Private sale or agent?

[AlastairSC]

We have an apt in VI Hunyadi Tér. Building is still being renovated (2yrs now) - no tenants due to construction work (it's courtyard-facing). Friends of friends who have fallen in love with Bp are thinking of buying it for their own use. They don't seem bothered about the works.

Should we take this interest as indicating that there may be better offers out there? Or would we be better off just agreeing a figure, perhaps a bit lower than arms' length, and selling?

 

[budapest]

I don't think that anyone can really answer this question apart from yourself. Do you want to sell? What are your priorities at the minute? When do you foresee being able to get rent for the apartment again? Would the prospective buyers only buy if it was at a price, which was lower than market value?

Budapest has continued its static trajectory and for higher quality properties, prices haven't really fallen here like in other countries over the past 1-2 years.

 

[AlastairSC]

Thanks for that, Bp. As people can see, it's a while since we had rent. As of last year the flow has been the other way - not much but enough. Given that construction seems endless and we have other property to look after, perhaps it's time to move on. The reason for my doubts was that our original plan was to keep it until around Euro-joining time, to see if there was a general upswing, then sell either way.

We weren't expecting this interest, so it's thrown us off a bit....

I can see that you're right - it's not advice but opinions I should be asking for....

 

[budapest]

Loft constructions projects tend to take at least a year, possibly two. It does seem to be dragging on though, partly I assume because of legal and other administrative reasons.

As a rule of thumb, properties should appreciate by 20% after a high quality building renovation (new lift, etc.) in a good location. There are various considerations though, e.g. if the renovation affected the light your flat gets, or if it somehow has a negative effect on your security/position in the building, etc.

If you need the cash, then it would seem to make sense to sell up and move on now. Nobody is really predicting an upswing anytime within the next 2-3 years. After that, it's still a guess, but long-term prospects appear to be good. Rentability shouldn't be a major issue if your apartment is nice.

 

[Lollix]

If you have a buyer in your hand, that's a lot more than most agents have right now. Almost all buyers in the market are looking for fire-sale stuff, although I have heard that ordinary sales to first-time buyers etc are starting to pick up again after a disastrous few months.
Still, if you have a buyer and they are offering a price that suits you, and you want to sell, then go ahead. I'd be inclined to get a valuation from a local agency first though; they have sales data from recent sales of similar places in each locality and can give you an estimate of value in minutes. Try your local Duna office and give them the sq.m size and condition and ask for an estimate without committing yourself.