
Is there an optimal time to sell real estate?
People who decide to sell their own home usually do so when their personal circumstances have changed or are about to change. Typical reasons for selling include a job-related relocation, divorce, family expansion, children moving out, or old age. Or you may have inherited a property and are giving up the one you have been living in.
How much leeway is there for the timing of the sale?
The urgency of the reason for selling also determines how quickly the owner wants to sell. In the event of a divorce, for example, or if a career change is suddenly imminent, the focus is often on selling the property as quickly as possible. A little more flexibility and time to search for a new home is available when downsizing or upselling. In this situation, many owners consider whether it makes sense to postpone the sale a little longer to wait for the "ideal moment." Owners who use their property as an investment certainly give even more thought to the right time to sell. In this case, it is important to wait for the 10-year speculation period to expire, as otherwise you will have to pay speculation tax on the profit made. However, owners who have lived in the property for the two years prior to the sale are exempt from speculation tax. After the 10-year period has expired, many investors see this as the right time to sell their property, but wonder whether the market situation might not be more favorable in one, two, or five years.
How sensible is it to wait for an (even) better time?
Although often assumed, purely atmospheric factors such as the season have no influence whatsoever on the sale of a property. Important indicators, on the other hand, are low interest rates and a strong economy. This means that demand is high and prospective buyers are willing to invest – which suggests that it is a good time to sell. In this respect, it naturally makes sense to keep an eye on developments in both the real estate market and the economy as a whole. The location of the property may also undergo changes that need to be monitored. If your property is located in a district that is currently becoming trendy, its price will also rise.
Overall, however, it must be said that it is very difficult to predict the ideal time to sell. Not only laypeople, but even experts are often wrong in their predictions of expected market developments, and the best sale is still the one that not only achieves a good price, but is also completed quickly. A professional real estate agent can support you in this process and, in case of doubt, get more for you than you would gain by waiting uncertainly for the optimal time to sell.
Are you considering selling your property? Contact us! We will be happy to advise you.
Need more information?
- statista.com: House price index in Germany since 2000
- deutschlandinzahlen.de: Real estate price index
- Wikipedia: Real estate
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.
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