Selling underground parking: value, broker and procedure

Let’s start with one of the most important questions for first-time sellers: What is my underground garage worth? After the 3 central factors, you will find all the steps of the real estate sale, which are also relevant for you and the sale of your underground car park, from documents, to the broker question, to the purchase contract and handover.

Let’s start with the 3 most important value factors:

1. Location (city, district and street)
2. Condition of the underground parking
3. Short-term, long-term tenants / vacancies

Location: city, street and fluctuation

The better the location of your underground parking garage, the easier it will be to rent out the parking spaces to long-term and / or short-term parkers at a later date. In order to keep the vacancy rate as low as possible, the first step in the valuation is to take a look at the location.

Situation in the valuation (current and perspective):

• Macro perspective – In which city do you sell?
• Mesoperspective – Which district?
• Micro perspective – Which street and house number?

Regardless of whether it’s a small town, medium-sized city or metropolitan area, there are more and more cars in city centers every year. The higher the fluctuation and the fewer the competing offers at the location, the better – also for the investors’ return.

The next step is for buyers (important to know their perspective) to evaluate the condition of your underground parking garage.

Condition of your underground parking

Very few investors want to undertake an extensive underground garage renovation. Of course, there is a certain percentage who want to buy very, very cheaply and are therefore looking for old or poorly maintained properties. The condition plays the central role in the evaluation of your underground car park, in addition to the location.

For a concrete evaluation, it is necessary to determine the actual state and the target state.

Typical shortcomings of the first decades are:

• Underground garage floor
• Floor coatings
• Concrete repair
• Crack sealing
• Waterproofing the ceilings
• …

Sometimes it is also redevelopment backlog, for example, due to disputes about redevelopment of the owners’ association.

Important in advance, it is only an example:

The maintenance costs for parking garages fluctuate massively depending on the condition

Very old underground parking: 40+ years old

Here’s an example, a really old underground garage, with about 100 parking spaces:

Let’s say the underground parking garage is now 40, 50 years old and really at the end of its rope and getting on in years. Conversion and renovation costs are therefore unavoidable for the new underground garage owner.

Per parking space of the underground garage you can count in something with ~ 6,000 euros (as a total project), with 100 parking spaces size.

The retrofitting of an underground parking garage floor alone would cost about 1.4 million euros. To this must be added the renovation of the concrete, round about 1.1 million euros.

Next, we take a look at the waterproofing of the underground parking garage ceiling. For the new insulation against dripping water, you can expect another 0.5 million euros (source: DZ Online). The items will be smaller, but in total not insignificant. In addition, smoke extraction, ventilation or even the renewal of the electrical installation, also to be able to take increasing markets, such as the increasing electric cars in the inner cities and residential areas.

Short-term, long-term tenants / vacancies

In addition to short-term tenants on site, the assessment also looks at long-term tenants and vacancies. In the end, the evaluation is therefore based on short-term/long-term tenants and the possible future potential (refurbishment, development, marketing) of the parking garage.

Long-term leases are of course the ideal case and vacancies the opposite. So that the valuation is realistic and so that later interested parties have an overview, information from your tenants is collected. In addition, there are many smaller parameters, in good A-locations, for example, also the commercial space rental for advertising (driveway, parking areas and facades).

Thus you have 3 central factors of the value determination:

1. Location (city, district and street)
2. Condition of the underground parking
3. Short-term, long-term tenants / vacancies

Step by step: checklist sale

Sales of underground garages are much more specialized than the simple sale of a parking space, parking lot or a single garage. Many underground garages are also not sold through real estate portals, but through personal networks, often by good and experienced real estate agents.

Nevertheless, it is important to know for the sale so that you can prepare well and also find an experienced real estate agent.

Preparation: broker, documents and valuation

The most important things about preparing real estate and sale.

• Financial planning and timing of sale
• Hire real estate agent
• Records and documents
• Increase real estate value
• Determine offer price
• Create exposé

Sales phase: networking and negotiation

The second phase is about marketing your property to find buyers and investors with sufficient creditworthiness.

• Market real estate
• Contact with prospective buyers
• Filter and select prospective buyers
• Credit check
• Viewing dates
• Sales talk & purchase price negotiation

Sales processing: complete transfer

From the purchase contract to the handover.

• Draw up purchase contract with notary
• Notary appointment
• Land register entry and payment processing
• Handover of the property
• Notary fees & broker commission
• Pay taxes

Partial ownership underground parking: Single parking space?

Lastly, on the smallest unit: Can you sell an underground parking space individually? The individual sale of underground parking spaces is possible. However, it depends on whether it is subject to special ownership or a special right of use. The difference is, if you have a parking space with its own land register sheet (special property), the sale is simple. In the case of a special right of use that belongs to a condominium, the special right of use can only be sold to another co-owner.

Here you can find more about the individual sale of parking spaces in an underground garage:

• Sell pitch

Location, location, location! Real estate market

Parking spaces are scarce in many hotspots in Germany. That’s why the first piece of good news is that you can sell your parking garage at a realistic price. Because last year alone, there were 2.92 million new passenger car registrations. According to the Federal Motor Transport Authority ( KBA ), the vehicle population in Germany increased by a full 1.1 million vehicles compared to the previous year’s reporting date to approximately 66.9 million vehicles registered in Germany, a full +1.6%.

66.9 million registered vehicles in Germany

With the right buyer and investor network, typically through experienced brokers with successful deals, you will have your underground parking garage sold relatively quickly.

Here’s another special look at general real estate sales in the larger cities:

• Berlin
• Düsseldorf
• Frankfurt
• Hamburg
• Cologne
• Munich
• Stuttgart

Sell parking garage: valuation to broker

First, let’s start with one of the most important questions for first-time sellers: what is your parking garage worth?

After the 3 important factors, you will then find all the steps of the sale, from documents, to the broker question, to the purchase contract and handover.

Let’s start with the 3 most important value factors:

• Location (city, district and street)
• Parking garage condition
• Tenant / Vacancy

Location from parking garage: Perspective

The better the location of your parking garage, the easier it will be to rent it out later to short-term and long-term tenants or parking ends. To keep the vacancy rate as low as possible, the first step in the valuation process is to take a close look at the location.

Situation in the valuation (current and development):

• The macro perspective – Which city?
• The meso perspective – Which district?
• The micro perspective – street and house number?

Whether small town, medium-sized cities or metropolitan areas, every year there are more and more cars in the city centers – also seen later in the example on the real estate market in Germany. The higher the local fluctuation and the lower the competitive offers here at the location, the better for your sales success, but also for the investors’ return.

Accordingly, the development of the location also plays a role.

The second important issue: the condition of your parking garage.

Condition of the parking garage: redevelopment

Very few buyers and investors want to put a lot of work into the new property, you want to earn a direct return. For you, but also for those who gladly accept some work, for a cheaper purchase price, the current condition counts after the location (macro / meso / mirco).

Irrelevant for relatively new parking garages, important for old ones. Here is an insight for you, especially first-time sellers, how high the refurbishment costs can be for such a project.

Typical shortcomings of the first decades are:

• Carbonate remediation (by carbon dioxide and sulfur dioxide)
• Floor coatings
• Concrete repair
• Crack sealing
• Waterproofing the ceilings
• …

Important in advance, it is only an example:

The maintenance costs for parking garages vary massively, depending on the condition

Very old parking garage: cost example (100 parking spaces)

Let’s say it’s a really old parking garage, with 100 spaces:

Let’s say the parking garage is 40, 50 years old and really at the end of its rope. Conversion and renovation costs are unavoidable. If we roughly calculate with ~ 100 parking spaces, you can expect ~ 6,000 euros per parking space (as a total project).

Just upgrading the floor of a parking garage would cost about 1.4 million euros. Then there is the rehabilitation of the concrete, round about 1.1 million euros. Next, we take a look at the waterproofing of the parking garage ceiling. For the new insulation against dripping water, you can expect another 0.5 million euros (source: DZ Online). The items will be smaller, but in total not insignificant. In addition, smoke extraction, ventilation or even the renewal of the electrical installation, also to be able to take increasing markets, such as the increasing electric cars in the inner cities and residential areas.

Tenants (long-term/short-term) and vacancies

Also a clear difference, existing leases. Especially if the parking garage is not located in a busy city center where the residential complex, but in special places, for example, measuring facilities, airports or even something else outside.

Apart from short-term tenants and fluctuation at the location, a look at long-term tenants and vacancies also counts. In the end, it is the tenants and the potential of the parking garage that are important in the initial evaluation.

Long-term leases are, of course, the ideal case. Accordingly, vacancies are the opposite. In order for prospective buyers to have an overview and for the valuation to be realistic, information on the tenants is required.

In addition, there are many smaller parameters, in good A-locations, for example, commercial space rental for advertising (driveway, parking areas and facades).

These are the 3 central factors of the evaluation:

• Location (city, district and street)
• Parking garage condition
• Tenant / Vacancy

Regular sale step by step

Sales of parking garages are much more specialized and extensive than the simple sale of a parking space, parking lot or a single garage in a residential development.

The majority of parking garages are not sold through real estate portals, but through personal networks, often by good and experienced real estate agents.

Nevertheless, it is important to know for the sale so that you can prepare well and also find an experienced real estate agent to sell your parking garage.

Preparation: broker, documents and valuation

How to prepare your property and the sale.

• Financial planning and timing of sale
• Hire real estate agent
• Records and documents
• Increase real estate value
• Determine offer price
• Create exposé

Sales phase: networking and negotiation

The second phase is about marketing your property to find buyers and investors with sufficient creditworthiness.

• Market real estate
• Contact with prospective buyers
• Filter and select prospective buyers
• Credit check
• Viewing dates
• Sales talk & purchase price negotiation

Sales processing: complete transfer

From the purchase contract to the handover.

• Draw up purchase contract with notary
• Notary appointment
• Land register entry and payment processing
• Handover of the property
• Notary fees & broker commission
• Pay taxes

Partial ownership of parking garage: single parking space?

Finally, the smallest unit:

Can you (as a part owner) sell a parking space individually? The individual sale of parking spaces is possible. However, it depends on whether it is subject to special ownership or a special right of use. As a rule, above-ground parking spaces are a special right of use, so a sale requires the consent of the entire owners, unless otherwise stipulated in the partition agreement.

Here you can find more about the individual sale of parking spaces in a parking garage:

• Sell parking space

Location, location, location! Real estate market

Parking spaces are scarce in many hotspots in Germany. That’s why the first piece of good news is that you can sell your parking garage at a realistic price. Because last year alone, there were 2.92 million new passenger car registrations. According to the Federal Motor Transport Authority ( KBA ), the vehicle population in Germany increased by a full 1.1 million vehicles compared to the previous year’s reporting date to approximately 66.9 million vehicles registered in Germany, a full +1.6%.

66.9 million registered vehicles in Germany

With the right buyer and investor network, typically through experienced brokers with successful deals, you will have your underground parking garage sold relatively quickly.

Takeover of Deutsche-Wohnen by Vonovia

Tip. At the end there is still the press review, the most important news from the real estate world, summarized. There are interesting things in the FAZ on the subject of “New life for houses of worship”, redesigning former churches, monument protection, and much more. You can find all real estate news directly here: Real Estate News.

The Süddeutsche Zeitung says “Vonovia does not have to become a rent shark”. The Handelsblatt even headlines “Share deals loophole: Why the merger of Vonovia and Deutsche Wohnen is triggering a tax debate” and the ARD warns “Merger plans alarm tenants”. But what is behind the deal?

Let’s first look at the two public companies and their ratios:

Vonovia Key Figures

• Largest residential group in Germany
• Market capitalization: 29.3 billion euros

German Housing

• 2nd largest residential group
• Market capitalization: 18.8 billion euros

Vonovia vs Deutsche Wohnen in comparison

How big is the difference between the two largest providers in Germany?

Difference (cf. Deutsche-Wohnen): 10.5 billion euros; 64.2 %.

Second attempt: Merger plans

Two attempts at a merger in the past had already failed. However, a majority of shareholders are now expected to agree to sell their shares to Vonovia. So far, the deal has failed because of the management of the Berlin-based Deutsche Wohnen Group. As soon as more than 50% of the shareholders of Deutsche-Wohnen sell their shares to Vonovia, the takeover will take place. A merger of the housing groups would represent the largest deal in German real estate history and thus create Europe’s largest housing group.

“I am very, very sure that a great many shareholders will accept this offer,” said Zahn (Deutsche-Wohnen)

Vonovia: Germany’s largest real estate group

Vonovia is one of the central companies in the German housing market. With around 1 million customers at 400 locations, the giant Group generated sales of 3.7 billion euros last year. The value has multiplied since the company was founded in 2001. The business is divided into three units: Letting, Extension and Sale of Real Estate, Construction, Leasing and Management.

Vonovia’s motto “We give people a home” will be even more present in Germany’s cities in the future. This is because the already large real estate company would increase its market share many times over by merging with Deutsche-Wohnen. To date, Vonovia’s portfolio spans 400 German locations and over 400,000 apartments. The large range of apartments can be found in cities such as Berlin, Düsseldorf, Cologne, Hamburg, Munich and Frankfurt am Main.

Facts and figures

• Main location: Bochum
• Locations: 400
• Turnover: EUR 3.67 billion (2019)
• Foundation: 2001
• Predecessor: Gagfah
• Customers: Approximately 1 million

Share price

German real estate companies are earning better than ever before. When you look at the price trends of the individual share prices, you quickly see that “residential gold” is still a household name. Renting or managing real estate through Immobilien GmbHs in Germany means that over 2 decades of stable returns. Vonovia stock is one of the most valuable stocks in Germany. Read more here about the:

• Vonovia share

Here’s a quick look at how the stock has performed over the last 36 months:

Deutsche-Wohnen: Quality & excellent locations

Deutsche Wohnen (founded in 1924) is the second largest real estate company in Germany after Vonovia. Its headquarters are located in Frankfurt am Main. The portfolio currently comprises around 164,300 units, including 161,500 residential units and 2,800 commercial units. The properties are characterized above all by high quality and excellent locations: Almost 92% of the properties are located in German growth regions.

Facts and figures on Deutsche Wohnen

• Number of employees: 1,280
• Foundation: 1924
• Residential units: 161,500
• Commercial units: 2,800
• Investment planning (2020): 3 billion euros

Share price

After Vonovia, the Deutsche Wohnen share is the most valuable on the German and European real estate market. Read more here about the

• Deutsche Wohnen share

Here’s a quick look at how the stock has performed over the last 36 months:

Vonovia and Deutsche-Wohnen are just two of many large, important stocks on the market. We have compiled a Top 30+ with the largest and most valuable real estate stocks. Below you will find all the important information about the top stocks.

Real Estate Stocks: Top 30+

Not everyone can affordreal estate as an investment. Through real estate shares, however, everyone can participate in the real estate market and invest money. The share prices of the major players rise year after year. Vonovia, Deutsche Wohnen, Dream Global, CBRE and Patrizia are a few of the best known active companies in Germany. In addition, there are more than 25 other companies. We have compiled an overview of the most popular real estate stocks for you as an investor. But first, a look at the risks of a stock, the stock market, for beginners and beginners. Now to the list and more about the real estate market, your investment options and all prices at a glance, you will find here:

• Real Estate Stocks: Top 30+ Real Time Price, Analysis, Recommendation & News

Real Estate News:

The Süddeutsche Zeitung says “Vonovia does not have to become a rent shark”. The Handelsblatt even headlines “Share deals loophole: Why the merger of Vonovia and Deutsche Wohnen is triggering a tax debate” and ARD warns “Merger plans alarm tenants”. The headlines are now familiar. Here is more news from the real estate industry:

Focus Online: KfW loan saves real estate buyers thousands

The Focus Online blog reports on “Study shows: Who should pay? In some regions, buyers boycott exaggerated real estate prices now” and “Construction financing: Building money has never been so cheap” . More news and current laws:

• Guest article by Carsten Zimmermann: KfW loan saves property buyers thousands – but now the subsidy is becoming a lottery prize!
• Study shows: Who’s going to pay for it? In some regions, buyers are now boycotting exorbitant real estate prices
• Construction financing: Building money has never been so cheap

IM Immobilienmanager: Warburg-HIH Invest buys police headquarters near Cologne

This week at IM Immobilienmanager among others articles about “Warburg-HIH Invest acquires new police headquarters near Cologne” and “ISG Germany appoints new managing director” . You can find more news here:

• Eligible Daikin technology in all product areas
• ISG Germany appoints new managing director
• Warburg-HIH Invest acquires new police headquarters near Cologne

Frankfurter Allgemeine: New life for houses of worship

The Frankfurter Allgemeine reports this week, for example, “New life for houses of worship: What can become of churches” and “Changing neighbourhoods: Images of memory”. More news from the past days:

• New life for places of worship: what can become of churches
• House on offer: Tenant desperately sought
• Neighbourhood in Transition: Images of Memory

Haufe: Will housing become more expensive?

New in the business section of Haufe this week is, among others, “Solar obligation in Baden-Württemberg: Will housing become more expensive?” as well as “Who comes, who goes? New CEO at Dr. Klein Wowi Digital; IC Group replaces management” . More real estate news for tenants, buyers and sellers:

• Compulsory solar energy in Baden-Württemberg: Will housing become more expensive?
• Reliable IT security for companies – but how?
• Who’s coming, who’s going? New CEO at Dr. Klein Wowi Digital; IC Group replaces leadership

T-Online: Housing prices continue to rise faster than rents

This week T-Online has topics such as ” Real estate collapse in major cities – experts warn of real estate bubble ” and ” Expensive CO2 participation – landlords demand Seehofer’s resignation ” . New topics of the week:

• “Overheating” – house prices continue to rise faster than rents
• Expensive CO2 participation – landlords demand Seehofer’s resignation
• Real estate collapse in major cities – experts warn of real estate bubble

Berlin.de: Vonovia with audit process

New articles and posts from Berlin.de this week include “Rent brake for municipal apartments in Berlin ” and “Expropriation initiative has almost 200,000 signatures” . More headlines of the week:

• Rent brake for municipal apartments in Berlin
• Senate: After housing offer from Vonovia with review process…
• Expropriation initiative has nearly 200,000 signatures

Immobilien Zeitung: Hamburg is building apartments like it last did in 1974

This week Immobilien Zeitung has interesting topics such as “Hamburg builds as many apartments as last 1974” and “Sometimes only a pharmacy and a supermarket remain of the trade” in the magazine. The posts and more tips can be found here:

• Hamburg builds as many apartments as last in 1974
• Apartments are also in short supply in Marburg
• Sometimes all that remains of the trade is a pharmacy and a supermarket

Spiegel: Social promises of the real estate bosses?

This week’s Spiegel is about “”The sheer size may worry one or the other”” and “What good is the social promise of the real estate bosses?” . More news from this week:

• What good is the social promise of the real estate bosses?
• Real estate groups offer Berlin thousands of apartments for sale
• “The sheer size may worry one or two”

Land sale Berlin: Learn the procedure

There are various factors that influence the value of a plot of land, depending on whether it is a meadow or forest plot, agricultural land, raw building land, land awaiting construction or building land. On the one hand, of course, the intended use of the land, the possibilities of building on it and, of course, one of the central value factors: the location of your land. Regardless of whether it is a building plot, land for construction, forest land or agricultural land in the Berlin area, the same questions always arise for sellers and property owners!

This is where our guide or guidebook comes in, which brings the sale of land, including the valuation of the land, piece by piece closer.

The right time: credit pressure, old age, inheritance

As different as the reasons are, the process of selling real estate is always relatively the same. Broadly speaking, it involves 3 phases: 1) the preparation for the sale of the property, 2) the marketing phase and 3) the completion of the sale.

Reasons for selling a property are many and varied. As mentioned above, it can be a sudden inheritance and confronting a property that may not even be in your immediate area. Even if it is right next door, what do you do with that property? Apart from inheritance, there are of course many other reasons, for example financial pressure due to existing loans, as well as old age.

Either way: Timing is key so there is no pressure to sell. Ideally, you inform yourself now because you want to sell in 3 or 4 months. If you need to sell sooner, it is advisable to approach domestic investors, foreign investors, institutions, construction companies directly through experts in off market trading. More on this later.

Advantage Berlin: Hype of the city

Berlin attracts investors like no other city in Europe. Berlin is located in the middle of the many countries that are part of the European Union. Berlin is also relatively central in Germany and is easily accessible from cities like Munich, Hamburg and Cologne, by car, train and plane. As the capital city, it is not only interesting for tourists and business, the country’s major politics are also at home here. You see: Many, different target groups!

This in turn supports the sale. Sell in districts such as Schöneberg and Wannsee or in trendy neighbourhoods such as Kreuzberg, Friedrichshain and classy districts such as Grunewald and Weißensee.

Sale in 3 phases: Preparation, marketing and closing of the sale

You may have already read about these 3 phases, with their individual steps, in our guide to selling property.

This additional guide to selling land in Berlin is specifically for those selling their first property. In addition to the phases, we also take a look at the property valuation (location, layout, size, development, etc.), the general and more specific documents and records needed for the sale and … but let’s start at step 1:

The preparation of the sale

Prepare land sale: Planning and strategy

The preparation phase is concerned with strategic planning, as with the sale of an apartment or house. The preparation phase is crucial for the success of the sale, here it is about the right timing, the selection of the right broker (for the right target group, as mentioned above), important documents and records for the sale, from which ultimately the offer price (land value) is calculated. No matter whether building plot, forest, field or acre.

Berlin is a sought-after place. At the same time, as a (first-time) seller, you can make an extremely large number of mistakes that ultimately cost you a lot of money. A loss of only 15% on a property worth 5,000,000 euros can result in a loss of 750,000 euros. And we are not even talking about properties in Berlin Mitte. You can achieve such prices in Berlin Pankow, for example.

But back to step 1 in the preparation:

1. Set time schedule
2. Make an appointment with a real estate agent
3. Collect documents
4. Prepare property
5. Determinequotation price
6. Create exposé

Timing and broker selection

First of all there is the time planning. For the sale of a property you should calculate with at least 3 months, from the first thought to the notary appointment and transfer of the purchase price. Of course, it can go faster (the mentioned, direct and discreet investor approach in the off market area), but we want to give a general overview here!

At least 3 months time, until the sale, does not mean that it is also sold after three months. Here, above all, the decision for the right real estate agent plays a role, as well as the valuation of the property. If the valuation is set too high, you will lose interested parties for your property offer – even in Berlin!

Generally speaking, selling under time pressure is never a good option.

Real estate prices in this country are relatively high and stable in almost all locations, after all, it is one of the strongest real estate markets in the world. Berlin in particular has been experiencing a boom for a long time. Square meter prices in Berlin are rising, even though the city government is fighting against it. Measures against “speculators” (investors) are, for example, the Mietpreisbremse (albeit recently overturned), ordinances on renovation and modernization, conversion of rental housing to condominiums, etc.

Berlin: Price development (comparison)

The goal of most investors: to develop land. That means: the more residential units, the more buildable floor space, the better. This is also evident when looking at the price being asked for a square metre of condominiums in Berlin.

The development of asking prices for condominiums in Berlin, from 2012 to the 1st quarter of 2021 are enormous. Here is an insight into the average price, in euros per square metre.

• 2012 (Q1): 1,671 Euro / m²
• 2015 (Q1): 2.321 Euro / m² (+ 38.9%)
• 2017 (Q1): 3.154 Euro / m² (+ 35.9%)
• 2019 (Q1): 3,897 euros / m² (+ 23.5%)
• 2021 (Q1): 4,781 Euro / m² (+ 22.6%)

From 1st quarter 2012 to 1st quarter 2021, a total increase of + 168.1 %.

Sell land privately?

From my experience without expertise through previous sales, a real experiment and venture, where many mistakes can arise in the sale of property. Often it is then recommended to accept the help of the real estate lawyer, because he knows better with the tax savings in the sale of real estate, finances & Co.

If you’re interested in the dangers that can happen from selling property privately, here’s our list of the typical, 15 mistakes when selling real estate. Condo, house, apartment building, land:

• Mistakes in the sale of real estate

So let’s summarize briefly: If you sell off market to well connected brokers, it can be very quick, sometimes under 30 days to transaction, thanks to targeting investors in the internal network. When selling via real estate portals, it’s more like 3 months and a lot of communication with private individuals, plus credit checks, etc.

After scheduling and choosing a good real estate agent, move on to the documents and paperwork they will need for the property sale.

Documents and records for the sale of land

The documents are prepared early, because they also serve for the valuation of the property, we will come to that in a moment.

Reading Tip: Selling Property: Documents

As a rule, before you sell a property, you need the following documents:

1. Cadastral map or real estate map from the cadastral office
2. Development plan
3. Land register extract Land registry
4. Land use plan
5. Preliminary building application
6. Information on building encumbrances
7. Development proofs
8. Notice of land tax

Prepare the land? Shouldn’t the next step be the property valuation and the offer price? No, because by no beauty corrections the price can be corrected often still a little upward. No picture has been taken yet, no exposé and no investor has been approached.

Increase in value before property valuation

Here is a small example from practice: When I speak with my investors, these are usually larger companies, institutions or family offices. Accordingly, a person is quickly sent from somewhere in the country, who quickly makes an overview of the property, live on site. Just like that, quickly by car, a few meters on foot.

For the exposé, for the valuation but also for such spontaneous viewings, it is worth taking a look at ways in which you can still increase the value of your property. From simple “beauty corrections” to preparatory measures for further development.

In our example from practice it was about a property from Berlin. Who knows Berlin knows that empty properties, without security measures, are quickly littered. If even apartment buildings in Berlin are occupied, then no properties are safe.

It’s just little things, but just as an increase in the value of the property, through small beauty corrections or renovations is achievable, can also optimize properties before the property photos, before the valuation, before the first visits. Thus the value can be increased with the property sale, in which you for reorganization work a craftsman, or for small rebuilding measures an architect in Berlin to rate pull. It is not about 5%, 10% increase in value, but even an increase in value of 1%, 2%, makes a property of 1 million market value already a significant proportion, which you can pocket as a seller profitable for themselves.

Offer price: Determine property value (valuation)

The valuation of a plot of land is subject to various factors, just like the valuation of any property. The following factors, among others, are decisive for the valuation of land.

First, as with any property, is location.

Location, location, location … also for Berlin properties

This is also about the development and transport links. The next factor in land valuation is the size of the plot. But size is not everything, the layout also plays a role. In addition to size and layout, there is of course also the development, soil condition, standard ground value, as well as possible contaminated sites and third-party rights.

Exact details should always be discussed and worked out in cooperation with your advisor (broker).

In addition to the location and size, of course, it becomes much more specific: Are we talking about building land, are we talking about soil samples, are we talking about forest land, then also climatic changes, to agricultural land and so on. The land valuation is therefore not as easy to summarize as the apartment valuation or the house valuation.

Value factors: checklist

The factors are important for the evaluation:

• Location of the property
• Size and cut
• Development of the area
• Soil composition
• Degree of development or buildability
• Legacy
• Third-party rights
• Ground value

Property types

In addition, depending on the property, still value factors in the area of the development. Depending on which possibilities are available for the construction.

• Forest or meadow land; if necessary, no construction is allowed
• Land awaiting construction; may be built on in the foreseeable future
• Undeveloped land; land not yet developed
• Building land; development possible within the framework of the development plan

Preparation for the sale of land – Conclusion

Here is a summary of the individual steps. A simple checklist, consisting of 6 key points, which will bring you closer to the process of selling a property.

1. Timing
2. Broker appointment
3. Documents
4. Prepare property
5. Offer price
6. Exposé

When it comes to property valuation, there are a number of factors that come into play. The complexity of each individual property valuation, we can not convey in this general guide, but we can give you this tip, ask yourself the following questions:

• What type of land are you selling? Is it a building plot, a forest plot, agricultural land,…
• How big is your property?
• What type of use is intended for your property?
• How can your plot be built on? This means building footprint (BGF) and house type and / or apartment type
• What are the transport links to the location of your property?

Berlin: Real estate in the capital

Capital, university city, historical stronghold and as an international location an attractive place to live for families, couples, singles and students. Accordingly, Berlin faces a continuously growing population due to immigration.

Berlin real estate market: overview

Berlin offers everything from fashion, art, finance, start-ups, and the list goes on. There is hardly a person who would not find their passion in this city of 3.75 million. This is also evident in the sprawl of the city and the different districts. For this reason it is often described as’ many cities in one’. A walk through Berlin-Mitte is very different from Kreuzberg and Prenzlauer Berg is not often confused with Zehlendorf.

• Real Estate Berlin

Living in Berlin: Popular residential areas

We present the most beautiful districts of the German capital and tell you where you can buy the best, highest quality and most exclusive properties to set up your new home, or which districts are best suited to invest in a property as an investment. Here we present the most popular residential areas – from upscale Grunewald to charming Schmargendorf and quiet Dahlem to historic Charlottenburg. Back to overview: Living in Berlin.

• Grunewald
• Charlottenburg
• Zoo
• Dahlem
• Schmargendorf
• Prenzlauer Berg
• Kreuzberg
• Kurfürstendamm

Selling real estate in Berlin: house, apartment and land

As an international location, Berlin is an attractive place to live for people from all over the world. While the district of Wilmersdorf in Charlottenburg convinces with its well-kept green spaces, the residential areas of Prenzlauer Berg and Weißensee in Berlin-Pankow inspire with their unbeatable prices and central location. You want to sell your apartment, your apartment building or your property in the world metropolis Berlin? With our free guides and tips on the topics of real estate sales and property valuation, you are well prepared. Back to overview: Selling real estate in Berlin.

• Pankow
• Charlottenburg
• Wilmersdorf
• Friedrichshain-Kreuzberg
• Prenzlauer Berg
• Kreuzberg
• Wannsee
• Steglitz
• Schöneberg

Sell land: drain

In all areas, the location is what counts most, not only when selling your developed or undeveloped property. With sale of an apartment, sale of a house but also when you sell your multi-family house, the location is a central valuation factor for the selling price of your property. Selling privately or “free of charge” and without an agent carries risks and makes the sale as well as the entire transaction (valuation until notary and contract of sale) prone to errors. Selling real estate needs a good network of buyers, often real estate is not presented publicly, but only internally as off market property.

When selling a property, similar questions arise as with a house sale. However, there are also some other points worth mentioning here. With a property it is to be paid attention to whether it concerns building land or building valuation land. In the latter case, the land must first be developed by the respective municipality. Only when there are connections for water, gas, electricity and sewerage, may construction work be done on the property. Building plots are usually more valuable than building land.

A professional exposé and meaningful pictures are the basis for selling a property. By listing the data and photos you establish the first contact to prospective buyers and lay the foundation for requests for viewings. If your description does not contain enough information or if the pictures leave questions unanswered, the interest will be lost or you will have to expect a large amount of individual questions.

Procedure in short form: Pictures until credit check

Another important point is the sales-related documents. Procuring them costs a lot of time, money and nerves. But without the important documents you cannot offer your property, so you cannot leave this part of the organizational tasks out. To simplify the sale and to offer your house with all relevant documents, it is worthwhile to engage an estate agent.

If your property attracts interest, potential clients will be waiting for a quick response and assume that you can be reached by phone and online.

With your assignment to real estate agents, you transfer all tasks from preparation to the sales phase to the conclusion of the contract to an expert who will take care of the brokerage of your property and who will find a suitable buyer for your property.

Foreword – Free tip? Yes!

All my tips in this guide are free of charge for you. As real estate agents we mediate properties starting from 1 million euro Verkerhswert, under the category luxury real estates. We are happy to give you tips and tricks for your sale, free of charge, explained in detail and step by step. Also pay attention to our links, here you will find more detailed information on the individual topics. Should you wish to sell your property with us: Do you know what our unbeatable advantage is? We independently reach more than 250,000 readers per month, which means 3 million people per year. We are independent from common real estate portals and reach a solvent, special target group. In addition, we offer internal buyer groups and investors in our Off Market area, to whom you have no access via usual offers. Read more here: Real estate agents.

Sell land: Built-up & undeveloped

Just like the sale of a house, the value of the land is also determined. As a rule, the municipalities determine the so-called standard land values every two years, which have resulted from the sales of other plots of land. However, these standard land values are not binding for the sale. The location and transport connections of the land also play an important role in pricing. Building plots in sought-after residential areas achieve higher prices. Also those plots of land that are oriented to the south have a higher sales value. Then you have to find a buyer. Nowadays, this usually happens online.

Basic questions when selling

Before going deeper into the subject matter, laws and the like, we first deal with more general questions: How much tax is payable on the sale of real estate? What do you need to sell land? Is it possible to sell land without a notary? Is the sale of land taxable?

Let’s start with potential buyers or interested parties. In the end, they finally decide whether to refuse, accept or even outbid a purchase price.

Checklist: What do buyers want?

When searching for a suitable prospective customer, the following aspects can be taken into account:

• Type of land
• Use possibilities
• Plot size
• Inclination of the property >/li>
• Urban or rural location
• Transport connections

Use options: Building land, field or forest land

The nature of the property also determines its possible uses. Is it building land, agricultural land or forest land. The size of the land is usually given in square meters. In the case of large agricultural areas, hectare specifications are common. The slope of the land is meant by the gradient of the land. This is especially the case with slopes.

Plots of land located in cities offer different possibilities of use than plots of land in rural areas. This is especially true for the type of development. In addition, transport connections also play an important role. It is of primary importance mainly for building sites or commercial properties.

Arable land or built-up area in the city center:

Visualization: new construction project after sale.

Checklist: Prepare land sale

Selling a property in the hectic of everyday life is quite demanding: planning and thoughts as well as discussions, as you will see in the next two checklists for preparation in house selling.

Owner questions before the sale

Time expenditure, appointments, creditworthiness and inspection. As a real estate agent, you know how much work is involved in selling a property.

Here it is particularly about experience in real estate trade, in order to avoid risks and errors in the house sale in the apron.

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The company is also actively involved in marketing the land. The right platform must be found or not, keyword off market real estate. 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 for selling a house:

1. How well do you personally know about the sale of houses?
2. Have you sold a house 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? Tip: Our Off Market Real Estate
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?

Tip! Buyer network and investors

One reason why many decide to use a real estate agent is, besides risk minimization, the buyer network. Particularly with properties, we recommend that you market your property not only regionally!

Real estate investors are looking for interesting objects, including in particular plots in sought-after locations, but also in locations with development potential.

Negotiations will be more intensive, but the profit from the sale of your property can increase accordingly, worthwhile.

What is my property worth?

This question is at the very beginning. To publish an offer, you need a price for the land. But determining the offer price is not that easy. In addition to the basic material value of the property (if your property is developed), other factors are also included in the selling price.

The market value determination as the foundation of the sale

In this respect, a valuation is the focus and lays the foundation for a price that corresponds to the object, the storage-relevant information and the infrastructural embedding.

Based on the determined market value, you can rule out the possibility of overvaluing the property or advertising it at a price that is below the real value.

Due to the rising real estate prices, you should have the valuation carried out directly before the sale and refer to information on the market value that is not known to you and that dates back several years.

Smooth processing of the property sale

Your advertisement is published and generates interest. Now the sale of the property enters a phase in which perfect organization and scheduling become important. Viewings must be planned, timed with you and the prospective buyers, carried out and evaluated.

If an applicant expresses serious interest, the real estate agent checks his creditworthiness and obtains the self-disclosure including a confirmation of financing. By checking the financial background of potential buyers at an early stage, it can be ruled out that problems will arise shortly before the contract is signed.

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

Valuation: Realistic prices increase the revenue

There are many questions to answer, the best answer is to have an expert at your side for the real estate valuation.

Which price is appropriate and realistic for your property, with or without real estate? If the purchase is not too long ago, the purchase price at that time can be a first indication. Comparable properties from the online offers of the regions can also provide a vague estimate.
If the value is too high, the property can “burn”, because it remains too long on the market and something seems to be wrong with the property.

Often the price is lowered, which means that the actual revenue potential of the land is lost – you are missing out on good money. This is also confirmed by a study conducted by the savings banks in cooperation with FlowFact AG and the IIB Dr. Hettenbach Institute. The study found a connection between marketing duration, sales price and marketing price. The study confirmed that the proceeds are greater and the marketing duration shorter if one relies on a realistic estimate when evaluating the property.

Thus, the professional assessment by experts of the market value of the property is highly recommended for a smooth sales process.

• Valuation by appraisers or experts (real estate agents)
• Revenue potential loses through price reduction, with too long insertion

Market value, mortgage lending value and real value

Different property values are used as the basis for valuation. The most important are the market value, the mortgage lending value and the real value. In principle, the market value, also known as the market value, is determined in a property valuation or real estate valuation.

Frequently used methods for determining the value are taken into account:

• Objective value
• Loan value
• Unit value
• Ground standard value
• Soil value

What valuation method for my object? Property + real estate

Three standardized methods are permitted for determining the value of the property by experts and appraisers: comparative value method, real value method and capitalized earnings value method. Which method makes sense when depends on the property. If it is a property, different valuation methods are used than for a building. Different valuation methods are also used for owner-occupied and rented properties. In the case of objects in compulsory auction, the value appraisals of the real estate can be viewed at the responsible local courts – often online. In this case, the owner’s consent is not required and any interested party can view such an appraisal free of charge.

Property Value Ordinance (ImmoWertV)

Until 1988, real estate valuation was based on the German Valuation Ordinance (WertV). In 2010, this was replaced by the German Real Estate Value Ordinance (ImmoWertV). The new law is intended to standardize valuation once again. With the adoption of the new regulation, the legislator also had foreign investors in mind. The ImmoWertV regulates binding terms and procedures for privately commissioned and publicly appointed experts. It is also binding for expert committees for real estate valuation.

The ImmoWertV distinguishes between the:

• Valuation of real estate and the
• Value determination of buildings

Good reasons for an evaluation by experts

If the property value is of interest, the market value must be determined. If the property is to be sold, if a divorce is pending or if inheritance matters are involved, the market value of the land is taken as a basis. The market value is also the basis for the value to be negotiated when granting loans and other forms of asset distribution. In case of a division of real estate assets (divorce, community of heirs) a price range is unsuitable. For this reason, a concrete sum must be stated when valuing real estate within the framework of market value assessments. This market value refers to the date determined in the expert opinion.

In the case of a sale of land, the precise value is less decisive and often the determined value of the land is quantified with a price range. When selling land and buildings, the regional market and supply and demand play an important role. Depending on the sales strategy, the comparative or market value determined is used differently. A basic distinction is made between sales at a fixed price and sales of land by means of a bidding process. The “perceived value” of the property should never be included in the marketing basis. If the selling price is higher than the market value, the buyer has to provide much higher equity than necessary.

Valuation of developed and undeveloped land

With the comparative value of the IPV, an offer price can be determined more precisely. In contrast to the comparative value, which is compiled by the real estate agent, the market value is the exact price that a property can probably achieve on a certain key date. What is included in the market value is regulated in the Building Code (BauGB). In order to determine the market value of a property, the location, condition, equipment (in the developed state), but also legal circumstances are taken into account. The term market value is used synonymously.

In a property valuation, the land value is determined. The determination of land value is based on the comparative value method and the use of suitable standard land values. In accordance with the German Federal Building Code (BauGB), expert committees must be formed to calculate the land values. These expert committees are composed of independent experts as well as an employee of the tax authorities.

• Tips & details: valuate property

The value of the building site

For the evaluation of building plots, the standard soil values provide a point of reference. The standard values indicate how much a square meter of space in a certain location costs on average. Concrete characteristics of the property are not included in the standard land values. Since only an average of the regional location is used for evaluation, the standard land values can deviate greatly from the actual value of the property.

In order to determine the value of the building site, it is necessary to inspect the extract from the land register. This excerpt, which is available from the land registry, contains all entries in the land register for the property and corresponds to a history of the property. However, only the seller is entitled to request the extract from the land register. The extract from the land register ensures that the seller has corresponding rights to the property and is actually allowed to sell it. If several entitled persons are registered, they can only sell their respective shares. Existing restrictions regarding the use of the land are also entered in the land register extract (e.g. land can only be built on for residential purposes). For buyers and sellers, the land register excerpt is indispensable for the valuation, division or sale of the land or property.

Another important point in the valuation is the location of the land or property. Criteria for the valuation are:

• The macro location, i.e. the region or the city district
• The microlocation, the immediate neighborhood of the property

The evaluation takes into account, for example, the neighborhood’s social milieu and its infrastructure. Even if good transport connections to shopping, school and industrial areas are not planned until the future, this can already have an impact on the property valuation.

Property valuation in the focus of investors

In addition to the standard valuation, the profitability of a plot of land or a property is of particular interest to investors. The profitability of a property refers to its development in future years. Since the boundary parameters of a property and the valuation made on a reporting date can change at short notice, only an estimate of the expected profitability is possible. The “location” factor also receives special weighting in this estimate. In a study, “Die Welt” (German newspaper) has taken into account the development of the macro locations of all German districts until 2030. A further focus of future performance is the “renovation backlog”, provided that above-average maintenance measures are expected. If the marketing of your property is to be aimed particularly at investors, further criteria are required to assess the investment offer. In addition, the form and framework of the financing are also important for investors in a property valuation. In addition, the reputation of the project developer is also important.

Taxes on land sale: Overview

Taxes are payable on every sale. Of course this also applies to real estate.

Acquisition tax, speculation period, sales tax, trade tax

Since 2012, taxes of 25 % are due on the sale of land. This applies to the profit made from the sale of a property. In principle, a speculation period of ten years also applies here. The profit is calculated as the difference between the acquisition costs and the sales proceeds.

There is no sales tax on the sale of land. Trade tax is only payable by businesses if the purchased property is counted as business assets.

In the case of large plots of land on which no construction projects are possible, a division is also advisable. In some German federal states, however, special official approval is required for the division of a property. The public building authorities or a civil engineer can provide information on this.

Building right: Later development of a property

The building law is the basis for a later development of a property. For this the building authority needs some documents like:

• Marking
• Floor
• Flat piece
• Outline
• Legal charges
• Registered building loads
• Information about adjacent properties

Marking: Real estate cadastre

A markung is a unit of area that can be found in the real estate cadastre of a municipality. The demarcation describes the ownership of a plot of land and is registered in the land register. The term cadastral plot designates an open area, usually an agricultural area.

A parcel of land is an officially surveyed part of an area. An outline sketches the respective plot of land in terms of area.

Grundschuld (former mortgage): Legal encumbrances

The legal encumbrances on real estate include first and foremost the mortgage, the land charge, the annuity charge, the life annuity, the easement, the usufruct and the real charge. The mortgage used to be a common form of loan security. Banks in particular have used these possibilities to secure loans.

In contrast to a mortgage, the land charge is independent of a claim to be secured. The annuity charge is a different type of land charge and secures payments. However, these payments do not repay the debt, but are rather to be considered as interest payments.

Leibrente, usufruct and rights

In the case of the life annuity, a piece of land can be used as collateral. The life annuity as such is a contract under the law of obligations, which can be enforced in given cases. An easement stipulates that a neighbor may use the land or that the land owner may not carry out certain things on his land. This is mainly the case with transit permits or when a building ban is to be registered.

The usufruct regulates the use of the land. The usufruct gives the usufructuary all rights as the land owner. Only a sale is prohibited. Real estate includes all actions to which the owner of the land plot commits himself. A real charge enables a creditor to auction the land.

Building development in settlement:

Large construction site industrial park:

Costs, expiry and land transfer tax

There are also some additional costs that have to be considered when selling land. These include first and foremost the land transfer tax. It is different in the individual federal states. In Hesse the tax rate is currently 6% of the purchase price. In the federal state of Rhineland-Palatinate it is currently 5%.

Land transfer tax at purchase price 500,000 Euro

Source: real estate transfer tax table by Alex Fischer (Germany).

Broker commission and upper limits

In addition, there is the broker commission. The amount of the brokerage fee is not regulated by law in Germany. Usually the buyer usually bears this burden. Sometimes, however, the costs are shared between buyer and seller. The amount of the brokerage fee is regulated differently in the federal states. However, there are upper limits.

In the federal state of Rhineland-Palatinate, the usual brokerage fee is 7.14% and is divided equally between the buyer and the seller. In Hesse, the broker’s commission is 5.95% and is borne exclusively by the buyer.

Costs for the notary public

In addition to these costs, there are also the costs for the notary. The amount of the notary’s fees is uniformly regulated in Germany. The basis for this is the so-called Court and Notarial Costs Act. However, these notarial costs can be lower when purchasing building land.

Whoever acquires a property pays the necessary notary fees. If a building is erected on this property, this circumstance does not constitute a further purchase and does not fall under the obligation to pay notary fees.

Procedure of a notarial act

A notarial certification always follows a certain scheme. For the time being a date is chosen for the notarization. At this appointment, not only the notary but also all contracting parties must be present in person. The notary reads out the purchase contract. Change requests can then still be made. The notary decides whether the desired changes are also possible. Afterwards the purchase contract is officially signed by the contracting parties and the notary.

The notary then ensures that the purchase is recorded in the land register. In addition, the tax office is informed about the purchase, which sends the buyer the land transfer tax assessment. Finally, the notary sends the buyer his fee note.