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Part-Exchange Property in Portugal

3 October 2023 comporta.biz

Part-Exchange your Property

There are many reasons why clients wish to sell or buy property in Portugal. Some sell without purchasing another property and some buy without having a property to sell. However, there are clients who wish to upgrade to a larger property or downgrade to a smaller one and therefore if you are in either of these last two categories, then you may just have another opportunity to buy or sell by using the part-exchange property in Portugal option.

Let me explain, we have many sellers who wish to buy another property once their home in Portugal is sold, some wish to buy a larger home, whilst others wish to purchase a smaller home. Therefore, if as a seller you are willing to consider to part-exchange property in Portugal; That is purchasing the home of the buyer of your property you may just of increased your chance of obtaining a sale.

For example

If you wish to sell your two bedroom property for €300,000 but then wish to buy a three bedroom home for €400,000, you could simply sell yours to the seller in part-exchange plus an additional €100,000 in cash or mortgage. The same would apply if you wished to sell your two bedroom home for €300,000 but then wished to buy a one bedroom home for €200,000, except this time it would be you who received the additional €100,000.

There are an unlimited amount of examples, however if you are in either of these positions you should let the other buyers and sellers know about this, as early as possible. A simple last paragraph on your property listing, stating that you would consider a part-exchange is all you need to do.

The last paragraph may look like this

A superb two bedroom detached home for sale in Comporta at €300,000, owner would consider a part-exchange for a one bedroom home in Sesimbra up to €200,000.

That’s it, simple

You can define the price, area, type, and size of property amongst many other things, just bear in mind, that the more selective you are, generally the less additional opportunities you will find. If you wish to put yourself in front of more buyers, simply let us know if you would part-exchange property in Portugal. Then we can define the conditions that would be acceptable.

Remember to Part-Exchange Property in Portugal

It is currently a buyer’s market and therefore if you wish to increase your chances of selling your property, getting a little creative will help.

For additional help on how to sell or buy property in Portugal or to part-exchange property in Portugal, let Real Estate Comporta, know what you need. A simple email will do.

Luxury Homes in Melides

Owner Finance in Portugal

2 October 20232 October 2023 comporta.biz

Owner Finance

Owner finance in Portugal has been around for many years. Predominantly an American concept, more and more buyers and sellers of property in Portugal are turning to this method to help them either buy or sell their home. Typical owner financing works both for the seller and buyer. Simply put, it’s an alternative to obtaining finance from the usual sources, such as the banks and building societies.

Owner Finance for Buyers

Given the financial sectors, unwillingness to fund, many buyers are making deals with current sellers. The owner, like the bank or holds the mortgage at an agreed rate of interest and period of time. Therefore, instead of the buyer paying the bank, they simply pay the seller.

This helps in many ways. The following can be negotiated on an individual basis; size of deposit, the interest rate, deferred periods if any and period of the loan. If as a buyer, you are having difficulty in obtaining finance for your new purchase, simply ask the owner if they are in a position to hold the mortgage. If so, once terms have been agreed, simply ask your lawyer to draw up the contract.

Please remember

If you stop paying, in most instances, like with the bank, the ownership of your property in Portugal will probably revert back to the seller.

Owner Finance for Sellers

If you wish to sell your property but have found that the banks are reluctant to lend to your potential buyers, then if you are in a position to, you may be able to offer owner financing. Instead of having your potential buyers go to the normal funding providers, you may, at your discretion, offer your own financing to help close the sale.

Once you have agreed the terms of the contract, you may close the deal. Now the buyer’s monthly payments, will go directly to you instead of the bank. In a market, where current deposit rates of interest are low, you may find that by offering owner financing, you can actually get paid twice and receive more than you would, by leaving your funds on deposit at the bank. You’ll obtain the price you want on the sale of the property and receive interest on the outstanding amount.

The deposit, rate of interest and period of the loan are all negotiable. You can always ask the buyer to obtain an insurance policy, too. In the unfortunate circumstances of an untimely death, you get paid and their beneficiaries keep the home. Under all circumstances, owner financing of your home in Portugal should only be concluded with the aid of a competent and qualified lawyer and where possible the contract should be favourable to both the seller and buyer.

Please note

Do you have any particular questions in relation to owner finance in Portugal? Would like to offer your property for sale in Portugal, under these terms? Simply email Real Estate Comporta at your earliest convenience.

If owner financing, helps to sell just one more home in Portugal, then we have succeeded. Please feel free to share this information on OWNER FINANCING at your discretion. Good Hunting and Good Luck!