REA Halnon McKenna rules to buying a home
Rule 1 – Location, Price & Condition
There are only 3 things that are available with any purchase Location, Price & Condition, you can only ever buy two of them.
If its in the ideal location and condition its probably not in you price range.
If its in the right location and in your price range it probably needs a lot of work done to it and if its in your price range and in the right condition, its probably not where you want it to be.
Considering these options I always advise to pursue location and price as they are the only two things you can never change.
Rule 2 – The rule of 10
Every buyer should write down the top 10 most important things a home should have to them, whether it is number of bedrooms, garden, parking, orientation, proximity to schools etc. while not forgetting rule 1 (Location, Price and Condition).
Once you have your ten it makes viewing properties easier. The key is to find a property that has 7 out of 10, this will be as good as it gets for most buyers.
You can rule most properties out just by the Daft.ie advert. The ones that have hit these criteria should be viewed.
Rule 3 – Avoid buyer fatigue
Having set your top 10 requirements, A buyer shouldn’t view more then 6 properties with trying to buy at least one of them. If you have viewed more then 6 without placing an offer on one of them, you need to reassess the top 10 requirements.
Rule 4 – Don’t get involved in bidding wars.
Bidding wars are created by purchasers not by agents or vendors.
When contemplating your offer, you shouldn’t get emotionally over committed before you have heard the words “your offer has been accepted”, this way you will not get dragged into Private Treaty Auctions.
I always suggest ignoring the listing price, and you should ask yourself, “Having considered rules 1-3, what is this property worth to me?”.
This answer may be above the guide price or below it. I strongly recommend that whatever the answer to this question is, this should be the one and only offer you place on the property. If another party places a higher bid, you can move on to the next property in the knowledge that this one wasn’t meant to be for you.
Rule 5 – Manage the estate agent, Do’s & Don’ts
When viewing a property, one could think it important to stay reserved while dealing with an agent, thinking it important to keep your cards close to your chest, however there is a balance of showing keen interest and over sharing that needs to be met. Don’t be under any illusion, the agent works for the seller, but they need to know some key information from you if you want to buy the property.
Do’s
Tell them you are interested – make it clear.
Tell them if you are mortgage approved/ subject to sale/ cash buyer (mortgage approved is not a cash buyer)
Make your considered offer promptly after the viewing – The next day is quite normal.
If you are going to make multiple offers, be decisive – within 24 hours is reasonable.
Dont’s
Don’t ignore the agent during a viewing. They meet ten’s to hundreds of people everyday and its impossible to remember people that never spoke to them.
Don’t overshare your financial information. We don’t need to see your proof of funds at a viewing, nor is it wise to share the top end of your budget with anyone.
Don’t be too quick or too slow with an offer. Making an offer in the doorway show’s eagerness but does raise a concern on weather or not the offer was truly considered. Also don’t be too slow, if you take a week after the viewing to make an offer, the property could be sale agreed already, and worse still for the price you were going to offer.
If you are in a bidding process don’t take too long to consider an increase, 24 hours is more then enough time to decide if you wish to place a further offer.