How to accurately price your home when selling without a broker.
This is the first in a series of articles looking at the various aspects of selling your home without a real estate agent.
With the Berlin property market still one of Europe’s strongest, many people are looking to sell their homes, and the question always arises: Do I need a real estate broker? Deciding to sell your home is a very personal choice that is dependent on many factors. Are you moving abroad? Do you want to upgrade or downgrade? Do you need more space for a family or less space once the kids have moved out? Whatever it is that drives the decision to put your home on the market, if you’ve decided to sell without a real estate broker one of the most important things you’ll need to do is accurately figure out the pricing of your home.
Knowing the current property value of your home can depend on multiple factors, so you’ll need to do ample research in order to settle on a good price for your home. Both over and under estimating the value of your home can be very detrimental to the selling process. That being said, if you’re in a hurry to sell your home, you’ll more likely need to slightly underprice. Determining the value of your home, though, requires knowledge of the current market both in your city as well as in your neighborhood and the quality of the home itself.
We suggest that home sellers meet with 2-3 real estate companies in order to get more details on current prices in their area and a better calculation of the elements of their home that can increase or decrease the property value. In Berlin, getting a professional estimate is free, so it’s well worth investing the time to meet with a few different companies. Be sure to thoroughly research the companies as well. A good website and reviews are a strong start, but make sure that the real estate agents have solid knowledge about your specific market. Also, understand that the asking price is not often the selling price. You’ll want to price your home with wiggle room for negotiation.
If you’ve put time and effort to renovate your home, you’re more likely to be able to ask for a higher price than if you have left things the same as when you first bought it. Previously, we have written about a few of the things that add value to a home. You can read that here. In short, renovations to the bathroom, kitchen, flooring and electricity appliances are the most important in raising the value of your home. If you haven’t been renovating over the time that you’ve had the property, it might also be worth doing so before putting your home on the market, depending on the state of the aforementioned elements.
While Berlin is expanding and certain areas are becoming more popular than they once were, there is still a difference in market value depending on where your home is situated. Selling an apartment in Mitte will yield a different return than selling the same apartment in Zehlendorf, so research homes and apartments similar to yours that are currently on the market to get an idea of asking price.
While we understand that choosing to sell your home is a personal decision, we also know that selling your home without a broker can cause a lot of stress, so Black Label Properties sells properties free of charge to vendors. Find more information here.
Here’s a list of documents you might also need when selling your home in Berlin. You can find these terms in German here.
- Declaration of division (not for single-family home)
- Minutes book (not for single-family home)
- Minutes of owner meetings for the last 3 years (not for single-family home)
- Prefabricated floor plans with an official stamp from the architect
- Current economic plan (not for single-family home)
- Overview of renovations in the last 10 years
- Information from liabilities – und easements
- Current land register
- Official site plan of the property
- Confirmation from the property manager that there are no outstanding residuals (not for single-family home)
- Copy of property insurance
- Energy certificate (Cost c. 50€-150€)
- Proof of property tax amount from the last year
- Administrator contract between you and the property management company (not for single-family home)
- Under certain circumstances, a further expert opinion will be required. (Cost c. 1000€ – 3000€)