Independent valuation before choosing an estate agent in Portugal: how to compare the figures

An independent valuation before you choose an estate agent gives you a reference figure that is not tied to any sales contract. If you have asked several agencies what your property is worth and received different prices, this reference helps you see which one sits closest to the market.

Gaps like these are common. Each professional picks their own comparable properties. For an agency, valuing your property is also a way of winning the listing. With a neutral figure in hand, you can ask each agency to explain how it reached its number. You can then choose the agent for the service it offers, not for the highest price.

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An independent valuation before choosing an estate agent: why the figures differ

When three estate agencies visit the same property in the same week, getting three different figures is normal. It does not mean any of them is acting in bad faith. Each one works with the data it has, its own reading of the neighbourhood and also the aim of winning the sale.

The valuation is part of winning the instruction

For an agency, valuing your property is also a way of securing the contrato de mediação (the agency agreement with the seller). The figure it suggests is an estimate, but it is also a sales argument aimed at the owner. A higher figure can please the owner even when the market does not support it.

A high figure can also have a sound reason behind it. The agency may have buyers looking for a property like yours, for example, or know the latest sales in the building well. Ask the agent to back the figure with specific cases. If no explanation comes, treat that figure as a hypothesis rather than a price.

The risk of an inflated asking price

A property listed above the market tends to sit unsold. People house-hunting in an area follow the listings for months and notice when a property stays on sale for a long time. The price often drops later, once the listing has gone stale. By then, buyers assume something is wrong with the property and negotiate harder.

Then there is the buyer's mortgage. Most buyers need a home loan, and the bank carries out its own valuation before lending. If the agreed price is well above that valuation, the buyer has to cover the gap from their own funds, or the deal falls through. To understand how the two kinds of valuation differ, see the guide Bank valuation or market study.

Different methods

Each professional picks their own comparable properties and their own adjustments. Without seeing the method, it is hard to tell why the numbers differ. The gap often comes from these points:

• The properties used for comparison: a two-bedroom flat in the same building does not carry the same weight as a renovated two-bedroom flat in another parish (freguesia).
• Where the prices come from: asking prices in listings or prices from completed sales.
• How the property's condition, floor, lift, garage, sun exposure and energy efficiency are counted.
• The state of the paperwork, for instance an enclosed balcony or a loft conversion without a licence, which some buyers and banks will not accept until it is regularised.
• How recent the data is: in a neighbourhood where prices move quickly, old references give an out-of-date figure.

A reference with no sales agreement attached

The Tagus Value valuation does not depend on you handing us the sale. It draws on market data for the area, sales and listings, INE statistics and the views of advisers, taking your property's features into account. It gives you a reference for comparing the valuations you have received.

You can see how we work on the methodology page and in an example report. To understand what drives the value of a property in Portugal, read How much is my house worth? as well. With this information in front of you, you can discuss the differences with each agency and choose one for the service it offers, not for the highest number.

How to use an independent valuation before choosing an estate agent

Holding several valuations only helps if you know where each figure comes from. The aim is not to find out who is "right". It is to understand each agent's reasoning, so you can then decide calmly who to trust with the sale.

Questions to ask each agency

Ask each agency to explain the method behind its figure. A serious professional answers these questions without difficulty and will often show you the properties they used.

• Which comparable properties did you use, and how far are they from my property?
• Are they similar to mine in floor area, number of bedrooms and condition?
• Did you start from asking prices in listings or from prices of completed sales?
• What adjustments did you make, and why: floor level, lift, garage, sun exposure, work still to be done?
• What do you suggest if the property gets no viewings or offers after a while?

The gap between asking price and selling price matters a great deal. A listing shows what the seller hopes for, not what a buyer actually paid. A valuation built only on listings tends to land above the market, even when nobody intended it.

When one figure sits well above the rest

Be wary of a figure well above the others that arrives with no explanation. Bad faith is not always the cause. It may be overconfidence, poorly chosen comparables or a wish to win the instruction, a risk that exists in the trade without being the rule.

A high listing price does not raise the value of your property. It only delays the moment the market gives its answer. Picture a two-bedroom flat with two valuations close together and a third well above them. Before signing on the strength of that higher figure, ask for the comparables behind it and check that they really resemble your property.

You can also run your own check. Look at listings for similar properties in the same area and notice the ones that have been on sale for a long time: price is often the reason. The price checker helps you place a figure in context, and INE (Statistics Portugal) publishes statistics on housing sale prices by municipality and parish (freguesia).

A reference that does not depend on the contract

With an independent valuation and its method explained, you have a fixed point. From there, you can choose the agency for the service it offers rather than for the highest number.

The Tagus Value market study draws on market data, sales and listings, INE statistics and the views of advisers, taking your property's features into account. You can look at a sample report and the methodology before ordering yours. If the different types of valuation are unclear, the guide Bank valuation or market study explains the differences.

Comparing agencies on the work they offer

Once the price is clear, what sets agencies apart is the work they propose. Compare their proposals point by point, ideally in writing.

• How they will market the property: professional photos, floor plan, virtual tour, and where it will be advertised.
• Who will accompany viewings and how often you will hear from them.
• Whether the contract is exclusive or not, and on what terms you can end it.
• Who will help gather the documents for the CPCV (contrato-promessa de compra e venda, the promissory contract of sale) and for the escritura (the public deed of sale).
• How they will screen interested buyers and present offers.

To get your paperwork ready, see the list of documents for selling a property. And when the first offer comes in, the page I've received an offer on my property will help you weigh it up.

Steps to an independent valuation before choosing an estate agent

The usual process has four stages. You ask the agents for a value, get an independent reference, compare the figures, and only then choose. The order matters: when you reach the decision, the numbers have already been explained.

1. Ask each agent for a value and how they reached it

Invite two or three agents to visit the property and ask each one for a written value, with the method behind it. A figure mentioned in passing during a visit cannot be weighed against one backed by comparable properties.

Give every agent the same information: floor area, condition, work carried out, documents. If one knows about the renovated kitchen and another doesn't, their values are no longer comparable.

2. Get an independent valuation based on comparable local properties

An independent reference is not tied to winning the listing. The Tagus Value market study starts from local market data and the features of your property, and it does not depend on you handing over the sale. You can look at a sample report first to see what you will receive.

It is an opinion of market value. It does not replace the valuation the buyer's bank will order, nor one by a perito avaliador (valuer) registered with the CMVM. To understand the difference, read the guide Bank valuation or market study.

3. Compare the figures and ask about the gaps

Put the agents' values side by side with the independent reference. Small differences are normal, because each professional picks their own comparables. A value far from the others deserves a conversation.

A few questions for the agent whose figure stands furthest apart:

• Which properties did you use for comparison, and were they sold or only advertised?
• What differences do you see between those properties and mine, and how much do they affect the value?
• If there are no viewings in the first few weeks, what would you suggest doing about the price?
• The other values I received are lower: what explains the difference?

A clear answer, with examples of sales nearby, is a good sign, even when the figure is high. If nobody can explain the gap, the number says little about the price the property will actually sell for.

4. Choose the agent for their service, contract terms and trust

With the price already discussed, compare what each agent will actually do. Think about the photos and the listing description, how viewings are handled and how often you will hear from them. Help with the documents needed to sell counts too, as does preparing the CPCV (contrato-promessa de compra e venda, the promissory sale contract).

Read the contrato de mediação (agency agreement) before signing. Check whether it is exclusive or not, how long it lasts, how it renews and how it can be ended. The cost of the service is part of the sale budget: the guide How much does it cost to sell a house in Portugal helps you work out what you will be left with.

Also check that the firm holds an estate agency licence. The activity requires a licence issued by IMPIC, the public body that regulates the sector.

What to look at beyond the proposed value

Two estate agencies can reach similar values and work in very different ways. Before you sign, look at what each one will actually do to sell your property, not just the figure written on the proposal.

How the agency backs up its price

A careful valuation starts with a visit. The consultant walks through every room and asks what work has been done, and when. They also note the condition of the kitchen and bathrooms, how much sun the property gets and how noisy the street is.

They should also ask about the condominium (the building's owners' association): the monthly fee, any works approved at the owners' meeting, the state of the façade or the lift. A figure given over the phone, without anyone setting foot in the property, cannot take any of this into account.

The marketing plan, in practical terms

Ask them to explain how your property will be presented. Find out who takes the photographs and whether the rooms are prepared beforehand, with good lighting and tidied spaces. Ask who writes the description too, and whether you can read it before it goes live.

• Who carries out the viewings, and whether buyers are always accompanied or the keys are handed to third parties.
• Whether the buyer's financing is checked before a viewing is booked.
• How often you will hear back: viewings held, feedback received, offers made.
• Who supports the buyer after an offer: mortgage approval, the CPCV (promissory contract of sale) and booking the escritura (the final deed of sale).

The stretch between the offer and the escritura is often the one that drags on longest. An agency that follows the process through to the end saves you a great deal of back and forth with the bank, the notary and the buyer.

The agency contract, read without hurry

The estate agency contract (contrato de mediação imobiliária) must be made in writing. Where it is exclusive, the contract has to state what that exclusivity means for both the agency and the owner. The rules are set out in Law no. 15/2013, in the Diário da República.

Ask for a copy and read it at home before signing. Check at least the following points:

• Whether the contract is exclusive or not, and what that means in practice, for example if a relative or a neighbour wants to buy from you directly.
• How long the contract lasts and whether it renews automatically.
• How you can end it and how much notice you need to give.
• Which services are included, written into the contract itself rather than just promised at the meeting.

A high listing price does not make up for a long contract that is hard to get out of. If the property does not sell at that price, you remain tied to the same agency with no way of switching.

Help with the paperwork

A sale is often held up by a missing document rather than a lack of buyers. Ask who will request the caderneta predial (the property's tax record, issued by the Tax Authority) and the certidão permanente (the land registry certificate). Ask too who will check that the areas and description match the property as it really is.

An enclosed balcony without a licence, or a room that does not appear on the documents, is far better discovered before the listing than on the eve of the escritura. You can get ahead with the list of documents needed to sell.

Willingness to review the price

Ask at the outset how progress on the sale will be reviewed. A good agency agrees a point with you to look at the viewings, the feedback and the offers, and to decide together what to do next.

If several viewers say the same thing, for instance that the kitchen needs work or that similar homes on the same street are cheaper, the price should be discussed. An agency that passes on these reactions frankly helps you more than one that holds the price without explanation. If your property has been on the market for months with no offers, see what to do when your property isn't selling.

Frequently asked questions about getting an independent valuation before choosing an estate agent