First time selling a villa?

If you’re facing selling a villa for the very first time, you’re probably asking yourself the typical questions that come up in any house sale and a few more. Especially if you are looking to sell an inherited house or villa and accordingly have no prior experience in real estate, here’s a little insight into the process and the costs you will face as a seller.

When selling a property, there are also costs that both the buyer and the seller have to bear.

Tip. We get the optimum out for you as a seller

Here you can find our contact persons: Contact.

You as a seller know that renowned real estate agents, like ours, take over the entire sale and process from valuation to exposé to notary and purchase contract. The most asked questions refer therefore, at the beginning, almost always to the cost factor with the mansion sales. Let us therefore start with this question:

Who pays which ancillary purchase costs?

Explained in Quick:

1. Real estate agent – Under the new estate agent law, estate agent costs are split 50:50 (buying from private); previously only buyers
2. Notary and land registry pays buyer
3. Property transfer tax pays buyer

Checklist sale: cost factors

These include, first and foremost:

• Value appraisal
• Energy certificate
• Realtor’s commission
• Property transfer tax
• Speculative tax
• Notary and land register

The energy certificate, land transfer tax, speculation tax and notary fees are mandatory. The value appraisal and the realtor’s commission are optional if these services are commissioned. Most of the other items depend on the price of the property and vary individually. A speculation tax is incurred if the property is resold within a certain period of time after purchase. The tax authorities then access the profit made.

Notary fees and land register

The notary fees in Germany amount to 1.5% to 2% of the notarized sales price. In most cases, only the buyer of the property bears the notary costs.

The notary fees and land registry are usually paid by the buyer.

Property transfer tax when buying a villa

The land transfer tax is divided between buyer and seller and amounts to between 3.5% and 6.5% of the notarized services for land and building, depending on the state.

The notary fees and land register is usually paid by the buyer.

Energy certificate for all properties

The energy certificate is prescribed with $ 300 for a simple certificate and with $ 500 for a detailed certificate.

The cost of the current energy certificate is usually borne by the seller.

Realtor costs

The realtor commission varies depending on the state and is between 2 % and 7 % of the agreed sales price. The bearer of these costs is either the buyer or the seller, depending on the constellation. In some cases, these costs are also divided proportionally. Tip. The commission amount is negotiable.

As a rule, the buyer bears the realtor costs.

Properties with multiple owners

The situation becomes somewhat more difficult when a property has multiple owners.

Especially in the case of villas, this can be the case. If the property is sold, it must always be unanimous among the owners. If this is not the case, the owner who wants to sell the property must bring a partition action.

Action for partition is time-consuming and costly

Heirs: community of heirs and fractional community

Villas are often real estate that has been inherited. Therefore, it may happen that several heirs are registered in the land register. If this is the case, the owners are listed in accordance with Section 47 of the Land Register Code. Their shares are levied ideally. If several owners are registered, this is a community of heirs in accordance with §§ 741 ff of the German Civil Code.

In the case of a community of heirs, the situation is somewhat different. If an heir brings a partition action, the property is put up for auction and the respective heir receives only his share of the sale proceeds. In the purchase agreement, all shareholders on the seller’s side must be mentioned by name. The respective share ratios are also listed in the purchase agreement. This is particularly important for the sellers, because the proceeds of the sale will be divided among them on a pro rata basis after the sale.

For the buyer of the property, on the other hand, this circumstance plays no role. However, problems could arise during the notarization process. Especially if one co-owner is represented by another at the notary appointment. In this case, a written power of attorney is required in any case.

Inherited a villa? Read more on the subject here

• Property and inheritance

Divorce: sale after separation

If married couples are indicated in the land register, it is to be assumed that they can sell the property only jointly. This occurs primarily in the case of divorce. The legislator assumes that both spouses have tacitly concluded a joint ownership agreement when purchasing the property. This is regulated in Section 749 (II) of the German Civil Code.

If one spouse is registered as the sole owner, he or she can also sell the property alone. The non-registered spouse only has to agree if the property is the entire property of the marital community. (§ 1365 BGB).

Selling a villa after divorce? Read more about the specifics in the topic here:

• Property and divorce

Vendor Tips: Owner-occupier/landlord

Want to learn even more about selling real estate? Read more about houses and apartment buildings here, depending on what type your villa is, there are specifics to consider here as well.

1. Selling a house: Villa for one household
2. Multi-family house: villa for several parties

House for sale: Villa for one household

Single-family houses are characterized by the fact that they are inhabited only by one family, a couple or a person living alone. They have a garden, which is also owned by the owner. Not all single-family houses are inhabited by their owners. There is also a possibility to rent a family house with a garden. In almost all federal states, single-family houses enjoy great popularity as a form of housing. Accordingly, there is a great demand in the real estate market.

• Sell your house

Multi-family house: villa for several parties

If you should decide to sell your house privately, it means a lot of time investment. From the appraisal to the creation of the exposé, to customer approach and sales phase, months pass without market knowledge. In all areas, above all, the location counts, not only in the sale of apartment buildings.

• Sell your aparment house

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.

Sell apartment house: Step by step

First, let’s start with the 3 most common questions for those selling for the first time:

• How much is your apartment building worth?
• With or without a real estate agent?
• Sell publicly or discreetly?

Then you will learn all 18 steps of the sale!

How much is your apartment building worth?

Berlin, Hamburg, Munich, Cologne, Düsseldorf, Frankfurt and Germany-wide, there are many questions to answer. The best answer is to have an expert on your side for real estate valuation. If you want to sell your apartment building, then it comes down to one thing: An informed, market-oriented, realistic purchase price. The type of property determines the valuation method used to determine the market value. There are three standardized valuation methods for determining the market value of real estate: the comparative value method, the asset value method and the capitalized earnings value method. As a rule, at least two of these methods are used simultaneously.

• Comparative value method
• Income capitalization approach
• Real value method
• Residual procedure
• Determination of the mortgage lending value

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

• Rate apartment house

Sell with or without a broker?

You must not underestimate the preparation time. Be realistic and honest with yourself, for example, about the possible backlog of renovations. On top of all the work on the condominium or house, there are all the preparations for the sale.

Over 70% sell with professional support from the broker. From the appraisal to the creation of the exposé, to the customer approach and the sales phase, months pass without market knowledge. In all areas, the location is the most important factor, not only in the sale of multi-family houses. Mistakes in real estate sales are quickly made, especially mistakes in the sale of larger properties such as apartment buildings.

To the question with: “Sell with or without a broker?” comes the question:

Sell On Market or Off Market?

Off Market – An off market sale means your real estate sale will never be publicly visible. Your apartment building 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. Private persons also make use of the service, for example if the family should not find out about the upcoming sale or the neighborhood. Your advantage: No one will find out about the sale.

• Off Market Real Estate

On Market – With On Market sales, your multifamily property is presented by the broker through the usual marketing channels. You probably know the typical marketing channels:

• Advertisement display at the broker’s office
• Regional newspaper advertisements
• Supraregional real estate portals
• Classifieds portals like Ebay

So to the usual 18 step process, +1 question is added for you:

Sell On Market or Off Market?

To find good off market real estate agents, you should pay particular attention to references, properties that have been sold. You can often find these on the real estate agents’ websites. So it pays to take a closer look at the website of the real estate agent instead of just going to “Contact”.

18 steps to the sale: checklist MFH

Procedure, costs and tips – all this in one big free article for land, apartment, house, villa, apartment building. Learn how to sell a property, step by step: sell property.

All 18 steps in 3 phases:

1. Preparation: prepare house and sale
1. Financial planning and timing of sale
2. Hire real estate agent
3. Records and documents
4. Increase real estate value
5. Determine offer price
6. Create exposé
2. Sales phase: market the house and find buyers
1. Market real estate
2. Contact with prospective buyers
3. Filter and select prospective buyers
4. Credit check
5. Viewing dates
6. Sales talk & purchase price negotiation
3. Sales processing: purchase contract until handover
1. Draw up purchase contract with notary
2. Notary appointment
3. Land register entry and payment processing
4. Handover of the property
5. Notary fees & broker commission
6. Pay taxes

Here are a few more details.

Preparation to sale: procedure

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

Decision to sell

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

Lukinski’s tip: Properties with gardens actually sell better between spring and fall. However, the garden should then also be in a well-kept condition.

Market analysis and pricing strategy

How do I get the right selling price?

Here it becomes already very special! Because the assessment of the real estate market in general and also regionally needs a lot of knowledge and experience. This also applies to the valuation of a property. Especially when it comes to your own “four walls” that are for sale.

Determining the value of real estate is best done without an “emotional attachment” to the property. So if you want to sell your property without a real estate agent, you have to free yourself from all “ties” to the house. But even then, there are still plenty of “traps” that the private seller can fall into. For example, investments in high-quality fittings for bathrooms, floors, etc. do not per se increase the value of the property. Especially the choice of bathrooms, flooring, fixtures, etc. are often dependent on the owner’s taste. A new owner, for example, would not want to spend money on these things and will try to push down the purchase price in this way. A real estate agent such as Lukinski knows for sure which equipment of a property is considered “upscale”.

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

Preparations: Renovate, design, modernize?

Frequently asked question when selling a house: Do you have to renovate beforehand? Our Lukinski tip at this point: If you want to achieve a maximum price for your property, then major construction defects should be eliminated. Of course, this should be verifiable by means of corresponding invoices. Damp spots on walls, mold, window frames with peeling paint, “blind” windows or worn parquet significantly reduce the purchase price. Even if there are only a few places where your property is not showing its best side, these deficiency items will rub off on the property as a whole.

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

A special case are properties that are not (anymore) inhabited at the time of sale. If all furniture and personal belongings are then removed from the house or apartment, then possible damages reveal themselves very quickly. Here, too, it is a matter of: remove! Otherwise, a sale can be rescinded later due to concealment of defects in the worst case. If there are still furnishings in the object for sale, they should be in perfect condition. Everything else gives the impression of “bulky waste” and should be removed before the first viewing appointment.

Difficult for private sellers, but already common practice for real estate experts: so-called “home staging”. Empty apartments are specifically furnished for viewing appointments. This gives the buyer an impression of comfort and homeliness and thus increases – often unnoticed by the buyer – the intention to buy.

Marketing and presentation: exposé

How to create a sales exposé?

Certainly one of the more demanding tasks in the sales process: the creation of a meaningful sales document for the property. Very often, the exposé is one of the deciding factors for the price and also the speed with which you sell your property. Correct lighting conditions for the photos, a good perspective when photographing and meaningful texts are the decisive factors for the exposé. The pictures should convey a realistic view of the property, and the texts should not be overly worded. If statements in the exposé and reality are too far apart, this gives the buyer an impression of the seller’s untrustworthiness.

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

No matter how: the presentation of your property by means of photos and text requires a lot of time. In addition, you should have a deeper experience in choosing the right words for the accompanying text. Leave out all personal relations to the property and take – as best you can – a distanced perspective to your object.

Offer and negotiation

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

Those who sell their property without an agent have almost no possibility to filter the buyers in advance. Prospective buyers can make an excellent impression on the phone. But in the end, you never know who you will actually let into your house during the viewing. For the first exploratory conversation, make a list of questions to ask the prospective buyer. This includes, among other things, the question of where and how you currently live. Important also the question whether there is already a financing bank for the possible purchase. However, only trained ears can hear here whether the prospective buyer is telling the truth on the phone or not.

Those who sell their property privately must also coordinate and conduct all viewing appointments themselves. This part is usually the most time-consuming work for particularly interesting objects. It costs your time and often also nerves, because real prospective customers ask very detailed questions during the visit. And finally, you yourself have to cancel the interested parties who do not make the short list. This also costs time and nerves.

Purchase contract: How individual may the contract be?

The appointment of a notary for the final purchase contract is also the responsibility of the seller in the case of a private sale. Of course, the notary will also tell you which things belong in the contract and which do not. Many buyers have individual wishes regarding payment of the purchase price, handover date, liability, etc. The discussion of these contract items is also very time-consuming. On the other hand, there is certainly less risk of major errors for the private seller at this point, since the notary acts in an advisory capacity in the run-up to the purchase contract.

House handover

Depending on the relationship between real estate and seller certainly one of the most emotionally difficult parts of selling a house. Especially if the house sale has arisen out of an emergency situation and the separation from the property is more or less involuntary. Selling through a third party – such as Lukinski – is especially silent and unproblematic at this point.

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

Inspection, negotiation and error

Preparation: documents, planning and support

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

For a sale from private you need a whole contingent of documents. Even the smallest mistakes can have costly consequences and make selling a house very difficult and long-term. The complexity already starts with the offer price determination. If you set the condition based on a professional real estate appraisal, you have a good chance of achieving the desired selling price. Nevertheless, a lot of negotiating skills, sensitivity and knowledge of human nature are necessary. Be prepared for a wide variety of questions from potential buyers and arm yourself with all the necessary documents that could be asked for or should be shown without being asked. Now an exposé must be created and your object must be described according to the truth, yet from its most beautiful side. The choice of words in the presentation decides significantly how quickly and at what price your property changes hands.

Visitation: Talks and presentation

Every prospective buyer would like to visit the property before buying it, in order to get an idea of what it looks like. The viewing is therefore an important part of the sales phase. The more attractively the property is presented and the better prepared you are to answer the prospective buyer’s questions, the higher your chances of success. However, this requires some preparatory work and good organizational skills.

The first impression counts

Tidiness, openness and the right atmosphere – The same applies when selling a house: The first impression counts. That’s why a property should be presented as attractively as possible. This means that both the interior and the exterior should be prepared accordingly. Lawns and hedges should be well-kept. If necessary, a new coat of paint on the facade is recommended. Garbage and bulky waste should be removed. Inside, tidy and clean rooms make for a pleasant ambience. In the best case, tours should take place during the day. In the winter months, sufficient lighting should be provided. If the rooms are dark, they convey an uncomfortable impression. You can make the room look inviting by using discreet decorative items, such as plants or curtains.

Presentation and decoration

But it is not only the presentation that counts. House sellers should also be able to answer critical questions at the viewing appointment. Here, too, you have an advantage if you hire a real estate agent. He knows the common questions and of course the appropriate answers. He has the floor plan and the energy passport ready and knows the floor space of the house. Many potential buyers are also interested in information on ancillary costs and house fees. During the viewing, all questions should be answered satisfactorily. Advantages can be emphasized. Conversely, defects must not be concealed. The seller is liable for these even after the contract has been signed, at least if he knew about the defects in question and did not name them when asked. An experienced broker knows exactly what he must disclose and what not.

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

Negotiation: preparation, expertise and experience

Negotiating the sale of a house requires not only expertise and experience, but also sensitivity. Owners who sell their apartment or house are usually emotionally attached to the property and often estimate its value higher than it is. This is not only detrimental when determining the value of the property, but also during negotiations. A real estate agent, on the other hand, always remains objective. He is not guided by emotions and can therefore usually offer a better negotiation result.

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

What matters in the negotiation

Good preparation is the key to a successful price negotiation. Lukinski’s broker knows that the buyer will also prepare for the negotiation and will know how to use every flaw in the house against him. It is all the more important to know the advantages of the property. These include, for example, a quiet location in the countryside or a central location in the city. Good transport links and shopping facilities also raise the value of a property. Other advantages can be a newly installed heating system, freshly painted walls or a recent renovation. The proximity to a university or an important employer also speaks for the property.

Since the sale of a house is basically negotiated, it is to be expected that the starting price can not be achieved. Accordingly, it should be set higher, but also not too high. If the broker and seller decide on a moderate starting price, the buyer feels that he is being treated fairly and does not have the feeling that he is sitting across from a profiteer. An inflated purchase price leads to longer and tougher negotiations, during which the price must be lowered more. If the house is in a desirable location and needs to be sold quickly, there is also the possibility of setting a low price, which then leads to several prospective buyers outbidding each other and you, as the seller, ending up with the desired price. Which strategy is suitable for your property depends on many individual factors.

Avoid mistakes: Sell privately or use a broker?

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

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

The most common mistakes in the sale

The first mistake occurs long before you even deal with the exposé and its creation. You set the asking price for your property too high and tend to overvalue it, which is perfectly human in terms of your emotional connection to the property. In the end, an astronomically high price that is completely out of touch with the market will cause the sale to drag on unnecessarily, and your property will not arouse any real interest among buyers. The opposite, too low an offer price also brings disadvantages for you. If you offer your property for less than its value, numerous buyers will come forward immediately, but the loss on conclusion of the contract is pre-programmed. Missing documents, meaningless or underexposed photos, pictures of the property taken on rainy days, and photos on which the street and your house number are recognizable always prove to be mistakes in real estate sales. If you don’t want to be rung out of the house without an agreed viewing appointment, you should make it difficult to locate your property and for this reason specifically refrain from publishing information such as a house number or street identification in the exposé. A sale from private sources attracts bargain hunters, but also numerous dubious resellers. You will hardly save yourself from inquiries, but you will hardly be able to achieve the desired price and a satisfactory sales transaction. At the latest during an inspection, the presence of the owner can have a detrimental effect on the sale.

Purchase contract: procedure, notary, preliminary and main contract

The contract of sale records all the regulations and information necessary for the sale of your house. Therefore, it should be prepared with great care. In order to avoid ambiguities and unpleasant surprises, it is recommended to place the purchase contract and the entire house sale in the hands of an experienced real estate agent.

Notarized preliminary contract is almost always binding

When selling a house or a condominium, so-called preliminary contracts are concluded. These only become legally binding when they are notarized. Only with the signature of the notary is the house really sold. The preliminary contract sets out all the key points for the sale of the house. If both parties agree and the preliminary contract is concluded, the main contract follows. If the preliminary contract was not notarized, it has no meaning. In this case, both the buyer and the seller can withdraw from the contract without giving any reason. However, once it has been notarized, the preliminary contract is binding, so that it provides security for both parties. Only in rare cases is it possible to withdraw from the preliminary contract. These include natural disasters, for example. If there are no serious reasons and one of the two parties withdraws from the preliminary contract, the other party can assert claims for damages.

The following points should be stated in the preliminary contract:

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

Once the financing has been clarified, the preliminary contract can be signed and notarized. The notary checks the land register and discusses further details with both contracting parties. The notary then draws up the main contract. This contains the information from the preliminary contract as well as all the conditions that were discussed during the notary’s meeting. This includes, for example, the handover of the house, the regulation of the purchase price payments and the due date, land register declarations and, if applicable, a financing power of attorney. This is required if the buyer needs a loan to finance the property.

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

Check buyer: Credit check

Creditworthiness and solvency check – The creditworthiness check provides information on various factors. It certifies, on the one hand, the ability to finance a real estate purchase and, on the other hand, the willingness to pay and reliability. These data can be obtained by past credits and installments. Through a self-disclosure from Schufa, sellers can realistically assess whether the buyer is able to pay the purchase price and other costs, such as for the notary or for the land transfer tax, and whether he is also willing to do so. The seller can request the information from Schufa himself or demand a self-disclosure from the buyer. The latter is more likely to be used in practice, as it involves fewer costs. In addition, the self-disclosure contains all relevant data, such as the overall assessment of the payment risk and all information about payment experiences in the past. The self-disclosure is free of charge for the buyer.

Financing confirmation, notary escrow account and credit rating

Furthermore, a financing confirmation can be requested from the bank. However, this is only meaningful if the loan is expressly intended for the financing of a real estate purchase. In addition, the disbursement of the loan should not be subject to other conditions.

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

The credit check should take place as early as possible. This prevents long negotiations that turn out to be superfluous in the end. Also, you may have already turned down other prospective buyers who have purchased another property in the meantime. A good realtor will conduct the vetting of the buyer in a timely manner. In addition, he also advises the buyer to hold financing discussions with his bank as early as possible. This is because it can take up to 14 days for a financing confirmation to be issued. In addition, the buyer must have documents ready for the approval of a loan, which may have to be obtained first.

Handover: protocol, handover of keys and documents

Once the purchase contract has been signed and the notary appointment has been dealt with, the final step of the house sale follows: the handover. This is when you place your property in the hands of the new owner. To ensure that nothing goes wrong and there are no unpleasant surprises after the conclusion of the purchase contract, there are a few points to bear in mind. Damages or a subsequent reduction of the purchase price make many buyers’ hair stand on end.

Once the purchase contract has been signed and the notary appointment has been dealt with, the final step of the house sale follows: the handover. This is when you place your property in the hands of the new owner. To ensure that nothing goes wrong and there are no unpleasant surprises after the conclusion of the purchase contract, there are a few points to bear in mind. Damages or a subsequent reduction of the purchase price make many buyers’ hair stand on end. But that doesn’t have to be the case.

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

The handover protocol for the sale of a house is not that dissimilar to the protocol for the handover of a rental property. However, other important points must be recorded. These include, for example, defects that still need to be remedied by the seller. A date for this should also be set. In addition, the handover protocol should record which inventory still needs to be removed. In addition, all meter readings are written down. The process of handing over the keys is also noted in the protocol. If keys are still missing, a note is made of how many and when they will be handed over. By the way, the keys are usually handed over only after the purchase price has been paid in full.

At the handover of the house, not only the keys are handed over, but also many other important documents. Building plans, floor plans, the calculation of the living space, building contracts, expert opinions, maintenance contracts, insurance certificates and much more are handed over to the new owner on this day. If you are selling a rental property, the rental contracts and the documents about the various tenants must also be handed over. During the handover, the seller will usually also explain to the buyer how the heating system works, as well as other important appliances in the house.

Checklist documents handover:

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

Notarization: Notarization by a notary public

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

Real estate valuation: Determine market value

For what price can I sell my house? This question is asked by every owner who wants to sell a house and know what price is realistic in the offer. Although the real estate appraisal is an estimate, it is based on an objective and therefore plausible assessment. In practice, it is seen that the value varies from appraiser to appraiser and that, despite real estate appraisal, there may be different price recommendations. Nevertheless, you should not rely on your gut feeling or your own emotionally made estimate when it comes to the selling price of your house. In order to value a property, various factors must be included in the determination. The more comprehensive and professional the real estate appraisal is, the more cost-proof you will sell the house and the lower the risks of presenting an offer below or above the actual market value.

No real estate valuation? No realistic pricing possible!

Not having a real estate appraisal means that the price of your house depends primarily on a feeling and the expenses you put into the object. Properties that are sold without a property appraisal are usually priced too high and are therefore practically unsaleable, or too cheap and therefore incur a loss when sold. As an owner, you do not need to know the factors influencing the asking price if you choose to have an appraisal done by an expert. Before you name a price and commit to a sale amount, be sure to find out what the fair market value of your home is. If you sell without a property valuation, you are making one of the biggest mistakes in the real estate business and will rarely produce an offer that is authentic in the context of the property on offer and therefore interesting to the buyer and right for your own finances.

Real value and market value – the differences

When selling a house, there are ultimately two values, of which the market value or fair market value is relevant for determining the price. The actual material value states what value a house has based on its year of construction, its equipment and its substance as well as the size of the plot. If you know the material value, you know what objective value is associated with your house. But the purchase price is not related to the pure objective value, but to the market value or fair market value. In this real estate valuation, factors relevant to the environment and the market are incorporated and form the basis of the pricing. In order to determine the market value, a lot of know-how and market knowledge, analyses and comparisons as well as experience in the valuation of real estate are necessary. Due to high demand and few offers, the market value today is often higher than the pure asset value and gives you the opportunity to sell the property at the current highest possible price. The market assumes the greatest importance in the determination of market value is a decisive factor in deciding whether you can sell your house at a good or a rather low price. To avoid mistakes, you should hire a real estate agent or appraiser to handle the challenges of the appraisal and determine the best asking price for which your property will be advertised and sold.

The mortgage lending value is based on a well-founded expert opinion of a real estate valuation

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

Important facts in the value appraisal

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

Determine market value

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

The fair market value (market value) is the price that can be obtained in the specified time frame in the ordinary course of business according to the legal circumstances and actual characteristics, other features and the location of the property or other object of the valuation. In 2004, the term “market value”, which is used throughout the EU, was added to the definition of market value in Section 194 of the German Building Code (BauGB). The market value is therefore an estimate of the price that can be achieved on the market. The market value is generally used for the sale and purchase of land and buildings. The determination of the fair market value may also be required in the case of foreclosures, tax levies by the tax office, and divorces and inheritances.

Determining market value: which factors are important?

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

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

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

In fact, however, market demand decisively influences the value of your property. The demand for real estate as well as the equipment features sought vary greatly from region to region.

Practical procedure for determining the market value

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

Documents for the determination of the market value

In general, the following documents are evaluated for the determination of value in the sale of real estate:

• Land register excerpt
• Construction plans, floor plans, sections
• Building description
• Site plan and parcel map
• Living space calculation
• Energy certificate

In the case of condominium ownership, the following are additionally required:

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

In the case of income properties, the following must also be submitted:

• Operating costs
• Rent statements
• Rental agreements

In the case of rights and encumbrances, the following must also be included:

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

Weighting of criteria in the fair value

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

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

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

Valuation: capitalized earnings value method & asset value method

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

The capitalized earnings value method – division into market value & building income value

The capitalized earnings value method divides the property into the market value of the land and the building income value. This includes rental income, maintenance costs and costs for managing the land and building. Accordingly, the rental income less the management costs and the land value including its interest are compared.

Our team of investors at Lukinski will gladly prepare yield calculations for your desired property. Prospective buyers can be convinced of good returns. Upon request, we will inform you of the data required for the calculation. After receipt of the documents, we take over the determination of the yield value and give you a first estimate of the yield.

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

The calculation first determines the market value of the land using the standard land value, and then adds the real building value. The real building value is calculated from the building production costs less any age-related reductions. The land value (market value of the land) and the building value are added together and multiplied by an asset value factor. The calculation of the real value factor depends on the type of building, the preliminary real value and the standard land value. The total tangible asset value determined in this way indicates the financial resources that would have to be expended to rebuild the property.

The comparative value method – comparison with similar properties

The comparative value method compares your property with similar properties. It is used in particular for the sale of condominiums and apartment buildings. The comparative value can also be determined for undeveloped land. Only properties in similar locations and with a comparable layout are taken into account in the comparison. The properties included in the valuation should be from the immediate vicinity of the residential property. The comparative value method is considered to be particularly close to reality. It is frequently used to determine the value of real estate because the locations are relatively comparable from a regional perspective.

The energy certificate – mandatory when selling real estate

The energy condition of a property is one of the most important decision-making criteria for prospective buyers. This is where the energy passport comes on the agenda, as it provides information about the energy efficiency of the house and thus about future consumption. The energy efficiency is classified on a scale from A+ to H, whereby the letter H stands for urgent measures in energy refurbishment and indicates that the property is no longer up to date in terms of energy consumption.

No real estate sale without energy certificate

Only authorized experts may take care of the preparation of an energy certificate (according to §16 of the EnEV). This means that you need to look for an expert with the appropriate license. The §16 EnEV specifies that every real estate buyer must receive an energy certificate. For you as an owner and seller, this means that you must have the pass produced and included in the sales documents. If you refuse to produce and present it, owners commit an administrative offense and can be fined up to 15,000 euros.

Why is the energy certificate so important? It contains all the information relevant to the buyer on the energy status of the property. It also provides information on how much energy has been consumed and what supply costs the future owner can expect. If the energy balance is negative, this circumstance points a prospective buyer to the necessity of an appropriate reorganization and thus to high costs, which come for example by the renewal of outdated electricity and a heating system on it. The energy certificate is an integral part of the exposé when a house is sold by our brokers and is published directly online. During a viewing, interested parties receive a direct view of the original and an explanation from us on how to read and evaluate the energy certificate.

Demand certificate or consumption certificate?

A consumption certificate costs 100 euros, while a demand certificate costs between 300 and 500 euros. The costs for issuing the energy certificate are borne by the owner, who is obliged to provide this data when selling the house. We advise you to have the informative requirement certificate drawn up and not to save at the wrong end by only providing a consumption certificate with far less helpful data for the buyer.

The consumption certificate is based on the last 3 annual bills of the energy provider. In contrast, the demand certificate contains concretely determined facts that are checked by an energy consultant on site. The main difference between a consumption and a demand certificate is that the former provides information about the past, while the demand certificate looks at energy consumption in perspective. This requires an on-site specialist to check the condition of the building, the insulation and the heating system, and to use this individual data in combination to create a forecast for the building’s energy balance.

Real estate agent: advantages

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

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

Determination of market value and ancillary purchase costs

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

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

Divorce and real estate: The most important questions and answers

Whatever type of property you have to sell after your divorce: It depends on the location. When selling an apartment, selling a house, selling a plot and even more so when you are looking to sell multi-family houses. The location of your real estate is a decisive valuation factor. So is the substance and the equipment. Selling privately means accepting risks and making mistakes. From property valuation, contracts, taxes and costs.

If a divorce leads to the sale of a house, you should be well informed accordingly.

You are in the process of divorce or would like to file for divorce? Ideally, you have the opportunity to discuss the separation sensibly and objectively with the partner to be divorced? Then the question arises: Who owns what? If you own a joint property such as a house, you should now ask yourself: who owns the house and how can it be divided after the divorce?

If you live in a house together for years, you usually don’t ask yourself: who actually owns it? Living together also suggests a common house and there is rarely another “mine” and “yours”, but often an “ours”. Since the interior decoration was also usually chosen according to the ideas and wishes of both spouses, the feeling of togetherness is enormously strengthened.

Topic divorce: Articles and guides

Before we go into detail – into the sale – here are more detailed articles about divorce and house sale or apartment sale.

Facts and figures: Children, procedure and maintenance

• Hardness case separation
• Manage real estate
• Pension entitlement
• Divorce with child
• Divorce proceedings
• Subsequent divorce agreement
• Divorce law
• Maintenance

Life: Reasons, year of separation and change of name

• Living apart
• Change of name
• Grounds for divorce
• Year of separation

Foreword – Free tip? Yes!

All my tips in this guide are free of charge for you. As real estate brokers, we broker real estate from 1 million Euro sales value under the category luxury real estate. We give you here gladly Tipps and cheat for your sales, free of charge, in detail and step by step explained. Please 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.

Who owns the house / condominium ?

If a married couple decides now however no more together to live and divorce to want, it is unimportant, which feeling developed, but the facts are regarded. Crucial for it, to whom the house belongs, is always the entry in the land register. In the land register you will always be able to find the owner who was registered when the property was purchased. If you are registered there alone, you are automatically the sole owner of the property. A registered sole owner is usually chosen if the purchase was made before marriage, for example, or if there were certain advantages to registering only one spouse. If there is only one sole owner in the land register, it is legally very clear who owns the property. Nevertheless, the other spouse is not simply thrown out of the house, even if the registered sole owner has a power of instruction that allows him/her to ask the other spouse to move out of the house. This request to move out is connected with a granted time, which must be granted to the moving out partner. In addition, the sole owner must bear the costs of the move. Furthermore, the non-owner can be granted a right of residence, which can also be limited.

Two owners: Proposed solutions

If both spouses are the owners of the house or also of the condominium, both persons must also have been entered in the land register. If this is the case, the spouses can go several ways in a divorce.

Firstly, it is possible to sell the house to a third party, secondly the house can be partially auctioned or thirdly one spouse can transfer his or her shares to the other. If the house is to be sold to a third party, you have chosen the most pleasant and easiest way, because the house is divided up, so to speak. The common property is sold and the proceeds from the sale are divided among themselves. This process is fast and afterwards you and your still or ex-spouse can go separate ways.

What happens with the children?

However, if children are involved, the soon to be divorced couple usually wants to keep the property at least for the children, so as not to tear them out of their familiar surroundings. It is not uncommon for parents who are divorced and own a joint property to decide against selling it to a third party. They do not like to expect their children to change the city or place, to get used to new people and a new environment and to have to move out of the house in which they were born and grew up or are still growing up.

However, it must also be clarified again to whom the property belongs and if both spouses are owners, they must find a common solution. Here it is often advisable that the spouse who leaves the house transfers the own shares to the spouse who will still live in the house – probably with the children. When this happens and the shares are transferred, all ownership is transferred to the partner who will remain living in the house. However, the transfer is only effected by full payment of the shares in the house. Both the sale to third parties and the payment of the shares in the property presuppose that the spouses can reach an agreement and want to find solutions together.

Divisional auction

Unfortunately, this is not always the case, because divorces are often associated with injuries and many emotions, which can lead to the hardening of the fronts and the couple not being able to reach an agreement. In this case it is possible to apply for a division auction. A division auction aims to dissolve a community that has existed up to now. In this type of auction, the real estate, which is considered an indivisible property, is converted into money that can be divided. This money, however, still belongs to the community and will be deposited in case of disagreement about division or payment. A division auction should always be the last possibility to “get rid” of a house through a divorce.

Equalization of gains, sole ownership and joint ownership

Everything about the equalization of gains, sole ownership and joint ownership.

Earnings equalization – gains for both spouses in case of divorce

If two people enter into a marriage without a marriage contract, they live in a community of gain according to the law. An increase is defined as the amount by which the final assets of a spouse exceed the initial assets. During the marriage the two fortunes remain thus separated and with the divorce a reconciliation of the increase of the fortunes takes place. Each spouse should therefore leave the marriage with the same amount of gain. The experts from Lukinski explain how the difficult topic of real estate is dealt with when balancing the gain.

If only one of the spouses is registered in the land register as owner of the real estate, the real estate belongs to this spouse alone even after the divorce. During the separation period, a court can also assign the property to the non-owner for use, but only if this spouse cannot find an affordable apartment for himself or her and their joint children. However, the ownership of this property does not change as a result.

However, real estate also has financial consequences in the case of compensation for gains. A property that was bought, built or extended or modernized during the marriage represents an increase in value and is therefore relevant for the compensation of gains. An inherited real estate, or one that was already part of the property before marriage, is only included in the compensation for gains if it was modernized or developed during the marriage. During the divorce, however, the owner of the real estate may not simply do what he wants with the property. If the divorce or the separated gain adjustment proceedings are not yet completed, the ex-partner’s consent is required for the sale, for example.

Joint ownership – different solutions

If the real estate belongs to the married couple equally or even proportionately, it becomes difficult in the case of divorce, because the question of how to proceed with the common real estate after the divorce is not always easy to answer. Who may live in the property, will it be sold or further financed? This problem comes from the fact that with the divorce the co-ownership does not end at the same time. Divorced couples are therefore still jointly responsible for the property even after the divorce. There are different approaches to the issue, which are better or worse suited depending on the situation:

• The property can be taken over by one partner by paying the other one. However, this represents a gain that affects the compensation for the gain.
• The property can be transferred to a common child and both spouses look for something new.
• Depending on the conditions of the property, a large detached house can be converted into a two-family house. If the spouses so wish, the property can be divided into two equally self-contained units.
• The real estate can be sold and the profit is divided proportionally between the spouses
• If no agreement can be reached on the future of the property, the last resort is the division auction, in which the property is publicly auctioned off by an enforcement court.

Current real estate loans in divorce – communication between the spouses

If real estate is financed by a loan, it must still be repaid after the separation. How this problem is to be dealt with, however, must be dealt with independently of the other real estate issues. A common solution is to change the payment method. If the main wage earner has repaid the loan until the separation, after the divorce the repayment can run over both partners in equal parts. If the joint home ownership is transferred to one spouse, the repayment contract can also be changed accordingly.

Sales: Procedure and checklist (free of charge)

Real estate sales after divorce – the prices for houses, free-hold apartments and basic rises continue to rise. The trend to the own four walls continues, determined also a study of the Federal association of the German people banks and Raiffeisen banks (BVR):. In 2017 the prices for owner-occupied housing rose again by 5.4 percent. The high demand also has an impact on the price situation in rural areas. Are you considering selling your residential property? The situation on the property market is extremely good for sellers. Only make a decision when you have a market value assessment from a professional. The experts from Lukinski determine free of charge what selling price your property can fetch. We are always available for you online.

How much is my property worth?

What price can my properties fetch on the market? Are you thinking of hiring an expert? We at Lukinski can help you free of charge. Our real estate valuation is based on current data of your region. Our online service determines the most realistic price expectation for your property from all comparable offers. Experience has shown that our assessments as online brokers are much better suited to the current price level than expensive appraisals based largely on building materials.

Nobody can predict exactly how long the price boom on the property market will last. Selling real estate is not always an easy decision. Personal reasons or financial concerns are at stake. However, a little-used property or a property that does not suit one’s own situation quickly creates additional expenses. Extensions, renovations or long journeys to work put a strain on the budget. Selling a residential property not only creates financial freedom, but also the opportunity to relocate yourself or your family to a more advantageous location. All residential locations are currently being sought: in the city and in the country. Our online real estate service uses new procedures and methods to evaluate the available offers on the market. Thus we determine for you free of charge, with which purchase price you can find a buyer quite fast.

Our real estate evaluation procedure has proven itself for years. With only a few details, we analyze the property, so that you get a realistic estimate for a house sale or apartment sale. Quick and easy we help you to get the best price on your regional market. Let us show you how we can support you.

Determine the market value of the property

Have you considered the decision to sell the house or apartment? Then we will provide you with an online valuation at market value. Only then can you estimate whether you want to part with the property. With the potential selling price we estimate, you can also decide whether it is profitable to commission an estate agent. Under certain circumstances, it may be worthwhile to carry out renovation and conversion work, which will help us to find an even broader base of interested parties. An own assessment of the market value is fraught with many risks: Often it is based on emotional attachment to the property, on the effort and time invested in the renovation. If the stated sales price is too high, hardly any serious prospective buyers will come forward. The stream of visitors who are not really interested in buying often does not stop even after months. This costs time and nerves and in the end many homeowners accept large financial losses.

Get advice from a professional before the sale. We will give you a thorough and careful assessment of the value of your property. Our price quotation and recommendations will enable you to find suitable buyers for your property. The longer a property has been on the market, the greater the final discount usually has to be. Avoid this with Lukinski and get into the real estate sales process well informed and supported. With our online real estate evaluation you will receive prompt and reliable key figures and interesting facts about your real estate sale. If you wish, we can take over all services around your house sale – from the valuation to the notary appointment, we are there for you.

Sale on your own initiative?

After the first searches many real estate salesmen trust themselves still the completion of the house sales in self-direction. What the salesman really has to expect, is however a thing for the professionals. Prospective buyers may appear to the inspection date, in order to press the price unjustifiably. More and more defects are discovered and the owner gives up frustrated sooner or later. Also the legal side of selling real estate is increasingly determined by legal regulations. Submitted the energy document of identification must be answered with the inspection date, it must questions to the land register and to the building method. Our professional office knows how to answer all inquiries competently and completely. We are happy to assist you in all steps of your real estate project.

Our customers confirm it again and again: It is worthwhile to involve us in the sale of real estate. You can rely on our experience and expertise when it comes to negotiating prices, arranging viewing appointments and compiling the sales documentation. We will explain all other bureaucratic preparations to you, including obtaining extracts from the land registry. Not all information needs to be disclosed to a potential buyer – we will advise you on all questions.

The checklist for the documents

If you decide to sell your house or apartment, we will obtain most of the documents while you provide the building description, utility bill and construction plans. If you already know the market value of your house, our checklist will help you to be well prepared for a smooth sale:

Once the sale of your home has been decided, a flood of documents must be obtained for the various phases of the sale. The bureaucratic requirements for the sale of real estate are aimed at potential buyers, notary, estate agents and other institutions.

1. Sales documents
2. Energy performance certificate and extract from the land register
3. Building description and cadastral map
4. Special documents for special properties
5. Preparation of the documents according to the sales phase.

In principle, only a few documents are obligatory when selling a house or apartment. However, prospective buyers are equipped with a large number of recommendations in order to secure the best possible property – in terms of personal requirements and the price to be paid. The extract from the land register must be presented to the notary public at the latest, but many buyers need the information contained in the document even before making a purchase decision. The lending bank must be granted access and give its approval for financing. All relevant documents should be available in good time to ensure that the sale of the house or apartment is as quick and smooth as possible. Documents that have to be obtained from public institutions, credit institutions and government offices often take time. With us, you are on the safe side – we obtain many of the documents for you and give tips on the bureaucratic requirements for selling real estate. What we can do for you and what documents we obtain:

• Preparation of the consumption-oriented energy pass, which is to be presented to the interested parties at the inspection date without being asked
• Extracts from the land register
• Floor map
• Texts on object and location for the ad

Commercialization begins soon

Once the documents have been compiled, the marketing phase begins. We also provide competent and reliable support for any questions and problems that may arise. The jointly developed advertisement is supplemented by a convincing and professional exposé. Both should be accurate, complete, informative and convincing. Meaningful photos of the house, apartment and garden are part of it. The documents are published online, we take over the social media posts and round off a target-oriented marketing with a virtual tour.

If viewing appointments are pending, the house or apartment must present itself in the best light. The prospective buyer should feel comfortable in the property so that negotiations are also easier. We know how to best highlight the advantages of your house. We can also arrange and organize viewings for you.

The prospective buyer will go to his bank with the documents so that a credit check is carried out for the last time. If the purchase price and property valuation match, the bank can finance the property. If the creditworthiness of the prospective buyer is correct, nothing more stands in the way of a loan commitment. Often banks carry out their own valuations of the property. If the purchase price is set too high, the property is either not lent at all or only a significantly lower loan amount is granted. Sales projects fail if the prospective buyer cannot raise the financial means. With our property valuation we make sure that this does not happen. We estimate the price of your residential and commercial property realistically and close to the market. Trust the professionals at Lukinski, for maximum success in your real estate sale.

Last but not least, the notary appointment is scheduled. Here, buyer and seller meet for the notarization of the purchase contract. Afterwards the change in the land register takes place, which makes the sale official.

Concluding tips for a successful sale

Each of the sales phases takes its time. Usually the entire house sale takes 6 to 9 months. Depending on the property and location, it may take longer to find the right buyer. We maintain an extensive pool of serious and financially secure prospective buyers who are looking for a new home. The right buyer for your house or apartment may already be listed in our records. It is important that the future buyer is seriously interested in the purchase and can also secure the financial means in the short term. We also support the buyer in finding suitable financing for his property acquisition. As a neutral partner we are a competent mediator in all phases of your sales project. On our city pages you can find out how the regional market is developing. There you will also find an overview of our comprehensive expertise in the federal states of Hesse and Rhineland-Palatinate.

With our service, the modern online processing and presentation of your house sale, you will be comprehensively and specifically supported in your cooperation with Lukinski Lukinski. Secure the best selling price for your property – with Lukinski. We shorten the selling period and ensure a smooth property sale.

Numbers & facts: Divorce

Marriages and divorces in comparison

Marriages and divorces in Germany from 1960 to 2008.

You can find more statistics at Statista

Divorce rate in Germany

Here you can see the current divorce rate in Germany from 1960 to 2018.

• 2018 (current): 32.94%
• 2010: 48.95%
• 2000: 46.45%
• 1990: 29.97%
• 1980: 28.4%
• 1970: 18.07%
• 1960: 10.66%

Why do women get divorced?

According to a survey of the magazine Brigitte, it is especially the goals in life that are the reason for divorce. Of 43,000 women, almost 32 percent named different ideas about the future as the main reason. “We have grown apart,” it is often said succinctly. Second place is occupied by infidelity with 29.2 percent. Here, affairs of the partner are the main reason for divorce. 10.9 percent of the respondents named constant quarrelling, bickering and squabbling as the main reason for divorce from their husbands, which is thus the third most common reason.

1. Life goals
2. Affairs
3. Quarrel

Read more about reasons for divorce here.

Marriage contract protects against dispute in case of divorce

Avoid trouble from the outset, a marriage contract makes it possible. Even if people who enter into a marriage do not want to think about the fact that it might end one day, it is recommended to keep a marriage contract from the beginning. Because we now know that the owner of a property is always the person entered in the land register. But to avoid further annoyances or ambiguities, a marriage contract should always be concluded in addition.

Unfortunately, there are few couples who choose to sign a prenuptial agreement at the time of marriage, as they assume at that point that they will never separate or even in a separation will treat each other fairly. But unfortunately this is rarely the case and “Wars of the Roses” are more the rule. Whoever does not have a prenuptial agreement can quickly be put at a disadvantage – especially if there is a property where they have lived together for many years.

Financial disputes in divorce proceedings

What role did financial disputes play in your divorce proceedings?

You can find more statistics at Statista

A prenuptial agreement may not be very romantic, but it can avoid a lot of stress during a divorce. This contract can contain, for example, what exactly will happen to the property if a divorce should occur. If the divorce does occur, there is no room for discussion, as the contract is binding. It is no longer necessary to discuss which way to go to sell the property, as this is already written down.

Marriage contract: regulations and agreements

A prenuptial agreement is therefore really not to be underestimated and can bring clarity in deadlocked situations, because what is written in the prenuptial agreement is also implemented. A prenuptial agreement also does not necessarily mean hard rules and little room for the spouses’ own ideas, because this contract can be arranged quite flexibly.

Tip! In such a contract can also be concluded after the marriage.

• All regulations, which are made by mutual agreement, save a lot of stress
• Agreements concerning separation of property, maintenance and the equalization of pension rights
• A marriage contract must be concluded with a notary public.

The spouses, who draw up a contract at the beginning of the marriage, can decide for themselves what belongs to whom, how the property and belongings will be treated when the divorce comes, and what contingencies might occur and influence the division. However, it is also quite possible for the spouses to include a fixed arrangement, which is recommended by experts and consultants.

We cannot take away the pain of divorce, but we can save you time, money and stress

Even if a prenuptial agreement sounds unromantic, it can save you a lot of headaches in the divorce process. If it is clarified from the outset how the individual assets will be treated after the divorce, many questions in the divorce will resolve themselves. This emotional matter is thus made easier for all parties, especially when real estate is part of the property. But even if there is no marriage contract, it is always advisable for the spouses to clarify the various ownership issues after the divorce as peacefully as possible.

Questions and answers: Divorce

Also, drawing up a post-divorce agreement can raise problems and questions and lead to disagreements between the spouses. To ensure that you are fully aware of the agreements, we will answer all important questions about the post-divorce agreement.

What is post-divorce settlement ?

The aim of a gain equalization is that both spouses leave the marriage with the same gain in assets. Therefore, in divorces of marriages without a marriage contract, a gain adjustment is made to compare and adjust the individual gains.

How do I find the owner of a property ?

The owner of a property is the person who has been registered as the owner in the land register. When buying a property, the entry in the land register must be changed in order to legally enforce the purchase.

What does a divorce with house cost ?

The costs of a divorce depend on many different things. The assets of the couple play a decisive role, but also whether the divorce is contentious or consensual has an impact on the costs. If assets belong to marriages without a marriage contract, a gain compensation is made, in which also real estates are considered. The costs can therefore only be determined individually.

What is the separation year ?

The separation year is required by law. Married couples must live apart for one year before the divorce in order to carefully consider the decision to divorce. Only after this separation year is a divorce possible.

How is the gain compensation determined?

Each spouse’s initial assets are calculated on the day of marriage. Then the current state of the assets is calculated and finally the difference between the spouses’ gains is determined.

Who bears the costs in case of divorce ?

The divorce costs are usually set off against each other. This means that both spouses pay their own legal fees and additionally pay half of the court costs. The amount of the legal costs is determined by the court, including the lawyer’s fees.

What is a post-divorce agreement?

The divorce agreement is a contract between spouses in which all important questions belonging to a divorce are clarified privately in advance, so that these questions no longer need to be regulated in the divorce.

What does a notarial divorce settlement cost?

The costs for the notarized post-divorce agreement are calculated according to the procedural value of the divorce. It must therefore be determined in each individual case and cannot be named in a lump sum.

What is a separation agreement?

The separation agreement regulates all possible issues for the period between separation and divorce. It can be useful if couples only want to separate and not divorce for the time being.

How much does an amicable divorce cost?

The costs of an amicable divorce are measured by the value of the proceedings and vary from case to case. The costs depend on the income, the assets and the lawyer costs together and must be determined therefore in the individual case.

Let the property be sold: House and apartment

A divorce is often a sad and painful break in the life of a married couple, which presents people with great emotional challenges. Would you still like to take care of documents, contracts and the sale of real estate in such a situation?

Concentrate on yourself and leave everything else to us at Lukinski. We will give you fair and professional advice, try to find solutions together with you and your spouse to sell your property at a good price. A divorce is hard enough, you shouldn’t have to deal with viewing and placing advertisements. We will accompany you through the entire sales process and take the most important steps for you, so that the sale of the house becomes the least evil of the divorce. Let us advise you when you are about to sell your property and convince yourself of the advantages of a professional expert. No matter whether it is due to a divorce, inheritance, moving house or money worries – we are here to help you with words and deeds. Lukinski is your contact person when it comes to the sale of your property, for which the investment is more than worthwhile!

If you’re looking to invest in Germany’s thriving real estate market, Lukinski has you covered. From guides to German inheritance law, tax optimization, additional costs and hidden purchase fees, renovation, and the list goes on. Want to delegate the work? As German real estate experts, we can be your man on the ground:

• Realtor, Agent, and Advisor: Lukinski

Germany’s Second City

Munich counts itself to one of Germany’s economic capitals. It is also famous for its high quality of life and surrounding nature. The alps for skiing or hiking, as well as countless lakes for summer activities, are all nearby, not to mention the italian coast just to the south. Nowadays it is Germany’s third-largest city with some 1,5 million inhabitants. It has a very low unemployment rate, strong technology and science sector, as well as increasing popularity for startups, not to mention its everstrong automotive and aviation industries.

Munich Real Estate Market Explained

Munich’s real estate sector is characterized by strong demand and low supply. This is also unlikely to change, with little construction being done within city limits. Munich is also the most expensive city for real estate in Germany. The average prices for single- or double-family residences are around €1.3 mil. (almost twice as high as any other city in Germany) and for apartments around €450.000, also higher than in any other city in Germany.

Buy or Rent in Munich?

If you’re thinking about investing in Munich’s real estate, the question about rent or buy is probably in focus. The recommendation here is clear: Buy or, when possible, build. In recent years, the development has been towards low interest rate on mortgages. This means you’re likely to lose money renting, as opposed to buying, when looking at one property. Furthermore, with the inner city filling up, and with the market extremely tense, the best option is likely to invest in the outer parts of the city. Comparing the buying price and yearly rent in these parts shows that the ratio here is good. Most importantly though, the price is increasing, meaning that your investment will likely pay off. In these regions you’ll find prices like:

• Buy: 5.600 €/m²
• Rent: 16,34 €/m²

Prices Layout for Residentials

With the go-to being near the outer parts of the city, and with Munich being a family-friendly city, the prices for single- or double-family residences give a good indication of the market. These are, in €/m²

• Very Good – €1.550.000-€16.000.000 (increasing)
• Good – €1.300.000-€3.100.000 (increasing)
• Mediocre – €700.000-€1.800.000 (increasing)
• Simple – €500.000-€1.300.000 (steady)

Buy in Munich

First we take a detailed look at current statistics for buyers. Here you will find a lot of information, from the purchase price for a newly built condominium to tips for renting property. We will also take a look at two important issues: buying in Munich and the danger of a real estate bubble Munich.

1. Purchase price for newly built condominium
2. Purchase price development since 2010
3. Highest real estate loans in Munich
4. Munich real estate bubble?
5. Buy in Munich
6. Number of sales of luxury homes
7. Let the property

Munich’s city centre with its famous church.

Purchase price for newly built condominium

Purchase price for newly constructed condominiums in Munich from 2009 to 2019 (in euros per square meter). From 2009 to 2019, the price per square metre for an ETW (new building) rose from 3,400 euros / square metre to 8,100 euros / square metre. An increase of 4,700 euros / square metre, a whole + 138.2% in just 10 years. Will the situation remain tense? Read our analysis with current facts and figures.

More statistics can be found at Statista

Purchase price development since 2010

Already 10 years ago Munich had a significantly higher price level for the purchase of real estate. The development continued. Here you can see a comparison of the purchase price of condominiums in Munich 10 years ago with the whole of Germany in the 1st quarter of 2010 and 2011 (in Euro per m²)

Munich

• Munich, cut: 3.538 Euro / square meter
• 1st quarter 2010: 3,396 euros / square meter
• Increase Q1 2011: 3,680 Euro / square meter

On average higher purchase price at the turn of the year 10 years ago:

+123.78 % purchase price (see Germany)

Germany (comparison)

• Germany, cut: 1,581 Euro / square meter
• 1st quarter 2010: 1,519 euros / square meter
• Increase Q1 2011: 1,643 Euro / square meter

More statistics can be found at Statista

Buying in Bavaria since 2010

Purchase prices for residential real estate in Bavaria by cities in the first half of 2011 (in EUR 1,000).

• Seihenhaus (blue)
• One-family house (dark blue)

More statistics can be found at Statista

Highest real estate loans in Munich

The chart shows a ranking according to highest average mortgage loan in the 20 largest cities in Germany based on a current evaluation of the comparison platform Check24. Loans of 500,000 euros are compared here, for 101 square metres of living space.

1. Munich – 504,000 Euros
2. Frankfurt – 417,000 Euro
3. Hamburg – 384,000 Euros
4. …

More statistics can be found at Statista

Real estate bubble Munich?

The chart shows the risk of a real estate bubble by index value in selected major cities worldwide. The UBS Global Real Estate Bubble Index places the real estate market in a long-term perspective and aims to track the risk of real estate bubbles in global cities. The index examined 24 major cities. Munich ranks first in the survey.

More statistics can be found at Statista

Where is it worth buying? comparison

Where is it worth buying a property (house, semi-detached house, condominium, etc.)? In comparison, one sees the potential that lies dormant above all in NRW and Hessen. This chart shows the cost advantages of home ownership compared to rents in German metropolitan areas in 2018.

1. Düsseldorf with 53.8%
2. Cologne with 53.6%
3. Frankfurt with 50.1%
4. Stuttgart with 44.0%
5. Leipzig with 41.8%
6. Munich with 37.6%
7. Hamburg with 35.0%
8. Berlin with 26.9%

More statistics can be found at Statista

Exclusive houses and designer homes in Munich.

Exclusive freehold flat, in the middle of the Viktualienmarkt.

Number of sales of luxury homes

How many luxury properties are sold and bought in Germany each year? These statistics show how manageable the market is. Here you can see the number of sales of luxury homes in selected cities in Germany.

More statistics can be found at Statista

Data show for visualization last survey in the 1st half of 2010 and 2011.

Are there enough apartments built?

You can live in your own property yourself or you can rent it out. With the current housing shortage, this is a good prerequisite for increasing rental income. Because as always, supply and demand. The chart shows the share of annual building completions in 2016-2018 in the annual demand in the period 2016-2020.

1. Hamburg and Düsseldorf Coverage / year at 86%
2. Frankfurt am Main Coverage / year at 78%
3. Berlin coverage / year at 73%
4. Munich Coverage / year at 67%
5. Stuttgart Coverage / year at 56%
6. Cologne Coverage / year at 46%

More statistics can be found at Statista

Rent

1. Rental price for the perfect apartment
2. Housing market: Current requests and offers
3. Reality Check: Prices for first time rentals
4. Residential building in Munich
5. Service charges in comparison
6. Rent a commercial property
7. Rent office: Free areas and practices
8. Rent office: compare prices

Rental price for the perfect apartment

As with the purchase of real estate, Munich is also at the top of the German-wide comparison of average rents. The chart shows the average rent for an apartment with 3 to 4 rooms (81 to 105 sqm).

1. Munich – 1.500 Euro / month
2. Frankfurt – 1.170 Euro / month
3. Stuttgart – 1.080 Euro / month
4. Hamburg – 1.030 Euro / month
5. Düsseldorf – 900 Euro / month
6. …

More statistics can be found at Statista

Home market: Current requests and offers

The chart shows requests and offers for rental apartments in the 14 largest cities in Germany. 150,000 advertisements for rental apartments and the corresponding contact enquiries were evaluated.

More statistics can be found at Statista

Reality Check: Prices for first time rentals

The chart shows the cold rents for first-time rentals in top 7 cities per square metre.

1. Munich from 12.96 Euro to 17.42 Euro (+ 4.46 Euro)
2. Stuttgart from 10.00 Euro to 14.21 Euro (+ 4.21 Euro)
3. Frankfurt from 11.57 Euro to 14.18 Euro (+ 3.01 Euro)
4. Hamburg from 12.00 Euro to 13.16 Euro (+ 1.16 Euro)
5. Düsseldorf from 8.62 Euro to 12.55 Euro (+ 3.93 Euro)
6. Berlin from 7.05 Euro to 12.40 Euro (+ 5.35 Euro)
7. Cologne from 9.12 Euro to 12.39 Euro (+ 2.59 Euro)
8. Comparable value: Germany from EUR 6.99 to EUR 9.58 (+ EUR 2.59)

More statistics can be found at Statista

Residential building in Munich

Number of residential buildings in Munich in the years from 1980 to 2018 (in 1,000). The changes at a glance. Residential buildings increase in the last 10 years (2008 – 2018):

+ 9,000 residential units (+ 6.7%)

Residential buildings increase in the last 38 years (1980 – 2018), since survey:

+ 35,300 residential units (+ 32.9%)

More statistics can be found at Statista

Service charges in comparison

The chart shows the total ancillary housing costs per year for a three-person household (in euros). The average in Germany is EUR 1,900.84 per year. The cheapest cities for ancillary costs are:

1. Munich – 1.643,00 Euro / year (257,84 Euro less)
2. Mainz – 1,686.02 Euro / year
3. Hamburg – 1,682.40 Euro / year
4. Kiel – 1.682,40 Euro / year
5. Stuttgart – 1,729.74 Euro / year

More statistics can be found at Statista

Commercial property rent

Location is everything! Especially for entrepreneurs and companies. In all major cities the rents for commercial properties are rising, only in Berlin the costs for the monthly rent are getting cheaper, and that in the best location. This chart shows the indexed costs for commercial real estate in the largest cities in Germany (Hamburg, Cologne, Frankfurt, Munich and Berlin) in comparison. A joint index takes into account shop rents in prime locations, shop rents in secondary centres, office rents in city centres and the prices for commercial properties.

1. Hamburg
2. Cologne
3. Frankfurt
4. Munich
5. Berlin

More statistics can be found at Statista

Rent office: Free areas and practices

Finding the perfect office – How does Munich compare to other German cities? How many free spaces and practices are there in relation to Stuttgart, Hamburg, Berlin & Co. This chart shows the proportion of vacant office space as a proportion of total office space in selected German cities in 2018.

1. Frankfurt am Main – 6.8% free / 93.2% rented
2. Düsseldorf – 6.4% vacant / 93.6% rented
3. Hamburg – 3.6% vacant / 96.4% rented
4. Cologne – 2.8% free / 97.2% rented
5. Stuttgart – 2.3% free / 97.7% rented
6. Munich – 1.8% free / 98.2% rented
7. Berlin – 1.5% free / 98.5% rented

More statistics can be found at Statista

Rent office: Prices in comparison

Where are office rents currently highest? Munich is at the top of the league, with current average office rents of 39.50 euros / m² and thus second place in the ranking of office rents in Germany. Here you can see the top rents for office space in German cities.

1. Frankfurt – 45.50 Euro / m² (+ 23.1%)
2. Berlin – 39.90 Euro / m² (+ 44.9%)
3. Munich – 39.50 Euro / m² (+ 24.6%)
4. Hamburg – 29.00 Euro / m² (+ 19.0%)
5. Düsseldorf – 28.50 Euro / m² (+ 19.3%)
6. Cologne – 25.50 Euro / m² (+ 20.4%)
7. Stuttgart – 24.00 Euro / m² (+ 21.7%)

More statistics can be found at Statista

Munich at sunset.

The romantic and typically European, Bavarian city centre.

Living, economy, city and inhabitants

1. City Map of Munich
2. Private households: Forecast until 2030 in Bavaria
3. Munich is family-friendly
4. Comparison: Munich, Hamburg, Cologne and Berlin

City map Munich

Private households: forecast until 2030

How is Munich developing as a city and in Bavaria as a federal state? Here you can see the number of private households in Germany by federal state in 2018 and forecast for 2030 (in 1,000). This is an optimal situation for landlords as the demand for living space increases.

More statistics can be found at Statista

Munich is family-friendly

Do you consider your city to be family-friendly?

1. Stuttgart – 65%
2. Dortmund – 63%
3. Bremen – 61%
4. Hamburg – 60%
5. Cologne – 60%
6. Dusseldorf – 57%
7. Munich – 56%
8. Frankfurt – 51%
9. Berlin – 48%
10. Essen- 41%

More statistics can be found at Statista

Comparison: Munich, Hamburg, Cologne and Berlin

Where do most of the inhabitants live? Here you see visualized, the 4 biggest cities in Germany. The graph shows the number of inhabitants in the German megacities on 31 December 2018, at the turn of the year 2018 / 2019.

• Berlin – 3,644,826 inhabitants
• Hamburg – 1,841,179 inhabitants (- 1,625,647 cf. Berlin)
• Munich – 1,471,508 inhabitants (- 2,173,318 see Berlin)
• Cologne – 1,085,664 inhabitants (- 2,559,162 cf. Berlin)

More statistics can be found at Statista

Buy in Germany

Tip! Read more about Buy an apartment: The 10 most expensive German cities.

• Ranking: Square meter prices for condominiums
• House price index: development of house prices
• Development of construction investments in Germany
• Ownership ratio in Germany

Ranking: Square meter prices for condominiums

Cities with the highest prices per square meter for condominiums in 2015 and 2019 (in euros per square meter).

1. Munich – 8,993 Euro / square meter
2. Frankfurt am Main – 6,701 Euro / square meter
3. Stuttgart – 6,324 Euro / square meter
4. Potsdam – 6.1.64 Euro / square meter
5. Berlin – 5.578 Euro / square meter
6. Hamburg – 5,507 Euro / square meter
7. Düsseldorf – 5,470 Euro / square meter
8. Erlangen – 5.416 Euro / square meter
9. Regensburg – 5.411 Euro / square meter
10. Freiburg im Breisgau – 5,349 Euro / square meter

More statistics can be found at Statista

House price index: development of house prices

Development of house prices in Germany in the years from 2000 to 2018 (2015 = Index 100).

More statistics can be found at Statista

Development of construction investments in Germany

Development of construction investments in Germany in the years 2000 to 2016 (compared to previous year).

More statistics can be found at Statista

Ownership ratio in Germany

Ownership rate in Germany in the period from 1998 to 2018 by Länder

All further information on statistics can be found at Statista

Rentals in Germany

Tip! Read more about Rent an apartment: The 10 most expensive German cities.

1. Development of the rental price index
2. Ranking: Rents for apartments
3. Number of newly constructed residential buildings

Development of the rental price index

Development of the rent price index for Germany in the years from 1995 to 2019 (2015 = Index 100)

More statistics can be found at Statista

Ranking: Rents for apartments

Cities with the highest rental prices for apartments in Germany in the 4th quarter of 2019(in euros per square metre)

More statistics can be found at Statista

Number of newly constructed residential buildings

New construction: Where are new apartments being built? Number of newly constructed residential buildings in Germany by federal state in 2017 and 2018 (in 1,000).