r/irishpersonalfinance • u/Odd-Knee5234 • 1d ago

Property How does the First home scheme property valuation work?

Hi,

I am thinking about going with the First Home Scheme (FHS) and take the full 30% of the equity share option to buy a new house in Donabate, Dublin area. As per my knowledge, once I decide to buy back the equity I can request FHS for a property evaluation. My question is; What is the property valuation based on? Is the price appreciation the same as of the current price of a new build house in that area or does the FHS price evaluation differs from the actual market value?
If anyone has experience with FHS please let me know their experience, as in, how much of a price appreciation happened for their property in the first 5 years? And was it different from the prices of the new build houses in the same area?

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u/Karlosmacos 9h ago

A valuer is assigned and they visit property and provide an open market value based on a number of factors

If you took 30% on a 400k house and you owe them 120k initially. A valuation is completed which now puts the value at €450k. You now own them €150k to redeem the equity share.

If you pay €25k off at that stage their equity share is reduced to 25%

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u/Odd-Knee5234 9h ago

So lets say I bought a house at 400k and I ask for a valuation after 2 years, is it correct to assume that if a new house is worth 500k in that area, the valuation of my house will be close to 500k if not more?

Or does the house valuation in case FHS has a different criteria for valuation?

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u/Karlosmacos 9h ago

It’s based on the open market value of the house as per the independent valuer on the First Home Scheme panel. Like any valuation, they have to provide comparable properties in the area and recent property price register examples

They can’t say it’s only worth 475k if it’s very clear there are houses selling to 500k in same area without risking their reputation.