Buying Property at the original price

Residencies & citizenships Portugal Golden Visa 🇵🇹
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Hi
Can anyone share info, on how to make sure that the property bought is at the right price, as the agents will favour the seller , and they will overcharge the foreigners

If anyone have bought , plz share their experiences

Adam

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Hey Adam,

I just bought a beachfront property here in Albufeira, with the intent to apply for the GV at the 280k level. I paid 10k less than the asking price for the apartment.

Some inputs:

  • Yes, at the end of the day, the agent’s incentive is more aligned with the seller’s. I tried to get an agent to be my buyer’s agent (i.e. she represent my interest for a fee) but was told it doesn’t work that way.

  • That said, the considerations are the same as for buying property elsewhere. Location, comparables, size, view, swimming pool, condition etc. determine the price. Just looking at listings long enough would give you some sense for fair value, but I also found wild variations in comparable properties.

  • I also found myself in a situation where I found some good deals in the 200k range but I necessarily had to pay more for a unit that cost 280+k to meet GV requirements (and I didn’t want to pay for 2x200k units). So the investment amount and 30 year requirement significantly reduced my options.

  • My rule of thumb - Start with an offer that’s 20% lower than list price and try to settle at a 10-15% discount off list. That’s unless the property is extremely hot and competitive.

  • In my experience property hunting in Albufeira, I saw some good properties but (unlike what the agents claim), nothing is flying off the market very quickly. Don’t hesitate to make an opening bid and hold in for a week or more and see if the owner will meet you there. The more you’re in a hurry (as I was), the more likely you get a great deal. I’m fairly sure that had I waited it out, I could’ve knocked off 5-10k more off the price.

Feel free to write to me if you have questions.

Cheers,
Mukund
(Excuse the long message)

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Correction - the more you’re in a hurry, the more likely you WONT get a great deal.

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Hi there Adam,

Full disclosure, I represent a fund called Pela Terra Farmland.

I worked in property for many years and have a good network in the Lisbon property scene, so perhaps I can help.

I would invest in a few months subscription to casafari - a data aggregating platform. The fact is that because so many properties are sold off the book soon Portugal, and agencies often fill in data inaccurately, data aggregation can only ever be so accurate. But, this is the best tool available.

It can be a bit confusing as properties being sold through GV channels are often priced significantly higher than neighbouring properties, so that will explain some of the discrepancies you see.

I hope that’s helpful!

Alex.

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