How much will you take home from selling your property: direct purchase or estate agent?

What 'how much you take home' means

Property owners often compare two figures: a direct purchase offer and the advertised price through an estate agent. But the decisive figure is a third one: net proceeds, meaning the amount after deducting costs associated with the sale, repayment of any mortgage or charge, and tax, if applicable.

Exact figures cannot be promised as a general rule. They depend on the property, market, condition, legal issues and your situation. That is why this article contains no percentages or estimates, only a review of the items you need to check with both methods of sale.

What makes up the proceeds with a direct purchase

With a direct purchase, the price is based on a valuation and the costs that the buyer takes on themselves, such as risk, repairs or time spent on a future resale. That is why the offer is usually lower than the price that could theoretically be achieved on the open market. At the same time, some expenses on your side fall away.

• Written offer within 24 hours with breakdown of calculation: you see what the price is based on. For blocks of flats, it is based on income valuation and the offer comes within 48 hours.
• Deposit of up to CZK 1,000,000 upon signing the purchase agreement: it is not an additional charge or discount. It is part of the purchase price paid earlier, so it is 'credited back' towards the total amount you receive.
• Escrow and legal services included in the price, no additional fees: you do not pay separately for contract preparation and registration with the Czech Land Registry (katastr nemovitostí). Full details are in the section on complete legal services.
• No commission: you do not pay a broker.

The offer is non-binding and you can withdraw before signing the contract, so you can compare it at your leisure with the alternative.

What a traditional sale through an estate agent costs

With a traditional sale, you need to factor in more items. Always check their amounts in the specific brokerage agreement, as they vary.

• Estate agent commission: usually charged from the sale price and is typically the largest single item. It is agreed by contract, not by law.
• Money held in escrow: a secure sale typically uses lawyer's or notary's escrow, for which a separate fee may be charged.
• Sale preparation: energy performance certificate, photographs, cleaning, minor repairs or home staging, possibly also a valuation report.
• Legal services: preparation of the purchase agreement and application for registration with the Czech Land Registry (katastr nemovitostí), if not included in the agency's services.
• Price negotiations: buyers often haggle over the price after a viewing or after learning the property's condition.
• Bank charges: early repayment of the mortgage, removal of a charge and any bank fees for these actions.

Generally speaking, a higher advertised price is only reflected in the proceeds if you actually manage to sell it at that price.

Income tax and other charges for both methods

The tax on acquisition of immovable property was abolished (Act No. 386/2020 Coll.), so neither the buyer nor the seller pays it. Income tax on the proceeds of a sale may affect the seller regardless of whether they sell through an estate agent or a direct purchase.

According to the Income Tax Act No. 586/1992 Coll., what matters particularly is the ownership period (how long you have owned the property) and whether it was your principal residence. Assess the exact calculation and any relief individually at the Czech Tax Authority website or with a tax adviser. Tax therefore does not differ between methods; only the amount of income on which it is calculated differs.

Time, risk and the true value of money

The proceeds are not affected only by charges. Every month of waiting has a cost, especially if you are paying a mortgage, utilities, property tax, insurance or facing enforcement.

• Waiting for a buyer: with a traditional sale, you do not know when or for how much the property will sell.
• Buyer's financing: if the buyer is waiting for a mortgage, the sale may be delayed or fall through.
• Registration with the Czech Land Registry: ownership passes only upon registration. The Land Registry Authority cannot decide earlier than 20 days after notifying the owner (Act No. 256/2013 Coll.), and the average registration time is about 22 days. This applies to both methods.
• Payment: cash payments are limited to CZK 270,000 per day (Act No. 254/2004 Coll.). Professional sales therefore take place cashless via lawyer's escrow, and this applies to direct purchases as well as estate agent sales.

If the property is in enforcement or at auction, the difference is even more striking. At auction, the minimum opening bid is two thirds of the final price (Article 336e of the Civil Procedure Code No. 99/1963 Coll., applied by analogy for enforcement). The property may thus be sold for less than would be achieved through a voluntary sale. See more on purchasing properties in enforcement.

How to compare both offers step by step

1. Request a direct purchase offer and check the breakdown of the calculation.
2. With the estate agent, ask for the commission, escrow, preparation costs and contract term in writing.
3. From both prices, deduct any debts secured by the property that must be repaid.
4. Add the costs of waiting: mortgage payments, utilities, taxes and insurance for the expected sale period.
5. Consider your tax situation and ask an expert about it.
6. Compare the final amount and certainty of timing, not just the initial price.

A cheaper offer may thus not be a worse choice if it gives you a predictable timeframe and lower expenses. Conversely, a higher price through an agency may make sense if you are not under time pressure and the property is in good condition. Who we are and how we work is described on the About us page.