Is it worth buying a flat without an estate agent?
Saving hundreds of thousands on the work of a real estate broker may seem tempting. You can reduce the property price or increase your profit, communicate directly with prospective buyers and complete the purchase agreement using a template from the internet. So why would you need the services of a professional?
Czechs move house twice on average during their lifetime and usually buy property for their own home rather than as an investment. Buying a flat is therefore one of the biggest investments Czechs make in their lives. Such a major, often lifelong commitment calls for appropriate caution and thorough preparation, with nothing left to chance.
Risks of buying a flat without professional assistance
If you are negotiating a purchase directly with the owner and do not involve a professional in the entire transaction, it is very easy to get burnt – especially if you have no experience of property transactions.
It is highly likely that the other party will be a layperson lacking knowledge of the property market, legal expertise to review the purchase agreement and so on. This increases the risk of a serious error occurring somewhere in the process and jeopardising the entire transaction. In the worst case, you could lose both the property and your money.
What are the biggest risks?
When both parties are laypeople, contracts tend to be the riskiest part. It is worth acknowledging that relying on contract templates downloaded from the internet for a transaction worth several million is not particularly wise. You may omit an important condition or simply word part of the agreement incorrectly. At best, this will merely cause delays; at worst, you could lose the property or your money.
What should you not forget when buying a flat?
You will sign several types of agreement throughout the process, in particular:
1. Reservation agreement
In a reservation agreement, it is particularly important to check the terms relating to the reservation fee. A properly drafted agreement will protect you should the transaction fall through, so that you do not lose the reservation fee and avoid the stress of recovering it.
2. Purchase agreement
The purchase agreement must include the seller. If the sellers are a married couple, it is essential to verify that both consent to the sale. It is equally important to define the subject of the transfer and obtain the owner's declaration that the property is free from defects.
It is also important to ensure that you can withdraw from the agreement and to check the level of any penalties. It is advisable to list all potential crisis scenarios under each aspect that you want to protect yourself against.
If, despite all these pitfalls, you decide to sell or buy a property independently, you have our admiration and we hope our advice will help you. Fingers crossed that everything goes well :-).
If you would like to use the services of a quality real estate agency, get in touch. We will be happy to guide you through the entire process.