Selling an apartment building in Munich: step by step

Let’s start with the question: How much is your apartment building in Munich actually worth? Find out all the steps of the sales process, from the valuation to handing over the keys.

Determine the value of your apartment building

The value of your property depends on various factors, including the location, the size of the apartments and the condition of the building, depending on the year of construction. A realistic sales price is crucial for a successful sale.

How to value an apartment building

The valuation of an apartment building is based on specific methods such as the comparative value method, the asset value method and the income capitalization method. A combination of these methods provides a realistic market value.

At least two of these methods are usually used to determine an exact value.

• Valuate apartment building
• Typical evaluation procedures
• Free evaluation by experts

Selling in Munich: What to look out for?

When selling your apartment building in Munich, you should consider a few important aspects:

1. Location and property prices: The target group of buyers depends heavily on the location and current property prices.
2. Documents: Make sure that you have prepared all relevant documents such as floor plans, land register excerpts and tenant lists.
3. Good contacts or an estate agent: An experienced estate agent can help you to organize the sales process efficiently and to approach the right buyers.

Location and property prices: The buyer target group in Munich

Munich is a sought-after real estate market with high property prices. The target group of potential buyers is looking for long-term investments and is prepared to pay corresponding prices.

You need to reach people who focus on long-term investments and do not need immediate cash flow.

Documents: Floor plans, land register excerpt, tenant lists, etc.

Before you start the sales process, make sure you have all the necessary documents for the property sale ready. This includes, among other things:

1. Land register extract
2. Parcel map
3. Building plans and building permits
4. Refurbishment status
5. Tenancy agreements and tenant list
6. Operating cost statements
7. Energy certificate
8. Status report or expert opinion

Good contacts or a good broker

As apartment buildings in Munich often fetch high prices, it is advisable to consult an experienced estate agent. An estate agent has the necessary contacts and can help you to approach the right buyers and achieve the best possible price.

Ultimately, it is always a personal question as to whether you want to sell with or without an estate agent.

Taxes when selling in Munich: What will you have to pay?

A quick look at the tax aspects of selling your apartment building in Munich:

1. Speculation tax: Sale within the speculation period is subject to tax.
2. 3-object rule in Munich.
3. Asset & share deals: differences in taxation depending on the sales structure.

The taxes are the same regardless of whether you are selling in Altstadt-Lehel, Ludwigsvorstadt-Isarvorstadt, Maxvorstadt, Schwabing-West, Neuhausen-Nymphenburg, Au-Haidhausen, Sendling-Westpark, Schwanthalerhöhe, Sendling or Bogenhausen.

Speculation tax: selling tax-free?

The speculation period is generally 10 years for rented properties. If you sell within this period, you must pay tax on the profits. After the period has expired, the sale is tax-free.

Further details on the 3-property rule and asset deals vs. share deals can be found in our article here.

Real estate & tax coaching

Do you need further support with the sale of your apartment building in Munich? We offer real estate and tax coaching by experts and investors. Contact us for more information:

• Real estate coaching
• Real estate tax coaching
• Contact us

Also discover our resources for real estate beginners:

• Real estate beginners

Selling an apartment building: Step by step

Let’s start with the most frequently asked question: “What is my apartment building worth?”. Then you will learn about all 18 steps of the sale, right up to handing over the keys in Berlin.

How much is your apartment building worth?

Small apartment buildings with 3 or 4 parties or large residential properties, with or without commercial space. There are many questions to answer. If you want to sell your apartment building, one thing is important:

A well-founded, market-oriented, realistic purchase price – the so-called market value.

How to value an apartment building

The property type determines the valuation method used to determine the market value. There are three standardized valuation methods for determining the market value of properties: the comparative value method, the asset value method and the capitalized earnings value method. Property, substance, year of construction, rental agreements, tenants and potential. We pay attention to all of these aspects when valuing apartment buildings in Berlin.

As a rule, at least two of these procedures are calculated simultaneously.

• Valuate apartment building
• Typical evaluation procedures
• Have an apartment building valued

Selling in Berlin: What to look out for?

1. Location, property prices: Buyer Target group
2. Documents: floor plans, extract from the land register, tenant lists
3. Good contacts or a good broker

Location, property prices: Buyer Target group

Berlin is special compared to other small German towns, cities and large cities. Berlin is extremelysought-after (A-location), not only by German buyers, but also abroad. Property prices are therefore so high that the expected return is rarely positive. This makes the investor target group more special.

You need to reach people who focus on long-term investments and do not need immediate cash flow.

This is why over 70% of apartment buildings in Berlin are sold with estate agents. Targeted marketing on-market and off-market, communication, credit checks, preliminary talks, documents, viewings, negotiations.

So be prepared, you are not selling a condominium with hundreds of prospective buyers, you have to address the right target group.

Documents: Floor plans, land register excerpt, tenant lists, etc.

Before the sales phase begins, you need all the relevant documents for selling your property. To cut a long story short, these are the documents you will need when selling an apartment building in Berlin:

1. Land register extract
2. Parcel map
3. Building plans and building permits
4. Refurbishment status / refurbishment backlog
5. Rental agreements
6. Tenant list
7. Operating cost statements
8. Energy certificate
9. Status report or expert opinion

Good contacts or a good broker

This brings us back to the right contacts. Apartment buildings in Berlin are usually not under 2 million euros, which requires special contacts with sufficient creditworthiness. This is precisely why over 70% of apartment buildings in Berlin are sold with estate agents.

Ultimately, it is always a personal question whether to sell, with or without an estate agent.

Anyone selling with an estate agent does not want to invest time in lengthy research, communication and negotiations. But it’s also about the selling price. If you only talk to 3 or 4 people yourself, you will be lucky to get 1 offer. Professionals use their contacts and talk to many potential buyers in order to get the best, highest offer that can be achieved in the current market situation.

Here are a few more details.

Taxes when selling in Berlin: What will you have to pay?

A very quick look at taxes when selling an apartment building in Berlin:

1. Speculation tax: sell tax-free
2. 3 objects rule in Berlin
3. Asset & share deals: only 1.54% tax

Speculation tax: selling tax-free?

The speculation period explained more quickly:

• (Exclusively owner-occupied = 3 years)
• Rented = 10 years

If you sell within the speculation period, you must – simply put – pay tax on the profits as normal, just like income from work, regardless of whether you are employed or self-employed. If you want to do a quick calculation, use my free speculation tax calculator. Once the period has expired, the sale is tax-free.

There is also the 3-object rule and, of interest to you, the difference between an asset deal and a share deal. Read more here:

• Selling an apartment building: Taxes

Real estate & tax coaching

Real estate & tax coaching from experts and investors. I am happy to bring you together with the best:

• Real estate coaching
• Real estate tax coaching
• Contact us

Here you can find more for:

• Real estate beginners

Selling an apartment building in Düsseldorf: step by step

Let’s start with the basic question: How much is your apartment building in Düsseldorf actually worth? Find out all the steps of the sales process, from the valuation to handing over the keys.

Determine the value of your apartment building

The value of your property depends on various factors, including the location, the size of the apartments and the condition of the building. A realistic sales price is crucial for a successful sale.

How to value an apartment building

The valuation of an apartment building is based on specific methods such as the comparative value method, the asset value method and the income capitalization method. A combination of these methods provides a realistic market value. The principle is the same for all districts, whether Stadtmitte, Pempelfort, Derendorf, Golzheim, Oberkassel, Unterbilk, Friedrichstadt, Bilk, Carlstadt or Flingern-Nord.

At least two of these methods are usually used to determine an exact value.

• Valuate apartment building
• Typical evaluation procedures
• Free evaluation by experts

Selling in Düsseldorf: What to look out for?

When selling your apartment building in Düsseldorf, you should consider a few important aspects:

1. Location and property prices: The target group of buyers depends heavily on the location and current property prices.
2. Documents: Make sure that you have prepared all relevant documents such as floor plans, land register excerpts and tenant lists.
3. Good contacts or an estate agent: An experienced estate agent can help you to organize the sales process efficiently and to approach the right buyers.

Location and property prices: The buyer target group in Düsseldorf

Düsseldorf is an attractive real estate market with various districts and a high demand for residential space(A-location). The target group of potential buyers is looking for long-term investments and is prepared to pay corresponding prices.

You need to reach people who focus on long-term investments and do not need immediate cash flow.

Documents: Floor plans, land register excerpt, tenant lists, etc.

Before you start the sales process, make sure you have all the necessary documents for the property sale ready. This includes, among other things:

1. Land register extract
2. Parcel map
3. Building plans and building permits
4. Refurbishment status
5. Tenancy agreements and tenant list
6. Operating cost statements
7. Energy certificate
8. Status report or expert opinion

Good contacts or a good broker

As apartment buildings in Düsseldorf often fetch high prices, it is advisable to consult an experienced estate agent. An estate agent has the necessary contacts and can help you to approach the right buyers and achieve the best possible price.

Ultimately, it is always a personal question as to whether you want to sell with or without an estate agent.

Taxes when selling in Düsseldorf: What will you have to pay?

A quick look at the tax aspects of selling your apartment building in Düsseldorf:

1. Speculation tax: Take into account the speculation period for tax-free sales.
2. 3-object rule in Düsseldorf.
3. Differences between asset deals and share deals: effects on taxation.

Speculation tax: selling tax-free?

The speculation period is generally 10 years for rented properties. If you sell within this period, you must pay tax on the profits. After the period has expired, the sale is tax-free.

Further details on the 3-property rule and asset deals vs. share deals can be found in our article here.

Real estate & tax coaching

Do you need further support with the sale of your apartment building in Düsseldorf? We offer real estate and tax coaching by experts and investors. Contact us for more information:

• Real estate coaching
• Real estate tax coaching
• Contact us

Also discover our resources for real estate beginners:

• Real estate beginners

Market value: Sales price for house & apartment

Let’s start with the 2 most important questions:

What does market value mean?

The market value is the price that can be realized in the ordinary course of business within the specified time frame in accordance with the legal circumstances and actual characteristics, the other properties and the location of the property or the 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 BuildingCode (BauGB). The market value is therefore an estimate of the price that can be achieved on the market. The market value is generally used for the sale and purchase of land and buildings. It may also be necessary to determine the market value in the event of foreclosures, tax assessments by the tax office, divorces and inheritances .

Where can I find the market value?

You won’t find the market value in a list, it has to be calculated using the typical valuation methods – more on this in a moment.

Determining the market value: How do you calculate the market value?

The market value assessment refers to the macro-location (city/region) and micro-location (immediate surroundings of the property) of the property, its section, size and any existing land charges that may reduce the value. In accordance with the 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 over a certain period of time.

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

• Material value of the property, if developed
• Nature and location of the property (size, type of development)
• Legal circumstances (e.g. land register, monument protection)
• Other objects of the valuation

But:

In reality, however, market demand has a decisive influence on the value of your property.

The demand for real estate and the features sought vary greatly from region to region. Just think of A-locations such as Munich and Berlin, where the location plays a major role in the market value.

Documents for determining the market value

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

• Land register extract
• Building plans, floor plans, sections
• Building description
• Site plan and parcel map
• Calculation of living space
• Energy certificate

For condominiums, the following are also required:

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

For income-producing properties, these must also be submitted:

• Operating costs
• Rental listings
• Rental agreements

Rights and encumbrances must also be viewed:

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

Weighting of criteria for market value

Particular weight 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 generally include the roof, cellar, windows and heating, are also assessed. The type of house is also assessed. A building built before 1945 is an old building, after 1945 it is classified as a new building. The exterior design, floor plan, garden, façade, room layout and lighting conditions are also taken into account.

Factors such as location, balcony and attractiveness for the target group play an important role in the rentability of the property. Other factors included in the valuation are, for example, an elevator and the property’s fixtures and fittings:

• Plot area (proportionate living space or total area)
• Living space according to the Living Space Ordinance (WoFIV)
• Garage, underground garage, parking spaces (existing renovation risks)
• Basement additionally usable or e.g. renovation backlog in the basement
• Demographics for the property location
• Property type (commercial, residential, care, listed, other special forms, mixed property)

Valuation: 3 valuation methods

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

Income capitalization approach: Breakdown into market value & building income value

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

Material value method: Value for the new construction of a property

In the asset value method, the market value of the land is first determined using the standard land value, after which the building asset value is added. The real value of the building is calculated from the building production costs less any age-related reductions.

The tangible land value (market value of the land) and the tangible building value are added together and multiplied by a tangible value factor. The calculation of the asset value factor depends on the type of building, the provisional asset value and the standard land value. The total tangible asset value calculated in this way indicates the financial resources that would be required to rebuild the property.

Comparative value method: Comparison with similar properties

The comparative value method compares your property with similar properties. It is used in particular when selling condominiums and residential buildings. The comparative value can also be determined for undeveloped land.

Only properties in similar locations and with a comparable layout are taken into account in the comparison. The properties included in the valuation should be in the immediate vicinity of the residential property. The comparative value method is considered to be particularly realistic. It is often used to determine the value of properties, as the locations are relatively comparable regionally.

Valuate property

House valuation, apartment valuation, what do you have to pay attention to for a good sales price? You can find my tips here:

• Valuate property

Buying a villa in Berlin: Tips & Offers

Discretion is a top priority in the world of luxury real estate. You will not find exposés of first-class villas (5 million euros and more) on conventional real estate portals. Celebrities, industrialists and public figures value discretion and therefore rely on real estate experts with an internal circle of buyers and filtered communication channels. Grunewald, Dahlem, Wannsee, Nikolassee or even city locations in Charlottenburg or Schöneberg, let’s start with the tips. In addition, my villas in Berlin, you should be looking for your option on exclusive gems in Berlin.

By the way, for sellers, I am always looking for villas in Berlin for my clients. Please contact me without obligation.

Here you will find tips & villas in Berlin.

1. Buying a villa: Tips, procedure until the keys are handed over
2. Villas in Berlin: My offers for you
3. Purchase process, districts & Co.

Buying a villa: townhouse, city villa or Berlin suburbs

Do you long for a luxurious lifestyle with plenty of space and privacy? A villa offers you just that. You can live in a spacious property that offers all amenities. However, the costs of purchase and maintenance are often considerably higher than for other types of homes. A villa requires a considerable financial investment and regular maintenance to maintain its splendor.

My guides for you:

• Build or buy a villa?
• Buy a villa

Villas in Berlin: Off Market by Lukinski

Tip! Are you looking for a villa in Berlin? Take a look at my off-market portfolio:

• Villa in Berlin

3 current examples! Villas and townhouses that might interest you:

• Villa € 3.05 million – Grunewald
• Art Nouveau villa, € 9.7 million – Nikolassee
• Townhouse € 12.41 million – City location

An insider tip in the luxury real estate market is the “off market” – an exclusive niche in which properties are traded discreetly. Here, villas are offered before they are officially listed. Prices for these exclusive properties have risen significantly in recent years due to increased demand and low interest rates. However, the market for luxury villas remains attractive.

You can find out more about our off-market properties here:

• Off Market Real Estate

Procedure: explained step by step

Buying a villa is a structured process, like a typical house purchase, which involves various steps. From the initial budget planning to the active property search to handing over the keys – every step is crucial for a successful completion.

Buying a villa – The process explained step by step:

Find the right villa: Checklist

Various factors play a decisive role when buying a villa. The location of the property, the size of the plot, the room layout, furnishings and extras as well as safety and accessibility aspects are just some of the points to consider.

• Location
• Size of the property
• Room layout
• Equipment
• Safety of the environment
• Accessibility of the villa

The purchase of a villa involves various cost factors that need to be taken into account. In addition to the purchase price, there are also incidental purchase costs, including estate agent’s commission, notary fees and land transfer tax. Detailed financial planning is essential to avoid unpleasant surprises.

Let’s take a closer look at the individual cost items in the next step.

Purchase price and typical ancillary purchase costs: Overview

When buying a villa, costs are incurred that are made up of 1) the purchase price for the property and 2) the ancillary purchase costs. But be careful: Some of the ancillary purchase costs are the same in all federal states. The other part differs depending on the federal state in which you buy your villa. If you are working with a real estate agent, there is also the estate agent’s commission. For private purchases, this is split between the buyer and seller.

But how high are the incidental purchase costs in Berlin? Here is an overview:

• Real estate transfer tax: 6.0%
• Notary fees: 1.5%
• Land register entry: 1.5-2.5%
• Broker commission: 7.14% depending on the purchase price

Where to buy in Berlin? Most exclusive locations

Spacious plots, majestic avenues and prestigious estates make up the charm of Berlin’s most luxurious residential areas. If you are looking for a villa in Berlin’s most expensive locations, you will find it in the Grunewald and Dahlem districts, among others. These districts not only offer an excellent quality of life, but also an exclusive living environment characterized by tranquillity and elegance.

Here is a selection of the most exclusive residential areas in Berlin:

• Grunewald
• Dahlem
• Wannsee
• Weißensee
• Charlottenburg
• Schöneberg
• …

Berlin has many beautiful corners, but the hotspot is in Weißensee, Grunewald, Dahlem and Nikolassee.

Townhouse, villa in the southwest, please contact me: Contact.

Buying a villa in Berlin: This is important

Buying a villa in Berlin is not only an investment in exclusive living comfort, but also in a prestigious lifestyle. The city offers a wide range of villas in different locations, so there is something to suit every taste and requirement. Thorough planning, expert advice and transparent financing are key factors in successfuly realizing your dream of owning a villa in Germany’s capital, Berlin.

My selection: Off market luxury real estate

Here you will find an excerpt of my Berlin portfolio:

• Villa in Berlin