Selling an apartment house – You want to sell? If you should decide to sell your house privately, this means a lot of time investment. Months pass without market knowledge from the appraisal to the preparation of the exposé, to customer contact and the sales phase. In all areas it is the location that counts, not only when selling apartment buildings. property sale, house sale but also when you sell your ownership apartment, the location is a central valuation factor for the selling price of your apartment building. Selling privately or “free of charge” and without an agent carries risks and makes the sale as well as the entire transaction (valuation up to notary and purchase contract) prone to errors. Selling real estates needs a good buyer network, often real estates are also not publicly presented, but only internally as off market property. Now new: Avoid tips, calculation and errors.

Multi-family house: sale

Therefore the A&O is for private sellers, always estimate the time realistically! Because even before the sale starts, you should not underestimate the preparation time. Be realistic and be honest with yourself, for example, about the possible renovation backlog. In addition to all the work on the condominium or the house, there are also all the preparations for the sale.

Checklist: Owner questions before the sale

As we have already described in our Guide House Selling, selling a property in the hustle and bustle of everyday life to sell is quite demanding. If you live in the same city and are already in retirement age, there is time to sell. Under all other circumstances, selling a house means a lot of time, planning and thought and discussion, as you will see in the next two checklists to prepare for the house sale – especially with the challenging factors of an apartment building.

Long before the sale of your apartment house, you need to take precautions. One of the most important questions is certainly whether you already have a (secure) follow-up property in prospect. The renovation of the house can increase the value of your apartment house before the sale. While we’re on the subject of renovation and existing buildings, you have already collected all the necessary documents, such as corridor map, extract from the land register, floor plans and energy certificate. What about tenants and existing rental agreements? Here is a quick overview of the most important questions before you start selling your house.

9 questions that you as the owner must ask yourself before the sale:

1. Do you have a connecting property in prospect ?
2. Is there a renovation / renovation need for the house ?
3. Are all documents completely available?
4. Are early repayment fees to be paid ?
5. Are declaration of division, building insurance, minutes of owners’ meeting, housekeeping bills, list of rents, etc. available ?
6. Are there any statements about the maintenance of the condominium (maintenance costs) ?
7. Do you want to sell inventory as well?
8. Do you have a right of first refusal on the house ?
9. How high will your house rating?

Checklist: Time expenditure, dates, creditworthiness and viewing

Then it goes only really into the matter in the house sale. As a real estate agent, you know that you have a lot of work ahead of you. Multi-family houses for sale, including land, are not only recommended regionally. Real estate investors look for interesting objects, to which in particular multi-family houses in desired situations belong. Negotiations will be more intensive, but the profit from the sale of your property can increase accordingly, worthwhile.

Here it is especially about experience in real estate trading, in order to avoid risks and mistakes in the house sale in advance.

Active it concerns besides the marketing of the multi-family house. The correct platform must be found or also not, keyword Off Market Properties. In addition there is the time planning for the sales, from preparation over advertisements, photos, portals, answering prospective customer inquiries, date arrangement for inspection, examination of the soil quality of the potenziellen buyers or investors, purchase price negotiations, sales contract, taxes and much more besides.

9 simple steps before you sell your apartment house:

1. How well do you personally know about the sale of houses?
2. Have you sold a house or apartment building before?
3. Can you create a meaningful advertisement (online and print)?
4. How do you rate your negotiating skills in local pairings?
5. Would you like to let any unknown person into your property?
6. Do you want everyone to know about your sales intentions?
7. Are you ready to deal with the legal requirements necessary for the sale of the house?
8. Are you willing to take over the time and work involved in marketing your house yourself, do you know the right buyer contacts?

Do not assume that your property for sale is sold after the first viewing. In the second step, you should also not underestimate the selling time. Always plan for cancellations, changes and time delays. Be prepared for the fact that each contract conclusion by the other party can drag on and sometimes, just before the purchase, buyers withdraw for various reasons. This means a lot of stress and renewed search for interested parties.

Processing around the purchase contract and notary – without back up

Later on, the entire process of the purchase contract and notary public will be completed. In the end you spend weeks and months building up a network for yourself, among which are interested parties who pay the maximum price. A lot of work, a lot of time and in the end many traps, from possible renovation backlog to rescission of purchase.

Protect yourself from this. Use your time more effectively.

Advantages real estate agents: security, time saving + selling price

Selling property without an estate agent?

Immoscout, Immowelt, Immonet and many more: The real estate columns of newspapers have long since been replaced by more or less professionally built Internet platforms. Real estate sellers think that with a nice photo and a few “warm words” about the property, the object is as good as sold. For many private home sellers the question arises seriously: Why hire an estate agent? Because even without the buyer principle, if the broker’s commission is split in half, the seller will also have to pay a few thousand to ten thousand euros. In addition, private sellers believe that the chances for the sale – even at maximum prices – increase by not using a broker.

Of course, nobody is obliged to sell his property with the help of an estate agent. You then keep complete control over the sales process and save – at least superficially – money.

Here we have summarized once again the 3 important advantages for you:

1. Security

A good real estate agent takes care of everything, from the free evaluation of your property to checking the creditworthiness of potential buyers.

2. Time saving

Through regular customers and presence in digital media, a good real estate agent will sell your property faster.

3. Good selling price

With knowledge of buyers and the market a good broker achieves a good selling price for you.

Procedure from preparation to handover

Checklist house sale: 12 steps for selling houses and apartments.

1. Realistic time planning and considered strategy for the sales phase
2. Sale with or without broker?
3. Do you have all the documents for the sale?
4. Is your real estate prepared for sale?
5. Is the sales price you set realistic?
   … now it goes into the sales phase
6. Planning the marketing strategy of the property and placing targeted advertisements
7. Establish contact with interested parties and prepare for questions
8. Prepare for questions and establish contact with interested parties
9. Arrange and carry out viewing appointments and market the property convincingly
10. Sales talks with interested parties and examination of the creditworthiness … now comes the sales processing
11. Draw up and prepare the purchase contract for signature
12. Appointment for notarization at the notary
    Transfer to the new owner

Valuate apartment building: Calculate purchase price

There are many questions to answer, the best answer is to have an expert at your side for the real estate valuation. If you want to sell your apartment building, one thing is important: A sound, market-oriented, realistic purchase price.

• Evaluate apartment building

The type of real estate determines the valuation method used for determining the market value. There are three standardized valuation methods for determining the market value of real estate: the comparative value method, the asset value method and the income value method. As a rule, at least two of these methods are calculated simultaneously.

1. Comparison value procedure
2. Income capitalization method
3. Asset value method
4. Residual procedure
5. Determination of loan value

The central questions of owners: What is my property worth? How do you calculate the value of an apartment building? How does the tax office determine the value of a house? Who determines the market value of a property? How does the bank value a property? To give you a first impression of the complexity of location, market value, comparative properties, building fabric & Co., we have written this guide on the subject of valuing apartment buildings for you.

• Evaluate apartment building

Preparation until sale: expiry

You want to sell your property without an estate agent? Then you should plan and carry out these sales steps in their order.

Decision to sell

When is the right time? In the end, only you decide when to sell. There is no time in the year that is particularly “promising” or “particularly unsuccessful” for the sale of real estate. If you do not want to burden yourself during the vacation or Christmas season, this is only your decision. Because the buyers themselves usually decide completely independently of the season.

Tip of Lukinski: Real estates with garden sell themselves actually better between spring and autumn. The garden should be then however also in a maintained condition.

Market analysis and price strategy
How do I get the right selling price?

It’s getting very special here! Because the assessment of the real estate market in general and also regionally requires a lot of knowledge and experience. This also applies to the valuation of a property. Especially when it comes to your own “four walls” that are for sale.

The determination of the real estate value is best done without an “emotional attachment” to the property. So if you want to sell your property without an estate agent, you have to free yourself from all “connections” to the house. But even then there are still enough “traps” into which the private seller can fall. For example, investments in high-quality bathroom, flooring and much more are not per se value-enhancing for the property. Especially the choice of bathrooms, floor coverings, fittings etc. often depends on the owner’s taste. A new owner, for example, would not want to spend money on these things and will try to reduce the purchase price by this means. An estate agent like Lukinski knows for sure which equipment of a property is considered “upscale”.

An important indicator for the “right” price of your property can be a comparison with the price of other properties in comparable location, equipment and condition. To do this, you will either have to talk to buyers and sellers of other properties or browse the relevant real estate portals of your region. To do this, you will either have to talk to buyers and sellers of other properties, or browse the relevant brokerage portals in your region. However, even then you will not know for sure whether the prices of other properties are fully transferable to your situation. Because micro factors always play a role in real estate valuation, which real estate experts explain to you without prejudice.

Preparations: Renovating, designing, modernizing ?

Frequently asked question when selling a house: Do you have to renovate before? Our Lukinski tip at this point: If you want to achieve a maximum price for your property, major construction defects should be eliminated. Of course, this can be proven by corresponding invoices. Damp stains on walls, mold, window frames with flaking paint, “blind” panes of glass, or perhaps repelled parquet reduce the purchase price considerably. Even if there are only a few places where your property does not show itself from its best side, these deficiency positions stain the entire property.

The costs for a renovation or modernization must always be in a reasonable relation to the expected sales price. It is often very difficult to estimate this. Of course, a building expert can be consulted here as well. But this appraisal costs money in any case. Lukinski and, of course, other estate agents provide free advice at this point with a lot of expertise and experience.

A special case are properties which are not (no longer) inhabited at the time of sale. If all furniture and personal belongings are then removed from the house or apartment, possible damages will be revealed very quickly. Also marriage means: remove! Ansosnten a sale can be reversed later because of cover-up of defects in the worst case. If there are still furnishings in the object for sale, they should be in perfect condition. Everything else gives the impression of “bulky waste” and should be removed before the first viewing.

This is difficult for private sellers, but already a common practice for real estate experts: so-called “home-staging”. This involves furnishing empty apartments with furniture specifically for viewing appointments. This gives the buyer an impression of comfort and homeliness and thus increases – often unnoticed by the buyer – the intention to buy.

Marketing and presentation: Exposé

How to create a sales exposé?

Certainly one of the more demanding tasks in the sales process: the creation of a meaningful sales document for the property. Very often the exposé is one of the factors that determine the price and also the speed with which you sell your property. The right lighting conditions for the photos, a good perspective when taking them and meaningful texts are the decisive factors in the exposé. The pictures should provide a realistic view of and insight into the property, and the texts should not be exaggerated. If the statements in the exposé and the reality are too far apart, the buyer gets an impression of the seller’s unsiriosity.

Even in the digital age, printed and bound exposés are often very useful. Especially if your property is of higher value. If you want to produce the exposé on your home printer, the ink cartridges should be well filled. Flat colors or streaky print are absolutely unprofessional.

No matter how: the presentation of your real estate by means of photos and text requires a lot of time. You should also have a deeper experience in choosing the right words for the accompanying text. Leave out all personal relations to the property and take – as best you can – a distanced perspective on your property.
Offer and negotiation

Offer and negotiation

Who is the best buyer and how do I get the best price?

If you sell your property without an estate agent, there is almost no possibility to filter the buyers in advance. Interested parties can make an excellent impression on the phone. But in the end, you never know who you will really let into your house when you view it. Make a list of questions for the prospective buyer for the first exploratory discussion. This includes the question of where and how you are currently living. Also important is the question of whether there is already a financing bank for the possible purchase. However, only practiced ears can hear whether the prospective buyer is telling the truth on the phone or not.

If you sell your property privately, you must also coordinate and carry out all viewing appointments yourself. Usually this part is the most time-consuming work for particularly interesting objects. It costs your time and often also nerves, since genuine prospective customers inquire very detail-richly with the attendance. And finally, you yourself have to cancel the interested parties who are not on the shortlist. This also costs time and nerves.

Purchase contract: How individual may the contract be?

The commissioning of a notary public for the final purchase contract is also a matter for the seller in the case of private sale. Of course, the notary will also tell you which things belong in the contract and which do not. Many buyers have individual wishes regarding payment of the purchase price, transfer date, liability, etc. Also the discussion of these contractual objects is very time-consuming. A danger for larger mistakes however exists for the private salesman here surely less, since the notary public becomes advisory active in the apron of the sales contract.

Handing over of the house

Depending on the relationship between real estate and seller, this is certainly one of the most emotionally difficult parts of selling a house. Especially when the house sale has arisen from an emergency situation and the separation from the property is more or less involuntary. The sales over third – as for instance over Lukinski – is completely noiseless and unproblematic completely particularly here.

There are often delays in the handover of the house. For example, because the seller’s new property is not yet ready for occupancy, or other things delay the handover. With a purely private sale, it is then again up to the seller to manage these delays. Often also with unpleasant conversations with the buyer up to legal disputes. As a mediator in the actual sense of the word, the knowledge and experience of the broker can also be required here.

Tip! Sell Off Market (not public)

Off Market means that your property sale will never be publicly visible. Your property will only be recommended to an internal, solvent group of buyers with an ideal constellation. Off market sales are especially claimed by prominent persons who want to keep the sale as well as address, photos and much more secret. Also private persons fall back on the service, for example if the family should not know anything about the upcoming sale or the neighbourhood. For such a discreet, off market sale you need a renowned real estate agent with a good network. Your advantage: Nobody will know about the sale.

• Sell Off Market

Visit, negotiation and error

Preparation: documents, planning and support

You want to sell your house or condominium and quickly find an adequate, solvent buyer? Then please keep in mind that the preparation phase is the basis for a smooth house sale. Prepare yourself for a time-consuming and complex task.

For a private sale you need a whole contingent of documents. Even the smallest mistakes can have costly consequences and make the sale of a house very difficult and long-term. The complexity begins with the offer price calculation. If you determine the conditions on the basis of a professional property valuation, you have a good chance of achieving the desired sales price. Nevertheless, a lot of negotiation skills, sensitivity and knowledge of human nature are necessary. Be prepared for the most diverse questions of potential buyers and arm yourself with all the necessary documents that could be asked or should be presented without being asked. Now an exposé must be created and your object must be described truthfully, yet from its best side. The choice of words in the presentation is decisive in determining how quickly and at what price your property changes hands.

Observation: Conversations and presentation

Each prospective buyer would like to visit the real estate before the purchase, in order to make itself so a picture. The inspection is therefore an important part of the sales phase. The more attractively the property is presented and the better prepared you are for the questions of the prospective buyers, the higher are your chances of success. However, this requires a lot of preparatory work and a good organizational talent.

The first impression counts

Order, openness and the right atmosphere – the first impression counts, even when selling a house. That’s why a property should be presented as appealingly as possible. This means that both the interior and the exterior should be prepared accordingly. Lawns and hedges should be well looked after. If necessary, a new coat of paint on the facade is recommended. Garbage and bulky waste should be removed. In the interior, tidy and clean rooms create a pleasant atmosphere. In the best case, visits should take place during the day. During the winter months, sufficient lighting should be provided. If the rooms are dark, they give an uncomfortable impression. Decent decorative objects such as plants or curtains can make the room look inviting.

Presentation and decoration

But not only the presentation counts. House salesmen should also be able to answer critical questions at the inspection date. Also here you are in the advantage, if you assign an estate agent. He knows the common questions and of course the appropriate answers. He has the floor plan and the energy pass ready and knows the floor space of the house. Information on service charges and house money is also of great interest to many potential buyers. During the inspection all questions should be answered satisfactorily. Advantages can be highlighted. Conversely, defects should not be concealed. The seller is liable for these even after the contract has been concluded, at least if he knew about the defects in question and did not name them when asked. An experienced broker knows exactly what he has to disclose and what not.

As a rule, it is advisable if the seller is not present at the viewing appointment. Instead, leave this task entirely to the broker. This has many advantages. For example, the prospective buyers have fewer inhibitions to ask questions. In addition, as the seller you do not run the risk of making a remark that might put off the prospective buyer. Furthermore, the broker always remains professional and unemotional during the conversation. After the inspection, he hands over a prepared exposé to the prospective buyer with all important key data of the property.

Negotiation: preparation, expertise and experience

Negotiating a house sale requires not only expertise and experience, but also sensitivity. Owners who sell their apartment or house are usually emotionally attached to the property and often estimate its value to be higher than it is. This not only hurts when determining the value of the property, but also during negotiations. An estate agent, however, always remains objective. He does not let himself be led by emotions and can therefore usually offer a better negotiation result.

If you would like support in selling a house and in the negotiations, it is best to contact Lukinski. We sell real estate and distinguish ourselves through our expertise and years of experience. In the negotiation talks we use our know-how and tactfulness to help you achieve the best purchase price. Trust in our sales talent and benefit from our routine.

What matters in negotiations

Good preparation is the key to successful price negotiations. Lukinski’s real estate agent knows that the buyer will also prepare for the negotiation and knows how to use any defect in the house against him. All the more important is to know the advantages of the property. These include, for example, a quiet location in the countryside or a central location in the city. Good transport connections and shopping facilities also enhance the value of a property. Further advantages can be a newly installed heating system, freshly painted walls or a recent renovation. Proximity to a university or an important employer also speak for the property.

Since the sale of a house is always a matter of negotiation, it is likely that the starting price will not be reached. Accordingly, it should be set higher, but also not too high. If the real estate agent and the seller decide on a moderate starting price, the buyer feels treated fairly and does not have the feeling of being faced with a usurer. An excessive purchase price leads to longer and harder negotiations, in which the price must be lowered more strongly. If the house is in a desired situation and is to be sold fast, in addition the possibility exists to set a small price which leads then to the fact that several prospective buyers outbid each other and you receive the desired price as a salesman at the end. Which strategy is suitable for your property depends on many individual factors.

Avoid errors: Sell privately or broker?

It can’t be that difficult to sell your own house or apartment. But if you proceed to sell your house with this certainty, costly mistakes are already preprogrammed. Before we go into detail about the mistakes and show you why you should entrust an experienced real estate agent like Lukinski with the sale of your property, we would like to point out a fundamental problem.

If you manage the sale of your house alone, you are practically working day and night and have to invest all your time in presenting the property, answering buyer inquiries and scheduling viewings. Even the procurement of all documents required in advance is a hurdle race that not every owner willing to sell will survive without a “black eye”. You can sell real estate in a serious and professional manner by outsourcing the complex task and concentrating on a professional execution by real estate agents like Lukinski. As online brokers we work fast and reliable, so that you can sell to a solvent buyer at the best price without any stress.

The most common mistakes when selling

The first error occurs long before you even think about the exposé and its creation. You set the offer price for your property too high and tend to overvalue it, which is quite human in terms of your emotional connection to the property. An astronomically high price that is completely out of touch with the market ultimately leads to the sale being unnecessarily protracted and to your property not arousing any real interest among buyers. Also the opposite, a too low offer price brings disadvantages for you. If you offer your property below the value, numerous buyers will contact you immediately, but the loss at the conclusion of the contract is inevitable. Missing documents, meaningless or underexposed photographs, pictures of the property from rainy days and photographs on which the street and your house number are recognizable always prove to be mistakes when selling real estate. If you do not want to be called out of the house without an agreed viewing date, you should make it difficult to locate your property and for this reason you should specifically refrain from publishing information such as a house number or street recognition in the exposé. A sale from private attracts bargain hunters, but also numerous dubious resellers. They will hardly save themselves before inquiries, will be able to obtain thereby however hardly the desired price and a satisfying sales completion. At the latest with an inspection the presence of the owner can have a negative effect on the sale.

Purchase contract: Procedure, notary, preliminary and main contract

The purchase contract contains all the regulations and information necessary for the sale of your house. It should therefore be drawn up with great care. In order to avoid confusion and unpleasant surprises, it is advisable to place the purchase contract and the entire sale of the house in the hands of an experienced real estate agent.

Notarized preliminary contract is almost always binding

When selling a house or condominium, so-called preliminary contracts are concluded. These become legally binding only after a notarial recording. Only with the signature of the notary the house is considered as really sold. In the preliminary contract all important cornerstones for the house sale are recorded. If both parties agree and the preliminary contract is concluded, the main contract follows. If the preliminary contract has not been notarized, it has no meaning. Both buyer and seller can withdraw in this case without giving reasons. With notarization, however, the preliminary contract is binding so that it provides security for both parties. Only in rare cases there is a possibility to withdraw from the preliminary contract. This includes natural disasters, for example. If there are no serious reasons and one of the two parties withdraws from the preliminary contract, the other party can claim damages.

The following points should be recorded in the preliminary contract:

• Name and address of buyer and seller
• Details of the object of purchase including furniture >/li>
• The purchase price and the terms of payment
• Fixed date for the conclusion of the main contract
• Indemnity clause

As soon as the financing is clarified, the preliminary contract can be signed and notarized. The notary will check the land register and discuss further details with both parties. The notary then draws up the main contract. This contains the information of the preliminary contract as well as all conditions that were discussed during the notary appointment. These include, for example, the handover of the house, the regulation of the purchase price payments and the due date, land register declarations and, if necessary, a financing power of attorney. This is required if the buyer needs a loan to finance the property.

Both sides have time to review the main contract. If there are no objections, the main contract can be signed and notarized. With this the house sale becomes legally binding. After the payment date, the house and keys can be handed over according to the agreements in the contract.

Check buyer: Credit check

Checking creditworthiness and solvency – The credit check provides information on various factors. On the one hand, it certifies the ability to finance a property purchase and on the other hand, the willingness to pay and reliability. This data can be determined by past credits and installment payments. Through a self-disclosure from the Schufa, sellers can realistically assess whether the buyer is able to pay the purchase price as well as other costs, such as for the notary or for the land transfer tax, and whether he is also willing to do so. The seller can apply for the information at the Schufa himself or demand a self-disclosure from the buyer. The latter is used in practice rather, since it is connected with fewer costs. In addition, the self-disclosure contains all relevant data, such as the overall assessment of the payment risk and all information about payment experiences in the past. The self-disclosure is free of charge for the buyer.

Financing confirmation, notary escrow account and creditworthiness

Furthermore, a confirmation of financing can be requested from the bank. This is however only meaningful if the credit is expressly intended for the financing of a real estate purchase. Furthermore, the disbursement of the loan should not be dependent on other conditions.

In order to provide more security, a notary escrow account can also be set up. This is monitored by the notary and is intended to protect the seller. Only when the money has been received will the property be transferred into the possession of the buyer.

The credit assessment should take place as early as possible. This avoids long negotiations that turn out to be superfluous in the end. It is also possible that you have already turned down other interested parties who have bought another property in the meantime. A good real estate agent carries out the examination of the buyer in time. He also advises the buyer that he should conduct the financing discussions with his bank as early as possible. This is because the issuing of a financing confirmation can take up to 14 days. In addition, the buyer must have documents ready for the approval of a loan, which may first have to be obtained.

Handover: Protocol, handover of keys and documents

Once the purchase contract has been signed and the notary appointment has been completed, the last step of the house sale follows: the handover. This is when you place your property in the hands of the new owner. To make sure that nothing goes wrong and that there are no unpleasant surprises after the conclusion of the purchase contract, there are a few points to consider. Compensation for damages or a subsequent reduction of the purchase price makes many buyers’ hair stand on end.

If the sales contract was signed and the notary appointment is mastered, the last step of the house sales follows: The delivery. This is when you place your property in the hands of the new owner. To make sure that nothing goes wrong and that there are no unpleasant surprises after the conclusion of the purchase contract, there are a few points to consider. Compensation for damages or a subsequent reduction of the purchase price makes many buyers’ hair stand on end. That does not have to be at all.

The handover is the last hurdle that you have to take when selling a house. As an estate agent, we will of course also take on this task for you. A handover protocol creates clarity and avoids disputes. Because the contract of sale alone does not cover all essential points. Defects, meter readings and existing inventory can be recorded again or in much more detail in a protocol. This is signed by the seller, so that he/she cannot claim that he/she did not find the house as contractually agreed.

The handover protocol for the sale of a house is not so different from the protocol for the handover of a rental property. However, other important points must be recorded. These include, for example, defects that still have to be eliminated by the seller. Also a date for this should be specified. In addition, the handover protocol should record which inventory still needs to be removed. In addition, all counter readings are written down. The process of handing over the keys is also noted in the protocol. If keys are still missing, then it is noted how many and when they will be handed over later. By the way, the keys are usually handed over only after the purchase price has been paid in full.

At the handover of the house not only the keys are handed over, but also many other important documents. Building plans, floor plans, the calculation of the living space, building contracts, expert opinions, maintenance contracts, insurance policies and much more are handed over to the new owner on this day. If you sell a rental property, the rental contracts and the documents about the different tenants must also be handed over. During the handover, the seller usually also explains to the buyer the function of the heating and other important devices in the house.

Checklist documents handover:

• Building plans
• Floor plans
• Calculation of living space
• Building contracts
• Expert opinion
• Maintenance contracts
• Insurance policies
• Insurance policies

Certification: Approval by a notary public

In order to draw up a purchase contract for a property, it must be notarized. The purpose of notarization is to protect the buyer and seller from rash decisions and to ensure that the interests of both parties are properly recorded. The recording of interests is carried out by a notary, who is not a representative of the interests of one party, but acts impartially.

Real estate valuation: Determine market value

What price can I sell my house for? This question is asked by every owner who wants to sell a house and wants to know what price is realistic in the offer. Although the property valuation is an estimated value, it is based on an objective and therefore plausible assessment. In practice, it has been shown that the value varies from expert to expert and that, despite property valuation, different price recommendations can be made. Nevertheless, you should not rely on your gut feeling or your own, emotionally made estimation for the selling price of your house. In order to value a property, various factors must be taken into account in the determination. The more comprehensive and professional the property valuation is, the more cost-sure you will sell the house and the lower the risks of presenting an offer below or above the actual market value.

No property valuation? No realistic pricing possible!

To do without a real estate valuation means that you make the price of your house primarily dependent on a feeling and your expenses put into the object. Objects that are sold without a real estate valuation are usually too expensive and thus practically unsaleable, or too cheap and therefore incur a loss when sold. As an owner, you do not need to know the factors influencing the offer price if you decide to have the property valued by an expert. Before you name a price and commit to a sales price, you should definitely find out what the market value of your house is. Anyone who sells without a property valuation is committing one of the biggest mistakes in the real estate business and will rarely make an offer that is authentic in the context of the property on offer and therefore interesting for the buyer and correct for his own finances.

Natural value and market value – the differences

When selling a house there are two values in the end, of which the market value or fair value is relevant for price determination. The actual material value indicates the value of a house based on its year of construction, its equipment and substance as well as the size of the property. If you know the real value, you know which objective value is related to your house. However, the purchase price is not related to the pure material value, but to the market value or market value in context. Environmental and market-specific factors flow into this property valuation and form the basis for pricing. In order to determine the market value, a great deal of know-how and market knowledge, analyses and comparisons as well as experience in the valuation of real estate are necessary. Due to high demand and few offers, the market value today is often higher than the pure material value and gives you the opportunity to sell the property at the currently highest possible price. The market is the most important factor in determining the market value of a property and is a key factor in deciding whether you can sell your house at a good or a rather low price. In order to avoid mistakes, you should commission a real estate agent or surveyor with the challenges of valuation and have them determine the best offer price for which your property is advertised and sold.

The mortgage lending value is based on a well-founded appraisal of a property valuation

Not only for you as an owner, but also for potential buyers, the market value is an important parameter. To enable real estate financing, the lending bank requires the mortgage lending value of the property. This is based on the market value and amounts to 80 percent of the sum determined as the market value in the property valuation. Explicitly, the mortgage lending value is a well-founded estimate of the amount for which a property can be sold, when viewed over the longer term. For an interested party, the valuation of the property is important for two reasons. The asking price reflects seriousness and indicates that it was determined with expertise and not estimated with emotional influences. In second place is the mortgage lending value, which is important in the context of financing and is decisive in determining whether a prospective buyer can finance the property for the specific offer price and receive confirmation from the bank.

Important facts in the valuation report

Real estate valuation is made up of different aspects. Of course, the building fabric, i.e. the actual material value of the house, plays an important, not to say the most important role. But equally important is the information on the location, which has a significant impact on the selling price. In highly frequented and popular regions, real estate prices are far higher than in rural, infrastructurally weak and less sought-after regions. While the real value of the property is a variable quantity that can be changed, for example through demolition and new construction, the location remains static and unchangeable. A property valuation takes into account the future development of the region as well as the current popularity of the location in which you wish to sell your property. The better the infrastructural development and networking at the location of the property, the higher the asking price can be. For a property valuation, the demand for a property in this location and the volume of houses on offer are also taken into account. Comparative prices of similar properties in the same location are also included in the valuation.

Determine market value

Legally, the determination of the market value of a property is regulated in the German Real Estate Value Determination Ordinance (ImmoWertV). In addition to the type of use, the size and condition of the property, the energetic condition of the property are also important factors in determining the market value. The value relevance of urban development circumstances (urban planning measures in urban redevelopment areas) and foreseeable future developments are also taken into account. The market value is determined by brokers or experts. However, only licensed real estate appraisers can determine a market value recognized by the courts.

The fair market value (market value) is the price that can be obtained in the specified time frame in the ordinary course of business in accordance with the legal circumstances and actual characteristics, other properties and the location of the land or other object of the valuation. In 2004, the term “market value”, which is used throughout the EU, was added to the definition of market value in Section 194 of the German Building Code (BauGB). The fair value is therefore an estimate of the price that can be achieved on the market. The fair value is generally used when selling and buying land and buildings. It may also be necessary to determine the fair value in the event of foreclosure sales, tax collections by the tax office, divorce or inheritance.

Valuation: which factors are important?

The market value assessment refers to the macro location (city/region) and the micro location (immediate surroundings of the property) of the property, its section, size and any existing land charge entries that could reduce the value. According to the German Building Code (BauGB), the market value is not a permanently fixed value, but refers to the reference date stated in the appraisal. It is possible that the market value may change significantly within a certain period of time.

The market value quantifies the value at the time of the valuation. The market value appraisal takes the following points into account:

In fact, market demand has a decisive influence on the value of your property. The demand for real estate as well as the sought-after features vary greatly from region to region.

Practical procedure for determining the market value

When it comes to selling real estate, the free property valuation is an excellent starting point for a quick and good sale. However, if an expert is to determine the market value, the exact task is first discussed with the client. An expert must be appointed in special cases (e.g. in the case of inheritance disputes or divorce), for example if a market value appraisal or a written statement on the market value is required. The expert may only determine the condition and value of the property in an on-site appointment with access to all premises.

Documents for the determination of the market value

The following documents are generally evaluated for the valuation of real estate sales:

• Extract from the land register
• Building plans, floor plans, sections
• Description of construction
• Site plan and field map
• Calculation of living space
• Energy Performance Certificate

For condominium ownership are additionally required:

• Minutes of the last three owners’ meetings
• Business plan
• Declaration of division (land register)
• Housing allowance statement

In the case of income-producing properties, they must also be submitted:

• Management costs
• Rental listings
• Lease agreements

In addition, rights and burdens are to be viewed:

• Notarial deeds
• Special registrations (rights of way, rights of residence, etc.)

Weighting of criteria for market value

Particular weighting is given to the location and the expected future risks of the property. The risks are mostly modernization risks, such as the costs to be expected due to a renovation backlog. The most expensive maintenance measures, which usually include the roof, basement, windows and heating, are assessed. The type of house is also assessed. With a year of construction until 1945 it is an old building, after 1945 the building is managed as a new building. In addition, the exterior design, floor plan, garden, façade, room layout and lighting conditions are taken into account.

Factors such as location, balcony and the attractiveness for target groups play an important role in determining the rentability of the property. Other factors included in the valuation are, for example, an elevator and the equipment of the property:

• Plot area (proportionate living space or total area)
• Living space in accordance with the living space ordinance (WoFIV)
• Garage, underground car park, parking spaces (existing renovation risks)
• Cellar can be used additionally or e.g. renovation backlog in the basement
• Demography of the object position
• Type of property (commercial, residential, care, monument, other special forms, mixed property)

Valuation: capitalized earnings value method & asset value method

All important information on the valuation of real estate sales and other valuation procedures clearly summarized for you:

The capitalized earnings value method – division into traffic & building capitalized earnings value

The income capitalization approach divides the property into the market value of the land and the building income value. This includes rental income, maintenance costs and costs for managing the land and building. The rental income less management costs and the value of the land including interest are compared.

Our team of investors at Lukinski will be happy to calculate the yield for your desired property. Prospective buyers can be convinced of good returns. On request, we will tell you what data is required for the calculation. After receipt of the documents, we take over the determination of the capitalized earnings value and give you an initial estimate of the yield.

The real value method – value for the new construction of a property

The calculation first determines the market value of the floor with the floor standard value, then the building standard value is added. The real value of the building is the building production costs minus any age reductions. The land value (market value of the land) and the building value are added and multiplied by a material value factor. The calculation of the real value factor depends on the building type, the provisional real value and the standard land value. The total real value determined in this way indicates the financial resources that would be required for a new construction of the property.

The comparative value method – comparison with similar properties

The comparative value method compares your property with similar objects. It is used in particular for the sale of condominiums and apartment buildings. The comparative value can also be determined for undeveloped land. Only objects in similar locations and with comparable layout are taken into account in the comparison. The real estates entering into the valuation should come from direct proximity of the residential object. The comparative value procedure is considered as particularly realistic. It is very often used in the valuation of real estate, because the locations are regionally relatively well comparable.

The energy performance certificate – mandatory for real estate sales

The energetic condition of a property is one of the information that is one of the most important decision criteria for prospective buyers. This is where the energy pass gets on the agenda, as it provides information about the energy efficiency of the house and thus about future consumption. Energy efficiency is classified on a scale from A+ to H, with the letter H standing for urgent measures in energy-related renovation and indicating that the property is no longer up to date in terms of energy consumption.

No property sale without energy certificate

Only authorized specialists are allowed to issue an energy pass (according to §16 of the EnEV). This means that you have to look for an expert with the appropriate certification. The §16 EnEV specifies that each real estate buyer must receive an energy document of identification. For you as owner and salesman this means that you have to have the passport issued and integrate it into the sales documents. With refusal of the production and collecting main commit an administrative offence and can be punished with a fine of up to 15.000 euro.

Why is the energy pass so important? It contains all relevant information for the buyer on the energy status of the property. It also provides information about how much energy was consumed and what supply costs the future owner can expect. If the energy balance is negative, this circumstance points out to a prospective buyer the necessity of an appropriate renovation and thus high costs, for example due to the renewal of outdated electrical and heating systems. The energy document of identification is a firm component of the Exposé with the house sales by our brokers and is published directly on-line. In the course of an inspection, prospective buyers receive a direct view of the original and an explanation from us on how to read and evaluate the energy certificate.

Requirement pass or consumption pass ?

A consumption pass costs 100 euros, while a demand pass costs between 300 and 500 euros. The costs for issuing the energy pass are borne by the owner, who is obliged to provide this data when selling the house. We advise you to have the meaningful demand document of identification made out and not to save at the wrong end, in which you provide only a consumption document of identification with far less helpful data for the buyer.

The consumption pass is based on the last 3 annual statements of the energy operator. On the other hand, the consumption pass contains concretely determined facts, which are checked by an energy consultant on site. The main difference between a consumption certificate and a demand certificate is that the former provides information about the past, while the demand certificate looks at energy consumption in perspective. This requires a specialist to check the condition of the building, the insulation and the heating system on site and to use this individual data to produce a forecast for the energy balance of the building.

Real estate agent: advantages

Challenge in the sale of house and apartment

The biggest challenge in the sale of houses or apartments is the determination of a correct offer price. In this regard, we recommend a market value determination in which all factors far from the pure real estate price are included.

The equipment and building fabric of a house are just as important in determining the market value as the location, the market-specific factors and the infrastructure as well as the difference between supply and demand. If you have the valuation carried out as a private client, you must reckon with costs of around 1,000 euros and more.

Valuation and additional purchase costs

If, on the other hand, you hire an estate agent, the market value assessment is included in the scope of services and is financed by the buyer via the purchase costs. You can have your property sold professionally without incurring any costs when selling the house or apartment. If you do without a market value appraisal, you usually estimate an implausible price and offer the house above or below its real value. In both cases, you are making a serious mistake which can prolong the sales process or lead to avoidable losses.

With an experienced real estate agent, you can protect yourself from making mistakes when selling real estate and have the certainty that you will receive an offer for sale that includes the current value of your house, land or apartment based on all the facts. Likewise, you do not have to worry about organizing documents, preparing the exposé or publishing your offer. All processes relevant to the sale are carried out from one source and in a professional manner.

Advantage real estate agent in Weiterstadt: security, time and selling price

A summary of the advantages for you:

• Security – A good real estate agent takes care of everything, from the free evaluation of your property to checking the creditworthiness of potential buyers.
• Time saving – Through regular customers and presence in digital media a good real estate agent sells your property faster.
• Good sales price – With knowledge of buyers and market a good broker achieves a good sales price for you.

Broker Contact

If you decide to sell through our Lukinski real estate agents, you do not have to take care of the real estate valuation yourself. With competence and expertise from many years of experience, we will evaluate your house and advise you for which offer price we would recommend the sale of the property. Without a detailed market analysis and market knowledge, real estate is often offered too cheap or too expensive. Both variants pose a risk which has a negative impact on the selling period and the interest of the buyer. Ask Lukinski for a professional property valuation and accelerate the sale by having your property sold through our Lukinski real estate agents.

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