You have a property that’s occupied —either by squatters or by a tenant who stopped paying and won’t leave— and you’re considering what was unthinkable a few years ago: selling an occupied home is legal and there’s a market for it. The bad news: it sells at a significant discount. Here are the real options, with their numbers and timelines.
First, name your situation
It’s not the same to have a forced entry (they enter your main or second residence in use: the police can act immediately), as an usurpation (they occupy an empty property: criminal or civil route, slower), as tenant-occupation (a tenant with a contract who stops paying: eviction for non-payment, which isn’t even legally “squatting”). Each scenario has its own procedure and timelines, and affects the sale price differently.
Option A: evict first, sell later (the most profitable)
This is the slow route but the one that preserves value: an unoccupied property is worth full market price; an occupied one is not. Procedures have been sped up in recent years, but we’re still talking many months. In the meantime: do not cut utilities or change locks yourself (it can be used against you as coercion), document everything and act quickly — the sooner you report and file a claim, the stronger your position.
Option B: sell with the occupation in place
There is a market of investors who buy occupied properties and take on the eviction process themselves. Typical discounts range from 20% to 50% of market value depending on the type of occupation, how far the process has advanced and the location. The more advanced the eviction is (claim accepted, eviction date set), the smaller the discount: that’s why it almost always pays to start the procedure even if you plan to sell.
Option C: the negotiated exit
Uncomfortable but often the fastest and cheapest: negotiate a voluntary exit (so-called key compensation). Before discarding it on principle, compare it with months of payments, property tax, deterioration and lawyer fees. Done in writing and with advice, it can unblock a full-value sale in weeks.
The numbers you should put on a spreadsheet
Market value of the vacant property (with a real market valuation), estimated offer if occupied, monthly cost of waiting (mortgage, property tax, community fees, insurance, deterioration) and a realistic timeline for the procedure. With those four figures, the decision between A, B and C ceases to be emotional.
At Mayrasa we help with the real estate side: valuation in both scenarios, contact with suitable buyers and sale management when the property is vacant; from our real estate advisory we steer you to the appropriate legal professionals. And if your case is still preventable, read our guide on occupation prevention. Tell us your situation and we’ll give you the numbers for each exit.
How much is discounted by type of occupation
The discount isn’t the same in every case: it depends on the legal route available and how quickly the property can be recovered. A guideline:
| Scenario | Legal route | Discount when selling occupied | Indicative timeline |
|---|---|---|---|
| Forced entry (property in use) | Immediate police action | Low: usually recovered before sale | Days or a few weeks |
| Usurpation (empty property) | Criminal or civil | From 20% to 40% | Several months |
| Tenant-occupation (non-paying tenant) | Eviction for non-payment | From 25% to 50% | 8 to 18 months depending on the court |
The rule repeated across all three cases: the more advanced the eviction procedure, the lower the discount the buyer will ask for.
If you sell occupied, don’t give away too much
The occupied-property market is full of buyers who profit from sellers’ lack of knowledge. To avoid giving away money: always start from a valuation of the vacant property, so you know exactly what percentage you are conceding; start the eviction procedure before selling, because each step forward (claim accepted, eviction date set) increases offers; request several offers instead of taking the first; and be wary of anyone who pressures you. A 20% discount with the eviction already underway is very different from a 50% “to get rid of it” on day one.
What to do from today
- Identify your scenario: forced entry, usurpation or tenant non-payment.
- Report or file a claim as soon as possible; the start date marks your position.
- Obtain a valuation in both scenarios: vacant property and occupied property.
- Calculate the monthly cost of waiting (mortgage, property tax, community fees, insurance, deterioration).
- Compare the three exits with those figures in front of you, not in the heat of the moment.
Mistakes that make the problem worse
- Cutting water or electricity or changing locks yourself, which can become a crime of coercion against you.
- Letting months pass without reporting or filing a claim, weakening your case and your price.
- Accepting the first offer from a fund without an appraisal that shows how much you’re losing.
- Not documenting the occupation with photos, dates and communications.
- Agreeing a negotiated exit verbally, without a contract or legal advice.
Frequently asked questions
Is it legal to sell an occupied property?
Yes. You can sell the property even if it’s occupied; the buyer acquires the property with the situation in place and assumes the eviction process. That said, you must inform transparently about the actual condition of the property.
How much do I lose if I sell occupied?
Between 20% and 50% of market value, depending on the type of occupation, the stage of the procedure and the area. The more advanced the eviction is, the lower the discount, so starting the procedure almost always pays even if you plan to sell.
Can I evict the occupants myself?
No by force. Taking the law into your own hands —changing locks, cutting utilities or entering without authorization— can be a crime. The route is always the legal one, and the sooner it’s started the better.
Is key compensation legal?
Yes: it’s a voluntary agreement for the occupant to leave the property in exchange for a sum. Compared with months of procedure, costs and deterioration, it’s often the fastest and cheapest exit. It should always be done in writing and with advice.
