Offers In – Now What? A Guide to What Happens After You Make an Offer on a Property in Portugal
You’ve found it. The property you can picture yourself waking up in, enjoying long lunches on the terrace, or perhaps eventually calling home. You’ve done the viewings, talked it through, crunched the numbers and decided you’re ready to make an offer.
But what happens next?
Making an offer on a property in Portugal is an exciting step, but it can also feel like stepping into the unknown, particularly if you’re buying from overseas and are unfamiliar with the Portuguese property process. Will the seller accept? Should you negotiate? What happens if they come back with a counteroffer? And once you’ve agreed on a price, can you relax and start planning your move?
Well, not quite!
There are still some important steps to take before you get the keys, and understanding what happens next can help you make informed decisions and avoid some potentially expensive surprises.
At The Buyer’s Agent Algarve, we guide our clients through this process regularly. So, let’s walk through what happens after you put an offer on the table, including a few real-life examples from our own experience.
1. Making an offer: How do you decide what to offer?
First things first. There is no magic formula for making an offer on a property in Portugal.
You may have heard that you should always offer 10% below the asking price, or perhaps that vendors generally expect a little negotiation. Whilst many sellers do anticipate receiving offers below their asking price, there is no universal rule about how much you should deduct.
We sometimes use 10–15% below the asking price as a starting point for a negotiation, where the circumstances support it. However, this is a broad guideline, not a formula. The right offer depends on the property, the seller, the local market and, importantly, what the property is actually worth to you.
Our advice? Don't simply pluck a figure out of thin air. Understand why you're offering that amount and be prepared to explain your reasoning. The delivery of a lower-offer usually lands better when backed-up with reasoning as to how you came to this figure.
It's not just about knocking money off the asking price
When we help clients put forward an offer, we look at the bigger picture. How does the property compare with similar homes nearby? How long has it been on the market? Is it realistically priced? Does it need modernising? Are there repairs or improvements to consider? And are there any other factors that might influence its value?
For example, we recently helped clients negotiate on a property where a very similar home on the same road, within the same development, was priced €200,000 lower.
Now, the property our clients were interested in had been modernised, so there was a difference in the internal finishes. That certainly had to be taken into account. However, we also had to consider whether that modernisation genuinely justified a €200,000 difference in price. Would it cost our clients €200,000 to modernise the other property themselves? Probably not.
The neighbouring property gave us a useful reference point and helped us explain why we believed our clients' offer was reasonable. We weren't simply asking the seller to accept less money. We were presenting a rationale for the figure we had put forward.
Of course, two properties are rarely identical, and asking prices don't necessarily reflect the prices at which properties ultimately sell. But comparable properties can provide a helpful starting point for a sensible discussion.
A property is only worth what someone is willing to pay for it
Ultimately, a seller can ask whatever they like for their property. They may have a very good reason for that price, or they may simply believe their home is worth more than the market suggests.
Equally, a buyer might see a property listed at €1 million and believe it is worth €900,000. Neither figure is automatically right or wrong. The final price depends on the property, the circumstances and whether a buyer and seller can reach an agreement.
We generally recommend leaving yourself some room to negotiate, provided your opening offer is realistic and supported by your reasoning. If you offer the absolute maximum you're prepared to pay from the outset, you have very little room to move if the seller comes back with a counteroffer.
However, going in low simply for the sake of it can be counterproductive. An offer that is poorly explained, or wildly out of step with the market, may not be taken seriously. You could also offend the Seller, and tarnish the process.
The aim is to put forward an offer that makes sense for you, gives the seller a reason to consider it and leaves you with a little room to negotiate.
2. What happens when your offer is submitted?
Once your offer has been presented to the seller, there are generally three possible outcomes.
The seller accepts. Fantastic! You can move on to agreeing the remaining terms and getting the legal process started.
The seller makes a counteroffer. This is very common. They may come back with a higher figure, and you can decide whether to improve your offer, hold firm or meet somewhere in the middle. Negotiations may go back and forth a few times before you reach an agreement.
The seller refuses. Sometimes, the seller simply isn't prepared to accept less than the asking price. They might tell you that the price is the price, and that is their decision to make.
This is where patience and a little perspective can be helpful. A rejected offer doesn't necessarily mean the conversation is over forever, but neither should you assume the seller will eventually change their mind. And this brings us to an important point: every property sale is different.
A real-life example of why there is no standard negotiation
We once helped a client negotiate on a property listed at €1.495 million. An offer of €1.25 million was accepted, but our client subsequently had a change in personal circumstances and decided not to proceed. A few months later, we had a new client looking for a property, and this particular home ticked all their boxes. We already had some insight into the seller's expectations from the previous negotiations.
Although the owner had since reduced the asking price to €1.3 million, we went back into negotiations and pushed harder on the price. Our new clients ultimately agreed to purchase the property for €980,000. That's a significant difference from the original asking price.
Now, we want to be clear: this is an exceptional example, not a promise that you can routinely knock hundreds of thousands of euros off a property in the Algarve. There were particular circumstances behind this negotiation, and every situation is different.
But it does demonstrate why it is important not to assume that the asking price is fixed, or that a property which has been on the market for some time will necessarily sell for a predictable percentage below its asking price. It also highlights the value of understanding the seller's position and approaching negotiations with a clear strategy.
3. The price is agreed. Is that everything settled?
Not quite!
Agreeing on a purchase price is a major milestone, but there are other details you should clarify before everyone considers the deal agreed.
For example, does the agreed price include the furniture?
Are the seller's personal belongings being removed?
Are there particular appliances, light fittings or pieces of furniture that you expect to remain?
These details might seem minor compared with the purchase price, but they can become a source of frustration if assumptions are made on either side.
What about the furniture and fittings?
In Portugal, buyers and sellers may agree that certain furniture and fittings are included in the overall price, or they may agree on a separate amount for items being purchased in addition to the property.
If furniture is being purchased separately, the arrangement should be properly documented and discussed with your lawyer. The agreed allocation should reflect a genuine transaction and be handled appropriately for tax and legal purposes.
This is not an area where we would recommend simply allocating an arbitrary amount to furniture to make the property price look lower. The figures need to be reasonable and the arrangement needs to be properly structured.
Interestingly, the seller's circumstances can sometimes influence how these discussions unfold. A vendor who has owned a property for many years, for example, may be more comfortable agreeing to a lower property price if they can also sell the furniture and fittings for a reasonable additional amount. That might suit a buyer who wants a ready-to-use holiday home, particularly if the furniture is in good condition. For someone who plans to renovate and furnish the property themselves, it may be less appealing.
Again, it is about understanding what matters to both parties and negotiating the whole package, rather than focusing exclusively on one number.
Agreeing the other conditions
You should also discuss the anticipated timescale for the transaction, the deposit to be paid when the promissory contract is signed, and any other conditions that need to be agreed between the parties. These details can make a significant difference to a seller.
Someone relocating for work, for example, might prioritise a quick sale and completion date. Another seller may be happy to wait a little longer if it means securing a price they are comfortable with. A buyer who needs to arrange mortgage finance may require more time than someone purchasing entirely with cash.
The key is to understand these practical considerations early and make sure everyone is clear about what has been agreed.
4. Why we recommend agreeing an exclusivity period
One of the things we encourage our clients to consider is an exclusivity period.
In simple terms, this is a period during which the seller agrees not to entertain or accept competing offers for the property, subject to the terms of the agreement.
Why does this matter?
Imagine you've agreed on a price. Your lawyer is beginning the legal checks, you're arranging a technical survey, and your mortgage broker is working on the bank valuation. You're investing time and money in progressing the purchase.
Then another buyer appears and offers the seller more money.
Without an applicable exclusivity agreement or other binding contractual protection, the seller may still be able to negotiate with another buyer before the CPCV is signed. Your verbal agreement, by itself, does not provide the same protection as a properly documented arrangement.
Portuguese negotiations should be conducted in good faith, and misleading a prospective buyer about parallel negotiations can raise legal concerns. However, buyers should not assume that having an offer accepted automatically means the property is secured.
This is why we recommend discussing exclusivity and getting the arrangement documented in writing.
When should exclusivity start?
We generally prefer the exclusivity period to start when our client's lawyer has received the initial documentation from the seller's lawyer, rather than simply on the date the offer is accepted.
Why? Because there can be a delay between agreeing a price and the lawyers actually receiving the paperwork needed to begin their work. If the exclusivity period starts immediately when the offer is accepted, some of that time may be lost while everyone waits for documents to arrive. By agreeing a suitable start point, the buyer has a more meaningful window in which to carry out the necessary checks and progress towards the CPCV.
The precise wording, duration and obligations should be agreed with your lawyer. An exclusivity arrangement is only as useful as the terms it actually contains, so don't leave it as a casual verbal understanding.
5. Get everything confirmed in writing
Once the price and the key conditions have been agreed verbally, the next step is to put them in writing.
At The Buyer's Agent Algarve, we normally send the seller's agent an email confirming the agreed offer and the terms. This may include the purchase price, the furniture arrangements, the exclusivity period and any other agreed conditions. We also provide our client's lawyer's contact details so the seller's agent can connect the two legal representatives.
A written confirmation or memo of sale helps ensure that everyone is working from the same understanding of the deal. It is an important record of what has been agreed, but it is not a substitute for the CPCV or the legal checks that follow. Once the lawyers are connected, the next stage of the process can get properly underway.
And this is why we recommend having a Portuguese property lawyer lined up before you make an offer. If the seller accepts, you don't want to be starting from scratch trying to find someone suitable while everyone else is ready to move forward.
If you're buying from overseas, having your professional team in place, with signed Power of Attorney, can make the whole process much less stressful.
6. Time to arrange a technical survey
With the offer and initial terms documented, this is the point at which we recommend arranging a technical survey.
A technical survey is not generally a mandatory step in every Portuguese property purchase, but we strongly recommend one for almost every purchase. Why? Because viewing a property and understanding its true condition are two very different things.
A house may look beautiful during a viewing, with freshly painted walls, attractive finishes and a lovely terrace. But what is happening beneath the surface? A suitably qualified surveyor can assess the property's condition and identify potential issues that may not be obvious during an ordinary viewing. Depending on the property and the scope of the inspection, this might include damp, roof defects, cracks, drainage concerns, poor workmanship or other maintenance issues.
A survey is not a guarantee that every possible defect will be discovered, nor does a standard technical survey necessarily cover every specialist concern. However, it can give you a much clearer picture of what you're buying and whether further investigation is advisable.
For overseas buyers in particular, this can be invaluable. You may be purchasing a property you have only visited once or twice, and you might not be around to oversee repairs or investigate problems before completion. We would much rather a client discovers a significant issue before committing to the purchase than discovers it a few weeks after moving in.
What if the survey identifies a problem?
This is where things can become interesting from a negotiation perspective.
If the survey identifies a significant issue, you can discuss the findings with your surveyor and lawyer and decide how you want to proceed.
Depending on the circumstances, you might ask the seller to arrange repairs, request a reduction in the purchase price, seek further specialist advice or decide that the property is no longer right for you. However, it is important to understand that a survey finding does not automatically entitle you to a lower price. Unless your contractual arrangements provide otherwise, the seller is not obliged to agree to a reduction simply because you have identified a problem.
You can ask, explain your reasoning and see whether a compromise can be reached. The seller may agree, make a counterproposal or refuse. If you cannot reach an agreement, you may decide to walk away, subject to the terms of any agreement already signed and the advice of your lawyer. That is precisely why understanding the property's condition before progressing too far is so important.
7. Meanwhile, your lawyer is carrying out due diligence
While the survey is being arranged, your lawyer will be working through the legal side of the transaction.
This is one of the most important stages of buying property in Portugal. A property can look perfect, be priced attractively and have an enthusiastic seller, but you still need to establish that the legal and planning position is satisfactory.
Your lawyer will request the relevant documentation from the seller's lawyer and carry out the necessary checks. Depending on the property and the circumstances, this may include reviewing:
The land and property registration records, including ownership and any registered charges or encumbrances.
The property's tax registration and relevant property details.
Planning and licensing documentation, including the applicable municipal records and the property's authorised use.
The energy performance certificate, where required.
Other relevant documents, permissions or certificates depending on the property's history and circumstances.
The exact documents and checks required can vary. For example, a rural property, a newly built home and an older apartment may each present different issues to investigate.
Your lawyer's role is to establish whether the property can be purchased on the proposed terms and to identify any legal issues that need to be resolved or understood before you commit further.
This is also where potential discrepancies between the property's actual condition, its registration details and its planning documentation may come to light. Don't be tempted to skip or rush this stage simply because you're excited to secure the property. Legal due diligence is there to protect your interests, and it should be completed to your lawyer's satisfaction before you proceed in accordance with their advice.
8. Buying with a mortgage? The bank valuation is another important step
If you're purchasing with a mortgage, your lender will also need to assess the property.
Your mortgage broker or bank will explain which documents are required and arrange for a bank valuation as part of the lending process. The lender will use the valuation, alongside its other lending criteria, when deciding how much it is prepared to lend.
It is important to understand that a bank valuation and a technical survey are not the same thing.
A bank valuation is primarily concerned with the property's value for lending purposes. It is not a substitute for a detailed inspection of the property's physical condition.
A technical survey, on the other hand, focuses on the condition of the building within the scope of the surveyor's instructions. For this reason, we recommend treating them as two separate steps rather than assuming that one replaces the other.
What if the bank valuation is lower than the agreed price?
Let's say you've agreed to buy a property for €500,000, but the bank values it at €450,000.
Depending on the mortgage terms, the lender may calculate its loan against the lower valuation rather than the price you've agreed to pay. This could mean you need to contribute more of your own money to complete the purchase.
At that point, you need to understand your options.
You might decide that you're comfortable covering the difference. Alternatively, you could approach the seller to see whether they would consider reducing the price to reflect the valuation.
As with survey findings, though, there is no automatic right to renegotiate. The seller may be willing to reconsider the price, or they may stand by the original agreement.
Your mortgage broker can explain the financing implications, and your lawyer can advise on your contractual position and any relevant conditions. This is one reason why it is so important to understand your budget and financing options before making an offer, rather than simply assuming the bank will lend the amount you need.
9. Can you renegotiate after your offer has been accepted?
Yes, you can ask. But there is an important distinction between being able to ask for a different price and having the right to insist on one.
If a technical survey reveals substantial defects, the bank valuation comes in significantly below the agreed price, or legal due diligence identifies an issue that affects the property, you may have a reasonable basis for revisiting the negotiations.
Your request is likely to be more constructive if you can explain precisely what has changed or what new information has come to light.
For example, asking for a €20,000 reduction simply because you'd prefer to pay less is a very different conversation from explaining that a survey has identified a substantial roof repair that wasn't apparent during the viewing. Neither situation obliges the seller to agree, but evidence gives both parties something concrete to discuss.
It is also worth remembering that negotiations and contractual commitments are not the same thing. If you have already signed a CPCV, your options may be more limited and will depend on the contract and the circumstances. Before making a decision to withdraw or seek a change to the agreed terms, speak to your lawyer.
And if you decide the property is no longer right for you, walking away may be the sensible choice. Just make sure you understand the legal and financial consequences before doing so, particularly if a CPCV has already been signed or a deposit has been paid. We never recommend our clients to sign CPCV until they have the surveyor report back, and if applicable, their bank valuation.
The right property is important, but so is making a purchase that you feel comfortable with.
10. Negotiating the CPCV: Deposit, timescales and conditions
While the survey, legal checks and mortgage valuation are progressing, your lawyer will generally also be preparing and negotiating the Contrato-Promessa de Compra e Venda, commonly known as the CPCV.
This is the promissory contract, which sets out the terms under which the buyer and seller commit to completing the property transaction. It is an important legal document, so it should be prepared or reviewed by your lawyer before you sign it.
The CPCV will typically cover the agreed purchase price, the deposit, the anticipated completion arrangements and the obligations of both parties. It should also address any relevant conditions and the consequences of failing to fulfil the contractual commitments.
How much deposit should you expect to pay?
A deposit of around 10% of the purchase price is common in Portuguese property transactions, but it is not a fixed legal requirement for every purchase. The amount is negotiable and depends on what the parties agree. Deposits can be higher or lower depending on the circumstances, so don't assume that every transaction will follow the same pattern. Your lawyer should explain the proposed deposit amount and, crucially, what happens if either party fails to fulfil their obligations.
Under the usual Portuguese CPCV deposit rules, where the relevant legal requirements apply, a buyer who is at fault for failing to complete may risk losing the deposit. If the seller is at fault, the buyer may generally be entitled to claim double the deposit received. However, the outcome depends on the applicable law, the contractual terms and the facts of the case, so you should never rely on a general rule without obtaining legal advice.
This is not money to commit lightly. Make sure you understand the contract and are comfortable with the risks before signing and transferring your deposit.
When will completion take place?
Another important point to agree is the anticipated completion date. You might hear people say that completion normally takes place within 30 days, but there is no universal 30-day rule that applies to every transaction. Some purchases move quickly. Others take longer because of mortgage arrangements, outstanding documentation, legal issues, the seller's circumstances or the practicalities of coordinating everyone involved.
We have also seen how a seller's personal circumstances can influence the terms they are prepared to accept. For example, someone who needs to relocate quickly because of work or a family situation may be willing to consider a lower offer if the buyer can commit to a fast transaction. However, that seller may also want a larger deposit or a shorter period between signing the CPCV and completing the sale.
Another seller may be in no particular hurry and prefer a higher purchase price, even if it means waiting longer for the right buyer. There are also sellers who have owned a property for many years and are more flexible on the overall deal if they can agree on the furniture and fittings separately, within a reasonable and properly documented arrangement.
These are examples, not guarantees. Every seller has their own priorities, and a buyer's circumstances will influence what is possible too. The important thing is to agree realistic terms that work for both parties and ensure that they are properly reflected in the CPCV.
In cases of purchasing on a new development, there is often no scope for negotiation of the terms, or timeframes. These are usually standardised and unflexible.
11. There is no one-size-fits-all approach to buying property in the Algarve
If there is one thing we want you to take away from this article, it is this: every property transaction is different.
Again, there is no guaranteed 10% reduction from the asking price. There is no universal 10% CPCV deposit. And there is no rule that every property must complete within 30 days.
Some properties, particularly those within established resorts or managed developments, can be less flexible on price. The seller may have a clear expectation of what their property is worth, and demand for similar homes may support that position.
Other sellers may have more flexibility, depending on how long the property has been on the market, their personal circumstances and their priorities.
A seller who needs to move quickly may be prepared to consider a 'cheeky offer', provided the buyer can also accommodate a faster completion and a larger deposit. Someone who has owned a property for years might be more flexible on the overall arrangement, including furniture, rather than simply reducing the headline price.
And sometimes, despite everyone's best efforts, the numbers just don't work.
This is why we believe good negotiation is about far more than simply trying to secure the biggest possible discount. It is about understanding the property, the market, the seller's position and your own priorities, then finding a deal that makes sense.
It is also why having someone on your side who understands the local market can be so valuable.
At The Buyer's Agent Algarve, we help our clients look beyond the asking price, put forward offers with a clear rationale and navigate the process from the initial negotiations through to the legal and practical steps that follow. We want you to feel informed, supported and confident in the decisions you're making, rather than feeling pressured into a purchase or left wondering what happens next.
We're here to help!
Finding the right property is only part of the journey. Understanding how to negotiate, what to agree with the seller and what happens after your offer is accepted can make a real difference to your buying experience.
If you have already found the property you love and are about to put an offer forward, then we really hope that this article has been helpful to you! If you're planning to buy in the Algarve and would like a friendly, no-pressure chat about our services, we'd love to hear from you.
The Buyer's Agent Algarve is an independent, buyer-only service. We don't have our own properties to sell, and our service is fee-free for buyers. Our focus is on helping you find the right property for you and supporting you through the buying process, without pressure.
Get in touch with The Buyer's Agent Algarve to arrange your fee-free chat and take the next step towards finding your place in the sun.
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