Real Estate
House
private house sale process
Selling your home privately can be an attractive alternative to using an estate agent. But do you know all the steps and potential hurdles? This guide shows you how to successfully navigate the sales process. Do you need support with property valuation? Contact us for a professional assessment.
A private house sale offers the opportunity to save on realtor fees and optimise the selling price through personal initiative, which can increase profits.
The principle 'purchase does not terminate tenancy' and the possibility of termination due to personal need are central aspects when selling a rented house, which influence the potential buyers and the sale price.
A careful preparation with complete documents, a realistic pricing strategy, and open communication with tenants are crucial for a successful and smooth private property sale.
Overview of the Process of Selling a House Privately
The process of selling a house privately can seem complex, but with the right preparation and strategy, it can go smoothly. Initially, you conduct a market analysis and valuation to determine the optimal sale price. Then, you prepare an appealing property brochure that includes all the relevant information for potential buyers. Conducting viewings allows prospective buyers to get a sense of the property. After successful negotiations, the sales contract and notary appointment follow, where the sale is officially sealed. Finally, the property is handed over to the new owner. A detailed checklist helps ensure you don’t miss a step.
Reasons to Consider Selling Privately
A private house sale offers both advantages and disadvantages compared to selling through an estate agent. The biggest advantage is the cost saving due to the lack of an agent’s commission. Additionally, you have direct control over the entire sales process. However, a private sale also requires a greater time commitment and more initiative. You are responsible for the marketing, conducting viewings, and negotiations yourself. If you're willing to put in the effort, you may potentially achieve a higher profit. Find more tips in our article on selling property privately.
The Principle 'Sale Does Not Terminate Lease'
The principle 'Sale Does Not Terminate Lease' is a key aspect when selling a rented house. For buyers, this means they assume the existing tenancy agreement, and the tenants continue to enjoy protection against termination. This may limit the potential pool of buyers, as owner-occupiers might be deterred. It's important for sellers to be aware of this regulation and consider it when pricing. Learn more about the legal aspects of selling a rented property.
Notice of Termination for Personal Use: Conditions and Risks
A notice of termination for personal use is only possible under strict conditions. The landlord must prove that he needs the property for himself or for family members. Courts scrutinise these claims closely, and tenants can contest a termination, especially if there is a case of hardship. An unlawful notice of termination for personal use can have costly legal consequences. It is therefore advisable to seek legal advice in advance. Note that a notice of termination for personal use can significantly delay the sales process.
Mutual Termination Agreement as an Alternative
A mutual termination agreement can provide an amicable solution to ending the tenancy. The landlord and tenant agree on a specific date by which the tenant will vacate. Often, a vacation bonus is offered to encourage the tenant to move out. A mutual termination agreement offers both parties planning security and avoids lengthy legal disputes. However, the tenant must agree to the contract voluntarily. Such an agreement can be particularly useful if you are planning to sell your rented house.
Impact of Letting on the Sale Price
Letting a property significantly influences the sale price. Compared to vacant properties, there is a depreciation of 20-30% to expect. This is because potential buyers have limited usage options and must consider tenant protection. However, investors are often willing to pay a higher price for rented properties, as they can immediately generate rental income. It is important to consider the impact of letting when setting the price and, if necessary, consult an appraiser. A professional property valuation can provide clarity here.
The Role of an Appraiser
An appraisal is recommended to legitimise the sale price and obtain an objective evaluation of the property. An appraiser considers all relevant factors, such as the location, condition of the property, and rental income. An appraisal builds trust among potential buyers and can help justify the sale price. It also serves as a basis for negotiations. An independent appraisal is particularly important if you wish to sell your house privately.
Factors Influencing the Value
Various factors influence the value of a rented property. Reliable and solvent tenants are an advantage for investors as they guarantee stable rental income. The condition of the property also plays an important role. Modernisation measures and maintenance can increase the value. The location of the property is also crucial. A good location with good infrastructure and connection to public transport has a positive effect on the sale price. The impact of letting on property value should therefore be carefully analysed.
Property Investors
Property Investors are an important target group when selling tenanted houses. They are primarily interested in stable rental income and a good return on investment. Short-term personal use is of secondary importance to them. Therefore, when marketing, highlight the benefits for property investors, such as existing tenancy agreements and potential rental income. Targeted communication with property investors can speed up the sales process. Be sure to provide all relevant information about the investment property.
Tenants Themselves
Tenants themselves can also be potential buyers. According to § 577 BGB, they may have a right of first refusal if the property was converted into condominium ownership after they moved in and this is the first sale following the conversion. It is advisable to engage in early discussions with tenants regarding their purchase intentions. Even if there is no right of first refusal, selling to tenants can provide a straightforward solution. Open communication with tenants is crucial in this scenario.
Owner-Occupiers
Owner-occupiers pose a particular challenge since they wish to live in the property themselves. There may be a devaluation due to the existing tenancy agreement. Therefore, it is necessary to negotiate with tenants and potentially offer a tenancy termination agreement. Successful negotiation can increase the selling price and allow for a sale to owner-occupiers. Remember, an eviction notice for own use can be legally difficult to enforce.
Rights and Responsibilities During Viewings
There are certain rights and responsibilities to observe during viewings. As a landlord, you have a duty to announce and must notify tenants of the viewing in a timely manner. The viewing must be reasonable for the tenants, meaning it should not occur too frequently or at inconvenient times. Court rulings establish that three viewings per month between 7 and 8 PM for 30-45 minutes are reasonable. It is important to consider the tenants' interests and maintain a respectful attitude. The rules for property viewings should be followed.
Dealing with Refusal of Viewings
If tenants refuse the viewing, a tolerance lawsuit is the last resort. However, you must prove that damages have occurred due to the refused viewing. A tolerance lawsuit is often lengthy and costly. Therefore, it is advisable to first seek conversation with the tenants and find an amicable solution. Open communication and a willingness to compromise are crucial here.
Respectful Interaction with Tenants
A respectful interaction with tenants is essential for a smooth sales process. Inform tenants early about your sales intentions and keep them updated on progress. Avoid unnecessary pressure and conflicts. Transparent communication and information build trust and encourage tenant cooperation. This significantly contributes to a successful sale. Remember, selling the property also represents a change for the tenants.
Preparation of Sales Documents
Complete documentation is essential for potential buyers. This includes the land registry map, land register extract, energy certificate, and tenancy agreement. For condominiums, the declaration of division and business plan are additionally required. Ensure all documents are current and complete. Missing or incomplete documents can delay or even prevent the sales process. Therefore, careful preparation of the sales documents is imperative. The necessary documents for selling a house should be obtained in a timely manner.
Costs Incurred During the Sale
Various costs are incurred during the sale. This includes the costs for the energy certificate, land register extract, and possibly broker fees. The speculation tax may also be relevant if the property is sold within 10 years of purchase. In the event of early loan repayment, an early repayment penalty may apply. It is important to calculate all costs in advance to avoid financial surprises. A detailed breakdown of costs helps you keep track.
Tax Aspects
The speculation tax is an important tax aspect when selling a property. It applies if the property is sold within 10 years of purchase and there is no personal use. The trade tax may also be relevant if the sale is classified as commercial trading. It is advisable to seek tax advice in advance to examine the tax implications of the sale. Professional advice can help save taxes. Make sure you are informed in good time about the tax aspects of selling a house.
Professional Support
When selling a house, professional support can be very helpful. An estate agent can assist with marketing and negotiations, while a surveyor provides an objective valuation. The choice between an agent and a surveyor depends on your personal needs and knowledge. If you are well-versed in the property market, you can handle the sale yourself. Otherwise, the support of a professional is advisable. An experienced agent knows the market prices and can help you achieve the best price.
Targeted Marketing to the Right Audience
Targeted marketing is crucial for a successful sale. Specifically address investors, tenants, or owner-occupiers and highlight the benefits for each audience. Create an attractive property brochure that includes all relevant information. Use online platforms and social media to reach potential buyers. Professional marketing can speed up the sales process and increase the sale price.
Open Communication with Tenants
Open communication with tenants is essential for a smooth sales process. Inform tenants early on about your intention to sell and keep them updated on progress. Discuss possible solutions with them, such as a tenancy termination agreement. Transparent communication builds trust and encourages tenant cooperation. This significantly contributes to a successful sale. Remember that an open conversation can often work wonders.
Inadequate Preparation
Inadequate preparation can lead to issues when selling a house. Ensure you have all relevant documents and that the legal situation is clear. A thorough examination of all pertinent documents is essential. Address any outstanding questions in good time to avoid delays. Good preparation is half the battle. Familiarise yourself with the entire process.
Conflicts with Tenants
Conflicts with tenants can significantly affect the sales process. Disputes over viewings or terminations are not uncommon. A respectful approach and willingness to compromise are crucial. If necessary, professional mediation can help resolve conflicts. Avoid putting pressure on or threatening tenants. An amicable solution is always the best option.
Incorrect Pricing
Incorrect pricing can result in the house either staying on the market for too long or being sold below value. Therefore, an objective valuation by a surveyor is advisable. Consider the market conditions and the specifics of the property. Realistic pricing is critical for a successful sale. Compare the prices of similar properties in your area to get a sense of the market. A professional valuation can help you find the right price.
Summary of Key Points
A successful house sale despite leasing is possible if you observe the legal framework, consider tenant interests, and seek professional support. Careful preparation, realistic pricing, and open communication with tenants are crucial for success. With the right strategy, you can successfully sell your house privately.
Trends and Developments in the Property Market
The property market is constantly changing. The increasing demand for investments has a positive impact on the sale of rented properties. The importance of energy efficiency and sustainability is also growing. Stay informed about current trends and developments to optimally adjust your sales strategy. Modern fittings and low energy consumption can increase the selling price.
Outlook on the Future of Private House Sales
Digitalisation offers new opportunities for private house sales. Online platforms and virtual viewings simplify the sales process. Automated processes and simplified procedures save time and costs. Use digital opportunities to successfully sell your house privately. The future of private house sales is digital and efficient.
Would you like to have the value of your property accurately assessed? Our experts at Auctoa offer you a sound valuation based on the latest technology and years of experience. Contact us today to learn more about our services and start your successful house sale: Contact.
Find out about the legal aspects of selling a rented property on the KSK-Immobilien website.
Heid Immobilienbewertung offers a professional property valuation to clarify the sales value.
Read more about the impact of renting on property value at Immowelt.
The Bundesfinanzministerium provides information on the speculation tax for property sales.
What are the advantages of a private house sale compared to selling with an estate agent?
A private house sale allows you to save on the estate agent's commission and maintain full control over the sales process. However, it does require more time and individual initiative.
What does 'Kauf bricht nicht Miete' mean when selling a rented house?
The principle 'Kauf bricht nicht Miete' means that the buyer takes over the existing rental agreement and the tenants continue to enjoy protection from termination. This may limit the potential buyer pool.
Under what conditions is a termination due to own needs possible?
A termination due to own needs is only possible under strict conditions. The landlord must prove that they need the property for themselves or for family members. Courts scrutinize these claims very closely.
What is a termination contract and when is it advisable?
A termination contract is a mutual agreement between landlord and tenant to end the rental relationship. It is advisable if you want to sell the house empty and offer the tenant a vacation premium.
How does renting out affect the sale price of a house?
Renting out a property can lead to a devaluation of 20-30% compared to vacant properties. However, investors are often willing to pay a higher price for rented properties.
What role does an appraiser play in the sale of a rented house?
An appraisal legitimizes the sale price and provides an objective assessment of the property. It builds trust with potential buyers and serves as a basis for negotiations.
Which target groups are relevant when selling a rented house?
When selling a rented house, investors, the tenants themselves, and owner-occupiers are relevant target groups. Investors are interested in stable rental income, while owner-occupiers wish to live in the property themselves.
What documents are required for the sale of a rented house?
To sell a rented house, you need, among other things, the cadastral map, land register extract, energy certificate, and the tenancy agreement. For condominiums, the declaration of division and the business plan are also required.
