LATEST PROPERTY NEWS AND QUESTIONS 15-May-2024
BANKS & HOUSE REPOSSESSIONS: TIPPERARY
15th May 2024
Negotiating the lowest price for a repossessed house requires a strategic and informed approach. Keep in mind that the lender or entity selling the repossessed property is often motivated to sell quickly. Here are some tips to help you negotiate the lowest price:
Thorough Market Research:
Research comparable properties in the area to understand the market value. This information will provide a basis for your negotiation and help you determine a reasonable offer.
Property Inspection:
Conduct a thorough inspection of the property to identify any issues or necessary repairs. Use the inspection findings as leverage during negotiations to justify a lower price.
Understand the Repossession Circumstances:
Investigate the circumstances leading to the repossession. If there are significant issues with the property or legal challenges, use this information to negotiate a lower price.
Pre-Approval for Financing:
Obtain pre-approval for financing before making an offer. A pre-approved buyer is seen as more serious, and this can strengthen your negotiation position.
Point Out Repairs and Renovations:
Highlight any needed repairs or renovations when making an offer. Emphasize the costs associated with bringing the property up to standard as a basis for negotiating a lower price.
Knowledge of Local Market Conditions:
Understand the current local real estate market conditions. If it's a buyer's market with ample inventory, you may have more negotiating power.
Negotiate Based on Time on Market:
If the property has been on the market for an extended period, use this as a negotiating point. The longer a property remains unsold, the more motivated the seller may be to negotiate.
Be Patient and Prepared to Walk Away:
Demonstrate patience during negotiations. Be prepared to walk away if the terms are not favorable. This can signal to the seller that you are serious about getting the best deal.
Use a Buyer's Agent:
Consider working with a buyer's agent who has experience with repossessed properties. They can provide valuable insights and negotiation strategies.
Research the Seller's Motivation:
If possible, try to understand the seller's motivation. Some lenders may be more motivated to sell quickly, especially if they have a large inventory of repossessed properties.
Lowball with Justification:
Present a low initial offer, but back it up with solid justification based on market conditions, property condition, or other relevant factors.
Offer Cash or Quick Closing:
If you have the financial means, consider making a cash offer or offering a quick closing. This can be attractive to a seller looking for a swift and uncomplicated transaction.
Use Contingencies Wisely:
Include contingencies in your offer, such as inspection contingencies, to provide flexibility for further negotiations based on the inspection findings.
Professional Representation:
Consider hiring a real estate attorney or professional negotiator to represent your interests during the negotiation process.
Stay Informed about the Property's History:
Research the property's history, including any previous listings, sales, or price reductions. This information can provide insights into the property's marketability.
Remember, successful negotiation involves finding a balance between getting the best deal and maintaining a positive relationship with the seller. Approach negotiations with professionalism and a clear understanding of your goals and limits.
15th May 2024
OBTAINING A MORTGAGE: SOME COMMON QUESTIONS
Finding yourself in arrears on your mortgage means the chance of losing probably the biggest investment that you will make in your life.
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Loan Repayments: If you have other loans, such as car loans or personal loans that are due to end soon, making regular payments on time reflects positively on your financial stability.
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The Central Bank of Ireland sets the official interest rates for the country. Changes in the policy rate, such as the key lending rate, can influence the cost of borrowing for financial institutions. Mortgage rates may be adjusted in response to changes in these official rates.
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Applying for a mortgage
What do you need to get a mortgage?
It depends on the mortgage provider’s lending criteria, but here’s the typical requirements:
A good credit history: This is vital - here’s how to check your credit record.
The minimum deposit: If you’re buying a property, you’ll usually need at least the minimum deposit.
Stable employment: A regular income is necessary, if you’re self employed, you’ll have to prove your income differently.
Affordable outgoings: If your current outgoings are high, this will reduce what you can afford to borrow.
Find out how to apply for a mortgage and maximise your chance of success.
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Has either applicant any other financial commitments not indicated above including overdraft, Life Assurance, Separated Person's Maintenance Payments etc?
Each applicant will have to declare if they have ever been declared bankrupt or insolvent, or are currently undergoing such proceedings.
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Some mortgage brokers have access to specialized loan programs or lenders that may cater to unique circumstances, such as firsttime homebuyers, selfemployed individuals, or those with lessthanperfect credit.
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How much you can borrow with a mortgage? breaks down the rules on mortgage lending in Ireland, but the amount you can borrow depends on several things, including your:
Income
Loan to value (LTV)
Other outgoings
Credit history
Age
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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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IrishHouses: Mortgage Debt, Arrears and House Repossession
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