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How to estimate the price of my flat in Berlin?

The valuation of your property is a fundamental step in the decision of whether or not to sell your flat. You need to value your property at the “right price” to match the price of real estate in Berlin as closely as possible. The aim is to position yourself as fairly as possible to compete with other owners in Berlin. If you live in Berlin and know the Berlin property market, that’s one thing, but if you have little idea of the property prices per square metre in Berlin, the districts that are going up…., you need to focus on this stage. It is not easy to estimate the value of a property for sale and therefore, it is a crucial step that will avoid any inconvenience

To help you, here are 4 themes that we suggest:

Why estimate your property in Berlin?
From whom to get a property valuation?
Preparing the estimate and positioning yourself on the Berlin property market
How do I optimise the sale price of my property in Berlin?

Why estimate your property in Berlin?

To ensure that the sale of your property in Berlin goes smoothly and quickly, you must estimate the price of your property from the start. There are many factors to take into account, such as :

• the location and district (“Kiez” in German) in Berlin
• the environment
• the type of property
• its brightness
• the characteristics

After 2 years of COVID, the real estate market in Berlin has changed a lot, prices have increased, but not uniformly in all districts.

Doing your estimate, without using existing data, can therefore lead to mistakes that will slow down your sale. Be careful, because if there is a price trend per neighbourhood, there are also strong differences from one street to another within the same neighbourhood. A price that is too high for the market will repel potential buyers and cause you to lose credibility on the market, while a price that is too low will result in a loss of earnings for you.

It is therefore important to make a good estimate of your property in Berlin. The proceeds of the sale will surely allow you to make new plans, such as buying a new house. It is therefore important not to make any mistakes about the amount you will get from the sale.

From whom to get a property valuation?

You can therefore estimate a property in several ways.

1. Do it yourself:

To estimate the price of your property, it is necessary to compare it with the selling prices of properties in your area.

New online tools are available to help you. You can see the prices per neighbourhood on the immo-kompass website, but beware that on this site, these are only global trends per neighbourhood without any precision on the characteristics of the flats.

You can then analyze by looking at German real estate websites such as Immobilenscout24 or Immowelt to see what is currently being sold in your area. It is important to try to find flats that are similar to yours and even then, it is not guaranteed that these flats in Berlin will sell for the price stated in the ad!

Beware, when making your estimate, many owners often tend to take into account the purchase price of their flat or even the price of their new real estate project, and therefore overestimate the value of their property. Be realistic if you want a quick sale of your Berlin flat, and list the advantages and disadvantages of your flat to make a true estimate of the characteristics of your flat.

2. Real estate agencies:

In most cases, estate agents will be able to offer you free estimates of your property. Be careful, they can sometimes deliberately overestimate the estimated price to please you and then get you to sign a mandate with them. You can also go through several agencies to make an average of their estimates.

What ADEN Immobilien in Berlin advises.

In our case, each estimate is the result of 3 different methods:

Price analysis via real estate data software
Market study with flats currently for sale
Ratings by 2 ADEN Real Estate agents
These 3 methods allow us to arrive at a property valuation for your Berlin flat that is explained to you in detail so that you understand the local property market. This method has proven to be successful as 98% of our mandates in 2021 were sold at the estimated price.

Our objective during these estimates is not to please you but to give you the true value of your property so that you will not be in difficulties with your future real estate projects.

Preparing the estimate and positioning yourself on the Berlin property market

Whether you want to make your estimate or do it via an agency, we advise you to prepare your file beforehand. First of all, you need to identify the strengths and weaknesses of your property to determine the most accurate price per m². If you do not know your flat well because it is a rental investment, we can do this part for you during the estimate.

The following are the main strengths that a dwelling can have:

• Its exhibition
• Its location and accessibility by public transport
• The presence of “annexes” such as a garage, a cellar
• The presence of a balcony, a terrace or a mezzanine which are not counted in the Carrez law surface area
• The level of equipment in the building (lift, garden, etc)
• The main weaknesses of a dwelling are:

Low light levels :

• A noisy environment (street, neighbour, etc.)
• Work to be done (renovation, refurbishment). Think about doing some work before selling.
• High loads

The following aspects may be an advantage or disadvantage in your sale depending on the situation:

• The floor of your flat: the ground and first floors are not very attractive, while the upper floors are more attractive (provided there is a lift);
• The view from your accommodation (a nice view or a view of rubbish bins does not have the same effect).
• The energy diagnosis. Indeed, a house with a bad energy label will sell for less. By energy renovation we mean insulation, changing windows, and using renewable energy for example. It should be noted that in Berlin, the energy diagnosis is given for the whole building and each flat. This document can be provided by the “Hausverwaltung” (condominium corporation).

In a second step, we advise you to gather all the documents needed for the estimate (this is not necessarily compulsory but helps with the estimate):

• Minutes of the last owners’ meetings
• Plan of your property
• Certificate of ownership of your property
• Statement of charges for your property
• Copy of the property tax of your property
• Building permit or Declaration of works in case of extensions to your property

If a few years ago a measurement of the surface was not necessary, we notice that more and more German banks ask for a document or for a surveyor to measure the flat.

Rest assured, if you do not have all these documents, we can help you get some of them from your “Hausverwaltung”.

Once you know the strengths and weaknesses of your property, you can estimate its price, taking into account the impact of the different points you have identified and its advantages over other properties on the market.

How do I optimise the sale price of my property in Berlin?

If you want to increase the price of your flat, it is possible to increase the price of your property without leaving the “fair price” zone. Here are 3 techniques to do this:

• Home staging or small works
  Indeed, the use of home staging allows you to give your home a new look at a lower cost. The aim is to carry out simple, surface work that refreshes the look of your home. For example, it is advisable to repaint the walls in neutral colours. This makes it easier for buyers who are visiting or looking at the photos to project themselves. But don’t neglect rooms such as the kitchen or bathroom, which are strategic for the sale. Don’t hesitate to allocate a larger budget for the renovation of these rooms, which often require the technical diagnoses necessary for the constitution of the sale file. This is the first way of optimising the selling price of your property, which will influence the estimated price of your property. Even if you invest in small works, you will realise a greater value.
• Increase the living space
  To increase the price of your property, you can increase your surface area by converting small rooms such as attics or a garage for example. The creation of these rooms will increase the value of your property, but since you are creating additional living space, you will also increase the amount of property tax, which is calculated based on the living area.
• Optimise the rooms, see to what extent you can create an extra room or bedroom by moving the kitchen or bathroom to create a bedroom for example. Please note that this is not possible in all areas of Berlin due to the “Milieuschutzgebiete” law which limits the work. We are specialists in this and have partner companies so please email us if you want to know if your address is affected or not: click here.
• Highlighting your property with quality photos. The 3rd point you can rely on to optimise the selling price of your property is the quality of the photos on your ad (and more generally the whole ad). According to a study carried out by Redfin in 2015 in the United States, a property with good photos sells faster and for more money than a property with poor quality photos. It is therefore important to take good photos to show your property to an advantage and thus help to increase the price of the property.

It is essential to value your property correctly, but it is just as important to know how to enhance it to increase the sale price. Several techniques will allow you to make it more attractive, such as home staging, increasing the living space, improving your energy performance and finally taking quality photos for your ad.

At ADEN Immobilien, we have the advantage of having 3 local agencies in different districts of Berlin and we are therefore very familiar with the property prices in each of these districts. ADEN Immobilien sells around 200 flats per year in Berlin. Our teams, our real estate agents (called “Makler” in German) all have at least 5 years of experience, which gives them a real understanding of the market and the buyers.

All our valuations are free of charge and without obligation, so don’t hesitate to contact us, we will be able to advise you on the valuation and above all on the sale procedure if you are French or not a German tax resident.

Rechtlicher Hinweis: Dieser Beitrag stellt keine Steuer- oder Rechtsberatung im Einzelfall dar. Bitte lassen Sie die Sachverhalte in Ihrem konkreten Einzelfall von einem Rechtsanwalt und/oder Steuerberater klären.