Selling Property in Germany Guide

Prices in Germany have risen at a rapid clip over the last quarter, much faster than they have for almost 10 years. Foreign investors are buying property in Germany attracted by the low interest rates offered by the German banks.


Property values have jumped by 5.2 percent from a year earlier, with multifamily homes gaining 7.2 percent in price. Condominiums have risen just 2.6 percent in value. But the overall trend is of a rise in property prices, all across the board in Germany.


Foreign investors love the rental income they get to earn from their property investments in Germany. Rental incomes from German properties are really quite high, in comparison to the low yield got from the fixed income market. In fact, the rental income is even higher than the mortgage rate in Germany, which is why buying property here is back in fashion.


And it is clear that foreign property buyers, whether from China or Russia are the most important buyers of German property. Foreign investment in German property is actually 30% higher today than it was back in 2007, just before the global property market crisis.




How to Sell Property in Germany?


Selling property in Germany means getting in touch with a reputable real estate agent first. You will want to hire a top-of-the-line real estate agent, who has extensive connections with foreign buyers, especially rich, high net worth property investors from China, Russia and the Middle East.


In Germany, only the seller is supposed to pay the real estate agent his commission. This fact should be kept in mind by you and the commission will cost you anywhere from 3-5% of the property price.


The biggest issues in selling property in Germany are related to tax. You can sell a property in Germany without paying tax on the profit only if you have held it for at least 10 years.


Mind you, the profit, on the basis of which the property tax will be calculated, will include depreciation on the property – this is something you should take full advantage of. In fact, because of depreciation, when you sell an old property in Germany, it is practically tax free, so you are at a huge benefit here.


The other thing to keep in mind while selling property in Germany is to set the right selling price. For advice on this consult your real estate agent, and search real estate websites for information on the average home prices in your area.


Never set a price that is 5% higher than the average – remember, Germany is a highly conservative country where property prices are generally very moderate. So, if you overprice the property, it’s likely to remain unsold.


Take care of the property, have it renovated without overextending your budget on it, and be there to receive every prospective buyer. And, never come across as overeager or desperate to sell. Explain your reasons for selling clearly.


It often takes a long time to successfully complete a property transaction in Germany because of all the rules and regulations. So it is important not to lose your patience during the process. Use the sell overseas property contact form if you need help in selling a property in Germany.


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