In a property valuation, the probable selling price achieved in the current German real estate market is determined. The determined value is a mixture of the value of the buildings and the value of the land plot. In order to arrive at the current selling price, your property must be analyzed. The condition of your property plays an important role.

The following questions must be answered during the property valuation:

  • What is the condition of the house/apartment?
  • Has it been well maintained?
  • When was the house built, and what is the building material like?
  • How many apartments does the house have?
  • How many square meters does the property have?
  • Is it in need of renovation?
  • Does it have good equipment and modern sanitary and heating systems?
  • Does it meet the current energy standard?

Here the individual conditions of your property must be considered in particular. If the property is rented, further criteria, such as the vacancy rate, the perspective of the tenants, and the rental price per square meter, are added to the valuation.

The location of the property is also very important and can be divided into micro and macro layers.

Micro layers refer to the immediate environment. Are there doctors, shops, cafés nearby? The macro layer refers to the wider surroundings, for example the district. As locations grow, a new traffic connection can be a plus, while the construction of a busy road in front of the property a minus.

All these factors are weighed against each other and the property is compared with similar properties that have already been sold. In addition, the city where the property is located must be taken into account when valuing the property. In each of the top seven German cities, such as Munich, Berlin, Frankfurt am Main, Hamburg, Düsseldorf, Stuttgart, and Cologne, different market conditions and regulations prevail in the real estate market.

A professional real estate valuation in Berlin

If you own a property in the German capital and want to evaluate it, you need to learn about the Berlin market. The Berlin real estate market is particularly influenced by high demand, scarce supply, political measures, and changes in locations.

In 2018, 31,000 people moved to Berlin. The Senate speaks of 300,000 additional apartments that Berlin would need. Political measures can be found, among other things, in the development of building land, where the quota for rent and occupancy-linked housing is increased. If social and technical infrastructure is a prerequisite or consequence of housing construction, investors are obliged to bear the costs.

Another important regulation is the introduction of mileage protection areas in Berlin, where the conversion of flats into condominiums must be approved by the city. Currently, the rent cap is being discussed in Berlin which is to apply for a term of five years. A final decision has not yet been made here.

There is also a rent break in Berlin. Since Berlin is particularly popular with young people, new trendy areas are constantly emerging as a result of the influx which results in a rise in rents. All these additional influences must be taken into account when determining the selling price. Only then can a purchase price in line with the market arise.

Selling your property in Berlin

If you have valued your property in Germany or Berlin, you are prepared to sell your property. By being informed on the current market in your city and the development opportunities, you go prepared into the sale. You do not run the risk of offering your property at an unrealistic price. In addition, you can individualize the marketing. Which target group does your property appeal to? Which advantages does it offer prospective customers? On which channels can you best market your object? The aim of property valuation is to find the right buyer at the highest price.

How to make the right choice for real estate sales in Berlin

You should avoid the following mistakes when valuing and marketing your property. Often the necessary organization is missing. A sale of real estate must be planned precisely especially when it comes to timing for selling your property.

This needs detailed preparation.

  • By when should the property be sold?
  • How long should it be marketed?
  • When can the tours take place and by when must the money be paid?

People who are not active in the real estate industry often lack the right contacts. With the wrong craftsmen, notaries, lawyers, etc., the sale can drag on unnecessarily. The know-how about marketing should also be available. You should be familiar with the different marketing channels, target groups, and strategies.

If you want to sell your property in Berlin, it is important to know the exact circumstances and details of the property, including the exact numbers and facts, and to have the necessary documents on hand. The financing of the sale must also be considered. What will the marketing cost me? When would I like to receive the money from the sale? Should the money then flow into another project? Of course, sales skills are also required in the negotiations. One of the biggest mistakes, however, remains the incorrect price estimate.

Work with a professional and international agency

If you are not yet familiar with real estate valuation and sale in Germany and particular Berlin, it is advisable to hire a real estate agent. A real estate agent assesses your property professionally and free of charge. An individual selling price is determined on the basis of various analyses, such as the SWOT analysis and the comparison procedure.

A real estate agent knows the local conditions and can see trends coming and going. A professional real estate agency uses the property valuation for a subsequent marketing and sales strategy. This will be tailor-made for your property. Your property will be marketed in a targeted manner and continuously managed. If you wish, the broker will carry out the inspections and negotiations. In addition, you benefit from an extensive network of experts.

Article contributed by AB Real Estate GmbH

The Berlin real estate agency, AB Real Estate GmbH, is active throughout Germany with a focus on Germany’s top seven cities: Munich, Berlin, Frankfurt am Main, Hamburg, Düsseldorf, Stuttgart, and Cologne. Our international team of real estate experts has worked for years in the real estate industry and know the German real estate market and all of its trends and local conditions. Real estate buyers and sellers meet local competence and are part of an international network. You benefit from a free property valuation which includes an individual marketing and sales strategy. With a professional real estate agency like INVEST-AB, you will achieve the highest price for the sale of your property in Germany. INVEST-AB sees itself as your strategic partner for a successful sale.

INVEST-AB – The international real estate agency with local competence
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