I do not deal with a real estate agency !! Is this a really good idea at a time of stagflation?

… Or RK - do not call, the price is fixed - RK do not call, never !! RK nevolat - nepsat. Thank you!! Offers SMS only. Offers by mail. Please do not call RK. Speculators and RK never !! Realtors and the like do not call, only serious applicants and similar and sometimes vulgar texts can be found in private advertisements for the sale of real estate on bazaar portals.

                                                                                                              Do we all really deserve it ???

But the time of golden times, when a private seller puts up such an advertisement ending with the above text and expects to sell his sold property quickly and profitably - is GONE.

In the last article How to stop the growth of real estate prices? I wrote a short sentence on September 13, 2021 that "the rise in property prices has always naturally stopped in the past only in cases of global economic crisis or global military conflict," and a war in Europe would never have occurred to me more than six months ago. However, even then I wrote about rising real estate prices, but also the reasons why the inflationary spiral was started. Energy prices were also rising in the autumn. The EU itself started this with its ecological "green deal" idea, and the then government in the Czech Republic helped a lot. The war has brought this noble idea to a dead end, but unfortunately energy prices have risen even more and it cannot be assumed that they will at least stop in the foreseeable future.

High energy prices will cause a decline in industrial production. Some companies start to cut costs and some fail to do so and file for bankruptcy. Once again, there will be a secondary insolvency among companies (as it was in our country in 1994–2000), which will gradually cause a slowdown in our economy not only in industry, but in all sectors, including services. Stagnation will add to inflation, creating a very unpleasant economic phenomenon of stagflation - a combination of inflationary growth in the prices of goods and services and the stagnation of the country's economy. The world market economy experienced this situation once before in 1969–1975 and manifested itself in a major economic crisis that affected the entire United States, with more than half a million workers laid off and more than 1 million households dependent on social benefits in New York alone. At that time, there was a huge increase in crime. Car theft, looting, prostitution, apartment robbery and street violence were a daily reality. The world oil crisis in 1973 completed it all.

In our country at that time in Czechoslovakia under the rule of the USSR, it was "fine", there was "only" the Bolshevik crisis for about 25 years and very low crime behind the isolation with the Iron Curtain. CMEA-led long-term planning (for younger students - the Council of Mutual Economic Assistance under the auspices of the Soviet Union as an alleged adversary of the EEC - the European Economic Community - the forerunner of the European Union) was managed centrally and inefficiently.

In the autumn, and certainly by the end of this year at the latest, if the government does not take effective measures to reduce energy prices and the CNB does not raise interest rates further, a big wave of redundancies will occur, not only in the Czech Republic.

The economic crisis will manifest itself with all its negative consequences after a relatively short period of stagflation.

                                                                                            And what about property prices in such a period?

You will definitely not sell your property on the bazaar portal in a few minutes. The sale time will be extended. The number of properties offered will start to rise, which can already be seen on the Sreality real estate portal. The importance of the work of real estate agents and brokers will finally gain in importance. Marketing services (finding a suitable target group of buyers and their direct contact, adjustment and division of real estate into separate parts), homestaging, professional real estate photography, 3D scans, etc. techniques of selling real estate agents will be paid for by hard work for clients. The seller will not be helped by the sale in the form of a real estate auction. It loses its meaning and becomes a regular auction, the result of which will be very far from the seller's ideas.

Due to rising input prices of materials and services in construction, the selling prices of the properties offered will not fall, but due to high interest rates on mortgage loans, the sale period will certainly be extended.

Clients who have so far regularly and honestly repaid their liabilities will be surprised by the end of the fixation of low interest rates and the growth of payments on their refinanced mortgages. Only after a while will most of them find out that they will not be able to cope with the new situation and will think about how to proceed.

Those who do not realize that they have to sell their property on time and that they are in danger of personal bankruptcy will fall into the hands of executors and insolvency administrators, and their indebted property will be sold in a forced auction. Indebted real estate will be sold 50-70% cheaper than the current market price. The executor-auction mafia will have a "beautiful" period. Before they find themselves in this situation, borrowers will try to sell their indebted property themselves, and by not taking on a professional real estate agent or having a current market valuation report drawn up (not some automatic estimate), they will find that at the time of stagflation, their the property simply cannot sell for the exorbitant (unprofessionally determined) price.

Some will be smarter. They will reasonably consult their mortgage broker about refinancing the mortgage. If they find out in time that it will be better to offer their property for professional sale, they will agree with the real estate agency and they will avoid the above-mentioned problems and will not lose most of their money.

That is why I answer the question in the title of the article - now working with an honest real estate agency is not only appropriate, but becomes an almost important necessity that can save your property, money, your background, your health and your family happiness. And ultimately it can save you from bankruptcy of your family.

Our real estate agency owns two tied trades. Real estate brokerage and real estate appraisal. We are properly insured according to the law, including all our real estate agents.

Everyone with our real estate agency FORTUNA REALITY s.r.o. concludes a brokerage contract, receives a FREE up-to-date professional market valuation report (no estimate or pricing) in the range of 20 to 100 A4 pages. You will also get a full service of marketing services - professional photography, or 3D scan, floor plan of the property, banners, legal services, including safekeeping of funds FREE OF CHARGE, advertising on quality internet portals and especially developing a professional strategy for selling your property, addressing and selecting the target group of potential candidates long-standing databases.

Our real estate agency has FORTUNA - HAPPINESS in its name, and that is why we wish it to everyone. But if you are threatened with the arrival of an executor in your house or apartment -

                                                                                                               PLEASE CALL US IN TIME !!!

Our telephone contacts: Ing. Martin Sasinek - 602580267

                                                      Josef Benetka - 777653340

In Ostrava on 6 May 2022