Is there an optimal time to sell a property?
4 min.
Your circumstances have changed and you are thinking about selling your property. But you don't want to rush things and are waiting for the right time when you can get the best possible price on the real estate market. But when exactly is that time?
Anyone who decides to sell their owner-occupied property usually does so when their personal life situation has changed or a change is imminent. Typical reasons for selling include a job-related relocation, a divorce, an expansion of the family, children moving out or old age. Or it may be the case that you have inherited a property and are giving up the one you previously lived in.
What leeway remains for the time of sale?
The urgency of the reason for the sale also determines how quickly the owner wishes to sell. In the event of a divorce, for example, or if there is a sudden career change, the focus is often on selling the property as quickly as possible. There is a little more flexibility and time to look for a new home when it comes to upsizing or downsizing. In this situation, many owners consider whether it makes sense to delay the sale a little longer in order to wait for the "ideal time".
Owners who use their property as an investment are certainly even more concerned about the right time to sell. The first thing to do here is to wait for the speculation period of 10 years, as otherwise you would have to pay speculation tax on the profit made. However, owners who have lived in the property in the two years prior to the sale are exempt from speculation tax. After the 10-year period has expired, many investors feel the time has come to sell the property, but wonder whether the market situation might not offer more in one, two or five years' time.
How sensible is it to wait for an (even) better time?
Although often assumed, purely atmospheric factors such as the time of year have no influence on the sale of a property. However, low interest rates and a good economy are important indicators. This is when demand is high and potential buyers are willing to invest - which indicates that it is a good time to sell. In this respect, it naturally makes sense to look at the development of both the real estate market and the economy as a whole. The location of the property can also undergo a development that needs to be monitored. If your property is located in a district that is developing into a trendy neighborhood, the price will also rise.
On the whole, however, it has to be said that the ideal time to sell is very difficult to predict. Not only amateurs, but even experts are often wrong with their forecasts of expected market developments, and the best sale is still the one that not only achieves a good price, but is also completed quickly. A professional estate agent can support you in this and, in case of doubt, get more for you than you could gain by waiting for the optimum time to sell.
Are you thinking of selling your property? Get in touch with us! We will be happy to advise you.
You need further information:
https://www.deutschlandinzahlen.de/tab/deutschland/finanzen/preise/immobilienpreisindex
https://de.wikipedia.org/wiki/Immobilie
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
Photo: © maxxiustas /Depositphoto
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