While in 2014, the proportion of real estate sold by real estate agents was above 60 percent in the Hungarian market, in 2018 it was no more than 35 percent.
“Comparing its value and professional standards to those of the developed markets, the rate could fall below 10 percent within 5 years, effectively eliminating real estate brokerage in its current form, as it will not be needed,” says Marcell Kövesdi, owner of Good Finance Managing Director.
The expert sees the main problem
As the lack of professional training, which is why the majority of Hungarian real estate agencies continue to see their role in impersonal mediation, although this function is better provided by the Internet than they are. In addition, most of them strive to sell as soon as possible instead of maximizing the sales price.
Most of the real estate brokerage training in Hungary, apart from OKJ education, takes place in real estate agency courses of a few days or a week , but instead of functional and practical training, they reinforce lexical knowledge in a “prosaic” education system. This is very different from the Western method of education, where the focus is on the sales person and his / her competencies. “It is no coincidence that more than 50 percent of those who apply for real estate on the Hungarian market look for another livelihood within six months,” says Kövesdi. Currently in Hungary approx. 3,000 real estate agencies with 8,000 sellers, and the number of real estate agencies has remained unchanged for years; Kövesdi estimates that four out of ten start-ups have closed within the last six months.
While offices in France sell 80 percent of properties and 90 percent in the United States. In Hungary, a relatively low commission (2-5%) is associated with a declining mediation rate. In the Czech Republic, the commissions of the offices are 3-6 percent and they sell 70 percent of the property, while in Austria the same rate is over 80 percent and the commission is 4-6 percent. However, behind the higher commission, higher level services and added value must be lined up.
According to the expert
The IT support needs to be improved, the role of practical training should be increased, and professional use of social media should also be emphasized. The latter is in its infancy in Hungary; approx. 5% of landlords use social media, and they only put real estate on the surface, rather than being seen as the primary interface for building relationships and trust overseas.
Kövesdi also emphasized that the owner or seller acts properly if you hire a single, professional office or broker who has an interest in selling the house or apartment at the highest possible price.
For the most part
The owner does not know the market and the sale, while he wants to sell his biggest asset, his property. However, if the owner entrusts the sale to more than one realtor, he or she will face a negative price competition.
Realtors see on the internet what their engagement is, and since there is competition for commissions, they try to get the owner to sell their apartment to the first, relatively good bidder, arguing that it’s a better deal you won’t get anyway.