🔵 WHY ARE REAL ESTATE PRICES SO HIGH? WHO IS TO BLAME? | REAL ESTATE MARKET IN CROATIA |

Why are real estate prices high and unrealistic?
Real estate agencies play a big role in this. In Croatia, 90% of agencies operate with a non-exclusive representation contract - which means that one property can be advertised by several agencies, and the commission for the service is charged according to the "first come, first served" system.
In order for agents to justify their business to agency owners, they must collect as many properties as possible. And that's exactly where part of the problem lies.
In order to fill their base with real estate, agents do not choose - they accept all kinds of real estate, guided by the method of big numbers, in the hope that a "rich Russian" will stumble upon them.
Most agents do not have the courage (or the knowledge) to tell the real estate owner what is the real price of their real estate. And because of the unrealistic price of the property, not to accept it in an offer.
So, on the one hand, we have the majority of agencies, that will confirm this unrealistic price to the owner. And on the other hand, the rest of the agencies will refuse an unreasonable price. That minority just seems ridiculous and unprofessional.
Therefore, it is not surprising that the average time for selling real estate in Croatia is 3 years. We can confidently say that real estate agencies and portals serve as collectors of antiques, not as sales agencies.
Now the essence of the problem emerges. How does the agent know that he is not the only one selling that property? There is a fear that another agency will sell the property before him, which results in the agent's behaviour of not representing the seller's interest in order to achieve the best price possible. The agent lowers the price to the potential buyer so that it is he who will collect the commission and not a competing agency.
And so the property is advertised with an unrealistic price.
Let's say that the neighbour of the property owner also wants to sell his property. To get an approximate price, he searches through the ads. He finds in the ads that his neighbour is selling a house at an unrealistic price. Compare other ads on njuškalo.hr - he also finds unrealistic prices there. He concludes that the price of his property should be like the other prices in the ads - overrated.
You can see the reason for such chaos and why we have a disordered real estate market.
By solving the above-mentioned problems, everyone would actually benefit - the sellers would not be misled, sales would go much faster, agents would be more efficient, and client representation would be more effective.
*************************************************************
Subscribe ➜ goo.gl/POJ0h5
Share this property video: ➜ • 🔵 ZAŠTO SU CIJENE NEKR...
Apartments in Istria for sale ➜ • 🔵For sale 3 bedroom fl...
*************************************************************
WEB SITE : www.maris.hr/en/
FACEBOOK : / marisnekretnine
INSTAGRAM:bit.ly/2lFa1r3
LINKEDIN: bit.ly/2PoKRtm
☎️ [phone],
📲[phone]
📧 [e-mail]
Like, comment, share
#nekretnine #savjeti