Renovation is often expensive, but can be worthwhile when selling the property due to a higher purchase price. It depends on the individual case and should be assessed in advance by a professional.

Renovation obligation: Effects on real estate sales
As with household appliances, there is also an energy efficiency rating for real estate, ranging from A to H. By 2033, all residential buildings in the EU should achieve energy efficiency class "D." According to estimates, this would affect around 14 million buildings in Germany. For prospective buyers, this means an additional burden on top of the still high real estate prices in some cases and the increased interest rates for real estate financing. They must take these costs into account when calculating their financial resources for the purchase of a home.
What does this mean for sellers?
This makes it more difficult to purchase a property. Many prospective buyers are therefore trying to deduct the renovation costs from the purchase price. Those who do not want to be stuck with their property may be forced to meet the demands of prospective buyers.
Heat pumps are also leading to another change in the real estate market: location is no longer the only important criterion; the energy rating of the building is also a factor. Sellers should bear this in mind. Properties with poor energy efficiency ratings are likely to see drastic price reductions.
Value of the property
In any case, it is advisable to consult a local quality real estate agent. They will carry out a professional valuation. This forms the basis for the pricing strategy and price negotiations with interested parties. With a professional valuation behind them, sellers can appear more confident in price negotiations. However, it is better to leave this to a professional.
Price negotiation
In the current market situation, it is virtually impossible for sellers to conduct price negotiations themselves. A great deal of background knowledge is currently required to be successful. For example, how much of a property are banks currently willing to finance? How much equity do prospective buyers need to raise? And last but not least: How high are the renovation costs? Here, owners should rely on the help of a professional in order to sell their property at a fair market price within a reasonable time frame.
Renovate before selling
One alternative could be to renovate the property yourself before selling it. If the necessary measures are implemented, this will have a positive effect on the price. There are also government subsidies available for renovation. Buyers who try to push down the price by pointing to the renovation costs will not include the government subsidies in their calculations. The seller can also take advantage of this benefit, which would otherwise be enjoyed by the buyer.
An energy consultant can tell you which measures make sense from an energy perspective and meet the standards required by the government. A quality real estate agent in your area will know which measures will affect the value of your property and how.
Would you like to know how much your property is currently worth and whether renovation is worthwhile before selling? Contact us! We will be happy to advise you.
Notes
For reasons of readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
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: © franckito/Depositphotos.com