Whether you want to or not, there may come a time when you need to sell your
property in Hungary. Perhaps it's because you can no longer manage the place yourself. Or you need the money from the sale. Or maybe it's because you have a new home you want to buy yourself. In any case, putting your real estate in Hungary for sale requires a lot more work than you realize. You need to gather important documents, pay important costs, and more. To help you start, take a look at this real estate guide. It shares all the basics of the process.
What Are The Costs of Selling Your Property in Hungary?
Selling your property in Hungary will have you spending a lot of money. The process requires a number of costs, from taxes to fees and more. And your real estate sale will only be legitimate once you pay them. They include the notary fees, land register fees, transfer-related fees, the VAT, your personal income tax (Hungary's version of the
capital gains tax), and your real estate agent's commission if you hired one. The good news is that most of these costs are paid via the property value that the buyer pays you. But some, namely your personal income tax, are paid on top of all that.
Should You Sell Your Property Privately in Hungary?
If you want to lessen said costs, a good option is to sell your real estate in Hungary
on your own. This way, you don't have to pay any
real estate agent their pricey commission. And yes, hiring one isn't even required. Though it'd help a lot, especially if you have a lot on your plate aside from the sale. But if you have more time to devote to the process and you're confident you can do this properly, then go for it. Though it's not really recommended for first-timers. Specifically, those who don't even understand the language.
How Do You Make a Property Valuation in Hungary?
One of the first steps in selling your real estate in Hungary is conducting a property valuation. If you're
selling through real estate, the firm or broker you hired will likely include this in their many services. If not, you can hire a third-party company to do it instead. Most of the time, the buyer will also conduct their own valuation. Or more specifically, the financial institution where they're
getting their mortgage. It's a common part of the application process. In any case, you will need to do this as the seller since this will determine the true value of your property. And from there, you can set an initial asking price.
How Do You Survey Your Property for Selling?
More than just the valuation, you'd do well to conduct your own survey of the property. Why? Because if there's anything that needs fixing or could do for some renovating, you can do it. This will inevitably increase the value of the place, resulting in a better figure after the valuation. Thanks to that, you can set an even higher initial asking price. Sounds good, right? In any case, know that many buyers will look for
many things in a property they'll plan to buy. And you'll only know if your property has all that if you conduct your own surveys prior to putting it on the market.
How Do You Market Your Property in Hungary?
Once you think you're ready to put your property in Hungary for sale, it's time to market. As you already know, practically everything is up on the internet nowadays. So submitting your place to a
top property listing website is your best bet. Every single buyer goes to these platforms when they're searching for real estate to purchase. And for property portals like
Ingatlan and
IngatlanBazar, even international buyers can check out your place. These platforms cater to foreigners as well, especially since they come in the English language too!
What is The Process of Notarizing Your Property in Hungary?
Don't forget to hire a trustworthy notary to help you sell your property in Hungary. This is still a legal process and you have to get all the documents notarized before it's considered legitimate. More often than not, what will happen is the notary will draw up the documents—contracts, agreements, and the like—you and the buyer will both sign them and afterward, they'll be notarized. Only then can these documents be legally binding. In some cases, either you or the buyer can authorize your solicitors to serve as each other's representatives. This will earn them the right to sign the documents for you.
What Documents Do You Need To Sell Your Property?
To sell your real estate in Hungary, you will need a few important documents. They include the title deed, the Energy Performance Certificate (EPC), other certificates that prove how well the property is running, mortgage documents, and just to be safe, some proof of identity too. Do take note that some of these requirements come from government offices and it might take a long time for you to get them. This is why you ought to start the selling process when you already have the documents at hand. If not, it will take you a long time to complete the sale.
How Do You Set Up the Sale & Purchase Contract?
The sale & purchase agreement, also known as the purchase agreement, is among the most important documents in the process. In many ways, it's what officially starts the sale. Your notary will draw it up, you can include your own terms and conditions on it, and once signed by both parties, it will be notarized. And once it's notarized, it will legally bind you and the buyer to the sale. The latter will then pay you a 20% deposit. If you ever decide to bow out of the agreement after signing, you'll be required to pay back the buyer double the amount of the deposit they paid you.
What are The Legal Issues in Selling Your Property in Hungary?
As you may have already noticed, there are
a lot of legal issues that come with selling your property in Hungary. For one thing, you have to ensure the ownership of the place before you put it up for sale. Get your solicitor to check with the Land Registry and see if you are, in fact, the listed owner on the title deed. If not, get this fixed right away. You won't be legally allowed to sell the property if your name isn't on the title deed. Moreover, always think before signing any contract. As mentioned earlier, some of these documents contain legal consequences if you ever decide to bow out of the agreement.
How Long is The Process of Selling Your Property?
The length of time it will take for you to sell your real estate in Hungary depends on various factors. As mentioned earlier, if you don't start the process prepared—meaning you've yet to gather all the important documents—then it will prolong the sale. If you're not careful, it can easily take you around half a year to sell your place. But if you're more prepared at the start, and the buyer is just as prepared too, then the sale will only take around one to two months. Possibly three months if other problems arise.
What are The Best Tips for Selling Property in Hungary?
And finally, here are
some important tips! When you hire a notary to help you sell your property in Hungary, choose one that's easy to communicate with. Especially if you're not in Hungary yourself. Remember that part of your notary's role is to act as your representative throughout the sale. They'll be able to do it properly if you can talk to them regularly. Moreover, remember to set a move-out date in any of the contracts drawn up for the sale. Once you've sold your property, you'll no longer have any legal rights to it. You wouldn't want the new owner to throw you out, would you? To avoid such confusion and a humiliating situation, set a move-out date!
Are you planning to sell your property in Hungary? Before you start the process, it pays to a little more about the basics. Let this real estate guide help you with that, especially if this is your first time doing this endeavor!
