When is the best time to sell your property?

Your life circumstances have changed and you are toying with the idea of selling your property. However, you are still waiting for the right moment. But when is that, exactly?

The personal reasons for the owner to sell up play the biggest role in finding the right moment. These can be many and varied. However, in most instances, people move because of work, a divorce, a new addition to the family, old age, or an inheritance. In the majority of cases, the reason also determines how quickly the owner wishes to sell.

Personal reasons influence the time of the sale

When selling due a new addition to the family or in order to downsize, the owner often takes their time in finding a new home. In cases of divorce, however, the owner is often keen to sell up as quickly as possible.

Things are different when the property serves as an investment. Once the statute of limitations for capital gains has passed (‘Spekulationsfrist’), many investors feel the time has come to sell the property. If you have purchased a property but do not reside in it yourself, you should wait 10 years before selling it, as you must otherwise pay tax on any profit you make. However, an owner who lived in the property themselves in the two years preceding the sale is not affected by the state of limitations on capital gains.

Knowing the economic conditions of the market

Above all else, anyone toying with the idea of selling their property should know the economic conditions of the market. Exceptionally low interest rates and an economic upswing all make for an ideal time to sell your property. This is when demand is great and potential buyers are prepared to invest. The property’s location can also be crucial in deciding when to sell. For example, if it is located in a city district that is currently becoming trendy, the price also increases automatically.

Even though it may not feel that way, the time of year has absolutely no effect on property sales. However, it is a good idea to take the pictures for the exposé in summer or spring. A professional estate agent will help you to create the perfect exposé.

 

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Additional information can be found here:

https://de.wikipedia.org/wiki/Immobilie

https://de.wikipedia.org/wiki/Immobilienmarkt

https://de.wikipedia.org/wiki/Bodenrichtwert

 

Disclaimer: This article does not constitute tax or legal advice in individual cases. Please consult a solicitor and/or accountant to clarify the circumstances of your specific case.

 

Photo: © thomaslenne/Depositphotos.com

 

 

 

 

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