Openly communicate defects – and enforce price expectations
Properties without defects are rare. However, a defect becomes a problem for the seller precisely when attempts are made to hide or downplay it. This gives potential buyers a welcome excuse to negotiate the price down. The better tactic: During viewings and even in the property listing, openly address everything that could be perceived as a disadvantage and explain that your asking price takes these defects into account.
If the asking price is based solely on your gut feeling or the results of an online price calculator, it won't be convincing. You should have the selling price determined by a professional valuation that also takes any potential defects of the property into account.
Concealing defects? A mistake!
For a professional real estate agent, marketing a property always begins with a thorough on-site valuation, taking all individual characteristics into account. This alone protects you from a mistake that can easily prove fatal for private sellers: attempting to achieve a higher price by not explicitly mentioning defects and presenting the property in a better light than it actually is. For example, the constant rush of traffic is quickly touted as "ideal transport links." For prospective buyers, purchasing a property involves a significant sum of money, and they often know exactly what to look for during a viewing. If they get the impression that the seller is hiding or embellishing something, they quickly consider the price inflated. They may then either withdraw from the purchase altogether or actively search for defects to use as leverage in price negotiations. As a seller, you can easily be cornered in this way, instead of being able to assert your desired price.
Clearly identify shortcomings and target group
If defects are openly communicated, potential buyers can no longer use them as leverage to drive down the price. Your asking price is the result of a thorough valuation and already takes these defects into account. Therefore, a potential buyer should and must know everything about them – they will examine your property with a highly critical eye anyway. On the other hand, what constitutes a problem for different prospective buyers varies greatly. For example, the lack of a garage might be a deal-breaker for a passionate car enthusiast, while it wouldn't matter to others. A tradesperson who might be planning some renovations to the property anyway will be able to live with minor repairs that other potential buyers might fear would incur significant additional costs. By being transparent about defects, you'll quickly find the right target group for whom your property is truly suitable. An experienced real estate agent can help you strike the right tone when communicating defects.
Do you have further questions about strategic communication with potential buyers and the marketing of your property? Then ask us! We'd be happy to advise you!
You can find more information here:
https://www.zeit.de/wirtschaft/2021-03/immobilien-renovierungskosten-wohnungen-kaeufer-schadenserstz
https://www.mdr.de/ratgeber/recht/bundesgerichtshof-mehr-rechte-kaeufer-immobilien-maengel-100.html
Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.
Photo: © orensila/Depositphotos.com
About the author
Harry Mohr
Real estate agent (Chamber of Industry and Commerce)Harry Mohr, author of this article
