If my family were to purchase a house privately, without using an estate agent, is there anything we should do to make sure both parties are happy with the purchase? For example, would it be beneficial to still seek a valuation from the buyer’s side? Is the overall process the same, using a solicitor from the get-go? We would love this purchase to be as straightforward as possible, without any drama or last-minute panics.
Obviously, I have a vested interest in answering this question; I’m an estate agent. I wonder are you interested in a property currently for sale privately or are you seeking to avoid estate agents, for whatever reason. If so, I fear you are significantly limiting your search criteria. It’s not uncommon to see houses being sold privately, although it is certainly more the exception than the rule. I have come across cases where people have both purchased or sold properties privately and while in some cases the deals go through satisfactorily, there have been cases of buyer’s or seller’s remorse.
The basis of property transaction in Ireland is caveat emptor: buyer beware. An agent offering a property for sale is acting for the seller, not the buyer, but they cannot deliberately mislead the buyer. Don’t forget also that today’s buyer is tomorrow’s seller. They must act honestly in the transaction. It may seem they are working against you but despite commentary to the contrary, agents don’t make the market. The biggest source of dissatisfaction among disappointed underbidders is in the bidding process.
Private treaty bidding can seem clandestine or covert, but it is fair. Usually, once you’ve provided proof of funds, you can make counter offers, and you get to decide your limit. And the agent must keep a written record of all offers which is available for inspection by the regulator in the event of a complaint. I have friends purchasing in Australia and in their case the amount of the latest offer is not disclosed, so they’re essentially participating in a blind tender at each offer.
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The fact is that agents are experienced dealmakers. Yes, we work on commissions. Yes, we get paid when deals go through. Yes, we have a vested interest in the selling price. Yes, the agent’s work doesn’t always look transparent. But, at the end of the day, agents deal with people. It’s our business to help everyone through the transaction. And there are several strands to pull together.
We prompt at the appropriate time, and we answer questions when asked. There are surveyors and valuers to be consulted, planning and building regulation queries to be answered while other professionals involved will need to be chased up. And frequently there are pressurised moments – from buyers and sellers – which need to be diffused. At the end of the day, we’re looking for a win-win scenario. Yes, in today’s market, prices are high, but I always like to see the buyers best matched with the properties they’re looking at.
You may not be aware, but in today’s market estate agents operate in a highly regulated environment.
Firstly, all agents are licensed by the Property Services Regularity Authority (PSRA).
The PSRA:
- Operates a comprehensive licensing system covering all property services providers
- Administers a system of investigation and adjudication of complaints against property services providers
- Promotes increased consumer protection and public awareness in the provision of property services
- Maintains and administers a compensation fund
- Publishes and maintains three public registers such as the Residential Property Price Register, the Commercial Lease Register and the Register of Licensed Property Services Providers
Like many agents, I am also a member of both the Society of Chartered Surveyors Ireland (SCSI) and the Royal Institution of Chartered Surveyors (RICS). The SCSI is Ireland’s leading body for property, land and construction professionals with more than 5,800 members. Among other things, SCSI and RICS ensure estate agents update their skills on a regular basis, are highly regulated and follow best-practice guidance in the services they offer clients.
To address your question, as a minimum, there are a number of “must-do” steps before the transaction completes. You should have an independent valuation carried out on the property. Your bank will arrange a valuation of the property, but that is for the bank, not you. You should arrange a survey of the property to be carried out by a chartered building surveyor who is a member member of the SCSI.
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You will have a solicitor acting on your behalf, and that solicitor will ensure the legal issues are in order. I do think you should engage an agent, as there will be local nuances you need to be aware of; some areas in the country will have particular issues affecting property, such as mica in the northwest, pyrite in the east, flooding issues in other areas. By engaging an agent, you will be able to avail of expert, impartial advice on a range of “watch list” issues you may not otherwise be aware of.
In short, by all means you can purchase privately and without an agent. But you need to ask, for one of if not the biggest financial transactions you will ever undertake, should you exclude a property because it is listed with an agent or exclude an agent because you are purchasing privately?
Ed Carey is a residential estate agent and a member of the Society of Chartered Surveyors Ireland
Do you have a query? Email propertyquestions@irishtimes.com
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