Fees – Buyer Agent
Option 1 – Percent of Selling Price from Seller
You don’t pay us anything. It is from the seller that we get our fees. It is that simple. Although we work for the buyer, we will ultimately share the selling commission with the selling agent.
Although it may seem like a paradox that we receive from the seller, we still comply with the REALTOR® Code of Ethics which is to work for the buyer and not the seller. The buyer is contracting us, but it is the selling agent whom ultimately has to share his commission.
Nonetheless, if a Buyer wishes to contract the services without any commission fees, then we offer another way of doing business:
Option 2 – Pay our services directly
Percentage of Sale based on potential Selling Price
In this case you prefer pay us a flat fee. In that case, we take an upfront retainer fee (a fixed amount) plus a percentage of the selling price.
Retainer Fee = 1,500 / <300k = 3.5% of selling price.
Retainer Fee = 2,000 / 300k – 700k =3.0% of selling price.
Retainer Fee = 3,000 / 701k – 1M = 2.5% of selling price
Retainer Fee = 3,500 / >1M = 2% of selling price.
Notes: All invoicing shall have the Portuguese VAT tax added and currency is in Euros.
All Contracts shall comply under the Portuguese Legal System.
We are confident that our fee structure is designed to ensure your use of our services saves you money, time and stress. Not only will you benefit from huge savings off the asking price, we will try our best find you a home that will have high potential for future valuation.
The services that we offer should not be considered an expense, but yet an investment, and not a commodity that can be bartered against. Our aim is to secure your property for the lowest possible price. Not that we want to diminish our partners in the industry, but it should be remembered, the regular retail broker, especially the franchised ones, will only be looking to make the quick sale and gain his commission.
Option 3 – Auctions
Our experience in negotiation and a committed knowledge of the market, compound to form a formidable combination at any auction. The three possibilities we declare as the only outcomes that you should accept after a tough negotiation are:
- we capture the property within your budget
- we capture the property after an auction has seen the property passed in to us, OR
- we stop you from paying too much at auction. We don’t play emotional games or commit ourselves to an egotistical ‘pissing contest’ present at so many auctions, and many times if there is, we know how to stop them.
Our mantra is that ‘the biggest favor a Buyer’s Agent can ever do for you is to give you options. Knowing that “there will always be another” sometimes that’s just might be the right advice at the right time.
We would like to think that through our informed counsel we will ensure that you are the most informed and astute buyer. We have seen people crying at auctions because they didn’t get the property they wanted, only to see the same person (as our client) at an auction in the following weeks happier and with a better property than they missed out on the weeks before.
We understand intimately the bidding process and bring to auctions the confidence, emotional detachment and strategies necessary for a successful bid.
For our Auction Bidding service we charge an auction attendance fee of $500 plus VAT for each day of bidding.
It is our goal to negotiate the best possible price on the best possible terms for you, the Buyer.
Auction €500 (attendance) Success fee of €2,000
So, in the above, if a house was not bought, but we went to the auction, we would charge 500 plus VAT.
If a property was purchased on your behalf, only the fixed value of €2,000 (plus VAT) would apply.
PORTUGAL GOLDEN VISA COSTS
The Portugal real estate investment path to a Schengen visa issued by Portugal a popular one right now. The minimum investment amount is only €500,000. You can read more about the Golden Visa here.
Nonetheless, the costs associated with are described below, in approximate values, subject to change.
Although legal assistance is not mandatory, applicants may be better off having an attorney present their case. We assist and work with the attorney free of charge, within our field of real estate.
The Portuguese government charges an application fee of €514.80 per initial and renewal application, a visa initial issue fee of €5,147.80 per visa holder. For children under 18, it’s 50% and a visa renewal fee at the end of years 1 and 3 of €2,573.90 per visa holder.
Thus the total Government fees payable (directly to the government) by a couple and one under-aged child will be as follows:
– Application €514.80
– Issue €5.147.80
– Renewal €2.573.90 (end of years 1 and 3)
Legal assistance fees can differ, but on average they seem to be around €2,000-3,000 per family for assistance with the Golden Visa and €2,000 per family for assistance with each renewal.
Legal assistance for a €500,000 real estate purchase tends to be around €3,500 and the combined legal assistance for the visa application plus the said property purchase averages about €5,000.
Legal assistance with making a regular financial investment will not generally be needed, while that with setting up or acquiring a business will be generally needed, but impossible to determine as an average, due to the great variety of possible circumstances.
There are different taxes imposed when purchasing property in Portugal.
The Stamp duty (“imposto de selo”) has a rate of 0.8% of the transaction value and applies in Portugal to the purchase of a property.
In addition, we have the most significant tax – property transfer tax (“IMT”), which applies to the property purchase. While there are some variations according to property type (rural, commercial/industrial or residential), property status (rehabilitated properties may benefit from exemptions), location and property intended use (property intended as the permanent residence of the purchaser benefits from slightly lower rates), the typical situation is that of a new residential property not intended as the owner’s permanent residence.
A full explanation relating to property taxes can be found in Purchasing Process.