1) What is my house worth? - Determining the sales price
If you are a private home seller with no reliable information or data about your home that can be accessed and no professional expertise or market knowledge yourself, you will need to look for other avenues.
Tips: You can research on the internet to find out what comparable properties in the region are being offered for. Do you think your property is better or worse in comparison? Using this method, you may be able to find at least an approximate market price for your home. Of course you can also contact us directly, we will be happy to assist you with our many years of experience.
If you have taken over your house second-hand, the former purchase price plus the investments you have made - for example for renovations - will help to determine the price. However, the current market situation is much more decisive. This is because it ultimately determines what market price can actually be achieved.
Our experience: Setting a sales price that is too high in the hope of being able to achieve this price or having room for negotiation is generally not recommended. It is better to set a lower price and only engage in minimal price negotiations.
Recommended alternative: You can also commission an expert to professionally determine the value of your home. This way, you have something in black and white to present to prospective buyers that meets objective criteria.
An experienced estate agent can, of course, give you an estimate of a possible sale price even without an expert opinion.
2) Define prospective buyers - Who are the potential buyers?
It's worth thinking about potential buyers in advance. Who are the potential property buyers and how can you best reach them? If you have a rough idea of who might be interested in buying your home, it will be easier for you to develop a targeted strategy for this clientele later on in the sales process. If you know and have defined your target group, you will be able to address potential buyers with the information that real estate buyers are primarily interested in. This will also determine your route to the buyer: you decide whether you want to advertise online, place newspaper ads or put a sales sign on the property or in the window. In addition, you can be more targeted in the wording of your advertisement text, in the design of the exposé and in the preparation or furnishing of the home if you have defined for yourself who your home should be of interest to.
3) When is the best time to sell a property? - Influencing factors
When deciding whether to sell your property immediately or wait another six months, there are two aspects to consider in particular: The early repayment penalty and the speculation tax.
Early repayment penalty:
Long-term fixed interest rates are common for real estate financing in Germany, in most cases ten years. If the loan agreement is terminated within this period, the bank must be paid a prepayment penalty. If you want to sell your home, the bank must release you from your contract early. However, the early repayment penalty is then payable for the lost interest. This offsets the financial loss for the bank. You should therefore first check whether you can get out of the contract without an early repayment penalty. If this is not an option, you can either use a free online calculator to obtain an initial estimate or, if necessary, request a calculation directly from your bank.
How high can the early repayment penalty be?
The amount of the early repayment penalty is not regulated by law. However, there are rulings on what can and cannot be done. A loan can be terminated after ten years without a prepayment penalty. If the bank itself terminates the loan, it is of course not allowed to charge an early repayment fee. The maximum compensation has now been set by the EU: For a residual term of more than 12 months, the compensation may not exceed 1 percent of the residual debt. For a residual term of less than 12 months, a maximum of 0.5 percent of the residual debt.
When do I not have to pay an early repayment penalty?
a) You have the option of exchanging your property. In this case, the current property is exchanged for another property of equal or higher value. The current loan agreement remains in place.
b) There is also the possibility that the real estate buyer takes over the loan. This can have financial advantages for both sides: The buyer can save by running the construction financing with a more favorable interest rate than he would get today. On the other hand, you would of course not have to pay the early repayment penalty.
Speculation tax:
If you have bought a house or apartment, rent it out and then sell it again after less than ten years, speculation tax is payable in Germany.
Definition: Speculation tax is payable on profits made from the transfer of houses, land and securities in a short period of time. The amount of speculation tax for the sale of real estate is calculated according to the individual tax rate. In contrast to the flat-rate withholding tax, it can therefore be more than 25 percent.
When do I not have to pay speculation tax?
a) If you have bought a property for your own use and have lived in it yourself for two years, you can sell it after three years without having to pay speculation tax.
b) If you buy a property, rent it out and only sell it again after the ten years mentioned above have expired, you do not have to pay speculation tax.
c) If you have rented out your property and then lived in it yourself for at least three years before selling it, you also do not have to pay speculation tax.
4) Private sale or with an estate agent - who will sell my property?
Should I get professional help or can I sell the property myself without an estate agent?
There are many advantages to having a broker at your side:
1) Saving time and organization
Selling a property is very time-consuming at every stage. From valuation, procurement of documents, preparation of an exposé, organization/conducting viewings (experience has shown that around 30 to 40 viewings should be scheduled), through to checking the purchase contract and subsequent handover. An estate agent takes most of this time and effort off your hands.
2) Professional support and risk minimization
Selling a property is a large and complicated project for many owners. It already begins in the preparation phase, in which an owner is confronted with many questions. Which documents are required for the property sale, whether the property is better sold furnished or unfurnished or whether refurbishment is necessary. An estate agent answers all questions professionally and knows how to avoid typical mistakes.
3) Real estate valuation close to the market
The in-depth expertise of a professional estate agent ensures good proximity to the market. They know what price range the property is in and what pricing strategy can be used to achieve the best price. This way, you won't sell your property for less than its market value.
4) Existing customer base - faster sale
An estate agent already has a certain customer base and knows who might be interested in the property for sale. This gives them the opportunity to either draw on this customer base or to market the property in a different environment and thus sell it more quickly. KBC Real Estate, for example, works with numerous Chinese companies and organizations that mainly serve Chinese investors in China. This gives us access to a large customer base and a targeted environment that would otherwise be difficult to access.
5) Neutrality and trust
Selling a property through an estate agent appears more objective and professional. With their real estate expertise and distance to the property for sale, an estate agent is more likely to be able to negotiate the sale price and present their arguments to the prospective buyer in a credible manner.
6) Advice and preparation
With sound specialist knowledge, an estate agent immediately recognizes important aspects, e.g. necessary renovation work or the unique selling points of a property. A realistic assessment of the market value is thus directly possible, as a professional eye is more likely to notice the advantages and disadvantages of a property than a layman.
Selling the property yourself has advantages:
1) Savings on broker commission
The estate agent's commission is the main reason why many owners forego the benefits of an estate agent and try to sell themselves. This is especially true for owners who have a basic knowledge of real estate, know the process and have already gained experience in selling real estate.
2) Self-determination and flexibility
Selling without an estate agent means more flexibility for many owners. This is because the owner alone can decide when and at what price they want to sell. If the sale fails, the seller still has the option of withdrawing.
5) Right of first refusal when selling a property - what should sellers know?
Throughout the entire process of selling a property, there are usually several potential buyers who are preferred or considered by you as the seller. As the seller, you should therefore have clarified whether a buyer is entitled to a right of first refusal for the property or who has priority.
What is the right of first refusal in rem?
This pre-emptive right only applies to in rem security through the land register entry and only to land. According to Section 1098 of the German Civil Code (BGB), the property is encumbered to the effect that the party entitled to pre-emption, i.e. the party in whose favor the encumbrance is made, is entitled to pre-emption vis-à-vis the owner and the first purchaser. The right of first refusal in rem is entered in the land register and thus serves as a priority notice for the interested party. The right thus prevents the transfer of the property to the first purchaser until the person entitled to pre-emption explicitly waives their pre-emption right.
What is the statutory (public law) right of first refusal?
- For tenants: According to § 577 BGB, tenants have a right of first refusal for their apartment if it is to be converted into a condominium and sold to a first-time buyer.
- For heirs: According to § 2034 BGB, co-heirs have a right of first refusal if another co-heir decides to sell his or her share of the property.
Special case? Real estate sale community of heirs supplement???
If the inheritance share of a co-heir is sold by him or her to a third party, a statutory right of first refusal applies to the other co-heirs. The statutory right of first refusal only applies to the sale. This means that if the co-heir gives away his share, all other co-heirs must accept this. All co-heirs of the community of heirs are jointly entitled to the right of first refusal. If a co-heir has already sold or given away their share of the estate, they are no longer part of the community. Only the other co-heirs are entitled to the right of first refusal if a co-heir wishes to waive their right of first refusal.
- For local authorities and municipalities: Section 24 of the German Building Code (BauGB) grants municipalities a right of first refusal in certain cases to secure land-use planning.
- In addition, pre-emption rights are laid down in the Reich Settlement Act, in any monument protection laws, railroad laws and others. The owner can establish a contractual right of first refusal with a person of his choice at any time for no particular reason, but this does not affect any statutory right of first refusal.
Why should the owner observe the right of first refusal when selling a property?
If an owner wishes to sell their property, they must disclose the purchase agreement and inform the pre-emptor of the planned sale and their pre-emptive right.
The person entitled to pre-emption must then be given two months to make a decision. The entitled party can then decide whether they wish to exercise their right.
According to a ruling by the Federal Court of Justice in 2015, tenants are entitled to compensation if they are not informed of their rights in writing. The amount is calculated on the basis of the tenant's loss of profit, which is the difference between the market value of the property and the actual negotiated sale price.
Even if tenants were unable to assert their rights in advance and the property can no longer be transferred to the tenant at a later date, tenants are entitled to compensation.
6) Documents when selling real estate - What is necessary and must be observed?
In order to properly prepare the sale of a property, it is important to gather a number of documents. Below is an overview of who provides the necessary information:
Even if tenants were unable to assert their rights in advance and the property can no longer be transferred to the tenant at a later date, tenants are entitled to compensation.
6) Documents when selling real estate - What is necessary and must be observed?
In order to properly prepare the sale of a property, it is important to gather a number of documents. Below is an overview of who provides the necessary information:
7) Energy performance certificate when selling a house - What is an energy performance certificate?
Basically, if you want to sell an apartment or house, you need an energy performance certificate. Only listed buildings and small buildings with a usable area of up to 50 square meters are exempt from the obligation to obtain a certificate. In general, however, it is always advisable - regardless of whether you are interested in a property or want to sell one - to take a close look at its energy status. After all, this information ultimately helps you to assess the costs for heating and hot water. And the so-called energy performance certificate is the right tool for this, as it provides information on the energy efficiency of each building. It is important to know that there are two types: the consumption certificate and the demand certificate.
Definition: In accordance with the current Energy Saving Ordinance, the energy performance certificate contains information on the building and its heating as well as the energy parameters of the property - in short: it assesses the energy status of a building.
The document or a copy of it must be presented to interested parties at the latest when viewing a property and handed over after the purchase has been completed. It provides an orientation aid for the energy modernization of a building: it systematically reveals the energy deficiencies of a house and at the same time shows which measures can be taken to improve its energy balance. It is valid for 10 years. The energy performance certificate was introduced in Germany in 2009.
Who can issue an energy performance certificate?
They must be people who have a specific qualification. First and foremost, engineers, architects, physicists or craftsmen who have undergone appropriate further training come into consideration. However, there is no complete list of all authorized persons. The German Energy Agency offers a very reliable list of experts.
Consumption certificate: The consumption certificate is based on the energy consumption values of the past years, which, however, depend heavily on the behavior of the residents.
Demand certificate: The demand certificate, on the other hand, calculates the energy requirement of a house independently of user behavior by having an energy consultant assess the condition of the building fabric and the heating system in detail on site.
As a rule, the owner can choose which one he prefers. However, there are exceptions: For unrenovated buildings with up to four apartments and a building application submitted before November 1, 1977, the requirement certificate is mandatory. Also, only the requirement certificate is possible if no consumption data is available for the building.
8) Selling real estate - what are the costs?
Anyone selling a property has a great interest in keeping an eye on the costs incurred at all times. Below we provide a rough overview of the estimated costs for sellers when selling a house/flat.
9) Right of consent - What is an administrator's consent when selling an apartment?
In principle, a homeowners' association is indissoluble. In reality, however, this principle can rarely be implemented. For this reason, it is often agreed that an owner must inform the property management company and obtain its consent when selling their apartment. However, if this is not a mandatory requirement according to the purchase contracts, this procedure would still be advantageous for a trusting cooperation. After all, obtaining the consent of the property management company contributes significantly to a harmonious living environment.
10) Selling quickly and successfully - How do I add value to my property?
What is home staging?
Home staging is the professional adaptation or transformation of individual rooms in an apartment or even the entire property to promote sales. The living spaces are optimally staged, giving you the opportunity to sell your property at the best possible price in the shortest possible time. This adaptation includes the targeted use of furniture, color, light, wall and floor design. Buildings that are prepared for real estate sales with home staging are also called sets in reference to the creation of illusions in the film industry.
Home staging - selling your house or apartment at the best price? As the owner, you are of course free to decide whether or not you want a decoration service for your property before selling it. Ultimately, the aim must be to recognize the maximum potential of a property and thus get the best out of it. Home staging can increase the selling price by up to 15 percent. The sales process is shortened by up to 50 percent. The interest in your property increases enormously.
Home staging is a service that naturally costs money. There is a lot of work and changes that need to be made, and depending on the duration of the sales process, these may need to be kept for longer.This includes conception, renting the furniture for 3 months, for example, delivery and removal, basic cleaning, gardening, etc.In this sector, a percentage offer is usually made on the sales price, usually between 1 - 3 %, depending on the type and scope of the measures.A sales price of €200,000 and 2% would therefore incur home staging costs of €4000. If a higher sales price is achieved through the home staging service, this investment is of course refinanced and can be a very good alternative to a more cost-intensive renovation.
However, you must be aware that potential property buyers are not looking for the individual preferences of the previous owner, but want to fulfill their own dream home. Personal frills, vacant rooms or blemishes often drag out the sales process unnecessarily and can, of course, have a negative impact on the sales price.
When does home staging make sense?
- For vacant new builds or renovation projects
- For older existing properties or properties in need of renovation
- For properties in the luxury segment (high expectations of the property)
- For properties in a poor location and not in good condition, the investment is not always worthwhile, as home staging is often more expensive than the profit to be made on the sale.
KulturBrückeChina Immobilien works with professional home stagers who can offer you good conditions. In addition, we give our customers the assurance that we will cover half of the costs in the event of unsuccessful transactions.
