Selling your first property: Hotel sale

You have never had anything to do with the sale of a property? Then I want to give you a few general tips on the process of selling real estate.

On many Internet sites and in online portals, you are mainly pointed to the typical procedures, such as the question, sell with or without a broker? Hotel owners should not ask this question at all, after all, it is about more than “just” a condominium.

Operators of hotels have a special property, with special dedication, many are already a custom-made, with a view to cutting (and dedication). Accordingly, for this type of property you need special buyers.

So selling a hotel is not just about having the right documents and paperwork, it’s also about having the right, ideally exclusive, marketing strategy.

As you can read in the article Selling Property, selling property is about 3 phases. First comes 1) the preparation, then 2) the marketing and 3) the selling process.

Preparation at a glance

The first step is always about the right strategy. The first step determines the entire sales process. Within the strategy, you determine the timing of the sale, you collect the necessary documents for the evaluation of the property and the economic forecast for the future of your hotel. From this, the offer price is then determined.

For the increase in value of the property, it is also worth thinking about beauty corrections and renovations. These are the first, important steps in the preparation.

More on that later.

Sales phase: Discreet or on portals

After that, it goes into the sales phase. In the sales phase, individual contacts are approached in a targeted manner. At least for exclusive sales in the off market area. The wealthier the parties involved, the more valuable time is. Time is the one commodity you can’t produce. Money is not an issue for these types of buyers. Proof of financing, non-disclosure agreements, everything is immediately available.

Accordingly, these investors only want to be presented with offers that no one else has access to. If you waste a month as an investor with a volume of over ten million euros, you will be extremely frustrated.

Just the reputation plays a big role in this circles. From therefore also our recommendation, if you are already at this point in the article:

Don’t burn your property on online portals. You may get hundreds of inquiries here, but who really has the credit rating? Who should write to all of them, check credit ratings, talk, meet them, negotiate? Rather off market, targeted to 1, 2 investors.

Finally, it continues now with the entire, first communication. Sifting through enquiries, checking the creditworthiness of interested parties, further information, telephone calls, right up to the viewing appointment and, of course, the negotiations.

How many stakeholders do you want to go through this process with?

Time is money.

Sales transaction: purchase contract, notary and taxes

The last step is then the sales process. Here it is mainly about the purchase contract, the notary appointment and the handover of the hotel.

That’s roughly it, the entire process in selling a hotel. If you want even more information about selling your first property, read more here:

• Sell property

You can find everything on the subject of taxes here:

• Selling real estate: taxes

Here we have summarized the process, in its three phases, once again for you:

• Preparation: Prepare hotel and sale
1. Timing
2. Broker appointment
3. Documents
4. Prepare hotel
5. Offer price
6. Exposé
• Sales phase: marketing the hotel and finding buyers
1. Marketing strategy
2. Take inquiries
3. Contact with interested parties
4. Credit check
5. Viewing dates
6. Sales pitch
• Sales transaction: Purchase contract until handover
1. Contract of sale
2. Notary appointment
3. Land register entry and purchase price
4. Handover
5. Invoices for notary and broker
6. Pay tax

Work both real estate sales with professionals, then you don’t need to watch out for real estate sales mistakes.

Always a good place, hotels in Berlin.

Timing and time pressure in sales

Too much stress, the high age, or even the lack of succession. Various factors sometimes influence the time in which the hotel is to be sold / must be sold! So do not wait too long if you can estimate certain factors (pressure through finances, pressure through age or desire from the end of the business).

The reasons for the sale can be different:

• Too much stress at work
• High age
• Lack of succession
• Credit Print

Before your planned hotel sale becomes a distress sale, you should think about the optimal time in good time. The ideal case is: You have no time pressure. If you do, you need to prepare yourself all the better for the sale.

Do not sell “too late” when the sale is foreseeable, otherwise there will be time pressure

However, due to countercyclical effects, you can also slip into a phase in which the demand for hotels, from the investor side, is lower.

Sources of error: Selling without experience

Poor or insufficient preparation can lead to legal errors, but also to tax errors. So do not wait for years and postpone the sale, if certain factors can be estimated.

However, mistakes can be made not only in the preparation phase, but also in the later sales phase when it comes to marketing the property.

Even inexperienced real estate agents go the wrong way and “burn” the property, e.g. by listing the hotel on all real estate portals. Especially large investors quickly ask themselves the question:

What’s the catch if the property is on all real estate portals? A further check does not take place at all.

The tip here: Off market sale, directly to operators, investors, foreign investors and funds. Especially in the area of hotel real estate, discretion and anonymity for the seller side is often a very important issue in the process.

Anonymous and discreet: Direct to investors

We always pay attention to the highest discretion and anonymity in the sale of our customers. Hotels that fit our purchase profile are only communicated internally to known buyers. Even this communication takes place in several steps.

Investors are informed in a targeted, discreet manner

In the ideal case one creates with it already a 1:1 match. That means one seller, one buyer and no information about the sale and the object comes to the outside. Especially for families, in which it is also about the topic of real estate inheritance, just as important as for entrepreneurs who do not want others to know about the upcoming sale.

How much is my hotel worth?

When selling real estate, people usually assume that it’s all about the construction and the substance.

For investors and capital investors, however, it is always about the return = profits of the future.

The decisive factor in valuation, for hotel properties as well as for companies, is future income, i.e. revenues to be generated by cash flow.

Buying rental property is no different.

And again, as in general real estate sales:

Location, location, location!

The tried and tested comparative value method helps with the valuation. Simply explained: Are there any hotel or restaurant businesses in the vicinity that have been sold recently? If so, this information can be used to determine offer prices for your hotel and forecast sales prices.

It always gets expensive, for example, when it comes to Kitzbühel.

Source of error: Valuation from broker is too high

The later offer price of the hotel is important, because here it is decided whether interested parties bite or not – simply said. Price too high, area too small, no interest. There are 2 sources of error here:

1. Wrong asking price of the owners
2. Too high a valuation of the real estate agents

First to the wrong, too high asking price of owners, before the first broker appointment.

For a first, rough evaluation, many take a look at online real estate portals. There, however, you will find offer prices (!), not the final sales prices. Just because a hotel property is offered for 20 million, does not mean that the hotel will sell for 20 million. Keep this in mind when you check prices on online portals yourself in advance.

Another source of error lies in the selection of offers by the estate agents. More specifically, in rating the real estate agents too highly. They will say, “great, a great rating”. But again the reference to the customer:

Price too high, area too small, no interest.

If the valuation of the hotel is too high, no interested party will be found and this brings us back to the beginning, the pressure to sell! So if you ask for offers from several agents, do not automatically take the real estate agent with the highest rating. Make sure that critical aspects are also included in the evaluation. This will increase the success and speed of the sale!

Choose brokers who also take critical aspects into account instead of looking for the highest rating

Buyers will be just as critical and, in case of doubt, will bail out, possibly already at the first contact.

Time and offer price determine success

Selling a commercial property, however, also means addressing a special, relatively small group of buyers. The hotel requires investments for cosmetic corrections, small and large renovations, loans must be serviced, if the time of sale is not cleverly chosen, the offer price too high, the hotel will not be sold. This brings us back to the distress sale.

Advantages Off Market: Direct investors, discreet hotel sales

Therefore, our recommendation is, trade your hotel exclusively. This means one partner, no real estate portals, but real estate investors, capital investors, direct contacts from a network. The technical term for this type of real estate sale is, as previously learned, off market.

The advantage, through the exclusive sale, solid investors can be adressed. The sales process is much faster, sometimes it takes only weeks instead of years.

With the right partner at your side you will not only reach the regional market of investors, not only the national market, have you ever thought about the international investor market?

Many investors from abroad are very interested in real estate in this country. Everything on a grand scale, for real estate funds, families but also large hotel chains that want to gain a foothold in this country. That’s why we don’t just talk to investors from our own country, if the return is right, the property information discreetly reaches investors from all over the world. A big advantage for you as a seller, here the money sits a little looser than with domestic, checking and researching the investors if a goal is to be met.

Documents and records

When selling a hotel, far more documents and figures are necessary than when selling private real estate. The new owner needs business figures, facts about the lease agreement and the operation of the hotel.

All information on rooms, occupancy levels, seating and capacities are included in the decision and show the prospective customer whether your hotel is suitable for his intended use.

In order to convince an experienced hotelier or a prospective hotel operator, the documents must be complete and all figures must be verifiable.

Without a savvy realtor, selling a hotel becomes difficult and comes with some pitfalls that should not be underestimated.

Alternatively to the sale you can choose a lease. Which variant is the best solution for you as the owner, you can find out in a comparison of the two options and in a competence consultation from the real estate agent. Basic information in both cases includes informing you whether the hotel is currently vacant or whether you are seeking a change of ownership in the course of operations.

Sell hotel – Conclusion

If you want to buy a hotel, you need a strong partner, because the best properties already go away in advance. Through local acquaintances and networks, the most lucrative properties are usually bought before they even appear on the market and on real estate portals. As a rule, you will not find the absolute premium objects on a real estate exchange.

As a seller, you also benefit from these more exclusive deals. Because of course, a higher sales price can be achieved as long as the objects are still traded exclusively. Here, the one or other buyer with the purchase price for the hotel still goes up a little, so that the offer does not go further. From country hotels to boutique hotels, there are excellent conditions for hotel sales with brokers in the current development of domestic tourism.

If you want to sell a hotel, the professional approach from the beginning is of immense importance. Unlike with privately used properties, the comprehensive valuation and marketing strategy play a concise role. Which group of buyers should be adressed by your offer? Which conditions are relevant in the current lease and which reputation does the hotel have? All these aspects have an effect on the offer price and decide how great the interest of experienced hoteliers is in your property.

Statistics: Tourism boom

As already mentioned at the beginning of the guide, domestic tourism is booming and has been shining for over 10 years with ever new record figures. Accordingly, the number of overnight guests and the demand for hotels in the real estate market is increasing. From the chic, luxurious boutique hotel in the city centre to the hotel with connected gastronomy and event areas. In Germany, people are not only taking more holidays, they are also spending more on them. Thus, prices for overnight stays are rising and the hotel industry is becoming a lucrative business for more and more companies and entrepreneurs.

Ergo: The real estate market and tourism market are both on the upswing right now. If you sell now, you’ll get a good sale price – why wait for the next real estate bubble? We show you how to take the current profits. Trade your hotel property anti-cyclically.

You want more interesting facts and figures from all over Germany for real estate owners? Read more about real estate statistics here.

Here is the proof – tourism in Germany has been booming for years! With a new concept, old hotels can quickly appear in new splendour. You can find more interesting statistics on domestic tourism and the effects on the hotel industry under the diagram and the “Procedure hotel sale”.

Overnight stays by guests in Germany

Guest nights in German accommodation establishments from 1992 to 2018 (in millions).

Tourism Contribution to gross domestic product

Development of the direct and total contribution of the German tourism industry to the gross domestic product in the years from 2012 to 2028 (in billions of euros).

You can find more statistics at Statista

Tourism workers

Development of the direct and total contribution of the German tourism industry to employment in the years from 2012 to 2028 (in 1,000).

Number of hotels by hotel stars

Number of classified hotels in Germany by hotel stars (as of January 2019).

You can find more statistics at Statista

Der Beitrag Selling a Hotel: Process, Valuation, Mistakes, Investors – Selling Hotel Real Estate erschien zuerst auf ℄ Real Estates.

What is important when offering a commercial property

Good real estate agents not only find a solvent buyer promptly, but also support you in selling the property for business according to its circumstances and possibilities. Viewing appointments are arranged, coordinated and carried out professionally.

To expedite the sale and give you confidence in selecting a contractor and new owner, we check the creditworthiness of prospective buyers and obtain a concept for financing. Before an experienced commercial real estate broker makes a recommendation and suggests a buyer to you, he has obtained all the necessary checks on solvency, secure financing and customer-specific facts.

You are relieved of the entire preparation and sales phase, so that you can take care of your core business and safely outsource the brokerage.

Broker tasks in commercial real estate sales

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised with the comprehensive services of a real estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

Basically, a real estate agent fulfils all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, advertises your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but unique task, answering customer enquiries is part of the daily business of an estate agent.

Here you can find more information about the:

• Tasks of a broker

Commission for the broker: The most important regulations

More than 80 percent of all properties for sale or rent are brokered. This means that the owner commissions a real estate agent to advertise the offer and to carry out all tasks up to the conclusion of the contract on his behalf. Professional brokerage is a service that is agreed between the client and the real estate agent. After the service has been rendered, a commission, the so-called brokerage fee, is due.

Who pays the commission depends on the type of commission and the reason for the commission. If you sell your property through an estate agent, the buyer usually pays. In the case of lettings, the buyer principle has applied since 2015, so that the invoice recipient and commission payer is identical to the person who has commissioned a brokerage service.

Here you can find more information about the:

• Broker commission

Selling commercial property? Procedure, taxes & Co.

Selling commercial real estate is a complex, time-consuming task that requires expertise. Without the necessary know-how and experience in commercial property sales, mistakes are bound to happen. If the asking price is disproportionately high, you will receive few enquiries and have to be prepared for a lengthy sales process. If the price is too low, you will lose money and be dissatisfied with the sale.

Sell privately?! Avoid mistakes

Rely on experts who are experienced in the sale of commercial properties and who know what is important in the preparation of an offer, in the determination of the price and in the conversation with interested parties. Dedicate yourself to your daily tasks and choose to have your property for commercial sold professionally. Avoid making mistakes when selling real estate.

Valuation and offer price

You want to sell your property? For the successful and profitable sale of a property, a well-founded and realistic valuation is always the first step. This ultimately determines the sales price to be set. In the next step, real estate agents bring your property to solvent interested parties, here it is not only about real estate portals and marketing, also the property valuation(house valuation / apartment valuation), credit check of potential buyers, viewing appointments and negotiations are the task of the broker, up to the purchase contract, the notary appointment and tax issues. Get to know the matter of selling real estate here in the guide. Simply explained, step by step!

• Sell property

Commercial property: special case

Selling commercial property is always a special case, compared to the typical apartment or single-family home. For example, the sale of hotels and entire shopping centers, with underground parking as an extra.

Sell hotel property

Many questions also reach us specifically on the topic of selling hotels. Therefore, we have summarized the topic here once again in more detail for our readers. Especially for those who are selling a hotel for the first time, or the very first property.

Hotels have a few special parameters, for example in the valuation. Just as with commercial real estate in general, it is not only about the substance but also about the potential of the property, from the state of renovation to the location of the hotel. In very simple terms, how much will the commercial property, or in this special case the hotel, generate in the next five years? Very simply put. The valuation of the hotel is therefore much more complex.

Read more here in the small guide on the subject:

• Sell hotel

Sell mall

Shopping mall selling – Shopping behavior is changing. More and more people order items, no matter if clothes, accessories, furniture or even other knick-knacks on the internet, on online shops. Inner cities, the most expensive shopping streets, but also life in small towns is changing. Accordingly, the fluctuation in shopping centers is just as, smaller and smaller. If you are in the unfavourable situation of thinking about selling your property or shopping centre, you can find the first information here.

• Sell mall

Der Beitrag Selling Commercial Property: Procedure, brokers and property types erschien zuerst auf ℄ Real Estates.

Notary: purchase contract, ownership and tax law

The notary must certify the sale of any property. He acts as an independent legal authority and is supposed to protect both buyer and seller. After the preliminary contract has been drawn up, he holds a meeting with both parties and consequently draws up the main contract. He does not represent one of the two sides, but both. This reduces the legal risk for both parties. Not only does he have to notarize the purchase agreement, but he also has to explain all the legal issues. In addition, he is the one who arranges for the transfer in the land register. This only takes place when the buyer has also paid the purchase price. Furthermore, the claims formulated in the contract are immediately enforceable. The seller does not have to sue in case of non-payment. Instead, the notary can immediately instruct the bailiff.

Before the notary appointment: organisational matters, documents

But before it even comes to the notary appointment, many other legal issues must be clarified. For example, the ownership structure must be clarified and proven. Check whether you are really the sole owner or whether other people may also have a claim to the property. For example, if the property is jointly owned by two people, there will be a purchase price distribution after the sale that corresponds to the ownership shares.

Last but not least, tax regulations must also be taken into account. If you sell a property that you have used yourself, no tax is due. If the property is rented out or used commercially, it must have been in your possession for at least 10 years. Otherwise, the so-called speculation tax must be paid. Here, the legislator is guided by the date of the notarization of the purchase contracts. The land transfer tax must always be paid. However, this is usually borne by the buyer. The amount of the real estate transfer tax is a matter for the federal states and is set by the respective federal states themselves.

Legal support from an experienced broker

The sale of real estate in Germany is legally regulated by the notary. He clarifies all legal questions concerning the purchase contract. However, a great deal of research and work is necessary in advance in order to meet all legal requirements and avoid pitfalls. It is therefore advisable to contact an experienced real estate agent who knows the legal regulations. This will save you a lot of tedious research as well as a lot of stress and frustration.

Broker contract: tips and help

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised to use the comprehensive services of an estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

Tasks of a broker

Basically, a real estate agent fulfils all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, advertises your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but unique task, answering customer enquiries is part of the daily business of an estate agent.

• Here you can find more information about the tasks of a broker.

Commission for the broker – The most important regulations

More than 80 percent of all properties for sale or rent are brokered. This means that the owner commissions a real estate agent to advertise the offer and to carry out all tasks up to the conclusion of the contract on his behalf. Professional brokerage is a service that is agreed between the client and the real estate agent. After the service has been rendered, a commission, the so-called brokerage fee, is due. Who pays the commission depends on the type of commission and the reason for the commission. If you sell your property through an estate agent, the buyer usually pays. In the case of lettings, the buyer principle has applied since 2015, so that the invoice recipient and commission payer is identical to the person who has commissioned a brokerage service.

• Here you can find more information about the broker commission.

Der Beitrag Legal: Notary, main contract and tax regulations erschien zuerst auf ℄ Real Estates.

What is important when selling the family home

Before the real estate agent can act, some basic facts must be clarified. Only those who are listed in the land register and are therefore the legal owners of the parents’ house are allowed to sell. In most cases, both parents are listed as owners in the land register, so that in the event of death, the surviving parent counts as the sole heir and decides how to deal with the property. If both parents are deceased, you as the children are the next heirs and can decide to sell the parental home, provided there is agreement.

In advance, a change in the land register entry is necessary, as your regular ownership is the basic requirement for the sale of the parents’ house. It becomes very complicated if one parent is already deceased and the other parent is no longer legally capable. In this case, if there is no general power of attorney and the surviving parent does not want to sell the property, only a guardianship court can decide on the sale.

Make arrangements in good time!

We recommend that you make such arrangements at a time when your parents and property owners are legally capable. A notarial power of attorney or a gift of the house during your lifetime simplifies your ability to act in the event that you have to sell your parents’ house and use the proceeds to finance, for example, the accommodation of your parents in a nursing home. Once all necessary matters have been clarified in advance, we can sell your parents’ house promptly and at the real market value on your behalf.

Selling your parents’ house? The process in detail

More information about inheritance:

Inheritance settlement

Properties inherited in community pose a particular difficulty when selling. Within the framework of a community of heirs, there are several owners in the land register. This circumstance has a detrimental effect on the interest of potential buyers and makes the sale process more difficult. There is a solution to simplify the settlement and at the same time provide for a clear guideline of all heirs with equal rights. The settlement of an estate refers to the dissolution of a community of heirs, which is carried out on the basis of clear contractual regulations and is not bound by any particular form. Everything you need to know about inheritance settlement.

Community of heirs

From practice it is known that a community of heirs rather rarely agree. But from the disagreement and open disputes in relation to a real estate inheritance arise losses that you can avoid with prudence. Avoid conflicts about the estate by consulting an estate agent and finding the best way with support. If the will does not provide otherwise, all co-heirs are equally entitled and obliged. This means that a sale is often the best solution and gives you the opportunity to divide the proceeds of the estate between all the co-heirs, thus avoiding the problem of an inheritance dispute. Learn more about the community of heirs.

Certificate of inheritance

You are registered in the will as the sole heir of the parental home. If the will is notarised and legally valid, your inheritance will not be challenged. Nevertheless, without an additional certificate of inheritance, you will face a problem at the latest if you become the owner of the property as a result of the correction in the land register and wish to sell it on, for example. You should have a certificate of inheritance issued irrespective of the will and thus protect yourself when inheriting houses or apartments. Everything about the certificate of inheritance.

Der Beitrag Inherited parental home – sell, rent or use yourself? erschien zuerst auf ℄ Real Estates.

Conclusion of contract online – right of withdrawal

What is the right of withdrawal for online contracts? If you search for a property on the Internet, you will usually find offers from real estate agents. In this respect, many prospective buyers ask themselves at what point they enter into a contract and place an order with the estate agent commissioned by the owner. Before you receive further data far from the information published on the Internet, you will be sent a cancellation policy by the real estate agent.

Only when you confirm it, which is done online with one click, the broker will act for you. You should know that at this moment you are entering into a contract and agree to pay the commission demanded by the agent if you decide to buy the property.

Financial commitments

If you are not convinced by the property after receiving further information or even after a viewing, you will not incur any costs. In this case, the contract is not concluded, so you have no financial obligation to the real estate agent. The situation is different if you decide to buy the property. Should you wish to negotiate the commission and lower it, for example, speak to the estate agent before accepting the cancellation notice. Once you have concluded the contract with one click, subsequent negotiations are usually not crowned with success.

Commission payer has 14-day right of withdrawal

In general, you can revoke the contract within 14 days without giving any reason. The revocation requires that you inform the broker in writing or by e-mail that you do not want any further services. The revocation instruction is basically directed to the contractual partner who is responsible for the payment of the commission.

Ifyou commission a real estate agent to find a solvent tenant, the right of withdrawal applies to you as the owner. If you want to buy a property, you are obliged to pay commission when the sale is concluded, so in this case you are the party entitled to revoke. In general, either party can revoke the contract if there are concise errors in the right of revocation or if the revocation instruction was not sent correctly and in written form.

Broker contract: tips and help

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised to use the comprehensive services of an estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

Tasks of a broker

Basically, a real estate agent fulfils all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, advertises your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but unique task, answering customer enquiries is part of the daily business of an estate agent.

• Here you can find more information about the tasks of a broker.

Commission for the broker – The most important regulations

More than 80 percent of all properties for sale or rent are brokered. This means that the owner commissions a real estate agent to advertise the offer and to carry out all tasks up to the conclusion of the contract on his behalf. Professional brokerage is a service that is agreed between the client and the real estate agent. After the service has been rendered, a commission, the so-called brokerage fee, is due. Who pays the commission depends on the type of commission and the reason for the commission. If you sell your property through an estate agent, the buyer usually pays. In the case of lettings, the buyer principle has applied since 2015, so that the invoice recipient and commission payer is identical to the person who has commissioned a brokerage service.

• Here you can find more information about the broker commission.

Der Beitrag Right of withdrawal brokerage contract- rights and obligations erschien zuerst auf ℄ Real Estates.