selling provision free

13 posts in this topic

Hi, we are on the move again !

This time my husband wants to sell provision free as we already have a buyer.

 

I am wary. What is provision free exactly and what are the costs to us

0

Share this post


Link to post
Share on other sites
19 minutes ago, SusieT said:

It sounds as if he wants to sell without using a makler/agent as they will take x% of the sale price, usually from buyer and seller.

In Germany more often than not it's the buyer who pays the Makler/agent fees once the sale has gone through, as well as most other fees.

0

Share this post


Link to post
Share on other sites

Bravo I say! If you sell through  Makler, the commission can be shamefully high. In Berlin/Brandenburg it can easily be 7%. And up to now here it's the buyer that pays, so no incentive for the seller to sell privately. However, in some states, the buyer and seller split the cost 50-50. I believe this will be the case in law overall from January which is some improvement. Of course, if you're both selling one house and buying anotheryou can still end up paying the 7%...

I think the main costs to you for selling privately are the time and effort to advertise and show your house. If you have proper legal advice, your paperwork in order, and accurate information about the state of your house, why not? I wish more people would do it.

1

Share this post


Link to post
Share on other sites
23 minutes ago, Feierabend said:

However, in some states, the buyer and seller split the cost 50-50.

 From mid December this will be all states for non-commercial propert  Or to be more precise the seller must contribute at least 50 percent.  Has been law for sometime, but it has a transition period too!

0

Share this post


Link to post
Share on other sites

we live in a village where houses up for sale are like rocking horse muck. this guy missed out on the one next door and is now interested in ours. hence verbal acceptance. i think here the estate agent fees are split 1. something for seller and 6. something to buyer.As long as its just about these fees i´m happy. we need a quick sale because the seller of the new place can´t wait forever

0

Share this post


Link to post
Share on other sites

Does anyone know about this capital gains tax. We bought a dump cheaply and spent lockdown doing renovations, including a new boiler, carport, sorted gardens etc etc. its now beautiful. Its been valued quite a lot more for resale. we´ve only been in 14 months and now my husband has been relocated again !!!

0

Share this post


Link to post
Share on other sites
4 minutes ago, Henribear said:

Does anyone know about this capital gains tax. We bought a dump cheaply and spent lockdown doing renovations, including a new boiler, carport, sorted gardens etc etc. its now beautiful. Its been valued quite a lot more for resale. we´ve only been in 14 months and now my husband has been relocated again !!!

 

Don't worry - if you've lived there the whole time, capital gains tax is waived, even if you haven't been there for two full years (which is the usual lower limit for exemption).

1

Share this post


Link to post
Share on other sites

I thought if you owned for less than 10 years, then Capital gains tax applied... Longer if it was a rental object... 

 

@Henribear...   If he has offered you "x"... then thats usually the base offer....    Tell him you will get a price appraisal....Wait and see if he offers a few more grand...

 

 

 

 

 

 

 

 

 

0

Share this post


Link to post
Share on other sites
5 minutes ago, El Jeffo said:

 

Don't worry - if you've lived there the whole time, capital gains tax is waived, even if you haven't been there for two full years (which is the usual lower limit for exemption).

thats great news

0

Share this post


Link to post
Share on other sites
18 minutes ago, SpiderPig said:

I thought if you owned for less than 10 years, then Capital gains tax applied... Longer if it was a rental object...

 

No, the 10-year period applies to rentals.

 

If you've owned it for less than 10 years, but have lived in it for two years or more up to the point of sale (which means you're still living in it when you sell), the tax is waived. And if there's less than two years between purchase and sale, it also doesn't apply if you've lived there yourself the entire time. Source (in German) (my bold):

 

Quote

Außerhalb der Spekulationsfrist (zehn Jahre zwischen Anschaffung und Veräußerung) ist der private Verkauf steuerfrei. Ansonsten fällt grundsätzlich Einkommensteuer an.

Eine Ausnahme besteht allerdings bei Immobilien, die für eigene Wohnzwecke genutzt werden. Die Spekulationssteuer greift nicht, wenn die Immobilie im Jahr des Verkaufs und in den beiden vorangegangenen Jahren selbst zu Wohnzwecken genutzt hat. Oder wenn sie bei kürzerer Zeit zwischen Kauf und Verkauf ausschließlich auf diese Weise genutzt wurde. Was die Freude über den Verkaufsgewinn deutlich steigert.

 

4

Share this post


Link to post
Share on other sites
2 minutes ago, El Jeffo said:

No, the 10-year period applies to rentals.

 

If you've owned it for less than 10 years, have lived in it for two years or more up to the point of sale (which means you're still living in it when you sell), the tax is waived. And if there's less than two years between purchase and sale, it also doesn't apply if you've lived there yourself the entire time. Source (in German) (my bold):

 

 

Yes lived here the whole time, in fact barely set foot across the door!!.

0

Share this post


Link to post
Share on other sites
13 minutes ago, El Jeffo said:

No, the 10-year period applies to rentals.

 

If you've owned it for less than 10 years, but have lived in it for two years or more up to the point of sale (which means you're still living in it when you sell), the tax is waived. And if there's less than two years between purchase and sale, it also doesn't apply if you've lived there yourself the entire time. Source (in German) (my bold):

 

 

Thanks for that... interesting

0

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now