So you have found the right property and are thinking about making an offer, considering whether or not you should meet the full price, offer above asking price or go in with a lower offer? We have detailed below our advice for the best tactics to ensure, when you find your dream property, you are in the best possible position to get it!
In Portugal we will help you find the right property to Buy, as your Licensed Property Finder in the Algarve we work with Homeowners direct and with other Licensed Reputable Real Estate Agents to bring you a wider choice of Properties. If you find one you like, just simply send us the link and we will take care of everything for you from setting up the showing appointment, asking all the difficult questions, doing detailed neighbourhood tours with you, presenting Offers and communicating with you in English to complete the property purchase and even afterwards with our Property Management Service.
The majority of the time in Portugal the Buyer will haggle over the price they want to pay to purchase a property. How the Homeowner responds is completely their decision. As your Realtor/Estate Agent we do offer advice to make a successful deal happen. We find that rarely offering more than 5% off the asking price is accepted, but it can happen. How much a Homeowner is willing to negotiate is down to lots of different circumstances, financial, health, family sometimes there is no urgency or financial situation forcing a sale. We don’t disclose personal information about Homeowners that they do not want us to discuss.
If you are told there are other interested Buyers this is probably
because many properties for sale in Portugal are multiagency.
As your Realtor/Estate Agent we may not be involved in another Agent’s offer discussions from another Buyer with the Homeowner. The homeowner may have already accepted an Offer but the property remains on the market if no deposit has been received, as the Buyer is applying for a Mortgage or needs to sell their property first, without a signed Promissory Contract the Homeowner is free to continue selling their property.
As your Realtor/Estate Agent if we do know an Offer has been previously rejected we can’t disclose it if we’ve been asked not to but can encourage you to make a better offer if yours is not close. Sometimes Homeowners do not want us to disclose other offers, the circumstances or amounts.
It is important you only visit properties that you have the budget to buy
It is important you only visit properties that you have the budget to buy and that you do not assume that the Homeowner will decrease their property price to match what you can afford or how you value it! Some Homeowners will ask you to provide evidence that you have the funds to purchase their property before allowing showing to be scheduled. Not all Homeowners negotiate their asking price.
You must have full disclosure to your Estate Agent with your financial situation that you agree only to schedule visits to properties that you are willing and able to purchase. If you need to sell a property first, then you need to find a buyer. It is rare in Portugal to have a Chain, most properties are vacant, freehold and no chain. If you make an Offer on a property that is accepted because you make false claims that you are a cashbuyer ready to proceed, then it becomes clear that you cannot make the timeline promised as you have to sell a property first, release funds or apply for a mortgage, then the Homeowner may refuse to proceed with the Offer.
To help guide you to make the right decision on what offer to make depends on how much you want to purchase the property you have found. If you consider that you do not want to lose the property or waste anymore time looking, then you are likely to have your offer accepted by putting in a higher offer than the asking price (unless someone improves on your offer with a higher figure or better terms). Alternatively by putting in a lower offer, especially a very cheeky, sometimes insulting low offer, you risk losing the property if there is a better offer on the table. The Homeowner may also dismiss you as a serious Buyer thinking you either don’t have the funds or don’t value their property at the market price so are wasting their time. We have also known Homeowners to re-list their properties at a higher asking price because offers are coming in too low, their reasoning being that the next offer though may actually be more in the region they were thinking of accepting and meanwhile you can risk losing the property to another Buyer who has a better offer on the table.
The best tactic is to not just come in at the asking price
but come in with very attractive terms!
The best tactic is to not just come in at the asking pricebut come in with very attractive terms, such you are a cashbuyer, can put down a quick deposit and commit to a quick completion date. This can only really happen with a cashbuyer.
Mortgage Buyer
However if you are relying on a Mortgage being approved, there are steps you can take to have stronger negotiation powers when you’re searching for the right property. Before you visit properties, find out what documents you need to apply for a mortgage, research the best products and their terms, submit your Mortgage Application and get pre-approval for your loan amount before finding the right property. Are you looking for a 100% Mortgage or do you have a 20-30% deposit? Have you set aside your anticipated Buyer costs on top of the purchase price? To fully accept your Mortgage application for approval your Bank will carry out a Survey at your chosen property this is for lots of reasons including ascertaining its value and condition. So if you are applying for a Mortgage we recommend you set yourself up ahead of visiting properties, so when you find the right property you are ready to go. We have independent Mortgage Brokers and direct contacts of local Banks ready to give you Mortgage Quotes, Lawyers and just about everything and everyone you need - just ask!
We can help you find a property and be in the best position to buy it. Get in touch.
Email DiamondP@mail.telepac.pt
WhatsApp +351 919716846
Website www.DiamondPropertiesAlgarve.com
Pop in to see us at Rua Cardeal Neto 49, Boliqueime 8100-070, Loule, Algarve, Portugal
Thanks for reading our article today, we hope you find it helpful, let us know if you have any questions!
