Are you facing the challenge of selling your apartment to buy a house? This complex step requires precise planning and financial skill. Learn how to make this transition successfully and avoid pitfalls.
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The topic briefly and concisely
Careful planning of the sequence of selling and buying minimizes financial risks; selling the apartment before purchasing the house generally offers more security. [1,2]
The additional costs involved in selling property (such as energy certificate, possibly estate agent, notary for cancellations) and buying a house (such as land transfer tax, notary/land register, possibly estate agent) can account for a total of 10-15% of the house purchase price and must be calculated in detail. [3,2-6,7,2,6]
The speculation tax on the profit from selling the apartment can be avoided if the property was used personally or if the holding period of 10 years has been exceeded. [8,1,8,2,8,3]
The desire for change is strong: You want to sell your flat and buy a house. But how do you best approach this significant step without financial disadvantages or unnecessary stress? Careful planning of the sequence, a detailed cost analysis, and a smart financing strategy are crucial. This guide sheds light on all aspects, from the ancillary sale costs of your flat to the acquisition costs of the new house, including tax considerations and the current market situation in 2025. With the right information, you can make informed decisions for your successful property transition.
Strategic Planning: The Optimal Sequence for Selling and Buying
The decision is made: you want to sell your apartment and buy a house. But which sequence is the smartest? Sell first or buy first? Both options have pros and cons that need to be weighed carefully. Thoughtful planning is key here to minimize unnecessary costs and risks. [1,2]
The conservative strategy is to sell your condominium first. This minimizes financial uncertainty, as you know exactly how much capital is available for your house purchase. [1,2] However, keep in mind that you may need a temporary apartment if the purchase of the house does not follow seamlessly. [2,4]
Alternatively, you can buy the new house first. This option is riskier and often requires more equity or interim financing. [1,2] The advantage: You can choose your dream house without time pressure. Regardless of the chosen sequence, a detailed timetable is essential; the entire process can indeed take three to six months. [1,3] A professional property valuation of your apartment is an important first step in any case. [1,2] This creates a solid foundation for the next steps.
Cost Analysis Part 1: These Additional Costs Await You When Selling Your Flat
When selling your flat, various incidental costs arise that can affect your planning. An energy performance certificate, mandatory since 2009, costs between 50 and about 500 euros, depending on the type. [3,3] If third-party rights are still registered in the land register, notary fees arise for their deletion. [3,3]
If your flat is still financed by a loan and it is repaid early, the bank may demand an early repayment penalty. [3,3] In addition, there are costs for the deletion of the land charge in the land register. [3,4] If you market your property privately, you should expect expenses for advertisements and exposés, which can amount to several hundred euros. [3,5]
If you engage an estate agent, a commission will be due, which is usually shared between the buyer and the seller. This typically amounts to between 3% and 7% of the sale price. [3,5] A detailed valuation report can cost between 1,500 and 3,500 euros, but is often offered as a service by agents. [3,6] A precise list of all important sales documents helps keep track. These cost items should be calculated early on.
Cost Analysis Part 2: Account for These Additional Purchase Costs for Your New Home
The purchase of a house is associated with significant additional costs, which are incurred on top of the pure purchase price. A major item is the property transfer tax, which is between 3.5% and 6.5% of the purchase price, depending on the federal state. [3,2,7,2] This tax is a one-time payment to the tax office.
Furthermore, notary and land registry costs are added. For the notarisation of the purchase contract and the entry in the land register, you should budget approximately 1.5% to 2% of the purchase price. [3,2,7,2] If the purchase of the house is handled through an estate agent, a commission fee is also incurred, which is usually shared between the buyer and seller and can amount to 3.57% to 7.14% of the purchase price. [3,4,7,2]
Overall, you should expect additional costs of around 10% to 15% of the purchase price when buying a house. [7,2,7,6] This amount must definitely be taken into account in your financial planning. Make sure you are informed about land registry regulations to avoid pitfalls. Solid financial planning is the next important step.
Smart Financing: Mastering the Financial Transition
Financing a house purchase while simultaneously selling a flat requires a smart strategy, especially when the capital from the sale is not yet available. A common solution is bridge financing, a short-term loan that covers the period until the sale proceeds are received. [4,1,6,1] This is particularly relevant if you buy the house first and then sell the flat.
If there is still a mortgage on your old flat, there are several options: You can repay the mortgage early (be aware of early repayment charges!), transfer it to the buyer, or under certain conditions, transfer it to the new property (known as a mortgage swap). [1,1,5,2,6,5] A variable loan or a deposit from the buyer of your flat can also provide financial flexibility. [6,5]
The following options can help with ongoing financing of the old flat:
Early repayment of the old mortgage (often associated with costs)
Transfer of the mortgage to the flat’s buyer (bank approval required)
Mortgage swap: transferring the existing mortgage to the new property
Using bridge financing until the flat's sale proceeds are available
Early advice on property financing and a finance confirmation from your bank can strengthen your negotiating position when buying a house. [5,5] This demonstrates your creditworthiness and intent to purchase to sellers. Plan this step carefully to avoid financial bottlenecks.
Tax aspects: Speculation tax and land transfer tax in focus
When selling your flat and buying a house, taxes play a significant role. If you sell your flat at a profit within ten years of purchase, capital gains tax may apply. [3,3,8,1] This period is crucial.
However, there are exceptions: If you have used the property exclusively yourself in the year of sale and the two preceding calendar years, capital gains tax is generally waived. [8,2,8,3] The amount of capital gains tax depends on your personal income tax rate. [8,2] If you sell three or more properties within five years, you might be classified as a commercial dealer, which could lead to trade tax liability. [9,5]
When buying a house, land transfer tax becomes due, which is borne by the buyer and varies according to the federal state. [9,6] It is advisable to become informed about the tax implications early on to minimise risks. A thorough examination of your personal situation is essential here to set the course for the real estate market.
Real Estate Market Germany 2025: Seizing Opportunities and Making Forecasts
The German real estate market shows dynamism in 2025. After a phase of falling prices, for instance, prices for existing houses fell by 11% compared to the previous year in spring 2024, a turnaround is now visible. [10,2] For 2025, price increases of an average 2% to 4% are forecasted, with some experts predicting 1% to 3%. [10,2,10,5]
Particularly in demand, and thus driving prices, are energy-efficient properties in urban areas. [10,2] The ECB's lowered key interest rates make real estate financing more attractive again, which boosts demand. [10,2] In March 2025, the average price for an apartment in Germany was around 3,400 Euros per square meter. [10,5]
These developments offer opportunities for both the sale of your apartment and the purchase of your new house. A current valuation of your apartment by Auctoa or an analysis with our ImmoGPT can help you determine the optimal timing and price. Use the market knowledge for your decision.
haus-kaufen-und-wohnung-verkaufen
The process of selling an apartment and buying a house is complex, but with the right preparation and strategy, it can be successfully managed. Accurate planning of time and costs, choosing the right financing, and understanding the tax framework are crucial. The current market situation in 2025 offers interesting opportunities. A professional valuation of your property and sound advice are essential.
Remember, every situation is unique. Whether you sell with an estate agent or privately, decide which form of financing is best for you, or how to make optimal use of tax advantages – all of this requires careful consideration. Use tools like Auctoa ImmoGPT for an initial assessment, or contact us for individual advice. This way, your dream of a new house becomes reality, while the sale of your apartment proceeds smoothly. Your journey to a new home begins with the first step – making an informed decision.
Additional useful links
Statistisches Bundesamt offers detailed data on house prices and building land in Germany.
Bundesbank provides a comprehensive indicator system for the German residential real estate market.
Wikipedia offers an informative overview of the property market in Germany.
Tagesschau provides information on current developments in the real estate market, interest rates and prices.
Statistisches Bundesamt delivers statistical tables on home ownership rates in Germany.
Bundesbank publishes data on interest rates for housing loans to private households in Germany.
Ifo Institut informs in a press release about experts' expectations for price increases in the global real estate market.
Deutscher Städtetag offers a publication with analyses of the residential real estate market in 2024.
FAQ
How long does it take to sell an apartment and buy a house?
The entire process can typically take three to six months or longer, depending on market conditions, financing arrangements, and individual circumstances. [1,3]
What is the speculation period in real estate sales?
The speculation period in Germany is ten years. If you sell a property within this period for a profit, speculation tax is usually incurred unless exceptions such as owner-occupation apply. [8,1,8,2]
What are the additional costs when buying a house in Germany?
The additional costs when buying a house (property transfer tax, notary, land registry, possibly an estate agent) amount to about 10% to 15% of the purchase price. [7,2,7,6]
Can I sell my apartment despite having an ongoing loan?
Yes, that's possible. Options include early repayment of the loan (potentially with a prepayment penalty), transferring the loan to the buyer, or exchanging the collateral for a new property, each subject to agreement with the bank.
What is the forecast for the real estate market in 2025 in Germany?
A moderate increase in real estate prices of about 2-4% is expected for 2025, particularly for energy-efficient properties in urban locations. Falling interest rates could further support demand. [10,2]
What role does the energy certificate play in the sale of a property?
The energy certificate has been mandatory since 2009 and must be presented to potential buyers at the latest during the viewing. The costs vary depending on the type of certificate (consumption or demand certificate) between approximately 50 and 500 euros. [3,3]
