Anyone who has been toying with the idea of selling their condominium for some time may be asking themselves: When is the right time? Well, if your property is in Berlin, then perhaps you should think about selling now. Investors are still on the lookout for suitable investment properties in Berlin, even though interest rates on real estate loans have risen sharply in recent months. In 2022 alone, an increase of around 2.5 percentage points was recorded.
Why is now a good time to sell a property in Berlin?
If you are one of those people who generally keep an eye on the housing market, then this news is absolutely nothing new to you. However, it may well be that you are one of those people who own an investment but are not actively looking at the housing market in Berlin. In us, you have found a team of experts who will explain to you in detail in this article why now may be the best time to sell your real estate investment.
Prices in Berlin have been rising steadily for several years now. It is becoming increasingly difficult to find affordable apartments to rent. And condominiums are also achieving record prices. Experts are constantly analyzing the situation and note that sales prices for condominiums and other properties are continuing to rise. The market trend shows an increase of 300 percent over the past 10 years. Forecasts indicate that the price increase is unlikely to stop in the short term. Medium-term and long-term forecasts are less optimistic in this respect. It is therefore quite possible that we are currently approaching peak prices, which would be a good time to sell your investment.
Selling a property in Berlin: Organize it yourself or hire an estate agent?
When the thought of selling your property becomes more and more important, the question inevitably arises as to whether you should organize the sale yourself or commission a professional estate agent with this task. We cannot give you a general answer at this point, but we would like to present the various reasons that speak for and against using an estate agent.
A real estate agent takes on all the tasks involved in selling a property. They represent you, present the project to potential buyers and thus relieve you of a great deal of work. This results in both time and legal advantages. This is because a professional estate agent knows the process of selling a property very well and can protect you from mistakes in the purchase contract and other pitfalls. You can fill your valuable time with other things and don’t have to deal with viewings or constant queries. Of course, employing an estate agent involves payment. Many people try to avoid this financial outlay and prefer to handle the property sale themselves. However, hiring an estate agent is worthwhile because a professional estate agency has important contacts. They will find a buyer for your property far more quickly and can complete the sale promptly. The estate agent will achieve a good price, which may be higher than your personal expectations. However, it is also possible that you have misjudged the price of your property. In this case, an estate agent will assist you, realistically assess the value of the condominium and save you a lengthy sales process in which you may have to wait some time to adjust your asking price to the actual market situation.
Some people want to sell a property that is very close to their heart. They are afraid that an estate agent might not recognize the sentimental value of the house and just want to make a deal. At Vandenberg, great importance is attached to every customer. This also means a personal service that goes far beyond the business of selling. Every property owner comes to us with a very personal story. It is therefore important to us to find a buyer who will not only pay the right purchase price, but who may also be able to continue the vision of the previous owner.
The tasks of a real estate agent at a glance
In principle, the estate agent is responsible for selling your property at your request. As the owner, you will of course sign the documents and the purchase contract yourself. But the estate agent is a professional advisor who will support you and guide you through the entire purchase process. The services of a good estate agent include the following services and tasks:
- An estate agent knows all about real estate and market values. They will carry out an appraisal and can then provide you with information about the value of your property.
- The estate agent carries out viewings with potential buyers and presents your property in the best possible light.
- You are professionally looked after and do not have to worry about obtaining documents.
- All the necessary contacts have already been made so that the best buyer can be sought effectively.
- Queries from potential buyers will be answered in your interest.
- If you have any questions, you can contact your professional advisor at any time and receive the best possible advice.
- The estate agent takes care of appointments with surveyors, authorities and notaries.
How does real estate sales in Berlin work?
You place the sale of your property in the hands of an estate agent. You no longer have to worry about the various tasks involved in the purchase process. You will be informed of important dates and numerous tasks will be taken over by the estate agent. Nevertheless, we naturally want to ensure that you have an overview. You should be informed at every stage of the sales process about which steps are being taken and where you are in the process. The following division into a total of five phases will enable you to maintain an overview at all times:
1st phase of the real estate sale
No two properties are the same. For this reason, it is extremely important for an estate agent to view the property for sale and conduct an individual initial meeting with the owners. This can then be used as a basis for optimally implementing the seller’s wishes and going through the sales process without any unpleasant incidents or misunderstandings.
The following questions, among others, are asked and discussed in detail during the initial consultation:
- Why do you want to sell the property?
- What is the history? Is the property an inheritance or an investment that you would like to sell?
- What is your asking price?
- What features does the property have and what makes it stand out?
- What time frame would you like? Would you like to meet specific deadlines?
- What expectations do you have of the presentation of your property?
- What tasks should we take on as a broker and what special wishes might you have?
The transition between the first and second phase of the real estate sale is fluid.
2nd phase of the real estate sale
After the initial meeting with the client, an initial valuation of the property is carried out. You may have already looked around a little and considered the price range of your property. Nevertheless, it is necessary for a professional estate agent to carry out a valuation in order to give you a realistic asking price. It may well be that you have misjudged the price and the property is valued significantly higher. If, on the other hand, you have overestimated the value of your apartment or house, the estate agent’s assessment will give you a realistic picture of your situation.
During the viewing of your property, photos and videos are taken, which are then used to present your property on the estate agent’s website. An exposé must be prepared that reflects the personality of your property. In this way, potential buyers have the opportunity to take a first look at your property on the Internet and, in addition to helpful information, can also capture the character of the apartment.
Old floor plans must be updated. In addition, the estate agent compiles a folder containing all the documents that are of interest to potential buyers. Real estate is a highly sought-after commodity in Berlin and the sale can usually be completed quite quickly. Nevertheless, the estate agent will work on a suitable marketing strategy to find the best buyer for you.
3rd phase of the real estate sale
In the third phase of the real estate sale, the actual marketing of the apartment begins. The exposé is completed and offered on various channels. The estate agency has interesting existing customers who are informed about your property. This may already result in a whole range of potential buyers. The real estate market in Berlin is highly competitive and investors strive to always be the first to be informed about a property for sale.
In addition, there is the presentation on the Internet and in the shop window of the estate agent’s office. Further channels can be discussed.
4th phase of the real estate sale
During the active sales phase, several viewings are carried out with interested parties. But that’s not all. Potential buyers need to be looked after appropriately. The estate agent is available to answer any queries, makes phone calls and provides overall support for potential buyers. If a prospective buyer expresses an interest in the property and wants to buy it, their creditworthiness must be checked. The estate agent has the opportunity to ensure the reliability and seriousness of the potential buyer.
Once an interested party has emerged who meets all the criteria, the purchase price is negotiated. Once this has also been successfully completed, appointments must be made with the notary. If you wish, your trusted estate agent will also be present when the purchase contract is signed and will provide you with active support.
5th phase of the real estate sale
The sale of a property is far from complete once the purchase contract has been signed and the appointment with the notary has been made. At your request, the estate agent will contact the notary directly and coordinate the rest of the sales process. The final step, in which you as the seller of a condominium are actively involved, is the handover of the property. If you wish, your trusted estate agent will also be present at this important appointment.
Where is it particularly worthwhile to sell a property in Berlin?
In general, it can be said that condominiums in the center of Berlin in particular are currently achieving above-average sales prices. The unique location contributes to this. There is a huge range of offers in Berlin’s city center. This applies to culinary specialties as well as the cultural program. Whether you want to store, party, stroll, eat or travel, the center of Berlin is the hub of the German capital – and not just geographically.
There are also countless shopping opportunities and a very well-developed public transport network. Condominiums located in Kreuzberg, Prenzlauer Berg, Berlin Mitte or Friedrichshain will find a buyer in no time at all.
If you want to sell a detached house or a plot of land, you have the best opportunities in the outskirts of the city. This is where young families in particular are drawn to, as they want an idyllic environment for their children. If there are playgrounds, forests and lakes nearby, this is a huge plus. Of course, medical care should be good and there must be sufficient kindergartens and schools to make the property location attractive for families with young children.
How long does it take to sell a property in Berlin?
No general statement can be made in this regard. The Berlin real estate market is highly competitive overall. Many condominiums find a good buyer immediately. It can sometimes take just a few weeks for the entire sales process to be completed. However, you want to find the perfect buyer. This buyer must meet a whole range of different criteria. There may be tough negotiations that delay the process.
What documents are required for the sale of real estate?
The purchase of a property is a cost-intensive investment for the buyer. For this reason, it is important for the buyer to be provided with meaningful information. They want to know what condition the property is in, what problems could possibly arise and what value the condominium has. You should therefore provide a potential buyer with as much information as possible. This will enable a substantive purchase decision to be made. This is also very important for you as the seller, as this way you avoid a potential buyer pulling out at short notice, which saves time, money and nerves.
The most important documents that you should be able to present include
- Current business plan and housing benefit statements for the past three years
- Refurbishment description or building description
- Land register extract
- Parcel map and important documents from the authorities
- Declaration of division
- Energy certificate
- Plans, area calculations, floor plans and views
- Minutes of the owners’ meeting (past three years)
- Tenancy agreement (if the condominium is rented)
You can find a detailed overview of the required documents, including a practical checklist, in our detailed article on this topic.
What are the costs of selling real estate in Berlin?
The usual regional commission rate is between 5.95% and 7.14% of the purchase price. In Berlin, a city with a highly competitive real estate market, the commission is around 7.14 percent of the purchase price. An estate agent’s commission is only paid if the agent’s work has brought about the sale. For example, if you have commissioned an estate agent to sell your condominium, but ultimately sell it to a good friend of the family. You conducted the sales talks yourself, made the contact and also managed the process. In such a case, the estate agent is not entitled to the commission.
The estate agent’s commission is paid in equal parts by the seller and the buyer of a property. With a commission of 7.14 percent, this means that the buyer and seller must each pay 3.57 percent of the agreed sales price of the property.
With a price of 500,000 euros, brokerage costs totaling 35,700 euros are incurred, which are divided equally between the seller and the buyer.
Further details and information on estate agent costs and other incidental costs can be found in our article “Selling a condominium – incidental costs: documents, notary, estate agent, taxes & more”.
Conclusion
After a detailed examination of the current market situation, we have come to the conclusion that now is a very good time to sell a property. Prices have risen steadily in recent years. In the short term, there is no reason to fear a collapse in real estate prices, even if interest rates on loans have risen significantly, as Berlin is an extremely attractive location. In the medium and long term, no reliable forecasts can be made. However, it is possible that the real estate market in the German capital will stagnate. For some time now, there has been a clear decline in sales offers.
If you want to sell your property, we advise you to hire a professional estate agent. They will take on important tasks and optimize the sales process so that a very good sales transaction can be concluded. Would you like to have an initial consultation and have your property in Berlin valued by experts? Then get in touch with the Vandenberg team. We will be happy to arrange an initial, non-binding appointment with you.
