If you want to sell a condominium, there are various things to consider. It is important to choose the right time and define a purchase price that enables a quick sale but still meets your expectations. There are also special considerations if you are selling a condominium that is rented out. In this case, the tenancy agreement remains valid. A potential buyer can only change this if they register their own requirements. Helpful tips on selling an apartment can support you in your decision. We offer you an overview of the things you should bear in mind.
You should follow these tips when selling your home
Selling a condominium is a decision that you can no longer revise. You are concluding a legally valid contract with the buyer. It is therefore very important that you make the right decision and pay attention to a few things. Only then is it highly likely that you will be truly satisfied once the sale has been completed. But how do you proceed if you want to sell your condominium? What steps are required and what do you need to do? How does the sale of a condominium actually work? Our checklist not only provides you with important basics that you should already take into account in the planning phase. You will also find out what you should bear in mind if you want to sell a rented condominium and whether it is advisable to hire an estate agent. If you use our checklist on selling condominiums, nothing will stand in the way of a successful sale at the desired price.
Selling a condominium - Tip 1: Preparation is important
You’ve made a decision: you want to sell your condominium and need tips on how to get started. In any case, you should prepare the sale well. There are various steps that will help you sell your condominium. As this is a legally binding contract drawn up by a notary, the steps are similar for individual properties. You can therefore also apply the tips and tricks to your individual sale. It is very important to avoid mistakes or misunderstandings. The following things are extremely important:
* Decide on a sale at the right time
* Allow sufficient time for the sale of your condominium
* Set a realistic purchase price that is not too high and not too low
* Find out about the current situation on the real estate market before selling
* Do you attach importance to professional marketing
* Do not forego the support of a real estate agent when selling your condominium
* Consider the special features of selling a rented condominium
Selling your home quickly and at short notice, for example because you need money, is often not a good idea. In this case, you are usually selling below value. So one of the most important tips is to take your time if you want to sell your condominium.
Selling a condominium - Tip 2: Don't sell under time pressure
When you sell your condominium, the time it takes to complete the sale can vary considerably. It is best to allow sufficient time and not set yourself a deadline. Selling under time pressure often has negative consequences. In most cases, you will not achieve the desired price if you set yourself a deadline. One of the most important tips for selling a condominium is that you should not set yourself a tight time limit. Bear in mind that a condominium cannot usually be sold within a few days or weeks. The requirements and necessities are too complex for that. There are cases where time is of the essence and longer-term planning is not possible. However, if you can somehow arrange it, this should remain an exception.
Various steps are necessary for the sale of a condominium
When you sell your condominium, the sale takes place in various phases. As a rule, various people are involved in the sale: you as the seller, an estate agent, various interested parties and the notary. Other people may be involved if the condition of the apartment or building needs to be inspected. This may be necessary for older properties that may require refurbishment. It is also necessary to prepare an exposé and place advertisements on the Internet and possibly in the daily newspaper. This also takes time and should be taken into account during the planning stage.
Financial losses are often the result
If you invest too little time in selling your condominium, the result in many cases is a price that is below your expectations. You want to sell quickly, so you lower your expectations. You don’t invest as much time in the exposé and in looking after prospective buyers. Sometimes there is no time for necessary repairs, which also has a negative effect on the price. You are therefore giving away part of your assets if you sell under time pressure.
Selling a condominium - Tip 3: When is the right time to sell?
An important question when selling a condominium is when you should sell. In addition, there are owners who first have to decide for themselves whether or not they want to sell their condominium. This can be a difficult decision, especially if you live in the apartment yourself. You are familiar with the apartment and its surroundings, perhaps you have grown fond of your property. There are no universal rules that describe the right time to sell, but there are various individual factors that determine the right time. One of the most important tips for the successful sale of a condominium is to take your time. Selling under time pressure is only effective in very few cases. This can be successful if the apartment is located in a region where condominiums are in high demand. If the apartment is also in an attractive location and has very good fixtures and fittings, you can achieve a successful sale in the short term at the price you have in mind. However, this is not the norm. That’s why time is one of the most important factors for a successful apartment sale.
Taking supply and demand into account
Before you put your condominium up for sale, you should find out about the situation on the market. What is the current supply? How quickly do advertisements for apartments in your region disappear again? This research will give you an indication of how long it will take to sell a condominium. Also consider the time of year. In principle, the sale of a condominium can be more successful in spring or summer than in fall or winter.
Consider personal reasons
The time factor is often linked to personal reasons. A serious illness or an inheritance after the death of the owner can make it necessary to sell the condominium quickly. Money worries, a change in the center of your life or the expansion of your family are also reasons that can lead to the sale of a condominium. This also applies if you simply want to change your living situation, i.e. expand or downsize.
Give the sale as much time as possible
Regardless of your individual situation, you should give the sale of your condominium as much time as possible. It’s a great advantage if you don’t have to set a date at all. Then you can observe the market situation, wait for spring and choose a time when your offer ideally won’t be competing with any others.
Selling a condominium - Tip 4: Assessing the value of the property correctly
In addition to the time factor, the purchase price is another important factor for the successful sale of your condominium. Before you can sell your condominium, you need to calculate a price. The value of a property depends on many different factors. In the case of a condominium, these are the size, the number of rooms, the location and the state of renovation. If you want to get a good price, you should think about whether you want to renovate the condominium before selling it.
Why the purchase price is so important
The purchase price is one of the most important criteria for the successful sale of a condominium. If you set the price too high, the apartment may become unsaleable. If the price is too low, you are giving away cash. An important tip for selling a condominium is therefore to set the price slightly above your expectations. This will give you room to negotiate if the prospective buyer wants to lower the price.
Other factors that influence the price
Other factors that affect the price when selling a condominium include the year of construction of the building, the floor and the presence of an elevator, the possibility of using a basement room and the options for exiting the apartment. An exit directly to the outside is always more advantageous than a shared hallway.
Valuation by an expert
If possible, seek advice from an expert when determining the value of your condominium. In this case, the estate agent is your first point of contact. They know the market and can provide you with comprehensive support in determining the value.
Selling a condominium - Tip 5: Better to hire an estate agent
You need to decide whether to sell the condominium yourself or hire an estate agent. A private sale is cheaper for the prospective buyer as they do not have to pay an estate agent’s commission. However, this is the only advantage, and it is not you who benefits from this, but the buyer. If you sell your condominium through an estate agent, you will not only receive professional advice and support. You also save a lot of time. The estate agent can take on the following tasks:
* Support in determining the purchase price
* Creation of an informative exposé
* Placement of advertisements on the Internet and in newspapers
* Management of contacts with interested parties
* Organization and implementation of viewing appointments
Don’t underestimate the time and effort involved in selling your condominium privately. Studies also show that sales through an estate agent are often more successful. A lack of preparation or an unfavorable presentation of the property can lead to a lower price or put the prospective buyer’s decision to buy in doubt. In addition, customers often feel better looked after by an estate agent.
It is also important to know that the new regulation on estate agent commission came into force at the end of 2020. This law on the distribution of brokerage costs when brokering purchase contracts for apartments and single-family homes stipulates that the party commissioning the broker must pay at least 50 percent of the brokerage commission.
Answers to construction and community law questions relating to condominiums
In connection with the purchase of a condominium, prospective buyers often ask questions relating to the organization of the common property or the structural situation. An estate agent can answer these questions at any time, whereas the owner often lacks the necessary knowledge to answer them.
Selling a condominium - Tip 6: Make sure you have complete documentation
The next tip for the successful sale of your condominium leads us to the documents. Before deciding to sell, make sure you have gathered all the documents you need for the sale. This can be a particular problem for sellers who have owned the property for a very long time or have inherited it. If documents are missing, you will not be able to sell. Find out about the papers you need and obtain them if necessary. Allow time, because if you have to obtain documents from the authorities, this will take time to process.
Collect documents and store them in a folder
It is advisable to collect all the required documents in one folder. Make a copy of all documents and store the copies for your own records in a second folder. Exactly which documents you need depends on various factors. You can find more detailed information in the article“All documents for the sale of a condominium: our checklist.”
Selling a condominium - Tip 7: Have the purchase contract checked by a notary
Once you have found a prospective buyer for your condominium, it is necessary to have a purchase contract drawn up. When you sell your condominium,
a notary is the right contact for drawing up the contract. He is also the contact person for all questions relating to the sale of the condominium.
Purchase agreement must comply with the statutory provisions
A purchase agreement for a condominium is very complex. It contains a large number of clauses that must be included. In addition, in many cities and regions you can claim a large sum for your condominium. Experienced estate agents can also draw up a purchase contract, but it is advisable to have it checked again by a notary with regard to the clauses. Ask the notary what wording and content must be included. Another tip is that you should never sign a purchase agreement prematurely. This recommendation applies to both the buyer and the seller of the property.
Selling a condominium - Tip 8: Check the buyer's papers
Another tip for selling a condominium that you should take to heart is that you as the seller should obtain various documents from the buyer. In most cities and regions, a condominium costs at least a six-figure sum. With these high values, a high degree of security is necessary and appropriate. In any case, ask the buyer to show you proof of identity and ask to see the bank’s financing documents. A serious buyer will not deny you this access. Settle these formalities before you go to the notary with the buyer. This will help you avoid any nasty surprises.
Selling a condominium - Tip 9: Leave the sales talks to the estate agent
If you have opted for the support of a real estate agent, you should leave the sales negotiations to them. You can of course be present yourself, but if possible, stay out of the negotiations. The estate agent has a great deal of experience and knows how to use arguments well. He knows the market and brings this knowledge to the sales pitch. The estate agent is also neutral and impartial. Unlike you, he has no personal or individual connection to the property. If you decide to take part in the sales meeting, you should preferably take on the role of listener. In this way, you will contribute to a positive sales pitch.
Selling a condominium - Tip 10: Keep an eye on taxes when selling
Tax may be payable on the sale of condominiums. This is the case, for example, if you have not lived in the apartment yourself and have owned it for less than ten years. In this case, you would have to pay speculation tax to the tax office. This tax is calculated on the profit you made while you owned the apartment. Further taxes may apply to commercial sales. If you would like to find out more about this topic, we also recommend the article:“What taxes may apply when selling and what you should bear in mind.”
Tips for selling a rented condominium
When selling rented condominiums, it is important to note that the sale does not affect the tenancy agreement. You can therefore still sell the condominium. However, you may not find a buyer too quickly. There is special protection for tenants in Germany. Terminations by the new owner are only possible if the tenant declares personal use. To do this, he or a close relative must want to move into the apartment. Corresponding proof is required. The new owner cannot simply increase the rent to cover their costs, for example. Follow these extra tips if you want to sell a condominium despite having a tenant.
Selling a condominium despite being a tenant - Tip 11: Ask the tenant if they are interested in the apartment
If you are planning to sell a rented condominium, you should first ask the tenant whether they would like to buy the apartment. If they like living in the apartment, they may want to take it over. This is an option, especially for younger tenants. You will save yourself a lot of time and work if you can realize the sale in this way.
Selling a condominium despite tenants - Tip 12: Precise planning
Selling a rented condominium requires intensive planning. Much more planning than if you want to sell an unrented apartment. As this is a very complex topic, we have collected and summarized all the information for you. You can find everything you need to know in the article:“Selling a rented condominium: What you should bear in mind.”
Selling a condominium despite being a tenant - Tip 13: Consider whether it makes sense to buy for your own use
To avoid selling a rented condominium, you can register your own requirements. You then move into the apartment yourself and start the sale at a later date. However, this is only advisable if you are under no time pressure. It can take several months or more than a year before the application for personal use is completed and you have successfully sold.
Successfully sell your condominium with our tips
First and foremost, selling a condominium requires time and good planning. It is important that you set a realistic purchase price to ensure a successful sale in a timely manner. Let an estate agent help you with the sale and pay attention to the special features of selling a rented condominium. If you follow our tips, you can sell your condominium successfully.
