10 risks in private real estate sales

“For many people, their own property is the biggest asset in their lives. The sales process should be designed accordingly professionally. Relying on an experienced partner not only saves time and nerves, but also benefits you financially.“
Christine Zeder, Head of Marketing Pfäffikon

1. the emotional bond

A house or apartment is often linked to decades of memories. However, this emotional closeness can impair the necessary objectivity in the sales process. For example, it can be difficult to react objectively to purchase offers or to assess the market value soberly. The buyer’s choice is also often influenced by sympathy or personal ideas rather than, as it should be, by facts. Sometimes such ideas even block a successful conclusion. Criticism of the property is quickly taken personally. Differing ideas about design or room layout are sometimes misunderstood as criticism of oneself, and people begin to defend their decisions – instead of taking an objective look at the implementation of market-driven adaptations.
 

2. the realistic selling price

Many owners sell their property below value because they do not recognize the potential of their property. It often happens quickly – a supposedly good offer from a friend or neighbor is on the table and you just want to make it easy. But real estate is individual. Especially with collector’s items, there is often more to it than meets the eye. Although online advertisements and free valuations provide an initial guide, they are not a reliable measure of the actual value of a property. The prices published there reflect the offer – but say nothing about the price actually paid. There is often a considerable difference between the advertised and actual selling price, especially in times of restrained demand or rising financing costs.

A well-founded assessment by qualified experts provides clarity. It takes into account not only the location, condition and possible uses of the property, but also current market movements and regional characteristics. If you go into a sale without a professional valuation, you risk an unrealistic price positioning. This can have undesirable consequences, such as long marketing times or later price reductions, or even lead to lost profits because the property was sold too cheaply.

3. the quality of marketing

Today, the first impression is almost always made digitally – and often within a few seconds. Poor image quality, superficial texts or incomplete information mean that an object is not even shortlisted. Ideally, however, the first impression ensures that a prospective buyer continues to subconsciously check out the property with a deeper emotional connection.

Professional marketing begins with the visual presentation: high-quality photographs, informative floor plans, a carefully designed exposé. But it does not end there. Targeted communication via suitable channels, combined with well-founded property information and a consistent presence, is also crucial. Marketing builds excitement throughout the sales process to guide buyers, retain them in the property and give the seller a better result.

An additional success factor is the network: experienced real estate marketers have lists of potential buyers and personal contacts, are anchored locally and have access to investors. This makes it possible not only to extend the reach of the offer, but also to market it to the right target group. This is another reason why trust, visibility and credibility lead to more efficient sales.

4. missing sales documents

Once you have found a prospective buyer who is fully committed to the purchase, you should seize the moment. Interested parties have gained confidence in this phase and show a high willingness to buy. However, the process comes to an unnecessary standstill if crucial documents such as an extract from the land register, building plans, an energy certificate or proof of renovations are missing. The due diligence cannot be carried out and the financing cannot be checked. The initial enthusiasm wanes, interest wanes – and ultimately the sales result suffers as a result. If important documents are only organized or even forgotten shortly before the notary appointment, there is a risk of delays and often even withdrawal by the buyer.

5 Legal and tax pitfalls

Legal and tax aspects are a particularly sensitive area. You should be prepared for these typical surprises:

• Property gains tax: This is often underestimated or even forgotten. Without a precise calculation, you could be in for a nasty surprise – especially with old properties or inheritances. All cantons have specific regulations on property gains tax – the assessment basis, tax rate and exemptions differ, sometimes considerably, depending on the canton.
• Prepayment penalties for early termination of a fixed-rate mortgage can be expensive – depending on the canton, the deduction from taxable property gains is regulated differently and is not permitted everywhere.
• Conversions without planning permission: Conservatories, terraces or roof extensions built at a later date without planning permission can make it difficult or impossible to sell the property.
• Easements, annotations and reservations: They often go unnoticed in the land register – but are a critical point for buyers.
• Unclear ownership structure: In the case of communities of heirs, no sale is possible without agreement.
• Unresolved building rights situation: Building laws and zoning plans change over the years. Does a property have potential for expansion, does it still comply with the prescribed zone or is it even overused?
• Building regulations are constantly being tightened: if an older oil heating system is objected to, a new heating system is required. If a property is newly located in a hazard or landscape protection zone, this will have an impact on future construction activities.

6. the right way to deal with interested parties

Not every request is worth the same. Some people are just curious, some just want to compare or don’t have the financial means to buy. Others even have bad intentions. If you don’t make a targeted selection and ask the right questions, you will quickly lose valuable time and money. Visits must be well organized, accompanied and followed up. Without thorough preparation, you never know exactly who will be at the door for the viewing appointment. Overall, a structured, professional approach to prospective buyers is important – from the initial contact to the follow-up of the viewing.

7. present correctly

The emotional attachment of many owners is also evident during viewings: instead of presenting what is relevant for potential buyers in a sales-oriented manner during the viewing appointment, they primarily emphasize what was important to them personally. This pushes the property into the background and the focus shifts to the seller. As a result, prospective buyers cannot view the property impartially and do not get the neutral impression they need to make an informed decision. This reduces the impact of the viewing and can ultimately have a negative impact on the likelihood of closing the deal.

8. negotiating with buyers

Price negotiations, discussions about defects, deadlines or special requests – all these topics harbor potential for conflict and are rarely purely factual. Many owners underestimate how emotionally charged such discussions can become, especially if you are attached to the property yourself or have put a lot of heart and soul into it. It’s easy to lose your professional distance, get involved in endless discussions or give in to the emotional charge more than you actually planned. Without neutral, experienced support, there is a high risk of getting bogged down in details and losing track of the negotiation process or making unfavorable concessions. A clear, objective framework helps to protect your own interests while at the same time making the sales process constructive and efficient.

9. the time required

Selling a property can become a full-time job: Preparing the sale, organizing and carrying out viewings, obtaining documents, clarifying questions, making phone calls and coordinating the notary’s office and bank. Many people only realize this when they are in the middle of it. If you don’t have the time required for all these tasks, the result will suffer. 

10. security when closing a sale

Closing the sale is more than just a final formal step – this is where it is decided whether the change of ownership will be smooth and legally secure. Payment processing, for example with regard to payment deadlines, promises to pay, escrow accounts or any collateral, requires the utmost care. Last but not least, the handover must also be planned precisely. This includes documenting the condition of the property, handing over the keys and any agreements on use, right through to the transfer of ownership. If you proceed without a precise plan or do without professional support, in the worst case you risk legal disputes, costly rectifications or even non-payment of the purchase price. Clean processing, on the other hand, protects all parties involved and creates trust.

If you are planning to sell your property, it is worth taking a structured and well-accompanied approach from the outset. In the end, working with a broker pays off not only financially – but also through clarity, security and time savings. This gives your cherished property the appreciative, careful sales process it deserves.