Selling Process Guide for Algarve & Portugal

Selling a property can be intimidating, especially if it's your first time. Even those who have been through the process before can find it overwhelming, which can detract from the excitement of the experience. Our comprehensive guide will help you navigate the property sales process in Portugal, from what to expect during the sale to important considerations before listing your home.

• 01: Find a reliable real estate agent in the Algarve, Portugal
• 02: Preparing your Algarve home for sale
• 03: Listing agreement and exclusive contract
• 04: Marketing your Algarve property for sale
• 05: Viewings to sell a property in the Algarve
• 06: Negotiation with the property buyer in the Algarve
• 07: Closing a sale of an Algarve property

01: Find a Reliable Real Estate Agent in the Algarve, Portugal

The process of selling a property is greatly enhanced by hiring a reputable Algarve real estate agent. An agent's extensive knowledge, expertise, and professional network significantly increase the chances of a successful sale.

When searching for an agent, it is crucial to be mindful of certain factors:

• Feel comfortable with who you decide to hire. The more comfortable you feel with an individual, the easier it will be to communicate with that person and speak freely without hesitation, so having a professional yet honest and open relationship with your agent will benefit the success of your sales process.

• Choosing an agent with a reputable background and plenty of experience in the field will also benefit the sales process, making the time spent with your agent productive with no wasted time.

• Seek agents with proven success in selling Algarve properties in your area for a higher success rate.

• Finding a real estate agent knowledgeable about the market is crucial to provide a realistic evaluation of your property. For instance, appropriate values can be assigned based on the property's size in square meters, location, views, and quality of materials used for construction.

• It's essential to communicate your expectations for the home-selling process from the beginning to avoid misunderstandings or disappointments. It's also crucial to be transparent about details, such as whether the house will be sold furnished, partially furnished, or unfurnished. Additionally, you should specify what will be included in the sales inventory and whether any outstanding works will be completed before the sale.

• Feel free to ask your agent any questions you have. Agents are here to help you with your concerns and are available whenever you need them.

Questions may include the following:

• How many properties have you sold in the area?
• Could you help me determine the value of my property?
• How many other properties are you dealing with?
• What is your success rate?
• How will you handle viewings?

After setting your expectations and reviewing your queries, your agent will offer you fair market appraisals, a list of recently sold properties in the area, and, most importantly, they will provide you with helpful information about the Algarve property market. Specifically, they will offer information about where you are selling your property.

You should ask your real estate agent (or lawyer if necessary) to provide a comprehensive breakdown of all the costs and taxes that apply during and after the sale. Based on our experience, many sellers face challenges because they need to gain adequate knowledge about the general charges and expenses incurred during the selling process. Therefore, it is recommended that you ensure you have all the necessary information before putting your property on the market.

02: Preparing Your Algarve Home for Sale

Preparing your home is a crucial step in the sales process. It involves considering various factors to estimate the selling price and the likelihood of selling.

Maintaining a realistic approach while evaluating your property's worth is important. During the negotiation process, it is essential to allocate time to discuss your property's listing price. Also, exercise caution while comparing your property's price with other listings available in the market. Online prices may not always reflect the actual selling price agreed upon. This is because the actual price is sometimes kept offline and is only known to the parties involved in the sales process.

You should pay close attention to the details of your home. A well-presented home has a higher chance of increasing value and attracting more buyers.

Being well-informed about the current market can help you successfully present your home. Research supports the process running smoothly. To better understand the value of your property, we recommend doing some research on real estate portals. This will allow you to compare your property with similar ones in your area. Additionally, we suggest reading the latest market report to understand better what's selling in your area, the selling price, who's buying in your particular area, and other vital insights.

Staging Your Home

After researching, your top priority should be preparing your home for viewings. It's important to note that many sales fall through due to poorly presented properties. Decluttering your home is an excellent first step in preparing it for any occasion, as it instantly makes it look neat and inviting. We recommend removing all personal but non-essential items such as photographs, jewelry, and toys and storing them out of sight. Decorative pieces that are too personal and specific to your taste should also be removed, along with any worn-out furniture that could tarnish your home's appearance.

It is advisable to create a snagging list. This involves inspecting a property for minor defects that require repair. This process helps identify issues ranging from paint chipping to leaks and heating and cooling problems. It also allows you to ensure that all appliances, such as hot water and electricity, function correctly.

It is crucial to address any issues with your home before putting it up for sale to prevent potential problems in the future. We recommend investing in a fresh coat of paint, polishing your floors, and hiring a professional home cleaning service to ensure your property is in top condition before viewings.

Before presenting your home for viewing, conducting an inventory of the property is essential. This step should be completed before any viewings as it can impact the negotiation process. In our experience, discrepancies in the inventory or extras can lead to a sale falling through. Therefore, ensuring that everything is in line with what was initially agreed upon is paramount. Ensure you update your inventory before putting your property on the market for viewings.

As your agent has experience with property viewings, they can offer their expert opinion and recommendations on how to stage your property.

03: Listing Agreement and Exclusive Contract

What is a Listing Agreement?

The listing agreement is contract between a property seller and a real estate agent that outlines the terms of selling a property in Portugal. This includes:

• The type of listing (exclusive or open)
• The duration of the agreement
• The property’s list price
• The agent’s commission terms

The Algarve has an open real estate market, meaning the property can be listed with multiple agents. The agent selling the property is entitled to the sale commission.

This is the typical process followed for a sale in the Algarve, and it can be a good option for those who are willing to engage with multiple agents and stay in communication with them. You can expect to see different marketing approaches used for your property when working with various agencies or agents. The quality and quantity of these approaches will vary depending on the agent. Nevertheless, this option is still commonly used by regional property sellers.

If you decide to advertise your property with multiple agencies, keeping a close eye on how they promote it online is essential. Sometimes, different agencies may advertise your property on the same portal, resulting in it appearing multiple times. Therefore, we recommend that you regularly check how your property is displayed on portals such as Idealista or Green Acres to ensure that it is presented accurately and effectively.

When selling a property, many vendors sign an exclusive right-to-sell agreement with an agent or an exclusive listing contract with an agency. The term "exclusivity" means that the agent will primarily focus on marketing your property. They will work solely to ensure that your property is marketed perfectly and collaborate with you throughout the marketing process to incorporate your personal preferences. The agent will share the marketing material with other agents and manage all marketing and viewing activities on your behalf.

An exclusive contract provides a unique marketing approach for your property with custom branding. This means that instead of having advertisements from multiple agencies with varying formats and strategies, you'll have a single marketing stream with tailored methods curated explicitly for your property. This ensures communication and understanding between you and other agencies are communicated effectively. For instance, different pricing on various portals for your property can be avoided.

This exclusive contract has several advantages, including having your property's branding and advertisement explicitly curated for it. This tailored approach can present your property in a new and creative light, both online and offline. Furthermore, it can make your property seem more exclusive to viewers, leading to increased attention and broader recognition.

It is essential to understand that none of the options mentioned above are superior to the other, and none can guarantee the sale of the property more than the others. Select the option that you believe is best for you and your property. Additionally, your agent can provide you with their expert opinion on which method may work better in your favor.

04: Marketing Your Algarve Property for Sale

It is crucial to have effective marketing strategies in place, in addition to your agent's expertise, to sell a property successfully.

In the Algarve, it is customary for the agent or agency to provide the budget for all marketing activities, regardless of whether it is a conventional or exclusive listing. However, if you have an exclusive property, there is a higher chance that the agent will invest more money into marketing it, which can improve the prospects of selling it. This is mainly because the quality of marketing improves with increased investment. Better marketing equals better exposure and more attention on your property. You can request your agent to increase the marketing budget. However, as a vendor, you can consistently offer additional funds to enhance marketing efforts and achieve better results beyond the expenses the agent covers.

LiveAlgarve Realty is proud to handle all marketing material in-house, covering all associated costs. We have implemented a 7-day Standard strategy for all listings, which involves completing all marketing within 7 days of the first action. This unique strategy sets us apart from all other real estate agents in the Algarve. If you sign an exclusive agreement with us, we will cover all costs and ensure your property is flawlessly presented, making it stand out from the competition.

LiveAlgarve Realty is well-known for its exceptional marketing strategies that cater to our clients' needs. Our approach involves developing bespoke marketing plans tailored to each property, ensuring that the marketing materials created are unique and never duplicated.

Our in-house team of fully equipped experts enhances the visual appeal of your property. We capture professional-grade photographs and videos of your property to showcase it in the best possible light. For those unable to attend viewings in person, we also provide remote tours that utilize the latest technology.

We leverage our extensive online following and globally recognized social media channels to promote your property. This includes creating and publishing LiveAlgarve Property Tours on our esteemed YouTube Channel. Additionally, we design and send personalized mailings to our clientele to promote your property further.

Once the marketing assets are captured, we suggest organizing an open house for large-volume viewings. This is an excellent way to increase exposure for your property through advertising and word-of-mouth.

05: Viewings to Sell a Property in the Algarve

Viewing a property in the Algarve is an essential part of the sales process, allowing potential buyers to understand the property better. Before marketing the property, it is crucial to prepare it physically. This means the property must be presented perfectly for shooting photos and videos. Before marketing the property, any ongoing work must be completed and disclosed to potential buyers.

It is crucial to inform your agent about the aspects of the property you love the most and want to highlight during the first viewing with clients. You know the property better than anyone, and your input is valuable. It is also advisable to walk through the property with your agent again to ensure they have all the necessary information about the property.

When passing your notes to potential buyers, your expert agent will consider your comments.

It's important to provide your real estate agent with as much flexibility as possible when scheduling property viewings. You never know when a potential buyer with a strong interest in your property will appear. Allowing flexible viewing times increases the chances of receiving an offer and ultimately selling your property.

Based on our experience, avoiding attending viewings with clients and your agent is best. As a homeowner, you may have an emotional attachment to your property, which can lead to over-selling and may not be perceived as intended. You could also overwhelm potential buyers with irrelevant information about the property. Moreover, if a potential buyer wishes to express their concerns about the property, they may hesitate to do so if you are present, which can negatively impact the viewing experience.

Virtual tours of Algarve properties have become increasingly popular in recent years. Based on our experience, many serious buyers now purchase properties without physically viewing them. Therefore, we strongly recommend that you and your agent accommodate these virtual viewings. However, before scheduling a virtual viewing, it's essential to research the potential buyer and determine how serious they are about your property. This will ensure that the viewing is worth your time.

When showing and selling a house, leaving it to the experts is best. You pay an agent for this purpose; they are professionally trained to handle the job. The agent will professionally manage the house viewing and update you on how it went, along with their initial impressions.

06: Negotiation with the Property Buyer in the Algarve

The negotiation phase is critical when selling property in the Algarve. Your agent’s experience and knowledge of the Algarve real estate market will be invaluable in securing the best possible offer. A respectful relationship with your agent is essential, as their insights will help you make informed decisions.

Your agent will provide you with feedback on all property viewings. They will compare these with previous successful viewings and sales to help you decide on the offers received. A good agent will not oblige you to accept a specific offer. Instead, they will guide you through your options and offer professional advice to help you make the best choice.

Suppose you are building a home cinema while your property is on the market and being viewed. You have agreed with a potential buyer that you will cover the costs of building the cinema before the sale is finalized. However, if the buyer is unaware of how the cinema will be built, what materials will be used, and how much seating there will be, they may have certain expectations about how it will look. If the outcome does not match their expectations, they may feel cheated and disappointed enough to retract their offer and terminate the sale.

Therefore, it is crucial to establish the inventory and all property information before accepting any offers. We also recommend that you set a budget for this type of situation that is agreed upon by the buyer. This way, the buyer will know the exact costs involved and can agree to pay the difference to increase the quality of what they are getting, rather than simply deciding to include a cinema in the home without establishing a budget.

Contract Signing

After you and your agent have reviewed all the offers, you can decide which offer to accept, along with the price. Your agent will then prepare a reservation contract to be signed, including all the agreed-upon terms negotiated.

This is the beginning of the contract signing phase, which your agent will lead. We recommend hiring a lawyer during this stage of the sale process to review the contracts and ensure everything goes smoothly.

Your estate agent will connect with your lawyers to sign the reservation contract between you and the buyer, which involves paying a reservation fee. Once completed, the buyer will sign a promissory contract and pay an amount equal to 10% of the purchase price. It's important to note that unless there are any exceptional circumstances, the reservation fee and 10% downpayment are generally non-refundable. The contract is also binding for both parties, meaning you cannot cancel the sale without assuming financial penalties imposed by the buyer. Additionally, the agreement is subject to legal and technical due diligence. If either due diligence takes a while to complete and the results are negative, the buyer has the right to terminate the deal and receive a reimbursement for the money paid without any penalties.

07: Closing a Sale of an Algarve Property

After the initial contracts are signed, and all the legal requirements are met, your agent or lawyer will guide you through the remaining steps and prepare you to sign the closing documents.

All parties involved in the property sale must attend the signing of the title deed at the notary's office. This signing allows for an immediate transfer of the property, and full responsibility for it is passed on to the buyer, meaning that the legal ownership of the property is transferred. The property purchase payment is also made simultaneously via the agreed payment terms. After the property is officially sold, your lawyer will ensure all payments are completed and the ownership transfer is registered.

The team at LiveAlgarve Realty is committed to providing you with comprehensive assistance throughout the real estate sales process in Algarve. Their vast knowledge and expertise will ensure a smooth and successful transaction. Our agents are always available to prioritize your needs and goals, provide the best advice, and optimize your home. We strive to exceed your expectations and be with you every step of the way.

At LiveAlgarve Realty, our success depends on yours, so let's work together to achieve results that prove our trustworthiness from the start.