Certification for market value assessment of real estate

In addition to the primary activity in the brokerage of real estate, many real estate agents offer, for example, the market value of real estate. In order to provide this service and professionally determine the asking price for your home or condominium, a lot of know-how and expertise is required. When looking for a real estate agent, you can ask for a certificate and find out whether your favorite agent has undergone further training in the valuation of real estate and knows all the important factors in the determination of the asset value and the market value.

Obligations of brokers

Every real estate agent is obliged to keep all proofs of participation in further training and to show these when required. Originally, the certificate of competence was intended to make it easier to distinguish between serious and dubious real estate agents. However, as an owner and potential client, you can also obtain this knowledge by referring to an experienced estate agent, viewing all evidence of further training on request and checking whether your appointed estate agent has a certificate of valuation before carrying out a property valuation.

Broker contract: tips and help

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised to use the comprehensive services of an estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

Tasks of a broker

Basically, a real estate agent fulfils all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, advertises your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but unique task, answering customer enquiries is part of the daily business of an estate agent.

• Here you can find more information about the tasks of a broker.

Commission for the broker – The most important regulations

More than 80 percent of all properties for sale or rent are brokered. This means that the owner commissions a real estate agent to advertise the offer and to carry out all tasks up to the conclusion of the contract on his behalf. Professional brokerage is a service that is agreed between the client and the real estate agent. After the service has been rendered, a commission, the so-called brokerage fee, is due. Who pays the commission depends on the type of commission and the reason for the commission. If you sell your property through an estate agent, the buyer usually pays. In the case of lettings, the buyer principle has applied since 2015, so that the invoice recipient and commission payer is identical to the person who has commissioned a brokerage service.

• Here you can find more information about the broker commission.

Specialist lawyer for real estate: house, condominium and land

Since the field of real estate law is very extensive, it is considered a separate specialty. Lawyers can further their education within this field and acquire explicit subject-related knowledge. Such specialist lawyers are particularly popular in legal disputes involving specific regulations from the particular field.

Definition – What does real estate law mean?

Real estate law can be defined as all legal aspects relating to real estate. Real estate law, however, very much encroaches on the most diverse areas of law, which is why the term real estate law is not used by law.

The legal field of real estate law is composed of three different areas. First of all, there is the area of land law. This regulates the ownership of land. This includes the purchase, sale and management of land and everything on it or under it. The next relevant area is the heritable building right. This describes the possibility of buying a property without purchasing the associated land. The buyer does not have to pay for the land, but only pays the ground rent. In most cases, such a ground lease is concluded for 99 years and an extension is possible. However, the period can be agreed individually between the two parties. The third relevant area is residential property law, the last sub-area of real estate law. This law regulates the ownership of an apartment. Ownership of an apartment obliges membership in the condominium owners’ association. The community rules are the framework for the conduct of all residents and construction projects must be agreed upon and decided upon jointly by all. The declaration of division of the condominium owners’ association regulates the respective ownership rights. Before buying a condominium, it should be looked through with an expert in the field to know its claims.

• Land law – ownership of land
• Heritable building right – Separate ownership of a property
• Residential property law – ownership of an apartment

Overview of the activities of a real estate lawyer

If you want to hire a specialist lawyer as an expert for your own legal advice, you first need to know which areas of law are covered by the respective law firm. Therefore, the first big question is: What does a lawyer with a focus on land and real estate law do?

• Review of experts for land and real estate contracts
• Participation and representation in the conclusion of contracts (before, during and after)
• In the case of project development, contract management can be taken over on request
• The handling of purchase price and warranty claims
• Extensive control of warranty and limitation periods in real estate transactions
• Due Diligence Reviews
• Authority Representation
• Examination and clarification of neighbouring conditions
• Conducting independent evidence proceedings and litigation

Recommendation for specialist lawyers in Germany?

Other good recommendations.

• Hamburg
• Munich
• Cologne

Book tips real estate law – from BGB to expert tip

Various books of law, such as the German Civil Code (BGB), the Residential Mediation Act (Wohnungsvermittlungsgesetz), the Land Register Regulations (Grundbuchordnung), the Heritable Building Rights Act (Erbbaurechtsgesetz) or the Real Estate Agents and Property Developers Ordinance (Makler- und Bauträgerverordnung) deal with real estate law. In this book, various aspects of real estate law are dealt with.

Real estate disputes: Rising legal cases

Based on the figures of the Federal Statistical Office, one can see very well that lawyers are currently booming. Especially since 2014, the number of cases has been increasing and thus, of course, the costs for legal advice.

Real estate lawyer in Berlin: Top 13 recommendations

Top 13 recommendations for the best real estate attorneys near you!

Steffen Hennings Attorney for real estate law

Rating: 4.4 / 5.0 (11 ratings)

Schlüterstraße 12, 10625 Berlin

• Phone: 030 8931914
• Website: rechtsanwalt-hennings.de

Offermann Attorneys at Law

Rating: 4.4 / 5.0 (19 ratings)

Wilmersdorfer Str. 94, 10629 Berlin

• Phone: 030 88717981
• Website: kanzlei-offermann.de

Liebert & Röth law firm Building law Real estate law Tenancy law WEG law

Rating: 4.3 / 5.0 (14 ratings)

Eisenacher Str. 2, 10777 Berlin

• Phone: 030 20615760
• Website: liebert-roeth.de

Pirminpartners Attorneys at Law Notary Specialized in Construction Law Architectural Law Real Estate Law

Rating: 5.0 / 5.0 (2 Reviews)

Rosenthaler Str. 32, 10178 Berlin

• Phone: 030 740744770
• Website: pirminpartners.com

Jakoby Attorneys at Law Notary

Rating: 4.0 / 5.0 (4 Reviews)

Schlüterstraße 37, 10629 Berlin

• Phone: 030 8803200
• Website: jakobyrechtsanwaelte.de

Law firm for real estate law Carsten Pagel Berlin Köpenick

Rating: 4.3 / 5.0 (4 Reviews)

Bölschestrasse 114, 12587 Berlin

• Phone: 030 6719482
• Website: kanzlei-pagel.de

Law firm real estate law Berlin

Rating: 5.0 / 5.0 (3 Reviews)

Tempelhofer Ufer 11, 10963 Berlin

• Phone: 030 856137720
• Website: rechtsanwalt-immobilienrecht.com

Bunzel Rechtsanwälte | Administrative Law, Labour Law, Traffic Law and Real Estate Law Berlin

Rating: 4.6 / 5.0 (27 ratings)

Mommsenstraße 55, 10629 Berlin

• Phone: 030 88773618
• Website: bunzel-kollegen.de

Joerss Ulrich Lawyer for Real Estate Law

Rating: 5.0 / 5.0 (3 Reviews)

Rankestrasse 26, 10789 Berlin

• Phone: 030 88001404
• Website: joerss.com

Lawyer Frank Auerbach

Rating: 5.0 / 5.0 (2 Reviews)

Spiekermannstraße 5, 13189 Berlin

• Phone: 030 47034848
• Website: malinowski-auerbach.de

Krause Creutzburg and Partner

Rating: 4.1 / 5.0 (9 Reviews)

Knaackstraße 22, 10405 Berlin

• Phone: 030 4848820
• Website: krause-creutzburg.de

ROSE & PARTNER – Lawyers Tax Consultants

Rating: 5.0 / 5.0 (17 ratings)

Jägerstraße 59, 10117 Berlin

• Phone: 030 257617980
• Website: rosepartner.de

Lawyers Geisler and Sudhoff in Berlin

Rating: 4.3 / 5.0 (12 ratings)

Almstadtstraße 19, 10119 Berlin

• Phone: 030 4433130
• Website: geisler-sudhoff.de

Recommendation for specialist lawyers in Germany?

Other good recommendations.

• Hamburg
• Munich
• Cologne

The real estate price calculation

The market makes the prices, as can be seen in the real estate valuations. Where demand is at its highest and supply at its lowest, prices rise and the purchase of houses or apartments becomes rapidly more expensive. Whether a purchase is worthwhile depends on the individual case. The fact is that real estate property is always a good retirement provision and a stable value investment in tangible assets. Therefore, both owner-occupiers and capital investors are well advised to invest in property. Because what must not be overlooked is that rental prices are rising just as rapidly and there is no end in sight. Affordable living space is hard to find. For this reason alone, the purchase of a house or an apartment is worth considering, despite rising real estate prices.

• Do you have a condominium? Read more about apartment valuation here.

Professional valuation must be commissioned

As a rule, the owner commissions a market value appraisal. If you are selling privately and want to save the costs of the valuation, you should by no means react negatively to the market value appraisal in the case of enquiries from interested parties. As a prospective buyer you can ask for the calculation basis of the property price and commission a valuation with the knowledge of the owner. If you suspect an ideal, emotionally determined offer price, this measure can prove to be a cost-reducing strategy.

Determination of market value by experts

As an owner, you should bear in mind that a buyer is making the biggest purchase of their life and therefore wants certainty in terms of a neutral property price. If a property is sold through a real estate agency, in most cases a market value assessment has been carried out. This means that the property price reflects the current factors and was determined on the basis of the equipment, property size and location, the infrastructural integration and on the basis of a detailed market analysis. If you base your property prices on a market value assessment, the buyer is less likely to doubt the property price and more likely to make the decision to buy without a longer term negotiation. If you have dispensed with the valuation, you may well do so retrospectively.

Influence on owner-occupiers and capital investors

As an owner-occupier of a property, you have to weigh up whether the price plus the ancillary purchase costs and interest on the loan is adequate for you. To determine this quotient, take your rent payments over the past 20 years (with a repayment period of 20 years) as a basis and compare the two values. If you have paid more rent or rent that is identical to the purchase price of the property, buying is the best decision for you. If your rent payments are significantly less than the property price, continuing to live in rented accommodation may prove to be a better solution.

Capital investors use a different method of calculation. Here, the profitability of the purchase can be determined by whether the management and maintenance costs are lower than the existing or possible rental income after re-letting. If there is no difference with a prospect of return, the investment is not a good capital investment.

If you are buying a property as a family residence, make sure first and foremost that you repay the financing with a fixed interest rate and are debt-free before retirement. The selection criteria are based on the aspects that you personally consider essential. Set yourself a maximum budget that fits your income and the monthly repayment amount of the financing. Fact is: due to the very high real estate prices, especially in metropolitan areas, the amount of financing for the purchase increases. It is therefore all the more important that you calculate the purchase price of the property including the annual percentage rate of charge and bear in mind when repaying that the bank’s claim is higher than the loan amount.

Selling real estate – How to determine the right price

Are real estate prices negotiable?

The asking price of a property is not a static figure. Even if it has been determined on the basis of a market value assessment, there is a certain amount of room for negotiation in most cases. As a potential buyer, you should therefore ask whether and to what extent a price reduction is possible. Negotiations are more successful with older properties, as you will be in a good negotiating position when you inspect the property and discover any minor defects. However, you should also bear in mind that the owner or the real estate agent acting on behalf of the owner does not have to negotiate. Property prices have risen very sharply in recent years. If you are interested in a property in locations with immense demand, your position in price negotiations is less good.

Skill and tactical strategies in negotiation

If, on the other hand, you decide to buy a property in a rural area, there is definitely room for manoeuvre that you can use to your advantage with a little skill and tactical strategies. When you enter into a negotiation, proceed with caution and empathy. Especially in the case of properties from private sellers, the asking price is not infrequently based on idealistic values and memories of pleasant moments spent in the property. In most cases, a too brash and demanding approach has the opposite effect and can lead to the owner not wanting to sell to you at all. As an owner as well as a potential buyer, you should know that negotiations are definitely part of the business. With expertise and tact, negotiating the price of a property increases the buyer’s interest and the seller’s comfort level. If you don’t like to negotiate yourself and feel uncomfortable in such discussions, you would be well advised to use a real estate agent. Negotiation skills and expertise in market prices are an advantage if you are not acting privately as a prospective buyer, but are having the property search done.

Will real estate prices fall anytime soon?

Some industry experts assume that property prices will fall within the next three to five years. This is conjecture, as there is no real reason to make a firm assumption. Currently, demand is rising while supply is tightening. This fact alone precludes you from paying less high property prices in the foreseeable future. An increase in the prime rate and the associated tightening of monetary policy is also neither under discussion nor in prospect.

Buying residential property and investing in real estate

If you are looking to buy a home or invest in the real estate market, don’t rely on guesswork and put off your purchase with hopes that real estate prices will drop. Remember: buying a house or purchasing your home is a way of securing your retirement and a decision you are making for yourself and your family. Real estate prices have been rising rapidly for the past few years and the trend is that the increase will continue for quite some time.

If you find your dream house or apartment that meets your criteria and convinces you at first sight, you have various options for negotiating the property price. Waiting, on the other hand, is not recommended, but ensures that your dream property finds another owner. Already two years ago, critics held that there is a real estate bubble. But the reality is different. The market is booming and the current high real estate prices are a result of increasing demand, reduced supply and the continuously growing interest in buying real estate. So if you are waiting for an opportune time, you should act now and not rely on realizing your dream at lower real estate prices in a foreseeable period of time.

Property price as a criterion for the purchase decision

Are you necessarily getting “less house for a higher property price” today? Even if many potential buyers have the feeling, this thought is not fundamentally true. Do you have a concrete idea of the real estate price and are you looking for a property that you can purchase for the sum you have budgeted?

Lukinski can assist you in your real estate search. You want to sell a house and set the right real estate price? We determine the market value and support you in your sales project!

Lukinski is your core competent real estate agency with whom you can invest properly and rely on a smooth process of your project. We are happy to advise you on “how much real estate you can afford” and the optimal amount of financing based on your basics. Give us a call and choose a strong partner who will help you with your real estate project and work for you with expertise.

Facts & Figures: Statistics on home ownership in Germany

Statistics: Residential property in Germany

How high is the ownership rate in the individual federal states? Here are the “latest” figures from the Federal Statistical Office. There has been no new survey after 2014 so far. As soon as new data is available, we will include it here! Here you can see the ownership rate in Germany in the period from 1998 to 2014 by federal state.

© Statista 2019 – Source: German Federal Statistical Office

Price per square meter for condominiums

You want to sell? Of course, as a property owner in the wider metropolitan area, you will also benefit from the rising purchase prices. Here you can see the cities with the highest prices per square metre for condominiums in a comparison of the years 2010 and 2018* (in euros per square metre).

1. Munich (Bavaria) at 8,342 euros per sqm; up from 6,737 euros per sqm in 2014; up 1,695 euros per sqm in 4 years.
2. Stuttgart (BW) at 5,925 euros per sqm; up from 4744 euros per sqm in 2014; up 1,181 euros per sqm.
3. Frankfurt am Main (Hesse) at €6,060 per sqm; up from €4,373 per sqm in 2014; up €1,687 per sqm
4. Freiburg im Breisgau (Bavaria) at 4,943 euros per sqm; up from 4,740 euros per sqm in 2014; increase of 203 euros per sqm
5. Ingolstadt (Bavaria) at €4,969 per sq m; up from €4,287 per sq m in 2014; increase of €682 per sq m.

You can find more statistics at Statista More about Hamburg: real estate Hamburg.

Your advantages: Real estate agent

✓ national customers and regular customers (direct purchase possible!)
✓ Decades of experience and a well-coordinated team
✓ 100% free valuation and analysis of your property
✓ independent of banks and online portals