Prague Flats Selling on Average 7.62% Under First Advertised Price

How do you define what is a real property price? It surely is not what you see online on sreality.cz or other web servers. Most statistics you can find work with advertised prices, or the last known advertised prices of real estate, rather than the real hard data.

The real price for the purpose of this article is how much was the property really sold for,  and for that, you need to go to the land registry.

Getting the data from the land registry can be done by anyone, however, it requires certain know-how and a visit to the land registry in person, via their website, or through other services like valuo.cz where you can purchase data on the real prices from your neighborhood.

Valuo has collected data for a few years now and compares advertised prices with actual prices from the land registry.

If you would have guessed the real prices are lower than advertised, you are correct. But by how much are they lower? It is common practice that real estate agencies set the prices a bit above the expected price of the owner just so that they have some room for negotiations.

In recent years, the average difference is getting higher and higher, as you can see from the graph and information below. On average, in 2023, if we look at the first advertised price and compare it to the actual sale price (realized price), the difference is a staggering 579,206 CZK for flats or 7.62% in Prague.

This means if you see a flat for sale at 10,000,000 CZK, most likely it will be sold for 9,402,794 CZK. It’s important to mention that this is compared to the first advertised price. Agencies often reduce the price and if we look at the real price versus the last known online price, it is only 2.23% different.

Now of course this is an average so one should not take it literally, but this data shows you how the market looks right now.

In response to a regular question from our clients: “can we negotiate on the price”, these days I reply: of course.

It is still a buyer’s market, but watch out as the data is from 2023. This year, 2024, I can already see an extreme increase of buyers, leading to bigger competition, and presumably fewer discounts. I have even seen (again) bidding on some properties, as the market is getting hotter given the recent decrease in mortgage rates.