Selling an old property to the city can be an attractive option, especially if the city is interested in the property to use it for urban projects. However, this process comes with some specific aspects and benefits to consider. In this article, you will learn what you should know if you are considering selling your old house to the city.
Why the city wants to buy an old house
Cities and municipalities are often interested in acquiring old properties in order to use them for various urban projects. These can include:
- Urban development and modernisation
Old buildings can be renovated and converted into modern residential or commercial space. - Public facilities
Cities can use properties for the construction of schools, kindergartens or other public facilities. - Preservation of monuments
Historic buildings can be restored and preserved as cultural monuments. - Expansion of green spaces
Old houses can be demolished to make room for parks or other green spaces.
Advantages of selling to the city
- 1. secure sale
A sale to the city usually offers a secure and reliable transaction, as cities offer financial stability. - 2. fair valuation
Cities are often willing to pay fair market prices, especially if the property is important for city projects. - 3. less negotiation
The sales process can be less time consuming as cities often negotiate less than private buyers. - 4. fast processing
As cities often have clear timetables for their projects, the sales process can be completed more quickly.
Challenges when selling to the city
- 1. bureaucratic processes
Selling to a city administration may involve bureaucratic hurdles that could delay the process. - 2. restrictions and conditions
Cities may have specific requirements or conditions that must be met, which may mean additional costs or efforts. - 3. market price vs. market value
There may be differences between the price offered by the city and the market value of your property.
Steps towards sale to the city
- 1. contacting the city administration
Contact the relevant city department to express your interest in selling. This may be the department for urban development, property management or construction planning. - 2. property valuation
Have your property valued by an independent valuer to get a realistic idea of its value. This will also help you in negotiations with the city. - 3. obtain an offer
Obtain an official purchase offer from the city and check the conditions carefully. Pay particular attention to the price offered and any additional conditions. - 4. conduct negotiations
Even if cities negotiate less, you should make sure that all your questions and concerns are clarified. It can be helpful to bring in an experienced real estate agent or lawyer to assist in the negotiations. - 5. signing the contract
Have the purchase contract checked by a lawyer before you sign it to ensure that all legal aspects are taken into account. Make sure that the contract contains all the important details and agreements.
Tips for a successful sale
- Prepare documents
Make sure that all necessary documents such as land register excerpt, building plans and energy certificate are available and can be provided to the city. - Condition of the property
Consider whether renovation work is necessary to increase the value of the property and make it more attractive to the city. - Professional advice
Consult a real estate agent or lawyer to guide you through the sales process and ensure you get the best terms.
Legal basis
In Germany, various laws and judgements regulate the sale of properties to the city. Particularly relevant are:
- §Section 490 BGB
This paragraph regulates the borrower's special right of cancellation and can be important for existing loans. - Building Code (BauGB)
Contains important provisions on urban development and the acquisition of property by the public sector. - BGH judgements
In various judgements, the Federal Court of Justice has strengthened the rights of property sellers and clarified the framework conditions for municipal purchases.
Support from Wienroth Immobilien GmbH & Co. KG
Thomas Wienroth and his experienced team at Wienroth Immobilien GmbH & Co KG are on hand with extensive expertise and many years of experience to guide you through the entire sales process. We will assist you with the valuation of your property, liaising with the local authority and negotiating to ensure you get the best terms.
Conclusion
Selling an old house to the council can offer many benefits, including security, fair prices and a quick turnaround. However, it is important to be aware of the process and the potential challenges. Thorough preparation and professional advice can help ensure that the sale goes smoothly and successfully.
At Wienroth Immobilien GmbH & Co KG, Thomas Wienroth and his team are ready to help and advise you. Contact us for more information and personalised advice. We will help you to make the sales process as stress-free and successful as possible.