Real estate company: Founding a company

Do you want to buy and rent out your first property? You have inherited a property and now want to work in real estate management, property management and other related areas yourself, or even more, you want to become a real estate investor yourself? Then the big question is, which company is the right one? What is the first step?

Basically, you have many different possibilities and options as to how you can set up your business for the future. To give you an initial overview, we have written this guide to the different types of companies for you. Here you will learn about the different options you have as a founder in the USA. Definitions, start-up tips, advantages, disadvantages and taxes. Everything you need to make a good decision.

Legal forms USA – Overview

• LLC (cf. GmbH)
• Limited partnership (cf. limited partnership)
• General partnership (cf. general partnership)
• Real Estate Limited Partnership (cf. Immobilien-KG)
• C Corporation (cf. stock corporation)
• S Corporation (cf. small stock corporation)
• Real Estate Holding (cf. Real Estate Holding)
• REIT/ Real Estate Investment Trusts (cf. real estate investment company)

Combine legal forms:

• Multiple Entities

For the sake of completeness:

• Sole Proprietorship (cf. sole proprietorship)
• Owning private real estate in the USA (cf. private real estate ownership in Germany)
• Tenancy in Common (TIC) (cf. fractional community)

Limited Liability Company (LLC)

An LLC (Limited Liability Company) is a flexible and popular legal form in the USA. It offers its owners the advantage of limited liability, similar to a corporation, but combines the tax advantages of a partnership. Profits and losses are attributed directly to the shareholders, which avoids double taxation. In addition, an LLC offers a simple structure and flexibility in administration, which makes it particularly attractive for small companies.

• LLC

LLC: My recommendation for the first 10 properties

For the first two to ten properties, an LLC (see GmbH in Germany) is best suited to minimize liability risks and at the same time take advantage of tax benefits. The LLC limits the personal liability of the owners, while profits and losses are attributed directly to the shareholders, which avoids double taxation. In comparison, a Limited Partnership (see KG) offers more flexibility in terms of passive participation, but the general partner bears full liability. A general partnership (see OHG) involves higher risks due to unlimited liability.

• More about the LLC

Limited Partnership

A limited partnership consists of at least one general partner and one limited partner. The general partner bears full liability for the company’s debts, while the limited partner is only liable to the extent of their contribution. This structure is often used in equity investment or real estate projects, as it enables a clear separation between active and passive participation. From a tax perspective, a limited partnership benefits from the fact that profits are only taxed at partner level.

• Limited Partnership

General Partnership

A general partnership is a partnership in which all partners have unlimited liability. This legal form offers flexibility and simple formation without major formalities. Profits and losses are attributed to the partners and are taxed personally by them. However, the partners’ full liability for the company’s debts entails a higher risk, which is why this form may be less suitable for certain business models.

• General Partnership

Real Estate Limited Partnership (RELP)

A real estate limited partnership (RELP) is a special form of limited partnership that is used for real estate projects. In this structure, passive investors invest as limited partners, while the general partner takes over the operational business and has unlimited liability. RELPs offer the advantage of tax transparency and are particularly suitable for large real estate investments where the parties involved want clear liability and profit relationships.

• Real Estate Limited Partnership

C Corporation

A C corporation is an independent legal entity that is separate from its owners. It offers a comprehensive limitation of liability for its shareholders. Profits are taxed at the corporate level and distributions to shareholders are subject to personal income tax, which can lead to double taxation. Nevertheless, this legal form offers advantages such as access to capital markets and the possibility of having an unlimited number of shareholders.

• C Corporation

S Corporation

The S Corporation is similar to the C Corporation, but with the difference that profits and losses are passed on directly to the shareholders, thus avoiding double taxation. However, there are restrictions on the number and type of shareholders. This legal form is often chosen by smaller companies that want to benefit from tax transparency but at the same time need the limited liability of a corporation.

• S Corporation

Real Estate Holding

A real estate holding company is a type of company that is used specifically for the ownership of real estate. This structure provides legal and tax separation between the owners and the property owners. It is ideal for investors who own and manage several properties without holding them directly in their own name. This allows liability risks to be reduced and tax advantages to be exploited.

• Real Estate Holding

REIT (Real Estate Investment Trust)

A real estate investment trust (REIT) is a special type of company that invests in real estate and is traded on the stock exchange. Investors can acquire shares and thus invest indirectly in real estate without owning real estate directly. REITs are tax-privileged, but must distribute a large part of their profits to shareholders as dividends. They are a popular option for investors looking for a liquid and diversified investment opportunity in the real estate sector.

• REIT

Multiple Entities

The combination of several company forms offers entrepreneurs the opportunity to spread risks and maximize tax advantages. For example, an LLC can be used in conjunction with a corporation to separate operational and administrative functions. This is particularly useful in the real estate industry or for more complex business models where different business areas need to be legally and fiscally separated.

• Multiple Entities

Sole Proprietorship

Sole Proprietorship, also known as a sole proprietorship, is the simplest legal form in the USA. The owner bears sole responsibility for the business, but also has unlimited liability for its debts. This form is suitable for smaller companies or freelancers who do not require a complex structure. As there is no separation between the company and the owner, taxation is levied directly on the owner’s income.

• Sole Proprietorship

Owning private real estate in the USA

Direct ownership of real estate in the USA as a private individual offers both opportunities and risks. Owners benefit from the increase in value of the property and the rental income, but must also observe the tax and legal obligations. In addition, personal ownership of real estate can lead to liability risks, which can be minimized by using a suitable legal form such as a real estate holding company or an LLC.

• Owning private real estate in the USA

Der Beitrag Legal forms USA (company / enterprise): LP, LLC, Corp., REIT & Co. – comparison, advantages and taxes erschien zuerst auf ℄ Real Estates.

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.

Der Beitrag Valuing a house: Estimate purchase Price or have it Estimated? Valuation erschien zuerst auf ℄ Real Estates.

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.

Der Beitrag Valuate apartment: calculate purchase price and sell condominium erschien zuerst auf ℄ Real Estates.

Sell real estate quickly: Uncomplicated and profitable

Selling a property successfuly as quickly as possible is harder than you think. There are many things to consider and many mistakes that can be made. So you should inform yourself about the processes from the beginning and be sure that you do everything right. Made easier, this process will only be easier for you if you have the right expertise and the right support on the subject.

• You have time? Read our guide to selling a house here

Procedure: How to sell your house

A smooth sales process is the be-all and end-all. Many different steps are necessary to sell a house profitably. For most people, it takes a lot of time to tackle them alone. An extensive specialized knowledge is needed, whose appropriation alone already takes much time.

In order to make the sale of your house as simple and above all as fast as possible, real estate experts help you with their knowledge and years of experience. The process can be fast and easy for the house owners and without having to invest a lot of time. Lay back and relax while real estate agents do the work for you.

Fast property sale: 3 frequently asked questions

We do not want to take up much of your time, so here are 3 specific questions that we are most frequently asked in consultation sessions.

How fast can you sell?

Question 1: How quickly can good real estate agents sell a property?

Every place, every condition varies the time. We can make you an offer for your property in Germany, in Hamburg, Berlin, Munich, Cologne, Düsseldorf, Frankfurt and for all other cities in the area of Germany, Austria and Switzerland.

In about 32% of our clients’ inquiries, we have a preliminary offer available the same day, within 24 hours. After closer examination and evaluation, the shortest duration is 72 hours. In addition, however, there are the usual procedures for the purchase contract and notary appointment. You will learn more about both of these in a moment.

Real estate agent with buyer pool or online portal ?

Question 2: Why should you hire a real estate agent for a quick house sale and not just sell online?

You should hire a real estate agent for quick house sales. If you want a guaranteed quick sale that is hassle-free and with no additional costs.

If you place your property on one of the usual online portals, there are no guarantees that it will actually sell – not even at your self-determined desired price.

Without a real estate agent (with contacts, off market buyer lists and investors in the background) your property could be offered on the open market for months without viewings, let alone offers.

For a quick, guaranteed cash sale, you will not get a better offer from Privat for a quick house sale – sell to professionals who want and are able to develop your property further.

In addition, we have a strict valuation process, which means that we always receive the most accurate valuation for each property.

Guaranteed fast sale ?

Question 3: How can you guarantee that I can sell my house to you quickly?

What distinguishes investor brokers from other companies is that we have our partners’ own money ready to buy your house. Our investor partners have been in the industry for over 25 years and together have hundreds of years of experience. This allows us to have a fast sales process and means that if necessary, we are able to complete a purchase in just seven days.

With an external team of legal experts and experienced professionals, the process is seamless from valuation to closing. You will be in regular, direct contact with a dedicated sales representative, so that you are always kept up to date and potential problems can be solved quickly.

Here are free guides for all common cases of selling:

• All tips: Sell a property
• Selling an apartment
• Selling a house
• Selling an apartment house
• Selling a plot of land
• Sell property: Heir
• Selling property: Divorce

Calculate property value: This is how experts proceed

What are the exact criteria for determining the value of a property and how exactly do experts proceed when preparing their expert opinion? In general, according to § 194 BauGB, the market value should reflect the price that would have been achieved in the normal business year at the time of the determination without consideration of unusual or personal circumstances. To determine this value, experts use various criteria:

Location of the properties

The location of the property includes the infrastructure of the nearby surroundings, such as transport connections, shopping facilities, but also connections to doctors or hospitals. On the other hand, trendy locations have an advantage, especially in large cities. The higher the popularity of the district, the higher the value of the property there.

Of course, it is particularly easy to sell real estate in the city centers and in the suburbs of popular urban areas.

Real estate prices: Germany comparison

Real estate prices:

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

Standard floor value

The standard land value is probably the most important criterion for determining the market value, as it is the basis for its determination. The standard land value indicates the value for one square meter of undeveloped land in the respective standard land value zones.

Old pollution on the property

Contaminated sites on the property are of course not an advantage for the property, as they have to be taken over by the new owner. Such inherited burdens are noted in the land register and have a negative influence on the expert opinion, as more costs are incurred by potential buyers.

Tip! Do you want more detailed information on the subject of land sales? Read more here: Selling land.

Energetic condition

First of all, of course, the presentation of the energy certificate is required. This states how high the energy consumption is. The higher, the worse. In addition, the quality and newness of the insulation of the outer walls and the roof. These have a decisive influence on the energy consumption and the energy costs increase enormously with poor insulation. Our tip, if time is not pressing and you need to sell quickly: renovation for added value.

Building and technical condition of a property

The second important criterion is of course the condition of the property. This includes not only the materials used, such as building materials, pipes, conduits or electrical installations, but also the age of the property and the materials. In addition, extras such as an outdoor area, carports, gardens and garages can have a positive effect on the rating and confirm a positive evaluation.

Current market situation

The price of a property is always determined by supply and demand, which is why this criterion also plays an important role for the expert. Here, sales data from comparable properties in similar locations are used and compared with the data of the property to be examined.

The degree of development of the property

The degree of development is also important for the value of the property. This means that it must be checked whether the property is connected to important networks, such as the water system, the telephone network but also the electricity. Of course it is an advantage if the property is connected to all important networks.

Free tip? Yes!

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

Exposé: Present your house & market it

The right advertisement is the be-all and end-all for the self-marketing of a property. But other aspects must also be considered. If you approach a house sale without help, you should be prepared for a lot of time and self-organization. This process can only be made easier if you have the right expertise on the subject.

Display: Formulations, the pictures and the first impression

There’s nothing worse than your ad going under in the crowd. Short, sober descriptions bore potential buyers and are not very inviting. So make sure that the title is already written in a relaxed but serious way. You should use a language that is as rich in images as possible, which arouses emotions and thus attracts attention.

Think about the title that would make you stick to yourself.

Special advantages of your real estate can be emphasized by formulations, like ‘elegant old building with stucco’ or ‘sun-flooded south terrace’, because you appear inspired and invite the real estate-looking for directly. Try to attract the buyer already with the headline, so that he clicks further on your advertisement.

Pictures: Interior, property and details

But the most important factor are probably the pictures. A buyer naturally wants to see as much of the property as possible to get an idea of whether the object could be something for him.

In order to take great pictures of your property, there are a few things you need to consider. First of all, the rooms should be tidy and clean. You should definitely take the pictures in daylight so that the rooms can be seen very well and the buyers can estimate how much daylight falls into the rooms. Your cover picture should be the most meaningful and represent the best of the apartment.

The most beautiful room, the roof terrace, the open kitchen or maybe the bay window with a view. Pictures of all rooms and if available the garden/balcony/terrace, an exterior view and above all a floor plan should not be missing. The floor plan should never be missing, as it gives potential buyers an impression of the size of the individual rooms in relation to each other and allows them to see the layout of the rooms better.

This is how a professional works with real estate photos:

Text: Detailed description and advantages

Once the potential buyer is on your ad, two additional factors can convince him or her of the property. The ad text and your pictures. With your text you should explain important key data of the property as well as object criteria. These include

• Number of rooms
• District
• Balcony
• Built-in kitchen
• Floor- but also full bath
• Fellar rooms

Describe the location of the apartment, its advantages and also name the furnishings as precisely as possible. This includes kitchen equipment, heating systems but also other objects that will remain in the property. In this connection, mention the costs for the compensation payments for existing equipment and brokerage fees. Also important is information such as rent, additional costs and the size of the apartment in square meters.

The 5 most common mistakes in selling

Most home sellers are rather inexperienced in the field and do not know where to start. They often take a few pictures and put them on a real estate portal. However, the homeowners do not know what to expect, what you have to consider and what all is in store for you. To avoid this uncertainty, the most important thing before selling a house is to inform and seek help from experts in the field.

Realtor is excluded from the outset

Of course, it is also possible to successfuly complete a real estate sale without an estate agent. So before you decide for or against an estate agent, think about what makes the most sense for you in your situation. An estate agent can save you a lot of work and time when selling a property. He also advises you in financial and marketing matters. So ask yourself the questions:

• Can I coordinate the sale alone on the fast moving, regional and targeted real estate market?

You should be aware that selling a property requires a lot of time, organization and expertise. An estate agent will receive a commission for a successful sale, but this can be recorded in an estate agent contract. In addition, the real estate agent will take care of all the work for you, such as the correct advertising of the property, arranging and conducting viewing appointments, the preparation of sales contracts and the presence at the notary appointment. Thus, you have permanently someone competent with sufficient expertise at your side, who can advise you in all questions.

Exposee gives a wrong impression

The exposé is one of the most important factors in the successful sale of your property. The exposé is the first thing a potential customer sees and should therefore make the perfect first impression. A bad exposé can ruin even the most beautiful house.

What you should definitely pay attention to are good pictures. It helps to have them taken by a photographer, but even self-made pictures can look great. Make sure that the pictures are taken in daylight and that the room is clearly visible. In addition, it should be tidy and clean so that the potential buyer immediately feels comfortable and can imagine living there.

Take pictures of all rooms and preferably also the floor plan so that the buyers can get a clear picture of the property. Pictures of the garden or special features of the house will also look good. Be honest in the text of your exposé. Do not give the customer false hopes or exaggerate, because this will only lead to disappointment at the viewing appointment.

Real estate market value is unknown to you

Every homeowner still knows how much he paid for his house and how much renovation, refurbishment etc. cost. However, it often happens that the value of the property differs from the original purchase price, as property prices are determined by supply and demand.

So before you put your property up for sale, you should know the value of this knowledge. You can have the property value estimated by an appraiser or an estate agent and thus know better what range you can move in the price. Small defects in the house can reduce the value of the property and be a reason for potential buyers to lower the purchase price. So before selling, consider whether you can have small defects repaired beforehand and thus demand a higher sales price. However, experts or real estate agents can also help you with this decision and estimate whether such an investment is worthwhile.

You are unprepared for viewing appointments

Potential buyers are faced with the decision to make a large investment or not. So they want to play it safe and be 100% sure in their decision. So that you conclude the house sale successfuly, you should give potential buyers as much security as possible.

During an inspection appointment you should be prepared for many questions of the buyers and have a good answer to all of them. Often it concerns thereby the condition of the house:

1. How old are the windows / doors?
2. When was the last time renovated and refurbished?
3. What kind of insulation is there?
4. How much are the additional costs?
5. … and and and and and

Be prepared for all these questions and inform yourself about your house in detail right from the start. Ignorance can unsettle potential buyers or be an excuse to lower the price. Also be open to surveyors and understand that your buyers only want to play it safe.
As a seller, you naturally want to sell your property as profitably as possible. However, you are faced with a buyer who is happiest to make a profit in the end.

So don’t spoil your chances of buying a house by not being willing to negotiate, but meet your buyer halfway. There is only one thing that helps in negotiations: good preparation.

You should consider from the outset within which framework you can move and what is the absolute minimum for you. You should also have good arguments to justify your selling price. This includes, for example, a good infrastructure, the location of the house or special advantages of your property. An experienced real estate agent can also help you to prepare for a successful negotiation or even support you on site.

Stubbornness can be a major hindrance and can unnecessarily prolong negotiations. Approach each other and find a price that both parties are happy with.

Legal: notary, land register and purchase contract

A house sales is a large decision with that many legal procedures, contracts and conditions accompany. As owners of house one should inform oneself first of all well about it, which comes to one and which one must consider, so that one comes out profitably from the business. For ignorant ones in the area there are many legal bases to consider and above all small Stolperfallen, which one should absolutely avoid.

Notary: Monitoring of the sales contract

The duties of a notary public are to regulate the sale of real estate as an impartial legal entity in such a way that all parties are satisfied and all possible points of dispute are avoided or settled from front to back. The notary draws up a public deed (the purchase contract) in which all necessary legal issues are regulated in a transparent and unambiguous manner.

The notary also notarizes the real estate purchase contract:

§311b of the German Civil Code (BGB) stipulates in Germany that all legal contracts concerning land, property, estate and real estate require mandatory notarization.

Another task of notaries is to ensure the protection of both buyer and seller. For the legal protection of the buyer, the notary reserves the property for the buyer in the land register as a prior notice, so that the seller cannot sell the property to someone else at short notice. For the legal protection of the seller, the notary arranges the final transfer of the property in the land register as soon as the buyer has actually paid the purchase price.

Enforceable claims

Notaries additionally provide for immediately enforceable claims. This means that the claims stipulated in notarized contracts are immediately enforceable. In order to execute the claims, it is no longer necessary to take legal action at a court, but a bailiff can be appointed immediately. This takes place, for example, in the case of non-payment of the purchase price.

In addition, a notary public explains all unclarified legal questions in a real estate sale. He must explain all legal and juridical questions to all contracting parties in such a comprehensive, understandable and sufficient way that a documentary record of the actual will of both parties is possible. You are obliged to do so by virtue of your public office.
Should a notary strive for a different cost regulation, he is thus ineffective, as this is legally prohibited. This applies to both cost reduction and cost increase.

Purchase agreement in real estate trade

How can a purchase contract be concluded? When does a purchase contract exist? And what must be included in a sales contract?

The purchase contract is the legal basis on which a house sale is built. Depending on the case, a sales contract always looks different, contains more or less regulations, depending on what the parties have agreed.

A sales contract is a complex and extensive contract, which contains many legal ambiguities and also traps for one or the other. The implementation can also take some time.

Sell fast? Sometimes it takes up to 8 weeks from the signing of the contract at the notary to the transfer of ownership in the land register.

This non-simultaneity between the transfer of the purchase price, the change of ownership and thus the change of use and encumbrance and the final change of ownership and the handover raises further legal questions in the sale of a house, which must be regulated in detail in the purchase contract.

Checklist: 14 points in the sales contract

Just to the question: What must all be included in a sales contract?

The most important points which should be regulated in every sales contract are as follows:

1. Which object of purchase is being sold ?
2. Who sells to whom?
3. What is sold with everything? (fitted kitchen, property,…)
4. How is it sold?
5. How is the payment done? (cash, bank transfer, …)
6. When is the transfer date?
7. What is the distribution of the incidental and maintenance costs?
8. How are the development costs regulated?
9. Are there possible warranty claims?
10. What is the state of the object?
11. Does the object have defects?
12. Which permits are available and which ones are missing?
13. Allocation of costs
14. Authorization of the notary’s office

Der Beitrag Sell house quickly: Procedure, legal basis and the best tips erschien zuerst auf ℄ Real Estates.