Process of Buying a House in Ireland
To simplify the entire process we have divided the steps to buying a house in Ireland into the following three categories:
- Before You Buy — Budgeting, finding a solicitor, getting a mortgage, finding a home, and completing a survey
- Buying Process — Making an offer, negotiating, signing contracts, and closing the sale
- After the Purchase — Registering your property deeds and moving in
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Steps to Follow Before You Buy a House in Ireland
There are a lot of factors to consider when buying a home. Below are some of the most important factors you should consider before buying:
1. Make a Budget
Before even looking to buy a home, you should determine how much you can afford. There are obvious monthly costs like a mortgage, management fees, utilities, etc. But you also need to save sufficient funds to cover some of the initial costs of buying a house in Ireland:
- The deposit — You will need to pay for at least 10% of the purchase price of your home, sometimes more.
- Insurance — There are two types of insurance you will most likely need: home insurance and mortgage protection insurance. In some cases, you may be able to place both under one single insurance policy.
- Stamp duty — This is a mandatory tax based on your purchase price. You will need to pay a 1% tax for the first €1,000,000 of the property, and 2% tax for any amount above this.
- Local property tax — All homeowners in Ireland need to pay this tax, regardless of whether you live in the residence or plan to rent it.
- Moving costs — Often overlooked, the cost of moving homes also needs to be taken into account. If this is your first home, you will also have costs associated with furnishing.
2. Choose a Solicitor
A good legal representative is necessary when buying a house in Ireland. You should take the time to shop around for a solicitor. Prices can vary greatly as some will have a fixed price and others will charge for every service imaginable.
According to the Competition and Consumer Protection Commission, you can estimate the legal fees for buying a house between €2,500 – €5,000. Read our full guide to finding a solicitor.
3. Get a Mortgage
Unless you have received a large inheritance, not many people can buy a house without getting a mortgage. A mortgage is essentially a bank loan in exchange for the value of the home you want to purchase. Be sure not to buy more than you can afford — use a mortgage calculator to determine what is a safe cushion for you.
4. Find a Home to Purchase
There are many websites to help you find the right property, or use the services of a real estate agent. Some buyers' agents charge a fixed rate ranging from €999 to €3,500. Other agencies charge a percentage of the final sale price, typically 1% to 2.5%.
5. Complete a Property Survey
Although not mandatory, a property survey is definitely worth including to have peace of mind. Property Health Check estimates a survey can cost close to €464 for a flat and €520 for a house evaluation.
Questions to Ask When Buying a House
There are various questions to ask when buying a house before you make an offer:
- Why is the house on the market? — This can shed some light on the owner's motivation to sell.
- How long have the owners lived here and what is the area like? — People who have lived at a property for a short period can indicate underlying problems like noisy neighbours or structural deficiencies.
- When are the owners planning to vacate? — This helps you gauge the seller's motivation level.
- How old is the property and has there been any renovation? — Knowing the property's age gives you an idea of upcoming maintenance needs. Ask for the BER rating certificate.
- How long has the home been on the market and what are the current offers? — A property on the market for a long time may give you room to negotiate a lower price.
- What is and is not included in the sale? — Know exactly what land, buildings and contents are included.
Steps to Follow When Making a Purchase Offer in Ireland
You have made your budget, chosen a solicitor, have your pre-approved mortgage in hand, and your agent has found you the perfect home. Here are some tips:
- Set a price cap — Before making an offer, set yourself a maximum price you are willing to pay and respect it. It is easy to get caught up in the excitement of negotiation.
- Research house prices — The Property Price Register is a great tool to see the history of the property and selling prices of similar properties in the area.
- Factor in renovation costs — Renovations are often used as a negotiation tool. The seller might agree to fix insulation, or the buyer gets a lower price and handles the work.
Tips to Follow When Closing a House Sale in Ireland
- Agree on a purchase price — Agree with the seller on a purchase price and its inclusions.
- Pay a booking deposit — If dealing with a real estate agent, a deposit is usually required.
- Sign the contract for sale — Have your solicitor review the contract before you sign. Once signed by both parties, you are legally bound.
- Requisition on titles — Both solicitors do their homework, ensuring nothing unusual exists like outstanding debts on the property.
- Payment — You receive the Deed of Conveyance. Show this to your financial institution so they can transfer the funds.
- Stamp duty and final closing date — Another date is set by both solicitors where you receive your keys. Do not forget the 1% stamp duty payment.
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Moving house? Our experts at Selectra can set up your energy, broadband, and utilities in one free call — saving you time and money.
Steps to Follow After a House Purchase
You finally have your keys in hand! Before you celebrate, there is one last step to complete: you must register your property deeds via the Property Registration Authority (PRA).
The legal fees for registering a house range according to the property value — expect anywhere from €400 to €800.
There are two separate systems to record the purchase:
- Land Registry (registration of title system)
- Registry of Deeds system
Ask your solicitor which system your case pertains to. And do not forget to change your address, set up your utilities, and explore any available government schemes you might qualify for.