he Algarve property market many foreign buyers who are
is extremely competitive. looking to purchase Algarve
More so for the Algarve Property. But if one compares the
Real Estate Agents themselves numbers of buyers and the
than for the buyers. The existing Agents you will see that
competition amongst the Algarve this cannot make healthy figures.
Property Agents is fierce. One
look at the many Algarve Real
Estate Agents offices in all the There are some excellent Real
cities, towns and villages will Estate Agents to be found. In
confirm that. There truly is a particular the larger and long
Real Estate shop on every corner established organizations. Many
of the Algarve. of them Portuguese owned. They
have developed into market
Looking from the outside in, this leaders over the years, have
seems to be a tell tale sign that diversified and have become
the industry is healthy, and developers as well.
thriving. Otherwise why should
there be so many Agents? Others are promoting large and
new developments on an exclusive
Let me answer my own question basis, financed quite often by
first. The amount of Agents foreign capital with close
trying to sell Algarve properties connections to English and Irish
does not mean that all of them Real Estate chains and financial
are making money. A bold institutions. They in turn
statement, but absolutely true. generate the overseas marketing
The property market in the and are directing the prospective
Algarve is doing ok and in some buyers to their "own" projects so
parts of the Algarve even to speak.
exceptional well. Yes, there are
Even though the demand for happy to hear from you.
Algarve properties is on the
increase, so is the number of The basic principle behind the
newly builds and re sales. The reason for establishing a foreign
steady rise in new developments owned Real Estate business is
does make re sales in some areas quite easy to understand. There
of the country more difficult to is a consensus that foreigners do
sell. like to buy from or through their
"own". Given the amount of people
With the Algarve becoming a from overseas buying property in
target for foreign investors and Portugal the seemingly obvious is
property buyers the amount of to start a Real Estate Agency in
foreign owned Real Estate Agents the Algarve and cash in and ride
in the Algarve also increased. the wave.
Real Estate has always been
synonymous with money and this in That in a nutshell is the main
turn attracts a lot of people reason why there are that many
thinking that it might not be too foreign owned Real Estate Agents
difficult to start a Real Estate in Portugal. And of course the
business and jump on the chance to make a lot of money in
bandwagon. the process is another good,
understandable and absolute
Some of the Agents have had none legitimate reason for this trend.
or little experience in what ever
shape or form in Real Estate
prior to coming to Portugal. This I have nothing against anyone
statement which will annoy many I making money but I have to ask
know, but I doubt if I would find the question if the amount of
anyone who could disagree with on commission the agents charge
that point. If there is I am today are really appropriate and
also deserved. business. I know that some people
do not agree with me on this
3% and 5% are the norm. The point, and some of the
agents argue that they do need regulations concerning the
that sort of margin since they do administration may be open to
have a high cost of advertising debate but overall I don't think
and marketing. Well that may be anyone can deny the benefits of
the case, but why should the the new laws.
buyer pay for that? Make no
mistake it is you the buyer who For readers who are not familiar
is footing the bill. It is my with the Real Estate business in
believe, that such levels of Portugal I would like to explain
commission are necessary for many a few facts:
because of the lack of sales they
do. So in order to survive they Unlike the UK or other European
have to charge what they charge. countries there are only very few
Why are they not closing more Agents who are operating on a
sales? Because there are too many exclusive basis. The ones who do
Real Estates competing for the are in the main American
same market Franchises who have a unique way
of marketing property in the
As long as one finds a license Algarve, and require the vendor
holder with a current, and up to to sign a contract for a length
date Real Estate license under of between 6 and 12 month on a
the IMOPPI rules it is not too strict exclusive basis.
difficult to set up a Real Estate
Agency. The laws governing the One can see the advantages such
Industry have become thank god contracts bring for these
more stringent and that is god companies, but for the seller
news for everyone in the this is in the main very bad news
indeed. The rest of the Real the need of having any Real
Estate Agents in the Algarve work Estate Agents at all. There are
on an open contract mostly for a alternatives to buying and much
duration of again 6 or 12 month, cheaper one's as well. I can see
which allows the vendor to offer the day when more and more people
his or her property to other will buy owner from owner and let
agents as well. Quite often the their solicitor deal with the
same property is on the market rest. The sourcing of properties
with two or three Agents or more. which matches your requirements
can be achieved quite easily by
yourself.
I believe that the times are
changing and I call in question
About the Author:
Pedro Rodriguez was born in Valencia and has spent his early professional with Woodstock Homes PLC. For the past 18 years he worked in commercial and residential Real Estate. He is now involved in the publicity and advertising of properties which are for sale direct from the owners. Our site can offer you some further information and insight on buying or selling a property or business in Portugal. http://www.sellandbuydirect.com
Source: www.isnare.com
