SELLING A PROPERTY TO YOUR NEIGHBOR: WHAT YOU SHOULD BEAR IN MIND!

At first glance, selling your property to your neighbor seems like a practical option. There is no need for marketing via the internet or time-consuming viewing appointments. However, selling a property to a neighbor still has many pitfalls in store. Your property experts at Victor Investment reveal what these are and how you can successfully avoid them below.

The price issue

Neighbors who have found out about an upcoming property sale and now want to buy it themselves often approach the seller with precise price expectations. In this situation, the seller often only sees the opportunity to sell their house quickly – they refrain from asking a higher price so as not to offend their neighbors. As the seller, however, it is your right to demand a fair market price for your property.

Market value assessment by a local estate agent

An experienced estate agent who is familiar with the regional market situation can reliably assess the market value of your property and put forward good arguments for a higher price to your neighbor. They act as a neutral mediator who will bring the sale to a successful conclusion – in such a way that both parties are satisfied with the result. If the neighbor does finally back out, the estate agent will support you in your further search for a buyer.

The price is fixed – what happens now?

Setting the selling price is only the first hurdle when selling a property to a neighbor. Although you don’t have to invest time or money in finding buyers via the internet or print media, you can’t avoid the typical sales steps here either. These include, for example

• compiling the documents for the sale
• Drafting the contracts
• Preparing and coordinating the notary appointment
• handing over the property, including drawing up a handover report

In the case of private sales to neighbors, many owners forget to have existing defects recorded in writing in the contract. In the worst case scenario, the new owner can later claim that the defects were concealed. Expensive claims for damages would then be the result. Due to the often complex contractual matters in particular, you should therefore not do without professional assistance when selling a property to a neighbor.

You don’t take any risks with an estate agent

There is nothing wrong with selling a property to a neighbor – as long as the price is in line with the market and the house does not change hands for less than it is worth. An experienced estate agent will advise you on the selling price and handle all the sales formalities for you, which ultimately benefits both the seller and the buyer. Would you like individual advice on this topic? Then the Victor Investment team looks forward to hearing from you. Contact us by phone or online!