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Buying a property in Greece is a dream for many Bulgarians, but before you dive into the Mediterranean idyll, it is important to decide how you will make your property purchase. Should you search for properties by owner in Greece or trust professional real estate agencies? Both approaches have their pros and cons, and the choice depends on your experience, language skills and risk tolerance. This article will give you basic tips for the dealand help you decide which route is better for you.
Purchase of property by owner (ιδιώτης – idiotes)
Buying directly from an owner may seem like a better option as it removes the agency commission.
Advantages:
- Potentially lower price: the main attraction is the ability to avoid paying estate agent commission, which is typically 2% – 3% + VAT for the buyer. This can save a significant amount.
- Direct communication: you can communicate directly with the owner, which can potentially facilitate negotiations and give you a better insight into the history and condition of the property.
- More flexibility: the owner can be more flexible on price and terms if there are no commitments to an agency.
Disadvantages and risks:
- Lack of market knowledge: the owner may not have an up-to-date idea of market prices, which can lead to overpricing or, conversely, missing out on better properties you don’t know about.
- Lack of legal protection and transparency: this is the biggest risk. The owner is not obliged to inform you of any legal, technical or financial problems of the property (e.g. illegal extensions, encumbrances, unpaid taxes, litigation). You have no intermediary to guarantee transparency or to be professionally liable.
- Increased risk of fraud: without a professional intermediary and lawyer, the risk of falling for a dishonest seller or a property with unsettled documents is significantly higher.
- Bureaucratic difficulties: the process of buying a property in Greece involves specific steps(AFM, bank account, taxes, notary, engineer, Cadastre registration). If you are not familiar with these, navigating them can be extremely complicated and time consuming.
- Language barrier: If you don’t speak Greek, communication can be a challenge.
- Lack of after-sales support: Agencies often help with utility subscriptions, permits and more after the purchase. The owner has no such obligation.
Purchase of property through a real estate agency (Μεσιτικό Γραφείο – Mesitiko Grafeio)
Working with a licensed real estate agency is the most common and recommended approach for foreign buyers in Greece.
Advantages:
- Expert market knowledge: agencies have up-to-date information on market prices, supply and demand in different areas. They can guide you to the best investment opportunities according to your criteria.
- Access to a wider range of properties: agencies have access to a large database of properties, including those that are not publicly advertised and those that meet all legal requirements.
- Facilitated negotiations: an experienced agent can negotiate on your behalf, often resulting in better price and terms.
- Coordination of the process: the Agency will coordinate all stages of the transaction, including liaising with the lawyer, notary, engineer, banker and other parties.
- Language support: many real estate agencies working with foreign clients have English-speaking staff and some have Bulgarian-speaking staff.
- Risk mitigation: licensed agents have legal obligations and professional liability. They are obliged to provide you with correct information (to the best of their knowledge) and to assist you.
- After-sales service: some agencies offer additional services after the purchase, such as assistance with utility subscriptions, payment of annual fees or even property management.
Disadvantages:
- Commission: the main disadvantage is the payment of commission, which is usually 2% – 3% of the purchase price + VAT for the buyer.
- Potential for bias: the agency has an interest in getting a deal done that may influence their advice. Therefore, it is extremely important to choose a reliable agency and have your own independent counsel.
- Control: you may feel that you have less direct control over the process, as the agent acts as an intermediary.
What to choose: basic tips for a deal in Greece
For a foreigner buying a property in Greece, especially if they do not speak Greek and are not familiar with the local legislation, working with a licensed real estate agency combined with the mandatory hiring of an independent lawyer is the most sensible and safe approach.
- Always hire an independent lawyer: this is the MOST IMPORTANT advice. Whether you buy from an owner or through an agency, your own lawyer (Greek, licensed) is the one who will do a thorough legal inspection of the property, check for encumbrances, illegal additions and protect your interests. This is a mandatory investment for your security.
- About “Properties by owner in Greece”:
- If you are an experienced buyer, speak Greek and are willing to take more risk, you can try looking directly from an owner.
- However, even then, be sure to hire an attorney and civil engineer for a complete inspection of the property.
- Be prepared to manage the process of document collection, negotiation and communication with all parties yourself.
- About “Real Estate Agencies”:
- For most foreign buyers, this is the safer, more convenient and efficient route.
- Choose a reputable agency that is licensed and has experience with foreigners. Look for recommendations.
- Make sure the agent is transparent about all fees and processes.
- Look for agencies that offer comprehensive services (from search to after-sales support).
- Be vigilant: Regardless of the choice, always be vigilant. Don’t sign anything until it has been reviewed by your attorney and you fully understand it. Do not pay large sums of cash.
Conclusion
Choosing between owner-occupied and estate agency properties when buying a property in Greece is a matter of compromise between potential cost savings and level of security/convenience. To ensure a smooth and safe transaction, especially as a foreigner, working with a licensed estate agent combined with the mandatory assistance of an independent Greek lawyer and civil engineer is the most prudent and recommended approach. Your investment deserves to be protected and your peace of mind is priceless.
This post is also available in: Български