How to Sell Your Prague Real Estate for 40% More - Part 1

The tips given in this video are based off the experience of my wife and me. We sold 3 properties over the last 2 years, and we found some very interesting things with the methods we went about it. And we’ve since been using it within our company, and we like to give you those top tips today.

Now when we look back and we analyzed the sales that we’ve made on the 3 properties we sold. We sold them for an average of 42% above evaluation including Prague real estate that we'd owned.

Now it’s normal to sell above evaluation price, but 42% is much above what is normal.

At the same time using these methods, we reduced our expenses by 10%; as well through the whole process our money was secured.

So we didn’t worry that at some point we’re going to lose the sale or lose the money.

Well in this video and the next video, part 2 we’re discussing tips for sellers of all types of property, and then on the final video we’re going to look at some specifics, for example, if you have a renter in your property, and if you own the property through an SRO.

Now, the first thing we’re going to look at is what to do when you have a mortgage. And this is really vital for maximizing the profit that you come out of your sale with. Most don’t realize it, most investors but the banks in Czech Republic have very high penalties for paying out your Czech mortgage outside the fixation period.

Let’s look at an example here. Here’s a mortgage of 2 million CZK. Over 30 years, it’s fixed at 5 years, at a 5% interest rate. And now you as the seller, you want to pay out the mortgage in the 2^nd year of fixation.What kind of penalties, will the different banks be giving to you? Well first of all CESKA SPORITELNA, GE Money Bank, KB, Hypotecni Banka, Raiffeisen Bank. You can see from these figures that it’s going to cut a huge amount of profit out of your sale.

So the first thing you need to do as an investor, is find out when your fixation period is, and you need to time your sale, so that all the money goes through at that point, and the mortgage is paid out. And that will maximise your profit.

Now the second very important thing is how to price your property. The first thing you want to do is find out what the comparables are, and what the average list price would be.

Now here’s some websites that you can use in order to find out what an average list price would be for your property.

Sreality.cz - It’s a big one with all the real state agents.

Cenovamapa.gekonsro.cz - This website here is a very good it’s a price map and it gives you the comparables.

Realitymorava.cz - This website you can actually go down into the cities and also the size of the flats and find comparables.

Realio.cz - This website here you can type in the district of the city, and it actually will give you all the list of properties in that area and the average price. So it’s a good one to use.

And if you are having problems doing this for sure contact us. We have a free service where we will look at all the list prices and help you come up with a good one.

But the key is not to list your property at what the average or your competition is but at 2-3% under.

Now you may ask why, why 2 or 3% under.

Well the average right now that someone sells their property at compared to what they listed at is 10-15% under. But we found if you price it 2-3% under, and then use the advertising tips that you’ll see in the video.

You either do not have to reduce your price in selling it, or reduce it very little and come out much higher than those who start by listing it for a higher price.