The bottoming out of the market has been heralded in recent weeks and falling interest rates mean borrowing has never been cheaper. So is now the time to get off the fence and buy? CLIODHNA O'DONOGHUE finds out

RIGHT NOW there are hundreds of heavily discounted properties out there and never before has price been so negotiable.

First-time buyers are in the best position of all because they have no requirement to sell before buying and, assuming employment, they can obtain financing more easily than many.

This sector of the market was crippled for years by competition from investors who pushed up prices but first-timers are now in an enviable position of power.

They are better educated about the market and have the power to demand price reductions. In the new homes market, they are in a position to negotiate with the developer both on price and on extras, such as fit-out and furniture. They can choose to buy outright, or rent and then buy, under finance schemes being operated in an increasing number of developments.

Just how long this buyers’ market will continue is unclear. However, in the meantime determined negotiators can secure the best value before competition re-enters the market.

Many believe that now is the time to buy, not in 12 months time when the “bargains”, or “gems” have been acquired by faster moving buyers. Others will argue that prices are likely to drop more before stabilising so why pay more now?

But some market observers believe that bargains will be targeted and acquired before the market recovers. The best of the bunch will be snapped up. This does not mean the more tardy buyers will be left with only north-facing gardens or ground floor apartments. But it does indicate that the early bird buyer with their homework done will indeed get the best worms to choose from.

Astute buyers today can also buy without the severity of compromise previously required in terms of location, transport nodes or shops. And it is not all about new homes where developers are easily convinced to drop prices or give an incentive to buyers. For some, all of a sudden living closer to the city becomes an option again because of deep price cuts. Alternatively, a home within budget along the Dart or Luas lines could emerge or an affordable cottage in the Wicklow hills.

There are many well-located vendors out there who must sell for any variety of reasons and cannot afford the luxury of their home remaining on the market. Consequently, prices are being slashed to the bone so that, unexpectedly, an aspiration home can become a reality for discerning buyers.

An increasing number of buyers are now seeking out such opportunities and keep a sharp eye for executor disposals and job relocation sales. They are well prepared for the market and know their business in terms of price per square foot and comparable sale tags, if not prices. They plague agents, spend hours on property websites and scout around on their own, often with property supplements underarm.

They are prepared and eager to do business if the price is right. And they are not ashamed of negotiating; the worse that can happen is that someone says no. Increasingly, buyers believe that prices are set by agents who fully expect haggling and leave a margin for that negotiation. But it is only detailed market knowledge that allows a buyer to negotiate with confidence.

The trick is to get to know your market, rationalise your own requirements and organise finance. The first step is to establish what you can afford because price ultimately dictates the size, shape, condition and location of your home.

Location is the priority so identify the areas suitable in terms of services, transport, schools, shops and commuting times. The structure itself and the aspect of the garden are also paramount so employ the services of a surveyor. Look for later expansion possibilities, such as attic conversions, the creation of a basement or extension to match growing needs.

When it comes to taking on a mortgage, the old rule of thumb is that total outgoings on a property should not exceed one-quarter of total income each year. This measure has been blithely ignored in recent years but economic conditions are now such that financial prudence of this nature is well advised. Ask the bankers which of their products suits you best, depending on the length of mortgage and repayment type. Shop around to get the best rates without penalty clauses – for example, if you pay off your mortgage early.

Financial institutions have seen an increase in the number of first-time mortgages and at the moment are concentrating most of their marketing budgets on this sector. Ronan Sheridan of AIB’s press office confirms that first-time buyer mortgages at the bank have moved from 115 per 1,000 issued to 150 per 1000 issued within the last 12 months.

Study the finances and become au fait with extra costs, such as stamp duty which ranges from zero to 9 per cent depending on the price; solicitor fees which are generally around 1 per cent of the price and mortgage protection policies which also differ depending on the size of the mortgage up to 1 per cent of the value of the loan. But it is good advice to battle for the best possible rates.

Putting together the deposit is also a vital element of property buying. Lenders like to see a history of savings and many first-timers begin by salting away savings into an account, building up the savings to close to whatever the monthly repayment figure on a mortgage might be. This proves the customer’s repayment capability to the lender. Once upon a time buyers had to be saving for two years or more before a mortgage was given and, while this is not the case now, financial houses do look positively on savers.

Preparation is the key, as our case studies establish, and be prepared to bargain seriously. Some buyers haggle about monthly mortgage payments rather than selling price because they say that by doing so they set firm boundaries and force sellers to do all the price adjusting to get the payment down to the level they have set. Experienced sellers will try convincing you that you can afford to pay more but stick to your guns: “I really want to buy this property from you, but I can only afford X payment per month.”

If another bidder appears on the scene, establish if they are indeed buyers and not a ruse to push up prices. Then find out if they have to sell first before they buy because this could mean an unwelcome delay for the harried vendor. Revisit your financial calculations and other options, such as short term loans, to see if you can up the price, assuming another serious buyer.

Cash-rich buyers are king in this market and those with money and without being forced to sell are reaping the benefits in terms of property bargains. But as the market and economy recovers and grows, so too will competitiveness and more bidders. Real value is out there now, so grab it.