Why not sell real estate at a real estate auction…

... because whoever tells you that you will get more than the usual (market) price in the auction, he is immediately convicted of lying. If you participate in this auction, you only put the sale of your property (and often it is your only real estate) in the hands of people who do not know or do not want to properly and professionally let you market your property. At this realized theater, they are only interested in receiving a higher commission from the sale. It is deceiving the client and lying, often also presented in the media.
     I mention the importance of a correct and professional market valuation of real estate in most of my articles in our blog. The real estate that the seller wants to sell very quickly is suitable for the auction, and he knows in advance that he will demand a lower price than the usual (market) price to attract more buyers. If the real estate agency tells you that it will sell your property above the usual (market) price, it will deceive you. Only its broker incorrectly or unprofessionally determined the usual (market) price for you. Unfortunately, with 100% certainty, well below the usual price. And there is a reasonable suspicion that he did it on purpose.

Subsequently, the sale will take place in the form of a real estate auction and between the difference between the so-called "real estate usual price" and the auctioned price, the real estate agent will increase the commission up to 35% of the positive difference in the sale. If your "real estate usual price" is CZK 3 million and the positive difference from the sale is, for example, CZK 450,000, then at first glance it seems that you must be extremely satisfied. If you think about it and start counting on me, your chin will probably fall off. Originally, from your required CZK 3 million, you were offered a very good commission of 4%, which is a relatively cheap commission below the average of 6%. If you add the commission from the sale in the form of a real estate auction, then it is already more than 8% of the total sale price.

Small recap:
Fair trade - price CZK 3.45 million = usual commission 6% = CZK 207,000 total commission
Auction - bid price CZK 3 million, agency commission 4%, ie CZK 120,000,
             after the auction the final price is CZK 3.45 million, the difference is + CZK 450,000 - the agency's profit is 35%, ie CZK 157,000,
            total commission 277,000 CZK, which is equal to 8%, the agency “earned 70,000 CZK more !!!

Therefore, always think before the sale and calculate what is most advantageous for you and contact a professional.
Unfortunately, such a procedure can be considered among other unfair practices of some unscrupulous real estate agencies.

Real estate auctions are a very popular modern sales tool today and have certainly always been in history, but if someone presents you with an unprofessional determination of the usual price of your property and claims that you will get a higher price by their organized auction, you are certainly entitled to complain about such practices. at the Association of Real Estate Agents or at the CTIA.
Why? Because it is a classic deception of the consumer according to § 5 of Act No. 634/1992 Coll. - Consumer Protection Act.

 This situation cannot happen to you in our real estate agency. Our office has a tied trade issued by the Trade Licensing Office in Ostrava under file no. SMO / 014363/20 / ŽÚ / SKJ on the subject of business Valuation of property for real estate. This will be obtained by those who have a university education and have also completed 4 semesters of special education at the relevant universities.

If you sell your property through our real estate agency, we will prepare a professional valuation of it for FREE and determine the actual usual sale price at a given place and time. Subsequently, we will make a real sale for you with the most funds. You will really know whether your realized sale was above the price or below the usual price. In the case of selling or buying real estate, speed, stress and thoughtless steps have no place.

24. 6. 2021