Typical % Reduction for a House Offer in Portugal? - Page 2 – Property & Real Estate – Expats Portugal Community Forum
Share:
Notifications
Clear all

Please feel free to view our Forum, but you must either LOGIN or REGISTER to join in the conversation.

spartan Fx

Typical % Reduction for a House Offer in Portugal?

Page 2 / 3

Posts: 2
Premium Member
Topic starter
(@nathaliegreg)
New Member
Joined: 7 months ago

Hi All,

Where we come from (Canada), when making an offer on a house, you can normally offer 10-15% less than the listing price. 

We are now looking at purchasing a house here in Portugal (Madeira), and we are curious as to what a typical % reduction would be? And I am guessing that % may be a bit higher in a COVID world?

We realize there are many factors involved...any advice or speculation is welcome.

Cheers,

Nathalie & Greg

31 Replies

Posts: 111
Premium Member
(@paulr)
Estimable Member
Joined: 5 months ago

I think prices and attitudes are changing under the current situation. I have never seen so many signs in house sales descriptions, with the word "Reduced".

 I have also been informed by pro estate agents 'Don't give the asking price".

The other alternative is to buy Bank Repossessions which sadly are increasing in numbers again due to the current situation.

Reply
13 Replies
Ask Our Expats Consultant
(@thomasribatejo)
Joined: 4 years ago

Member
Posts: 193

@paulr Bank repossessions are absolutely on the rise - given our interest in the field, our accountant was ruefully pointing out that the upcoming period would be good for cheap investment.

You're right, we've also noticed a larger number of reductions... and the fact that construction has been very active through the last year means more places coming onto the market (newbuild and refurb)

Reply
Premium Member
(@itexpert7)
Joined: 9 months ago

Estimable Member
Posts: 116

@paulr

Hi Paul, wow, sounds great, but in what area would it be that you have seen many house price reductions? As Portugal is quite a diverse country.

Kind Regards,
Michael.

Reply
Premium Member
(@paulr)
Joined: 5 months ago

Estimable Member
Posts: 111

@itexpert7 mainly in the Algarve

Reply
Premium Member
(@itexpert7)
Joined: 9 months ago

Estimable Member
Posts: 116

@paulr

Cool, I'm in the Algarve too, central, but I find that my budget of 1 million does not go far at all! 🙁
Anything near the sea, modern, legal and with good land for planting fruit trees etc, is very expensive, or very old and needs serious work.
In other countries like Spain with half that budget you can buy walking distance to the sea, here seems so difficult even 5 minutes driving to the sea. Mainly due to holiday homes and lack of permission to extend one's home.
I've looked as far as Alvor and Olhao where things are a bit better, made some offers but always rejected with no counter offer.
Any advice very welcomed.

Reply
 Anonymous
Joined: 52 years ago

Posts: 0

@itexpert7

Sending you private message. Just the house for you our street

Reply
Premium Member
(@paulr)
Joined: 5 months ago

Estimable Member
Posts: 111

@itexpert7 I always say if you want to see the sea that's a 100,000 euros extra.Green is a lot cheaper. In central Algarve just a 15 minute drive 500,000 to 600,000 euros will buy a 3/4 bedroomed villa with  a pool and between 1600 to 5000 sq meters of land. The more you go inland the more you get for your money. Pt is small. I don't mind a 15 minute drive to get to a beach if the villa has land and no noisy neighbours  It's what you decide is your priorities. 

Subject to PT opening their doors next week we have a list of 10 villas  we are looking at in a period of a month.I have the advantage, I do know the area very well and have had personal interior and exterior videos done by a friend.

Trust me on this  What you see on photographs and what see when you are actually there can be worlds apart.

Reply
Premium Member
(@itexpert7)
Joined: 9 months ago

Estimable Member
Posts: 116

@paulr
Yes indeed, I've been looking at houses up to 20 minutes drive from the sea. Still nothing fantastic for 1 million. There always are significant negatives. Yes I'm demanding, and I should be for such a huge amount!
In so called "expensive" UK I could buy a beach house, front line sea, in Hayling Island for a million euros (old of course!) 😀
As a northerner with dreams of a beach house, or at least of a modern large house with a lot of land 15 mins driving from the beach, I'm just disappointed.

> "Subject to PT opening their doors next week we have a list of 10 villas we are looking at in a period of a month."
Are you not in a Portugal?
I'm here 5 months, seeing multiple houses per week.
I found out they don't accept offers, or they don't even counter offer, I made a few.

Saw one yesterday, newish and nice, 5/6 bedrooms, 900k, 2200m2 land. North of Loule, 20 mins drive from good beaches. A bit far, but OK. But then in person, I see that the house is all driveways, tiny garden at the back where the pool is, no space for kids to play. And a single track access road of 1.5km with a wall on one side, so narrow than even 1 car seems scary to me, I can't imagine meeting someone else coming from the other side! No good internet either. Internet is as important as electricity these days!
The estate agents here are atrocious, hiding where the house is, so you have to waste your time to go there to find out that the location/etc is rubbish. Also no floor plans on the property listing, they can't be bothered, even though they charge 10 times more then UK agents who provide floor plans and Google streetview with every property!
Here is the Google maps for the house I saw yesterday, 900k, 20mins from sea, horrible access, no good internet, do you see why I'm disappointed? 😀

Reply
Premium Member
(@paulr)
Joined: 5 months ago

Estimable Member
Posts: 111

@itexpert7 You could consider the ends of the Algarve especially the east side . Properties definitely cheaper there, mind you, so are the people.It's simply hours spent on the computer looking but with your budget , it is there.

Reply
Premium Member
(@paulr)
Joined: 5 months ago

Estimable Member
Posts: 111
Community Member
(@arteastronomical)
Joined: 3 weeks ago

Active Member
Posts: 13

@itexpert7 

Why dont you choose a different area, Alentejo. There are great places there. Aljezur is 2 hours from Lisbon and 40 minutes from Faro, very affordable and in winter have the same weather than algarve and in summer is not so hot than algarve region, like less 2ºC (because the wind that come from Atlantic ocean, believe me this is the best region, because when is 40ºC that less 2ºC can make a good difference. 

And you going to pay half of the price in property taxes. I know property taxes in Portugal are the lowest in the first world countries. But even then Aljezur charge less than the all municipalities in the Algarve except one, in Algarve the one call Castro Marim).

Reply
Ask Our Expats Consultant
(@thomasribatejo)
Joined: 4 years ago

Member
Posts: 193

@arteastronomical without disagreeing with any of your other points... Aljezur is still within the Algarve, so it may not be as big a change of plans for people looking there, compared with the Alentejo (which starts just immediately North of Aljezur municipality).

Reply
Premium Member
(@itexpert7)
Joined: 9 months ago

Estimable Member
Posts: 116

@arteastronomical

Hi, thank you for the idea.
Funny enough I just drove through Alentejo today coming back from a weekend in Setubal, it seems so lovely green and empty.
I'm open to new areas, that's why I went to Setubal. House prices are indeed better there, although the traffic and horrible road quality are much worse.

Are there are any international English schools in Alentejo? Big shops like IKEA and Leroy?
No airports I guess. And any chance of hiring employees (web developers) to come and work in my office if I live there?
And lastly and perhaps most important, will I be able to sell my house if I need to leave, or it may take years as much less demand?
If most of these are yes, then I will plan a house hunting trip.

Or do you mean Aljezur which is in the Algarve, and 1 hr 12 min (109 km) from Faro and airport? (source Google maps)

> " I know property taxes in Portugal are the lowest in the first world countries."
No property taxes in Britain, unless you mean property buying fees (stamp duty), which are much much lower also.

Kind Regards,
Michael.

Reply
Ask Our Expats Consultant
(@thomasribatejo)
Joined: 4 years ago

Member
Posts: 193

@itexpert7

I think the nearest comparison to Portugal's IMI (Municipal tax on property) in UK terms is Council Tax. Both are based on where your property is and its assessed value; and both are levied by the local authority. UK Council Tax is substantially higher than IMI.

However, it's largely a red herring as, again like Council Tax, the variation by location within the country is generally not significant, the variation is marginal. So, the rates are what they are, and are unlikely to be relevant to your choice of location.

Reply

Posts: 68
Premium Member
(@jordan_zimmerman)
Trusted Member
Joined: 7 months ago

I wonder how the changes in the Golden Visa will change things. My anecdotal survey of the various real estate sites shows property prices coming down in the common areas.

Reply

Posts: 132
Community Member
(@jeanne)
Estimable Member
Joined: 8 months ago

A bit of a topic detour, but does anyone have experience using the idealista price comp tool?

Where I currently live in the usa, I can find this information in the publicly available property tax records, and it is of course very useful for evaluating how realistic an asking price is.  

Reply
1 Reply
Ask Our Expats Consultant
(@thomasribatejo)
Joined: 4 years ago

Member
Posts: 193

@jeanne I hadn't looked into this before - by the way, the Portugal link is below, as above is the one for Spain. It appears likely to be basic and automated, given the price - but it would be interesting to know where they draw their info. I am not aware of easily publicly accessible data on prices (you can get it, for sales [not rentals I think], but it's a bit of a hassle, compared to sites in the UK and US which show it easily) so perhaps this is more based on what they/their preferred agents already hold? My gut feeling is, it's unlikely to tell you more than a search of current listings would...

 
Reply

Posts: 105
VIP Member
(@portofakiwi)
Estimable Member
Joined: 4 years ago

My experience has been generally:
- Experiencing an attitude of 'Your a foreigner retiring here (I'm not) with lots of money, so I'd prefer to raise the asking price not lower it'..
- Involving close Portuguese friends as then everybody knows their interactions are 'monitored' and not strictly between them and a naive foreigner, plus I'll know more about local pricing so its more straight forward.
- House prices are often crazy, and bare no relation to each other, two similar places within a few km of each other will be €250k and the other €475k for no discernible reason. This is often inheritance related, its worth 250k, but its to be split 7 ways and everybody wants 100k from it etc etc
- I'd have no bones about suggesting interest at what you think it is actually worth and leaving that with them to digest, no need to make an offer, just register interest at a price that you'd happily pay.
- Agents are not your friends and are responsible for rising prices, treat them as such.
- One piece of rural land was €200k, but the building was illegal, so I said I'd be interested at €60k, they came back after 6 weeks with €120k, and so on. Depends on demand and the craziness of the original price.

If there is genuine high demand for a place, you need to use being a 'cash buyer' and so forth to move what you can. But every agent will say there is interest in a place etc

If not such great demand, then work the situation all you can (provide a good story why thats too much, show other places that sold for what your offering, price up all of the changes that need to happen before you could live there, ask about all of the paperwork with knowledge to see what they are hiding etc etc) and don't be afraid to be shameless, they probably weren't when inventing a price out of thin air with the agent - at least 50% of the price is not based on anything other than thin air after all ;-p

Reply

Posts: 111
Premium Member
(@paulr)
Estimable Member
Joined: 5 months ago

One Idea is to advertise in the local Paper saying your budget as a cash buyer stating minimum requirements Place basic requirements and leave an E-Mail address  The seller is saving at least 5% fees  Just make sure you use proper legal people and make that is made plain to the seller.

Reply

Page 2 / 3

Reis & Pellicano International Lawyers

To post a reply, sign up and become a member!

Premium

By becoming a valued Premium Member today, your support will help the team continue to bring you useful content about life in Portugal. You can also:

JOIN TODAYOnly €25 per year
Share:

Free

Sign me up as a Community Member today for access to the forum and social meet-ups.

SIGN UP

Premium

The first year’s donation is only €47 with a 50% discount every year you continue to renew your membership. By becoming a valued Premium Member today, you will unlock some great privileges, freebies and perks.

Less than €4 per monthJoin Today

Copyright © 2021 Expats Portugal

Marketing by Unity Online