Assessing the price of an apartment house correctly
In a series of articles, we provide tips and considerations for those who want to or need to sell their apartment house or rental house, i.e. a multi-family house, or are basically considering such a thing. Even though we are real estate trustees in Austria, our tips apply generally in German-speaking countries for anyone selling an apartment building.
It should also be noted that we also offer a free initial consultation on the topics presented.
How to correctly assess the value of your apartment building and achieve the best sales price
Are you unsure how much your apartment building is really worth? Many owners ask themselves how they can achieve the maximum selling price for their property. An accurate estimate is essential for sellers to be sure that they are getting the most out of their sale.
Challenges in pricing
Valuing an apartment building is a complex task that takes into account both objective and subjective factors. To carry out your own price analysis, you could:
Research similar real estate offers in your area on online platforms
Obtain non-binding price information from real estate agents
Researching purchase transactions in the land register
However, many sellers find this process challenging as the research effort is high and the available data is often not transparent. Many properties are not listed online, especially those that are harder to sell and tend to fetch lower prices.
Tip
To obtain reliable results, it is advisable to consult an expert. A professional who is familiar with the apartment building market segment can analyze your property in detail. This includes assessing the location, condition and potential of the property and comparing it with recent transactions in the area.
Our offer at SUNSET IMMOBILIEN: We at SUNSET IMMOBILIEN offer you this expert service free of charge and without obligation. Contact us to receive a well-founded assessment of your apartment building and secure the best sales price.
Or would you first like some non-binding and free advice on your apartment building? For example, to assess the value of your property?
How to market an apartment house professionally
Tip: How to market an apartment house professionally
In a series of articles, we provide tips and considerations for those who want to or need to sell their apartment house or rental house, i.e. a multi-family house, or are basically considering such a thing. Even though we are real estate trustees in Austria, our tips apply generally in German-speaking countries for anyone selling an apartment building.
It should also be noted that we also offer a free initial consultation on the topics presented.
How you can best market your apartment building professionally
Introduction
The sale of an apartment building is quite a big decision in the life of an owner. This makes it all the more advisable to have an expert at your side. We support our clients with our detailed knowledge, network and profound market expertise. And last but not least with our passion for real estate and apartment buildings in particular.
The possibilities at a glance
When buying real estate, and this is not much different with interest and rental houses, it is always about emotions in addition to the objective facts such as size, location, equipment. A prospective buyer's first impression of the house is decisive for his willingness to buy and his decision-making process. Just like us, you as a seller should also pay attention to a convincing appearance of your property, such as clean access paths and staircases, well-kept exterior surfaces, doors, ceilings, walls.
Visualization for construction projects
Digital marketing
Today, it is essential to offer a whole arsenal of digital marketing:
professional exposé and photos
Own website for the property
Wrap-around videos and 360-degree virtual tours
Home staging
You can also find out more about our digital marketing offering here '
Tip
It is highly recommended to have your property put in perspective by a professional. Our service for apartment buildings, for example, includes all the above-mentioned marketing tools at no extra charge.
Would you like to receive free, non-binding advice on your apartment building?
Then simply contact us.
How to find suitable buyers for your apartment building
Tip on how best to find suitable buyers and interested parties for your apartment house or multi-family house
In a series of articles, we provide tips and considerations for those who want to or need to sell their apartment house or rental house, i.e. a multi-family house, or are basically considering such a thing. Even though we are real estate trustees in Austria, our tips apply generally in German-speaking countries for anyone selling an apartment building.
It should also be noted that we also offer a free initial consultation on the topics presented.
How to find suitable buyers for your apartment building
The (theoretically) easiest way
The simplest thing is: you find a buyer in your own circle of acquaintances who will pay you a good price. What is an objectively good price can be provided by an expert evaluation - as explained in one of our previous episodes.
The usual way
Usually, potential buyers have to be found externally in the market. And these are typically wealthy individuals and families, professional investors, foundations and companies. We deal with this wealthy clientele on a daily basis, and many of them are also regularly interested in apartment buildings and rental houses as investments. We can therefore put you in touch with potential buyers. In addition, we screen prospective buyers, so you don't run the risk of "real estate tourists" or dubious prospective buyers looking at your property.
Apartment house online?
You should not simply put the house online on one or even several real estate platforms. Firstly, you will receive countless enquiries from brokers and questionable prospective buyers with unclear creditworthiness. Secondly, interest and rental houses that are put online are considered "second choice" properties that could not be sold "offmarket" before and had to be put online now.
Tip
Make absolutely sure that the offer of your property is first placed discreetly in the right groups of buyers. And not placed online, at least not initially. We at SUNSET IMMOBILIEN can support you in reaching the right clientele or potential buyers.
Would you like to receive free, non-binding advice on your apartment building?
Then simply contact us.
Sell or keep an apartment building?
In a series of articles, we provide tips and considerations for those who want to or need to sell their apartment house or rental house, i.e. a multi-family house, or are basically considering such a thing. Even though we are real estate trustees in Austria, our tips apply generally in German-speaking countries for anyone selling an apartment building.
It should also be noted that we also offer a free initial consultation on the topics presented.
Sell or keep an apartment building?
In our blog series, we offer valuable tips and considerations for owners who are considering selling or keeping their apartment building. Our expertise as real estate trustees in Austria informs every piece of advice we give - and this applies not only to Austria or your apartment building in Vienna, but to the entire German-speaking region. Whether you want or need to sell an apartment building, we will support you with our in-depth knowledge.
Selling an apartment building: Reasons and possibilities
There are many reasons to sell an apartment building or rental house: from personal life changes such as divorce or inheritance to financial bottlenecks or the desire to retire from management. Selling an apartment building in Vienna can provide relief, as the operation is often costly and time-consuming, including refurbishment, loss of rent, and extensive administrative work.
On the other hand, selling an apartment building is not always the best option. Apartment buildings, especially historic buildings, can be a stable investment, especially in uncertain economic times. Many tasks can be outsourced to specialized service providers, allowing you to continue to benefit from the increase in value.
Flexible sales strategies for your apartment building in Vienna
Partial sale: Sell parts of the house, keep your own apartment or offer it for rent. This requires the establishment of condominium ownership and a clear regulation of future costs.
Right of residence: A permanent right of residence entered in the land register secures you lifelong living without further costs.
These considerations show: Careful planning and advice are crucial. Our experts for the sale of apartment buildings and rental houses in Vienna are on hand to help you make the best decision.
Our customized service on site: Sell your apartment building in Vienna in Vienna
Would you like to find out more or take advantage of a free initial consultation on the sale of your apartment building in Vienna? Contact us today and secure professional support for the sale of your apartment building in Vienna.
Or would you like some free, no-obligation advice on your apartment building? Or would you like an estimate of the value of your apartment building?
Then simply contact us.
Innovation in the real estate market - transparent flat-rate prices for real estate sales
Innovation in the real estate market: flat-rate prices for property sellers
The problem
As cost-consciousness and fairness increasingly come into focus, the traditional commission model in the real estate market poses a growing challenge for many sellers. The common practice of charging estate agent commissions based on a percentage of the sale price can be a significant financial burden, especially for owners of expensive properties. However, an innovation is on the horizon: the transparent flat fee model. This model promises to revolutionize the way properties are brokered for sellers by offering a fair, transparent and, above all, cost-effective solution.
Comparison of brokerage costs
Traditionally, the estate agent's commission for the seller is calculated as a percentage of the sale price of their property, which (in Austria) is up to 3.6% (including VAT). This fee can be disproportionately high for sellers of high-priced properties, especially if the actual expenses incurred by the estate agent do not necessarily correlate with the value of the property.
In other words, why should an estate agent earn significantly more for the sale of, say, an apartment worth EUR 1 million than for an apartment worth EUR 300,000 if the effort involved is similar?
The solution
To counteract this injustice, SUNSET IMMOBILIEN is once again an industry innovator and now offers models where fixed flat rates are charged regardless of the selling price. These models vary in their services and prices, allowing sellers to choose based on their specific needs and budgets.
Source: www.sunset.immo/pauschalpreis
The advantages of the all-inclusive price model
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Salespeople can clearly calculate the costs in advance and do not have to worry about unexpectedly high commissions. This makes financial planning and budgeting much easier.
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Every seller pays the same price for the same service, regardless of the value of their property. This promotes fair and ethical business practices.
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Brokers are motivated to provide the best possible service as they are not looking for a (higher) Povision base. This can lead to a higher level of commitment and a better quality of service.
How does the flat-rate pricing model work in practice?
The all-inclusive price model is simple. We offer various packages that include different services:
At the end
The real estate market faces many challenges, including the need for greater transparency and fairness. The flat fee model directly addresses these issues and offers a modern solution that benefits both sellers and agents.
It also reflects a cultural shift towards greater customer focus and service quality in the real estate industry - for a fairer and more efficient market that ultimately benefits all stakeholders.
Costs of selling real estate in Austria
Essential costs when selling real estate in Austria: A comprehensive guide for sellers
What are the costs of selling a property in Austria?
In principle, in Austria the main burden of the additional costs when buying/selling real estate, and that is about 10% of the purchase price, is borne by the BUYER and not the seller. We will now go through which costs typically affect the seller and which are negotiable:
Broker commission
Costs: 3.6% of the purchase price incl. VAT; negotiable.
Important: Only due on sale. Includes services such as price estimation, advertisements, customer inquiries, viewing appointments.
Details: If you commission an estate agent with the sale, you will normally be charged 3.6% of the purchase price including VAT. This is a matter of negotiation and many estate agents will be a little more accommodating in terms of price. Important: This commission is only paid in the event of a successful sale and covers all the estate agent's expenses and work such as price estimates, advertisements, customer/prospective buyer inquiries, viewing appointments, etc.
Energy certificate
Costs: From approx. 200 EURO.
Important: Must be presented in the advertisement or before the purchase contract is concluded. Normally paid by the seller, but can be passed on to the buyer by contract.
Details: You must actually hand over the energy certificate to the buyer in the advertisement or at the latest before the purchase contract is concluded. The costs for the energy certificate vary widely. However, some can be ordered on the Internet from around 200 EURO. These costs are usually borne by the seller. However, the purchase contract may stipulate that the costs must be reimbursed by the buyer or these costs may simply be included in the purchase price.
Purchase contract obligations
Costs: Variable depending on obligations (repairs, clearing out, decluttering).
Tip: Costs usually deducted from the purchase price; seller typically responsible.
Details: If you commit to improvements, repairs or clearing out and decluttering in the purchase contract, the costs will of course be incurred. However, these are usually simply deducted from the purchase price so that the buyer is responsible for all repairs. In practice, it is advisable to stipulate in the contract what is to remain or be removed and who will bear the costs (typically the seller), especially for clearing out and decluttering.
Notary and purchase contract
Costs: Notary, trustee, drawing up the purchase agreement.
Common: Escrow costs are often split between buyer and seller.
Details: The costs for the notary, trustee and drawing up the purchase contract can be passed on to the buyer by contract. However, it is common for the escrow costs to be split equally in the amount of a few hundred euros.
Real estate transfer tax
Note: Is usually paid by the buyer and is therefore not incurred by the seller.
Real estate income tax
Costs: 30% of the gain achieved; with exceptions.
Exception: No tax for main residence or reduced tax for properties acquired before 2002
Details: This tax is generally 30% of the gain realized. However, there are some exceptions and exemptions: The most important of these is if you have registered your main residence in the property sold for 5 years continuously in the last 10 years or 2 years continuously from the purchase of the property, then this tax does not apply. In addition, a reduced tax rate of only 4.2% of the purchase price applies to properties purchased before 2002.
Release from encumbrances in the land register
Costs: A few hundred EURO for the deletion of existing mortgages.
Responsible: Usually to be borne by the seller.
Details: For the deletion of existing mortgages on a loan by a trustee, costs of a few hundred euros are incurred. These are to be paid by the seller, as they are to be carried out in his interest.
Mortgage loan
Possible: Extra costs for early loan termination.
Tip: Consider whether a loan termination can be avoided in order to avoid additional costs.
Details: If you have taken out a fixed-interest loan or fixed-rate loan and have encumbered the property with a mortgage, you may have to expect extra costs for the early termination of the loan. The financing bank may charge a so-called early repayment penalty if it has suffered a loss of interest due to the early termination of the loan.
Our tip: You should therefore consider foregoing a loan repayment, which incurs additional costs and does not result in a higher sales price. Instead, use the loan for the next property to be financed after the property sale.
Every real estate sale is unique and requires an individual approach. For comprehensive advice tailored to your specific case, I recommend that you contact us.
Disclaimer: Please note that the information provided here does not constitute legal advice and I assume no liability for the accuracy, completeness or timeliness of this information.
Selling a house - with right of residence
Discover in our latest video how you can sell your home while retaining a lifelong right of residence. Interesting for owners who are looking for financial flexibility without having to give up their familiar surroundings. We highlight the key benefits, challenges and legal aspects to consider.
Please contact us for further information and individual advice.
The districts of Vienna from a real estate point of view
Learn more about the unique characteristics of all of Vienna's districts and how our extensive expertise and knowledge of local real estate prices can help you achieve the best selling price for your property. Take advantage of our free property valuation service and take the first step to realizing the full potential of your property in Vienna, regardless of the district.
Buy property in Vienna
Vienna offers a diverse and vibrant residential landscape, ranging from the quiet and green atmosphere of districts like Liesing to vibrant and culturally rich districts like the Inner City. Each district has its own personality and offers a wide range of properties, from single-family homes to stylish apartments. Good transport links and proximity to various leisure facilities make each district attractive in its own way.
As an experienced real estate agent, SUNSET IMMOBILIEN is here to help you find the perfect property for you in one of Vienna's districts. With our extensive knowledge of the market and professional approach, we can take into account your individual requirements and needs and present you with the best options. Contact us for a personal consultation and let's find your dream property in Vienna together.
Still searching? Send us your search criteria here '
Free valuation of your property in Vienna
Take advantage of our free property valuation service for your district and secure the decisive advantage when selling. As experienced real estate agents, we offer you not only a professional assessment of the market value of your property, but also an in-depth understanding of the real estate market and its dynamics. A professional real estate appraisal is more than just a number.
It is a strategic tool that helps you set the optimal selling price to get the maximum return from your sale. It gives you security and confidence in your pricing and strengthens your negotiating position with potential buyers.
In addition, our valuation helps you highlight the unique features and value of your property, which can lead to a faster and more profitable sale.
Contact us today for more information and learn how you can benefit from our expertise. Take advantage of our free service and take the first step towards realizing the full potential of your property in your district of Vienna.
You want to sell your house or land or villa or apartment?
Sell your property in Vienna at the best price and benefit from our extensive expertise and knowledge of prices in the area. As a renowned real estate agent, we offer a customized service and accompany you professionally through the entire sales process. With our profound understanding of the market, we position your property optimally and reach the right buyers.
We can then work together to get the best price for your property. You can find out more about our services for real estate sellers here:
The broker for your real estate business in Vienna
Contact us today for a personal consultation for your property in Vienna. Act now and take the first step towards a successful real estate purchase or sale.
Call us or fill out our online contact form to schedule a no-obligation consultation.
The single-family interest house as a new trend?
Single-family homes represent the world's largest asset class and, among real estate, are also the most widely used form in Austria and Germany.
To date, investing in and renting out single-family homes - hence the term "interest single-family home" - has not been big business.
However, that could now change, for the following reasons:
Rising demand: Even many high-income earners can hardly afford property at the current price level. The tightening of financing guidelines (see, for example, Prof. Dr. Gramann's article here ' ) also contributes to this problem. I do not see a rise in prices in the coming months, as a good part of the real estate industry would like to see (see article "Immotrends 2023"). But I also do not expect prices for real estate including EFH to plummet dramatically. Thus, numerous previous potential EFH buyers will now (inevitably) become EFH renters. To live in an EFH, especially with a garden, in the green outside the city center, with enough space for family and front door, will remain the desire of many people. And will not simply be replaced by a city apartment.
Good returns: Unlike non-profit housing or apartments in multi-party houses, rental single-family homes ("EFH") are subject to virtually no restrictions under rent law. Up to now, there has been supply in this segment mainly in the luxury and high-end segment, which meets with solvent tenants such as diplomats, top managers, and the like. And provide nice returns for landlords. Good returns are also achievable in the segments below, especially since demand will increase as mentioned above. In the USA, "EFH" are considered by far the highest-yielding asset class, with returns of up to 20%.
Investors are already jumping on board: Until now, EFH was considered high-yielding, but too small-scale and therefore virtually uninvestable for larger and institutional investors. This has changed, starting in the USA: Starting with Blackstone, the world's largest asset manager, other major Wall Street investors such as Goldman Sachs and KKR are now investing in the "single-family homes" asset class. While the investment was still at USD 3 billion in 2020, it already rose to USD 45 billion in 2021. The thousands of homes held by these are being refurbished with new flooring and plumbing and also modernized, for example with smarthome technology. These amenities are also attracting better-off tenants. This trend is also spreading in other countries such as the UK, Germany, Ireland, the Netherlands and Scandinavia (see also article in ECONOMIST ' ).
Considerations and challenges for investors
Limits to growth: Despite rising rents in this segment as well, this trend will not continue in the long term, but will level off. On the other hand, thanks to inflation-linked and longer rents, residential rents are robust and fluctuate less in economic cycles than "property" or "office" rents.
Cost uncertainty: rising interest rates, inflation and an uncertain economic outlook mean that the cost of construction, renovation and maintenance is rising.
Opportunities: Rising interest rates mean investors also need to monitor alternatives such as bonds, which may offer more return with less risk and expense.
In summary
Despite these challenges, I think the "interest single-family home" is a highly interesting asset class for investors - even institutional ones.
Would you like advice on this topic? Or are you looking for a professional partner to help you put together an EFH portfolio? Then contact me '
Dr. Andreas Bonschak
How you can optimally sell an apartment house
Tip: How to optimally sell an apartment house
In a series of articles, we provide tips and considerations for those who want to or need to sell their apartment house or rental house, i.e. a multi-family house, or are basically considering such a thing. Even though we are real estate trustees in Austria, our tips apply generally in German-speaking countries for anyone selling an apartment building.
It should also be noted that we also offer a free initial consultation on the topics presented.
Introduction
The sale of an apartment house does not happen very often for most owners. This makes it all the more advisable to have an expert at your side. We support our clients with our detailed knowledge, network and profound market expertise. And last but not least, with our passion for real estate and apartment buildings in particular.
The possibilities at a glance
What is the best way to sell an apartment building? There are four possibilities, sorted in order of professionalism, starting with the "do-it-yourself" method and ending with the most professional method with the best chance of achieving the highest price:
Sell yourself, so nowadays mostly online
a discreet sale through a broker
via auction and
a bidding process
1. sell yourself
Doing it online has some disadvantages and risks: First, you will receive countless inquiries from brokers and questionable prospective buyers with unclear creditworthiness. Second, interest and rental houses that are put online are considered "second choice" properties that could not be sold "offmarket" before and had to be put online now.
Either way, you have the effort with the preparation of documents such as Expose, photos, then the appointments, the numerous visits. In addition, you have to think about the purchase contract, the liability and warranty for defects, the land register registration, the real estate taxation, i.e. many legal or technical aspects where lawyer, tax advisor, notary or construction technician belong coordinated.
2. discreet sale via real estate agent
With the discreet sale of your apartment house via a real estate agent, a broker takes this effort off your hands and handles it for you professionally and quickly. You then only decide to whom and at what price you want to sell your apartment house. And you don't have to worry about anything during or after the sale. By the way, this is the classic, most common method of sale. Our team also offers this service and is supported by lawyers, tax advisors, notaries and building technicians and you get a professional service from one source.
3rd auction
At an auction, potential buyers gather who have been comprehensively informed about the apartment house or several apartment houses beforehand. With the auction and the award to the highest bidder, the sale is completed. This type of sale is used from time to time, especially when prestigious or even a package of apartment buildings are put up for sale in a way that attracts public attention and without time pressure.
4. bidding process
The bidding process has become increasingly popular in recent years - at least among sellers. This works in such a way that the interested parties submit their sealed purchase offer at a fixed deadline and address. When the deadline expires, the offers are opened there and the top-ranked interested parties can then improve their offer again (once or several times). Such a bidding process is often used for apartment buildings in sought-after top locations or if the house belongs to several parties who attach importance to a transparent sale.
Tip
Those are basically the four ways you can sell your interest or rental home. Selling on your own involves a lot of effort and some pitfalls that you have to take into account. We can advise and actively support you on all sales methods, i.e. from finding a buyer, marketing, purchase contract, signing to handing over the keys.
Would you like to receive free, non-binding advice on your apartment building?
Then simply contact us.
What good is an estate agent these days?
What a real estate agent should be good for in today's time
"Brokers are often not worth their money."
That's what a lot of people think who have had bad experiences with brokers. Which unfortunately often happens.
For what brokers?
(Only) A well-trained broker has a specialized knowledge that helps his clients and protects them from disadvantages and risks and has the following advantages:
1. sales result & price
A good broker knows the market, knows how to value a property, and takes into account its specifics. And he knows many preregistered customers who can be addressed even before an online ad is placed. And in price negotiations, private sellers often give away a lot of potential.
2. marketing
In addition, one should not underestimate the visual preparation: According to one study, properties advertised with video and 3D tours generate about a third more inquiries and about a 10% higher sales price.
3. effort
Private sellers usually can't match the service quality of a good realtor, if only because of the lack of experience and equipment. You are responsible for everything yourself - photos, video, documents, exposé, placement and advertising, coordinating inquiries, conducting viewings, negotiating the price, and much more - all these things are very time-consuming and often underestimated.
4. risk
Errors in the sale, defects in the property or non-compliance with legal regulations can lead to high financial disadvantages. And as a seller, you are generally liable for material defects and defects of title.
5. safety
A broker creates security with his advice and is also obliged to take out liability insurance.
Our tip
While in the case of smaller properties such as apartments and plots of land, a sale by the owner without a broker is still justifiable under certain circumstances, we always recommend the use of a professional broker for larger properties such as single-family and multi-family houses, apartment buildings and luxury properties. This is in any case advisable from the point of view of security, effort and price maximization.
You would like to get free and non-binding advice on your real estate?
Then simply contact us.