Czechs often succumb to pressure to make a quick decision when buying property. It does not always pay off

Czechs are among the more hesitant, distrustful and relatively conservative nations. Paradoxically, this does not apply to buying flats or houses, where the whole process often takes place far too quickly under pressure of circumstances. The time in which inexperienced buyers proceed to the binding signing of a reservation agreement is at a record low. Experts warn against hasty decisions that may unnecessarily cost you hundreds of thousands.

“Unfortunately, this uncertainty and stress are often fuelled by real estate brokers themselves, whose interest is to sell the property as quickly as possible, without delays or complications. At viewings, they suggestively describe long queues of other interested parties and create time pressure. We advise clients never to sign a reservation agreement at the first viewing. I understand these concerns, but from experience I can clearly confirm that finding another flat is a far smaller problem than buying a flat at an inflated price, with legal or technical defects, or on unfavourable terms. A reservation agreement is binding, and withdrawing from it is by no means easy, even if you later discover objective shortcomings,” explains David Novotný of Bohemian Estates, which provides comprehensive real estate services, from finding and checking a property to managing investment flats and selling them.

“From our experience, we also know cases of people who signed a reservation agreement hastily and soon found out that they would not be granted a mortgage by the bank. Some only realised their mistake a few years later, when they tried to sell the property but were unable to do so for as much as they had paid for it. In effect, they lost hundreds of thousands,” says David Novotný.

Services covering the basic minimum for a safe property purchase are entirely standard in markets across Western Europe and America. They include a legal review of all contracts and documentation by an independent legal expert, as well as an assessment of the property's technical condition. Inexperienced buyers can thus protect themselves against hidden legal or technical defects, the rectification of which may later cost them hundreds of thousands of Czech crowns.

Obtaining legal and building-technical advice on a selected property will delay the entire process by no more than a few days. In return, you gain lifelong peace of mind that you have purchased a defect-free property at a price reflecting its true value. In Western countries, it is customary for brokers and sellers to respect these buyer-side safeguards. Conversely, if they refuse to wait and pressure the other party into acting quickly, it may signal that there is something wrong with the property.