Go Back  British Expats > Living & Moving Abroad > Europe > Hungary
Reload this Page >

Advice for newbie required !

Advice for newbie required !

Old Mar 14th 2017, 5:40 pm
  #1  
Forum Regular
Thread Starter
 
Joined: Jan 2017
Location: Zala County
Posts: 289
hobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond repute
Default Advice for newbie required !

Hi, I am looking to buy a property in Hungary and have found a house through the internet that I am very interested in. It looks like a legitimate established site and the owner of the agency is pleasant to talk to. The way it works is a 10% depsit is paid in cash and the balance paid into an escrow account. The lawyer appointed by the agency acts for both the seller and buyer. Firstly, is this a normal type of procedure in Hungary? My next question is to wether anyone has heard of or used the agency....it is bases in Austria, deals with properties in West Hungary and the agency is called "Casa Mia". Any advice gratefully recived as I want to safeguard my money as much as possible ! Many thanks in advance.
hobgoblins is offline  
Old Mar 14th 2017, 9:10 pm
  #2  
Forum Regular
 
Joined: Jul 2016
Location: Szeged
Posts: 284
Szeged is an unknown quantity at this point
Default Re: Advice for newbie required !

The procedure you describe is quite normal. However, in terms of trust I would go to the equivalent of the Austrian "Lawyers Check" website (i.e. like https://www.ugyved.net/ in Hungary) where you can check if they are officially recognised by their own profession/peers (their own authority/organisation/governing body/etc). If they are on that register, and therefore legit, then any mistrust/doubt you may have should disappear.

The law firms' escrow account means your money is NOT sent/given to the seller until everyone is happy with the sale and the final contract has been signed.

The deposit: If the seller backs out of the sale, it means they have to pay you double. If you back out they get to keep your deposit.

You gut instinct must tell you whether or not something feels right or wrong. So if you like the sound of the agent, like the wording on their website etc.......follow it.
Szeged is offline  
Old Mar 15th 2017, 7:49 am
  #3  
BE Forum Addict
 
Joined: Nov 2012
Posts: 2,094
Peter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond repute
Default Re: Advice for newbie required !

Here it is quite usual for one solicitor to act for both parties, although I have never come to terms with the conflict of interest issue. However it is normal for the buyer to have (and pay for) the solicitor. I would be nervous about the solicitor working for the seller !!
The agency first and foremost work for themselves, second in line is the seller - they pay the commission, and third in line is the buyer. Whilst I am a cynic it is buyer beware. If you are third in line and the seller, the agent and their solicitor are all looking to pay for their mortgages or BMWs out of the money you give them - be careful !!

Properties are often advertised in several places, look around to see if the property you like is advertised elsewhere - and check that the price is the same as that of the agency. It is not unkonwn for agencies to inflate the price for foreigners. Also look at similar properties in the same village/town and compare prices, not just agency properties but private sales as well, its worth getting a Hungarian to knock on doors to ask about prices in your selectded location

The only reason that the Hungarian property is on with an Austrian agency is that the agency will have given a better price forecast than a Hungarian agent - probably because thay are expecting to sell at a higher price to a foreigner - you !!
Peter_in_Hungary is offline  
Old Mar 15th 2017, 9:45 am
  #4  
Account Closed
 
Joined: Dec 2011
Posts: 0
scrubbedexpat0105 is an unknown quantity at this point
Default Re: Advice for newbie required !

Casa Mia have been around for at least 15 years; I don't think you need to worry about them disappearing with your money.

What you have to appreciate is that an estate agent will probably drive you around the villages and show you perhaps a dozen houses on one day, and if you choose one, set up a meeting with the solicitor. For that, he will charge you a fee equivalent to several months' salary for a Hungarian. He will also be aiming for the best price possible – meaning the highest price possible!

Any Hungarian will tell you that's an absolute rip-off. But the alternative is probably to spend weeks touring the Hungarian countryside yourself, and you would still need a Hungarian-speaker to help you.

You might want to look at Keeling (Hungary Real Estate, Vacation Homes, Planning, Building, Renovation, Management, Investment), who are in the same area. They have a different approach: they are more bespoke renovators than estate agents.

Re the solicitor acting for both parties: I'm not sure whether this is technically correct, but the solicitor in this case is acting more like a notary. It's standard procedure in Germany for example for a notary to act for both parties to a property sale. Technically he acts for both parties but in terms of what he does, compared to the system in England and Wales, it might be more accurate to say that he acts for neither.

The real question is why you wish to buy a property in Hungary.

Last edited by scrubbedexpat0105; Mar 15th 2017 at 9:46 am. Reason: link
scrubbedexpat0105 is offline  
Old Mar 15th 2017, 12:45 pm
  #5  
BE Forum Addict
 
Joined: Dec 2009
Posts: 2,765
FenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond repute
Default Re: Advice for newbie required !

Have you actually visited the property to have a look at it? Don't just buy it off the internet. One such British/South African couple did that .... they appeared on a UK TV programme 'New Lives In The Wild'. It wasn't exactly wild but like isolated depending on your own perspective of living in rural places.

Just as location, location, location is important so is ... research, research, research!
FenTiger is offline  
Old Mar 15th 2017, 1:24 pm
  #6  
BE Enthusiast
 
Joined: Nov 2015
Posts: 413
enter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond repute
Default Re: Advice for newbie required !

There is plenty of advice in the forums to read on areas, non when we were looking. Anyone who buys from pictures/information on the internet is mad, you wouldn't do that in UK. I think you should get a flight over here for 2 weeks +, a good map, SatNav (invaluable) and drive around to get the feel of different areas/villages.There are plenty of private sales (Elado) with phone numbers, also Estate Agents.Not going into great detail a translator would be helpful but it is amazing using sign language and write down key words in Hungarian yes/no/how much etc etc. You must do your reading and groundwork to give you a head start. There are plenty of B&B's around, money exchange Tesco/Interspar etc are not too bad for rates if you do not "penny pinch".
enter is offline  
Old Mar 15th 2017, 1:24 pm
  #7  
BE Enthusiast
 
Joined: Nov 2015
Posts: 413
enter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond repute
Default Re: Advice for newbie required !

I would stay away from Roma areas.
enter is offline  
Old Mar 15th 2017, 5:30 pm
  #8  
BE Forum Addict
 
Joined: Dec 2009
Posts: 2,765
FenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond reputeFenTiger has a reputation beyond repute
Default Re: Advice for newbie required !

Originally Posted by enter
There is plenty of advice in the forums to read on areas, non when we were looking. Anyone who buys from pictures/information on the internet is mad, you wouldn't do that in UK. I think you should get a flight over here for 2 weeks +, a good map, SatNav (invaluable) and drive around to get the feel of different areas/villages.There are plenty of private sales (Elado) with phone numbers, also Estate Agents.Not going into great detail a translator would be helpful but it is amazing using sign language and write down key words in Hungarian yes/no/how much etc etc. You must do your reading and groundwork to give you a head start. There are plenty of B&B's around, money exchange Tesco/Interspar etc are not too bad for rates if you do not "penny pinch".
Sign Language - you got to be kidding. I've used it everywhere I've travelled but two countries stand out as negative in that aspect .... France and Hungary. My wife's family and neighbours give blank looks whenever I've used it and I'm an "expert" being Deaf myself!!! But hey, no problem with Deaf Hungarian friends!!!

Szeged has a good website with useful advice.
FenTiger is offline  
Old Mar 15th 2017, 5:35 pm
  #9  
BE Enthusiast
 
Joined: Nov 2015
Posts: 413
enter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond reputeenter has a reputation beyond repute
Default Re: Advice for newbie required !

Works for me
enter is offline  
Old Mar 15th 2017, 9:12 pm
  #10  
Forum Regular
Thread Starter
 
Joined: Jan 2017
Location: Zala County
Posts: 289
hobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond reputehobgoblins has a reputation beyond repute
Default Re: Advice for newbie required !

Many thanks for all of your replies! I am flying out on Friday and will be viewing the property on Saturday along with a few others although the main property is the one I feel is the right one. I will have a Hungarian friend accompanying me and he will be asking all of the right questions around the village - he says that the owner of the village shop knows everyone and will be a good source of information! I know that the property has been for sale for some time and so I s hould have some bargaining room on the price....but I also need to double check the reasons it has been for sale for some time....the agency has given a plausible reason but I will investigate furter ! I will update you after I have viwed the property !
hobgoblins is offline  
Old Mar 15th 2017, 9:50 pm
  #11  
Account Closed
 
Joined: Dec 2011
Posts: 0
scrubbedexpat0105 is an unknown quantity at this point
Default Re: Advice for newbie required !

Originally Posted by hobgoblins
I also need to double check the reasons it has been for sale for some time
There may be particular reasons, but the general reason is simply rural flight and the resulting oversupply of property.

Good luck!
scrubbedexpat0105 is offline  
Old Mar 16th 2017, 6:18 am
  #12  
BE Forum Addict
 
Joined: Nov 2012
Posts: 2,094
Peter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond repute
Default Re: Advice for newbie required !

What Watchpost said

Also there is a lot of property on the market where the owner thinks of a price and is happy to wait until someone comes along and pays the (inflated) price. I have known houses in villages to be on the market for 10 years or more.

There are several construction methods used for the older houses, brick or block - if you are lickey, stone / rubble walls and mud brick (= adobe or vályogtégla in hungarian) which personally I would not touch with the proverbial barge pole. Insulation in older houses is typically a joke.

I don't know how knowledgeable you are about structures but cracks and bows in walls, which will often be dismissed as minor by agents are indications of either subsidence or roof problems. A lot of the older propereties will have foundations that fall way short of modern standards, which is in itself is not an issue - providing thea are up to the job, which sometimes time proves they are not - and so the subsidence happens. In my area it is not uncommon to see older houses with cracks at the corners where the corner has dropped due to insufficent foundations. Getting a structural survey is not as easy as in the UK but can be done.
Peter_in_Hungary is offline  
Old Mar 16th 2017, 7:37 am
  #13  
BE Enthusiast
 
Joined: Feb 2014
Posts: 568
jetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond repute
Default Re: Advice for newbie required !

In a village near us where we drive through going up to Budapest there is a house that looked fine and well looked after. A few weeks ago one side just fell down!!! So it is being propped up with wooden poles. Yes this was adobe mud brick.......

Any bowing in the ceiling means water has got in at some time and has damaged the earth insulation. Cracks are a worry. Many larger mud brick buildings have been extended at some time or other so beware.

In our village we looked at a brick built house but walked away when seeing one corner about 10 cm lower than the rest of the room.

From what I have seen you will need to budget for a new roof most likely and a full refurbishment. Remember outside of a few families most people don't have a lot of money for spending on the houses so it would be likely that it would be very 70s at the most recent!

Our area is near Bugac and there is a lot of money around here but also lots and lots of abandoned houses and tanyas. If it hasn't been lived in for a while really take a very hard look at it.

I wouldn't pay more than HUF 2 million for a tanya with an adobe house and that would be for the land with it. I don't consider them really worth anything so you will pay some goodwill along as the value of the land. Oh and there are strict rules for valuing land and it cannot be sold for more than the official value for the particular grade of land.
jetsam1 is offline  
Old Mar 16th 2017, 8:18 am
  #14  
BE Forum Addict
 
Joined: Nov 2012
Posts: 2,094
Peter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond reputePeter_in_Hungary has a reputation beyond repute
Default Re: Advice for newbie required !

Originally Posted by jetsam1
I wouldn't pay more than HUF 2 million for a tanya with an adobe house and that would be for the land with it. I don't consider them really worth anything so you will pay some goodwill along as the value of the land. Oh and there are strict rules for valuing land and it cannot be sold for more than the official value for the particular grade of land.
If you are talking about agricultural land the price of land is not fixed but there is a preemption right for certian people (local residents, farmers etc.) who just have to match the contract price. Once a contract price has been agreed (signed) it can not be increased (so no gazzumping) and there is 60 days for any preemption rights to be registered. This only applies to agricultural land, residential plots are an open market. The purchase tax (UK = stamp duty) is based on the official valuation or the contract price which ever is the greater.

If it is a tayna (farm or small holding) unless you are a qualified farmer you will be limited to a max. area of 1ha.

Last edited by Peter_in_Hungary; Mar 16th 2017 at 8:21 am.
Peter_in_Hungary is offline  
Old Mar 16th 2017, 8:34 am
  #15  
BE Enthusiast
 
Joined: Feb 2014
Posts: 568
jetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond reputejetsam1 has a reputation beyond repute
Default Re: Advice for newbie required !

MIsunderstood the lawyer then about the land valuations then!!!

That's the process we are going through right now!
jetsam1 is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.