Selling a property - waiting for the right time?

The decision has been made - the property is to be sold. But when is the right time to sell your property? Is there even such a thing as the right time? What can owners make the sale dependent on?

Basically, there is no one moment to sell a property. But there are times when a sale is most likely to bring benefits for the owner. However, there are always situations in life where the project cannot be postponed for long.

Market observation

In times of low interest rates, high demand and even higher property prices, owners can achieve good sales prices. During periods of high interest rates, however, demand for real estate decreases as many prospective buyers cannot afford a real estate loan. This leads to a fall in prices on the real estate market. The European Central Bank has currently announced an interest rate hike. Depending on how the situation develops, demand and therefore property prices could fall.

However, real estate prices and values also differ from region to region. With their knowledge of the market, real estate agents are best placed to find out how local real estate markets are developing.

Condition of the property

The right time can also depend on the structural condition of the property. If no necessary maintenance and repair work has been carried out for years, this reduces the property value and therefore also the potential property price.

If owners value the highest possible sales price or are even dependent on it, it is advisable to eliminate maintenance and repair backlogs. Modernization can also increase the value of a property. It is best to discuss with a real estate expert which measures really make sense in order to achieve a higher sales price.

If the property is not to become a bargain

There are situations in which a quick sale is necessary. For example, when a forced sale is imminent. To avoid this and to avoid selling the property below its value, it is advisable to sell as quickly as possible with the help of a real estate professional. This is because inexperienced sellers in particular can make mistakes that prolong the sale or lead to a sale below value.

Avoiding speculation tax

In order to avoid the speculation tax due, owners must live in the property themselves for 36 full calendar months (3 years) and be registered in the property. Incidentally, speculation tax is also payable on forced sales.

Are you thinking of selling the property or do you have any questions? Then contact us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

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.

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