HOW INTERMEDIARIES OPERATE
A resident of Zagreb published an ad for the sale of an apartment, and then the hell began: “As many as 40 agencies called me, they all said the same...”
A well-known Zagreb agent talks about non-collegial and immoral business practices that, among other things, result in rising prices.
You won't believe it, I posted an ad for my apartment on the ad and a number of real estate agencies immediately started calling me, a colleague commented to me, incidentally, a few weeks ago, boasting that he finally started selling an apartment in a great location in Zagreb's Črnomerc. However, the initial elation soon became a real hassle.
-I would say that in a month about 40 agencies called me, some tried to condition me to sign the Mediation Agreement, some presented themselves as customers at the beginning of the conversation, and only later I would say that they called from the agency... Almost everyone had the same story: “Here, I just have a buyer for an apartment of such an area, on that location...”. Over time, it became just unbearable, I received repeated calls from the same agencies, SMS messages, mails... - he complained.
Ion is not the only one. For a long time, the impression has been that real estate agents in a merciless struggle for each client, that is, every commission from the property sold, “operate” in various ways, all with the aim of quick and easy earnings. The opinion that the agent's earnings are high, fast and easy seems to prevail in the market, which is supported by the fact that in Croatia there are almost 4,500 agents registered in the Directory of Agents maintained by HGK.
However, to stand out among the competition they use questionable methods: they call private sellers assuring them that they have a buyer, promise to achieve a higher purchase price, take photos of real estate without authorization and advertise them in their offer, condition the signing of an exclusive Brokerage Agreement...
The umbrella Real Estate Association HGK is also familiar with such cases, whose president Dubravko Ranilović, at the recently held Forum on Real Estate Business in Zagreb, sent harsh criticism to its members. However, there is an opinion among some agents that Ranilovic tried to be “politically correct “and in fact only scratched the surface because such continuous behavior of individual agents and agencies leads to long-term negative consequences for the entire profession, but also for the market itself.
Diana Perger, owner of the Euro-Interiors agency, with almost 30 years of work and experience, is also aware of this, who believes that it is high time to talk about it publicly.
-We are all witnessing high real estate prices and a growing gap between asking and selling prices. Economic reasons and the lack of quality real estate on the market are justifiable reasons for high prices, however there is one factor that is being silenced. These are real estate agencies that, driven by the motive to include as many properties as possible in their offer, contact sellers offering their services, and promise them unrealistic prices, which then lead from already high prices to total absurdities. Given that I have been in business since 1998, I have had the opportunity to look and experience all kinds of situations, however, I responsibly claim that never before has there been a worse collegiality among colleagues, which unfortunately has a strong impact on real estate prices - points out Diana Perger.
She has been a member of the Association since its foundation, and points out that these first agencies, even before the adoption of the Law on Real Estate Brokerage, and later the much-needed Code of Ethics in the Business of Intermediaries, were more moral towards clients and more collegial towards colleagues in the profession.
-Back then, the goal of each agent was to prove himself to the client, to provide him with superior service, and earning through commission was the crown of it. We measure success by the amount of satisfied customers, not the amount of money. In addition to education, real estate forums have served us for the right sincere association with colleagues, providing and giving advice and these connections have survived to this day. However, today individual agencies, I would say “younger” generations, and these “young” agents, individuals some of whom do not have legitimacy or a registered agency, have a certain “mindset” in their heads where the only goal and motive of doing this job is profit. I don't know where the belief gives them an “easy profit” real estate business and that nothing but the commission charged doesn't matter. I suppose that part of the problem lies with American reality shows, but I think it is high time to realize that they damage the reputation of the profession in this way and that it is “not short-term earnings” - he points out.
This trend, he emphasizes, has been present for about a dozen years, but has escalated after the coronavirus pandemic.
-It all started with the “hiring” - in fact none of them are employed but in the gray zone and in the role of an external collaborator - an increasing number of “want to be” agents without criteria, without professional knowledge and in the vast majority without passing the professional exam, which is then “counted” for the highest possible salary and thus their value is measured against colleagues in that same age to the senses. Proof of this is the fact that the umbrella agency “thanks” them for their cooperation if they do not have at least three realizations within a month! The question arises as to how an inexperienced agent can qualitatively carry out three realizations within a month, which should include from market research, quality marketing and presentation, verification of ownership documentation, negotiations, monitoring and implementation of purchase and sale, up to handover. According to information from our law firm, certain agencies at the time of drawing up the Purchase and Sale Agreement, out of ignorance and superficiality, send the Contract for inspection with incorrect or incomplete data - points out Diana Perger.
One wonders whether it is realistic for agencies to have 30+ employees on the relatively small Croatian real estate market who are tasked with “acquiring” a property at any cost, while not caring whether the property has pure ownership relations and a realistic market price, and using the “tools” of persuasion that only they can sell the property at a higher price than the owner advertised it. Then advertise the property and keep it in the ad regardless of whether it has already been sold because they “bilize” their offer and offer another property with similar characteristics at the invitation of the buyer. So they use it as bait. In more severe cases, they also do it without the owner's approval!
And ultimately, to sell the property regardless of whether the ownership relations are in order, charge a commission and “close the door” behind you.
-All of us who refuse to work in this way, in addition to having to fight for the job with our effort, commitment and professionalism, we also fight for the dignity of the profession. After 27 years in business, my agency and I are not afraid for the amount of work because we work with clients through recommendations acquired from satisfied clients, and my only motive is the intention to put an end to such business practices, to stop deceiving the market, to lie and deceive clients and to leave a legacy for future generations a profession that is more than “easy earnings”. It is necessary to educate future clients who need to be aware that there is no qualitatively done work without personal contact with the agent and a signed Mediation Agreement regulating relations by law... or “if it sounds too good to be true... it is not true” - says Diana Perger, who believes that sanctions for such behavior are also necessary, and the question is whether and to what extent it will help follow the announced amendments to the Law on Real Estate Brokerage.
FRAMES
The Biggest Lies of Agents
It often happens that the seller independently advertises his property, and at that moment he is contacted by several dozen agents who, Diana Perger points out, use illegal tools, “software” that notifies them in real time of all the new ads of private sellers and then offer them their services.
-Offering your service is legitimate, but the thing is in the way it is offered. Such agents often use the phrases: “We already have a buyer”, “I can get you a higher price” and “You will pay sacredly less if you sign an exclusive Brokerage Agreement”. All this is a huge lie and permanently damages the reputation of the profession because this artificially “pumps” real estate prices, every current seller is deceived, and every future seller is awakened with false hope because he of course compares the prices he sees in the advertisements and thus determines the price of his property, which then after listing it, is contacted again by these same “agents” with the same story and we entered a vicious circle of already exorbitant prices anyway - points out.
This, in turn, leads to a new problem, continues Diana Perger, because such “agents” do not know what they are selling, often do not visit the property in question at all and cannot authentically convey the impression to a potential buyer or do not check whether the property has clean ownership documents, thus risking someone's life savings when selling.
When not to engage in a business relationship with an agent?
*When the agent is positioned aggressively at the start, if he is full of self-praise, if he guarantees a safe sale, a “bilda” price, if he is not interested in the ownership documentation and details of the property...
*When he does not offer his service to tour the property and make his marketing materials but only downloads photos from the advertisement...
*If the focus of the brokerage is placed on the price without being interested in the residual conditions that the seller expects.
*If, after listing a particular property in the offer, it does not maintain contact with the seller, does not inform him of interest, and does not offer solutions that would lead to a sale.
How to choose a reliable agent?
*By oral recommendation.
*It is advisable to read reviews and experiences on the Internet.
*Ask how long the agent has been in business, what is his knowledge and experience in the real estate market and how many properties he has sold of this type behind him.
*In personal contact, it can be assessed whether the agent has professional knowledge, work ethic, business conduct, professional approach to the property and the client, whether he asks the questions necessary to present the same property to the market... The way he treats the seller and his property is the same way he will treat the buyer
- The law stipulates that every agent must have passed a professional examination, so every client has the right to know if the agent with whom he is considering cooperation has passed the professional exam
published January 18, 2025
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