Over the last few years the most common request most estate agents in the Algarve have received from potential buyers is for distressed properties or bank repossessions. And no wonder, everyone is looking for a bargain and the truth is that there are vendors who need rather than wish to sell. Likewise, there are plenty of properties on the market that have been repossessed by the banks.
Having worked with such properties in the Algarve since well before the beginning of the economic downturn, the real estate experts at Fine & Country reckon that most of the bank repossessions on the market do not represent particularly good value for money. More often than not, the time lapse between the property being repossessed and finally finding its way to the books of local estate agents results in villas falling into a serious state of disrepair.
There are many cases where properties appear to represent outstanding value for money when viewed on a website, but when potential buyers turn up for a viewing they may find that it has been stripped of most fixtures and fittings, the garden will probably be seriously overgrown and the price being asked by the bank will more often than not be too high considering the investment needed to restore the property.
The problem with many bank repossessions is that the banks in many cases would rather leave the properties on their books at inflated prices than suffer a big “hair cut”. There are some exceptions, but in most cases it is far easier to negotiate with an individual vendor than with a large financial institution.
The best deals on the market in reality are, more often than not, resale properties owned by people selling for personal reasons and not necessarily in a distressed situation. There are many cases where vendors are forced to try and sell their properties to avoid the bank foreclosing on them. The fact is that many estate agents use distressed properties and bank repossessions to lure in potential buyers and then sell them something else.
The best way to find a bargain is to let your estate agent help you identify a property that meets your requirements and decide how much you would like to pay. Ask your agent if the offer is reasonable enough to put forward, in most cases we have a good idea as to how low our vendors are willing to go, and in the interest of both buyer and seller, the aim is to secure a mutually satisfactory deal.
Article supplied by Fine & Country Carvoeiro
