out, it proves that you are capable of completing the transaction much faster than other buyers.
  3. Confidence — Be confident in what you're prepared to offer. If you feel like the property is worth less than the asking price then you are well within your right to make an offer for less.

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How Much Should I Offer?

If you've finally found the property of your dreams and want to make an offer on it, there are some guidelines that you should follow when deciding exactly how much you want to make an offer on a house for.

Working Out How Much To Offer

Working out how much to offer on a house can be tricky, but remember that the seller is also concerned about the price too. In most bidding processes, part of the negotiation is bidding high and then negotiating down.

Should I Offer Less Than the Asking Price?

In principle, you should be trying to save as much money as possible when you make an offer on a house. If you offer less than the asking price, the worst that the seller will do is come back with a counteroffer. From a counteroffer, you can then negotiate.

A low bid has more chance of success if the property's been on the market for a long time or the market isn't that competitive. Pay attention to details that might indicate a quicker sale.

How To Negotiate House Price

After you've submitted a bid for a property, no matter how reasonable you think it is, you're likely to be hit back with a counteroffer. Remember, the seller is also trying to maximise how much they can get for the property.

What Types of Bids Are There?

  1. Open Bid — An open bid is where the estate agent can let you know about what other buyers have offered and what the seller would be willing to go down to. Open bids are much less common than sealed bids.
  2. Sealed Bid — A sealed bid is where the potential buyers submit their offers to the estate agent in an envelope. The seller will then decide on which bid to take based on the amounts offered.

What Bidding Tactics Can I Use?

Making an offer in sealed bidding:

  • Upper Side of Your Budget — Try and stick to the higher end of your budget while still being careful not to go over it.
  • Offer Non-Rounded Numbers — Instead of bidding a rounded figure like €250,000, bid with more random values such as €250,150 in order to have the best chance of outbidding your competitors.
  • Ask Your Estate Agent — You can still ask your estate agent to give you an idea as to how other people are bidding.

Making an offer in open bidding:

  • Start Low — Begin by offering around 10% lower than the asking price.
  • Know What Others Bid — You can find out what others bid for the property and outbid them. Be careful when getting into a bidding war.
  • Be Polite — Be polite and courteous in your house price negotiation. Any rude or unpleasant behaviour will more than likely destroy your chances.
What is gazumping? Gazumping is the practice of a last minute bidder outbidding the accepted offer on a property. Gazumping isn't illegal in Ireland, but it isn't nice either.

How To Make an Offer on a House

How To Put an Offer on a House

If you want to put an offer on a house, you should first contact your estate agent. Do not contact the seller directly.

When you contact the estate agent, remember to call and follow up with an email for written evidence. In the email, remember to put:

  1. Your name or names
  2. The offer you're making
  3. Your personal situation regarding moving dates and chain

After you've submitted your offer, you should wait for the estate agent to get back to you. If you haven't heard from them within three days, you should contact them and ask for an update.

What is a holding deposit? Occasionally, a seller might ask you to pay a holding deposit to back your offer. This is normally to show that you are willing and serious enough to front the money for the property. Holding deposits are usually refundable, but be careful and understand exactly what you're getting into before you put one down.

How To Get Your Offer Accepted

  1. Be Fast but Smart — Speed is important when it comes to the housing market, but remember to keep a cool head.
  2. Go for Second Viewing — It's usually recommended to go for a second viewing when you make an offer on a house. Making sure you have visited at least twice will show the seller that you are interested.
  3. Work with the Estate Agent — The estate agent will know a lot about the property market and you can use their knowledge to your advantage.

Need Help Setting Up Your New Home?

Moving house? Our experts at Selectra can set up your energy, broadband, and utilities in one free call — saving you time and money.

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After Making an Offer on a House

Is the Offer Legally Binding?

If you've made an offer on a house and it's been accepted, the offer isn't legally binding until the exchange of contracts at the end of the transaction which usually takes 4 to 12 weeks. You can even change or withdraw the offer if you've discovered something that wasn't disclosed to you previously.

Once the exchange of contracts has taken place, you'll then be obligated to pay the money that was agreed to.

What If My Offer Was Rejected?

If your offer was rejected, it's still not the end of the world. There are times where the chosen buyer might change their mind or are unable to prove that they can afford the property. You can also offer a last-minute bid for the property if it really is the home of your dreams.

Frequently Asked Questions About Making an Offer on a House

No, an offer is not legally binding until the exchange of contracts, which usually takes 4 to 12 weeks after the offer is accepted. You can change or withdraw your offer before the exchange, though you will not be refunded for solicitor and surveyor fees already paid.

In principle, you should try to save as much money as possible. A low bid has more chance of success if the property has been on the market for a long time or the market is not competitive. The worst outcome is the seller coming back with a counteroffer, from which you can negotiate.

Contact the estate agent (not the seller directly), call them and follow up with an email stating your name, the offer amount, and your personal situation regarding moving dates and chain status. For more on choosing a legal representative, see our solicitor guide.

Gazumping is the practice of a last-minute bidder outbidding the accepted offer on a property. It is not illegal in Ireland, but it can happen at any point before the exchange of contracts.

In open bidding, the estate agent can share what other buyers have offered. In sealed bidding, buyers submit their offers in envelopes and the seller chooses based on the amounts offered.

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