Selling your property privately in Luxembourg - a real challenge

Selling a property privately can be a real challenge. In our agency, we increasingly find that many clients underestimate the decisive parameters for the sale of their own home and only seek advice when it is almost too late. That's why we have taken it upon ourselves to provide a little clarification.

Determining the best price for your property

First of all, it is important to determine the true market price of your property. The market price is crucial in order not to "burn" your property on the market. If the price is too high, you won’t generate any demand. Successive price reductions then often lead to your property being sold below market value and after a very long period of time. The same applies vice versa if you choose a market value that is too low. This can quickly lead to a loss of market value. The real market price results from the interplay of demand and supply. To determine this real market price, one needs some skill and knowledge of the market.

Since every house and its plot are individual, properties cannot be compared quickly and easily. It is important to carefully determine and compare all factors, from the living space, usable space, special areas and property size to the quality and equipment of the property. You should not let yourself be influenced by personal and emotional components, but be aware of the real value of your property. As a rough guide, you can look at the prices of comparable properties in the area.

The best tip here is to seek advice from an expert and have your property professionally valued. Watch the video on how we determine the best possible price for your property. Our video explains how our real estate experts determine the best price for your property.

When determining the price, also bear in mind that it is advisable to think about renovations or refurbishment work before selling a property. This can have a very positive effect on the selling price of your property. Read our blog article on the best renovation tips before selling your property.

The necessary documents for your property sale

Another challenge is the compilation of all the necessary documents required for the private sale of real estate. Obtaining them can be costly and time-consuming.

Here are the most important documents for the private sale of your property:

The energy pass (not older than 10 years).
An accurate floor plan with correct measurements
A living space calculation
The extract from the land register
Proof of renovations carried out
The service charge statement
Heating cost statement
In the case of studios or apartments, a declaration of division and minutes of the owners' meetings.

Missing documents can protract the sales process considerably. Moreover, it becomes more and more important that all the necessary documents are digitized. This simplifies amongst others the interaction with banks and credit institutions in addition.

How to market your property properly

Once the price has been determined and all the documents are gathered, the property must be put on the market. But who is the target group? Where can you publish the sale of a property and how do you reach the right customers?

Generally speaking, a target group-oriented strategy is the best solution. Determine exactly who your target group is. Is your property ideal for families with children, singles with time-consuming jobs, young couples, students or expats? Then align your communication strategy in such a way that you reach your defined target group in the best possible way. You need to find the right communication channel, use the right language, use the right tools and choose the right timing.

Real estate portals are a classic and straightforward tool to publish and showcase your property. There are plenty of them in Luxembourg. Choose the portal that suits you best. However, you have to reckon with some costs, depending on the range of the portal and the size and visibility of the advertisement. You can book different packages with the portals. Please bear in mind that the longer your property is on the portal, the further it will be pushed back and will no longer receive the attention it did at the beginning of the marketing period.

With advertisements on real estate portals, you can reach a large target group in one go. However, this also carries a risk. As your property is known throughout the country, it is tricky to make price adjustments without potential buyers noticing and losing trust. In addition, the best strategy for marketing is targeted communication of your offer, that fits your target group best. So you have to position yourself broadly and check and weigh the different channels, right up to your daily newspaper.

A property advertisement needs appealing pictures. With the latest mobile phones, you can already take good quality photos, but a good picture depends not only on the camera, but also on the right angle, the lighting and the appropriate post-processing. In order to get noticed next to the many estate agent advertisements with professional pictures, it is advisable to take a professional photographer on board. The cost of a photoshoot depends on the size of the property and the number of rooms to be photographed, but the price should not be underestimated.

Virtual tours of the property are also very useful. Especially in Luxembourg, where the real estate market is characterized by an international target group, it is important to give potential buyers the opportunity to visit a property virtually. Engel & Völkers Luxembourg cooperates with Matterport, the market-leading 3D data platform.

Besides the photos, the property description is very important. If you are contacted by prospective buyers, you can save yourself a lot of talking by having the first questions clarified by a well structured property exposé. Here, as much relevant information as possible should be presented in concise words.

The most important information to mention is:

The location
The size of the property and the plot
The year of construction
The condition
Number of rooms & bathrooms
The furnishings
Meaningful photos

For our exposés we have professional floor plans and a site plan with a compass card drawn up. This way the exposé is convincing through professionalism and structure. Read our blog article about how to get more out of your property exposé.

The communication with potential buyers

Once your property has been advertised, the first inquiries from interested parties will follow. These should be processed quickly and carefully. Depending on the attractiveness of the exposé and the location of the property, this can be a large number of inquiries per day, especially in the beginning. They often ask for further information about the property and for appointments to view it. Here it is particularly difficult to distinguish genuinely interested parties from nosy neighbours, so all inquiries should be taken seriously. Communication can be arranged by telephone as well as in writing. It is important that you are always available and know the answers to possible questions. A private property sale is therefore not for someone who doesn't like to talk on the phone or who has a demanding job in which they are involved all day and cannot answer the phone.

The property visits

Once the first interested parties have contacted you, they usually want to visit the property straight away. This part of the sales process should not be underestimated, because the first impression of your property counts! Of course, you know your house or flat best, have your favourite places and probably also an emotional attachment to your home. However, a viewing should be kept as objective as possible. After all, future buyers probably have very different tastes and ideas of what a perfect home should look like. Nothing should get in the way of your imagination for possible changes. Therefore, you should remove personal belongings and excess decorative items and all furniture should be in place.

In addition, a property visit should be planned very precisely. In which room do I start, where do I end? Which details and anecdotes should I tell, which should I keep to myself? What is the best time of day for a viewing? Planning is especially time-consuming if you work full time and can only accept appointments after work or on the weekends. You should not underestimate the time required, because, in addition to the appointment and the guided tour, you should also stay in contact with the interested parties after the viewing and be available for any questions that might come up at a later stage.

The contract conclusion and property transfer

After many viewings with interested parties (or even not-so-interested parties), you have now received an offer. The purchase price negotiation is about to take place. This step in the sales process can take place in person, by phone, or by e-mail and takes time. As a rule, buyers have their own idea of the value of your property and thus try to push down the purchase price. This often requires a lot of perseverance and patience. Prepare arguments that justify the value of your property and be persistent. This part of the property sale is the most difficult for many private sellers because the risk is great to eventually sell the property below its value or to repudiate the buyer because of personal fondness - stay objective and neutral.

Checking creditworthiness is very important in the search for the perfect buyer. If the prospective buyer can finance the property, the next step is the notary appointment. Here it is important to discuss the purchase contract in advance with the notary and to check the final contract in detail. After all, it is not uncommon for renegotiations just minutes before the contracts are signed. Thus, enough time should be planned.

Once the contract has been agreed upon and signed by both parties, the property is handed over. The buyer and seller meet at the property to hand over the documents and keys. Ideally, you should also be available to the buyer for questions after the sale. Moreover, a handover protocol should be drawn up, which is then countersigned by both parties.

Selling your property with a professional broker

A private property sale is possible, however, it takes a lot of time, patience, and also some costs. This should not be underestimated and one should reconsider one's decision against a professional estate agent if necessary.

If you decide to sell your property with Engel & Völkers, you can be sure that you have a trustworthy and competent partner at your side from the first to the last step. Our support will not only save you time but also money. We analyse your needs and respond to your wishes so that the marketing of your property meets your requirements exactly. With us, you benefit from an international network that can draw on over 1 million search clients. Our modern marketing possibilities put your property in the perfect light. From virtual tours with our Matterport technology to status checks through our Homeowner App, to regular personal advice from our experienced property consultants, your property sale is in the best hands with us.

If you have any questions regarding the sale of your property, please do not hesitate to contact us. Our advisors will be happy to assist you with no obligation and support you in all property-related matters.

Engel & Völkers

Licence Partner Luxembourg

4, Place Joseph Thorn

L-2637 Luxembourg

Luxembourg
Phone +352 28 26 17 27