Your property queries answered

Buying from a friend

My partner and I are considering buying a house from a friend. We are first-time buyers and are wondering what the potential pitfalls or issues would be? I realise that we would in essence cut out the selling agent and the associated fees, which should benefit both parties, but is there anything else we should be aware of?

The key to buying from a friend is to make sure that everyone is absolutely happy with the price. You don't want a situation in a couple of months time where you feel you paid too much or they feel you paid too little. Get the house professionally valued, it shouldn't cost you more than €200, and be sure that both of you are happy with the valuation. Ideally, both of you should share the cost of the valuation. While it is a friend, don't trust that the house is in as good condition as it appears and make sure you get a professional survey, to look for the usual things, damp and so on. Once that is done, be absolutely sure what you are buying - if you look at the brochure an estate agent produces you'll notice that it is quite careful about what is mentioned. If the seller is keeping the built-in book cases in the livingroom they won't be mentioned, the same goes for kitchen appliances, garden sheds, and so on. You should go through the house room-by-room with your friend and write down exactly what is included in the sale. That way you won't have a seething row with your friend in two months time over the chrome toilet roll holder that you assumed was to be left in the bathroom.

Sell my house quickly

I will be moving abroad by September and want to sell my house quickly. Two agents have advised me that auction is the best route to take. I don't approve of the auction system, as it seems to lack transparency and therefore be unfair to buyers. In the past year two houses on my road were sold at auction for high prices so my house is auctionable. Both agents have suggested that my house could make in the region of €750,000, maybe €800,000 "on a good day" and suggest guiding around €725,000. I won't sell it for less than €760,000 and feel it would be fair to advertise this as the reserve and not have a guide. Can I do that?

I don't see why not. As has been said before in this column the "guide" system in the present bullish market is not helpful to prospective buyers, as it is so often very wide of the mark. Your choice of stating the reserve instead of the guide is not a bad idea, as it does add a degree of transparency to the process. However, where you could come a cropper is with the confusion about auctioneering terminology. This column regularly gets letters from readers who are confused by the terms "reserve" and "guide". It is just possible that buyers will see a price in the ad, assume it's the guide, add at least 20 per cent to it as seasoned auction-goers do, and be put off. If you do want to put the reserve in, make sure that the agent stresses what it is to prospective buyers. However, as you know when it comes to an auction situation, it's not you or the estate agent who decide the ultimate price, it's the two or more bidders in the room on auction day.

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Unfortunately, it is not possible to respond to all questions received. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.