Selling a property can take a lot of time and work. A lack of experience also brings with it the risk of unexpected mistakes. As the sale of a property is also a major financial project, mistakes in this area can cause serious damage.

Throughout the sales process, the seller must pay close attention to many different aspects in order to prevent mistakes. The typical mistakes in each phase are listed and described below. You will also learn how to avoid these mistakes as far as possible.

The estate agent's commission is often the main reason why many owners want to do without an estate agent. Flexibility and self-determination are certainly two major advantages of private sales, but they are not the two decisive factors for a successful property sale. In order to achieve the optimum sales price for a property and keep the sales period as short as possible, sound specialist knowledge and industry experience play a major role. If you have the relevant knowledge in this sector and enjoy dealing intensively with all the relevant details, private sales are of course an option. A combination of personal initiative and support from an expert is also a conceivable option. However, the estate agent's commission should not be the main reason for deciding for or against an estate agent. A real estate agent not only saves you an extreme amount of time, they also have all the necessary industry knowledge and already have contacts and a corresponding customer base. These factors have a significant impact on the selling price and the selling time. The estate agent's commission is therefore not wasted money, but is refinanced by a higher sales price and the reduced time required. 

As already explained, an overestimated sales price can drag out the entire sales process. However, there is also the problem that the longer a property is on the market, the more difficult it is to generate a successful sale. This is because most prospective buyers become skeptical if a property has been on the market for a long time and is not sold. So if you miss the golden sales period, you face a potential loss in value of your property. Of course, a real estate agent can still remedy the situation, but this also makes their work more difficult.

Selling a property often involves a lot of formalities, an enormous amount of time and a great deal of responsibility. Starting with extensive preparation, through the procurement of documents, the presentation and marketing of your property to the execution of the purchase contract and finally the handover, the seller needs comprehensive support. If you decide to use a real estate agent, it is therefore crucial to choose the right one. Compare the estate agents in your region and take your time to make your decision. The estate agent will then guide you through the entire sales process and you can expect professional support. They are responsible for saving you time and hassle and should be able to minimize all possible risks.  

Your property is not sold at the right time

Before you sell your house or apartment, the question arises as to the right time to sell. First and foremost, of course, this decision depends on your individual situation. If you need to sell your property as quickly as possible, you naturally don't have time to wait for possible future scenarios. However, if you are thinking about selling for the first time and the exact timing is not really important, there are some aspects that may be relevant for the future sales value. If you sell a property at the wrong time, you may not be able to achieve the maximum possible sales price. Several factors need to be taken into account so that you can sell your property in the best possible way: Examples include the appropriate time of year, the economic situation and tax deadlines. 

The right season

Basically, the time of year has no significant influence on house/flat sales. But selling a property in winter, especially during the Christmas period, is not an optimal time. This is because at Christmas, people are preoccupied with social engagements and tend to go on vacation or spend time at home. They are usually not willing to start major projects such as buying a property during this time. The focus is simply on other things. What's more, compared to spring and summer, when the greenery and sunlight make a friendly appearance, winter tends to be gray and gloomy. This is why potential buyers tend to show less interest in the darker seasons. But even in summer, for example, the summer vacations can influence the buying behavior of prospective property buyers. On the one hand, potential buyers may have more time to consider a purchase, but on the other hand, many people have summer vacations on the agenda, which could reduce the pool of potential buyers.

The economic situation

A good economic situation and low interest rates are important prerequisites for a flourishing real estate market. In times of good economic conditions, demand is higher and potential buyers are willing to invest in real estate due to lower interest rates. Of course, it is not possible to accurately predict economic developments. However, with a little more patience, it is possible to wait for the upturn to return in a current depression, for example, in order to avoid losses on the sale price. In addition, a planned reinvestment could also be a reason to take a closer look at the economic situation. If the seller wants or needs to become a buyer himself after a successful sale, lending and interest rates suddenly play a significant role for him.

Tax deadlines

There are two aspects in particular to consider here that can directly influence the time of sale, the early repayment penalty and the speculation tax.  Not every property seller will be confronted with these two points, as there is a longer time horizon to consider. Of course, the time period in which a seller must have sold their property is also decisive here. However, if you have owned your property for less than ten years or have a loan agreement in place for the property, it is highly recommended that you take a closer look at the aspects listed above. You can save money here.

No pre-selection of prospective buyers leads to viewing tourism

If you are selling a house/flat, you will probably receive many inquiries after you have placed an advertisement on the Internet, for example. However, the wide reach of the Internet also gives a large number of people access to your offer. You must be aware that by no means all the people who respond to your offer to view your property are seriously interested in buying it. It is therefore extremely important to make the right pre-selection when there is a high demand. To avoid viewing tourism, you should only invite people to your home who are really seriously considering buying a property. As far as possible, select genuine interested parties from onlookers and fraudsters. Ask for comprehensive information and contact details from potential buyers before a viewing. Buyers who are seriously interested in your property will not refuse this request. Anyone who does not get in touch, only provides vague personal details or even wishes to remain anonymous is highly unlikely to be a genuine prospective buyer.

Going into a viewing appointment without a negotiating strategy

Good communication and negotiating skills form the basis for a successful sales pitch. Of course, the owner should also prepare accordingly for a viewing in order to be able to give appropriate answers to the questions of potential buyers. A good negotiation strategy is also based on a fair valuation and an objective assessment of the property's condition. Only then can negotiations take place on a realistic basis. 

In addition, you should recognize the buying motivation of the potential buyer as early as possible in order to have the right arguments (location, special features, infrastructure, etc.) ready for each individual. You should therefore think about the following questions before the viewing appointment:

• Would the buyer like to use my property as a capital/investment for himself or for retirement provision, for example?
• What exactly is the motivation for buying my property? Family, professional or educational reasons can be the main motivation for buying a house/flat.

If you have a good valuation for your property, stick to your price and don't make any hasty discounts. Instead, concentrate on presenting your house or apartment well to buyers. During the viewing, focus on the advantages of your property and always keep the main motivation of the buyer in mind. 

Unnecessary information during the viewing appointment that negatively influences potential buyers

During a viewing, communication between the potential buyer and the property seller plays an important role. A detailed presentation of your property serves to fully inform the potential buyer about all the features of the property. You can also show that you care about your property. No prospective buyer will be enthusiastic about a viewing where a seller has no desire to present the property and displays a lackadaisical manner. However, it is of course also important to find the right balance here. You should definitely avoid holding an uninterrupted monologue and not give the buyer absolutely superfluous information. If you tell prospective buyers during a house/flat viewing that your neighbor's dog can't stop barking or that he plays the guitar late into the night, this has nothing to do with your property and will certainly not have a positive effect on the sales pitch. During a viewing, focus on the advantages of the property for sale and bring these to the fore. The conversation must not be steered in the wrong direction by unnecessary topics. Always stay in control and try never to lose the thread completely. Make a point of showing prospective buyers all the highlights of your property and don't leave anything out. Small details such as a beautiful balcony with long hours of sunshine or a larger bathroom can ultimately be decisive for a purchase decision.

A credit check of the potential buyer is a very important factor before the contract is concluded. Solvency can be confirmed by a bank commitment or by a bank statement/receipt for the necessary equity. The bank's credit check is a lengthy process and can sometimes take several weeks. Therefore, if the seller is seriously interested in buying, they should advise the potential buyer to initiate this process as early as possible to allow enough time for the credit check. This can save both parties unnecessary time if the potential buyer unexpectedly receives a rejection from the bank. If a prospective buyer is really willing to buy the property, the seller can also consider a preliminary contract with a notary, for example. A preliminary contract is an agreement between the property seller and the buyer that can be made before a final purchase contract is signed. There is of course no legal obligation to conclude a preliminary contract when selling a house/flat, but there are some advantages for the seller. Although this does not mean that a 100 percent buyer has been found, the seller at least receives a certain degree of financial security. 

Do not check the purchase contract carefully before signing it

In Germany, the notarization of a purchase contract for the sale of real estate is required by law. A purchase contract should contain the exact personal details of both parties, the object of purchase, the description of the transaction, the purchase price, the payment and the specific condition of the property, etc. in detail. As the seller, it is also important to check all points relevant to you, particularly with regard to the description of known defects, the transfer of fixtures and fittings and the handover date when drawing up the contract. Before the final signature, you should carefully check all the details again. If necessary, it is of course also possible to seek advice from an experienced real estate agent. They have already seen many purchase contracts of this type and may pay attention to certain small details that do not appear relevant at first glance.

For you as a real estate seller, it is extremely important to invest enough time in the purchase contract. It is better to ask and check too much than too little at this point. A hasty signature can lead to a number of problems for you afterwards and also cause financial damage. You should understand exactly what the purchase contract stipulates, particularly with regard to liability and warranty claims. 

A typical mistake, for example, is that the property seller assumes liability for material defects of all kinds. As the seller, you should make sure that liability for material defects is excluded in the property purchase contract so that you do not have to assume responsibility as the main debtor for any defects that occur later. The known defects that were raised during the inspection should be listed in the contract. This prevents later discussions and ambiguities. 

Deliberately conceal minor defects

As a seller, don't start by thinking about how you can best conceal minor defects. Just because a buyer may overlook something in the first step doesn't mean that they won't take a closer look at the property. Negative surprises will always fall back on you in the end. That's why you should be absolutely transparent. Make sure that you have pointed out all material defects to the potential buyer when viewing the apartment/house. Do not hide any defects in your property, no matter how small. The property seller is obliged to sell the house or apartment to the buyer free of defects. The seller is also liable for minor defects that they have fraudulently concealed. In this case, the buyer can sue for damages. The property seller must then remedy the defect at their own expense. He is also liable for damage caused by defects that were not communicated. Under certain circumstances, the buyer may even be entitled to demand the rescission of the purchase contract or a reduction in the purchase price.

The keys are handed over before the money is transferred  

You had a very pleasant sales meeting with the buyer, he assured you that he was solvent and gave you a verbal commitment to buy the house/flat. During the viewing appointment, he behaved professionally and was very nice to you. He is highly motivated to buy and wants to conclude a purchase contract immediately so that he can move into the house/flat as soon as possible. You have a very good feeling about this prospective buyer and do not want to lose him as a buyer under any circumstances. The potential buyer may state that they need to move into their property by a certain date at the latest. You may therefore be faced with the following question: Should you hand over your key to the property without any money having been received?

The answer is clearly no. Never rely on a verbal promise. You should also not accept an ultimatum for handing over the keys. If a buyer "has to" move into your property before the money has been received, they are not the right buyer. It can always happen that the buyer is unable to meet their payment obligation for whatever reason. In addition, there could also be the case that the buyer specifically looks for defects after moving in in order to be able to withdraw from the purchase contract. We could list other scenarios that all come to the same conclusion in the end: Under no circumstances should a handover of keys take place before the money is received.

And under no circumstances should you agree to premature renovation, even if the potential buyer has already proven their ability to pay. When selling a property, the payment procedure is always stipulated in the contract. The property is then handed over either after the full purchase price has been paid or after partial payments based on a purchase price due date calculation issued by the notary. This means that the buyer may only renovate the property after the seller has received his money. Do not make any exceptions here, a mistake of this kind could cost you dearly afterwards.

If you hand over the keys, you lose control of your property. The buyer could immediately make changes to your property or, in the worst case, even damage items. Imagine if the buyer were to file for personal bankruptcy and become insolvent. He would then neither be able to pay the purchase price nor restore your property to its former condition.