Of course, you want to achieve the best possible price for your property. And, if you are thinking of selling one of your apartment buildings, there are a number of factors to consider.
We have summarised some of the most important information for you below.
Many apartment building owners are now ready to take advantage of months and years of rising property prices and agree lucrative sales. As a result, we expect another uptick in sales in Berlin and many other German cities over the next few months.
Commercial and institutional investors are also taking advantage of the very high growth in property values and are selling buildings from their portfolios at previously unheard of prices. And private owners can still realise their capital gains tax-free if they have owned their property for at least ten years. Long-term owners, in particular, can exploit the fact that the current market values of their properties are often many multiples of the prices they originally paid. With the substantial proceeds from their sales, investors have the freedom to reinvest, build up their liquidity reserves, or bide their time until future market opportunities present themselves.
MICHAEL SCHICK IMMOBILIEN now offers an even more comprehensive and efficient portfolio of services for property owners and portfolio managers who want to sell their apartment buildings. As one of Germany’s leading investment brokerage houses, we have brokered apartment buildings and investment properties off-market for 28 years. Our discreet market does not involve any mailshots or any other forms of mass marketing. In today's market environment in particular, our targeted marketing strategy has proved to be especially effective, frequently achieving the highest possible sale prices. MICHAEL SCHICK IMMOBILIEN knows which investors are currently looking to invest, where and when they are investing, precisely which investors could be interested in your property, and under which conditions.
Although mass mailings of sales brochures are still common practice, such an approach can seriously damage buyers’ perceptions of your offer – and reduce the price you achieve for your property.
Only truly exclusive offers earn a premium price!
If you are interested in structured sales / bidding procedures, we would be delighted to advise you. Taking this approach maximises transparency, and offers a tremendous opportunity to cultivate the market within a clearly defined time frame. If you are looking to sell an existing apartment building, structured bidding procedures have distinct advantages. As a vastly experienced and specialised company, structured sales procedures allow us to more effectively and efficiently steer the market approach.
We also offer bidding and structured sales procedures as an objective method of determining the optimum price for your property. If your property is owned by a community of owners, structured sales represent a transparent and objective way of approaching the investment market.
Most property owners appreciate working with a broker who is exclusively representing their interests – not the interests of the other side. Our unambiguous stance means that MICHAEL SCHICK IMMOBILIEN is proud to exclusively represent the interests of our clients. It is clearly in the seller’s best interests that the broker’s commission should be paid by the seller, which is why a growing number of property owners value such “seller’s commission” agreements.
This “seller’s commission” is still 100% based on the property’s market value. However, the property is offered to the market at a slightly higher price, for example 106% of its market value. Once the property has been sold and the seller has been paid in full by the buyer, the seller can transfer the agreed ‘internal commission’ to the broker. Even after the broker’s commission has been paid, the seller still retains 100% of the original market value.
Owners and brokers both benefit from the fact that buyers appreciate it when a property is offered to them as “commission-free”. What’s more, brokers are then able to concentrate exclusively on representing the seller’s interests. If a lower price is agreed, the broker’s commission decreases proportionally. If a higher price is agreed, the broker’s remuneration increases proportionally. This “seller’s commission” model thus creates a true alignment of interests between the seller and the broker.
In the case of “buyer's commission”, which is still common in Berlin and Hamburg, the price is also set at 100% of market value, but the broker’s 6% commission is added and paid by the buyer once the transaction has been agreed. One major side-effect of such an arrangement is that the broker also has to represent the buyer’s interests. Clearly, it is in the buyer’s best interests to pay as low a price as possible. Unfortunately, “buyer's commission” means that the broker is often “caught between two stools”, unable to fully represent either the seller or the buyer.
Many years ago, having recognised the inherent dangers of such a conflict of interest, MICHAEL SCHICK IMMOBILIEN took a clear decision to always represent the interests of its clients exclusively. We are committed to transparency and the complete alignment of interests. We believe that this is the only basis for a fruitful and trust-based relationship between seller and broker.
We would be delighted to advise you on the best commission model for the sale of your property.
Since Germany’s Energy Saving Ordinance (EnEV 2014) came into force on 01.05.2014, anyone selling residential property needs an energy performance certificate for their building or apartment. This energy performance certificate needs to be made available to potential buyers from the very first viewing.
If you don’t already have an energy performance certificate for your property, MICHAEL SCHICK IMMOBILIEN GmbH & Co. KG would be happy to provide an energy performance certificate, free of charge, when you appoint us to act as your broker.
We prepare all of the documents you need to sell your property. All we need from you is a suitable power of attorney, which can be signed at the same time as the brokerage contract. We offer this service completely free of charge, sparing you the hassles of dealing with local authorities and time-consuming communication with your property’s administrators.