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How to successfully sell real estate in Hungary?

Ungarn Immobilien
Do you have your house in Hungary or another property and would like to sell it stress-free? No problem!

In this article you will find hints on selling and 11 valuable tips to make the sales process smooth and efficient.

The real estate market in Hungary is booming and there are many potential buyers looking for a new home, a holiday home on Lake Balaton or an investment opportunity.

Why are so many selling their houses in Hungary?


There are 5 reasons for this:
  • Hungary is not a rental market
  • Increasing demand also from abroad
  • Inheritances
  • Foreclosures
  • Change in living conditions

Basically, it must be noted that Hungary does not have a large rental market. Around 90% of the properties are self-owned. The rental market is largely limited to the larger cities. So when Hungarians change their properties, it usually boils down to a sale.

The demand for houses in Hungary has increased in recent years. Last but not least, continued growing foreign demand from Western Europe due to unsatisfactory political developments as well as increased investments in Hungary contribute to this.

There are no statistics on buyers from the EU. However, based on our experience, purchases rose sharply again in 2024 after a lull in 2023. Foreign purchases by non-EU citizens are recorded in the statistics. Here, almost 3,000 properties were sold to foreigners in 2022 and the trend is rising, with the largest group being Chinese, followed by Russians and Ukrainians.

Some Hungarians see the booming real estate market as an opportunity to sell their properties at attractive prices, which expands the offer.

Many properties in Hungary are inherited when the older generation dies and the next generation has little idea what to do with the country houses in the villages, as the younger generation is drawn to the larger cities. Therefore there is a larger offering in the countryside.

In Hungary, too, the economic situation for the lower income groups has become tense in recent years due to inflation. Foreclosures occur more often when loans or utility bills cannot be serviced. More than 20,000 properties were foreclosed on in 2022. With an average value of around EUR 23,000, these are usually properties in the lowest price segment. Most are worth less than 12,000 EUR, so not necessarily properties for foreign investors.

Of course, living conditions also change. We often end up with well-maintained divorce properties that are sold as part of the separation in order to get rid of the partner or to acquire new properties. The growing economic independence of life partners leads to easier separation and thus also the liquidation of real estate.

Why sell your house in Hungary?


Selling your house in Hungary can take place for various reasons, some of which have already been cited as reasons for the increasing number of properties for sale in Hungary.

There are logical as well as emotional reasons to sell your property in Hungary. Most of the time, living conditions have changed.

Buyers often ask the reasons for the sale.

Even if we don't actively ask sellers about the reasons, experience shows that there are a few reasons that we come across again and again:
  • Separation from partner
  • Death of partner
  • Illness and the desire for permanent treatment in the home country
  • Professional change and thus regional re-orientation
  • Downsizing due to age, desire for new building
  • Inheritance of a property in Hungary and no interest
  • Moving to another region of Hungary
  • Emigration from Hungary to another country
  • Other financial obligations or business opportunities
  • Assessment of a good time in the market
  • Professional builders who sell regularly

Every home sale can also be an opportunity for a fresh start to focus on new life goals. Since most home sellers don't go through this process regularly, it helps to get some orientation and follow a few tips.

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Preparation for selling a house in Hungary


Tip 1: Start by thoroughly inspecting your home and making any repairs, renovations or cosmetic improvements to make it more attractive. The first impression is crucial!

Every now and then we are offered houses that are clearly in poor condition. These often include larger houses from owners abroad, some of whom have not maintained the property much over the years. The condition of the houses and the price expectations are then difficult to convey to interested parties.

Tip 2: In addition to renovations and repairs, you have to pay attention to clean documentation.

Customers from Germany and Switzerland in particular like to ask for detailed exposés, as is usual in Switzerland and Germany.

Exposés are not necessarily common in Hungary. However, complete documentation, which can be made available to interested parties upon request, is already a differentiating feature.

Find all the basic documents about the house:
  • Land register extract
  • Floor plans
  • Area plan
  • Building permits for renovations
  • Construction plans including wiring diagram for electricity and water if available
  • Operating cost compilation

Tip 3: Before the first sales steps, make sure that the land register extract, area plan and reality match or arrange for additions or subsequently obtain building permits for unregistered building areas.

Don't trust the previous owner's assurances that everything is fine. Check for yourself!

Nothing is more annoying for an interested party when documents are missing, there are unwanted entries in the land register or unclear land, building or ownership circumstances arise.

In practice, we often experience that a sale of a property in Hungary fails if it takes weeks or months to 'cure' the documents.

If there is no floor plan for the house, which happens quite often in Hungary, it is up to you whether it is worth hiring an architect. A hand drawing with the essential dimensions often helps to make the dimensions clear to the interested party.

Tip 4: Bonus of professional documentation is a compilation of the operating costs to give the interested party an overview of the additional costs of your house in Hungary. A basic explanation of the additional costs of a house in Hungary can also be found in our FAQ.

Well prepared, you can go into the sales process calmly and make a professional, self-confident impression.

Tip 5: After 10 years, even an unauthorized addition or conversion is protected. Although it is not legal, it is tolerated.

The role of a professional broker and how to choose it


Working with a professional real estate agent can make the selling process much easier. An experienced agent knows the local market intimately and can help you set the best price for your home.

Tip 6: Compare houses in Hungary on reputable portals in advance to get an idea of ​​the price range. Please remember: Just because prices are advertised in offers, they are not necessarily market prices that can be achieved when selling.

Additionally, an agent has access to a wide network of potential buyers, increasing the chances of your home selling faster.

Nowadays, online marketing is an essential part of generating reach and reaching as many interested parties as possible. We have worked hard on it and are at the top of Google & Co. for most relevant searches for real estate in Hungary and especially houses on Lake Balaton.

Another benefit of working with a broker is that they can manage the entire sales process for you. This includes conducting viewings, negotiating offers and completing the necessary documentation. This gives you more time to focus on other aspects of your life without having to constantly worry about the sales process.

Additionally, a real estate agent can provide valuable advice on how to present your home. He can help you present your home in the best possible way to make the best impression on potential buyers. This can have a significant impact on the selling price and the time it takes to find a buyer.

Here are a few advantages of professional real estate agents at a glance:
  • Wide range of sales channels
  • Greater reach
  • Existing customer base with potential interested parties
  • Creation of professional photos and sales texts
  • Viewings, even if you are not there, including key service
  • Handling the sales process with experience and personal support for challenges with authorities, lawyers or banks due to mortgages
  • Network of tradesmen, in case renovation work needs to be carried out

Choosing the right agent to sell your property in Hungary can be crucial to success. But how to check the trustworthiness of the broker?

Tip 7: Evaluate your preferred broker before you decide.

Here are some questions you can ask yourself when evaluating a broker:
  • Does your broker have a reputable presence?
  • Can your agent provide multiple positive references?
  • Check customer statements on rating platforms such as GoogleBusiness Profil or similar
  • Does your broker have sufficient reach to address potential prospects?
  • Does the broker have reputable multilingual lawyers?
  • Does the local agent advise you?
  • Does the broker give you time and leeway? Never let a broker put you under time pressure.

Good and reputable brokers will answer all your questions and focus on transparency and honesty. You are not interested in a quick conclusion. Rather, satisfied customers and your own reputation are the focus of long-term success.

As English-speaking real estate agent in Hungary, we help our customers compile the documents and make any corrections with the help of our architects and the authorities. We will take you by the hand and guide you through the process of selling your house in Hungary.

Our professional photographer takes compelling photos, often including drone footage, that help highlight the benefits of each property.

Tip 8: Please clean and tidy up the house before taking photos.

It's always interesting to see the condition in which customers have photos taken. In some cases the kitchen is neither tidy nor the beds made. This makes professional presentation difficult.

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The importance of determining market value


Pricing is a crucial factor when selling your home. A price that is too high can deter potential buyers from even viewing, while a price that is too low can result in you leaving money on the table.

Thorough market knowledge, taking into account current market trends and demand in the specific region, is therefore essential in order to determine the optimal and market-oriented price for your property.

Tip 9: A fair market price is the basis for a sale within a realistic time frame. Don't set dream prices, trust the experience of brokers or appraisers.

We will help you determine a fair market price for your property in order to sell your house in Hungary in a timely manner. Alternatively, we have valuers in our network who can prepare a detailed valuation report for your property.

There are two phenomena among house sellers in Hungary that make a successful sale difficult.

Emotional pricing
It is understandable that sellers who have built their own house in Hungary or have owned it for a long time have an emotional attachment. Therefore, emotional prices are often brought into play by sellers, which unfortunately do not correspond to the current market conditions.

Speculative pricing
Due to the ongoing boom in the Hungarian real estate market and the perceived development of property prices in Hungary, some sellers also see the opportunity to achieve exceptionally high prices or at least attempt to do so. The target audience is usually foreign customers without experience in the Hungarian real estate market.

In both cases there is the possibility of a lucky strike if the 'right' interested party comes along and exactly what they want is met. This is rather rare and usually only applies to very exclusive houses and villas or houses with clear unique selling points.

Such unique selling points include:
  • Special architecture of the house and the interior construction
  • Single position
  • Country houses, mansions and castles
  • Special houses on exclusive vineyards where there are no longer any building permits
  • Houses with direct access to the lake
  • Houses in the forest
  • Houses with unique views

In almost all cases where premium prices are achieved, these are properties in the medium to upper price segment, which differ significantly from average houses.

A renovated farmhouse, a house with a pool, with beautiful wooden floors, a fireplace, a solar system or a double garage is more likely to be considered standard in this context.

If prices are not in line with the market, the seller definitely has to be patient and tolerate an extended sales process, as the market has to look for a needle in a haystack. Often the broker is changed or the price is adjusted after a year due to a lack of interest. Both could have been avoided by setting prices in line with the market.

The legal basis for selling a house in Hungary


Selling a house in Hungary is not possible without a legal representative, as the legal representative has to apply for changes to the land register.

As a rule, in Hungary you hire a lawyer to draft the contract, not necessarily a notary.

In Hungary, the costs of the lawyer are borne by the buyer, even if the lawyer is obliged to act as a neutral authority to advise both parties equally.

The contract is legally drawn up in Hungarian. All our lawyers are multilingual and draw up all contracts in the national language of the contracting parties in addition to the Hungarian language.

In order to fulfill the legal cornerstones of a contract, the following data must be available, which we or the selected lawyer requests from the contracting parties:
  • Passport/ID
  • Residence address
  • Mother's full name and maiden name
  • Land register extract with land number
  • Address of the property
  • Ownership
  • Debits and other entries
  • Energy certificate
  • Tax number
  • Any mortgage or loan certificates
  • Authority to sell if owners are not on site
  • Waiver of right of first refusal if you are not the full owner of the property
  • Purchase price and purchase price processing
  • Consent from the youth welfare office if minors own property

Any registered usufruct rights will be registered with the land registry office by the lawyer with your consent as part of the purchase contract.

The lawyer can also support you in resolving mortgages. An existing mortgage is often replaced by the down payment of the purchase price, which the legal representative then records in the contract.

If the owner is not 100% owner of the property or land, the property cannot be sold until the co-owner has given a waiver of the right of first refusal.

Tip 10: Obtain the waiver well in advance. Otherwise, the co-owner must be present in person when the contract is concluded and there may be last-minute discussions.

Tax implications of selling real estate - How much tax do you have to pay when selling real estate in Hungary?


In Hungary, when selling a property within 5 years of purchase, speculation taxes are charged on the difference to the original purchase price.

It is irrelevant whether it is a residential building, a holiday home, a commercial building, an apartment or a piece of land.

If you have income from the sale of the property, you must pay 15% of it as tax. The assessment basis is the net proceeds less documented investments. The tax amount is reduced after years of ownership.

We also have detailed documentation of the taxes on sales of real estate in Hungary compiled for you.

Purchase and purchase price payment as part of the real estate transfer


When it comes to money you should look twice. Therefore, here is a brief explanation on the subject of purchase price processing.

In principle, freedom of contract exists in Hungary, so that sellers and buyers can freely determine the modalities. But there are a few special features in Hungarian law.

It is common practice to pay a deposit when concluding the contract or within a short period of time after concluding the contract. This is usually in the order of 10-20%. The deposit is defined as deposit in Hungary.

According to Hungarian law, the buyer loses the deposit if the contract falls through for reasons for which the buyer is responsible. However, if the seller culpably breaks the contract, he must pay back twice the deposit.

Every lawyer is able to process payment flows via a blocked account. This is particularly recommended for larger sums or contracts where the payout is linked to certain conditions.

Tip 11: Be flexible. It often happens that prospective buyers first have to sell their properties in their home countries in order to raise the capital to buy them again.

Flexibility in terms of payment is recommended here. You can usually agree on a final payment deadline within several months or with interim payments.

Conclusion: The stress-free way to sell your house in Hungary

In summary, selling your home in Hungary can be a stress-free process if you take the right steps. From the thorough preparation and presentation of your property to optimal pricing and consideration of tax aspects, there are numerous ways to optimize the sales process.

Working with a professional real estate agent can also help you keep track and clarify all legal aspects.

Take advantage of the current real estate market and ensure your home is presented in the best possible way to attract the interest of potential buyers.

Extra Tip: Trust your favorite broker!

We are happy to help you find solvent buyers. Contact us for an initial non-binding conversation. There are no initial costs for recording your property and presenting it. Our commission is only due upon the successful sale of your property. This means a risk-free presentation.

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With these tips you will be well prepared to sell your house in Hungary successfully and stress-free. Good luck selling your property!

If you're already in real estate search mode, here are our main property types in Hungary and Lake Balaton:

Houses in Hungary
Apartments in Hungary
Villas in Hungary
Houses at lake Balaton
Apartments in Hungary

Author: Dr. Peik Langerwisch

After completing his studies in business administration with a degree in business administration and a magna cum laude doctorate in management, the author worked for twenty years in global management consultancies and banks and has now been using his expertise to act as a real estate agent for real estate in Hungary for several years.

Brief overview of expertise and career

Sources used:
Immoline
24hu
Index
Portfolio RTL Hungary