At Portugalist, we understand that buying property in Portugal is not just a transaction—it’s a step towards a dream. Whether you’re looking for a sunny seaside villa in the Algarve, that perfect apartment in Lisbon, or a plot of land in the Alentejo, our partnered buyer’s agents are here to make your dream a reality.
What Does A Buyer’s Agent Do?
- Search for suitable properties based on your needs and budget.
- Analyse paperwork to check for legal or structural issues.
- Advise on suitable locations for relocation.
- Analyse similar properties to see if the seller is asking for a fair price.
- Analyse price drops to see if the buyer is more likely to sell.
- Attend viewings with you or on your behalf (depending on agent).
- Help you open a bank account and get a NIF number.
- Negotiate to get the best possible price (in Portuguese, of course).
Basically: a buyer’s agent is there to hold your hand through the process of buying a property in Portugal.
Do I Need a Buyer’s Agent
Absolutely not.
Every year, thousands of foreigners successfully purchase properties in Portugal. However, as many quickly learn, buying property here isn’t as simple as you would assume—even if you’ve already purchased properties in other countries before.
For example:
- It’s not uncommon to find parts of the property are not quite legal (swimming pools are often built without the correct paperwork, for example).
- Many properties have serious mould and damp issues, but these issues are often painted over (quite literally) or aren’t visible when viewing in the summer.
- Many sellers list their home with no intention of ever selling, which means many international buyers waste a lot of time and miss out on properties they could have bought.
In short: The Portuguese property market is unique, which is why more and more people use a buyer’s agent to help them with the purchase. After all, the seller has an agent looking out for his or her needs. Why shouldn’t you have one too?
What’s the Difference Between a Buyer’s Agent and a Normal Estate Agent?
In Portugal, the term buyer’s agent is not a protected term and also isn’t a common service. Any realtor with an AMI (realtor’s licence) can offer a buyer’s agency service. This isn’t to say that buyer’s agents in Portugal don’t offer a fantastic service—most do!—but if you’re coming from the US where the term is used differently, it’s important to be aware of the differences.
Here, a buyer’s agent acts as a concierge. They guide you through the muddy waters that can be the Portuguese property market, highlighting properties that are best-suited to your needs and budget, and pointing out properties that have issues, that are over-priced, or where the seller is unlikely to actually sell. They’ll also help you negotiate, and suggest bids that they think will be accepted.
Most companies do not charge for this service. This is because realtor fees in Portugal are quite high (around 5% on average) and so when they bring a potential buyer to a seller, the seller is usually willing to offer the buyer’s agent a finder’s fee. There are also companies that charge a fee for their service as well.
Step-By-Step Process
The following is a step-by-step process of what you can expect when working with a buyer’s agent.
1. Initial Consultation
- Understanding Your Needs: The agent begins by discussing your property preferences, budget, desired locations, and any specific requirements you may have. This usually takes place over Zoom.
- Setting Expectations: They will explain the buying process in Portugal, including legal and financial considerations.
2. Property Search
- Research and Sourcing: Using their local knowledge and network, the agent will search for properties that match your criteria. This includes access to off-market listings that may not be available through public channels.
- Regular Updates: You’ll receive regular communications about new properties on the market.
3. Property Evaluations
- Initial Screening: The agent filters through potential properties to ensure they meet your specifications and standards.
- Organize Viewings: They arrange and accompany you to property viewings, or they can visit on your behalf if you’re unable to be present.
4. Due Diligence
- Legal Checks: The agent checks for any legal encumbrances or issues related to the property.
- Structural Inspections: They coordinate with professionals to conduct structural inspections to ensure the property is in good condition.
5. Negotiation
- Price Negotiation: Leveraging their market knowledge and negotiation skills, the agent will work to get you the best possible deal.
- Terms and Conditions: They also negotiate other purchase terms to your advantage.
6. Purchase Agreement
- Drafting the Contract: The agent helps in drafting the preliminary contracts and reviews them to safeguard your interests.
- Guidance Through Signing: They guide you through the process of signing the contract, ensuring you understand all the terms.
7. Closing the Deal
- Final Checks: Before finalizing the deal, the agent conducts any last-minute verifications and ensures all legal requirements are met.
- Finalizing the Purchase: They assist you at the closing meeting where the final contracts are signed and the payment is transferred.
8. After-Sale Support
- Utilities and Renovations: The agent helps in setting up utilities, and if necessary, coordinates renovations or other post-sale necessities.
- Integration into the Community: Some agents also offer additional support to help you settle in, such as introducing you to local networks or advising on local schools and services.
9. Ongoing Relationship
- Future Needs: Your agent remains available to assist with any future real estate needs or questions about property management and investment.