Because the price calculated by the online estimation algorithm is not the usual or market price, and therefore it will not help you at a given moment when buying or selling the selected property.
The creators of online applications for real estate valuation are based on specific realized data on the sale of real estate, which they purchase in bulk from the Cadastral Office of the Czech Republic. Everyone also refers to this and claims that the results of their applications are therefore very accurate and professional.
However, today's real estate market is not as quiet a stable market as it was until March 2020. From that time on, the real estate market began to be affected by the Covidu-19 epidemic, state intervention abolishing acquisition tax, bans on accommodation services, travel and foreclosure. subsequent accumulation of cash in the accounts of residents.
Covid-19 caused outages in supply and transportation for construction production around the world. As a result, warehouses for construction production sold out and wholesalers of building materials began to offer goods in so-called daily auctions. Every day, prices increased until they increased by 100-300% year-on-year for some species. Covid-19 also created a shortage of foreign labor in the construction industry, which led to rising wages and a further increase in the final price of construction.
As a result of overall government policy - raising salaries for doctors, teachers and other civil servants, abolishing super-gross wages, introducing antivirus and kurarbeit, ill-considered and populist pension increases, and increasing government debt at the expense of future generations on the grounds of "Covid was" the hand of price inflation began to move upwards. At this moment, the indicator light of the Czech conservative investor, which likes to save its money savings in real estate, lights up red and the process has started - Buy real estate !!
The overall situation of rising real estate prices is also still affected by the cheap supply and availability of mortgage loans from banks, the length of approval of new buildings, zero policy on the construction of supported apartments and houses and the lack of construction of municipal and state housing units. This is also the reason why the total number of properties on the real estate market is now so small, as they have sold out, and this is causing chaos and nervousness among buyers.
The creators of online real estate appraisal applications do not anticipate high demand. They cannot extract it from the database of the Real Estate Cadastre of the Czech Republic, they will only get it ex-post. The prices of actual sales of real estate are delayed by 3 - 5 months from the date of acquisition of the real estate until the specific day of registration in the real estate cadastre. This is affected by the time of advertising the real estate, processing the mortgage loan and a 20-day period for registration in the real estate cadastre. Therefore, online real estate price estimation applications do not work nowadays, when the demand for real estate is disproportionately increased.
These online applications have been part of almost all real estate programs for many years and are offered for additional fees to real estate agency websites. They were implemented in real estate monitoring programs, with the proviso that they made perhaps all real estate brokers in the Czech Republic "experts" for real estate appraisals or even valuations. That is why almost every broker offers it. And clients can't know it. Notaries in inheritance proceedings or lawyers in settlement of property in divorce proceedings are not familiar with this. I recommend all those interested in the real valuation of real estate to request a copy of the tied trade for the valuation of real estate!
This means that the prices that are offered and calculated to real estate agents in this way are realistically underestimated and do not reflect the increased demand for real estate.
Unfortunately, it started the AUCTION OF REAL ESTATE.
Those interested in selling real estate will be printed a neat form from online valuation applications with the result of the so-called "online usual - market price". He will be offered a very decent commission of 4-5% of the sale of his property. He will be presented with a contract where, with a larger number of people interested in buying, the real estate agency can carry out an AUCTION and from what they sell above the so-called "market price" (which the client is supposed to set himself), they even want an incredible 65% of this increase. It is again only an unfair practice of some real estate agencies in order to obtain a disproportionately high commission. (You can find more about the reasons why not buy and sell in auctions in other articles of our blog)
Unfortunately, these real estate agencies are currently uploading online real estate appraisal applications. They refer to these calculations, so the creators of these applications and programs play a significant role in this unfair practice. The state itself also participates in this through the so-called "business" of the Cadastral Office of the Czech Republic. Without his bulk sales, these applications would not be able to work.
We do not appreciate real estate online !!!
We also do not make online estimates or similar nonsense. We will appreciate your property for FREE just before the sale and publication. The actual market valuation must be valued professionally, according to the generally accepted methodology and procedures, and most importantly, on a specific day - the day when we will publish your offer. With us, it will not happen that we will sell your property in the AUCTION !. That is why you really get the maximum market price for your property, even for the usual "normal" commission of our real estate agency.
9. 9. 2021