# Making an offer on a property



## Rob_Brice (Aug 6, 2016)

Whilst I accept the answer will likely depend on a number of factors, but as a general rule of thumb when buying an apartment in the algarve is it generally accepted practice to have several rounds of negotiations to reach agreement on the purchase price?
And if so, given todays market conditions, how much below the asking price would an opening offer likely be pitched?


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## Strontium (Sep 16, 2015)

For your question there is no answer. as each potential sale is different and the vendors do not have a collective outlook. If there are multiple owners of the property then all have to agree so often their price is fixed and an offer may take 6 weeks or more to get a reply and sometimes there is never a reply. If the owner is an expat needing to sell/depart immediately then there could be negotiation but as every sale is unique you will get anecdotal evidence of every different sale. The usual way is to discuss that with the sellers estate agent or instruct your own local agent take this on for you.


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## Rob_Brice (Aug 6, 2016)

Thanks Strontium. I guessed as such.
Anyone with recent experience of purchasing an apartment in the algarve willing to share their experiences?


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## ViaVinho (Jul 29, 2016)

Related question for those with experience in the matter, please. What is the approximate markup on a rustico property by estate agents? I get the sense that locals will not buy through an agent as they consider the price excessive, perhaps 200% to 300% of what they deem the property to be worth to them. I also get the sense that locals would gladly bypass an agent and sell directly to a buyer hoping to make a good profit, but they seem to have no realistic sense of how to price a property to promote a sale. Thanks in advance!
VV


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## MrBife (Jul 26, 2009)

No idea where you are getting your information - there are established published guideline prices per m2 for rustic land in different areas, I will find the link and post it separately

Any agent wishing to actually sell knows the guidelines - some owners may well have fantasy figures in mind but they also have zero chance of selling. In this area at least there are agents who specialize in selling to locals and agents who sell upmarket properties to incoming investors - some overlap between the two of course.

The lower end of the market seems to be served by the franchise operators, Remax, Century 21, ERA and the rest of the market by the others.


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## ViaVinho (Jul 29, 2016)

Thank you. Average prices skew the results, unfortunately, because they include both private and estate agent sales. I have heard a number of stories locally that the owner only gets about 30% of what his property sells for when sold through an agent. This was corroborated by a lawyer who told me that any of my neighbors would simply not be interested in my property at the price that I bought it from an estate agent (franchise such as Remax, ERA). I have seen prices advertised through agencies that were 170% of what the owner asked and I suspect that the owner was asking rather more than what they would get from the agency.


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## Strontium (Sep 16, 2015)

Hi VV,

Which area are you talking about? Even without the influence of agents the Rustic prices vary dramatically within an area as much as the quality of Rustic land varies. Stuff I’ve looked at has bolder strewn hillsides and futile flood plains within 1k of each other and all the locals lust after the futile areas hence a difference in price. The other average price problem is properties classed as article Urban have a garden classed as article Rustic but no one in their right mind is going to sell them separately so there's a single price for the combined articles where as you compare them with a similar article Urban with an unconnected article Rustic the price will be less. A lot of estate agent will not handle individual rustic properties as for them it is not efficient or economical.


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## ViaVinho (Jul 29, 2016)

Thanks for the reply. Yes, indeed, you might get small patches of fertile ground stuck between boulders and shrub land. I'm more interested in the markup of rustic properties. I suppose the lower the price (the poorer the land), the higher the markup has to be for the agent to make a profit.
That said, it would be interesting to know the going rates per hectare (3 - 10 ha) for:
- vines, cultura arvense, olival, (with water source and when well cared for)
- vines, cultura arvense, olival, (with water source and when neglected) and 
- prado natural in central Portugal (Gois, Arganil, Serta, Pampilhosa da Serra, Fundao, Castelo Branco, Idanha-a-Nova).


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## travelling-man (Jun 17, 2011)

It really doesn't matter whether it's rustico or urbano etc....... it's more dependent on the individual seller and/or estate agent because some will elevate prices & some won't.

If you're looking for what might be termed 'local prices' it's sometimes better to use a local 'property finder' rather than a licenced agent........ but even that will depend on the honesty of the locals involved.

In either case, it's absolutely imperative you use a good lawyer (NOT recommended by seller or agent) before you part with a cent.


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## Janina k (Nov 30, 2011)

Hello

We put in a price for a ruin next door to our house of 1,000€ as it has fallen down and due to it's location will never be used to live in again. The ruin was only wanted so we could remove a couple of trees that are spoiling our view.

We have just heard from the family that the property was valued by the Financas who put a value of 10,000€ on it but a little before it finally fell apart last year. The family say via a local lawyer to where we live that should they sell below this price there will be a lot of tax to pay. The lawyer confirmed the facts after we disputed what we had been told.

Fred


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## ViaVinho (Jul 29, 2016)

Thanks for the reply. Interesting, as this sounds like a tax on a capital loss.


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