Selling Property in New Development Areas

Extremely relevant factors for the sale of apartments in new construction are the equipment of the apartment itself, but also the equipment and technology in the communal areas and in the house itself. The market value assessment of apartments is generally more complex than for owner-occupied homes, which is why you should definitely aim for a professional value assessment for planned sales in new construction.

Influence of Location and Structure

In many cities, new development areas are emerging in the form of fully developed neighborhoods on the outskirts and in up-and-coming neighborhoods. For potential buyers, the location is as relevant as the structure of the area in which the apartment is offered. You have just planned a new development area and are looking for owners who are interested in your project as investors or want to buy the newly built apartment for their own use? It is common practice for developers to offer apartments in new development areas not only after completion. Since the equipment and all environmental factors of the new development areas are already determined in the planning phase, you can already at this point in time hire an experienced real estate agent who is familiar with new development areas and have the offer presented.

Real Estate as Capital Investment: Special

• Part 1: Classical or exotic investment – Which real estate is suitable as capital investment?
• Part 2: Real estate as capital investment – What do I have to pay attention to?

In practice, it has been shown that new development areas designed with green spaces and a good infrastructure are highly attractive and ensure that all apartments are sold quickly. The offer price is determined on the basis of your construction and planning costs, the data relevant to the property and the comparison prices of similarly located and designed new development areas. Would you like to sell your apartment in a new development area and avoid losses when selling it? If so, you should opt for a professional sale and hire real estate agents who are well versed in new construction and who offer you comprehensive service in all phases of the sale.

Apartments or Houses for Capital Investors

With apartments in new buildings you address two different target groups. On the one hand, a newly built apartment is a good and high-yield capital investment and on the other hand, more and more families are looking for an apartment for sale in a newly developed residential area. In addition to condominiums, new construction areas with owner-occupied homes or terraced and semi-detached houses are also interesting and popular. If you would like to offer a property or an apartment in a newly developed area, you should definitely hire an estate agent and in this way ensure the greatest interest in your offer. The exposé for investors requires a different structure and density of information than the presentation of the apartment to be sold to owner-occupiers. You want to achieve the best price and gain the certainty that your offer will sell immediately in the new development area.

With Lukinski, you decide, in addition to professional brokerage, for a full service support, which includes the examination of the solvency of buyers and prevents unrealizable sales contracts. The completeness of all documents and an exposé geared to the target group are sales-promoting. Especially if you want to address professional buyers in the form of capital investors, your sales appearance should be characterized by professionalism and expertise.

New not More Expensive than Old: The Facts

Many prospective buyers assume that the costs of apartments and houses in new construction areas are much higher than in old buildings. Certainly, the asking price is usually higher than the amount you have to pay for an existing property or a condominium in a second occupation. But the purchase price is only one cost factor and therefore not the only factor when it comes to deciding between an old building and a new building.

In the new building area you acquire a modern apartment in which no costs are incurred for renovation. Newly built areas are state-of-the-art and offer a high quality of living. For you as a potential owner, this means that with the purchase you acquire an apartment ready for occupancy and therefore only invest the purchase price and the costs for interior design work. For existing properties and apartments in old buildings, extensive modernization measures may be necessary and increase your costs to the actual purchase price. It is therefore always worthwhile to weigh up concretely and calculate the purchase on the basis of the market value assessment and the necessary renovation measures. In the end, your decision to move to a new development area or an older property will of course also be based on your own preferences and the idea of your new home or a profitable capital investment.

Move to a New Development?

Tips for potential condominium buyers – Anyone who wants to buy an apartment or house and move in immediately, without renovation and modernization, will generally focus on a new development area. Are you looking for a new building and want to save yourself a lot of time with your own research? At Lukinski, we not only look after owners, but are also happy to support you in your search for a new apartment or house. Tell us your explicit wishes and have a look around our portfolio where we might already have an offer for you. If you decide to buy an apartment in a new development area that is only just being planned, you have a lot of leeway for organizing the financing.

We will be happy to advise you and help you find a favorable real estate loan for your apartment and complete the purchase without complications. Since we at Lukinski work for various owners and developers, we have some attractive new development areas in our portfolio. Furthermore, we already know before construction where new development areas will be built and which target group the apartments should reach.

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.

House Valuation

The most important criterion is the location. The real estate prices varied regionally partly considerably. Therefore only objects in the proximity may enter into the real estate comparison. As experts for the real estate sales in the regions Rhineland-Palatinate and Hessen we can give fast a realistic estimate over the real estate comparison. With the house evaluation likewise aspects of the micro and macro situations, as well as the direct location of the object are of importance: Soundscape, view and lighting conditions interest potenzielle buyers and affect real estate value and the attainable price.

Before we get deeper into the matter of evaluation of location, building fabric, market value & Co., we first ask 3 basic questions which reach us in consulting discussions with customers:

• How can I value a property?
• How does the bank value a property?

Definition Market Value: Simply explained

The fair value is defined as the price that is calculated at a certain point in time according to different wars and that is realizable for the property in the ordinary course of business. There are several starting points for determining the fair value. On the one hand, they concern the legal circumstances and on the other hand, the actual characteristics of the property. This means the state of renovation, the equipment, the location in the building, the energy certificate, etc. Personal circumstances of the owner are not taken into account. So it does not matter for the market value whether and how urgently an owner needs the money from the sale. The general demand for the respective type of property, however, affects the market value. In European law the term market value is rather not used. Here one speaks already longer of the market value.

To determine the value of a property, three different procedures for determining the market value are defined. A house evaluation takes place approximately with the real value procedure, the income value procedure and the comparative value procedure. With all valuation methods, the material value of the property is decisive first. The valuation methods are applied individually or in combination. The choice of the procedure depends primarily on the use of the apartment. For example, the capitalized earnings value method is often used for rented apartments, while the comparative value method is used in particular for owner-occupied apartments and houses.

Factors Included in the Market Value

The fair value of a property is ultimately the selling price obtainable on the market. In practice, however, the market value of a house or apartment is largely based on a realistic assessment of supply and demand: the higher the demand for a plot of land or property and the scarcer the corresponding supply, the higher the market price of the property and thus its market value.

Determine the Value of the Location by Standard Land Value

The position of the object can be determined most easily with the ground reference value. The ground reference values are determined separately for each property in Germany. However, the land value is also only a guideline value, as only the fixed average value is taken into account. The actual characteristics – advantageous and less advantageous – of the specific property are not reflected in the standard land value. The guideline value is a calculated value derived from other land sales. The standard land value plays a central role in the comparative value procedure.

How the Building Value is Determined

For a complete property valuation, the market value of an existing building is taken into account in addition to the land value. The building value is determined by its potential uses. In the case of a rented building, the annual rental income and the maintenance costs to be incurred during the same period are compared. If, for example, only a very low rent can be achieved, for example on the basis of the local rent index, the potential for income from the property is also limited. This is also included in the market value.

Costs of a Valuation

For the calculation, a rough evaluation is first made. The price for the final valuation is therefore, in most cases, based on the estimated value of the property to be valued.

If the value of the property is below a limit of 150,000 Euros, you can expect approximate costs of 1,500 Euros. For luxury real estate or multi-family houses with a real estate value of more than 1 million, the estimated fee rises to 3,000 Euro.

• Below 150,000 Euro value, approx. 1,500 Euro

Source: Federal Association of Experts

What Counts in the House Evaluation

For buildings that are not rented, the following criteria are included in the house evaluation in addition to the land value:

• Equipment
• Quality of construction

Construction quality and condition of floor coverings, bathroom, kitchen and roof are also criteria for determining the market value. Further special equipment characteristics, which differentiate the object from others in the neighbourhood, like a fire-place, the beautifuly put on garden, winter gardens, soil heatings, a swimming pool or safety and Smart technology affect the price determination. Residential properties also become interesting due to large and modern bathrooms and regular renovation measures.

Asset Value Method: this is How the Net Asset Value is Calculated

In contrast to the market-oriented determination of comparative values, publicly appointed or sworn appraisers calculate the net asset value of the property using the real value method. Only the standard land value and the production costs of the property are taken into account. However, you can also rely on the determination of the best possible purchase price in a valuation by the Lukinski real estate agents. We know which locations and features are particularly sought after in Rhineland-Palatinate and Hesse. When determining the purchase price, we took into account the current situation on the real estate market. Our valuation procedure allows exact conclusions to be drawn about the realizable market value of your property. The comparative value method used does not focus on the material value of the property, but on the selling prices that similar property offers in comparable locations actually achieve.

Always Important: Energy Efficiency

The seller is legally obliged to present the interested party with an energy certificate of the apartment or building. A small energy requirement is an extremely looked for characteristic with real estates and affects favorably the real estate evaluation. Thumb formula: The higher the energy efficiency, the lower energy costs (heating, electricity) for the buyer. Meanwhile also ideal reasons play a large role with the energy efficiency with the real estate purchase: For the climatic change modern real estate customers want to be responsible only in as small a measure as possible.

Creating Added Value: Extensions, Conversions and Renovations

Renovations or conversions that contribute to increasing the living comfort, quality and equipment of the property can additionally increase the value of the property. Save the invoices for renovations and, if possible, submit them already during our online evaluation. The professional installation of the swimming pool, for example, with details of price, year of construction and components used, will convince future buyers of the added value of the property.

In the condition of the property, the windows, roof and façade are in the foreground. If, for example, an outdated or outdated installation has been replaced by renovations, the value of the property is certainly increased. Appraisers also consider the factors relating to the condition of the property under the term “renovation backlog”: What costs can the future owner expect to incur in subsequent years? New and energy-saving heating systems, renovated bathroom fittings, door handles or additional thermal insulation are further measures that enhance the value of a property

Submit an Extract from the Land Register

The extract from the land register contains past and present events concerning the property and its development: When was the property owned by whom, which buildings were erected or changed on which date? The land registry at the local district court administers all land registry entries in the region and provides the owner with an extract from the land register on request.

Lukinski Realtor-Tip: If you wish, we will gladly obtain the land register extract for you to speed up the sales process.

Rental Agreements are Included in the Valuation

Usually not rented real estates can be marketed more easily, because many buyers would like to move in even into the new house, the bought dwelling. If objects are rented, the sales proceeds are therefore somewhat smaller under these circumstances. For capital investors however the letting status of a dwelling is again very crucial with the purchase intention.

Very important for the property valuation of rented properties are the existing rental agreements. If the potential buyer can achieve a return by purchasing the property, a rented residential property may well be of interest to investors and increase the price. The rental agreements provide information on how long the tenants have already lived in the house or apartment and how high the monthly net rent is. The Lukinski experts use the capitalized earnings value method to determine how the purchase of a rented property actually pays off.

The Final Purchase Price

Regardless of the valuation procedure, the purchase price is ultimately influenced by market events. From the buyer’s point of view, the currently demanded purchase prices seem too high to many. The salesman however has a substantial advantage with the current development of the real estate prices: by the – depending upon situation naturally – at present attainable prices many owners of real estate can sell their objects at present clearly over the actual market value.

Also we, the real estate experts of Lukinski cannot escape this trend. Our evaluations for objects in Rhineland-Palatinate and Hessen are nevertheless based on solid columns. With many years of experience in the valuation of a wide variety of properties, we can provide very reliable figures and price ranges at very short notice and with only a few details. We determine the optimum of market value and market situation in order to achieve the best possible price within the time frame you have in mind.

Since we keep our customer data available to many interested parties, your buyer may already have been found. Contact us, we will be happy to help you sell your house, apartment, company building and land.

You want to sell? Read more tips on taxes, procedure & Co. under Selling an apartment.

What influences the value of an apartment?

But let’s stick to the so-called “Pi times thumb value”, a very rough value determination. In order to determine the value of your apartment, a number of “soft” factors play a role.

Before we get deeper into the matter of evaluation of location, building fabric, market value & Co., we first ask 3 basic questions which reach us in consulting discussions with customers:

• How can I value a property?
• Who determines the market value of a property?
• How does the bank value a property?

Location, location, location: value enhancement and sales argument

This refers to all those things that you can see but cannot immediately translate into money or other value. First and foremost, this means, for example, the so-called micro and macro location of the apartment, i.e. the view of the immediate and regional surroundings. Whether your apartment is located on a busy street or in a quiet suburb, whether the surroundings of your apartment are rather middle-class or socially disadvantaged – all these “soft” conditions influence the value of your apartment.

Hard facts: Infrastructure and equipment

The “hard” factors of the micro-location include the proximity to doctors, public institutions or cultural sites. For here, the conditions can be measured at least in terms of distance and number of available facilities. Basically, the following applies here:

The closer you are to public life, the more value these factors add.

The proximity of your home to public transport is also – and certainly increasingly so – a plus point. After all, buses and trains are becoming increasingly important in urban and rural areas in the context of the climate debate. Certainly: the availability of your own parking spaces or even an underground car park also has a positive effect on the value of your apartment.

Do you know the crime rate in your residential environment? This is a real “mixed factor” of hard and soft in apartment valuation. On the one hand, this rate can be “hard” by means of figures, but on the other hand, the rate of a district does not necessarily apply to the immediate street situation of your property. Especially in this area there is a lot of “felt” security or insecurity.

Decrease in value or increase factor

These criteria have one thing in common: they cannot be converted into hard currency, or only with great difficulty. There is no exact value reduction or increase factor here. This also applies to the macro location of the apartment. In other words, the location of the apartment in a larger geographical region or a district in the case of larger cities. Even if apartments in southern Germany are generally considered more expensive than in the north, a chic apartment on Hamburg’s Alster is always worth more than in Göggingen near Augsburg, for example. An apartment – for example in Essen – is on average much more expensive in southern districts than in the north.

Checklist: Rate apartment for sale

Important when selling an apartment:

1. Take the time for the preparatory work
2. Present the apartment professionally
3. Use our service to achieve a good sales price.

Comparable values and square meter prices

In the apartment valuation we include the local square meter prices in the comparison. We determine comparable residential properties and their selling prices from nationwide and especially regional databases.

The square meter price which is usual in the industry and regionally obtained is apportioned to your free-hold apartment in the comparative value procedure. Thus you receive a realistic sales price estimate for your apartment. In addition to the comparative characteristics such as location and size of the apartment, individual furnishings and fittings are also included in the real estate value determination. Thus, conservatories or high energy efficiency can significantly increase the price. But also building damages, pending repairs or modernization measures are considered with the price determination.

Real estate prices in Germany

Here you will find a selection of the largest German cities with information on purchase prices, comparisons and development of economy and infrastructure at a glance.

Real estate prices:

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

Criteria for the valuation

Other criteria for determining your real estate value include general information about the real estate object such as floor, room and equipment.

1. Year of construction of the object
2. Living floor
3. Number and size of rooms
4. Balcony, terrace, loggia and winter gardens
5. Community property
6. Rented apartments

Year of construction of the object

In the case of old buildings (built before 1945), renovation of old buildings increases the sales value. The price for apartments in well-preserved or renovated old buildings is often higher than the local average price. Newly built apartments are also generally valued higher. However, many apartments from the 1960s and 1970s often have to reckon with price discounts if a particularly poor building fabric is found.

• Purchase price reduction often for 60’s / 70’s buildings

Residential floor: first floor, penthouse & elevator

The higher the apartment is in the building, the higher its price. First floor apartments are less in demand and their price can be up to 30 percent below the average. If the higher-lying apartment is also accessible by elevator, the circle of potential buyers is also increased.

-30% for first floor apartments

From own experience real estate buyers are often “spontaneously in love” especially with penthouse and loft apartments. The purchase price here may definitely be slightly above the market value. With appropriate development of the attic with open space, additional, value-increasing factors are added.

Equally decisive, the higher the condominium, the sooner an elevator must be installed. Apartments without an elevator discourage many buyers nowadays, especially in the inner cities of metropolitan areas, which have many alternative real estate offers.

• Ground floor up to -30% of market value
• Loft / Penthouse increase the purchase price
• Important: elevator installation

Number and size of rooms

Rooms with at least ten square meters are counted. If it is less, the rooms are counted as half rooms. The kitchen and bathroom are not counted. In principle, apartments with many rooms are also valued at a higher price per square meter.

From experience, the number of bedrooms is what counts most. Especially for luxury properties, the number of bedrooms must be sufficient. Even singles attach importance here that sufficient capacities are available, whether they are needed after the purchase or not.

Number:

• Bedroom
• Living room
• Bath / baths
• Kitchen, walk-in kitchen
• Study office
• Walk-in closet
• Corridor / foyer

Balcony, terrace, loggia and winter gardens

Places to chill are sought after and so these additional features increase the possible selling price of the apartment. They enter with 25 per cent into the floor space calculation. In particularly favorable residential areas or with very complex organization they can be considered with up to 50 per cent as floor space.

Community property

Common property such as elevators, stairwells, roofs, doors, heating and utility lines can be very attractive special property. If the outdoor facilities are particularly well maintained or if meaningful common rooms are available, the market value of the apartment will also increase.

Rented apartments

If the future buyer cannot move directly into the new property, this often has an unfavorable effect on the purchase price. However, well-let properties are also sought after on the market. Investors take into account the expected yield of the property. Also in these cases we can help you decisively with an evaluation of your ETW.

Flat valuation online

Housing evaluation online? Many people use real estate portals for the evaluation of their apartment – but does that make sense? An algorithm can never assess the condition of your property as accurately as the human eye. Starting with the distribution of rooms with light exposure through south-north-north-east-west location, the possible further use for the buyer, the actual state of renovation, insights into the last modernization works, etc. If you generate your online evaluation online as PDF free of charge, you will receive a standard evaluation based on a few parameters.

This is not a sound evaluation! Because here never all conditions are asked in detail. This includes as described above, among others:

• Object data of the apartment
• Equipment of the interior
• Construction condition and facilities
• Modernization measures
• Individual object criteria of your apartment
• City district and local connection (school, supermarket, etc.)

If you carry out an online evaluation, you will also quickly notice that many portals also ask questions about the property, for example, when evaluating apartments: Does that make sense? No. That’s why such standardized queries usually don’t give you any relevant results that you can use to sell your apartment.

Sell? We will give you a clear assessment: Contact

Regional differences and real estate

As a real estate team with regional roots, we can only warmly recommend that you obtain your valuation from a trusted real estate agent. Here you will be asked really important questions, you will receive a free and well-founded assessment of your condominium based on truly market-relevant valuation criteria.

A simple online valuation, as it is offered on many real estate portals, can give you an insight, but not a sound analysis for the sale of your apartment.

Statistics Germany: Square meter prices

Here you can see the cities with the highest prices per square meter for condominiums in a comparison of 2010 and 2018* (in euros per square meter). More facts, figures and the development of real estate prices can be found at Real Estate Statistics.

1. Munich (Bavaria) with 8,342 euros per square meter; from 6,737 euros per square meter in 2014; increase of 1,695 euros per square meter in 4 years
2. Stuttgart (Baden-Württemberg) with 5,925 euros per square meter; from 4744 euros per square meter in 2014; increase 1,181 euros per square meter
3. Frankfurt am Main (Hesse) with 6,060 euros per square meter; from 4,373 euros per square meter in 2014; increase 1,687 euros per square meter
4. Freiburg im Breisgau (Bavaria) with 4,943 euros per square meter; from 4,740 euros per square meter in 2014; increase 203 euros per square meter
5. Ingolstadt (Bavaria) with 4,969 euros per square meter; from 4,287 euros per square meter in 2014; increase 682 euros per square meter

What are “hard” criteria for the valuation ?

Let us therefore adhere to the strict criteria in the strict sense of the word when determining the value of an apartment. And in doing so, those which you as a citizen can usually easily reach. For example, the household income of a city or district. Although there is no direct correlation between the level of household income and the value of a home, a high income means you can expect a high standard of living, high purchasing power and also a certain attractiveness of the location.

If the residential environment – in this case also seen from a regional perspective – shows a high number of different attractive employers, this hard criterion also has a positive effect on the value of the housing. Finally, one can assume that the demand for living space in this environment is quite high and thus also the value of the supply (apartment).

Among the hard criteria, which are independent of the location of the apartment, is the basic economic stability in the country. The course of economic development – also known as the business cycle – has a noticeable influence on the demand for residential property and thus also on the price.

Valuation method

A property is worth as much as others are willing to pay for it – that is the basic principle of the real estate market. Of course, the purchase price of a house or apartment depends on how much it cost to build and extend. But if no buyer can be found for a luxury villa or luxury apartment at a price that would be reasonable in view of the construction costs, the value is unfortunately still lower. However, this also applies vice versa!

A “spoiled” apartment in an otherwise passable house, but located in a sought-after environment, generates a high demand and thus a high price. With this so-called “comparative value method” you can even determine an approximate value of your apartment yourself. Comparable in the sense of the comparative value procedure would be a similar apartment in the immediate vicinity.

For this purpose, however, the value-giving “example” of the neighboring apartment should also be reasonably up-to-date. A value that was achieved ten years ago – let’s say – also reflects the market situation ten years ago.

Note: Each of the three methods will usually come to a different result!

Calculation example comparison value

Simply explained: For the calculation real estate comparative value we set exemplarily two real estates in the relationship. Based on the information on purchase price and total living space, we can then calculate the proportional purchase price for your property.

Details of the property to be valued:

• Area of the property to be valued: 200 square meters
• Purchase price of the property to be valued: ?

Details of the comparative property:

• Area of the comparative property: 100 square meters
• Purchase price for comparative property: 300.000 Euro

Income value, comparative value and material value

In the case of rented real estate, the “capitalized earnings value method” is usually the focus of the valuation. In addition to the land value of the property, the rental income and the so-called property interest rate of the property are also used for valuation.

For owner-occupied apartments, the “real value method” is also often used in addition to the comparative value method, especially in the case of luxury properties. In the foreground here is the material value of the building structures, which is derived, among other things, from the cubic meter price of the building and a building price index.

Both of the latter two methods are in any case suitable for a very precise valuation of your apartment, but in the end can only be applied by an expert. In the end, only an experienced real estate agent has an overview of the market situation with the comparative value procedure.

This is quite normal, because the underlying parameters of the valuation are different. Your real estate agent as real estate expert will then explain to you which value is the right one for you or your goals.

Costs of an apartment valuation

For the calculation, a rough evaluation is first made. The price for the final valuation is therefore, in most cases, based on the estimated value of the property to be valued.

If the value of the property is below a limit of 150,000 Euros, you can expect approximate costs of 1,500 Euros. For luxury properties or apartment buildings with a property value of more than 1 million, the estimated fee is 3,000 euros.

• Below 150,000 Euro value, approx. 1,500 Euro
• Over 1.000.000 Euro value, ,about 3.000 Euro

Source: Federal Association of Experts

Conclusion on the apartment evaluation – Checklist

The comparison of the value of an apartment in your neighborhood offers you a very good first indication for the valuation of your own apartment. In principle, the following factors increase in value:

• The location of your apartment in an attractive residential area
• The location within a conurbation or the proximity to major centers
• A quiet inner-city location, also very central in the city
• Good connections to public transport
• Short distances to supermarkets, doctors, pharmacies, authorities
• A neat living environment
• The good condition of community facilities in the house
• A high level of care for your home
• An elevator system
• Parking spaces or underground car park

A thing for experts: the valuation of your apartment

Documents for valuation

The exact determination of the housing value includes thus a quantity of basic conditions with. Even if you do not have a sale of your apartment in mind at the moment, you should compile some basic documents for an exact valuation. These documents will help the real estate agent to make an exact appraisal and create a solid basis of trust for possible future buyers.

The important documents include:

1. Extract from the land register
2. Declaration of division
3. Floor plan
4. Ground plan
5. Minutes of the owners’ meeting
6. Housing allowance statement for the last three years
7. Overview of the maintenance reserve
8. Proof of insurance
9. Energy Performance Certificate
10. Copy of the rental contract, if your apartment is rented

Even though the energy pass is always issued for the entire house in which the apartment is located, this pass allows direct conclusions to be drawn about the energy status of the apartment. Therefore, the certificate should not be missing in any valuation.

For insurance companies, only the policies that secure the actual building fabric are important. Thus fire and/or building insurances. Since the apartment is usually part of a multiple dwelling, a copy of the policy must usually be requested from the insurance company via the administrator. The insurance of your household contents is not part of the valuation!

Avoid errors in the valuation

To mention one of the most important mistakes in the (own) valuation right away: Most condominium owners have strong emotional ties to their property. Usually they do not notice this bond themselves, but unconsciously set the value of their apartment too high.

The second mistake often occurs when the sale of the apartment takes place under (time) pressure. As a result, the price is usually too low, because owners hope that this will lead to a quicker sale. Exactly for this reason, it is also sensible to let the owner determine the value of the apartment even without any concrete intention to sell. This way I can be sure that I have a solid value basis “in the drawer” when selling and also gain insight into the value development of my apartment over the years.

Even though we have mentioned the comparative value procedure as the most common method of determining the value above and referred to the price level of comparable apartments in the immediate vicinity, this is precisely where errors can occur if you use the value statements of neighbors, friends or acquaintances, or even advertisements in relevant real estate listings. Because who knows already whether the statements made represent the later reality with the sales happening.

What can a real estate agent do in the investigation?

Who is the right person for the valuation of your apartment? An estate agent or an appraiser? The answer to this basic question depends on the goal that you are pursuing with him.

You will always need an appraiser or expert if the valuation has to stand up in court – for example in the event of a divorce. An even higher level is to have the appraisal valued by a “state-approved real estate appraiser”. Then the appraisal is accepted by all authorities. No matter which of these two ways you choose: these appraisals cost money. An actual difference in quality or even the achievement of different values does not exist with either appraiser.

Also the value of the apartment determined by the real estate agent will not differ from the values of the appraisers, if both work seriously and according to the same guidelines. However, the “expert opinion” of the real estate agent will not stand up in court or other authorities. This has nothing to do with a lack of education or qualification of the real estate agent.

If you would like to appear confident and competent in front of potential buyers with a valuation report, the (usually also free of charge) opinion of an independent real estate expert or real estate agent is absolutely sufficient.

Because there is one thing that all experts should bear in mind: not everyone who calls himself an appraiser or expert is one. Pay attention with appraisers, for example, to certificates and training on the part of the Chamber of Industry and Commerce, and with estate agent appraisers to appropriate expert opinions in valuations and sales processes of apartments.

Conclusion: Apartment valuation

The value of a property, including your apartment, can be determined using various valuation methods. The results are as numerous as the possibilities, because you will always get a different result. This is quite normal and correct, as each valuation procedure is based on a different approach.

Online valuation only appearance: Simplest parameters

Why? Portals want to fill in your contact details, “free of charge” and off you go…

An online evaluation is mainly based on the location of the property and usually does not sufficiently capture the actual condition of a property. Therefore, an online valuation tends to yield only an overly optimistic property value.

The result should not be viewed too euphorically.

If you then commission a broker or other expert – including a state surveyor – to carry out a valuation, he will determine a lower market value for you.

The appraiser always determines the value on a valuation date and works with data from the recent past. While an online valuation is a free tool, you will incur costs with a certified appraiser. However, there will never be any unpleasant surprises, because the success fee is already fixed in advance.

Data from the recent past as well as forecasts for the coming months are incorporated into his evaluation. In addition, the real estate agent will discuss the value with you and recommend an advertisement price.

The valuation is the linchpin of a real estate marketing. Here you as the owner should leave nothing to chance or dare to experiment. After all, your financial future is at stake and it should be rosy.

You want to sell? Read more tips on taxes, procedure & Co. under selling an apartment.

Selling an Inherited House – the First Steps

Whatever type of property you have to sell now after the inheritance: 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.

In most cases the heirs decide on the inheritance: collect, administer or sell ?

Even if the property is located far from the heir’s place of residence. But in exactly this situation, the question arises what to do with the property. If neither inhabiting nor renting the house is possible, the most common consideration is to sell the inherited house.

• Reading tip: Sell or rent (external, FIV Magazine)

The first step: Local court, compulsory share and certificate of inheritance

After a house is inherited, the first step for the heir is to go to the local court. There the certificate of inheritance can be applied for. This measure should also be taken if the heir only claims the compulsory portion. The certificate of inheritance identifies the heir as the rightful owner of the property.

The certificate of inheritance is issued by the probate court. The competent probate court is always the district court of the last residence under which the deceased was registered.

At the appointment at the probate court, the heir must prove his claim to the inheritance. This can be done through the public will, the inheritance contract or by proving the relationship with the accompanying legal succession.

The following documents must be brought by the heir to the probate court:

• The identity card
• The death certificate
• An affidavit regarding the correctness of the personal data

The probate court then issues the certificate of inheritance. This is either a sole certificate of inheritance, a community certificate of inheritance or a partial certificate of inheritance.

The sole certificate of inheritance is issued if there is only one heir. A joint certificate of inheritance is issued if there are several heirs. The certificate of partial inheritance shows that there are several heirs and that each of them receives a single inheritance.

The certificate of inheritance allows the heir to view the land register. Through this it can be found out whether the property is encumbered with land charges.

It should be noted that the issuing of the certificate of inheritance can be very expensive. These are based on the value of the inherited property at the time of the inheritance, less the debts of the deceased. In addition, the amount of the fees is based on the effort of the inheritance certificate procedure. For example, a fee of 300.00 Euros is due for an estate of up to 125,000 Euros. For an estate value of up to 500,000 Euro, a fee of 935.00 Euro is already due.

The extract from the land register is then corrected, as the heir is now the new owner of the property. In contrast to the conventional entry in the land register when buying a house, the entry in the land register for an heir is free of charge, provided that this is requested within two years after the death of the testator. Afterwards, the sale of the house can begin.

Selling an inherited house with several heirs

It is not unusual for a property to pass into the possession of several heirs. This is the case when several children inherit the house. This does not prevent the sale of the inherited property. The prerequisite for this is, of course, that the heirs are in agreement and all agree to the sale of the house. Verbal promises are not reliable here; instead, a clear legal situation is necessary.

Which costs are incurred when selling a house?

If the inherited house does not have to be renovated or a speculation tax is due, the costs are kept within a manageable range. Small cosmetic repairs will be due. Also proportional costs of the broker must be included. If the house is still burdened, a prepayment penalty for the mortgage is due.

Sell inherited house: Historical property

The sale of an old building or a listed property can prove to be more complicated. Often the speculation period causes heirs to suffer. If the property is sold within the period, the tax benefits that were originally granted by the status of the house are reclaimed.

In addition, the heir is obliged to preserve the property. If this does not happen, an order for maintenance can be issued by the monument protection authority. The resulting invoice will be forwarded to the heir. This results in very high costs, which the heir could have avoided.

What taxes are due on the sale of an inherited house ?

A land transfer tax is to be paid with every house sale. This is taken over by the buyer.

The inheritance tax itself is due with every inheritance, regardless of whether the house is sold or not.

It is therefore of primary importance for the heir whether an income tax is due. This is levied if the house is sold within the speculation period. The duration of the speculation period is ten years. The speculation period is not calculated from the time of inheritance, but from the time when the house was bought by the testator.

If this purchase is more than ten years ago, no taxes are due for the heir.

If the house is sold within the speculation period, the profit of the sale is taxable. This means that not the entire purchase price of the property is taxed, but only the increase in value of the house since the purchase. Thus the amount by which the proceeds of the sale are higher than the purchase price paid by the testator at that time is taxed.

You can find out the amount of this profit by deducting from the price that was sold for the property the acquisition costs, brokerage costs, notary’s fees and land transfer tax.

Whoever wants to sell an inherited house often exposes himself to a great deal of stress. It is therefore helpful to engage a competent estate agent who will take care of the sale of the house and take over all related tasks.

You are going to inherit a house? 8 tips for correct heirs of a property

You will inherit a house and are wondering what the next steps are for you? We present 8 aspects that you will have to deal with when inheriting a property.

How do I get my inheritance?

Ideally, the deceased has written a will and deposited it with a civil law notary. A will regulates (for example in the case of several children) who should inherit what. If there is no will, the legal succession applies. Spouse and children are first order heirs.

Check the estate

If an heir is accepted, this means accepting all rights, but also duties. If the inheritance is a pure monetary amount, this value is immediately determined. The situation is different with real estate. Not only does the house pass into the hands of the heir, but also any debts such as a mortgage are then accepted by the heir. This means in practice that the heir is liable for these debts with his own assets.

The heir therefore has a period of 6 weeks within which to decide whether to accept or reject the inheritance. This period begins on the day you learn of the inheritance. A glance at the land register reveals the financial situation of the estate. An estate agent is also able to determine the market value of the property.

The disclaimer of the inheritance takes place at the local court. Alternatively, the disclaimer can also be certified by a notary of your choice.

Do I need a certificate of inheritance?

The certificate of inheritance confirms the legality of the inheritance. Often the certificate of inheritance is necessary in order to receive the inheritance in the first place or to access the accounts of the deceased. The certificate of inheritance also entitles the heir to inspect the land register.

Are you the sole heir or co-heir of a community of heirs ?

In the case of a community of heirs, the inheritance does not go to a single person, but to several persons. This is the case, for example, if the testator leaves several children. The inherited house therefore belongs to all heirs. None of the co-heirs has a right to individual items of the inheritance. This means that all decisions concerning the inherited property must be made jointly by all heirs.

In a community of heirs, very different ideas about the property often clash, which can often lead to major conflicts. Many communities of heirs therefore decide together to sell the house and to divide the subsequent proceeds among themselves. This sale, in contrast to a partial auction, does not involve economic losses.

What should happen to the house?

Who will inherit or has already inherited a house, must deal in the second step with the question, what is to happen with the real estate. If the property is located in the heir’s place of residence and is also in a favorable location, it makes sense to live in the property yourself.

However, this option is not always possible. For example, if the heir already lives in his own house or the inherited house does not meet his own wishes and ideas.

The options then available to the heir are either renting the property or selling the house. Who considers letting must consider here that often numerous renovation work becomes due with the inherited house.

Which costs will come to me when I inherit a house?

The costs of inheriting a house are manageable. These are the application for the certificate of inheritance, the change in the land register and running costs.

The amount of the costs for the certificate of inheritance depends on the assets that are inherited. If the value of the inherited house is approximately 500,000 Euros, the costs due for the certificate of inheritance amount to approximately 935 Euros.

Running costs include, for example, incidental expenses and taxes. These can vary greatly from property to property and must be calculated individually.

Change of the entry in the land register

In the case of a normal house purchase, costs for the change of the land register entry become due. Not so if you inherit a house. In this case, you have a period of two years within which you can be registered free of charge as the owner of the property in the land register.

A certificate of inheritance is required to have the entry in the land register amended. You can obtain this from the probate court of the district court of the last place of residence under which the testator was registered.

Alternatively, a notarized will can be presented at the land registry. However, a simple will is not sufficient.

Calculate the inheritance tax

Who will inherit a house should calculate the amount of the inheritance tax as soon as possible. The law grants the heir a high tax allowance. For spouses in inheritance tax class I this is 500,000 euros. Children and grandchildren benefit from a tax allowance of 400,000 Euro.

Tax allowance:

Spouses in inheritance tax class I = 500,000 Euro

Children and grandchildren = 400.000 Euro

An inheritance tax is due if the remaining estate, after all liabilities have been calculated and deducted, is above the tax-free amount.

In inheritance tax class I, 7% inheritance tax is due after deduction of the tax-free amounts for a discount of up to 75,000 euros.

For a discount of up to 300,0000 euros, 11% inheritance tax is due.
You will inherit a house and would like to sell it? We are happy to assist you and advise you. Please contact us by telephone so that we can take care of your case.

Increase in value through conversion ?

An old property can be put to new use by a house conversion. Small rooms can be merged. Alternatively new rooms can be created. By extending the attic or the basement even new square meters can be gained. This opens up many possibilities for the current residents of the house, but can sometimes also be useful if you want to sell your house. Especially for old buildings with small rooms, a conversion can work wonders and attract more buyers. However, conversions involve a lot of effort and a high financial outlay. You should therefore only use it to increase the value of your property if your chances on the real estate market improve noticeably as a result.

• Selling a house and increasing its value: house renovation