There is a simple answer Estonia is a small country and Tallinn is a minute capital so the real estate market is small. The real estate experience is also limited to less than 20 years of independence and only one real estate market crash (2008-2009):
If you would like to rent or sell your property you will contact a real estate company who will provide you with a real estate agent. How has the service worked so far:
Real estate agent gets between 50 and 70 % of the total brokerage fee and the rest goes to the real estate company. The brokerage fee for property sale is between 2-4 % the brokerage fee for finding a tenant is equal to a 1-month rental fee. For that price the agent will:
- Post your advert to the 2 main websites in Estonia City24 and kv.ee
- Maybe they will make professional photos or make some good ones themselves
- Show your property to some potential clients
- all real estate agencies will tell you that they have a waiting list of potential buyers but the will buy below market prices if they exist at all
That is it. They might have some contract samples, but they most likely are outdated and not compliant with the latest changes in the law.
Little competition and a growing market. The demand has been greater than the real estate offerings on the market. In recent years global franchises as Remax have flourished in Tallinn but that has not pushed the prices down but given a better leverage against the real estate companies in favor of the real estate agents.
Some of the real estate agents will be inclined to offer you a quick cash offer below market price and resell the property for a big profit.
Property staging and decoration for sale is in its infancy. The real estate agencies rely more on real estate development projects where they build and sell new buildings than on the real estate brokerage service.
What is the future of real estate brokerage service in Tallinn?
Global real estate franchises like ReMax have entered the market and as the competition gets tougher the biggest and most efficient companies will increase the quality of service. Big corporations as AirBnB will get a bigger share of the most lucrative medium term tenant finding market (1-4 months) .
Best apartments PLC is the most innovative company in the real estate market in Tallinn which combines the most profitable parts: short-term rental + medium term rental. We strive for quality for our renter and profitability for our owners.
Our brokerage service includes a thorough cleaning of your property professional photos by the best real estate photographer and professional representation.