
I’ve been living in Portugal for five years now. I arrived in May 2019 and bought a beautifully restored old cottage in a small village outside the historic town of Tomar. I love the house –two bedrooms, two bathrooms, cosy living room, modern kitchen and half an acre. I also love the village. But after five years I realize that I want more company, especially during the long wet autumn and winter months. (There was a reason I didn’t want to move to Ireland or England.)
Buying and selling property in Portugal is a very different experience than in the US. They don’t have the same multiple listing service (MLS) and they don’t have lockboxes on properties. In my recent experience, this made scheduling viewings much more difficult. Time and again I was given an appointment, only to have it changed because it wasn’t convenient for the home-owner/occupant.
That also was a huge difference. In the US the homeowner would NEVER be present for the showing! I appreciated the reason for the US practice when I put my Portuguese house on the market and had a couple traipse through making critical comments. Grr! Still, it is the norm here to have the owner/occupier present.
Contracts
If you use a realtor in Portugal, they will typically charge a fee of 3 percent to 5 percent of the selling price. The percentage is lower if you sign an “exclusive” agreement for a fixed period, say six months. You sign a “Mediation Agreement”. When I signed my Mediation agreement it contained a sub-clause that allowed them to charge four percent if a realtor from another agency brought them a client who ended up buying the property. Apparently the two agencies split the commission. It increases the number of potential showings and buyers, but the seller pays more.
When you make an offer in Portugal and it is accepted, the next step is the “Promessa”. The buyer usually puts down a deposit of 10 percent of the agreed purchase price. The “Contrato de promessa de compra e venda” spells out the terms and the projected date for closing. Often this is 60 days or more.
More differences
When I sold a house in the US I had to fill out a long list of “disclosures” explaining details about the foundation of the property, the water supply, roof, air-conditioning etc etc. Then a home inspector came and snooped around to see if he (it was always a he) could find any picky details to complain about. One inspector even cited a loose screw on an outside electrical socket.
Here in Portugal it is caveat emptor. Anecdotally I heard of a woman who knew her house had woodworm problems in the roof beams but said nothing to the buyers –– because she didn’t have to!
Prices rising
I made a research trip to Portugal the year before I moved. I traveled from just south of Lisbon to several places in the center and north of the country. When I returned to the US I told a friend that buying property in Lisbon would be a great investment. I was right.
When I looked at some houses in central Portugal in 2018 and 2019, it was possible to find livable places for around 100,000 euros. Now places for less than 100k typically need a lot of renovation. Prices in the countryside in central Portugal are now closer to 200k. Higher in other parts of the country, lower in the far north.
Property prices have risen steadily in the past ten years. The increases have been steepest in the greater Lisbon area and the Algarve, along the south coast. Cities in other parts of the country have also experienced soaring prices. Press reports attribute the increases to the greater numbers of foreigners looking to buy property in Portugal.

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