Private sale

In a private sale, the owner sells their property directly to a buyer without the assistance of a real estate agent-with the aim of saving on the agent’s commission. At first glance, this approach seems cost-effective, but it carries significant risks: incorrect pricing, incomplete documentation, legal pitfalls, and a limited reach to potential buyers can end up costing more than the commission saved.

Everything that needs to be organized for a private sale

Those who sell without an agent take on all tasks themselves: professional photos and creating a property description, pricing based on market data, placing ads on portals, coordinating and conducting viewings, checking the creditworthiness of prospective buyers, conducting negotiations, compiling all documents relevant for the notary (land registry extract, energy performance certificate, declaration of division, lease agreements, etc.), and accompanying the buyer to the notary appointment. This effort should be realistically calculated.

Many private sellers underestimate the time investment. Simply coordinating viewing appointments with a large number of interested parties, responding to inquiries, and verifying financing confirmations can take several weeks. Added to this are the technical and legal aspects: Anyone who provides incorrect information in the property listing-for example, regarding living space or the energy performance certificate-is personally liable in the event of damages. Missing or outdated documents can also result in a scheduled notary appointment having to be canceled at short notice, which undermines the buyer’s trust and, in the worst case, causes the purchase agreement to fall through.

Common Risks in Private Sales

Common mistakes in private sales include: underestimating the market value (studies show that sellers on average receive 5-15% less than in agent-assisted sales), limited reach (without an agent’s network, the pool of interested buyers remains smaller), lack of expertise in negotiations and legal pitfalls (disclosure obligations, fraudulent misrepresentation, warranty exclusions), as well as suboptimal property presentation (unprofessional photos, incomplete information). In particular, the issue of disclosure obligations is often underestimated by private sellers.

Special caution is required when it comes to credit checks. Without the experience of a professional real estate agent, it is difficult to distinguish genuine willingness to buy from non-binding interest. It is not uncommon for private sellers to invest weeks in working with a prospective buyer who ultimately fails to obtain financing approval. Requesting a financing confirmation from the buyer’s bank early on can reduce this risk, but without the necessary experience, this request is often made too late.

When Can a Private Sale Be a Good Idea

There are situations where a private sale works well: when the buyer is already known (a sale within the family or to acquaintances), when there is a highly liquid market with strong demand for properties that sell quickly, or when the seller has extensive real estate and legal knowledge. In these cases, the commission saved can indeed be a real advantage.

Preparation is also crucial: A private seller who provides all necessary documents in a complete and up-to-date manner, takes professional photos, creates an appealing property description, and carefully checks the creditworthiness of prospective buyers has significantly better chances of a successful transaction. The duty of disclosure-that is, the obligation to inform the buyer of known defects-is just as binding in a private sale as it is in a sale through an agent. A concealed defect can lead to claims for damages even after the notarized purchase agreement has been signed.

A sale within the family circle or to long-time acquaintances still requires careful legal safeguards. Even in trusting relationships, the purchase agreement should be notarized, and the purchase price should be determined based on current market data. Undervalued prices among family members can have tax implications; an appraisal by a certified expert provides clarity in this regard.

Practical Tip for Property Owners in Nuremberg and Franconia

The Nuremberg real estate market is complex: price differences between neighborhoods are significant, and prospective buyers often arrive well-prepared with clear price expectations. Selling here without market knowledge can easily result in giving away potential purchase price gains. Especially in sought-after neighborhoods like St. Johannis, Gostenhof, or the Old Town, where demand significantly exceeds supply, professional marketing can help achieve a significantly higher purchase price.

Upon request, we also offer owners a valuation-only service so that you can at least enter into a private sale with a solid understanding of market prices. In addition, we are happy to assist with compiling the necessary documents for the notary-ensuring the closing goes smoothly once you’ve found a buyer. After all, even in a private sale, the preparation for the notary appointment should not be underestimated: A poorly prepared notary appointment can delay the closing by weeks.

We also recommend updating the energy performance certificate in a timely manner if it is more than ten years old or if the building has been renovated since then. In Nuremberg, there are several dena-certified energy consultants who can issue an updated certificate on short notice. A modern, correctly issued energy performance certificate with a favorable energy efficiency rating is an important selling point in a private sale-one that is often not fully leveraged without professional advice.

Frequently Asked Questions

Do I really save money with a private sale?

That depends on the individual case. Studies show that private sellers, on average, sell for 5-15% below the price a professionally marketed property would have fetched. When you factor in the commission saved, there is often no net benefit or only a small one. The difference is particularly noticeable with higher-value properties.

What documents do I need for a private sale?

At a minimum, you will need: a current land registry extract, an energy performance certificate (mandatory under the Building Energy Act), a site plan and floor plans; for condominiums, the declaration of division and current condominium association minutes; and for rented properties, lease agreements and operating cost statements. Missing documents will delay the notary appointment and may result in deductions from the purchase price.

Do I have to provide an energy performance certificate?

Yes. Under the Building Energy Act (GEG), sellers are required to present the energy performance certificate no later than at the time of the viewing. Violations can be punished with fines of up to €15,000. The certificate must be either a demand-based or consumption-based certificate.

How do I check a prospective buyer’s creditworthiness without a real estate agent?

The safest way is to request a current financing confirmation from a bank or a loan broker, confirming that the buyer can obtain the loan in the required amount. This confirmation should not be older than three months. For cash buyers, it is recommended to request a bank statement or a bank certificate confirming the available funds. Private sellers should not rely on non-binding commitments or general income statements-only a written financing commitment provides sufficient security.

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