Poles do not use estate agents

Despite the rapid development and professionalisation of the property market in Poland over the last 16 years, we are still a long way from the level and mechanisms found on Western markets. In Poland very many people still try to sell a house or flat on their own, whereas in the developed economies of Western Europe, such as the United Kingdom or Denmark, over 90% of property transactions are carried out with the help of estate agents.

The property market in the United States

An example of a model property market is the United States, where, as in the United Kingdom and Denmark, listings put up for sale by owners themselves account for less than 10%. This is due above all to the maturity and continuous development of that country's property market. In addition, an important factor is Americans' awareness of the complex mechanisms by which it works, which leads them to use the services of professionals.

Why do Poles sell property on their own?

– "Looking through listings on the largest property portals and drawing on internal data, we can estimate that around 60-70% of private individuals try to sell a house or flat on their own, despite lacking knowledge of market prices and of the rules and mechanisms of the property market. To put it vividly, it is as if, instead of consulting a lawyer, everyone tried to defend themselves in court using information found on the Internet." – says Marta Kulawik, owner of the Katowice estate agency REMAX Gold.

The main reason Poles are afraid to trust estate agents is the widespread belief that an estate agent helping with a property transaction adds no value to what a potential seller can do alone. Moreover, they are seen as merely an additional cost that can be avoided by carrying out the transaction yourself. This stereotype is deeply rooted in Poland, which unfortunately means that the vast majority of people selling property on their own lose anywhere from a few to even several dozen per cent on such a transaction.

"Most often the seller's losses result from setting too high an initial asking price based on similar listings found on the Internet. On average these differ by about 20-30% from the final transaction price. Failing to set the right price for the property means it stays on the market for years, losing value in the process, and over time the price also has to be lowered to find a buyer." – adds Marta Kulawik.

READ ALSO – WHAT DOES AN ESTATE AGENT'S WORK INVOLVE?

Buying a property – with or without an agent?

The same goes for buying a property, because without knowledge of the local property market, when buying a flat or house on our own we may pay considerably more than it is really worth. On property portals it very often happens that similar properties differ in price by as much as 40%.

It is worth noting that estate agencies and the largest property portals run campaigns to educate the public about safety and the rules of the property market. Thanks to this, a person selling a property can make an informed choice about whether it is better to sell on their own or with an agent's help. They can also decide whether it is better to sign an open agreement or an exclusive agency agreement (umowa na wyłączność).

The property market in Katowice and in Poland continues to develop, drawing good examples from Western European countries and the United States, where using estate agents is commonplace. It will take a long time, however, before Poles begin to appreciate the work of an estate agent and the benefits it brings.