Making an offer on property in Cyprus
Once you find a property in Cyprus that ticks all your boxes, you’ll have to make an offer to start the buying process.
But in a new country it can be hard to know what is a fair price, and negotiating might feel daunting. Here we offer guidance on how to get the best deal for you, plus the key steps from preparing your offer to formalising your plans with a lawyer.
Research the market
Before making an offer – indeed ideally before viewing the properties – it’s helpful to do thorough research into the local property market. After all, the estate agent might not be the most impartial source of advice on the property market.
Cyprus has plenty of housing data available, from reports from the Royal Institution of Chartered Surveyors (RICS)m to market analysis from property portals, the government and even the European Union via Eurostat.
These can give you a snapshot of current market conditions and you can make a decision on whether to offer below or the full market price.
If you are buying as a couple or an even in a larger group, it is best to have discussions about finances beforehand. The last thing you want is for your negotiation process with the seller to become delayed because you are having to negotiate with each other first.
Making your offer: negotiating
Having viewed the property and being absolutely sure you want to buy it, it’s time to put in an offer. You will do this via your estate agent.
Where you pitch your offer will depend on the market and whether you feel the property is fairly priced. Most buyers offer a little below the asking price – five or 10% is normal. However, in seller’s markets it may be worth offering the full asking price for a property you love, and in a buyer’s market offering less – maybe 20% under.
Only you will know if it’s the property for you even at full price, or if you will be happy to walk away.
You will also want to take into considerations such as how long the property has been on the market, the seller’s eagerness to sell and any issues with the home.
Buying off-plan generally offers no scope for negotiation on price, but the potential for getting upgrades on finishes, white goods and other features. However, with developers the end of the month, financial year or before they are about to start on a new project, might offer potential for lower offers.
If you have any doubts about the property, such as whether you will get planning permission for changes, ensure this is noted.
Offer accepted
Once accepted, the agent will take the property off the market. You may be asked to sign a reservation agreement and may also need to put down a deposit of anything between €3,000 and €10,000.
This sets the price and prevents gazumping, bit consult your lawyer before signing anything or sending the money. You’ll need to know under what circumstances you will be refunded if the deal falls through. Ideally, this deposit will be held in a neutral account.
For guidance on negotiating a price, discover our money-saving tips for buyers in Cyprus
Formalising your offer
After reaching a verbal agreement, the offer must be formalised. This involves your lawyer drafting a written offer, which should include the price, any conditions of the sale, and the expected timeline for the transaction.
The Sales Agreement is signed by both parties. At this stage, a deposit (around 10% for resale and 20-30% for new builds) is usually paid to secure the property. The legal process then begins, which includes due diligence checks and obtaining necessary permissions from local authorities.
After the legalities are settled, the final contract is signed and the balance of the purchase price is paid. It’s at this point that ownership is officially transferred and the buyer can take possession of the property.
Throughout this process, it’s essential to have a knowledgeable real estate agent and an independent lawyer on your side to navigate the complexities of property transactions in Cyprus.