The right answer is...MYTH.

Why?

We often hear in our practice the claim that brokers inflate property prices for their own benefit

Why is this NOT true? The fact is that property prices are unstable and tend to rise. But they have nothing to do with the broker's work. In fact, the real estate sector makes up a significant share of the economy and, like any such sector, is influenced by various factors. It is worth taking into account major events taking place around the world, the shortage and rising prices of construction materials, the refugee wave followed by a significant increase in demand, the shortage of certain types of apartments that are most sought after by the mass buyer/tenant, etc.

Let's start with the fact that determining the right market price for a property is the key to a quick deal. A property gets the most attention during the first few days to a week after it is listed on the market. This is also a key moment for most sellers and landlords. Many of them, pleased with the strong interest from buyers/tenants and brokers in their home, further increase the already listed asking price.

How to determine the market price correctly when selling/renting a property

First of all, the location of the property on offer is taken into account. 

This has the greatest influence on the price. However, do not be misled into thinking that by looking up the average price per sq m of properties in the area, that will be enough for you to determine a correct and fair asking price for your apartment.

It is also important to take into account the type of construction of the building in which the property you offer is located. 

The most preferred are new apartment buildings, followed by „old“ brick-built, EPK, panel construction, and timber beam construction. Usually, older types of construction also offer a lower market value.

Property condition. 

Also an important characteristic when determining the price. Whether it is a sale or a rental property, take into account the condition of the property you are offering.

Floor level and orientation are not such major factors in the property's value, but do not leave them off the list. 

For example, properties on a middle floor with west/east/south orientation are among the most preferred by buyers and tenants alike.

Last but not least - the property's status. 

Along with everything else, consider the status of the property you are listing. If, for example, you are offering a property of the „atelier“ type, it would be proper to compensate your future client, since they will have to go through several not-so-complicated procedures to settle the change of status.

Conclusion

In conclusion, we can say that the list of factors that affect the price of a property is quite long, but the broker does not appear anywhere on it. On the contrary - for a quick and valuable deal, seek out a professional who will guide you through the entire process of this difficult procedure of buying or selling, or renting out, real estate.