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Pedro Rodriguez (101)  
Publicity Direct Ltd
Posted Monday, February 06, 2006 (2 years 288 days ago.) Viewed 5,049 times.
For sale by owner v Real Estate Agent
by Pedro Rodriguez
www.sellandbuydirect.com
In some countries “for sale by owner” is quite common. In others the idea of
selling a property in this way is perceived to be difficult, tedious and the
general attitude is that selling a property should best be done through an agent.
I don’t advocate that selling your home yourself is the only way to find a
buyer for your property. On the other hand, I know from many years of personal
experience in this market that listing your property with an agent does not
mean you will sell your property any quicker, easier or at a better price.
This article is not about trying to prevent you from using an estate agent, or
the attempt of portraying agents as unnecessary. There are many good and professional
agents around doing an excellent job for their clients.
I just happen to believe, that everyone can sell his or her home just as well
as an agent can. But let’s get away for the moment from the merits of either
method.
Let us look of how “for sale by owner” actually works in Portugal since
this is the market I know well enough to comment on.
Portugal’s
property market has essentially two sides. On one hand you have the Portuguese
market, on the other the foreign property buyers market.
The Portuguese owners are accustomed to selling their property themselves. One
look in Portuguese newspapers will confirm that. One can find a substantial
amount of properties being advertised using adverts which read “private sale no
agents please” or words to that effect.
A large percentage of Portuguese property owners will try and sell their home
themselves since they are reluctant to pay the agent a commission of on average
3%.
A Portuguese property owner quite often will tell the agent the price he wants
for his property, and the agent has to increase the price by his commission.
Quite a few owners are not prepared to pay the commission from the money they
receive. If the agent wants to sell the property he has to increase the price
by his commission. So at the end of the
day this property is now at the market at 3% more than it needs to be.
Other owners tell the agent the price they want and have already included the
commission of 3 %. Which ever way you look at it, there is 3% in the price.
Few sellers will give an exclusive contract to an agent in Portugal. They list
their property with multiple agents. It is also not unheard of that the same
property is on the market with different agents at different prices.
Very few Portuguese sellers will make use of a solicitor. Their attitude is
very simple and clear on this point “It is my property, I have the title deeds
in my name, I have receipts showing that I paid all the taxes and bills
relating to the property I want to sell, so why pay a solicitor? If the buyer wants
to use a solicitor to check all the papers, that’s fine by me”
So here we go, very different attitudes and I am sure quite strange to a
foreigner, but absolutely true. The Portuguese owner needs little or no help
from an agent other than the introduction of a buyer and more often than not he
thinks he can find one himself just as easily by advertising privately. The
seller knows that the agent himself will use the same papers to advertise in as
he does. So what is the difference?
Many Portuguese estate agents do not have effective websites and little access
to foreign markets and are using local advertising only.
The foreign buyers market works a little different, not much but a little. The
most significant difference relates to the buying behavior of the Portuguese
people and that of foreigners wishing to buy a property abroad. Foreigners who
already live in Portugal
and have purchased a property once before know their way around and deal with
the system accordingly.
Foreigners who wish to buy in Portugal
for the first time will often select one or two Agents from the internet, trying
to get a feel for the market. They will fly to Portugal a few times or have a
holiday to look at properties, meet the agents with whom they have corresponded
on the internet and at the end will buy from one or the other agent.
In a nutshell this is what happens 8 out of 10 times. Quite naturally, the
overseas buyers are relying more on an agent. Language problems, not
understanding the system, not knowing anybody, feeling strange in a foreign
country are just some of the reasons.
I don’t believe that foreigners wanting to buy in Portugal are not interested in
saving money on the purchase of their home. No matter what nationality Money is
important. Very often it is the lack of information on how to best buy a
property in a foreign country which accounts for the low percentage of
foreigners actually buying direct from the owners. But with a little imagination and effort
anyone seriously wishing to buy a property in Portugal could do it and save
themselves a lot of money.
Foreign owned real estate agents work normally on 5% not just on 3% commission.
This is a big chunk of the overall price. Money better off in your pocket.
Just consider for a moment how easy it is to find a property on the open market
and how easy it is to find an English speaking solicitor and how easy it is to
go and view properties yourself.
Does that sound too much of a problem? Just sit back and think how much you can
gain in monetary terms buy doing a little legwork yourself.
Not every property seller is Portuguese and a lot of Portuguese speak English.
And if you really need an interpreter go and see your solicitor. He will help
you. He will talk to the seller He will make the viewing appointments for you.
What you need are a few reliable reference points, such as your solicitor and
you are in a position to organize the purchase of your new home yourself. I
like to leave you with a final thought. Let us assume you are buying a property
for say 300,000 Euros.
The agent’s fee is likely to be in the region of 18,000 Euros including 21% IVA
(VAT). If you like to receive some more information on how to find a property
yourself, visit our website. www.sellandbuydirect.com
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Posted Wednesday, February 01, 2006 (2 years 292 days ago.) Viewed 390 times.
by Pedro Rodriguez
www.sellandbuydirect.com
Much has been written about this subject already. So why do I spend my time and write another one? Well, one of the reasons I have in doing so, is that I do know Portugal well and feel that I can write with some authority on this very subject.
One other reason I have, is that by reading what has been said and written about moving to Portugal does not reflect the whole spectrum.
There are two different and principle issues concerning this topic. A. moving to Portugal for retirement, and B. moving to Portugal whilst still in need of employment and the need to make a living.
Too much emphasis in the articles I have read is put on the sun, the beaches and the wonderful life in a country where the pace of life is slower, the environment healthier and life in general is wonderful and easy. Well you may not like what I have to say, but I believe that such views are slightly removed from reality.
Let me tell you, that I am an extremely optimistic person and to look at life in a pessimistic way is not part of my make up but I very much dislike that people who are seriously thinking about moving to Portugal are getting sold only half the story.
I have a sneaky suspicion, that some of the authors have had a very personal and vested interest in painting a very colourful and glowing picture.
Let my get more specific about it all and cover the retirement angle first.
To retire in a country with better climate and hopefully with a lower cost of living is a positive step which more and more people take. After a lifetime of work and with a pension to secure this new chapter in their life’s there are very little risks in moving away from your home country. After all Portugal is less than 3 hours away. Faro International airport has excellent connections to the UK in particular, with many operators offering low cost fairs.
The vast majority of retired couples will keep their home in their respective country and spend a few months at a time in the sun, returning to their home country whenever they feel like. Others do live abroad all year round. Both these groups have one thing in common. A regular income.
With a secure and steady form of income from whatever source, you truly can enjoy the country, its people, the sun, and the beaches, the food, in short a great way of life. That’s wonderful. You deserve it.
Now let me turn to the second group of people who are looking to move to Portugal but are in need of a job and income.
I have met and spoken over the past 20 years with many clients and given my views and advice on moving to a different country. I have also met and spoken to many people after they have moved and heard their stories and learned of their problems.
In almost every case where problems developed, it was due to the fact that they relied on information they were given and not taken the precaution to double check, if what they have been told was indeed correct.
Coming to Portugal today, believing that it will not be a problem finding well paid employment can not be further from the truth. It will be tough and that is the reality. I have seen many foreigners come and go, not being able to make ends meet. Not speaking the language does not help and will always be a major obstacle which is not easy to overcome.
If one would like to have a serious desire to succeed in working in Portugal, or even starting a business here the language is priority.
Not speaking the language will narrow your opportunities, and you will be restricted to working within your own ex pat community. Another reason I have identified over the years being responsible for failure and early return to the country they left with so much hope and expectations was the inability to adapt to a very different way of life. If children are involved in a move abroad, and depending on their ages, the education issues can add additional pressure. Not everyone has the money to pay for the education in private schools of their own nationality. Many parents have to send their kids to Portuguese schools which can prove difficult for the children. But that really depends on their ages. The younger they are the better it is, and the less problems parents will encounter.
So when we are talking about younger people coming to live in Portugal, the key issue is without any doubt whatsoever financial stability and the capacity to earn money in a new country. An amazing amount of people underestimating the differences in the way things work in Portugal. Even people with good skills in their respective professions need to learn how to apply their skills within a new, and at the beginning strange environment.
Starting a business in the sun is the dream of many, but unfortunately quite often not enough time is spend on research, evaluating potential markets and opportunities. I don’t like to say it, but the dream of buying a bar or restaurant is mostly short lived. Very few foreigners, having bought a bar or restaurant earn enough money to keep a family. I deliberately said foreigners. The Portuguese bars and restaurants are different and a foreigner will in most cases not be able to compete. When I decided to write this article, I promised myself to be honest and to portray things as they really are.
Please don’t misunderstand I am not saying that you can’t earn money in Portugal. What I say is this: Don’t repeat the mistakes countless others have made before you. Take advice from qualified sources and act upon that advice. Portugal in my belief has a lot of opportunities to offer if you can see them and know how to exploit them and make them work for you.
If you come with the attitude to do your “thing” in the same way you have always done it you have a great chance of “not making it”. Don’t let that happen.
About the Author: Pedro Rodriguez was born in Valencia and spent his early career with Woodstock Homes PLC. After almost 20 years involvement with residential and commercial property sales he is now engaged in a new venture and works as a consultant for an American advertising company. promoting the sale of properties direct from the owners. http://www.sellandbuydirect.com
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