The Guide: Steps to Buying a Home in Ireland

So, you're considering buying a home in Ireland? Below is a comprehensive yet concise guide we've put together on how to buy a home in Ireland. We wish we had such a guide at the beginning of our own journey, and now we're sharing it with ❤️

    A. Get money
  1. Set a Budget
    Carefully review your budget to see how much you can afford.
    • If you don't have enough money to buy a home, you might want to get a mortgage. To get a mortgage, you will need to have a saved deposit (see next item).
    Besides the price of the house, factor in other additional costs.
    For example:
    • Stamp duty: A property transfer tax, typically 1%-2% of the price of the house. For example, for a house costing €400,000, you will pay €4,000.
    • Solicitor's Legal Fees: Typically between €2,500 and €5,000
    • Building Structural Survey Costs: Between €200 and €500 for a second-hand property.
      warning We strongly recommend conducting a structural building survey if you're buying a second-hand house. Watch why?
    • Valuation
    • Insurance
    • Renovation, repairs.
    • Furniture
    • Moving costs.
  2. Save a Deposit
    For a mortgage, lenders require borrowers to have a certain portion of the property's value in cash:
    • First-time Buyer: You need to have at least 10% of the property's final cost. For example, if a seller asks €400,000 for a house, you need to have €40,000 of your own money.
    • Second-time Buyer: You need to save 20% or more of the property's value.
    A first-time buyer is defined as someone who has never had a mortgage, even abroad.
    There are also two state programs for first-time buyers that can help with the deposit:
    Each program allows you to obtain a significant portion of your deposit from the state under certain conditions. Don't confuse them; they may look similar, but they are different.
  3. Obtain Mortgage Approval in Principle (AIP)
    After applying for a mortgage, a lender will review your documents and approve you for up to a certain amount they are willing to lend. This is called "Approval in Principle" (AIP). Once you have it, you can start looking for a house, as agents will often ask for it. The highest price of a house you can afford is:

    Saved Deposit + Approved Lending Limit.

    How to apply for a mortgage?

    • Apply Yourself: Compare lenders on Bonkers.ie and contact them directly.
    • Use a Mortgage Broker: This service is usually free of charge. Brokers often know how to negotiate with lenders and since they earn commissions from lenders, they are motivated to secure you the best deal. Using a broker can be beneficial for navigating the mortgage process.
    Lenders will ask you to provide various documents to prove your credibility, such as payslips, bank statements, etc. A mortgage broker can also help you check and file these documents properly.

    4. B. Prepare for Formalities
  4. Get Mortgage Protection Insurance
    Once you have an AIP, you can start looking for a home. However, we also suggest applying for mortgage protection insurance at the same time to avoid delays with the deal.
    A lender is required by law to ensure you have this insurance to proceed with your mortgage application, and obtaining approval can take some time.
    While most lenders offer some options, you can shop around for a better price or policy.
  5. Find a Solicitor
    We also recommend starting your search for a solicitor at the same time, as once your offer is accepted by the seller, the seller's agent will ask for your solicitor's details.

    Who is a Solicitor?

    A solicitor is your second "best friend" in this entire process — after the mortgage broker (and your own agent, if you decide to hire one). A solicitor checks if the property is legally clear, coordinates with the seller's solicitor, and handles the "conveyancing" — the final legal work to transfer ownership of the property from the seller to you.

    Solicitor Fees

    We recommend doing thorough research before choosing a solicitor, as fees can vary considerably. These fees can be a percentage of the house price or a fixed fee, and may include additional expenses such as postage, registering deeds, etc.

    6. C. Find a Good Home
  6. Start Looking for a Property
    This is a big deal. We all know we can use Daft.ie and MyHome.ie to search for a property, but there are several things to take into account.

    The Final Price and the Bidding:

    • For second-hand properties, there's a bidding system. This means the final price of the house is determined during the competition with other bidders (potential buyers).
    • For new homes, the price is always final.

    warning Keep in mind that bidding is not regulated in Ireland. An agent might say, "There's another anonymous bidder offering X amount; what about you?" — and you can't be sure if this is true or if the agent is just playing games. So, bid carefully.
    warning For the reason above, if you're going to participate in bidding, avoid showing the approved amount of your AIP to the seller's agent. If you need to prove to an agent that you have an AIP, get a scan, redact the amount, and provide the redacted version — just to prove that you have confirmation from the lender.

    How Do You Determine if a Home is Worth the Asking Price?

    If you're bidding on a house, your only limit is how much money you have. But how can you determine whether the house is worth the asking price or if the agent is overpricing it?

    There is a website, www.propertypriceregister.ie, which is a single register of property transactions in Ireland. Solicitors are required by law to register all final deal prices there. To estimate the real value of a home, you can find recent sales of houses on the same street to roughly estimate the final price of your potential home.

    We have developed a free extension for Chrome that greatly simplifies this task. It embeds a block with all the necessary information on the Daft.ie and MyHome.ie real estate websites.

  7. Make an Offer on a Property
    Contact the estate agent and make an offer "Subject to Contract and Survey" on the property you'd like to purchase. Your solicitor will check that there are no legal issues, and you will need a surveyor to ensure that the building has no structural issues.
  8. Pay a Booking Deposit
    The booking deposit is refundable until you sign a contract and enter a legally binding agreement. It can be a specific amount or a small percentage of the offer you have made.

    1. The Estate Agent Prepares the Document of Sale Details:

    This document includes the price, conditions of the sale, the estimated closing date, and the names and addresses of all parties involved in the sale. The estate agent will send this document to your solicitor and the seller's solicitor.

    2. The Seller's Solicitor Prepares the Contract for Sale and a Copy of the Title Deeds of the Property:

    The seller's solicitor will then send these two documents to your solicitor.

  9. Notify the Lender and Arrange a Valuation
    To proceed with the mortgage, your lender will require a professional valuation of the home before formally agreeing to lend you the money to purchase it.
  10. Hire a Surveyor or Snagger
    What is a Structural Survey? The structural survey involves a thorough examination of the property, performed by a certified surveyor, licensed architect, or chartered engineer, initiated by the prospective home-buyer. A survey will identify any structural issues with the building.
    Surveyor vs. Snagger? Simply put, a Surveyor inspects second-hand homes, while a Snagger assesses newly built homes.
    Usually, a Snagger's assessment is more superficial, while a structural survey is intended to be more thorough regarding the building's structure and other aspects.
    We highly recommend getting a structural survey, especially if you're purchasing a second-hand, home to prevent regrets later on.
    Watch why?
    Additionally, your lender may require a surveyor's report before issuing a letter of offer, especially for older properties.
    11. D. Finish the Deal
  11. Arrange Home Insurance
    Ensure you arrange for home insurance. If you're purchasing an apartment, building insurance is typically included in your service charge. However, you may also want to consider contents insurance.
  12. The Lender Issues a "Letter of Offer"
    Once the lender approves the loan, they will send you and your solicitor a formal "Letter of Offer" outlining the details of the mortgage offered.
  13. Sale Agreed

    1. Accepting the Letter of Offer and Signing the Contract.

    Once you receive the Letter of Offer, you meet with your solicitor to accept the offer and sign the contracts. You will need to pay a deposit to your solicitor, usually up to 10% of the purchase price, less any booking deposit. Your solicitor will then return both signed copies of the contract to the seller's solicitor.
    At this point you have legally agreed to buy the property.

    2. The Seller Signs the Contract.

    The seller meets with their solicitor, signs the contract, and sends it back to your solicitor. At this point, the seller has legally committed to selling their property.

  14. Fund Transfer
    Your lender issues a mortgage cheque to your solicitor, who then transfers the funds to the seller through their solicitor.
    Additionally, your solicitor will arrange to pay a tax called "Stamp Duty" on your behalf, which is typically 1% of the purchase price. You will need to reimburse this amount to your solicitor.
  15. Closing Date
    You receive the keys to the property.

Other Sources to Consider

  • "How to buy a Home in Irealnd" by Ciarán Mulqueen: This book is highly recommended as it provides in-depth coverage of the steps outlined above, supplemented with case examples.
  • Guide on CCPC Website: The Competition and Consumer Protection Commission offers a comprehensive guide that provides detailed information on purchasing a home.