When it comes to selling your property in Portugal, before anything else, it is a good idea to sit down and clarify your motivations and draw up a basic timeframe for the selling process.
Why do you want to sell your property? Do you intend to simply find a larger property or are you planning on moving to a different location, or even releasing your assets in Portugal? You may think your reasons are obvious; however, it would benefit you to consider the implications of each option for your lifestyle, opportunities, and finances. Being clear about your reasons for selling will make it easier for us to determine the most suitable option for your specific situation.
Establishing your time frame for selling is one of the first things you should do. If you need to sell quickly, we can speed up the process by giving you a complete market analysis and a personalised action plan to achieve all your goals. If there is no pressure, you can sit down with one of our professional real estate experts to thoroughly review the current market conditions and find the most favourable time for you to sell.
When working with Private Luxury Collection, you can be assured that we have the best knowledge, expertise, and negotiating skills for you to arrive at the best market price and sales terms. We will keep you updated on what is happening in the market relating to the price, terms, and conditions of competing properties. With us you will know exactly how to price and when to sell your property.
When deciding to sell your property, you need to take into consideration your current financial situation and future possibilities. With the help of our experienced agents, you will be able to assess the impact of selling your home, estimate the potential proceeds and plan effective tax and estate planning strategies.
You may opt to sell your property independently and there are many reasons to do so. On the other hand, why is it a good idea to choose Private Luxury Collection to assist you in this important undertaking? With our expertise and experience, we will ensure that you maximise your opportunities in the current real estate market. Through our extensive contact networks that we have developed over the years with national and international organisations, as well as our current and past clients, we will employ the most effective marketing and advertising strategies for your property. We will also guide you through the complicated paperwork involved, from the initial agreement to the final deed. We will hold your hand every step of the way, offering you personalised care and attention.
The following are a couple of factors to keep in mind when looking for a listing agent:
1. Education: The most important factor in choosing a professional is their education within the real estate industry. All our agents have advanced training and ongoing education, allowing them to be among the top agents in Portugal.
2. Experience and Expertise: You need a full-time agent who is experienced in selling property in Portugal and understands the type of property you intend to sell. They should employ a diverse range of marketing and advertising strategies. How tech-savvy are they? What experience do they have of selling similar properties in the past?
3. Availability and Commitment: Your real estate agent should be capable of prompt and decisive action during the course of seeking your property. Do they make a point of keeping in constant touch with you? Can they be easily contacted in case of emergencies or for simple questions? Are they available for viewing when needed?
4. Rapport: Does your agent take the time to listen to your goals and clarify your needs? Can they understand your unique situation or be genuinely concerned about the outcome of the process for you? Your listing agent should be your guide and partner in this crucial decision so it is important to find some with whom you can build trust and a relationship.
What is your property worth?
Without a professional and experienced agent, most independent property sellers tend to overestimate the value of their property. You can avoid this pitfall by consulting with an experienced real estate listing agent who will give you a fair and honest market appraisal.
There is a great deal you can do increase the appeal of your property and create a lasting impact for potential buyers.
The following are factors you should keep in mind when listing your home for sale:
While it might be tempting to think that the higher the property is priced, the better the offer you will receive, please do not be fooled by this misconception. Price is not always the determining factor when accepting an offer. There are several important reasons as to why:
Know that you can trust our experienced agents to help you thoroughly evaluate every offer you receive without compromising your marketing position.
We have an ethical responsibility to impartially negotiate contractual terms and we take this very seriously. It is our job to find a win/win that is beneficial for all parties involved. It may be you that you deal with multiple offers before deciding on the one you that is most suitable for you - As your agent, we will guarantee a thorough and objective assessment of each offer to help assist you in making the right choice.
Once an agreement has been reached to the sales price and terms you will receive a formal written offer outlining all elements. At this stage is is customary for the buyers to make an earnest deposit in the sum of 5000€ which will be held in a lawyers client account.
Whilst this is not a legally binding contract at this stage, it shows a gesture of good faith and indicates the buyers are serious and intend to complete the purchase.
This allows time for all paperwork to be submitted to the buyers' lawyer, so that due diligence can take place ahead of signing a Promissory Contact (CPCV).
The lawyer representing the buyer has the job to examine all documentation relating to the property and to ensure there is a clear deed title to real estate. After researching the complete recorded history of your property they will certify that 1) your title is free and clear of encumbrances (eg. mortgages, leases, or restrictions, liens) by the date of closing; and 2) all new encumbrances are duly included in the title.
The promissory contract or Contracto de Promesa Compra e Venda (CPCV), is a legally binding agreement between the potential buyer and you as the property seller. This contract comes with financial penalties so you need to ensure you are in a position to proceed with the sale before signing this document. It is at this stage that any reservation deposit, along with the full deposit, will be paid to you. You can expect to receive 20–30% of the full final agreed price.
At this stage, all agreed-upon terms of the sale will be documented, along with an estimated closing date. Therefore, you need to stick to the schedule from this point onward to ensure you stay within the timeframe outlined.
Most buyers will have the property inspected by a licensed property surveyor within the timeframe that was agreed upon in the promissory contract to purchase. If the agreement is conditional upon financing, the property will need to be appraised by a licensed appraiser to determine the value for the lending institution via third party. This is done so that the lending institution can confirm that their investment in your property is accurate.
A contingency is a condition that must be met before a contract becomes legally binding. For instance, a buyer will usually include a contingency stating that their contract is binding only when there is a satisfactory home inspection report from a qualified surveyor.
Before completing his or her purchase of your property, the buyer goes over every aspect of the property, as provided for by purchase agreements and any applicable addenda. These include:
Depending on the outcome of these inspections, one of two things may happen:
How do you respond objectively and fairly to the buyer when a renegotiation is demanded while acting in your best interests? This is when a professional listing agent can make a real difference in the outcome of the transaction. Having dealt with various property sales in the past, we guarantee our expertise and total commitment to every client, no matter what their situation is.
While Portuguese banks do not offer pre-approval status for buyers looking to mortgage their purchase, they will generally provide an indication of what the buyer is in principle able to obtain. Therefore, we suggest that you accept buyers who have already begun the mortgage approval process and have the simulated loan value the loaner is prepared to offer.
Expect an appraiser from the lender’s company to review your property and verify that the sales price is appropriate.
If you have come this far, this means that it is almost time for congratulations, but not yet. Do not forget to tie up these loose ends:
More of a formality than anything else, the final inspection takes place the day before or the day of the closing. The buyer visits the property to verify that all is in working order, everything is the same as when the buyer last viewed the property, and that there are no extra items left behind.
In Portugal, it is often common for a transfer of services and utilities to take place as opposed to a cancellation. However, in preparation for the final deed signing,. It is recommended that you take a full metre reading on all services and relay this to the companies and the lawyers managing the purchase, along with the contract account numbers so that they may request the transfer of services into the buyers' name. At this point, you will receive your final bill from the suppliers.
We will provide a list of useful numbers for the termination or transfer of home services and utilities after the closing occurs.
We are ready to assist you should an unforeseen glitch pop up, even at this last stage. If something at the property breaks down or the buyers’ loan does not pull through on time, there is no need to worry. We have encountered these problems before so we know how to handle them efficiently and in a stress-free manner.
The final stage of closing is the signing of the public deed or Escritura. This must take place in front of a notary who will reconfirm all documents relating to the sale and any settlement statements relating to outstanding loans or charges against the property.
They will review all the details and financial transactions relating to the process and both parties will be required to sign
If you are unable to attend the scheduled deed in person, then arrangements can be made for a power of attorney to be granted for someone to represent you. Most commonly, this will be your own lawyer.
If you are receiving funds from the transactions, you can elect to either have the funds wired electronically to your account or have a check issued to you at the signing. Should you have a mortgage or loan attached to the property, then a representative from the financial institute will also be present to collect it.
As the seller, you should arrange to have all property keys and any other important information for the buyer with you at the closing so they can receive these items at this time.