Interested in becoming owner and finally acquire the property of your dreams. There are different solutions to find the right property. Discover the 4 types of property sale in Ireland.
Type 1: Private treaty (OTC sale)
A private treaty is opposed to public auctions. You can contact the seller or real estate agent of the seller to agree a purchase price.
Private treaty is the most common type of property sale in Ireland.
If you deal directly with the real estate agent, you are required to pay a deposit to the realtor. It can be either a percentage of the offer you made, or a sum under the criteria of the realtor and the seller to block the sale. Upon payment of the deposit, it is possible to remove the property from the market to finalise the paperwork. It is refundable until the signature of the sales contract, if you change your mind.
Type 2: Auctions
Real estate auctions are common. The date and time of a public sale are usually advertised in newspapers, on the internet, in the local real estate agency or by a posted sign on the property.
A reserve price or a reserve range is fixed for the sale of the property. This means that below this value, the property will be removed from the market and will remain unsold.
Before the big day of the sale, it is best that your solicitor verifies the sale contract of the property and all supporting documents to this contract. It is recommended checking this and to make more investigation on the property to ensure that the proposed sale is reliable. You should also ensure you have obtained an agreement in principle from your bank before you go to an auction.
In fact, the buyer must immediately pay a deposit and sign the sales contract.
A deposit has to be paid right after the auction.
You may sometimes see a price set as AMV. Agents are required to provide clients with a statement of the advised market value (AMV) of the residential/commercial property or agricultural land that they have been asked to value for the purpose of selling.
Type 3: Tenders
Sales under tenders are sort of silent auctions with a time limit. It is a marketing method that allows to compare supply and demand in real time. These sales can either be proposed by a State service via a tender or via the internet by real estate professionals.
Sales with tenders have a deadline. You know from the beginning when the sale will end.
The receipt of tenders (or offers) is generally over a short period. The dates are set from the beginning by the seller and the notary. Unlike auctions, the transaction is not concluded immediately. The seller accepts the offer which best fits its criteria by signing a sales agreement.
Type 4: Crowdfunding
This is a one of the new types of property sale in Ireland. The real estate sector leaves more room for this new method which is crowdfunding.
Specifically, a promoter or an individual presents its real estate project. But to realize it, he does not have sufficient funds. So he appeals to outside investors to finance the purchase.
These investors then allocate their capital to invest in one or several real estate projects. The crowdfunding platform then sends to the investors an investment contract. The contract includes the amount invested, and the remuneration rate. The investor can directly follow his investment on the platform.
Crowdfunding is very attractive but like all investments, it presents risks.
Beware, these investments are not without risk as you invest in unlisted private companies or projects. They are therefore subject to economic and commercial risks.
The main risk involved is on an extension of the investment period. In this case, the investor may receive or not an additional remuneration corresponding to the extension or in extreme cases, a more or less significant loss of capital.
Did you know there were so many types of property sale in Ireland? Leave us a comment!
Get some useful tips: “4 things to check when buying a property in Ireland”.
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