How to find and work with a Czech real estate agent
Koutris Efstratios, Monday, 27 January 2014
This article is part of a series of 8 articles about buying property in the Czech Republic. The other articles in the series cover the following topics:
Introduction
The proliferation of services which allow prospective financial investors to complete real estate transactions, on their own, is fairly recent. Initiating and finalizing such a procedure implies a good knowledge of the market, an excellent understanding of the respective national laws, and, of course, a clear comprehension of the steps that need to be followed. Otherwise, the whole process of purchasing property can turn out to be a dreadful decision. Therefore, in most cases, individuals are bound to appoint a real estate agent. In general, and regardless of the current worldwide recession in the property market, real estate agents still continue to play an extremely essential and primary role. These professionals act as a go- between for business transactions that involve buying or selling a property, and they operate as a secure bond between both sellers and prospective investors. Furthermore, they can legally finalize real estate purchases while at the same time ensuring that there will not be any potential breaches or informalities.
The Role of the Real Estate Agent
Most real estate agents and agencies deal with residential properties such as houses. However, there are plenty of firms that mainly focus on other types of properties that are used mainly in terms to provide profit to the investors, such as hotels, shopping malls, offices etc. In both cases, real estate agents act on behalf of their clients, for a nominal fee of course, which in the Czech Republic usually ranges from 3 – 5 % of the purchase price.
There are several reasons why individuals should appoint an agent for a prospective property transaction. The primary reason is access. Real estate agents have easy access to most properties that are ‘for sale’, and therefore, they can recommend several alternatives that can accommodate and satisfy their clients’ needs and criteria. They can track down potentially interesting properties, they can get in contact with other agents that are activated in the market, make all necessary steps to arrange respective appointments etc. It is very important to remember that it is their profession to keep a keen eye on the market trends and the respective regulations; thus, they can provide key tips and advice on where to buy property and how to render this investment as profitable. Furthermore, agents can handle the offer to purchase contract in order to protect their clients. Consider the case where the buyer applies for a mortgage, after signing the property purchase, and the bank refuses to finance. In that case, and without this contract, the buyer would not only lose the property, but also could be sued by the seller for not fulfilling his end of the contract.
On the other hand, the task of selling a property on your own, unless you have already found a buyer beforehand, is extremely time-consuming. One can easily imagine the difficulties in trying to reply to any potential requests made via phone, mail, on time, or making appointments with prospective buyers, etc. Therefore, when it comes to selling a property, the role of the real estate agent becomes more distinct and…needful. Once a real estate agent is appointed then he/she will commence a marketing campaign to attract and find the appropriate buyers. Moreover, the agent will be responsible for arranging appointments for buyers to see the property and, in general, they will deal with all small details that revolve around this lengthy process. Furthermore, it should also be noted that real estate agents can act as responsible fund managers for their respective clients.
Choosing the right agent
The act of choosing the right agent will save you time, effort, and money. In general, there is no big secret with respect to ‘which real estate agent I should choose’. However, one of the things that need to be mentioned is that, according to the Czech Law, anyone can become an agent because there is no need for accreditation or certification. Individuals need to simply purchase a license (which costs about 1000 CZK or 40 euros. Therefore, there can be a significant amount of real estate agents who might not be adequate or qualified enough in order to sufficiently guide and aid their clients. This implies that prospective real estate investors should be extremely careful and cautious when appointing an agent.
Nevertheless, and since buying or selling a property is a great financial and emotional decision, the individual needs to take into consideration several things in order to choose the appropriate agent. First of all, good agents are identified by good references; therefore, agents should in most cases be selected by family or friends recommendations. In case this is not feasible, internet or/and newspaper ads are a reliable alternative. Once you locate the agent of your choice, you should ask him/her some ‘tough’ or/and specific questions and inquiries to test their knowledge. Always remember that a lot of money is at stake, hence you should always be vigilant and inquisitive about the respective deals, and, above all, keep in mind that you need to hire an agent who will work for your best interest and not for his/her agency. The respective fees (commission) to real estate agents are substantial, thus there are good chances that they will try to sell you just anything. Moreover, it needs to be said that most agents have a team of assistants to help them; therefore, try and speak directly with the agent him/herself and not with the assistants. In general, try your best to find someone you can trust; someone who is a professional in his/her work and is able to understand your respective needs and criteria.
This article is part of a series of 8 articles about buying property in the Czech Republic. The other articles in the series cover the following topics:
Introduction
The proliferation of services which allow prospective financial investors to complete real estate transactions, on their own, is fairly recent. Initiating and finalizing such a procedure implies a good knowledge of the market, an excellent understanding of the respective national laws, and, of course, a clear comprehension of the steps that need to be followed. Otherwise, the whole process of purchasing property can turn out to be a dreadful decision. Therefore, in most cases, individuals are bound to appoint a real estate agent. In general, and regardless of the current worldwide recession in the property market, real estate agents still continue to play an extremely essential and primary role. These professionals act as a go- between for business transactions that involve buying or selling a property, and they operate as a secure bond between both sellers and prospective investors. Furthermore, they can legally finalize real estate purchases while at the same time ensuring that there will not be any potential breaches or informalities.
The Role of the Real Estate Agent
Most real estate agents and agencies deal with residential properties such as houses. However, there are plenty of firms that mainly focus on other types of properties that are used mainly in terms to provide profit to the investors, such as hotels, shopping malls, offices etc. In both cases, real estate agents act on behalf of their clients, for a nominal fee of course, which in the Czech Republic usually ranges from 3 – 5 % of the purchase price.
There are several reasons why individuals should appoint an agent for a prospective property transaction. The primary reason is access. Real estate agents have easy access to most properties that are ‘for sale’, and therefore, they can recommend several alternatives that can accommodate and satisfy their clients’ needs and criteria. They can track down potentially interesting properties, they can get in contact with other agents that are activated in the market, make all necessary steps to arrange respective appointments etc. It is very important to remember that it is their profession to keep a keen eye on the market trends and the respective regulations; thus, they can provide key tips and advice on where to buy property and how to render this investment as profitable. Furthermore, agents can handle the offer to purchase contract in order to protect their clients. Consider the case where the buyer applies for a mortgage, after signing the property purchase, and the bank refuses to finance. In that case, and without this contract, the buyer would not only lose the property, but also could be sued by the seller for not fulfilling his end of the contract.
On the other hand, the task of selling a property on your own, unless you have already found a buyer beforehand, is extremely time-consuming. One can easily imagine the difficulties in trying to reply to any potential requests made via phone, mail, on time, or making appointments with prospective buyers, etc. Therefore, when it comes to selling a property, the role of the real estate agent becomes more distinct and…needful. Once a real estate agent is appointed then he/she will commence a marketing campaign to attract and find the appropriate buyers. Moreover, the agent will be responsible for arranging appointments for buyers to see the property and, in general, they will deal with all small details that revolve around this lengthy process. Furthermore, it should also be noted that real estate agents can act as responsible fund managers for their respective clients.
Choosing the right agent
The act of choosing the right agent will save you time, effort, and money. In general, there is no big secret with respect to ‘which real estate agent I should choose’. However, one of the things that need to be mentioned is that, according to the Czech Law, anyone can become an agent because there is no need for accreditation or certification. Individuals need to simply purchase a license (which costs about 1000 CZK or 40 euros. Therefore, there can be a significant amount of real estate agents who might not be adequate or qualified enough in order to sufficiently guide and aid their clients. This implies that prospective real estate investors should be extremely careful and cautious when appointing an agent.
Nevertheless, and since buying or selling a property is a great financial and emotional decision, the individual needs to take into consideration several things in order to choose the appropriate agent. First of all, good agents are identified by good references; therefore, agents should in most cases be selected by family or friends recommendations. In case this is not feasible, internet or/and newspaper ads are a reliable alternative. Once you locate the agent of your choice, you should ask him/her some ‘tough’ or/and specific questions and inquiries to test their knowledge. Always remember that a lot of money is at stake, hence you should always be vigilant and inquisitive about the respective deals, and, above all, keep in mind that you need to hire an agent who will work for your best interest and not for his/her agency. The respective fees (commission) to real estate agents are substantial, thus there are good chances that they will try to sell you just anything. Moreover, it needs to be said that most agents have a team of assistants to help them; therefore, try and speak directly with the agent him/herself and not with the assistants. In general, try your best to find someone you can trust; someone who is a professional in his/her work and is able to understand your respective needs and criteria.
All types of property for sale in the Czech Republic by private sellers and estate agents. Find your perfect house or apartment in Bohemia, Moravia, Prague, Hradec Kralove, Ostrava or Plzen.
This article effectively describes in a brief, yet punctual way the reasons why a prospective buyer should primarily select the Czech Republic in order
to invest on real estates. The arguments supported within this article prove that the Czech Republic is an extremely attractive region for such
investments, while at the same time we will focus on the areas that are popular with foreigners and are cheap, yet very interesting and lucrative.
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