1) Sales under time pressure, poor preparation

The effort and scope of selling a property are often underestimated. A frequent consequence is the resulting time pressure, which has a negative impact on the sales price. Mistakes in the preparation of the sale can have far-reaching consequences – and not just financial ones. After all, the buyer must also obtain financing from their bank with the information and documents provided. Inadequate preparation can cause the sales project to fail at any stage.

Tip: Leave nothing to chance. Take enough time to prepare for the sale of your property.

Set your goals and plan the steps of the sale with foresight. Let our professional service support you in the targeted and best possible sale of your property.

2) Incorrect estimation of the purchase price

The asking price is always based on the value of the property. However, the owner’s personal assessment is often very different: The sales price is estimated too high or too low. In both cases, a financial loss is incurred and the buyer may not be able to finance the property. Our fair market valuation is made up of various factors. In our valuation, we only consider properties that are comparable to yours. This applies to the type of house or apartment as well as the property location and furnishings. Determining the purchase price is a crucial aspect of a successful real estate sale.

Tip: Our process evaluates the properties sold in your region and thus determines a realistic sales price in line with the market. Don’t give away any money.

You can find everything you need to know about the valuation here:

• Valuate property

3) Incomplete or missing documents

Obtaining and submitting documents for the sale of the property is necessary at every stage. Prospective buyers, authorities, offices and banks require documents or issue them. Compile all the necessary documents as early as possible. Current land register extracts are issued by the local court, and the declarations of division for the residential complex are also important. The complete key data on the property, which can be found in the construction plans, land register extracts and site plans, will be requested by serious prospective buyers at the latest at the viewing appointment. If an energy certificate or important documents are not available at an early stage, potential buyers may lose interest or the sale may fall through at a later date – for example, if the bank objects to missing documents or a purchase price that is too high.

Tip: If you wish, we can obtain many of the required documents for you.

Here is a list of the most important documents for house and apartment sales:

1. Floor plans
2. Site plan
3. Land register extract
4. Fire insurance certificate
5. An overview of the ancillary costs
6. List of all renovation work
7. Photos
8. The current energy certificate
9. The specification of the living space
10. Any existing rental agreements
11. If there is more than one owner, please specify the ownership structure
12. A detailed description of the property

More about the most important documents here:

• Documents sale

4) Poorly represented property

Today, properties are sold online – regardless of whether it is a divorce, separation or inheritance. Prospective buyers search for suitable properties in social media and online databases on the Internet. Present your property in the best possible way and in line with your target group.

Tip: Before the viewing appointment and even before the first photo session, the property for sale must appear well maintained and homely.

Don’t miss out on getting your property in top condition inside and out.

• Do not put off repair work and maintenance any longer.
• Declutter and create a clear impression.
• Ensure cleanliness and a homely and appealing atmosphere.

Home staging” pays off. This involves preparing the property so that potential buyers feel right at home and fall in love with the property. We will be happy to provide you with advice. Some tips on home staging:

• Remove personal items before the viewing appointment
• Enhance the property visually and emotionally

5) Photos: Daylight, open space and diversity

However, the most important factor is probably the pictures – especially for real estate marketing and the exposé. A buyer naturally wants to see as much of the property as possible to get an idea of whether the property could be something for them.

To take great pictures of your property, there are a few things you need to bear in mind: First of all, the rooms should of course be tidy and clean. You should also make sure you take the pictures in daylight so that the rooms can be seen clearly and buyers can assess how much daylight enters the rooms.

The most beautiful room, the roof terrace, the open kitchen or perhaps the bay window with a view. Your cover picture should be the most expressive and represent the best of the property. Pictures of all rooms and, if available, the garden/balcony/terrace, an exterior view and, above all, a floor plan should not be missing.

Photo tips at a glance:

• Rooms clean and tidy
• Daylight (speaks for bright rooms)
• First picture should be the best photo
• Cover all rooms and surfaces
• Floor plan

You can find out what is important in an exposé here:

• Create an exposé

6) Poorly prepared for the viewing appointment

Prospective buyers have important questions at viewing appointments. They need time to familiarize themselves with the property and its surroundings. Competent and technically sound information is expected when it comes to structural issues. When selling properties, detailed questions are asked about the common property, as these shares are also purchased together with the property.

Tip: We will help you with any questions you may have at the viewing appointment. We already make a pre-selection when selecting prospective buyers so that neither time nor effort is wasted.

We take care of the sales negotiations for you. With our many years of experience, we can conduct the negotiations for the sale of your property very successfuly. As estate agents, we remain objective and do not allow ourselves to be pressured into decisions.

• Viewing appointment tips

Conclusion: How to avoid mistakes & risks?

If you want to sell your property and avoid these pitfalls from the outset, contact a real estate agency directly. Real estate agents are contacts with expertise who not only have years of experience, but also the necessary know-how and knowledge.

With an estate agent’s service, you can avoid lengthy negotiations and negative buyers, so that you can have a purchase contract drawn up for the property promptly and initiate the handover.

Apartment sale without a broker: That speaks for it

In this case, you will have to take care of the sales process yourself, including creating ads and organizing viewings.

Let’s take a closer look at the advantages and disadvantages.

Advantages: Saved costs & faster processing

One of the biggest advantages is that The most important factor is certainly that you can save the broker’s commission, which is usually incurred in a successful sale. This commission is usually several thousand euros and can therefore represent a significant portion of the sale price. In addition, you always have full control over the sales process and can always decide yourself about viewing, buyer & Co.

The biggest advantages at a glance:

• Savings on broker commission
• Control over the sales process
• Direct contact with potential buyers
• More personal appearance
• Faster processing of formalities

Disadvantages: Lack of professional support

However, a sale without a real estate agent is also associated with some disadvantages. For example, you have to take care of creating advertisements and organizing viewings yourself, and you don’t have the support of a professional real estate agent in evaluating the apartment and handling the contract. In addition, it can be difficult to find a suitable buyer if you do not have an extensive network or experience in selling real estate.

All disadvantages summarized:

• Time and resource consuming
• No support of a professional broker
• Lack of network and experience in real estate sales

You see: Selling without a realtor is worth it. Even if you lack experience, a private apartment sale is not impossible. If you follow these steps, nothing will stand in the way of your sales success.

Procedure: From the valuation to the purchase contract

If you decide to sell your apartment without the help of a real estate agent, you should follow these steps.

An overview of the process:

1. Have apartment valued
2. Create sale ad
3. Organize tours
4. Negotiate purchase price
5. Create purchase contract
6. Apartment handed over to buyer

Have apartment valued

The first thing you need to do is find out how much your apartment is worth. To do this, you can use various online tools or real estate portals to value your apartment and determine the average price per square meter in your area. A professional property valuation by an appraiser is also possible.

Create sale ad

Once you have determined the value of the apartment, you need to create an advertisement to draw the attention of potential buyers to your apartment. For this purpose, you can place ads in newspapers, online real estate portals or even on social media platforms. Make sure to include meaningful photos and detailed information about the apartment.

Organize tours

Once you have received inquiries from potential buyers, you should organize and conduct viewing appointments. You should be flexible and offer appointments at weekends or in the evenings to accommodate as many interested parties as possible.

Negotiate purchase price

Once a buyer has been found, you need to negotiate the selling price. Here it is important to set a realistic price and not to make too high demands. Also, make sure to answer all the buyer’s questions and provide additional documents or information if needed.

Create purchase contract

Once the buyer and seller have agreed on a price, you need to draw up the purchase contract. For this, you can use standardized contract templates or seek advice from a lawyer. The contract should contain all the important information about the apartment and the conditions of the sale.

Apartment handed over to buyer

Now you just need to make a notary appointment to complete the sale. After the sales contract has been signed, you have to hand over the apartment to the buyer. Here you need to provide all the necessary documents and keys and also make a handover protocol to record any damage or defects.

It is important that you proceed carefully with each step of the sales process and take sufficient time to organize and carry it out. If you are unsure or need assistance, you can also consult a notary or a lawyer to ensure that all legal formalities are complied with.

Costs: Notary, energy certificate & Co.

As mentioned above, you can save the broker’s commission if you decide to sell without a broker. However, you will still have to bear some costs that come along with the sale. Here are some of the costs that may come your way as a seller:

• Notary fees
• Costs for the application of the energy certificate
• Marketing & advertising costs

Overall, the cost of selling an apartment without a broker may vary depending on the value of the property and the scope of services used. It is advisable to find out in advance about the possible costs in order to make a realistic calculation of the proceeds of the sale.

Important documents at a glance

As we all know, good preparation is half the battle. This also applies to the documents. It is best to compile them in advance and keep them in an important folder that you can access at any time.

In any case, you can not do without these documents:

• Land register excerpt
• Energy certificate
• Purchase contract
• Parcel map
• Floor plan
• Building description
• Living space calculation
• List of maintenance measures
• Overview of the house payments

Make sure that all documents are always complete. Additional costs may be incurred, especially for the application for the energy certificate and the land register extract.

You can find everything you need to know about the most important documents here:

• Documents sale

Checklist: This is what you should pay attention to

Here’s a checklist of some important questions to ask yourself when considering whether to sell your home without a realtor:

1. Do you have the time and resources to handle the apartment sale yourself?
2. Do you have experience in dealing with real estate sales?
3. Can you realistically estimate the value of your home?
4. Do you have all the necessary papers and documents together?
5. Are you ready to negotiate with potential buyers?
6. Do you have a clear idea of what you want to achieve in terms of sales?
7. Do you have the necessary knowledge to clarify legal issues related to the sale?

Conclusion: Selling an apartment without a broker is worthwhile

In summary, selling an apartment without a broker is an option that has many advantages. First of all, you save the broker’s commission that would otherwise be due, which can be a considerable sum, especially for expensive properties.

At the same time, selling without a real estate agent also requires some time and work, since the seller must take over all tasks himself. These include, for example, advertising the apartment, conducting viewings and negotiations, as well as preparing and reviewing the necessary documents. However, if one is willing to take on these tasks and has the necessary knowledge and skills, selling without an agent can be a sensible decision that leads to a successful and satisfying selling experience.

Partial sale / partial purchase: what is it? Explanation + advantage

Surely you have seen the advertisements of the many part purchase providers. This purchase offer is aimed in particular at older property owners who need money, for example, for a more pleasant retirement.

A look at costs of use, advantages, disadvantages, the total sale, the calculated increase in value under inflation and a comparison, what is “cheaper”: partial purchase or the alternative real estate loan, more specifically the mortgage loan? In addition taxes, sale from community of heirs, divorce and much more.

Here you will also find all calculators with examples: Partial sale provider comparison.

First, a quick, short definition.

Definition partial sale or partial purchase

What does real estate partial sale?

Of course, no second person moves into your property; you remain the sole user. However, as the former sole owner, you now pay a fee for the use of the part of the property that no longer belongs to you in full after the partial purchase – comparable to rent. This payment is referred to as “compensation for use” or “usage fee”.

Partial sale summarized:

• You sell a part of your property (usually 10-50%)
• Partial purchase house: Yes
• Partial purchase apartment: Yes
• Partial purchase of land: Yes
• Financial company becomes part owner
• You remain the sole user of the property
• You pay monthly usage fee
• Total sales in X years (optional)

The most important questions about the partial purchase

The most important questions at a glance:

• Can I sell half of the house? Yes, most sellers ~ 20-50%.
• Can I sell part of my apartment? Yes.
• Partial purchase also for land? Yes.
• Advantage? Fast, uncomplicated purchase price transfer.
• Disadvantage? Usage fee (~ 3-5% p.a.)
• Moreover, for total sale: sometimes below inflation

These important factors in the purchase of parts

The key factors for the partial sale:

• Value of the property = 500,000 euros
• Desired immediate payout = 100,000 euros
• Share for sale = 20%
• Monthly usage fee = ?
• (if) total sale after X years = ?

You have to answer two key questions in the comparison:

1. What is the monthly usage fee?
2. (At total sale, later) appreciation and fees?

Difference: sale vs. partial sale

What distinguishes the partial sale from the normal real estate sale? If you want to sell a property in the normal way, you will go through a total of three major phases (preparation, viewings/credit checks, sale), which in turn contain several steps. The search for solvent buyers (creditworthiness) can take a longer time depending on the real estate situation (demand).

Regular real estate sale: timing

Roughly summarized, the real estate sale includes the following steps:

1. Prepare documents
2. Valuation
3. Real estate marketing
4. Preparation of an exposé
5. Realization and planning of the viewing appointments
6. Purchase negotiations
7. Processing and drawing up of the purchase contract
8. Handover of keys

Shortened sales phase

With a partial sale, a large part of these steps is skipped completely. You go directly to a financial service provider who buys your property on a pro rata basis. Accordingly, the following steps remain from the procedure of a regular real estate sale:

1. Valuation
2. Processing and drawing up of the purchase contract
3. Handover of keys

Advantages at a glance: Sold and paid for quickly

Whether it’s a terraced house, a single-family home or even the condominium in an apartment building: you’ve never sold part of your property so quickly.

A partial sale has advantages:

• Financing method independent of banks
• No credit check, cf. credit financing
• Fast sales process

Disadvantage? Use in cost comparison

As described in the introduction, the “Partial Purchase” offer is aimed in particular at older property owners.

“Banks give no / few loans to older people”.

Such a common prejudice. That is why advertising with the “partial purchase of your property” currently works so well. However, the subsequent costs are often not taken into account. For example, if you sell 25% of the property and then pay 300 euros a month usage costs, you should definitely compare the amount with a regular real estate loan, more precisely mortgage loan.

In retrospect, otherwise an experience that will cost you cash, every month.

Let’s start the analysis.

Usage fee for partial purchase: Disadvantage 1

Now for the “follow-up costs.”

What is monthly user fee? Many currently advertise it as “easy,” “convenient,” “no bank.” True. But the price is high. First of all, the ongoing costs incurred in the partial purchase to financial companies. The financial company becomes a co-owner. The sold part of the property, will be returned to you.

So you do not give “half” of the garden or part of your rooms: you continue to use your property alone.

For this you pay the “compensation for use”.

Amount of compensation for use

The compensation that the financial company requires for the use of the property is usually:

• Between 3-5% of the amount paid out p.a.

The sum refers to 1 year in each case. The formula for calculating the usage fee (depending on the provider) per month:

• Monthly usage fee = 3% * purchase price (share) / 12
• = 3% * 100.000 / 12

Thus pay, at the partial sale worth 100,000 euros, 250 euros a month.

User fee at 100.000 Euro = 250 Euro / month

As always, depending on the provider. All providers can be found here in the part purchase house: comparison.

Real estate loan comparison: 2-4% cheaper

How much do you currently pay for a “classic” real estate loan? Due to the low interest rate phase, you currently pay only:

• Approximately 1% of the disbursed amount p.a.

Compared to the financing request of 100,000 only ~ 80 euros / month.

Credit only ~ 80 Euro / month

It pays to calculate and consider when it comes to the partial sale of your property. Tip! You will also learn about the “real estate annuity” as another alternative to the partial sale.

Taxes: What do you have to pay?

The tax does not differ in the partial sale from the regular sale.

As you can see in this tax checklist, for private individuals it is actually “only” about the speculation tax. It comes into effect when a property is resold within the first 10 years after purchase. The amount of the speculation tax is calculated according to the individual tax rate, which can be more than 25 percent.

Mentioned for completeness, anyone who sells 3 or more properties in 5 years is also subject to commercial real estate trading and therefore also to trade tax. Last, for the sake of completeness, the sales tax (buyer) for commercial real estate trade.

More on the subject of taxes when selling real estate:

• Selling real estate: taxes

Calculator! Provider comparison

In this analysis, I have calculated example for you in all the calculators of the providers. How much is the usage fee? How much do you get in the total sale? Here you can find the big provider comparison:

• Partial sale provider comparison

Total purchase price and inflation: Disadvantage 2

If you think carefully about the online calculation of step 2) the total purchase, you will notice that you do not specify any regions(real estate location) of the property. Accordingly, the increase in value is a very rough value. But let’s take this as a basis.

Inflation vs appreciation: comparison (-2.8% loss)

Inflation factor (currency devaluation) – If you now add inflation as a second factor, which according to the European Central Bank should be at 2% per year, but is currently even at 5% (as of 01/22), then you will see:

The increase in value of only 25%, 30% in 15 years, does not even equal inflation.

So let’s compare 30% in 15 years and inflation (“as desired” at 2%, with no increases):

The result of our comparison:

According to (most) online calculators, a loss of -2.8%.

Accordingly, you will not even be compensated for inflation if you are below 32.8%.

Tips for your partial sale: use, annuity, divorce and inheritance

Here are some practical tips and food for thought:

Real estate pension: Another alternative

You have now learned about the partial sale, also the mortgage loan. Perhaps another tip for you, the real estate pension. Especially interesting if you have already reached a higher age, usually from 70, 75 years.

Real estate annuity means: You sell your real estate (directly) completely, but keep a lifelong right of residence and use. In addition, you receive a small monthly amount. For some, this is a good solution. Because you also no longer have anything to do with maintenance costs, the new owner takes care of that.

Real estate pension simply explained:

• Direct, complete sale of your property
• Lifetime right of residence and use
• Small, monthly “extra pension” from the seller
• No maintenance costs

Usufructuary right: “Lifetime, sole right of residence

Before we compare the different providers, here is an important tip if you really decide to sell your property in part. As you have already learned in the guide partial sale, you can sell your property in 2 ways: Partial or Partial including total sale in X years.

If you are considering an overall sale after X years, be sure to take a look at the:

Usufructuary right in the event of a total sale

Usufruct right simply means that you have the sole right to use your property – even after the sale (as well as in other cases, such as early inheritance).

Advantage: The usufruct right brings you the advantage that you are not dependent at any time, on the goodwill or the consent of the seller.

Partial sale possible despite current financing?

Partial sales are possible – by arrangement – but both you, as the borrower (property owner), and the bank, are fundamentally bound by the loan agreement you have concluded, at least for an agreed fixed-interest period. Ideally, therefore, your property is paid off.

What is the difference between partial sale and annuity?

Let’s first clarify the term life annuity: Under a life annuity, you sell your property in exchange for an annuity payment and simultaneous, lifelong right of residence and use. It is therefore a special form of selling a property. The advantage: liquidity.

• Mostly owners over 70 years
• Complete sale to a financial company
• In return, lifelong right of residence and use
• Additional monthly amount for you (life annuity)
• No additional costs / maintenance costs

Community of heirs: sale after inheritance

Is it possible to sell a share in a community of heirs? Yes. With reference to BGB § 2033 Paragraph 1, which states:

“Each co-heir may dispose of the share in the estate.”

More on the topic:

• Community of heirs: selling property

Divorce: sale after separation

Is it possible to sell a share from a separation or divorce? In the case of divorce, things are initially a bit more complicated. In principle, only after the separation year, but at the latest after the divorce, can spouses demand that their partner sell their home. Talk to the providers individually about this.

More to:

• Divorce: Sell property

6 providers in comparison! Test winner + ranking

Here is the overview with test winner! After the list, you will find once again all the detailed calculations for the usage fee and the increase in value.

German part purchase – Best price / performance

Rank 1 by conditions in the 1st step of the partial sale and in the 2nd step of the total sale is currently Deutsche Teilkauf (as of 01/22).

• Usage fee p.a. = 2.89 % = 241 Euro
• Increase in value (total sales) = + 41.53
• Let evaluate on German part purchase

House anchor – Best conditions

Is part of Deutsche partial purchase, almost the same, only +1 euro in the monthly cost of use.

• Usage fee p.a. = 2.90 % = 242 Euro
• Increase in value (total sales) = + 41.53
• Get rated on house anchor

Value factor

At 29.13%, the increase in value over 15 years is -12.4% compared to #1 and #2. Likewise +1 euro per month, compared to the test winner.

• Usage fee p.a. = 2.90 % = 242 Euro
• Increase in value (total sales) = + 29.13
• Let evaluate on value factor

Partial sale One

Teilverkauf One offers fair conditions for sellers with Deutsche Teilkauf and Hausanker.

• Usage fee p.a. = 2.89 % = 241 Euro
• Increase in value (total sale) = + 28.50
• Get rated on partial sale One

House provision

Also with Hausvorsorge you pay monthly + 1 Euro compared to the test winner. In terms of total sales, Hausvorsorge is currently – 15.19% in relation to rank 1 and rank 2.

• Usage fee p.a. = 2.90 % = 242 Euro
• Increase in value (total sales) = + 26.34

Engels & Völkers

• Usage fee p.a. = 2.75 % = 229 Euro
• Increase in value (total sale) = + 25.33

German part purchase – test winner

The conditions at a glance (source: Rechner deutsche-teilkauf.de).

• Valuation on: German part purchase

User fee: 241 € / month / 2.89 % p.a.

• Share: 20%
• User fee: 241 Euro

Usage fee after partial sale in %:

• User fee / year = 2,892 euros
• % p.a. = 2.89

Total sales: + 41.53 % increase in value

Total sale at Deutsche Partial purchase after 15 years, incl. appreciation and fees.

• Value in 15 years: 699,128 euros
• Residual share: 566,103 euros
• Fee: No implementation fee
• Second disbursement: 566,103 euros

Value appreciation and fees in %:

• Increase in value: 41.53
• Fees: 0 %‬
• Second payout: 41.53

The total revenue is thus (in 15 years) 566,103 euros.

House anchor

Hausanker belongs to Deutsche Teilkauf. The conditions are almost the same. Only in the usage fee you pay monthly + 1 Euro. The conditions at a glance (source: hausanker.de calculator).

• Rating on house anchor

User fee: 242 € / month / 2.90 % pa.

• Share: 20%
• User fee: 242 euros

Usage fee after partial sale in %:

• User fee / year = 2,904 Euro
• % p.a. = 2.90

Total sales: + 41.53 % increase in value

Total sale at Deutsche Partial purchase after 15 years, incl. appreciation and fees.

• Value in 15 years: 699,128 euros
• Residual share: 566,103 euros
• Fee: No implementation fee
• Second disbursement: 566,103 euros

Value appreciation and fees in %:

• Increase in value: 41.53
• Fees: 0 %‬
• Second payout: 41.53

The total revenue is thus (in 15 years) 566,103 euros.

Value factor

With Wertfaktor you can sell a property worth 500,000 euros only from 20%, maximum 50%. The conditions at a glance (source: calculator Wertfaktor.de).

• Valuation on value factor.

User fee: 242 € / month / 2.90 % pa.

• Share: 20%
• User fee: 242 euros

Usage fee after partial sale in %:

• User fee / year = 2,904 Euro
• % p.a. = 2.90

Total sales: + 29.13 % increase in value

Total sale at value factor after 15 years, including appreciation and fees.

• Value in 15 years: 673,000 euros
• Residual share: 538,400 euros
• Fee: – 21.872 Euro
• Second disbursement: 516,528 euros

Value appreciation and fees in %:

• Value appreciation: 34.60
• Fees: 4.06 %‬
• Second payout: 29.13
• Attention: Total sale under inflation

The total revenue is thus (in 15 years) 538,368 euros.

House provision

The conditions at a glance (source: Rechner hausvorsorge.com):

User fee: 242 € / month / 2.90 % pa.

• Share: 20%
• User fee: 242 euros

Usage fee after partial sale in %:

• User fee / year = 2,904 Euro
• % p.a. = 2.90

Total sales: + 26.34 % increase in value

Total sale at home provision after 15 years, including appreciation and fees.

• Value in 15 years: 672,934 euros
• Residual share: 538,347 euros
• Fee: – 32.974 Euro
• Second disbursement: 505,373 euros

Value appreciation and fees in %:

• Increase in value: 34.59
• Fees: 6.12 %‬
• Second payout: 26.34
• Attention: Total sale under inflation

The total revenue is thus (in 15 years) 561,813 euros.

Engels & Völkers

Place 5 in the raking of the partial buyers is Engels & Völkers with the following conditions in the overview (source: computer ev-liquidhome.com):

User fee: 229 € / month / 2.75 % pa.

• Share: 20%
• User fee: 229 Euro

Usage fee after partial sale in %:

• User fee / year = 2,748 euros
• % p.a. = 2.75

Total sales: + 25.33 % increase in value

Total sale at Engels & Völkers Liquidhome after 15 years, including appreciation and fees.

• Value in 15 years: 672,934 euros
• Residual share: 538,347 euros
• Fee: – 37,011 Euro
• Second disbursement: 501,336 euros

Value appreciation and fees in %:

• Increase in value: 34.59
• Fees: 6.86 %‬
• Second payout: 25.33
• Attention: Total sale under inflation

The total revenue is thus (in 15 years) 560,086 euros.

Partial purchase makes sense? Partial sale + credit comparison

Partial purchase – Can you sell part of your house? Yes. Sell part of your own property, continue to live in it, it sounds tempting, especially if there is immediate money. The terraced house, single-family house or even the condominium in the apartment building. Surely you have already seen the advertisements of the many part purchase offerers. This purchase offer adresses itself in particular to older real estate owners, who need money, for example for a more pleasant Lebensabend. But, is a partial purchase really sensible? A look at usage costs and a small comparison, what is “cheaper”: Partial purchase or real estate loan?

First, a quick, short definition.

What is meant by partial purchase?

With partial purchase you sell a part of your property to a financial company. In return, you get the purchase price (independent of banks / loans), depending on how much share of your property you want to sell. The financial company then becomes the part owner. This makes you a community of owners consisting of two parties.

Of course, no second person moves into your property; you remain the sole user. However, as the former sole owner, you now pay a fee for the use of the part of the property that no longer belongs to you in full after the partial purchase – comparable to rent. This payment is referred to as “compensation for use” or “usage fee”.

Advantage! Sold fast, paid fast

So “advantage” could be described as:

• Financing method independent of banks

Disadvantage? Use in cost comparison

As described in the introduction, the “Partial Purchase” offer is aimed in particular at older property owners.

“Banks give no / few loans to older people”.

Such a common prejudice. That is why advertising with the “partial purchase of your property” currently works so well. However, the subsequent costs are often not taken into account. For example, if you sell 25% of the property and then pay 300 euros a month usage costs, you should definitely compare the amount with a regular real estate loan, more precisely mortgage loan.

Usage fee for partial purchase – disadvantage

Now for the “follow-up costs.”

What is monthly user fee? Many currently advertise it as “easy,” “convenient,” “no bank.” True. But the price is high. First of all, the ongoing costs incurred in the partial purchase to financial companies. The financial company becomes a co-owner. The sold part of the property, will be returned to you.

So you do not give “half” of the garden or part of your rooms: you continue to use your property alone.

For this you pay the “compensation for use”.

Amount of compensation for use

The compensation that the financial company requires for the use of the property is usually:

between 3-5% of the amount paid out

The sum refers to 1 year in each case.

Real estate loan comparison: 2-4% cheaper

How much do you currently pay for a “classic” real estate loan? Due to the low interest rate phase, you currently only pay:

approximately 1% of the disbursed amount

Total purchase price mostly below inflation – disadvantage

If you think carefully about the online calculation of step 2) the total purchase, you will notice that you do not specify any regions(real estate location) of the property. Accordingly, the increase in value is a very rough value. But let’s take this as a basis.

Inflation factor – If you now add inflation as a second factor, which according to the European Central Bank should be at 2% per year, but is currently even at 5% (as of 01/22), then you will see:

The increase in value of only 25%, 30% in 15 years, does not even equal inflation.

Partial sale property

Read more about partial sale here – A look at costs of use, advantages, disadvantages, the total sale, the calculated increase in value under inflation and a comparison, what is “cheaper”: partial purchase or the alternative real estate loan, more specifically the mortgage loan? In addition taxes, sale from community of heirs, divorce and much more. My recommendations for sellers!

• Partial sale property

“Sell half of the apartment”

Sell quickly, get money quickly, that’s what more and more want, who find at an advanced age that their own 4-walls are getting too big. Whether 3-room apartment, 4-room apartment or even comfortable 5-room and more.

Those who want quick money for the condominium, more and more often looking for “partial sale apartment”. Because one hears of many advantages: Fast, uncomplicated, no credit check. That’s true, but there is also a disadvantage, the user fee, which you pay monthly afterwards.

Quickly sell 10-50% shares of an apartment

The different sellers buy apartment shares between 20% – 50%. If the market value of your condominium is in the 7-digit range, you can sometimes sell “only” 10% of the apartment.

• Up to 1 million value = 10-50
• Over 1 million value = 10-50

Here schematically shown with 20% sold share, a 3-room apartment:

Partial sale condominium: what is it?

First, let’s start with the definition of the partial sale of an apartment.

What is the partial sale of an apartment?

As described at the beginning, you sell apartment shares between 20% – 50%. You sell the shares to a financial company. This makes you a condominium owners’ association consisting of two parties. In return you get the proportional purchase price quickly transferred, independent of banks / loans.

Fast money, sounds great or?

Whether selling in Berlin, Hamburg, Munich, Cologne or even “smaller” cities, there are advantages to paying the purchase price quickly without any credit check (compare credit at the bank). But there are also disadvantages: The user fee and likewise with the total sale.

Usage fee = rent for your apartment

After partial sale = you have to pay usage fee

The finance company becomes the partial owner of your apartment. However, you remain the sole user of the apartment. Therefore, from now on, you pay a monthly usage fee, quasi “rent” for the part of your condominium that no longer belongs to you.

Depending on the provider, this usage fee is approximately ~ 3% p.a. (per year). A simple, quick calculation of the usage fee.

• Usage fee (ETW): 3% p.a.

Formula usage fee (depending on the provider) per month:

• Monthly usage fee = 3% * purchase price (share) / 12
• = 3% * 100.000 / 12

With this you pay 250 euros per month.

User fee at 100.000 Euro = 250 Euro / month

As always, depending on the provider. All providers can be found here in the partial purchase apartment: comparison.

This is how the financial company refinances itself.

Disadvantage? User fee vs. credit

Uncomplicated and fast money for the condo, this is a really tempting offer. That is why you should take a second look at the various partial purchase offers for apartment.

Those who resort to the really simple sales offer, quickly get money. But for this, you pay – as learned – the monthly user fee. Many use the offer because you think, I can not get a real estate loan, especially at an older age.

At the same time, a real estate loan is much cheaper! Especially at the current interest rates. Currently you pay here only 1% p.a., instead of 3% or more, as with the partial sale.

Comparison partial sale / credit:

• Partial sale / month = 250 euros
• Mortgage loan / month = 85 euros

So remember, simply put:

Real estate loans are (currently) 66% cheaper!

So it’s worth talking to your local bank and maybe 2 or 3 alternatives.

Partial sale of real estate: advantages, disadvantages, tax & Co.

Read more about partial sale here – A look at costs of use, advantages, disadvantages, the total sale, the calculated increase in value under inflation and a comparison, what is “cheaper”: partial purchase or the alternative real estate loan, more specifically the mortgage loan? In addition taxes, sale from community of heirs, divorce and much more. My recommendations for sellers!

• Partial sale property
• Partial sale provider comparison