Sale of a Condominium – Your Path to Success with SCANDIC ESTATE

Welcome to SCANDIC ESTATE, your expert for real estate within the LEGIER BETEILIGUNGS MBH group, which also includes SCANDIC PAY and SCANDIC TRADE. Are you looking to sell your condominium and unsure where to start? We guide you step-by-step through the sales process – from incurred costs and tax aspects to optimal marketing. Our goal: to secure the best possible sales success for you. Learn everything you need to know in advance here!

What Costs Are Involved in Selling a Condominium?

Selling a condominium involves various costs that you, as the seller, should consider. Careful planning helps minimize these and avoid surprises. Typical costs include:

  • Brokerage Fees: If you hire a real estate agent, a commission is incurred, which, since 2020, is usually split between buyer and seller. The amount varies by federal state.
  • Marketing Costs: These include professional photos, listings on portals, or creating a high-quality exposé.
  • Property Enhancement / Home Staging: Minor renovations or professional home staging can increase the sale value.
  • Appraisal: A market value appraisal builds trust with buyers and justifies the price.
  • Energy Certificate: Legally required since 2014 for sales or rentals.
  • Loan Interest: If a loan is paid off early, a prepayment penalty may apply.
  • Taxes: Depending on usage and ownership duration, a speculation tax may apply (see next section).

With SCANDIC ESTATE, you receive a transparent cost overview and support to manage these items efficiently.

What Taxes Are Involved in the Sale?

Tax aspects are a crucial factor in selling a condominium. Here are the key regulations:

  • Owner-Occupied: If you have lived in the condominium yourself, the sale is tax-free – even if you exclusively occupied it in the year of sale and the two preceding years (§ 23 EStG).
  • Rented Condominium: If the condominium was rented, no speculation tax applies if you owned it for at least ten years. Otherwise, the profit is taxed at your personal tax rate.
  • Commercial Trading: If you sell three or more properties within five years, the tax authority classifies this as commercial trading, requiring additional trade tax.

Our experts at SCANDIC ESTATE provide tailored advice to avoid tax pitfalls and optimize your planning.

When Is a Sale Considered Commercial?

A commercial real estate sale occurs if you sell three or more properties within five years. In this case, you must not only pay income tax on the profit but also trade tax. Strategic planning is essential to avoid this classification – for example, by timing your sales appropriately. SCANDIC ESTATE supports you with customized solutions to remain a private owner.

The Role of the Owners’ Association

The owners’ association (WEG) often plays a larger role in selling a condominium than many realize:

  • Consent: In some cases, the WEG requires written consent from all or a majority of members. Without this, a purchase contract is invalid.
  • Reasons for Rejection: Possible reasons include the buyer’s lack of creditworthiness or incompatible usage plans (e.g., commercial use in a residential complex).
  • Recommendation: Even if consent is not required, involve the WEG early to avoid conflicts.

At SCANDIC ESTATE, we are well-versed in the legal nuances of the Condominium Act (WEG) and help you navigate this step smoothly.

When Is the Right Time to Sell?

The question “Sell now or wait?” concerns many owners. Here are some pointers:

  • Market Trends: After years of low interest rates and significant price increases, value growth is now more moderate, but condominiums remain in demand – especially in prime locations.
  • Location as an Asset: Urban areas with proximity to jobs and infrastructure continue to promise high sales proceeds.
  • Interest Rate Shift: Higher interest rates may dampen demand but do not make homeownership unattractive.

With our market expertise at SCANDIC ESTATE, we identify the optimal time for your sale, tailored to your property.

Sell With or Without a Broker?

The decision to sell with or without a broker depends on your time, budget, and experience. Here are the pros and cons:

Without a Broker

  • Advantages: You save the commission (often 3-6% of the sale price), retain full control, and can pass savings to the price.
  • Disadvantages: You bear the entire effort – from valuation to transaction completion.

With a Broker

  • Advantages: Market expertise, professional marketing, legally secure handling, and often a higher sale price.
  • Disadvantages: Costs are incurred, split between buyer and seller (regulated by law since 2020).

SCANDIC ESTATE, as your professional partner, offers comprehensive support – from valuation to notary appointment – to maximize your sales success.

How Much Does a Broker Cost?

Since 2020, the broker’s commission is split equally between buyer and seller and varies by federal state (e.g., 3.57% incl. VAT in Bavaria, divided as 1.785% per party). Our services at SCANDIC ESTATE are transparently priced – you know exactly what you’re paying for and the value you receive.

How Does the Sale of a Condominium Work?

The sales process is divided into four phases, which we explain in detail:

1. Preparation

  • Valuation: Use our free property value calculator or have a professional appraisal done. Factors like location, furnishings, and building condition are key.
  • Documents: Compile land register excerpts, energy certificate, floor plan, division declaration, etc.
  • Enhancement: Minor measures like new fixtures or home staging increase value.
  • Prepayment Penalty: Loan repayment may incur a penalty (approx. 1% of the remaining debt), unless exemptions apply (e.g., after the fixed-rate period).

2. Marketing

  • Strategy: Define your target group (e.g., families or seniors) and choose suitable channels (portals, social media).
  • Exposé: High-quality photos and compelling text are your calling card.
  • Viewings: Present the condominium optimally prepared – clean, homely, with all documents ready.

3. Transaction

  • Negotiations: Set the price strategically (e.g., 105-110% of value) and retain room for negotiation.
  • Credit Check: Ensure buyers are financially sound (e.g., via Schufa report).
  • Purchase Contract: The notary drafts a preliminary contract for review before signing the final contract (§ 311b BGB).

4. Handover

  • Notary Appointment: The sale is legally finalized, with costs typically borne by the buyer.
  • Land Register Entry: Ownership transfers after payment and land transfer tax (§ 873 BGB).
  • Handover Protocol: Document the condition, hand over keys and documents.

Your Partner for Real Estate Sales

At SCANDIC ESTATE, you benefit from our expertise, market knowledge, and comprehensive service, saving you time, stress, and costs. Whether with a broker or on your own – we support you to achieve the best possible price for your condominium. Contact us today for a free initial consultation!

Note: This article considers relevant legal provisions such as § 23 EStG (speculation tax), § 9 GrEStG (land transfer tax), and the Condominium Act (WEG).

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