Selling

Selling our flat in Germany has been a painless process. Maybe we are meant to leave? We signed up to an agent, who we paid 2,38% of the total price of the flat in fees. She then took care of the whole process – advertising, showing people around, and also joined us at the “Notar” (notary) to sign the contract. Note that you have to pay the agent's fees immediately after sale - so, in our case, even 3 months before you receive the money from your buyer - be sure to have the cash! 

We made an extremely quick sale – the first couple that viewed the property declared their intention to buy within a week of it being on the market at the full asking price. This surprised both of us.  Before signing up to this agent we were actually told by another agent that there was no way we would get our asking price; our property was after all “second hand” and he told us to sell it for a considerable amount less. Also, given our smoking neighbours  on one side and our party animal loud-music-playing student neighbours on the other, there was always a concern that one or the other or, perish the thought, both, would be happening at exactly the same moment potential buyers arrived to view the flat. (Oh, and incidentally, the smoking scenario did. Needless to say that couple did not buy the flat.)

Historically, the Germans are a nation of renters. They prefer to rent accommodation rather than buy. Once they decide to buy, unless of course they have unlimited financial means, they usually stay in the property for a long time and there isn’t the same buy-sell-upgrade mentality like in the UK. More often than not, Germans will save and around their late 40s, early 50s decide to buy a plot of land and build a family home. The difference in attitude reflects the difference in housing markets – in  Germany over the last 10 years have risen a mere 2-3%. In fact, since the 1990s housing prices have actually fallen. Buying a flat is also not that easy to finance. Most banks require a deposit of around 20% and proof of earnings over several years before they will even consider giving you a mortgage. You are also highly taxed for buying a flat. The “Grunderwerbsteuer” (property transfer tax) is roughly 3,5% and you pay annual tax on your property.

These times are now changing and due to low interest rates, higher rental prices, and particularly in Baden Württemberg, more demand than supply on rental accommodation, more Germans are opting to buy at a younger age. The good news is that we were very lucky and able to take advantage of this bubble. In our case, the buyer is 25 years old and his father is paying for the flat outright. The bad news is, this means moving out by December and finding rental accommodation.  At least it gives me something to write about!