Tips for private sellers

In times of instant online services and 321 mein, many people want to avoid any complications when selling their house and ideally have sold it yesterday. Unfortunately, selling a property is more complicated than many imagine.

Both legal and bureaucratic hurdles exist that private sellers should be prepared for. Therefore, it is essential to gather comprehensive information; otherwise, these hurdles can prove extremely costly.

To prevent this from happening to you, we have compiled an overview of the requirements and obligations for private sellers on this page, as well as tips and checklists to help you successfully sell your house privately.

plan the sale

When should I sell?

Perhaps you've already wondered whether now is the right time to sell your house. Or more generally, when is the right time to sell one's house? Often, a property sale is triggered by external circumstances, such as a divorce, the arrival of a new baby, or other changes.

The best time to sell your house is when there's high demand and interest rates are low. However, your personal needs should take priority. Don't wait for the "ideal" moment. You might end up under time pressure and/or financial strain, forcing you to sell below your desired price because you haven't had enough time for proper marketing!

Do you have enough time?

As a private seller, plan for approximately 5 to 6 months to sell your house. From dealing with authorities and other bureaucratic hurdles to viewings, notary appointments, and key handovers, you should expect frequent interruptions to your usual daily routine. Make sure you have enough flexibility in your time to handle all aspects (marketing, phone calls, bank meetings, etc.).

How does the financing work?

When selling your property privately, don't rely on statements like "Financing is no problem." Without solid financing secured by the prospective buyer's bank, a safe sale is impossible for you.

It is in your interest to separate "real estate tourists" from genuine, qualified prospective buyers through financing.

Reservations

Only agree to a reservation if the prospective buyer can provide proof of financing from a bank.

Private sellers often fail at selling their homes privately because they accept reservations, only for the buyer to have poor financial planning and be unable to secure financing from the bank. This results in wasted time and potentially alienating other interested parties.

The selling price

As a seller, you naturally want to get the best possible price for your house. After all, you've invested a lot of time and effort! But here too, supply and demand determine the actual price. Research current regional market prices and compare your house with similar properties nearby where you also know the actual selling price.

If you want to determine the value as accurately as possible, you should consider the following factors:

• The condition
• Year of construction of the property
• (Property) size of the property
• The architectural style (is it currently in demand?)
• Energy value, thermal insulation
• Location, location, location!
• Renovations, refurbishments, renewed aspects

There are several ways to value your property, such as the income approach, the sales comparison approach, and the income approach. Find out which method is best suited to your situation.

Documents & Bureaucracy

Selling a house, especially for private sellers, involves a considerable amount of bureaucracy and numerous trips to government offices. Missing documents can arouse suspicion among potential buyers, and for many documents (e.g., the energy performance certificate), you as the seller are even obligated to provide them without being asked – otherwise, you risk penalties.

The most important documents you should definitely have on hand:

• Land register extract
• Cadastral map
• Floor plan drawings
• Living space calculation
• Site plan
• Building permit certificate
• Building plans
• Energy certificate
• Valuation report
• Property tax assessment
• Extract from the register of building sites and contaminated sites
• Proof of residential and usage rights
• Certificate of development costs
• Operating and ancillary cost breakdown for recent years

If your property is a condominium, you will also need the following documents:

• Declaration of Division
• Owners' meeting minutes
• Housing benefit statements

The preparation

Once everything is planned, the final step before starting the sale is to tidy up the house and prepare it for potential buyers. This means:

• Clean up
• Mucking out
• Take (or have taken) high-quality photos!

High-quality photos are crucial and can significantly increase the perceived value of your property. Conversely, poor-quality or unprofessional photos diminish its value and negatively impact the overall impression potential buyers have. If you lack extensive experience with cameras and lighting, we recommend hiring a professional photographer. A skilled photographer will deliver added value many times over their fee when it comes to the sale.

Advertising the property

Now we can get started! In our experience, it is far more effective to heavily advertise a property over a short period (up to 5 months) than to occasionally place a single ad and see what happens.

Long listing times suggest a poor-quality property, and potential buyers are more likely to wait until the selling price drops – you lose money.

To reach as many interested parties as possible as private individuals, we recommend the following methods:

Online ads

There are numerous real estate portals, and many prospective buyers search on all of them.

Online portals offer a wide reach, but to advertise on all portals you have to list the property individually everywhere, not to mention paying for each individual portal.

Exposé & Flyer

The property brochure with text and images is the ultimate calling card for potential buyers.

The text should do justice to your property and mention all important aspects, such as the number of rooms, (plot) size, renovations carried out, and similar information.

Printed flyers are ideal for distributing in your own neighborhood. Few private sellers realize that a large proportion of properties are sold or brokered by people from the neighborhood!

Give printed flyers or brochures to prospective buyers during or after a viewing so that they are constantly reminded of the property and have something to "want".

For Sale sign

A "For Sale" sign in front of the house attracts attention and has a considerable word-of-mouth propaganda effect.

In high-traffic areas, the sheer number of people who see it is a major factor. But it's also a factor in less busy areas due to the aforementioned "neighborhood effect".

Qualifying interested parties

Try to gather some information about the caller over the phone. Ask for their name, address, and phone number before giving out your own. This way, you can check in the phone book, for example, whether the caller is providing correct information.

Find out what the prospective buyer is looking for. Ask how many people will be moving in, if there are any specific requirements, and when the move is planned. This will help you determine whether a viewing is worthwhile. A serious buyer will also have answers to these questions. Anyone with ulterior motives beyond simply buying a property will likely stammer and hesitate. In that case, proceed with caution.

If all your questions are answered to your satisfaction, there's nothing wrong with you providing further information. However, don't try to sell your house over the phone! Schedule a viewing appointment.

Visits

Viewings are often a problematic part of selling a house privately, as many people work and cannot manage their time as flexibly as potential buyers would like. You should set firm viewing times that work for you and during which you can always be available for potential buyers.

Warning! Avoid statements like “I can’t make it on Tuesday, I’ll be out all day.” You have just told a stranger, who may already know your property address, when you will be away from home.

Please do not give your address to any unknown prospective customer before you know who you are dealing with and have had the opportunity to verify their identity! Certainly, very few callers have malicious intentions. This example is simply meant to remind you that a certain degree of caution is advisable and that you should be prepared to answer the questions you will be asked .

Of course, there are also tricks you can use during the viewing itself to avoid problems .

conduct negotiations

In advance, define a “pain threshold” below which you do not want to fall (based on the valuation ), and define a negotiation margin based on this pain threshold.

Assume that potential buyers always want to experience a “negotiation success”; the feeling of having negotiated a good price.

Consider in advance what criticisms potential buyers might raise and prepare counterarguments. Key critical issues are primarily the price, the handover date, and the payment deadline. Compare these points with those in your own plan and consider where you can be more accommodating and where you need to make firm demands.

As a private seller, you are responsible for reviewing the purchase agreement and the notary contract . The notary merely confirms the intentions of both contracting parties; it is not their responsibility to verify whether both parties have been treated fairly.

Conclusion

Selling your own house privately is possible, even if it involves a lot of effort. If you're a risk-taker who enjoys meeting new people and loves personal challenges, a private house sale might offer just the kind of challenge you're looking for.

If security, comprehensive support and constant, personal advice from a professional are important to you in such a sensitive activity, we would rather recommend a professional real estate agent.