Private sale

Private sale refers to the sale of a property or plot of land on the open market through direct negotiations between the seller and the buyer-as opposed to foreclosures, government-administered auctions, or other regulated sales procedures. The owner or a real estate agent commissioned by the owner freely selects the buyer, negotiates the price and terms independently, and concludes the contract on terms of their own choosing. Private sale is by far the most common form of real estate acquisition in Germany.

Private Sale vs. Foreclosure Auction

The opposite of a private sale is a foreclosure auction, in which the local court auctions off the property against the owner’s will at the request of a creditor. A private sale in the run-up to an impending foreclosure auction is often the better alternative for owners in financial distress: it generally yields a higher return than an auction and protects the seller’s creditworthiness.

In foreclosure auctions, properties are often sold well below market value-proceeds of 50 to 80 percent of the market value are not uncommon. Additionally, the owner remains publicly stigmatized, as foreclosure auction dates are available online. In such situations, we recommend initiating discussions with the creditor early on to gain time for an orderly private sale-and thus secure the highest possible proceeds.

Process of a Private Real Estate Sale

A typical private sale process proceeds in the following steps:

1. Valuation: Market price analysis by a real estate agent or appraiser
2. Preparation: Compilation of sales documents (land registry extract, energy performance certificate, building plans)
3. Marketing: Creation of a property listing, placing ads on portals (Immobilienscout24, Immowelt), targeted buyer outreach
4. Viewings and purchase price negotiations
5. Notarization: Execution of the purchase agreement at the notary’s office
6. Payment of the purchase price and handover

Advantages and special features of a private sale

A private sale offers the owner maximum flexibility: They can select prospective buyers, negotiate asking prices, and agree on special terms (e.g., delayed handover, inclusion of furnishings). At the same time, the seller bears the marketing risk and must personally ensure compliance with all legal obligations (energy performance certificate, disclosure requirements regarding defects). An experienced real estate agent significantly reduces this risk.

Another advantage of private sales over public bidding processes is discretion: Sellers can offer their property to a select group of interested parties without publicly announcing that it is for sale. This discretion is a significant advantage, particularly for high-priced properties, in special situations (divorce, estate), or when the owners are prominent figures.

Legal Obligations in a Private Sale

Anyone selling privately is subject to the same legal obligations as in any other real estate sale:

• Energy Performance Certificate: Must be presented no later than at the time of the viewing (Section 80 GEG); a violation may be subject to fines.
• Duty of disclosure: All material defects known to the seller must be disclosed-even if the purchase agreement contains a disclaimer of liability.
• Accuracy of information: Incorrect area measurements, erroneous construction dates, or undisclosed encumbrances in the land register can lead to the sale being contested or to claims for damages.
• Brokerage law upon engagement: Since the Residential Real Estate Brokerage Fees Act (2020), the brokerage commission for residential real estate sales in Germany must be split equally between the buyer and seller if the broker is engaged by both parties.

Private Sales of Commercial Real Estate

Private sales are also the norm for commercial real estate-offices, retail spaces, and industrial properties. Here, there is often greater room for negotiation: in addition to the purchase price, warranty provisions, rent guarantees from the seller, or earn-out clauses are frequently negotiated. Commercial buyers typically conduct a more comprehensive due diligence review than private residential buyers, which can prolong the private sale process.

Practical Tip for Property Owners in Nuremberg and Franconia

In Nuremberg and the metropolitan region, private sales through a local real estate agent are the norm. Especially in sought-after locations such as Erlenstegen, Laufamholz, or Stein near Nuremberg, pre-registered prospective buyers from our network often act faster than public listings-and typically achieve higher prices because genuine demand meets a concrete offer.

We determine the market-driven purchase price in advance, prepare all documentation, and support our sellers from the initial consultation through to the handover of keys. Typically, we coordinate discreet viewings for qualified pre-registered clients even before the public market launch-this significantly shortens the marketing time and minimizes the effort for our sellers. In more complex situations, such as a private sale prior to a foreclosure auction, we work closely with the financing institution to develop a solution that is viable for all parties.

Frequently Asked Questions

Can I sell my property privately without a real estate agent?

Yes. There is no legal obligation to hire a real estate agent. However, a professional private sale requires considerable expertise: pricing, contract documentation, buyer credit checks, and knowledge of legal obligations. Mistakes can be costly-both due to setting prices too low and due to liability risks associated with undisclosed defects. Statistically, sales facilitated by an agent typically achieve higher prices than private sales.

Is a private sale faster than a foreclosure auction?

Generally, yes. A foreclosure auction can drag on for months or years; a private sale, with proper preparation, can often be completed in eight to fourteen weeks. The proceeds from a private sale are typically significantly higher than those from an auction. Exception: Very specialized or hard-to-access properties for which there is little market demand-in such cases, finding the right buyer can take longer even in a private sale.

Can a bank object to a private sale?

No, if the owner is still solvent and the mortgage is fully paid off with the proceeds from the sale. If a foreclosure auction is imminent, the owner must convince the bank to suspend the proceedings in order to gain time for the private sale. If this is successful, the private sale is the better solution for all parties.

What documents do I need for a private sale?

The documents typically required include: a current land registry extract (no older than three months), an energy performance certificate, building plans and building permits, a declaration of division and WEG documents (for condominiums), operating cost statements (for rented properties), and a site plan. The notary also requires identification documents for both parties, as well as relevant commercial register extracts for limited liability companies (GmbH) or other corporations.

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