When it comes to selling your property in Portugal, before anything else, it is a good idea to sit down and clarify your motivates and draw up a basic timeframe for the selling process.
Decide to Sell
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, release 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.
When should I sell?
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 obtain 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.
What is the market like?
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.
How do I optimise my finances?
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.
Select an Agent and Price
Why should you choose our professionals?
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 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 through the many 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.
What to look for in an agent?
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. Availabilty 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 touch constantly with you? Can they be easily contacted in case of emergencies or for simple questions? Are they available for viewings 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 with.
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.
Prepare to sell
There is a great deal you can do increase the appeal of your property and to create a lasting impact for potential buyers.
What To Do To Prepare?
The following are factors you should keep in mind when listing your home for sale:
- Curb Appeal Keep your front entrance and driveway clean and tidy. Add a few creative touches to your garden such as colourful flowers or low maintenance landscaping. This will create an immediate impact on potential buyers when they arrive and to those who pass-by and notice a for sale sign.
- Property Repairs Simple upgrades such as a new coat of paint in the most used rooms, shining up door handles or making repairs to windows can instantly brighten and lighten up your property.
- Cleanliness and Staging It is important to keep your property uncluttered, smelling nice and well lit throughout. Pay close attention to the details: put alway cat litter and animal toys or place fresh flowers in the entrance. Pop some cookies or bread in the oven to cook. Have your carpets cleaned. Your agent will be happy to scan your property before it is listed for sale to help point out anything you can do to improve the property for staging.
- Disclosures and Inspections As experienced professionals we are familiar with the legal procedures involved in disclosing anything about the property that potential buyers need to be aware of. We can help you develop a disclosure statement that is beneficial for both you and the buyer, as well as making suggestions on home improvement measures before you place the property on the market.
- Showtime Presenting the property to potential buyers is a job that we will take care of for you. Buyers feel more confortable discussing the property with an agent withut having the owner there. Moreover, your agent will know what information will be most useful in representing your interests when speaking with prospective buyers.
Accepting an offer
The Price Is Not Always Right
Whilst 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:
- The initial offer is not usually the final agreed price
- There are other terms or conditions that may influence the final outcome of the price
Know that you can trust our experienced agents to help you throughly evaluate every offer you receive without compromising your marketing position.
Negotiating The Right Way
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.
Formal Offer and Reservation
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 and Deposit
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 agree price.
At this stage all agreed terms of the sale will be documented along with an estimated closing date. Therefore you need to stick to the schedule from this point onwards to ensure you keep to the timeframe outlined.
Inspection and Appraisal
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 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 addendums. These include:
- Obtaining financing and insurance;
- Reviewing all pertinent documents, such as preliminary title reports and disclosure documents; and
- Inspecting the property. The buyer has the right to determine the condition of your property by subjecting it to a wide range of inspections, such as roof, pest, chimney/fireplace, property boundary survey, well, septic, pool/spa, mold, lead based paint, HVAC, etc.
Depending on the outcome of these inspections, one of two things may happen:
- Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the closing; or
- The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).
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.
Loan Approval and Appraisal
Whilst Portuguese banks do not offer a 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 began 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 a congratulations, but not yet. Do not forget to tie up these loose ends:
Final Walk-Through Inspection
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.
Cancel Home Services and Utilities
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 be issued 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 be required to sign.
If you are unable to attend the scheduled deed in person, then arranges 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 he financial institute will also be present to collect this.
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.