It is decided, you are going to buy in Portugal. The prudent thing to do would be to get help on the spot to find the ideal property. The language barrier, the administrative procedures, the distance, the knowledge of the terrain are all reasons to think carefully before committing to a real estate agency in Portugal. As expatriates, we have experienced this. Today, by helping many French people to move to Portugal to make a real estate transaction, we are in contact with many agencies. That is why we can offer you these 6 tips to help you make the best choice.
1- It is not easy to find goods on the Internet
Searching on the internet, what could be more logical? The offer is plethoric. There are thousands of houses and apartments at all prices. We did it. For hours and days. We dreamed, it is free and pleasant.
We have long noted the “beautiful” houses in our budget, made appointments with agencies or individuals, planned our trips to see them and … we were very often disappointed. The photos, the descriptions do not correspond, they are often even false, do not show the disadvantages, do not explain the general situation etc.
In fact the internet is a good way to feel the market, to find leads but nothing replaces a visit on the spot. From my experience, I would say that we find much more by chance, spontaneous local visits than by distance.
2- The agencies are not very rigorous
Real estate agencies in Portugal are not very competent. Of course, one should not generalize, there are some who are attentive, reactive and even passionate… but it is quite rare.
Even if you specify your request, your specifications, they will often take you to see properties that have NO relation to what you want to buy. You can ask for a house with a garden and a sea view. And they will take you to see a house with a mountain view and no garden just because they think it is a great deal!
We have driven miles into the mountains and immediately got into the car at the first sight of the property to be visited. And this happens to everyone, frequently. So what is discussed at a distance and in advance before your trip, is almost useless. They discuss with you to get you to come and see them, that’s all.
Then the agencies don’t have a very complete file on the properties to propose. Often there are no plans, no information about the neighbors, the building conditions around the property, any restrictions, etc. We visit with our hands in our pockets and without any file. Most of the time they know nothing about the property. So you have to visit carefully and take your time. Do not fall under the spell of the house without looking carefully. Beware of the “coups de coeur”!
3- Check that the real estate agent holds a professional card
The agency must be accredited in Portugal and must be registered in the INCI (Instituto dos Mercados Públicos, do Imobiliário e da Construção). It must also be associated with a real estate group (example: AMI or AMEDI). The association with a real estate group is a real indicator of professionalism here in Portugal.
You will sometimes meet agents who will not want to show their INCI accreditation under the pretext that a good business relationship should be based on mutual trust and that if you ask for their accreditation… you don’t trust them. Well, be careful: good accounts make good friends.
If you want to be serene, you can be accompanied by a lawyer, but it is really not mandatory. You can also be assisted by a solicitadore (lawyer) used to buying and selling real estate.
4- Beware of the amount of agency fees in Portugal
In Portugal, it is the seller of the property who pays the agency fees. The real estate agencies are mandated by the owners to find a buyer. The agency fees for the sale of a house in Portugal are generally between 4 and 10% of the value of the property.
Of course, as in France or Belgium, this rate can be negotiated and used as a “buffer” if the buyer negotiates the purchase price. Some agencies charge commissions of around… 30%. To be avoided, of course.
5- The real estate agency must pay attention to you
Your biggest difficulty when buying a property as a foreigner in Portugal will probably be the Portuguese language. It is a language that is less common than English or Spanish. Therefore, negotiating with a French-speaking real estate agent will be a real plus. Unless you go through a French-speaking lawyer, but this will cost an additional 1 to 3% of the sale price.
It is therefore very important to test the level of interest and attention that the agency pays to you. A quality agency will answer your calls as soon as possible, it will reply to your emails within 24 hours, and should be cordial and friendly with you.
6- Getting help from an expert can save you time and money
Going through an intermediary on the spot can make your life easier. You can entrust the search for your property to a local specialist who speaks the language and knows the habits and customs.
The search mandate allows you to entrust the purchase of a property to an agent who will find the rare pearl for you. It is a sort of “apartment hunter” (or house hunter) who will select the best offers for you. It is a very well-defined contract that guarantees the rights of the buyer.
The agent is generally paid on a commission basis and will save you money because, knowing the market and the prices, he will be able to negotiate on your behalf substantial price reductions on the apartment or house of your dreams.
