Guide to Selling Property in Germany
Property Prices in Germany have risen rapidly in 2015 more so than they have for the last ten years. This is because many foreign investors are now buying property because of the low interest rates offered by the German banks. in 2016 this trend looks set to continue so there never has been a better time to sell property in Germany Fast.
As an example on average property values have went up between 5 to 7% depending on the type of property you have for sale. Family homes being around 5% and apartments in Condominiums about 7%. The main reason for the foreign investment is guaranteed rental returns as Germany as a nation rents property. Rental incomes in Germany are much higher than the mortgage rates which is why overseas property investors are now flocking to buy property in Germany.
Buyers are coming in from China and Russia as well as the UK and Europe and they have cash in their pocket to spend so you need to make sure you are priced realistically to sell to these buyers. Statistics show investment in Germany is up 30% more than before the global crash of 2007.
How do i Sell my property in Germany you might ask?
One of the most important factors that people overlook is hiring a good online estate agent with extensive connections and who markets overseas into the likes of the UK, Russia, China, the Middle East and beyond in many different languages. Germany is a multi cultural country so you need an agent who can attract multi cultural buyers and this is where the Euro Property resale network comes in.
In Germany the buyer or seller can pay the 5% commission either out of the sale price or on top of the asking price depending on which way you agent charges commission. Always factor this in when setting your price.
If your property is over ten years old you do not have to pay any capital gains tax on the profit. If it is less than 10 years then you will have to pay capital gains tax but only if you sell for a profit. If there is no profit there is no tax to pay.
The depreciation value normally means there is very little tax to pay on sale and your agent will advise you on this.
When your ready to place your property on the market to attract buyers you have to price realistically. Look as what your closest competition is selling for and price just a little lower as this trick will attract buyers to your property first. If you are unsure speak to an expert in German Property re-sales. If you price to high you will not find buyers so this is key.
Clean the property up and do any repair works needing done prior to sale. Never seem to keen or desperate as the savvy cash rich buyers will pick up on this and make you low offers. Always have a good reason to sell like its time to move on and buy something else.
Have patience as the process takes time, when you receive offers take a day or two before getting back to the buyer as this will make them think you have other buyers and are not desperate or in a hurry to sell.
We can help with every aspect of selling property in Germany contact us today for free advice and a fast reply.