If you are thinking of selling a property in Berlin, then there are several things you will need to consider and steps that need to be completed before the deal is final-ized. You also will need to consider the tax implications of your sale.
Berlin is a Seller's Market
The first thing you need to know is that Berlin is one of the hottest seller's markets in the world. The need for housing far exceeds the available housing market. In fact, the average real estate investment in Berlin has gone up over seven percent in val-ue year-over-year for the last decade. Therefore, you are likely to earn more by sell-ing your house or apartment than you paid for it. Keep in mind that capital taxes can take up to 25 percent of your money.
Determine an Asking Price
You need to determine the asking price before you put your home on the market. Many simply take the value they paid for the home and add the cost of supplies and time that they put into renovations. Keep in mind that if your property is located in an apartment complex, changes in common areas may increase or decrease the value of your investment.
The second way to determine the value of your investment is to have it professionally inspected. A real estate agent or surveyor, can go to your property and give you their best estimate. These individuals are available through several different organizations including the Chamber of Architects or DEKRA. If you decide to work with a real estate professional, then they may help with this service.
Get the Property Ready for Sale
Since Berlin is a seller's market, you can often sell your property without making any renovations or fixing any problems. Doing minor repairs and sprucing up your prop-erty often helps to get more money for your property.
Get Your Documents Ready
You need several documents to sell your Berlin property. You will need:
- Layout plan- Called the Grundriss, this document shows the exact measurements of your property.
- Certified Abstract From the Land Register- Called the Grundbuchauszug, this is the official property deed from the city.
- Declaration of Division- Called the Teilungserklärung, this document shows the lo-cation of the property in relation to adjoining properties.
There are also many other documents that may be beneficial. Most of these docu-ments pertain to flat owners who are ready to sell their Berlin property. In general, you will need any official documents produced by your flat's owners in addition to the minutes of the last three owner meetings.
Tax Implications of Selling Real Estate in Berlin
It is very wise to consider the tax implications of selling a property in Berlin. You may have to pay three different taxes:
- Spekulationssteuer- You may need to pay this tax if you do not currently live in the property or have not lived in it over the course of the last three years.
- Gewerbesteuer- If you have bought and sold more than three properties in the last five years, then you may need to pay this tax.
- Umsatzsteuer- Must be paid if you are buying and selling properties as a commercial activity.
However, if you are selling a property that you owned for more than 10 years then you would be able to sell 100% tax free.
Finding the Buyer
One of the reasons that you should work with a professional real estate agent is that buyers must be found and vetted. Then, documents must be notarized before the sale is completed. A trusted international real estate professional can take care of many of the details leaving you to concentrate on other important matters. Selling successfully a property in Berlin is easy compared to many markets because there are so many different people looking.
Take care of the legal paperwork and work with a professional agent to make sure the process goes smoothly.