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Distress sale: real estate annuity instead of foreclosure

The economic impact of coronavirus cannot yet be assessed. Experts anticipate that there will be significant financial losses. Under certain circumstances, this could result in property owners being unable to service their loans. The consequence would be foreclosure. To avoid this, there are other alternatives such as real estate annuities.

Even during the current lockdown, demand for real estate still exceeds supply. Anyone who needs to sell their property quickly therefore still has a strong negotiating position. However, in order to take advantage of this negotiating position, real estate sellers need to know the value of the property and their target group.

Real estate retirement: rent-free living

If you want to increase your liquidity in the short term by selling your property but still want to keep a roof over your head, a property pension offers the solution. With a property pension, owners can sell their property and still continue to live in it. To do this, they have a right of residence entered in the land register. There are two models for this: The right of residence can be valid for life, as in the case of a life annuity. Or it can be limited in time, as in the case of a temporary annuity. This is an interesting model for capital investors.

The purchase price for the property can be agreed relatively freely. It can be paid as a monthly "annuity," as a one-time payment, or as a combination of both. Those who have to sell in an emergency situation may prefer a larger one-time payment. Calculating the monthly annuity is very complex, as it depends on various factors. The basis is, of course, the value of the property. This is best determined by a local quality real estate agent. If the seller opts for a temporary annuity, i.e., a right of residence for a limited period, the annuity is based on this period. In the case of a life annuity, the estimated life expectancy of the property seller is decisive.

Avoiding foreclosure

If property owners are no longer able to service their bank loans, they usually face foreclosure. This usually leads to the property being sold at auction. As a rule, this is a poor solution, as properties are often sold below their value in such cases.

A professional real estate agent knows exactly how to handle such cases thanks to their many years of experience. They ensure that the property is sold at a fair market price, even under time pressure. In this way, they help to avoid foreclosure. Consult a professional real estate agent to find out which model best suits your individual situation.

Would you like to learn more about retiring from a property? Contact us! We would be happy to advise you.

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Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.

Photo: © AndrewLozovyi/Depositphotos.com
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Why a real estate agent will be indispensable in 2025: advantages and added value

At a time when the real estate market is more complex and dynamic than ever, real estate agents will remain an indispensable partner for anyone looking to sell or rent their property in 2025. Real estate agents not only offer valuable support in pricing and strategically approaching buyers, but also act as expert advisors throughout the entire sales process. A real estate agent brings more than just experience to the table. They provide a comprehensive market analysis that helps to achieve the best possible sale price. With a deep understanding of regional conditions, agents are able to identify and avoid potential pitfalls at an early stage. At the same time, they offer emotional support and relief by taking care of formalities and negotiations. This is particularly valuable at times when real estate transactions are often more than just business, but also involve emotional decisions.

The most important steps to successfully sell a house

Selling a house requires much more than just putting a "for sale" sign in the front yard. Strategic preparation is essential to achieve the best possible sale price and find the right buyer in a timely manner. Determining the market value is the first important step. A well-founded property valuation ensures that you neither underestimate nor overestimate the value, which could deter potential buyers. Experts such as those at Garcia & Co Immobilien GmbH offer many years of experience and precise analyses. Once the value of the property has been determined, effective presentation is crucial. An attractively designed brochure, supplemented by professional photographs, highlights the best features of your property. Consider carrying out minor renovations if necessary to increase its appeal. Well-maintained properties with attention to detail are more likely to attract interested parties and can have an emotional impact on those looking for a new home. Finally, you should prepare for negotiations so that you can respond to the expectations of interested parties. Openness and transparency play a major role here, because trust is an invaluable advantage when selling a house.

Top tips for successfully selling residential properties

Selling a residential property is often one of the most important decisions in a homeowner's life. Achieving the best possible price requires a well thought-out and strategic approach. First, a precise market analysis is essential. This allows you to estimate the current value of the property and skillfully use this information in price negotiations. A reliable property valuation not only builds trust with potential buyers, but also forms the foundation for all further sales strategies. Another important aspect is a high-quality property listing. Professional photos and a detailed description can be decisive in attracting the interest of the target group. In the digital age, a compelling online presentation of your property is essential. Platforms with a wide reach and a targeted approach increase visibility and maximize the chances of achieving the best possible price. Each of these steps requires careful planning and execution to ensure that the sales process is not only successful but also runs smoothly.

How do energy standards affect property values?

Modern insulation, efficient heating technology, and low energy costs are no longer just trends, but decisive factors that directly influence the value and sales potential of your property. Read here to find out why it pays for owners to invest in energy-efficient modernization in good time and how the market is likely to develop in the future.

Why professional real estate valuation? – An overview

A professional valuation when selling real estate is the basis for the pricing strategy and subsequent price negotiations with prospective buyers. Those who do not do this not only make the sale of their property more difficult, but may also end up selling their property below its value.

Living in old age or age-appropriate living?

As we get older, our expectations of our homes often change. A barrier-free bathroom, fewer stairs, or the question of whether our home still meets our current needs—many people are faced with the decision at some point: renovate, transfer, rent, or sell?

Real estate sales only with professional appraisal

Without a professional real estate appraisal, selling a property can result in financial losses. Read on to find out why a professional appraisal is so important and what advantages it offers you when selling real estate.

Getting a mortgage for real estate when you're over 60

It is often more difficult for seniors to obtain a loan, whether for purchasing real estate, renovations, or other financial projects. However, there are ways in which older people can successfully obtain financing.

Poor energy balance – what property owners should look out for

Properties with poor energy efficiency and/or outdated heating systems are becoming increasingly difficult to sell. And when they do sell, sellers have to expect price reductions. But what can owners do to prevent this?

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