Many landlords focus intensely on purchasing a property – and hardly at all on selling it. Yet the exit is a crucial part of the overall strategy. A sale can be used to realize profits, reduce risks, restructure the portfolio, or strategically transfer wealth to the next generation. A well-planned exit is not a distressed sale but a conscious decision.
1. Why Sell at All?
There are many reasons to consider selling. Perhaps the property has reached its peak return, maintenance needs are increasing, or you want to free up capital for other projects. Sometimes personal circumstances change: retirement, inheritances, relocation, or the desire for less administrative burden.
A sale can also make sense when framework conditions change significantly – for instance, through new regulations, dramatically increased maintenance costs, or an overheated market where high prices can be achieved. The key is that the sale shouldn't result from spontaneous frustration but from a well-considered analysis.
2. Tax Aspects and Holding Periods
For private landlords, tax treatment plays a central role. After a certain period (the so-called speculation period), gains from selling a property can be tax-free under certain conditions. Anyone who sells just before this period expires often forfeits a considerable advantage. Therefore, it's worth keeping an eye on sales timing and holding periods.
Investments, depreciation, and modernizations also influence tax considerations. A conversation with a tax advisor before selling is usually time well spent, especially for larger properties or complex situations.
3. Sale With or Without Tenants?
A central question is whether the property should be sold with existing tenants or vacated before sale. A rented apartment primarily appeals to capital investors. Here, the rental income, stability of the tenancy, and quality of the tenant matter. The purchase price is more strongly oriented toward return calculations.
A vacant apartment is significantly more attractive to owner-occupiers and achieves higher prices in many markets. However, this may result in a period without income. Legally, terminations or termination agreements must be structured properly and fairly when the sale involves owner-occupation by the buyer.
4. Value-Enhancing Sale Preparation
A successful exit begins long before the actual notary appointment. The property's condition, completeness of documentation, and the impression the house and apartment make massively influence potential buyers' willingness to pay. A freshly painted apartment, organized basement, clean stairwell, tidy entrance area – all contribute to the feeling of acquiring a well-maintained property.
Equally important are complete documents: land register extract, division declaration, owners' meeting minutes, modernization certificates, energy certificate, and current rental documents. Anyone who prepares these documents cleanly appears professional and reduces follow-up questions.
5. Market Analysis and Pricing
Realistic pricing is crucial. Set too high, it leads to long marketing times and "burned" listings; too low gives away money. Comparable properties, regional market reports, broker valuations, and online indicators help with assessment. Many private sellers combine initial research with professional valuation to get a sense of the range.
It's particularly useful to consider not just the absolute price but also the property's return and value development. Has the property reached its peak? Is major renovation upcoming? Are there neighborhood developments that could affect future value? A well-founded assessment of these factors is invaluable.
6. Selling With Broker or Privately?
Whether you sell with a broker or privately depends on your knowledge, time, and comfort zone. A good broker brings market knowledge, negotiation experience, and access to buyer databases. They can efficiently guide the process but naturally charge a commission.
A private sale saves costs but requires significant effort: creating exposés, organizing viewings, qualifying prospects, negotiating, gathering documents. Those who enjoy such tasks and feel confident can successfully handle it themselves. Those who prefer to play it safe choose a professional partner.
7. Exit as Part of Overall Strategy
Ultimately, the sale shouldn't be viewed in isolation but as part of your entire real estate and wealth planning. Perhaps you'll use the sales proceeds for a new, better-fitting property. Maybe you'll pay off existing loans or shift from residential real estate to other investment forms. The question of wealth succession also plays a role: in some cases, gradual transfer to children or other relatives makes more sense than a sale.
Conclusion
A good exit is not a spontaneous distressed sale but a strategic decision. Those who consider tax aspects, market environment, property condition, and personal goals together can not only realize a nice profit from selling a property but simultaneously lay the foundation for next steps – whether that's more freedom, a new investment, or targeted wealth transfer.