Do you own a piece of land and wonder how to get the absolute best price when selling it? Selling land offers enormous opportunities, but also some pitfalls. With the right preparation and strategy, you can turn your land into cash – often more than you might expect.
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The topic briefly and concisely
The determination of buildability (development plan, building inquiry) is the most important first step and can increase the value by up to 15%.
A professional property valuation that goes beyond the mere standard land value is crucial, as individual factors significantly influence the price.
Value-adding measures such as land division or clarification of development can increase the sales proceeds by 20-30%.
The decision to sell a property is often accompanied by high expectations regarding the proceeds. But how do you ensure that you maximise the potential of your real estate and actually achieve the best price? Many sellers underestimate the complexity and the crucial factors that influence the value. This article guides you through the key steps, from precise valuation to smart marketing, to avoiding costly mistakes. Discover how you can significantly enhance your success with a well-informed approach and a strategic plan, maximising the outcome of your property sale.
Laying the Foundations: The Buildability of Your Property as the Number 1 Value Driver
Before selling your property and achieving the best price, clarifying the buildability is essential. Information on this is provided by the development plan of your municipality, which can be viewed at the city planning office. This plan defines whether and how construction is allowed, for instance, the permissible site coverage ratio (GRZ) and floor area ratio (GFZ). If there is no qualified development plan, building law often refers to § 34 BauGB, according to which the development must fit into the surrounding area. A preliminary building inquiry with the building authority often provides clarity here and can increase the value for potential buyers by up to 15%. This legally binding information is usually valid for three years. Knowing these details is fundamental to targeting the right audience and conducting a solid property valuation.
The type of property significantly influences the price. Developed building land usually achieves the highest square meter prices. Expected development land, which refers to areas that will become building land in the future, is worth less than already designated building land. Although raw building land is designated as building land, it has not yet been developed, which means costs for the buyer. For an initial assessment of how to sell your property and achieve the best prices, accurately defining the development status is essential.
Determine realistic market value: More than just standard land value
The standard land value is an initial indicator of your property's value. It is determined by appraisal committees and is based on average values of past sales in an area. These values are updated at least every two years and are often available online. However, caution is advised: The actual achievable price can significantly differ from the standard land value, as it does not take into account individual property characteristics. Factors like plot shape, orientation (a south-facing plot is often worth 5-10% more), soil condition, and potential contamination play a major role. Therefore, a professional appraisal is often essential for an accurate valuation of the property. Such a market value appraisal in accordance with § 194 BauGB considers all relevant factors.
The comparative value method, where similar, recently sold plots are used, is a common approach. However, since undeveloped plots are often rare, this method is not always fully applicable. A combination of standard land value analysis and expert knowledge usually leads to the best outcome. Our Auctoa AI-assisted evaluation or a conversation with our ImmoGPT can quickly provide you with an initial well-informed assessment and help you sell your property and achieve the best prices.
Value-Enhancing Measures: Fully Unlock the Potential of Your Property
To achieve the best price when selling a property, certain measures can significantly increase its value. One of the most important actions is clarifying and optimizing the buildability. Even a positive preliminary building inquiry can increase the value by 10-15%. For larger plots, it may be worthwhile to consider a subdivision. Two smaller parcels can often be sold at a higher total price than a single large plot; additional proceeds of up to 20% are possible. The costs for the subdivision and surveying usually pay off quickly.
Other value-enhancing aspects include:
Check and, if necessary, advance development: Developed building land is up to 30% more valuable than undeveloped land. Clarify the status of development (road, sewer, water, electricity) and who bears the development costs.
Remove contaminants: A soil survey provides clarity on possible contamination. The removal of pollutants can increase the sale price by the amount of the remediation costs and beyond.
Optimize building regulations: Sometimes, through negotiations with the local authorities or minor plan changes, better buildability (e.g. higher floor area ratio) can be achieved, directly increasing the value by 5-10%.
Prepare documents thoroughly: A complete set of documents (land register excerpt, cadastral map, development plan etc.) signals professionalism and accelerates the sales process by several weeks.
These measures do require a certain upfront investment, but often pay off multiple times over in the sale price. This ensures that you can sell your property and truly achieve the best price.
The right sales strategy: target audience analysis and marketing channels
The choice of the right sales strategy is crucial for selling your property and achieving the best prices. First, you need to identify the most likely target audience. If it’s a small plot for a single-family house, private individuals are your point of contact. Larger, more complex plots are more appealing to developers or project developers who can often pay 10-20% higher prices. A thorough market analysis for your property is invaluable here.
There are various channels available for marketing:
Online property portals: Platforms like ImmoScout24 or Immowelt reach a wide audience and are often the first point of contact for private buyers.
Regional newspapers: Particularly in rural areas or for older target groups, a newspaper advertisement can be effective.
Estate agent networks: A good estate agent has a customer base and contacts with investors, which can speed up the sale by an average of 4-6 weeks.
Direct approach to developers: For suitable plots, direct contact with local developers can be very effective and lead to a quick sale.
Bidding process: In cases of high demand, a bidding process can drive the price upwards; here, price increases of 5-15% over the original offer price are possible.
A professional exposé with high-quality photos, aerial images, and all relevant information about buildability is essential. It can make the difference between an average and a top price. The right marketing strategy for your property is key to success.
Legal and Tax Aspects: Avoiding Pitfalls
When selling property, there are several legal and tax pitfalls that can diminish the best price. A key issue is the speculation tax. If you sell a property within ten years of purchase, the profit is generally subject to income tax. The calculation of the period is exact to the day from the date of the purchase contract. An exception exists for personal use, which does not apply to undeveloped land. The amount of tax depends on your personal income tax rate. Early review by a tax advisor or tools like Auctoa's ImmoGPT can protect against unpleasant surprises.
Other important points are the completeness of the documents and the correct processing through a notary. The following documents are usually required: current land register extract, site plan, development plan (if available), proof of development costs, and possibly a contamination report. The notary draws up the purchase contract and authenticates it; without notarization, the sale is not legally valid in Germany. Notary costs amount to about 1.5% of the purchase price and are usually borne by the buyer. Also clarify who bears the costs for the removal of any liens still registered (usually the seller). A clean legal preparation is a must to sell your property and achieve the best prices and to avoid future conflicts. Also, make use of our checklist for selling a property.
Negotiating and Closing: Successfully Shaping the Deal
The negotiation phase is critical to selling your property and achieving the best price. With a well-grounded property price analysis and a professional valuation report, you enter discussions strengthened. Be prepared for questions on buildability, development status, and soil condition. A buffer of 5-10% in the asking price for negotiations is common. Define your absolute bottom line in advance. If there are multiple interested parties, a structured bidding process can be sensible to encourage price competition. Oftentimes, this can achieve another 5-10% above the highest individual offer.
Once agreement is reached, the buyer usually commissions the notary to draft the purchase contract. Review this carefully, ideally with legal support. Pay attention to correct details concerning the property, purchase price, payment terms, and transfer date. The priority notice in the land register secures the buyer until the final transfer of ownership. The purchase price is usually paid into a notary escrow account or directly to you after the entry of the priority notice. The transfer of the property should only occur after full payment of the purchase price. A good negotiation of the property price and a clean completion are the final steps to success.
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To sell a property and achieve the best price, more than just an advertisement is required. Careful preparation, starting with an accurate assessment of buildability and a realistic valuation by experts, lays the foundation. Value-adding measures such as resolving development issues or a potential plot division can significantly increase the proceeds. A targeted marketing strategy and knowledge of tax aspects such as the speculative tax are also crucial. Professional support, such as an Auctoa assessment or the ImmoGPT chat, can help you avoid pitfalls and unlock the full potential of your property. This way, your property sale becomes a complete success with a return that exceeds your expectations.
Additional useful links
Statistisches Bundesamt (Destatis) provides tables on residential property price indices, offering valuable insights into market developments.
Statistisches Bundesamt (Destatis) offers publications on land purchase values, essential for making informed value assessments.
Bundesfinanzministerium provides an application for property purchase price allocation, which can be helpful in tax matters.
BORIS.de is the central information system for standard land values in Germany and provides an initial orientation for property values.
Bundesinstitut für Bau-, Stadt- und Raumforschung (BBSR) offers a dashboard for the real estate market report, delivering up-to-date data and analyses on the market situation.
Dr. Klein provides information on land prices, which can support the assessment of market value.
FAQ
How do I determine the optimal asking price for my property?
The optimal offer price is based on a professional valuation (e.g., market value appraisal) which takes into account the standard land value, individual property features, the current market situation, and development potential. Plan for a small negotiation margin of 5-10%.
What role does the development plan play in achieving the best price?
The development plan is crucial as it legally determines what and how can be built on the property (e.g., type and extent of usage, floor space index). A positive or optimizable development plan can significantly increase the value, as it provides planning security for buyers.
Should I sell my property developed or undeveloped?
Developed plots usually fetch a significantly higher price (up to 30% more than undeveloped land) as the buyer saves on these costs and effort. If the development costs are manageable, it might be worthwhile to bear these before selling.
How do I find the right buyer for my property?
The target buyer group depends on the type and size of the property. Smaller plots for single-family homes appeal to private individuals (marketed via online portals, agents). Larger or more complex plots are interesting to developers and investors (direct contact, specialized agents).
What costs will I incur as the seller when selling a property?
As a seller, you typically bear costs for the valuation (appraisal), possibly broker commission (often shared with the buyer, approximately 3-7% of the purchase price), costs for obtaining documents, cancellation of land charges, and potentially capital gains tax on the profit.
Can I sell my property at the best price without an estate agent?
Yes, it is possible, but it requires considerable time, market knowledge, and negotiation skills. You need to handle the valuation, creation of listings, marketing, viewings, and negotiations yourself. An estate agent can often expedite this process and achieve a better price through their network, though it does come with a commission.
