Making an Offer
on Property in
Portugal: What Buyers
Should Know.

Finding a property you want to buy is one thing. Deciding what to offer, and on what basis, is another.

International buyers sometimes approach this stage with assumptions from their home market. In Portugal, however, the way an offer is made, negotiated and followed by the CPCV needs to be understood in the context of the individual transaction.

Price matters, but it is not the only consideration.

Before making an offer, you should understand what you are offering to buy, how you intend to finance it, what still needs to be checked and what happens if the seller accepts.

There is no universal percentage that buyers should automatically offer below the asking price.

An asking price is just that: the price at which the property has been offered to the market.

Whether there is room for negotiation depends on the individual property, the seller, current demand, how the asking price compares with relevant alternatives, how long the property has been available and the strength of the buyer's position.

A property that appears expensive relative to comparable options may justify a different approach from one that is competitively priced and attracting several interested buyers.

The objective should be to arrive at an offer you can justify, rather than applying an arbitrary discount to every property.

Before deciding what to offer, it is useful to understand the context around the asking price.

Relevant considerations can include:

• comparable properties currently available
• recent market evidence where reliable information is available
• location
• condition
• floor, orientation and outlook
• parking, storage and outside space
• quality of renovation or construction
• building condition
• characteristics that are difficult to replicate
• apparent level of buyer interest
• the seller's circumstances, where genuinely known

Not every property has a directly comparable alternative.

Two apartments in the same neighbourhood, or even the same building, can justify different values because of their condition, position, light, views, outside space or other characteristics.

Price is only one part of an offer.

A seller may also consider how straightforward the proposed transaction appears.

Factors can include whether the buyer requires mortgage financing, the proposed timing, whether funds are available for the deposit, and any conditions attached to the offer.

That does not mean a cash buyer should automatically pay more, or that a financed buyer is necessarily at a disadvantage.

It means the overall terms of an offer can matter alongside the headline price.

The appropriate level of investigation before making an offer will depend on the property and circumstances.

At this stage, buyers may still need information concerning matters such as:

• the property's documentation
• condominium information
• planned building works
• licences or authorised use
• inclusions in the sale
• financing
• technical condition
• expected timing
• occupancy or tenancy
• furniture or equipment included in the transaction

Some matters may be investigated in greater depth by the buyer's lawyer or other professionals before the CPCV is signed.

The important point is to know what remains unresolved rather than assuming that an accepted offer means every aspect of the property has already been checked.

The appropriate format will depend on the transaction, but a clear offer should leave as little room for misunderstanding as possible.

Depending on the circumstances, it may address:

• the property being purchased
• the proposed purchase price
• the buyer's intended timing
• financing, where relevant
• any important conditions
• items expected to be included in the sale
• proposed progression towards the CPCV

Where conditions or legal protections are important to the buyer, they should be discussed with the buyer's independent lawyer.

Do not assume that wording used in an informal offer automatically provides the same protection as a properly drafted contractual provision.

There is nothing inherently wrong with offering below an asking price.

The question is whether the offer makes sense in the context of that particular property.

An offer that is supported by the property's condition, comparable alternatives or other relevant factors can form the basis of a sensible negotiation.

An extremely low offer made simply because a buyer believes every Portuguese property should be heavily discounted can have the opposite effect. A seller may reject it without engaging further.

There is also no rule requiring a seller to negotiate.

Sometimes the right advice is to negotiate firmly. Sometimes it is to recognise that a desirable property is already appropriately positioned. And sometimes it is to walk away.

The objective is not to win a negotiation for its own sake. It is to buy the right property on terms you are comfortable with.

Where more than one buyer is interested in a property, the seller may receive competing offers.

In that situation, buyers should decide their own limit rather than allowing the existence of competition to dictate the decision.

Consider:

• what the property is worth to you
• what alternatives are available
• whether you are comfortable with the price
• whether important conditions are being compromised
• whether urgency is affecting your judgement

Losing a property can be disappointing.

Overpaying for the wrong property or abandoning important protections simply to secure it can be considerably more expensive.

This distinction is particularly important for international buyers.

Once an offer is accepted, there are normally still important steps before the purchase is completed.

These may include legal due diligence, preparation and negotiation of the CPCV, payment of the agreed deposit, financing arrangements where applicable, and ultimately completion of the transaction.

The precise legal effect of communications, reservations, offers and other documents depends on their wording and circumstances.

Buyers should therefore obtain independent legal advice where there is any question about what they are being asked to sign or commit to.

After an offer has been accepted, attention commonly turns to the Contrato-Promessa de Compra e Venda, or CPCV.

This is a much more significant stage than simply agreeing a headline price.

The CPCV typically records the contractual terms of the proposed transaction and commonly involves payment of a deposit.

Before signing, the buyer's lawyer should have the opportunity to carry out the appropriate legal checks and review the contractual terms.

Conditions concerning financing, documentation, completion timing or other matters should not be assumed to exist automatically. Where protection is required, it needs to be considered in the context of the actual agreement.

A buyer may occasionally be told that another purchaser is interested, that a decision is required immediately or that a deposit needs to be transferred quickly.

Sometimes there genuinely is competing interest.

That does not remove the need to understand what you are agreeing to.

The appropriate response is not necessarily to slow every transaction down. It is to make sure that speed does not replace the legal, financial or technical checks appropriate to the purchase.

Where legal commitments or substantial payments are involved, the buyer should understand the position before proceeding.

If your purchase depends on financing, establish your position as early as possible.

A buyer should understand their likely borrowing capacity and the mortgage process before making commitments that assume financing will be available.

The relationship between an offer, the CPCV and mortgage approval also needs careful consideration.

A financing condition is not something buyers should simply assume will automatically apply. Where one is required, its wording and legal effect should be discussed with the buyer's lawyer.

Before submitting an offer, ask yourself:

• Do I understand why the property is priced where it is?
• What evidence am I using to decide my offer?
• What is the maximum price I am genuinely comfortable paying?
• Do I require mortgage financing?
• Are there important conditions I need to raise?
• What remains to be checked?
• What exactly is included in the sale?
• What timing am I proposing?
• If the offer is accepted, am I ready to move to the next stage?

Being prepared makes negotiation considerably easier.

Part of my role is helping buyers assess a property in the context of the market and decide how they want to approach an offer.

That includes discussing the asking price, relevant alternatives, the apparent negotiating position and the practical terms of the proposed purchase.

I can then communicate and coordinate the offer and negotiation while keeping the process moving towards the next stage.

Where legal, mortgage or technical advice is required, I can connect you with the appropriate professionals, with the wider support and resources of The Agency Portugal.

The final decision on what to offer is always yours. My role is to help you make that decision with as much relevant information and context as possible.