LATEST PROPERTY NEWS AND QUESTIONS 29-Apr-2024
BANKS & HOUSE REPOSSESSIONS: ROSCOMMON
29th April 2024
Purchasing a repossessed house at auction can offer an opportunity to secure a property at a potentially lower price, but it requires careful planning and strategic techniques. Here are some techniques for buying a repossessed house at auction for the lowest price:
Research and Preparation:
Conduct thorough research on the property you're interested in. Understand its condition, location, and market value. Attend any open houses or property previews provided by the auctioneer.
Set a maximum bid amount based on your budget and the property's value.
Understand Auction Procedures:
Familiarize yourself with the auction process and rules. Different auctions may have specific procedures, bidding increments, and terms. Be prepared to comply with the auctioneer's requirements.
Attend Auctions as an Observer:
Attend other property auctions as an observer before participating in one. This will help you understand the dynamics, bidding strategies, and pace of the auction.
Get Pre-Approved for Financing:
Obtain pre-approval for financing before attending the auction. Having pre-approved financing strengthens your position as a serious buyer.
Set a Clear Budget:
Establish a clear budget and stick to it. Determine the maximum amount you're willing to bid, including any potential repair or renovation costs.
Monitor Comparable Sales:
Research and monitor recent sales of comparable properties in the area. This information can help you gauge the property's market value and guide your bidding strategy.
Identify Motivated Sellers:
Some repossessed properties are sold by motivated sellers who want to dispose of the asset quickly. Identify such opportunities and focus on those properties during the auction.
Bidding Strategy:
Develop a bidding strategy based on your budget and market research. Decide whether you want to start with a low bid or enter the bidding later in the process.
Stay Disciplined:
Stick to your predetermined budget and avoid emotional bidding. It's easy to get caught up in the excitement of the auction, so maintaining discipline is crucial.
Bid Confidently:
Bid confidently and assertively. Present yourself as a serious bidder, which may discourage other participants.
Quick Decision-Making:
Auctions move quickly, so be prepared to make decisions on the spot. Having a clear understanding of your limits and strategy will help you act promptly.
Be Mindful of Auctioneer's Signals:
Pay attention to the auctioneer's signals. They may use body language or specific phrases to signal that bidding is slowing down. Use these cues strategically.
Attend Multiple Auctions:
Attend multiple auctions to increase your experience and understanding of the process. This exposure can enhance your confidence and ability to navigate auctions successfully.
Consider Off-Peak Times:
Some auctions may have fewer participants during off-peak times. Consider attending auctions during less popular hours, as this could result in less competition.
Negotiate After the Auction:
If the property doesn't meet its reserve price at auction, you may have an opportunity to negotiate with the seller afterward. Be prepared to engage in post-auction negotiations.
Professional Assistance:
Consider hiring a buyer's agent or auction specialist with experience in repossessed properties. They can provide guidance, strategy, and representation during the auction process.
Remember that successful bidding at an auction requires a combination of research, strategy, discipline, and quick decision-making. Be well-prepared, stay focused on your goals, and be ready to adapt your strategy based on the dynamics of the auction.
29th April 2024
OBTAINING A MORTGAGE: SOME COMMON QUESTIONS
Who Do I Borrow From?
When it comes to choosing a lender, you have several options. Different lenders offer various rates, promotions, and terms, so it's essential to compare them carefully. Consider factors like: Interest Rates: Look for competitive rates, and be aware of any promotional offers, such as cashback incentives. Some lenders offer overpayment options whilst on a fixed rate which can be of significant benefit if you are in a position to made additional repayments to your mortgage over time.
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Other related questions will include:
Have you ever had a court order/judgement registered against you?
Made an arrangement with creditors?
Fallen into arrears on payment?
Been refused finance?
Have you currently any legal action pending against you?
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Full Address of Property to be Mortgaged
Detached Semi-detached Bungalow Terraced House
Flat / Apartment
Number of Rooms Number of Bedrooms
Construction Type: Traditional Brick / Block Timber Frame Pre-cast Concrete
Area of Dwelling
Floor Area
Mortgage Required
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What happens once you have Approval in Principle?
Once you have your AIP in place, there are several more steps to take before you’ll be ready to move into your new home:
1. Search for a new home
2. Get insurance in place
3. Make an offer on a property
4. Get a letter of offer
5. Exchange contracts
6. Release your mortgage funds
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Why switch your mortgage?
If you’re on a fixed rate mortgage you’ll be moved to the lender’s standard variable rate when the term ends, which is more expensive.
The main reason for remortgaging is to get a better interest rate and save money.
Mortgage switching can help you:
Lower your monthly repayments
Save thousands of euro in interest
Reduce your mortgage term
How much could you save?
You could save thousands of euros over the duration of your loan if you switch to a cheaper mortgage.
You’ll have to pay legal and valuation fees, but choosing a cashback deal or similar could offset those costs.
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The quality of mortgage brokers can vary. Some are highly experienced and reputable, while others may lack expertise or be less ethical. Researching and choosing a reputable broker is crucial.
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Several Irish lenders offer cashback as an incentive to switch, which in many cases, could help cover legal costs and any extra fees.
An Early Repayment Charge (ERC) may be applied if you end your fixed-rate term early, so if you are still within your term check any early exit charges with your lender.
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Trends in global interest rates, especially in major economies, can influence the cost of borrowing for financial institutions worldwide. Changes in global interest rates may be reflected in domestic mortgage rates.
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IrishHouses: Mortgage Debt, Arrears and House Repossession
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