A divorce, a death or a financial bottleneck can make the distress sale of a property necessary. Despite the time pressure, however, nothing should be rushed.
It can happen so quickly: Suddenly, for whatever reason, a seemingly insurmountable financial gap opens up, a partner wants a divorce, siblings have to be paid off – the last resort often seems to be the emergency sale of an apartment or house.
However, a distress sale has its pitfalls. These range from unrealistic prices to legal problems arising in the course of the transaction, for example because a permit for a building project that was once carried out, the extract from the land register, the utility value appraisal or the statement of operating costs are missing. “All of this unnecessarily delays the urgently needed sale,” says Stefan Esterhammer, real estate expert at Raiffeisen Bezirksbank Kufstein.
Support, do not exploit
To prevent this from happening, reputable partners should therefore be called in, especially for distressed sales, who support the seller and do not take advantage of their situation. “Competent estate agents enter the market with realistic prices that are determined objectively based on the market situation, condition and location of the property. They also make sure that all the necessary documents are available and that the financing is in place. All of this shortens the sales phase, ensures legal certainty on both sides and thus helps to avoid disputes after the purchase,” explains the estate agent.
More security
The fact that the purchase is handled by notaries or lawyers acting as trustees is a further security factor for both seller and buyer. “The buyer can be sure that they will be entered in the land register. And the seller can be sure that they will receive the purchase price,” explains Esterhammer. In addition, estate agents act as a kind of buffer between the seller and prospective buyers, preventing the latter from possibly trying to push the price down. “In this case, you can counteract this as an estate agent,” says the real estate expert.
Talking in good time can prevent a distress sale
However, a hasty distress sale of the property can often be avoided if, according to Esterhammer, talks with the financing bank are sought early enough. “We hardly ever have a distress sale because we usually find a solution,” he says. He has another tip for all those who urgently need to sell their property: “Get the property ready for sale as quickly as possible. Muck out, clean the apartment or house and – if necessary – spruce up the garden as well.
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