Pitfalls and advice in dealing with local agents

The real estate market is changing and clients are demanding a better level of service. Czechs are becoming informed at all levels and are embracing luxury living more thanever. As a result, unit sales of luxury properties have skyrocketed in major markets. But, has the level of service really kept pace with the price tags?

What customers want

Today, clients are looking to experts for advice and are willing to pay for it. They’re looking to architects and designers in helping create the right house or flat, from bathrooms and kitchens to walk-in closets, from landscaping of the garden or patio all the way to design of the furniture. Built-in wardrobes are more prevalent than ever before, and are usually the combined effort of a designer and a cabinetmaker. Today’s buyer is also seeking a higher standard of finishings. The modern trend of larger tiles and lighter colors in the bathrooms, as well as cleancut fixtures, adds to the brightness of the room and makes it appear larger.

Placement in the given building and layout have become increasingly important aspects in any buying decision. Facing the proper side of the building and having an enviable view is a must for many buyers, and the desire for terraces is on a steady rise, including the ways to enhance them: whirlpool baths, showers, pergolas, benkeraii wood for the patio, quality patio furniture and flower arrangements are all popular. The number of units in project is very important; among more expensive projects, the preference is for a smaller building with 10 to 20 units. More attention is also being given to layout, and more people are asking for changes. Builders are often confronted with requests for changes that are impossible to make, especially in the later stages of a project.

Location, of course, plays the most important role in the higher priced and luxury properties. And more attention is given to security for not only the unit, but for the building and common areas as well. This may include guards, a reception area, a surveillance system and light sensors, security foils for windows, or fenced grounds with a gate – just to name few common options.

Customers are increasingly making their choices based on services and amenities, so a number of buildings are starting to offer swimming pools, sauna, fitness and other sports facilities. Unlike in the past, designer fixtures and brand name appliances are starting to be requisite parts of the package. Window coverings, air conditioning, fireplaces, home entertainment centers and all the other technological amenities of the 21st Century are now the “extras” that can make or break the deal.

Some enduring issues for improving services:

Training and regulation

The only available courses at the moment for a real estate agent to become schooled in the profession are offered by the real estate association ARK. However, very few agents have actually undergone the training, since it is not required by the government. In some cases training is offered by individual companies to their staff, but most agents here have learned the ropes from more experienced colleagues. Really, all you need is a Živnostenský list.

Overuse of the term “luxury”

The word “luxury” was and still is too often used in the Czech Republic by real estate agents, yet many properties thus described have no luxury features. The issue is complicated by the fact that the term has a loose and subjective definition. Is it necessary for agents or clients to go to inspect the property every time just to find out if the adjective “luxury” was properly applied? Perhaps it boils down to the caveat “Beauty is in the eyes of the beholder”.

Specialized services

Overall the choices of more highly priced units (condominiums) keeps improving, and with greater competition in the market it will only get better.

However, not enough is being done to improve the services associated with living in better buildings: building management, cleaning staff, security staff, repair or maintenance and so on. Is service staff in Prague poorly trained or underpaid, or is there no appreciation for the work they do?

Purchasing trends to note:

Price is no longer the only factor

Buyers used to be very inflexible on price, referring to it almost as gospel. Now, they are willing to shift their original price target by 20 or even 30 percent if they are offered more “luxury features” and the unit is presented properly.The quality remains long after the price is forgotten.

Buyers are recognizing that if they spend little extra, they will get more to enjoy and, when the time comes to sell, they will get more of a return on their investment.

Customers are becoming better educated

It’s up to the agent to make sure that that whole experience of buying and selling is a positive one. Many customers are not afraid to say what they want – in fact, they now often demand it. They know that they are functioning in a buyers’ market and have the advantage of turning to the competition. Perhaps they’re becoming familiar with the slogan “The Customer is King”, or they may have made similar purchases in other countries.

Taking a long-term view

This should be the goal of any transaction. The agent should be thinking, “I want to build a relationship and have this client stay with me not only next week, but next year. I hope to do business with their friends, their colleagues, or even their sons and daughters.” This is a gradually changing attitude, and agents no longer jump from agency to agency every few months. In short, they are beginning to look at their work as a profession and not just as a way to make the next deal.

Win-win situations

It is an art of negotiation to make sure each party in the transaction feel good about the deal. Selling is not about getting everything your way; the key is to work around any issues in order to find a solution acceptable for all sides and to make the client walk away with a sense of satisfaction.

The right agent

Since buying a home or apartment is the single largest investment many clients make in their life, the right choice of agent may help you have a better experience when buying or selling. The agent you trust with such a transaction should:
• Have expertise within the real estate industry and put the client’s interest first
• Bring a devoted competence to service excellence by offering confidential, personalized service, and an understanding of the client’s current needs and future goals
• Provide objective information about each property with necessary details in order to make decisions easier for clients
• Show a proven commitment to the strict “Code of Ethics and Standards of Business Practice”