Selling Houses in Portugal by Living Portugal Portugal
Common Mistakes
Mistake #1 – Incorrect Pricing
Every house seller in Portugal naturally wants to get the most money for his or her product. The most common mistake that causes the Portuguese house seller to get less than they hope for, however, is listing too high. Listings reach the greatest proportion of potential buyers shortly after they reach the market. If a house is dismissed as being overpriced early on, it can result in later price reductions. Overpriced houses in Portugal tend to take an unusually long time to sell, and they end up being sold at a lower price than they likely would have had they been priced properly in the first place.
Mistake #2 -- Mistaking Re-finance Appraisals for Market Value
Re-finance appraisals can be very encouraging for Portugal house owners, leading them to assume that the appraisal is the amount that they should expect to receive when they sell their house in Portugal. Lenders often estimate the value of your house higher than it actually is, in order to encourage re-financing. The market value of your house in Portugal could actually be (and often is) lower. Your best bet is to ask your realtor for the most recent information regarding house sales in your community. This will give you an up-to-date and factually accurate estimate of your home value.
Mistake #3 -- Failing to "Showcase"
In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your house in Portugal to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs and importantly clean your home. Make sure everything functions and looks presentable, and remove as many possessions as you can prior to showing. A poorly kept house, or one with too much clutter, will make it dramatically more difficult for buyers to become emotionally interested in your property.
Mistake #4 - Trying to "Hard Sell" While Showing
Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don't try haggling or forcefully selling. Instead, be friendly and hospitable. Pointing out any unnoticed amenities and being receptive to questions is advisable, but this is not the time for negotiation and salesmanship.
Mistake #5 - Trying to Sell to Lookers
A prospective house buyer in Portugal who shows interest because of a For Sale sign or an open house ad may not really be interested in your home. Often, buyers who are not accompanied by a realtor are 6-9 months away from buying, and are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.
Your real estate agent in Portugal should be able to distinguish realistic potential buyers from mere lookers. Realtors should usually find out a prospective buyer's savings, credit rating, and purchasing power in general. If your realtor fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing to the wrong people. If you have to do this work yourself, consider finding a new realtor.
Mistake #6 -- Being Ignorant of Your Rights and Responsibilities
It is extremely important that you are well-informed of the details of your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing any contract. Can your house be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kinds of questions could end up costing you a considerable amount of money.
Mistake #7 - Signing a Contract with No Escape
Hopefully you will have taken the time to choose the best realtor to represent you. But sometimes, as we all know, circumstances change. Perhaps you misjudged your realtor, or perhaps the realtor has other priorities on his or her mind. In any case, you should have the right to fire your agent. Also, you should have the right to select another agent of your choosing. Many real estate companies will simply replace an agent with another one, without consulting you. Be sure to have control over your situation before signing a real estate contract.
Mistake #8 - Limited Marketing
There are two obvious marketing tools that nearly every seller uses: open houses and classified ads. Unfortunately, these two tools are rather ineffective. Less than 1% of houses are sold at open houses, and less than 3% are sold because of classified ads. In fact, realtors often use open houses solely to attract future prospects, not to sell that particular house. Does your realtor have a website? There are very few successful real estate professionals who don’t, and for good reason.
Your realtor should employ a wide variety of marketing techniques and should be committed to selling your house; he or she should be available for every phone call from a prospective buyer. Most calls are received, and open houses are scheduled, during business hours, so make sure that your realtor is working on selling your house during these hours (many realtors only work part-time).
Mistake #9 - Choosing the Wrong Realtor®
Selling your house in Portugal could be the most important financial transaction in your lifetime. As a result, it is extremely important that you select a realtor who is a good match for you. Experienced real estate agents often cost the same as brand new agents. Chances are that the experienced agent will be able to bring you a higher price in less time and with fewer hassles.
Take your time when selecting a real estate agent to sell your house in Portugal. Interview several; ask them key questions. If you want to make your house selling experience the best it can be, it is crucial that you select the best agent for you.
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