Choosing A Property Agent

Why is it a good decision to use a property agent? Sophie Elliott from Propertyshowrooms.com, an international online property portal and experts in online marketing for property professionals, says: “It’s extremely important to use an experienced agent; purchasing property whether it’s a home or an investment property is a huge decision and having somebody around who knows the area and can answer any questions you might have makes the entire process more enjoyable (and less stressful).”

A good place to research is property forums and social media, there are lots of these around now and if an agent has done anything negative, you will probably find it on the internet somewhere, likewise if they have done good work you should be able to find it.

Testimonials are another thing you should look for.  However, don’t take too much notice of Testimonials written on agents’ websites, these could be written by anybody, including the agent themselves. Even if they are genuine testimonials, the agent will not add negative testimonials on their own site so you are going to see a really bias view. If you want to see truthful reviews look for independent review websites where the agent can not delete or change the client testimonial and can not add the reviews themselves. One such website is the FreeIndex.

Questions to consider asking the Agent

1. Have you visited the property in person? When was this?
2. Do you have staff on the ground in the country?
3. Can you put me in touch with previous clients?
4. Can you recommend an independent solicitor?
5. What after sales services do you offer? Property Management? Rental Management? Furniture? Resale?
6. Can you arrange viewings? How does this work?
7. What are the yearly charges? What do they cover?
8. How can I furnish the apartment?
9. Is there a building guarantee?
10. Are there different payment plans available? If so, what are they?

TIP: Do not pay a ‘finders fee’ – There are some overseas property agents who charge a ‘finders fee’ or ‘agents fee’ for helping you find the right property, and with all the results you see when you start your initial search online, you could be forgiven for thinking that an agent asking for a finders fee is a worthwhile investment.  However tread carefully. The vast majority of the time, these agents will have access to the exact same properties which other agents have, yet do not charge a fee. Do your research, look to see what properties/developments are available which suit your criteria and you can avoid the need for paying additional fees to agents.

Viewing The Properties And Location…Location…Location

Buying a property in Hurghada, or anywhere for that matter, is a big decision and one that is not just about the property, but also the location and everything that comes with it. It is okay finding your dream property, but if you have not been to actually visit the area you are buying then you may end up being unhappy with where the property is located, which can turn your ‘dream property’ into a decision you grow to regret. Viewing trips are also a great way to actually view the property itself, including anything, which can be easily missed out when people are posting photos and information trying to sell the property.

Liz Rowlinson, Editor of A Place In The Sun, explains the importance of viewing trips perfectly.

“Viewing trips, whether organised through an agent or independently, are an essential part of finding a property abroad, as demonstrated in our TV series. Not only do you need to see the area in which you are buying, and investigate all the transport links, amenities, beaches etc, you need to assess the development or situation of a property, as well as the quality of the home itself. Viewing pictures on an internet site can’t provide all the accurate information that you need to have to make such a big decision, and we all know that photos can be misleading, and omit to include any unfavourable aspects of a property or its situation.  Take your time and use viewing trips to obtain as much information as you can so you can make an informed decision about buying.”

Using An Independent Lawyer

This point can not be stressed enough. Make sure that you have an independent solicitor look into any project which you are seriously considering investing in. This is the single most important decision you will make when buying any property in Hurghada. Using an independent solicitor can save you from losing all of your investment in certain cases.

The Association of International Property Professionals (AIPP) stress this point on their website saying

“No matter what anybody tells you, no matter how easy it all seems and no matter how lovely the agent seems, ALWAYS use an independent lawyer to represent you throughout the purchase of your property overseas… You will need to pay the lawyer a fee – accept that as part of your purchase costs. This is not an area in which to keep costs down.”

When we say using an independent lawyer is the most important part of the buying process in Hurghada or anywhere for that matter, we REALLY mean it, if you take nothing else from this guide, please, please take away the seriousness of accepting free legal services or using a lawyer you haven’t researched.

As with searching for a property or a property agent, word of mouth is always the best recommendation, but if you aren’t lucky enough to have been recommended someone, then forums, social media and internet searches can be very useful. If you want help finding an independent solicitor then consider speaking to the AIPP.

TIP: Do Not Accept Any Free Legal Services! Discounts off some services are fine, but NEVER compromise on independent legal advice.  If you were buying a property in your own country and the seller said don’t worry I will sort the legal papers out for you, would you take their offer? I doubt it! Buying in a foreign country is even more risky. It is well worth spending a few hundred pounds on a good independent lawyer, than saving that few hundred pounds and then losing thousands.

Using a Currency Exchange Company

Okay, so you have done your research and you now know which overseas property agent you want working for you, you picked out a property or properties of interest and you have found yourself an independent solicitor who will assist with your property purchase. To help your money go further when buying a property in Hurghada, you may wish to look at using a currency company, as many developer will sell their properties in different currencies. The most common are Egyptian Pounds, Great British Pounds, Euros and US Dollars.

William Holiday from London based Currency Company, Cornhill FX says

“We offer better rates of exchange than a bank by typically up to 3-4%. That equals an additional £30-£40 on a transfer as low as £1,000 and as much as £3000-£4000 on larger trades of £100,000.”

Although it is not always guaranteed, using a currency company can in many instances help you get more for your money, so it is something worth looking into. Again, it is also important to know that you are working with a company that deliver on their promises and provide a great service at all times, so take the time to research several companies.

TIP: Check which currencies the seller is happy to accept and ask them for a price in each currency. Take these prices to the currency companies which you have researched and find out which currency will work out cheaper for you to buy in. This is a great tactic when paying all monies in one, though be warned, if you are paying for the property in instalments over time, exchange rates can fluctuate so the property could end up costing you more. Seek advice from the professionals but ultimately the choice is yours.