Expenses when Selling Residential Property in Hungary
Tax after selling a house or apartment in Hungary
The default payable personal income tax after the revenue when selling your residential property in Hungary is 25%, payable with your next year’s taxes. This means you would pay a 25% tax after your gains, your profit, if you sold your property with a profit, and right away in the first year after purchasing.
The profit is the difference between your selling price and all provable amounts you had spent on the property, eg. the value of the property when you acquired it:
- purchase price, or, if it was a gift, the amount that was written in your document that you submitted to the Land Registry Office;
- your purchase expenses, e.g. stamp duty cost, which was nearly 6 % of the purchase amount, and also the lawyer’s fee you paid when purchasing;
- additional provable amounts you spent improving the value of the property, like adding a new bathroom for example.
You can thus lower your tax with invoices you kept from improving the property. The invoices should have your (the property owner’s) name on them. If your company is the owner, invoices must have your company’s name on them. If you bought a home for Ft 80 million and you spent another 20 million renovating / improving it, and you can prove the costs with official invoices, and then you sell the property for 120 million, you would pay the applicable percent after the 20 million profit you made.
There is no tax if you do not sell without a profit (in Forints).
Also, the tax percentage is getting lower every year (for residential properties, ie. houses and apartments), so the later you sell, the lower percentage tax you pay after your profit.
- If you sell your home or flat in the same year you purchased it, you must pay the full 25% VAT after your profit.
- If you sell in the 2nd year, you may pay 10 % less. (You pay 25 % tax after 90 % of the profit)
- 3rd year: 40 % less. (You pay 25 % tax after 60 % of the profit)
- 4th year: 70% less. (You pay 25 % tax after 30 % of the profit)
- 5fth year and after: 100% less ((You pay no tax after your profit)
So no tax is to be paid if you sell your home or flat in the 5th year or after.
Other expenses when selling
There are currently no other obligatory costs when selling.
Your real estate agent’s fee shall be 3-5 per cent of the selling price + 25 % VAT with a company invoice.
You will have advertisement expenses if you wish to sell yourself.
The mandatory lawyer counter-signing the Purchase Contract is customarily paid by the Buyer (usually 1 to 1.5 % of the purchase price + VAT). As a Seller, you only pay a legal fee if you wish to employ your own lawyer to monitor the transaction on your behalf.
I would be glad to assist you to sell your residential real estate, especially if it is located in district 11, 12 or 22 of Budapest, or in the Buda Suburbs: Biatorbágy, Budakeszi, Budaörs, Érd, Diósd, Törökbálint, or near these.
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Location: Where to Live with a Family in Budapest
Expatriate Housing in Budapest
Keep in mind when searching for a place to live in Budapest:
- Neighborhood – While some transferees prefer the inner city (which typically offers apartments), most tend to look for homes in the hilly Buda side and nearby suburbs of Budapest.
- Overall transportation needs – heavy traffic during rush hour might make areas near public transportation much more appealing.
- Commute to work – In the mornings (7:00 – 9:00 a.m.) and after office hours (4 – 6 p.m.), traffic can be really heavy between your workplace and your home. A 10 minute drive on the weekend might translate to a 30 minute or one hour drive during the week. The worst case is crossing the river Danube from the Buda side to the Pest side at around 8 a.m. Elisabeth bridge (Erzsébet híd) tends to be the fastest bridge to cross.
Expatriate housing
Expatriate families tend to seek housing on the Buda or western side of the city. They prefer living in family homes located in green, quiet and clean residential neighborhoods.
The most popular neighborhoods in Budapest for expat families are districts 2, 11 and 12 on the green and hilly Buda side, close to international schools.
For those who want to live near work and do not mind busy-city noise, recommended areas on the Pest side are the centrally located districts 5, 6, 7, and the southern edge of 13. Apartments in these districts are usually smaller; surroundings more urban, thus more polluted and noisy.
Less expensive, more comfortable
Expatriate families are just recently discovering the south-western residential areas in the 11 and 22 – include the southern part of Sasad, Madárhegy and Budafok within Budapest city limits, as well as suburbs such as Budaörs, Törökbálint and Diósd. You get ‘more house’ for your money here, and since the area developed later, rush hour traffic will be gentler on you than in the northern Buda districts 2 and 3.
There are two shopping malls with cinemas, restaurants and nice shops: MOM Park in district 11, and Campona in district 22. There are also numerous other large shopping centers in close proximity: Auchan, IKEA, Tesco, Cora and many more near highways M0, M1 and M7; but even Mammut mall is easily approachable.
Getting around: You can reach the nearest Metro line at Deli pu by car or by public from anywhere in the area. Drop your car at Deli and hop on the subway (Metro) to go to the city center. New Metro 4 is going to come even closer, but I don’t dare to predict when that will really happen. Driving is easier in this recently developed south-western area, serviced well with highways and motor roads. The airport and major highways are also easier to reach from here than from the northern and central districts.
Recommended School in the area: ICSB. Driving through the back roads of the Buda hills, you can also reach the other international schools without being caught up by heavy rush hour traffic.
Other Posts about Buying Real Estate in Hungary:
- Location: Where to Live with a Family in Budapest
- Location: Where to Buy Investment Residential Property in Budapest
- Rental Yields in Budapest
- Expenses When Purchasing
- Buying for the Right Price
Back to Buying in Budapest »
Location: Where to Buy Investment Residential Property in Budapest
The city of Budapest is divided by the Danube river into two cities: Buda and Pest. There are also 23 administrative districts in Budapest. The number of the district largely sets the property price.
The flat and busy Pest side is the location for the city’s financial, administrative, commercial and retail centers. The primary areas of interest for the residential property investor are the central 5th and 6th districts.
On the hilly and residential Buda side of the city, the prestigious residential areas of the Buda hills are becoming a favorite amongst longer-term investors, since expatriate families tend to rent long term in these pleasant, green neighborhoods, near international schools.
Where to buy a home to live in Budapest? »
Location is the key to any property investment decision!
The latest trend of Budapest investors hoping for higher capital appreciation:
Good quality residential property in the most wanted neighborhoods of the green, residential Buda hills, from 2 bedroom flats to luxury villas. These are the locations where the more fortunate Hungarians prefer to reside, as well as the expatriate community, with an even growing number of international schools.
Among expatriate families who tend to rent long term in Budapest, districts 12 and 2 are the most popular and also most expensive areas to live. They are scenic, and parts of them look like you are in the country. But there are other upcoming green and quiet, residential neighborhoods for less, where more and more international families decide to settle. Search in parts of district 11 (Sasad), and 22 (Budafok), and even a number of Buda suburbs, including Budaörs, Diósd, Törökbálint, Biatorbágy, Nagykovácsi, Budakeszi and Solymár. Check expatriate housing for ideas.
Buda side districts with investment potential
District XI (11) – The largest Buda district includes the more central Kelenföld, which houses two large universities, the Technical University and the ELTE University of Sciences with lots of their dorms; as well as famous Gellert-hegy and scenic Sasad-Sashegy (Eagle Hill).
A new subway-line called Metro 4 is under construction, which will have all of its 5 Buda-side stations in district 11, making the busy inner (Kelenföld) part of the district an even better investment spot and a more convenient place to live. The latest large shopping mall, Allee just opened in the heart of district 11, at one of the future stations of Metro 4.
The Sashegy and Sasad areas are quite nice family neighborhoods, though they are more convenient with a car, similarly to most nice places of Buda. I live in this area, and my teen-age offsprings used to get around quite well on public transportation (numerous bus-
lines and tram 59). International schools are also close proximity.
District XII (12) – Buda hillside: the most prestigious and exclusive residential districts of Budapest, the home of the President and Prime Minister among other political luminaries. Nice, green, upper-class and expensive, being the most desirable location
for the better-to-do Hungarians as well as expatriate families and international schools.
District XXII (22) Budafok – Up-and-coming district with a lot of green. If you want to live in the green own a car, this is probably the most comfortable and definitely the most inexpensive Buda district within Budapest city limits. A great advantage for English speaking families with kids: the nearness of ICSB (International Christian School of Budapest), and the large and fun Campona mall.
Pest-side districts with investment potential:
If you are not very familiar with the city, stick to central districts (particularly 5 and 6) and as close to main thoroughfares as possible, e.g. Andrássy út or the Körút. I wouldn’t really recommend new apartments for the most part. They tend to be overpriced, and rather low in quality.
For the purchase-refurbish-sell deal, the quickly developing districts
7, 9 and 13 are also recommended.
The 5th, 6th, 7th, 9th districts (in Pest), and 11th (in Buda) are where the universities are located with many foreign students who are looking for apartments to rent, especially along the metro lines. It is not enough, however, to go by districts, as the prestige of smaller neighborhoods greatly varies.
The most desirable part of the city for singles (students and businessmen) is the central district 5, followed by the rapidly developing western areas of District 6, which has undergone something of a renaissance in recent years, especially the streets near Andrássy út. Other areas with good investment potential include the central end of District 7 as well as parts of the rejuvenated District 9, particularly around Ráday Street, and district 13, between the Danube river and West-End City Center.
District V (5) (and parts of VI) are the most likely areas for higher capital appreciation in the smaller investment category, especially near the Basilica in District 5 – Hercegprímás utca, Sas utca, Oktober 6 utca as well as all streets near the Parliament.
This is the most desirable city-center location and is quiet and pretty as well as close to businesses as well as everything else. With some luck you can still get great renovated one bed apartments on the best streets in District 5 for just over € 100,000
District VI (6) boasts the famous Andrássy Boulevard, Heroes’ Square, the trendy Oktogon and Liszt Ferenc Squares with their cafes and restaurants, a favorite area among foreign tenants. The smaller, quieter streets near Andrassy (such as Szív, Szinyei Merse, Munkácsy) are pleasant places to live. An achievable rent of 300-350 for a furnished 1 bed in these and similar streets is a realistic expectation. I would definitely furnish as you will find it hard to rent otherwise. 90% of people who rent in the city center are non-Hungarians, with no furniture of their own.
District VII (7), the traditional Jewish Quarter behind the Great Synagogue, has seen tremendous investment recently, with buildings renovated rapidly and parks cleaned up beautifully.
Dohány utca – Akácfa utca location is good, close to everything, but by no means considered a prestigious area. Rental prospects will probably be quite good. Price seems okay to highish. Renovated 80 m² second hand apartments would more than likely rent for € 450 / month. Students won’t be able to afford the rents if they are to be around the 6% mark. (The average salary in Hungary is around € 500-600 / month). The surrounding area is okay. It’s not that close really to Blaha Lujza tér, which is not a nice place to be yet. However, the city is trying to re-develop this square and also, a new luxury hotel (New York Palota) opened recently right beside it.
The Madách tér area near Deák tér is an extremely central location with lots of businesses close, and should be rentable. It became a lot prettier lately than it was before.
District VIII (8) – I wouldn’t really recommend investing in most of 8 although there are a few fairly good parts. But the worst parts of central Pest are also located here and sold to unaware foreigners (areas in or around Alföldi Street, Kun Street beside Erkel Színház Theatre, Fiumei út, Rákóczi tér, Orczi tér).
It would be more difficult to rent out apartments here than in the other districts of central Pest. Despite being quite close to the center, district 8 is not a desirable area. People believe crime is higher here and it was traditionally the center of prostitution in the city.
You don’t actually experience that much of it any longer, but if you were to ask any Hungarian where the worst part of the center was, 90% would agree with me. Many of the new buildings in this area also seem to be aimed at foreigners, who may not be aware of local opinions.
Closer to Kálvin tér is a lot better, such as part of Baross utca, but even still, there is nothing so amazing about that area either.
District IX (9) – Trendy bars and cafés are springing up on Ráday utca and in the section bounded by the Nagykörút, attracting university students and young professionals.
Refurbished older parts close to the Körút, such as Ráday utca, are good, but new builds further out tend to be ugly and overpriced. The government spent a lot to improve the area but be careful to spend your money on a new apartment here. You will very probably have problems renting it out, and when it comes time to sell, you may also run into difficulty. For the price of a poor quality new apartment here, you can get a second hand apartment in district 6, beside the Opera and just off Andrássy út, right in the center of town.
If you have made up your mind to buy a new apartment anyway, the part of district 9 close to the Danube is likely to be a fine investment. The new National Theatre is located close by as well as more centrally located Ráday utca, which is one of the best streets over here for restaurants, cafes and bars with ambiance and culture. Some of the popular Summer bars are also within walking distance.
Tenants will probably prefer apartments with overlooking inner garden. The design looks fairly good compared to other new builds in the city.
District XIII (13) – A well to do location with some history and many antique shops, directly serviced by a metro line. Its best location is Szent István Park and Újpesti Rakpart between Szent István Park and Margit híd (Margarete bridge).
Other Posts about Buying Real Estate in Hungary:
- Location: Where to Live with a Family in Budapest
- Location: Where to Buy Investment Residential Property in Budapest
- Rental Yields in Budapest
- Expenses When Purchasing
- Buying for the Right Price
Back to Buying in Budapest »
Rental Yields in Budapest
Good news! Residential rental yields in Budapest move sharply up!
Gross rental yields in Buda (fall, 2009)
| BUDA - Apartments | € COST TO BUY | € MONTHLY RENT | YIELD | € / m² COST TO BUY | € / m² MONTHLY RENT |
|---|---|---|---|---|---|
50 m² | 78,700 | 427 | 6.50% | 1,574 | 8.53 |
85 m² | 143,990 | 981 | 8.17% | 1,694 | 11.54 |
120 m² | 257,160 | 1,532 | 7.15% | 2,143 | 12.77 |
200 m² | 461,600 | 2,618 | 6.81% | 2,308 | 13.09 |
Source: Global Property Guide
Gross rental yields in Pest (fall, 2009)
| PEST - Apartments | € COST TO BUY | € MONTHLY RENT | YIELD | € / m² COST TO BUY | € / m² MONTHLY RENT |
|---|---|---|---|---|---|
50 m² | 82,950 | 479 | 6.93% | 1,659 | 9.58 |
85 m² | 130,985 | 826 | 7.57% | 1,541 | 9.72 |
120 m² | 201,960 | 1,366 | 8.11% | 1,683 | 11.38 |
Source: Global Property Guide
Gross rental yields in Pest for the high-end apartments now average 7.54%, and their yields have increased by almost 2% from the previous year.
Gross rental yields for a similar category in Buda average a lower 7.16%, but again have increased by 1.59% on GPG’s 2008 estimates.
This is very positive news, suggesting that value is returning to at least some real estate markets, after the recent turmoil.
Quality is a must!
Rental yields for more typical, good but not especially high-end central Pest apartments average 5.6%, while Buda yields tail slightly behind at 5.57%. The Buda side of Budapest is becoming a favorite of longer-term investors.
Residential rental return of 6% and above is still considered good. A guaranteed rental return simply does not exist!
Good location and quality unproblematic renovated apartment is a must! Low quality, superficial refurbishment is no longer good enough!
The supply of quality units is extremely limited. New build apartments are in large supply (but often poor quality at questionable locations), and owners are typically having to reduce rents.
Apartments tenants look for
Tenants are likely to be either wealthy Hungarians or foreign professionals / students, of which there are approximately 150,000 in Budapest. Tenants demand a luxury specification, with a high standard of renovation and furnishing, including flat TVs, leather sofas and thoughtful interior design.
There is a lack of well-designed, well-furnished apartments in the city and premium-quality apartments tend to attract premium rents. Tenants in Budapest have grown to have high standards, and throwing in a few mismatched pieces of furniture, even from Ikea, is no longer good enough to attract a tenant. More and more investors of more keenly-priced classic properties are renovating their apartments to a standard that exceeds that of standard new-builds with designer tiling, suspended ceilings and Philippe Stark bathroom fittings, hoping to attract the more discerning tenant.
Other Posts about Buying Real Estate in Hungary:
- Location: Where to Live with a Family in Budapest
- Location: Where to Buy Investment Residential Property in Budapest
- Rental Yields in Budapest
- Expenses When Purchasing
- Buying for the Right Price
Back to Buying in Budapest »
Expenses When Purchasing
Typical costs when buying residential property in Hungary include:
1) Solicitor’s fee: 1,5 %; paid by the buyer upon signing the purchase contract. A lawyer’s participation is required in Hungary. All lawyers have the right to countersign your Purchase contract, but it is very advisable to use a real estate specialist. They are the ones who can make sure you are not becoming the victim of a
property scam, and can save you a significant amount of time at taking care of paperwork. Email or call me and I can introduce you to reliable, experienced and English-speaking specialists – even if you are not using my other services. Which you should :)
2) Buyer agent’s commission: 2 %, paid upon signing the purchase contract. Using the services of a buyer’s agent is optional. Check my “Fees & Discounts” section.
Prices quoted above do not include 25% VAT which you must also pay with a company invoice (your company can then reimburse VAT).
3) Property Acquisition Duty (also called “Stamp Duty”): 4%.
Good news! As of 2010, the general duty rate on the transfer of property will be reduced to 4% from 10%. If residential property is acquired, the duty rate will be 2% on up to HUF 4 million of the value of the property. The duty rate on amounts above HUF 4 million will be 4%.
Within the frameworks of its official procedure, the Land Registry Office (Földhivatal) notifies the relevant Duty Office (Illetékhivatal) to establish the duty of the transfer of the ownership right to be paid by the new owner.
The Duty Office will establish the amount and orders the payment of the property aquisition duty (illeték) to be paid within fifteen days following the receipt of the order. You can expect this to happen a few months (2 – 6 months lately) after your ownership is
registered by the Land Registry Office. The amount of the duty is based on the purchase price of the property.
Other Posts about Buying Real Estate in Hungary:
- Location: Where to Live with a Family in Budapest
- Location: Where to Buy Investment Residential Property in Budapest
- Rental Yields in Budapest
- Expenses When Purchasing
- Buying for the Right Price
Back to Buying in Budapest »
Buying for the Right Price
Make sure your purchase does not end up becoming a costly adventure!
Capital Appreciation in Budapest
The Budapest real estate market is at a stagnating-low point currently, which means that:
- this is a good time to purchase now, and you should be able to find good deals in the long run;
- this is not a good time to sell, so if you own property here, try to hang on to it. If you must sell anyway, make sure that your property is presented as nicely as possible; make it stand out with a few designer touches.
- Budapest is a long term investment location; you should be able to keep your property for at least 6 years to sell with a good profit.
Prices of good properties have remained the same as n 2003 or risen slightly since then. Lower quality condos and houses have definitely fallen in price and those are almost impossible to sell. The market continues to be oversupplied with the wrong type of property and there is a low number of transactions.
Know How Much the Property is Worth
Before making a buying decision, you will need to know how much the property is worth. When you are the buyer, you will have to check comparable market prices in the neighborhood to make sure you are not paying too much.
I strongly advise you to enlist the services of an experienced Buyer Agent to make sure you buy the right property for the right price.
For a rough idea, here are some average Budapest purchase price statistics:
Average Asking Prices in Buda districts of Budapest for brick buildings (fall, 2009)
| District | I | II | III | XI | XII | XXII |
|---|---|---|---|---|---|---|
| Ft / m² | 469 000 | 500 000 | 330 000 | 357 000 | 431 000 | 311 000 |
Average Asking Prices in central Pest districts of Budapest for brick buildings (fall, 2009)
| District | V | VI | VII | VIII | IX | XIII |
|---|---|---|---|---|---|---|
| Ft / m² | 494 000 | 353 000 | 282 000 | 252 000 | 305 000 | 334 000 |
Average Residential Asking Prices in Buda suburbs (fall, 2009)
| Settlement | Biatorbágy | Budakeszi | Budaörs | Diósd | Érd | Törökbálint |
|---|---|---|---|---|---|---|
| Ft / m² | 283 700 | 300 400 | 333 500 | 281 900 | 220 500 | 320 200 |
Other Posts about Buying Real Estate in Hungary:
- Location: Where to Live with a Family in Budapest
- Location: Where to Buy Investment Residential Property in Budapest
- Rental Yields in Budapest
- Expenses When Purchasing
- Buying for the Right Price
Back to Buying in Budapest »
Budapest Property Market in the end of 2009
The political situation is a lot calmer these days in Hungary. Things are going well under Bajnai’s government. The tough decisions were made at the right time and the economic situation is getting back on the right track. The HUF has stabilized and simultaneously, interest rates are falling.
There has been no significant capital appreciation in Hungary since 2002-2003. The Hungarian Property Market totally missed out on the general positive wave which benefited Poland and Slovakia in particular. Prices of good properties have remained the same or risen slightly since then. There are still buyers for desirable apartments in downtown Budapest, and for well-priced quality homes in the suburbs. However, because of the low quality of the housing in Budapest, things are complicated. Lower quality condos and houses have definitely fallen in price and those are almost impossible to sell. The market continues to be oversupplied with the wrong type of property and there is a low number of transactions.
Budapest property selling prices were more or less unaffected during the global property upturn of 2004-2006, but by the same token, Budapest is one of the markets, which is least affected by the current global downturn. All in all, things are stagnant at the moment.
Topics: Budapest property market, Hungarian property market, capital appreciation
Normafa: New, 4 bedroom furnished apartment in Buda for Rent
New, 4 bedroom furnished apartment with high standards is available for long term rent in a 4-unit building. Parking for 2 cars in the garage.
Lease: € 2900 Month (net) + utilities + building maintenance fee [currency converter]
Large garden, nice view, clean air… and still a short drive to the city center. One of the most sought-after neighborhoods in Budapest! 
Budapest 11 (Sasad – Madarhegy): 4 bedroom House for Rent
Family home is available for long term rent in Madarhegy, a nice, safe, quiet and well-serviced Buda neighborhood, in district 11 (near Budaors).
Lease: € 1800 Month [currency converter]
You may rent this house partially furnished or unfurnished.
BUDAKESZI: 3+1 Bedroom House for Rent
Budakeszi – Budapest: 3+1 bedroom home is available for long term rent in Budakeszi (off district 12) – This town has the cleanest air in the Buda hills!
Rent: HUF 150,000.00 monthly [currency converter]
Home Finding, Step by Step
This entry is part 4 of 4 in the series Property Finding Services.
- Are Your Interests Represented?
- Is it Necessary to Have a Buyer Agent?
- Property Finding FAQ: What do You Do that I Can’t?
- Property Finding Step by Step
How We Will Work Together
THE HOME FINDING PROCESS · WHAT PROPERTY LOCATION SERVICES INCLUDE · HOW LONG DOES IT TAKE · WHAT IS THE COST
1. Property Location Agreement. After receiving your criteria via e-mail, if I can help you, I will sign a Property Location Agreement with you. A personal meeting takes place if you are in the area. If you are not, we will communicate through e-mail.
2. Home Search. You don’t need to contact other agencies or search listings to be sure you have access to all available properties, but feel free to look and give me tips if you’d like to. I will filter through the entire market to find everything out there possibly matching your criteria.
3. Filtering. I will carefully screen through the available properties to save you a significant amount of time, only to show you selected ones, which potentially fit your criteria.
4. Email with the listings. You will receive images and a short description of each selected property. If something does not look good, you can tell me, and I will select that one out.
5. Touring the “chosen few” homes; making your choice. I will set up appointments to visit each property you are interested in seeing. Depending on the actual location, we can visit approximately 8 homes in a one-day tour. Bring your camera and take notes. Due to the careful screening process, 1 or 2 days spent touring properties is usually enough for my clients to make their choice. If you need more time, however, I will give you more. I will only tell you afterwards, however, the record number of homes I showed one family before they finally decided to actually rent one of the homes. They have since sent more people in my way than anyone else.
6. Legal and technical inspection. Before you make any commitment to purchase a home, you will have the opportunity to have the property of your preference inspected legally and technically.
7. Determining market value; Negotiation. You will receive information about the shortcomings of the property and its comparative market value in order for you to become an informed buyer before disclosing your offer to the Owner. I will also negotiate price on your behalf.
8/a. Purchase Contract. You will be introduced to an experienced lawyer who will prepare the Purchase Contract and provide you legal representation during the purchase process. I will come to the lawyer’s office with you, provide assistance in final contract-negotiations, and monitor the entire purchase process until closing on your behalf.
8/b. Tenancy Agreement. I will negotiate conditions with the Landlord on your behalf, and prepare a double-language Tenancy Agreement.
Compensation
My purpose is that as a result of my assistance You will be able to find your home in Budapest not only faster, easier and safer, but also spend less in the transaction. Within the frame of fairness and integrity, I do everything to save you more money than what you will spend on my fees.
(1) Market Search
- Personal Consultation: Ft 4,000.00 / hour
- Market search property viewing fee: Ft 50,000.00 (or the equivalent in $ or €)
This amount shall be credited against my buyer agency fee, should you choose to use my home search services.
(2) Buyer Agency Fees
- In case of a purchase: agency fee equal to 2 % of the purchase price.
- In case of lease: agency fee equal to one month rent.
Your Criteria
If you wish to receive assistance in purchasing or renting a home in the Budapest area, the next step is to tell me your criteria. For that, please contact me via e-mail ».
Property Finding FAQ: What Do You Do that I Can’t?
This entry is part 3 of 4 in the series Property Finding Services.
- Are Your Interests Represented?
- Is it Necessary to Have a Buyer Agent?
- Property Finding FAQ: What do You Do that I Can’t?
- Property Finding Step by Step
Who uses the home finding services of Budapest Property Finder?
Most of my clients are expatriate families who plan to stay in Hungary for 2 – 10+ years. I am available to all English or Hungarian speakers who are looking to buy or rent residential property in Budapest and in the Budapest suburbs. From families with small children to busy business executives, investor buyers, and everyone in between: you are welcome.
What do you do that I can’t?
I can search the entire real estate market and find the home: house, duplex, townhouse, or condo / flat / apartment you want, where you want it, and tell you whether the price is right. My Property Finding Service encompasses all aspects of buying or renting a home and allows you to control the process while not expending your valuable time. I am also able to offer professional property advice that is to your benefit and increases your chances of finding the right home or investment property in the Budapest area.
Besides finding a home that meets your criteria,
- I will give you personal assistance throughout the property acquiring process. All your viewings will be booked at a time that is convenient to you.
- Budapest Property Finder also carries out the follow up work including giving vendors feedback and carrying out negotiations on your chosen property.
- I will introduce you to proven and trustworthy real estate lawyers as part of my Property Finding Services, and I will work on your property purchase side by side with the lawyer during the completion of the process. Most of the time I can also recommend supplementary service providers such as property inspectors and mortgage advisers, who work to your time scales, not the other way round!
I suggest you to ‘book’ my services ahead of time, since Property Finding and client assistance all the way through completion of the purchase is a time consuming task, and I may not be able to help you immediately when you contact me. After you enlisted my home search services, I screen the listings according to your criteria, contact the listing agents or owners, ‘hand-pick’ the homes that seem to best fit your criteria… and soon you and I will be viewing homes together!
My Property Finding Services, however, do not include construction supervision for absent buyers, or free translation services between you and the local service providers you may have hired, for example, to take out a mortgage, or to complete or refurbish your new property. I may be able to assist you in these areas, too, for a separate hourly fee.
Where do you search for a property?
I am able to access and search any and all real estate databases in Hungary. I can gather information about property listed by Home Owners as well as Real Estate Agents. I have a business-to-business relationship with virtually all registered, legally operating local real estate agents in the Budapest area who have proven to be trustworthy.
This ensures that You as my client are able to benefit from an increased level of information and service. Since I do not ask Real Estate Agents to share their fees with me, the listings of more than 400 Real Estate Agents are free for me to pick from in the Budapest area, and I can be on your side 100% while the Listing Agents are working for the Owners. You do not need to speak Hungarian, because I do.
Do you charge for this service?
Yes. This is how I can give you 100% loyalty, putting your best interests before all others 100% of the time. Please review my fee structure.
Are you a search engine?
No. I constantly gather and receive information on a large number of properties, but these details are not available to the general public to browse. You can find a small number of listings on this site to give you an idea about Budapest real estate.
So how do I find out more?
Take a look at my Buyer / Tenant Agency Agreement:
Buyer / Tenant Agency Agreement (125.3 KiB)
Next: Property Finding Step by Step »
Topics: buying a home in Hungary, renting in Hungary, property search, property location, property search, search engine, buyer agent, Budapest property
Is it Necessary to Have a Buyer Agent in Hungary?
This entry is part 2 of 4 in the series Property Finding Services.
- Are Your Interests Represented?
- Is it Necessary to Have a Buyer Agent?
- Property Finding FAQ: What do You Do that I Can’t?
- Property Finding Step by Step
Why a special section on Buyer Agency?
Well, one of my reasons of putting this on my site is that I want you to enlist my Property Finding Services.
But what makes it interesting to You, the potential Buyer or Tenant, is the fact, that you might believe that the Real Estate Agent with whom you are working – sometimes on a daily basis – represents You and Your interests. Without certain disclosures, this definitely is not the case.
The Real Estate Agent, unless specifically disclosed otherwise, represents the Owner in any transaction. It is that Listing Agent’s fiduciary duty (where their loyalty lies) to protect their own client’s, the Owner’s position at all times.
Buyer Agency, may be a good option available to you
Simply put, Buyer Agency allows the realtor whom you work with, to put your interests above all others.
Example 1: You see a house advertised in a paper or on the internet. You contact the Listing Agent (who will be advertising the home) and make an appointment to see the house. The Listing Agent is friendly, informative, and tells you what you believe to be everything about the house. But the Listing Agent is hired, paid by, and represents the Owner, not you.
Example 2: You are working with a Real Estate Agent, who shows you 25 different homes over 3 weeks (that’s a nice number). By the end of the three weeks the Real Estate Agent knows all four of your children by name as well as all of your personal likes and dislikes, but does not offer Buyer Agency. You feel comfortable with the Real Estate Agent, revealing important personal information. Without Buyer Agency, “your” Real Estate Agent is paid by the Owner, or, in other cases, receives part of the commission of the Owner’s Listing Agent. This Real Estate Agent therefore owes loyalty to each and every one of those 25 Owners – not you. Any information you reveal to the Agent, must be relayed to the Sellers.
“Okay,” many buyers say, “so the Real Estate Agent represents the Seller and not me. Is that a big deal?”
Maybe not, but it is important to understand that if the Real Estate Agent is loyal to the the Seller, they cannot reveal certain things to you, the Buyer or Tenant:
- The reason for selling (unless the Seller authorizes it)
- Any concessions, in price or otherwise, that the Seller may be willing to give up
- Any conversations that the Seller and the Agent may have had
- Any information that could be detrimental to the Owner or give you an advantage.
Buyer Agency turns the tables
Enlisting the services of an exclusive Buyer Agent, you have the representation from the Agent whom You’re working with, not the Owner.
If you are represented by your Buyer Agent, some of the potential benefits include:
- Your Buyer Agent can reveal to you information about what price similar properties in the area have been listed for and sold for.
- Your Buyer Agent can reveal to you any information about the Owner that the Buyer Agent has been able to ascertain. This may include reasons for selling, potential concessions, or other information that may be to your advantage.
- Your Buyer Agent can also relay to you information about property value trends that may influence your decision or your negotiating power.
Is it necessary to have a Buyer Agent?
No. Thousands of Home Buyers have been well served dealing with the Owner’s Listing Agent (it used to be the only way it was done).
The important thing is to understand your options, so that you do not unintentionally accept less representation than you want.
Next: Property Finding FAQ: What do You Do that I Can’t? »
Topics: property purchase in Hungary, buyer agency, buyer agent, Property Finding Services, Budapest property, realtor
Are Your Interests Represented?
This entry is part 1 of 4 in the series Property Finding Services.
- Are Your Interests Represented?
- Is it Necessary to Have a Buyer Agent?
- Property Finding FAQ: What do You Do that I Can’t?
- Property Finding Step by Step
One of the most common misconceptions shared by a large number of Home Buyers and Tenants is that when working with a Real Estate Agent, he or she will “automatically” represent you.
Unless this is specifically discussed in a written contract, in all probability:
The Real Estate Agent, listing the Home Owner’s property, will be legally bound to represent the Home Owner and not the Buyer or Tenant.
The traditional relationship has been that a Real Estate Agent’s primary legal loyalty was to the Owner of the property. This relationship is in effect whether the Real Estate Agent is the listing agent, or working with a Home Buyer or Tenant. This situation causes many Buyers and Tenants to be confused: Buyers and Tenants assume that the Real Estate Agent who has been driving them around showing them houses for the last 3 weeks is representing them. In reality, the Real Estate Agent has been representing the Owners of the houses they viewed, and is bound to reveal to those Home Owners any information he or she knows about the Buyers or Tenants.
Buyer Agency changes that. The Home Buyer now has a choice in representation: the Listing Real Estate Agent can continue to represent the Home Owner in the transaction, and a different Real Estate Professional, a buyer’s representative or Buyer Agent can represent the Buyer or the Tenant. The Buyer (or Tenant) is now able to compete on a level playing field.
Types of Representations, and who the Real Estate Agent represents
OWNER REPRESENTATION (Listing Agency): The “default” situation. Unless specified to the contrary, all Real Estate Agents involved in a real estate transaction represent, and owe their loyalty to the Home Owner. If you contact a Real Estate Agent who has a property listed, that Listing Agent will receive a commission from – and always represent the interests of – the Home Owner.
BUYER REPRESENTATION (Buyer Agency: When a Realtor, Real Estate Agent or Broker represents the Buyer, that Buyer Agent owes loyalty to the Home Buyer.
If you enlist my Property Finding (Buyer Agency) services, I will search the market on your behalf, and show you properties listed by other real estate companies or by owners. I will be representing you, the Home Buyer or Tenant.
Not Understanding Representation Can Cost You Big Money
Let’s imagine that you decide to purchase a house from a listing Real Estate Agent who represents the Home Owner. You do not realize this, or do not pay attention, and believe the Real Estate Agent is also representing you as the Home Buyer. You tell to the Owner’s Real Estate Agent, “I will offer $300,000 for this home. The most I will give is $315,000.” That Owner’s Real Estate Agent is bound to disclose that you will give $315,000. On the other hand, if you made that statement to your Buyer Agent, your Buyer Agent would be bound not to disclose your top price and not to damage your negotiating power in any way. Instead, your Buyer Agent will do most or all of the negotiating for you. As you can see, who the Real Estate Agent represents makes a huge difference!
If you leave the representation question “as-is”, your Real Estate Agent will automatically represent the Owner in the transaction. To sum it up, if you want full representation, consider using the services of a Buyers Agent.
Next: Is it Necessary to Have a Buyer Agent? »
Topics: property purchase in Hungary, buyer representation, buyer agency, real estate agent, listing agent, buyer agent
Krisztina Palhegyi a certfied Realtor, has been a Home Search Specialist (Buyer Agent) in Budapest for over 13 years. If you are looking to rent or buy a home in the Budapest or the Buda suburbs, then you are in the right place.>