Selling an apartment building: Step by step

Let’s start with the most frequently asked question: “What is my apartment building worth?”. Then you will learn about all 18 steps of the sale, right up to handing over the keys in Berlin.

How much is your apartment building worth?

Small apartment buildings with 3 or 4 parties or large residential properties, with or without commercial space. There are many questions to answer. If you want to sell your apartment building, one thing is important:

A well-founded, market-oriented, realistic purchase price – the so-called market value.

How to value an apartment building

The property type determines the valuation method used to determine the market value. There are three standardized valuation methods for determining the market value of properties: the comparative value method, the asset value method and the capitalized earnings value method. Property, substance, year of construction, rental agreements, tenants and potential. We pay attention to all of these aspects when valuing apartment buildings in Berlin.

As a rule, at least two of these procedures are calculated simultaneously.

• Valuate apartment building
• Typical evaluation procedures
• Have an apartment building valued

Selling in Berlin: What to look out for?

1. Location, property prices: Buyer Target group
2. Documents: floor plans, extract from the land register, tenant lists
3. Good contacts or a good broker

Location, property prices: Buyer Target group

Berlin is special compared to other small German towns, cities and large cities. Berlin is extremelysought-after (A-location), not only by German buyers, but also abroad. Property prices are therefore so high that the expected return is rarely positive. This makes the investor target group more special.

You need to reach people who focus on long-term investments and do not need immediate cash flow.

This is why over 70% of apartment buildings in Berlin are sold with estate agents. Targeted marketing on-market and off-market, communication, credit checks, preliminary talks, documents, viewings, negotiations.

So be prepared, you are not selling a condominium with hundreds of prospective buyers, you have to address the right target group.

Documents: Floor plans, land register excerpt, tenant lists, etc.

Before the sales phase begins, you need all the relevant documents for selling your property. To cut a long story short, these are the documents you will need when selling an apartment building in Berlin:

1. Land register extract
2. Parcel map
3. Building plans and building permits
4. Refurbishment status / refurbishment backlog
5. Rental agreements
6. Tenant list
7. Operating cost statements
8. Energy certificate
9. Status report or expert opinion

Good contacts or a good broker

This brings us back to the right contacts. Apartment buildings in Berlin are usually not under 2 million euros, which requires special contacts with sufficient creditworthiness. This is precisely why over 70% of apartment buildings in Berlin are sold with estate agents.

Ultimately, it is always a personal question whether to sell, with or without an estate agent.

Anyone selling with an estate agent does not want to invest time in lengthy research, communication and negotiations. But it’s also about the selling price. If you only talk to 3 or 4 people yourself, you will be lucky to get 1 offer. Professionals use their contacts and talk to many potential buyers in order to get the best, highest offer that can be achieved in the current market situation.

Here are a few more details.

Taxes when selling in Berlin: What will you have to pay?

A very quick look at taxes when selling an apartment building in Berlin:

1. Speculation tax: sell tax-free
2. 3 objects rule in Berlin
3. Asset & share deals: only 1.54% tax

Speculation tax: selling tax-free?

The speculation period explained more quickly:

• (Exclusively owner-occupied = 3 years)
• Rented = 10 years

If you sell within the speculation period, you must – simply put – pay tax on the profits as normal, just like income from work, regardless of whether you are employed or self-employed. If you want to do a quick calculation, use my free speculation tax calculator. Once the period has expired, the sale is tax-free.

There is also the 3-object rule and, of interest to you, the difference between an asset deal and a share deal. Read more here:

• Selling an apartment building: Taxes

Real estate & tax coaching

Real estate & tax coaching from experts and investors. I am happy to bring you together with the best:

• Real estate coaching
• Real estate tax coaching
• Contact us

Here you can find more for:

• Real estate beginners

Selling an apartment building in Düsseldorf: step by step

Let’s start with the basic question: How much is your apartment building in Düsseldorf actually worth? Find out all the steps of the sales process, from the valuation to handing over the keys.

Determine the value of your apartment building

The value of your property depends on various factors, including the location, the size of the apartments and the condition of the building. A realistic sales price is crucial for a successful sale.

How to value an apartment building

The valuation of an apartment building is based on specific methods such as the comparative value method, the asset value method and the income capitalization method. A combination of these methods provides a realistic market value. The principle is the same for all districts, whether Stadtmitte, Pempelfort, Derendorf, Golzheim, Oberkassel, Unterbilk, Friedrichstadt, Bilk, Carlstadt or Flingern-Nord.

At least two of these methods are usually used to determine an exact value.

• Valuate apartment building
• Typical evaluation procedures
• Free evaluation by experts

Selling in Düsseldorf: What to look out for?

When selling your apartment building in Düsseldorf, you should consider a few important aspects:

1. Location and property prices: The target group of buyers depends heavily on the location and current property prices.
2. Documents: Make sure that you have prepared all relevant documents such as floor plans, land register excerpts and tenant lists.
3. Good contacts or an estate agent: An experienced estate agent can help you to organize the sales process efficiently and to approach the right buyers.

Location and property prices: The buyer target group in Düsseldorf

Düsseldorf is an attractive real estate market with various districts and a high demand for residential space(A-location). The target group of potential buyers is looking for long-term investments and is prepared to pay corresponding prices.

You need to reach people who focus on long-term investments and do not need immediate cash flow.

Documents: Floor plans, land register excerpt, tenant lists, etc.

Before you start the sales process, make sure you have all the necessary documents for the property sale ready. This includes, among other things:

1. Land register extract
2. Parcel map
3. Building plans and building permits
4. Refurbishment status
5. Tenancy agreements and tenant list
6. Operating cost statements
7. Energy certificate
8. Status report or expert opinion

Good contacts or a good broker

As apartment buildings in Düsseldorf often fetch high prices, it is advisable to consult an experienced estate agent. An estate agent has the necessary contacts and can help you to approach the right buyers and achieve the best possible price.

Ultimately, it is always a personal question as to whether you want to sell with or without an estate agent.

Taxes when selling in Düsseldorf: What will you have to pay?

A quick look at the tax aspects of selling your apartment building in Düsseldorf:

1. Speculation tax: Take into account the speculation period for tax-free sales.
2. 3-object rule in Düsseldorf.
3. Differences between asset deals and share deals: effects on taxation.

Speculation tax: selling tax-free?

The speculation period is generally 10 years for rented properties. If you sell within this period, you must pay tax on the profits. After the period has expired, the sale is tax-free.

Further details on the 3-property rule and asset deals vs. share deals can be found in our article here.

Real estate & tax coaching

Do you need further support with the sale of your apartment building in Düsseldorf? We offer real estate and tax coaching by experts and investors. Contact us for more information:

• Real estate coaching
• Real estate tax coaching
• Contact us

Also discover our resources for real estate beginners:

• Real estate beginners

Berlin Downtown: Exclusive properties & Luxury

Berlin offers many attractive districts, for example Friedrichshain, Kreuzberg, Prenzlauer Berg, Schöneberg and of course Berlin central. But also districts like Neukölln are attracting more and more capital and investors. What are the advantages of Berlin? Living in one of the iconic world’s metropolises with the best opportunities for one’s own career but also education through good universities, whether for one’s own children or junior staff for entrepreneurs. Those who live here can expect a first-class location. High-quality equipment in bathroom, kitchen, bedroom and living room. Here you will find your dream property.

Realtor: Stephan M. Czaja

Phone: +49 30 398 204 207

E-Mail: office@lukinski.com

An apartment in Berlin as a capital investment? Especially in times of low interest rates it is worthwhile investing in a good property. From 50-120 sqm condominiums to city villas with up to 2,100 sqm of land. We track down for you the properties that offer the greatest return and the greatest possible luxury and comfort.

Bundestag, Friedrichstraße, Prenzlauer Berg & Co.

The Friedrichstrasse is one of the most attractive areas in Berlin. Not only do high-ranking politicians and ministers live here, but also big names from business, sports and the media are at home here. This makes the street but also the area very interesting for Berliners and new citizens.

New! Invest in Berlin

Our new investor brochure gives you a small, first overview of the Berlin real estate market in our office. Purchase prices for condominiums, houses and tips for neighborhoods, from evergreens to up-and-coming neighborhoods, where the returns on the properties are attractive. Read more here:

• Invest in Berlin

The big highlight of the capital is of course the Bundestag. A modern, impressive building in the centre of Berlin.

The infrastructure is also excellent. For example, Berlin’s main train station is very centrally located and can be reached quickly, whether by underground or taxi. Berlin also has fast connections to Ostbahnhof, Westbahnhof and central stations such as Gesundbrunnen.

City castle – a popular attraction, also for the first visitors in their new homes.

City map

Home visit? Weather Forecast for Berlin

Berlin’s temperatures today:

Forecast: Today / 3 days

Berlin from Above: Skyline

Buy a Condominium

Example Real Estate Berlin: Modern Constructions

Attractive housing units are available in many parts of Berlin. Especially minimalist, modern construction is currently en vogue.

We place particular emphasis on daylight and open living spaces as seen here in an exemplary bedroom ambience.

Modern concrete construction is often an element that runs through the entire apartment. The simple yet exclusive style is an attractive feature for many buyers.

We also pay attention to open design in living rooms. For singles but also families, this offers the most flexible possibilities of using their own rooms.

Empty apartment or fully furnished – what would you prefer?

Apartment at the Bundestag

Politicians in Berlin in particular need proximity to the Bundestag and the various ministries in the vicinity. Attractive apartments can be found here as well, but at slightly higher rents than you are used to in Berlin.

Architecture at the Bundestag:

Attractive living for rent or for purchase in a condominium.

Investment: Tips and Explanation

More tips and recommendations? Is real estate worthwhile as a capital investment? What taxes are incurred and are there any tips on how to save taxes? In FIV Magazine we provide answers to many questions on the subject of capital investment. Not only real estate, but also precious metals, art and equity funds are in focus. After all, a good investment portfolio always contains a mix of several elements.

My column in FIV Magazine on the subject of capital investment.

Luxury Realtor: Contacts

My team and I support you in your search for real estate in Berlin. No matter whether as capital investment, for rent or for own use. With good contacts and recommendations, we will find the most interesting investment properties in Berlin central for you. More questions? Call us or write us free of charge:

Realtor: Stephan M. Czaja

Phone: +49 30 398 204 207

E-Mail: office@lukinski.com

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