1 room / 2 room apartment for sale: Small condominium (apartment), procedure, broker and taxes

Sell 1 room / 2 room apartment 2022 – You want to sell your small 1 room apartment or 2 room apartment? Small apartments nothing for families with child, but they are perfect for single singles. Especially in the much sought-after locations, in cities like Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich or even Stuttgart, Heidelberg & Co. where you do not need so much space. But, how do you sell a small apartment with 50sqm, 40sqm, 30sqm or even only 25sqm? How can you determine the value? What taxes are involved in the sale of an apartment? Whether it’s a micro apartment, a student room in a dormitory, a condominium in an apartment building or a high-rise: Here you’ll find all the answers + our 18-step checklist for apartment sales.

1-bedroom / 2-bedroom apartment for sale 2022: expiration

You want to sell a small apartment, maybe it is the very first property you sell. Then many questions arise, which I will answer here shortly.

PS: I buy directly, call me or write me here under contact.

4 big questions when selling for the first time

The most common questions from first-time sellers:

  • How much is my small apartment worth?
  • Selling with or without a broker?
  • Do I have to pay tax on the sale of the apartment?
  • What is the first step in apartment sale?

First, let’s clarify the most important questions. After that, I will present to you in detail the 18 steps in the sale of an apartment. From the very first step to the purchase contract and notary appointment.

Apartment building, high-rise building or ETW in the apartment block:

How much is my small apartment worth?

The value of a property, no matter whether it is a small apartment, a large apartment or even a multi-family house, is generally always measured on the basis of three central factors:

  1. Location (city, district and street)
  2. Property type / condition (cosmetic repairs to renovation backlog)
  3. Tenant / Vacancy

Let’s start with the insight: Valuation.

Location of the apartment: Munich vs. Duisburg – Factor #1

Location – Central in the valuation, the land price, or the location of your apartment. 40 square meters in Schwabing (Munich) is very different from 40 square meters are Marxloh (Duisburg).

Location means not only in which city to sell, but also which district, in which street, with which house number. The difference between districts is big, but also between streets. Just think of an apartment, close to an intersection with a main street, the typical noise and only 300 m away, the small idyllic city park. Same street, big difference.

Comparison, location Munich / Duisburg:

  • 40 m² in Munich Schwabing: 483,000 euros
  • 40 m² in Duisburg Marxloh: 74,000 euros

Difference Munich / Dusiburg:

+ 550% price difference

Who buys small apartments?

After looking at the supply side (your apartment), we take a look at the buyer side. What about supply and demand in your micro-location (street and district). Especially in Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich, Stuttgart and other cities with universities and colleges, the sale goes faster than in rural areas. Simply because the demand is significantly higher here.

Also with a view to future developments, demographic changes, such as the increasing number of single-person households. There are fewer large families and more single people. Perspectives play a role in the assessment.

Let’s come after the location to property itself, your one-bedroom apartment or two-bedroom apartment.

Property type / condition (cosmetic repairs to renovation backlog) – factor #2

The property type itself is relevant for all buyers. That it is a 1-room / 2-room apartment is clear. Other factors would then be, for example, the entire building. Is your apartment in a high-quality apartment building or in an anonymous apartment block. This makes it more or less attractive to later buyers / tenants (rental price).

To evaluate your property, you need to take a look at its condition. On the one hand, the part ownership that you share with the homeowners association and your special property, the apartment. Topics the cosmetic repairs, renovation congestion, but sometimes also existing furniture.

For such a valuation, you should talk to a professional, visit the apartment, if necessary, also consult a few documents and records. You can learn more about this a little further down in the guide, in the 18 steps to selling an apartment!

Renovate / refurbish before selling?

Many who are selling an apartment for the first time often ask if they still need to renovate or even refurbish their condo? In fact, they don’t have to go to this trouble; many buyers like to buy properties that they can subsequently upgrade. Ultimately, of course, this has positive effects on property returns.

Tenants, leases and vacancies – Factor #3

Tenant / Vacancy – Factor 3 in the valuation of your one-bedroom apartment or two-bedroom apartment is the current occupancy rate.

Sell rented apartment – If the apartment is rented, the history of the tenant in the resale also counts a little. Ideally, there were no arrears and difficulties. Likewise, vacancy also plays a role, or for the later effort of re-renting from the apartment. If you have lived in your apartment as an owner-occupant, this counts as vacancy, after all, the new owner must re-rent the apartment if he does not want to occupy it himself as an owner-occupant.

The more we go into detail, the less the price is ultimately affected.

Therefore, we match the three key evaluation factors once again:

  1. Location (city, district and street)
  2. Property type / condition (cosmetic repairs to renovation backlog)
  3. Tenant / Vacancy

Selling with or without a broker?

Sell privately or with a real estate agent? Besides the valuation, the big question in sales. If you haven’t sold a condominium yet, you might think at first: selling without a real estate agent will save me money! In fact, however, the private sale has some risks. Just think of the previously spoken valuation, but also of the entire procedure and purchase process, the individual real estate listings, the constant communication with prospective buyers and real prospective buyers, the negotiations, purchase contract and …

In the end, the few percent you pay as a seller in brokerage costs are not much compared to the mistakes that can happen. Even more important, however, is the time factor, as you will see later in the entire 18 steps up to the purchase agreement and notary appointment.

Realistic assessment, personal network, communication and advisor:

Do I have to pay tax on the sale of the apartment?

For you as a seller, there is only one relevant tax to consider when selling an apartment, the speculation tax.

Speculation tax on sale: when and how much?

Speculation tax is explained relatively quickly and simply. First distinguish: Owner-occupier and capital investor (rental).

If you have exclusively occupied your apartment yourself, the sale is tax-free.

As soon as you have rented out your apartment, the situation changes. Now the speculation tax takes effect.

  • Self-interest = tax free
  • Capital investment (rental) = speculation tax is incurred
  • Speculation period 10 years (between purchase / sale)
  • Exception: own use in the year of sale + 2 years earlier

The profit you make is taxed.

Formula:

  • Taxable profit = sales price – purchase price

Why does the speculation tax exist?

The speculation tax is intended to make too fast real estate transactions (speculators) uninteresting, due to the relatively high tax rate that applies. The amount of the speculation tax is based on the regular tax rate (income tax), this can be up to 42% for private individuals. From ~ 255,000 annual income (including profit from sales) even the additional rich tax +3%.

  • Speculation tax up to 45% in maximum

The speculation tax is therefore incurred if you have rented out your property. Then the period (speculation period) is 10 years. That is, between the purchase of your apartment and the sale of your apartments, ten years must have passed. Then the sale of your apartment is tax-free. If you sell within these ten years, you will have to pay the speculation tax.

There is one exception, should you have rented out your property but then use it yourself for two years before selling it, you can sell it tax-free in the following year.

  • Does not fall taxation of gain on the sale of real estate
  • Self-interest = tax free
  • Capital investment (rental) = speculation tax is incurred
  • Speculation period 10 years (between purchase / sale)
  • Exception: own use in the year of sale + 2 years earlier
  • Amount is based on the income tax rate (person)

What is the first step in apartment sale?

The first step to selling an apartment is deciding that you want to sell your condo! If you are already at this step, learn here the 18 steps of the apartment sale.

Step by step: checklist sale

You now know the 4 important questions and answers! How much is my small apartment worth? Selling with or without a broker? Do I have to pay taxes on the sale of my apartment? What is the first step in selling an apartment? Go into detail now with this 18 step checklist. From the time of sale, to the notary appointment and purchase price transfer.

Preparation: prepare property and sale

Sales phase: market property and find buyers

Sales processing: purchase contract until handover

Modern micro apartments with furnished apartments:

Location, location, location! Here’s another special look at a selection of major cities: