There is nothing fair about determining fair market value when buying property abroad. It takes a fair amount of research to determine what is fair and what isn’t.

Article written by The Overseas Guides Company

As a foreigner, you are behind the eight ball in terms of your knowledge of the local economy, property pricing and buying trends, so to avoid paying too much, get your research cap on and arm yourself with knowledge.

here are a number of things you can do to get a good idea of what properties are worth in a particular area. Consider the following:

  • Compare similar listings: the Rightmove Overseas website has thousands of property listings around the world, so you should find a number of similar properties in your target location to compare. Examine them in detail to determine why some attract higher prices than others.

  • Location: it is the same abroad as it is in the UK – better locations will attract higher prices. Whether that location is close to a beach or river, in the centre of town or close to local tourist attractions will all increase value. Similarly, your bargain property may only be a bargain because it is situated on a floodplain, close to factories, next door to a power plant and so on.

  • Inspections: Always try to visit the property in-person before buying. This way, you can gauge the desirability of its location, any undesirable points such as flight paths or heavy traffic, appreciate the size and standard of the property’s rooms and determine the actual walking distance to local amenities.

  • Talk to different agents: discussing the recent performance of the local market with a number of local estate agents will give you a rough picture of the state of the local property market. Are prices moving up, down or remaining steady? What have they sold recently and for how much? Are the majority of their buyers locals or foreigners? What type of properties in the area are the most sought-after? These are some of the questions estate agents will be able to answer.

  • Read local press: Local news outlets will be a good source for determining the health of the local property market and local economy, such as the length of time to sell property, where rents are heading, what local employment is like, how retailers in the area are faring – points that will give you a broader picture about the demand for property in the area which determines how much people are willing to pay.

  • National statistics: It can be useful to have an idea of the national economy as a whole, in terms of property sale and asking prices and average length of time on market. These should be readily available for free from the central government’s statistics and research organisation (like the UK’s Office for National Statistics). You can then compare your local knowledge to see where the area sits in relation to the national average.

By getting yourself a rough idea of where property prices are sitting in your target destination, you will be able to negotiate harder, avoid paying too much and possibly even bag a real bargain!

You can find details of properties for sale abroad via the listings on Rightmove Overseas. Wherever you buy abroad, using currency exchange specialist Smart Currency Exchange to make currency transfers could save you considerable amounts of money thanks to their exchange rates typically being 2-4 per cent better than banks. You can find out more by downloading Smart Currency Exchange’s free guide or visiting our Currency Zone.

The views and comments herein are those of the author and do not necessarily reflect the views or opinions of Rightmove Overseas, Rightmove Group Ltd or Rightmove Plc