Making an offer on a Greek property
Once you have taken your viewing trip, seen a selection of properties and found the one that fits, it’s time to make an offer.
But in a new country it can be hard to know what a fair price is. 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.
Before viewing property
Bear in mind that the more you can do in advance the better your chances of acquiring the right property and being able to negotiate effectively.
If you are buying as a couple or even in a larger group, be 100% clear on what are your ‘must haves’ and ‘nice to haves’. 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.
Above all, be ready to buy. Contact Smart Currency Exchange about having funds ready for a deposit and have a lawyer ready to check any contracts. If using one, have a mortgage approved in principle in advance.
Research the local property market
Before making an offer – indeed ideally before viewing the properties – do thorough research into the local property market.
Talk to the estate agent, but bear in mind that they might not be the most impartial source of advice on the property market.
Greece has plenty of housing data available, from reports from the Hellenic Property Federation (POMIDA) 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.
Property portals allow you to be hyper-local in your market analysis. Search for similar properties available in the local area and see how the price compares.
Also investigate prices of property recently sold. You can find such records in the Greek Land Registry and Greek Cadastre.
Take into considerations such factors as how long the property has been on the market, the seller’s eagerness to sell and any issues with the home.
Making your offer: negotiating
Having established if the property is fairly priced or could be bought for less, you will put in an offer via your estate agent.
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.
Buying off-plan offers less scope for negotiation on price, unless at the very end of the build when developers may be eager to move on. There might be potential for getting upgrades on finishes, white goods and other features though.
When making an offer, ensure that each party understands any contingencies, such as whether you need a mortgage approval or 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 the seller offering it to someone else, but 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.
It is only off the market for two weeks or so, so it’s important for this to 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.
Read more about the next phase in buying property in Greece here.