Selling property in Germany: price, timing, tax

Determining the value

Three methods deliver the value: the comparison method with sale prices of similar properties from the expert committees’ purchase price registers, the income method from rent and property yield for let properties, and the asset method from land value and building value for single-family houses. For a first classification an estimate from comparables and land value suffices; an appraisal for €1,500 to €3,000 makes sense for inheritance disputes, divorce or special properties. The asking price sits five to eight percent above the target, not more, otherwise the property lingers and gets burnt.

Documents before the listing goes live

Current land registry extract, energy certificate (mandatory at viewings, otherwise a fine), floor plans, living area calculation, building description, for flats the declaration of division, minutes of the last three owners’ meetings, business plan and reserve level, invoices for renovations, tenancy agreements if let. Prospects who have to ask three times offer less.

The timing

Spring and autumn are the strongest seasons because buyers want to move before summer and before year end. More important than the season is the rate environment: falling mortgage rates bring more buyers into the market. And the speculation period: ten years must lie between purchase and sale, otherwise the gain is taxed at your personal rate. Exception: whoever lived in the property in the year of sale and the two preceding years sells tax-free.

Preparation that brings price

Small repairs, fresh paint, tidy rooms, good light, professional photos. According to agents these five points bring three to five percent but cost under €3,000. Major renovations before a sale rarely pay because buyers want to install their own taste. A new heating system can pay with old oil boilers because it removes a financing hurdle for the buyer.

With or without an agent

Since 2020 an agent costs the seller at least half the commission, usually 3.57 percent, so €17,850 at €500,000. In return they handle valuation, exposé, viewings, credit checks and negotiation. Whoever has time and sells a standard property in a sought-after location saves the money. For communities of heirs, listed buildings or weak demand the agent is often worth the fee.

From offer to notary

Demand a financing confirmation from the bank before you reserve. The notary is chosen and paid by the buyer, but you should check the draft contract anyway: handover date, payment deadline, condition, fittings, exclusion of liability. Payment flows only after the priority notice in the land registry, handover after receipt of payment. That typically takes six to eight weeks.