What is communal planning and urban development.jpg

What do we mean by municipal planning? This communal planning and organization of the communal territory allows in general to take into account the particularities of the various parts of the communal territory and it is guided by the master plan of land use.

It includes the provisions and objectives of the RGD and makes mandatory the sectoral master plans and land use plans, while remaining consistent with the law of April 17, 2018 in relation to land use planning when we have such a measure shows necessary. 

With regard to urban development, it is the set of objectives and approaches and other measures necessary to guide and direct the evolution of localities and cities taking into account their popular, ecological, economic, social, cultural, financial and spatial resources that create the general framework. 

## What are the objectives of communal planning & urban development?

Their missions or objectives are to guarantee the respect of the general interest by ensuring the population optimal living conditions by a harmonious development of all the communal territories. 

**The more detailed objectives are as follows:**

- an efficient use of land and space, both urban and agricultural, ensuring complementarity between economic, ecological and social objectives 
- harmonious development of urban and rural structures, including communication and service networks, and provision of structures in accordance with the objectives of general spatial planning 
- a careful use of energy, saving energy or rather using renewable energies. 
- development of urban and rural structures with a mix of capacity to improve the quality of life of populations and the urban quality of the locality. 
- the respect of the protection of the natural environment and the landscape in the pursuit of the objectives
- the guarantee of public safety and hygiene. 

What are the objectives of communal planning & urban development ?

What are the objectives of land use planning.jpg

The aim of spatial planning is to ensure respect and general interest by providing the population with a stable standard of living and optimal conditions, and to enhance sustainable development concerning all parts of the national territory. 

The Land Use Plans observes and monitors territorial development and ensures that sectoral, communal or inter-communal, national, cross-border and international policies that have an impact on territorial development.

**There are 2 categories of Land Use Plans:**
- a master land use plan
- a sectoral master plan

The master land use plan was developed for the overall transportation concept and geographic development. 

And the sectoral master plan, it is more about everything that is legal and land use plans. 

## Definition Master Plan for Land Use Planning

It defined an integration strategy for sectoral programs that have an impact on territorial development

## What are the fields of action of the master plan for land use planning?

The master plan for land use planning adapts an integrated approach to land use planning and develops links with the following fields of action 

- urban and rural development
- transport and telecommunications
- environment and natural resources

## Definition Development and Attraction Center System

The Development and Attraction Center is a system of urban centers or localities, which are so well-equipped with public or private services that they are able to provide a more or less important supply function, not only for themselves, but also for their hinterland. 

The Development and Attraction Center systems are classified in a hierarchical manner according to their importance and performance. 

Here is one way in which they are classified: 

- top order (the city of Luxembourg)
- middle order (Esch/alzette)
- regional centers (e.g. Mersch, Redange) 

## WHAT IS THE CONCEPT OF TRANSPORT AND DEVELOPMENT?

A study presented by the government was developed in January 2004, to analyze the impact of sustained economic and demographic growth, as well as for the organization of transport in order to evolve a medium and long term strategy to better combine land use planning, and also for the planning of transport and protection of natural areas.     


## WHAT IMPACT DO SECTORAL MASTER PLANS HAVE?

The sectoral master plans have a direct impact on the territorial organization and land use at the national level, and consequently, the instruments to set up the spatial development of Luxembourg in the medium and long term.

The sectoral master plan is mandatory by the Grand Ducal Regulation that came into force **on March 1, 2021**, which includes written or graphic requirements that can: 

- Prohibit or limit the possibility of the municipalities to designate or proceed to the extension of urbanized areas or intended to be urbanized. 
- Restrict the choice of municipalities to the land use patterns to be planned.
- Prohibit the designation or extension of additional areas of a given land use pattern. 
- May require reclassification of areas allocated to an orderly use pattern.
- Imposes a prohibition or limitation on building, construction or linear facilities.  

**There are two types of sectoral master plans:**

- Primary sectoral master plans → these plans are drawn up in the areas of transportation, housing, farmers, and areas of economic activity, and concern the major fields of land use planning. 
- Secondary sectoral master plans → these plans have a less direct impact on land use than the primary master plans; they generally concern specific facilities that need to be organized and regulated in a nationally consistent and efficient manner and taking into account the objectives of the (master program)  

## WHAT ARE THE OBJECTIVES OF THE LAND USE PLAN?

A sectoral master plan has as objectives to establish rules necessary for the development options, servicing, or the development or neighborhoods that it intends to make a construction. 

So more precisely, it is a development plan for a national interest that accesses the cadastral parcels of one or more municipalities, forming a determined area to be developed, giving it a use.

A concrete and detailed land use plan, if necessary, adapted to the level of implementation. 
It is elaborated in accordance with the options of the master plan for land use planning and on the decisions taken by the Government in council. 

What are the objectives of land use planning?

What documents must a real estate agent register.jpg

What documents must a real estate agent register? 

- the sales mandate 
- the compromise of sale 

The deadlines are : 

In the case of a real estate agent, he must submit the documents within 10 days. 
For a client who sells his property alone, he has a period of 3 months. 

- The registration fees are to be paid by the purchaser 
- The registration fee for sale is 5% +2/10 = 6%. 
- The rate of the mortgage transcription fee = 1%. 
- Total of 7% are charged to the buyer of the property. 

## What is a tax credit?

When it comes to first-time real estate purchases in Luxembourg, a person can benefit from a tax credit of €20,000. 

## What are the conditions to benefit from a tax credit?

The purchaser must declare in writing to the administration, within 3 months, any transfer or change of mission of the building concerned. 
That is to say, the purchaser must respect certain conditions such as : 
- Personal occupation of the property concerned for 2 years from the date of signing the notarial deed. 
- No renting during the 2 years nor installation of office or the person exercises his professional trade.

**(except exception)**
- Illness. 
- Death of the spouse or divorce.
- Forced sale of the building. 
- Expropriation for public utility.

And depending on the financial situation of the client, with all the expenses that he needs to finance. It is also possible not to use the entire sum of 20,000 €, and could leave part of his credit for a later purchase. 

## Is there a specific regime?

Yes, in case the client intends to resell, it is necessary to inform the notary when signing the notarial deed, in fact this avoids the client to pay the 1% rate of the transcription right. 

**Refund of registration and transcription fees**

If a person buys a property and sells it within 2 years, he/she gets back 6% of the registration and transcription fee. 
    
And if a person buys a property and resells it within 4 years, he/she will get back 4.8%.  

## Are there any special cases for the payment of registration fees?

Yes, when it comes to the sale (VEFA) of new constructions. For example, if the existing construction is at 40%, the client will pay in relation to what already exists, i.e. 40% too. Regarding the tax credit for VEFA the deadline for repayment is longer than an existing property, it is 4 years and there is a possibility to extend. And everything concerning the VEFA, there is no compromise, but rather a contract of reservation.

## Is there a communal surcharge for living on the territory of Luxembourg City?

Persons living on the territory of the city of Luxembourg, by sale or exchange, donation or similar acts, are affected by a tax equal to 50% of the reducted registration fees.
That is to say, the 6% registration fee + 1% registration fee + 3% reducted registration fee, total = 10%.

**Exception**: single family homes.

What documents must a real estate agent register?

What is money laundering and terrorist financing.jpg

In this article, we want to explain to you what is money laundering and terrorist financing? And how does it work? 

## What is the purpose of money laundering?

Money laundering involves the reuse of proceeds (money) of criminal origin to disguise their illegal origin. 

- A primary offense 
- Creating a legal entity 
- Hiding a criminal activity

## What are the stages of money laundering?

### The stages of money laundering:

- Placement or injection of an account at the bank 
- Dishonestly introduce dirty money to hide the origin of the crime. 
- Then make purchases of bank securities, investment in real estate or legitimate acquisitions.

### Stages of terrorist financing:

- Placement of assets in the financial system.
- Filling, hiding or transferring funds to several institutions to hide the origin.
- Distribution of funds to finance criminal or terrorist activities.

## What is a primary offence?

Primary offences are when we talk about drug trafficking, kidnapping, pimping, theft.

Knowingly facilitating, by any means, the misrepresentation of the nature and origin, location, disposition, movement or ownership of criminal funds 
e.g. drug dealer 
- knowingly assisting in the placement, concealment, disguise, transfer or conversion of criminal funds 
- Acquire, hold, use criminal funds knowing at the time of receipt that they are derived from one or more primary offences 

All professionals (bank, real estate, notary, lawyer) 

**The penalties are :**
fine from 1250 to 1,250,000 € or 1 to 5 years in prison recidivism 
following the law of November 12, 2004 as amended on (February 12, 2018) payment in cash for a maximum moment of 10,000 € professional obligations in AML. 
Circular AED N°764 of April 29, 2013 for real estate agents

## What are the professional obligations of a real estate agent?
 
To detect on the identity of the customer, and if we notice that it is a customer at risk, we must make a declaration of suspicious operations.

## What are the vigilance measures to be taken?

- Identification and authentication of the customer (from the 1st contact) 
- Identification of the beneficial owner 
- Name filtering with watch lists. 
- Constant vigilance in the business relationship. 
- An obligation to keep documentation 

It is necessary to have information on its activities, its purpose, planned business, the economic origin of funds.

**Required data:**

- for natural persons → passport, photo+ signature, proof of recent residence 
- for legal persons → we need to do more verification

- the status of the company, recent extract of RCS
- the beneficial owner
- the legal status of the legal entity 

## What is a PEP person?

It is politicians like (head of state, head of government, minister, ambassadors, officers, armed forces...) and it also concerns direct family members. 

And so there are certain procedures to be put in place.

## What steps should we take when we have a PEP client?

- Obtain authorization from a higher level of the hierarchy before carrying out a business relationship.
- Establish the origin of the assets, and the origin of the funds involved in the transaction. 

As a precautionary measure, it is necessary to regularly update the client's data. 
Note that the retention of documents against money laundering is limited to 5 years, and for commercial documents, it is 10 years. 

What is money laundering and terrorist financing?

What is a syndic of co-ownership .jpg

You will first need to know what a condominium and a lot are to answer this question.

A co-ownership is a group of at least two lots, two co-owners on the same piece of land. It is the whole of the co-owners who are obliged to own two or more lots. 

Each lot has thousandths and a vertical cadastral number.

A co-ownership has a total of 1000 thousandths, and each co-owner holds a number of thousandths that is defined in relation to the size of his property, including the common parts.

The trustee is a natural or legal person, he is also the legal representative of the syndicate of co-owners, the mandate of a trustee is maximum three years and is renewable after vote of the general assembly with an absolute majority. 

## What is the role of a syndic of co-ownership ?

- To act in justice
- To carry out maintenance work
- To observe the respect of the rules of co-ownership
- Conclude contracts to buy or sell 
- To maintain general assemblies
- Intervene for urgent works
- Establish the budget and do the accounting 
- Advise the co-owners

In parallel, there is also the syndic of co-owners

## What is a syndicate of co-owners?

A syndicate is the legal representative of the community, with a legal personality which is automatically created when the first lot is sold. 

It is the syndicate that makes the decisions and not the syndic. 

In a condominium, are there common parts and private parts? 

**- PRIVATE PARTS:** belong to one or more co-owners 
**- COMMON PARTS:** belong to the syndicate of co-owners 
(e.g.: stairwell, technical premises, garbage rooms, foundations, load-bearing walls) 

In a condominium, are there common facilities? 

- The facilities that are owned by a few co-owners and not by all co-owners.
- Participation is based on the degree of usefulness of these elements for each lot 

### Is the general meeting of co-owners mandatory?

There are different steps for the general assembly: 

- send a letter of convocation to all the co-owners (with the date, time and place of the meeting)
- the trustee maintains an attendance list for the co-owners of each thousandth
- The syndic is able to give a count for each co-owner once a year after the GA.

## What is the majority in a general assembly and what is it used for?

There are four different majorities:

- Simple majority
- Absolute majority
- Majority of % OR double majority 
- Unanimity 

**- Simple majority:** it is applied, concerning the decisions of the annual budget, monthly advances, reserve funds, working capital, maintenance work or repair of cracked or broken facades. 

_Majority of thousandths present and represented 
approved if > 300/1000 vote for._

**- Absolute majority:** it applies when we talk about any appointment/revocation of the syndic and the syndical council, and give authorization to some co-owners, maintenance and improvement works, cracked facade and bad energy pass certificate, new insulating facade. 

_Approved if > 500/1000 vote for it (so 500/1000 must attend the GA). _

- Majority of % OR double majority: When changing the acts of disposal, acts of real estate acquisition (renting a common garden or giving, modification of the condominium regulations, improvement of cracked facade and bad energy passport certificate, new insulating facade). 

(even a single garage owner counts for the decision of the general assembly) 

_at least 750/1000 of ALL co-owners + majority of ALL co-owners_

**- Unanimity:** all modifications of the distribution of charges, change of the destination of the private parts (installation of a medical cabinet in the apartment) it does not concern the works.

If only one co-owner votes against, even if he only owns one place, then the vote does not pass. 

_Approved if 1000/1000 vote for._

What is a syndic of co-ownership ?

renting_or_buying_a_property_in_Luxembourg_a04a8dc4bb.jpeg

Deciding between renting and buying a property? Maybe you're ready to move out of your rental and into your own property. Or maybe you're moving to a new city and are considering renting a property before making the leap to homeownership. Whatever your reasons, take a moment to consider how renting or buying real estate will affect your life now and in the future.

## Should you rent or buy real estate? 3 questions to ask:

Each of us has a unique lifestyle, financial situation and long-term life goals that influence our decision to rent or buy real estate. To sort it out for yourself, ask yourself three main questions.

### 1) Is renting or buying right for you?

One of the most important questions to consider when deciding whether to rent or buy a property is your timeline. For example, if you've just moved to a new city, are planning a job change soon, or don't plan on staying in the community for long, it may make more sense to rent. Selling real estate costs money, and if you sell too soon after purchase, it may not be worth it.

On the other hand, if you have found a community where you want to put down roots, buying may be the best option. Owning property offers more stability and perhaps more financial benefits to buyers who plan to live in an area for more than a few years.

### 2) What is your financial capacity?

Buying and renting each have their own costs to consider - and that can make the difference between becoming a renter or owner. To buy, you'll need enough money in the bank to make a down payment and pay closing costs. The amount of these fees depends on your home loan, your lender, the housing market and other factors. Many buyers make a down payment of only 3%, although a larger down payment usually saves you money on interest and mortgage insurance.

There are also ongoing costs associated with owning a property - mortgage payments, maintenance, utilities and various types of home insurance. Learn more about the costs of buying real estate or use a mortgage calculator to get an idea of what you can afford.

If buying a property is draining your savings or putting a strain on your monthly budget, it may make sense to continue renting for the time being. To rent, all you usually have to do is fill out a rental application, pay the application fee, put down a security deposit and pay the first and last month's rent. Deciding to rent can also give you time to improve your credit rating, which can save you money in mortgage interest and other loan costs.

Keep in mind that your monthly rent payment is likely to increase each time your lease comes up for renewal. Depending on the housing market, you could end up paying more for rent than you would for a mortgage payment. A rent or buy calculator can help you assess what's best for your situation, but keep in mind that this is only a rough estimate.

### 3) Will renting or buying a property fit your lifestyle?

Renting or buying real estate is also a matter of lifestyle. Owning a home is a long-term investment that can help you build wealth over time. This means treating your property as an investment and caring for it accordingly, with regular maintenance and repairs. Buying also comes with pride of ownership and the freedom to make decisions about style and improvements that you typically don't have as a renter. In fact, in some markets, buying a property with a garden, a garage or that third bedroom you've been dreaming of may be more affordable than renting an equivalent property.

On the other hand, you may have good lifestyle reasons for continuing to rent rather than buy a property. Renting might be preferable if you would rather not have the responsibility of maintaining the property and the likelihood of having to pay for emergency repairs. Perhaps a change is on the horizon, such as a career transition or a child attending a different school, where renting real estate makes more financial sense and better fits your long-term goals. Renting can also be a good choice if you have an active lifestyle, move frequently or simply prefer more freedom and are not ready to make a large commitment.

## Renting or buying: advantages and disadvantages

When deciding whether to rent or buy a property, consider the pros and cons of each option.

### Advantages of renting a property

- Property repairs: If something breaks in a property you rent, it is usually the landlord's responsibility to fix it, not yours. So when the air conditioner stops working in the middle of summer, you don't have to spend thousands of dollars to fix it.

- Monthly housing costs: In most cases, when you rent a property, your monthly housing costs stay the same, except for minor fluctuations in utility costs. Your base rent doesn't change and you probably won't need to budget for emergency repairs, maintenance costs or property taxes.

- Flexibility: You can move at the end of your lease or relocate to another city without having to worry about selling your property. Renting a property also allows you to see what styles of property you like, what floor plans you don't like, and if a neighborhood is right for you, before you buy a property.

- Investment Opportunities: Renting can free up some of your income, since you won't be spending it on repairs or improvements. You may have additional funds, also known as disposable income, to invest in developing your finances rather than investing in real estate. You may even be able to save money for a down payment.

### Disadvantages of Renting Real Estate

- Temporary: The biggest advantage of renting is also the biggest disadvantage. If you plan to put down roots in a community, renting may not be the best option, as most leases only last a year or two.

- Uncertainty: You don't know when the property owner will decide that they no longer want the responsibility of being a landlord. When your rent comes due, they may decide to sell, which means you will have to move out. Similarly, when your lease expires, your apartment may not offer you the opportunity to renew your lease.

- Possible rent increases: When you are a tenant, each year you renew your lease, your rent may increase. Depending on whether or not you negotiate the rent, the new cost may be out of your budget. In this case, you will probably have to find a new rental.

- No home equity: As a renter, you build no equity - that is, the percentage of the property's value that you paid for, rather than what your lender still owns. When you pay your rent each month, you are helping someone else build equity, when you could be using those funds to improve your own finances.

- As-is property: You generally do not have the ability to modify a rental property to suit your needs. Some landlords may allow you to make small changes, such as painting the walls of your living space, but you'll probably have to repaint them in the original color when you move in.

### The benefits of buying real estate

- Build equity: As a homeowner, you will have the opportunity to build equity and potentially increase the value of your property. The longer you own your property, the more equity you have and the more money you are likely to make when you sell it. Equity can also allow you to borrow money for major expenses and build wealth that will benefit you later in life.

- Customizable: Buying a property means it's yours - you can paint it, remodel it and personalize the space to your liking without having to follow the rules of a landlord. This pride of ownership is a big plus for those looking to move in.

- Stability: You won't be at the mercy of a landlord who may decide to sell the property once your lease is up. You have the freedom to decide how long you want to stay in the property, and ultimately if and when you want to sell.

- Tax Benefits: Some homeowners may receive tax benefits, which are reductions in your federal or state taxes. Many first-time buyers can take tax deductions, such as on their mortgage interest, which can save you money at tax time.

### Disadvantages of buying a property

- Closing costs: During the real estate buying process, you must also consider typical closing costs and other upfront costs and expenses - inspection, title insurance, lender fees - which often total 2-5% of the purchase price of the property. However, there are many down payment assistance programs that can help you cover some closing costs.

- Property Value: Ideally, the value of your property will increase between the time you buy and the time you sell, but this is not always the case. Events beyond your control, such as a change in the economy, can potentially reduce the value of your property. Then there's the money you spent on improving the property and other fees you paid as a homeowner, such as HOA dues, homeowners insurance, etc. The longer you stay in your property, the more time you have to spread out these additional costs and increase your return on investment.

- Property Maintenance Costs: With ownership of a property comes the responsibility of maintaining it. If there is a leak in the roof, it is your responsibility to take care of the repairs and pay for them. You will also need to be prepared for emergency repairs, such as a burst pipe or broken furnace.

- Investment Limits: When you buy, you may be putting most of your money into one investment - the property. This means you may not have additional money to invest in stocks or other investments. That said, any improvements you make to your property could turn into an attractive long-term investment when you sell.

- Property Taxes: Another important cost to consider as a homeowner is property taxes. Depending on the area in which you are purchasing a property, property taxes can be a significant cost to consider. If you rent an apartment, you will not pay property taxes. If you are renting a property, your landlord will likely factor property taxes into your monthly rent payment.

## Things to remember: renting or buying a property

Whether you decide to rent or buy a property, it's a personal decision that involves looking at different aspects of your life. From your financial situation, to your lifestyle, to your employment situation and long-term goals, there are many factors that can determine whether you should rent or buy a property. If you're still unsure which option is best for you, talk to a mortgage lender or real estate agent who can give you professional advice.

Renting or buying a property in Luxembourg?

4 questions to ask before renting a house.jpg

Are you looking to invest in the Luxembourg rental market? It is essential to ask yourself the right questions before committing to a rental. Your answers to these questions will help you formulate a plan for renting out your property while drawing your attention to potential weaknesses. Wondering how to get started? Follow these tips we've provided for success!

## 1. Determine your needs before you rent a home

It's important to know where you're going before you move into a rental home. Will you consider student tenants? A husband and wife?

You'll need to think about a number of factors, such as location, proximity to essential infrastructure, desired length of tenancy (one year or several years), etc.

Did you know that if you are renting a property that is already furnished, you can charge a higher price? Determine your goals to choose the best possible scenario.

## 2. Develop a plan to find and secure a rental home

Once you know what you want to accomplish, choosing a plan will be less difficult.

It's a good idea to plan ahead if you want to invest in a rental property for your retirement, for example. What would you prefer: to live in the city, close to all amenities, or in the country?

A young couple without children is an ideal tenant for a residential property close to all amenities, as they are likely to want to buy a home in the near future, making it easier for you to break the lease when the time comes.

## 3. Consider the prospect of resale

You should always consider the market value of your rental property before signing a lease. Even if you don't have a long-term goal in mind at the moment, it's still worth considering.

It may be more difficult, for example, to find a tenant for a home in the country than for a home in or near a major city. It is possible that the increase in value will be reduced accordingly.

If you meet this last condition, your whole approach may change.

## 4. Set the rent and arrange financing for your property

Another factor that can derail your strategy is how you plan to pay for it.

Do you know if you have the financial means to meet your rental goals? Do you, for example, have the financial means to rent a fully furnished home? You can't settle for poor quality furniture that will reduce the value of your home and require more frequent replacement.

The process of determining the rent will also help you set a budget. Keep in mind that you will not receive any rent during periods when the property is unoccupied. It is important to consider all the costs associated with a rental property, such as maintenance fees, taxes and condo fees. You may have to front money for some costs.

Everything you need to know to develop a well thought out home rental plan is outlined above. Still need more information? Feel free to ask our Nextimmo real estate agents your question and we'll do our best to help you.

4 questions to ask before renting a house

Why can an owner's emotions destroy a real estate sale.jpg

Private owners who want to part with a house or apartment often make many mistakes. When it pays to hire a real estate agent and how to do without.

The children inherit a condominium, but do not want to live in it or become owners. Grandma and Grandpa become dependents and need to be placed in a nursing home. Couples separate and have to sell their house. The husband dies and the house becomes too big. Or the owners simply see a good opportunity to get rid of a cheaply rented property - who knows if property prices will continue to rise in the future?

Either way, there can be many reasons for selling a property. And currently, more and more owners are considering selling their property. The supply of properties for sale has already increased by 30%, as a comparison between the second quarter of 2021 and the second quarter of 2022 of the real estate portal atHome shows. 

In contrast, requests to buy properties have fallen across Luxembourg in the space of a year, with one linked to the other: _"The marketing of properties for sale is becoming more complex due to the fall in demand, which is why more properties are once again being offered on the open market"_ Nextimmo reports.

But what is the best way to sell a property? And what are the possible mistakes? First of all, there is usually one question: with or without a real estate agent? Many private sellers may think: "_I can do well without, I do not have to pay thousands of euros in commission._" But there are good counter-arguments. Private sellers often underestimate their own feelings. Rudolphe Aben says that.

## Owners tend to think their property is more valuable than it actually is

Such owners see their property as a jewel that may objectively be more of an old, worn-out box, overlooking defects such as a lack of roof insulation that any outsider would notice immediately. Economists talk about the property effect. This states that everything that belongs to the owner has a higher value than what belongs to others. 

"_It's psychologically difficult to distance yourself from this and put yourself in the role of a potential buyer from the outside, so to speak,_" explains Rudolphe Aben.

It is best to hire a real estate agent: he knows what prices can be achieved where, can recognize defects and, in the best case, can put himself in the position of the buyer and the seller as a "competent diplomat." However, if the sale is organized privately, the statements of potential buyers can be offensive to the seller. One may find oneself unsympathetic - and already the sale becomes more difficult or even impossible because emotions come into play. 

_"It's also very difficult to negotiate on your own behalf, especially if you don't do it all the time,"_ explains Rudolphe Aben. 

In the end, therefore, it can be worthwhile to hire a broker - because they achieve such a good sales result that the commission paid by the seller (which is then often secretly added to the sales price) is recouped by the higher sales price.

Rudolphe Aben warns private sellers who prefer to try their luck on their own, without an agent, against one mistake in particular: relying on property appraisals, available for free or for a small fee, to find the right price. 

_"These appraisals are not worth a shot of powder,"_ he said. They are merely a "marketing gimmick to get addresses of owners willing to sell." They are merely statistical values from databases, which have no meaning in rural areas because of the small number of cases, and in large cities "provide a false figure because they are calculated on the basis of asking prices."

However, these are usually 15-25% higher than the achievable prices. In addition, the results depend, among other things, on what the owners enter and how they assess, for example, the building condition or the need for modernization. This leads to misjudgements, as private individuals "always see their property more beautiful". It is better to have a market value appraisal prepared by a real estate valuation expert. 

This costs between 650 and 1500 EUR, but the price also depends on the property. However, Rudolphe Aben stresses that a market value determined in this way is only an important indication and that the price depends on the market situation. "It is the buyer who determines the price," he says.

## The inspection:

Rudolphe Aben advises thinking in advance about when and how best to present the property. If you schedule appointments so that potential buyers follow each other around and see each other, you're only fueling competition. This may cause potential buyers to make up their minds more quickly. 

The expert advises to be patient. It can take a few months for a property to sell. You should also not be too disappointed if the first meetings are unsuccessful. This may be because the ad has attracted two groups that are not really buyers: "the seers" who are curious and consider property viewing a hobby. And the perpetually undecided. This group yearns for a dream home or apartment at a bargain price. But both together prove to be a mirage," warns Rudolphe Aben.

## Pricing:

The expert recommends to consider before, which realistic minimum price one would like to obtain after deduction of possible concessions in each case. On this price one can add about ten per cent, in order to have a negotiating range. Buyers are often satisfied if they manage to reduce the price by as much as five percent of the asking price. Rudolphe Aben warned against making too high an offer. "Overpricing is the most common reason for the failure of proposed private sales," he said. If the seller has to lower the asking price because the property has been unsuccessfully advertised for months, it is considered "burned." It then becomes even more difficult to sell at a reasonable price.

## The price threshold:

Private buyers often have a round limit themselves. Example: a property must not cost more than EUR 600,000. Rudolphe Aben advises to set the price below such price thresholds, e.g. at EUR 598,000. "A little price psychology can often work wonders," he says.

## The price talk:

Selling an apartment or house from private to private is ultimately a matter of trust. _"The more credible and trustworthy you appear to your potential buyers, the greater your chances of selling,"_ says Rudolphe Aben, who warns against typical rookie mistakes, such as constantly talking to potential buyers, forcefully praising the property or making the buyer feel that you need the money from the sale urgently and quickly.

_"It's better to let the potential buyer talk about his impressions first,"_ advises the expert. Nevertheless, sellers are, of course, obliged to inform potential buyers about the main defects and hidden faults or about a community of owners with fierce conflicts. 

Sellers should always provide an answer to the question "Why are you selling?". When price negotiations start in concrete, you should know the prices of similar properties in the area to be able to argue. It is also helpful for sellers to always be aware of one principle: "A property is only worth as much as someone is willing to pay for it".

Why can an owner's emotions destroy a real estate sale?

A modern and optimized sales process in real estate.jpg

80% of real estate agents do not earn money because they waste their time with useless appointments or with clients who do not have the financial capacity. Therefore, we recommend the following sales process. 

## Our sales process:

### 1. The right pre-qualification:

1.1. The customer calls or sends his request by email. He wants to take a tour of the property or has questions.

1.2 We contact - immediately - the client. If the potential client is not reachable by phone, we send a request by email and SMS asking to be contacted again.

1.3. The customer wants to make an appointment, we propose a video conference. If the customer does not want a video conference, he/she must come to his/her office.

1.4. We show the property to the customer during this online appointment. During the online appointment, we take a 3D tour. 85% of it is identical to a real visit. However, a 3D online tour does not replace a physical visit. Several scenarios are possible.

S1: If the customer likes the property, we check with a mortgage simulator whether the customer has the financial capacity to buy the property. If the calculation is positive, we set up a personal meeting.

S2: If the client does not like the property, we search our system for another property in our portfolio. If this other property satisfies the client, we check with a mortgage simulator if the client has the financial capacity to buy this property. If the calculation is positive, we make an appointment.

S3: The client does not like any property in the portfolio. We register him in our database and propose him in the future other properties that we have managed to bring back.

S4: The client likes the property, but cannot buy it because his income is too low. We look for a cheaper property in our portfolio.

1.5. If the client likes the property, we also make sure to answer all their questions. In addition, we ask in advance if the client is willing to pay the asking price. There is no point in making an appointment with a client who is not ready to purchase at the required price. If the person interested in buying already makes a price offer by phone / online, please discuss it with the owner / seller first, otherwise we are wasting all our time.

### 2. The right closing of the sale :

2.1: We schedule an appointment with the client on site. If the potential buyer is married, he must be accompanied by his partner in order to avoid the standard excuse "I still have to talk to my wife". Also, we remind the client an hour before our appointment. We arrive on time.

2.2.  If the client still likes the property as much as he did during the 3D visit, we immediately issue the sales contract (compromise/offer to purchase) and let the client digitally sign the compromise or the offer to purchase on the spot. 

2.3. The compromise or offer to purchase is NOT immediately countersigned by the seller/owner.

2.4. The contract is initially sent to the credit intermediaries. In addition, we set up an immediate digital appointment between prospective buyers and the credit intermediaries.

2.5. Our partners take a close look at the financial capabilities of our customers. Credit brokers tell us if the file will be accepted by the banks. 

2.6. If so, the owner/seller countersigns the contract online directly. 

### 3. The right measures to fight money laundering:

3.1. We ask the buyer for all the necessary documents :

- identification documents and
- residence certificates of all parties to the transaction.

3.2. The compromise will be registered without delay with the Administration of Registration, Domains and VAT. A letter is sent to this authority with the compromise and another stamped envelope for the compromise to be returned to us by this authority after payment.  

3.3. We continue to assist the buyer and the seller in the sales process. An appointment with the notary is arranged by us. The notary receives a written statement that the price is correct as well as the energy passport. 

## Explanation of why we do some things differently from other real estate agencies

In these times of Covid, high gas costs, global warming and increasing digitization, we need to be as digital as possible to provide clients with the best possible outcome.

That is, not to waste the time of either the seller or the buyer.

The seller should always be well informed about the sale of his property. He must not be disturbed by real estate tourists, or he must always clean his property at each visit. Thanks to the credit brokerage, the buyer gets a better credit offer than if he went through a classic bank. This alone can amount to 200 to 1000 € per month if the buyer gets a credit that is perhaps half a percent cheaper.

Real estate agents are also more productive, more economical and more environmentally friendly. Thanks to an increase in transactions, there are also more taxes for the government and the banks earn more.

## Financial pre-qualification:

Why do you have to ask the client about their salary or financial situation when they haven't seen the property yet? It is none of your business what your client earns.

Because of anti-money laundering laws alone, the real estate agency needs to know how and how much the potential buyer earns.

But that's not the only reason. What is the point of wasting half a day making appointments and doing paperwork when you can do it in 1 minute? What's the point of making physical appointments if the potential client doesn't get the credit afterwards anyway?

## Why doesn't the owner immediately countersign the offer or compromise?

If the compromise is signed by the owner, the owner is blogged for 4 to 6 weeks, as he cannot sell the property to someone else who may have a better chance of getting a loan without the owner being required to pay a 10% penalty. During the period when the potential buyer is looking for a loan, the owner is therefore contractually locked in. That's why, with us, the buyer must first talk to the loan officer before the owner signs.

## Why shouldn't the potential customer talk to his bank alone and ask for a loan?

Bank employees have a different motivation to grant a loan to a potential client than a credit broker who gets 3000 € to 6000 € commission per successful loan.

Very bad in this respect is for example the Luxembourg Savings Bank (BCEE), which pursues the strategy that you need to have a lot of equity to buy a property and preferably have a civil servant's salary (A1 career). It is preferable, for example, to receive 5 counter-offers from other banks so that it is obliged to grant the lowest credit rate if it wants to keep its client.

If the potential buyer applies for a loan through such a bank, it is quite possible that one of them will discourage the potential buyer from buying and that the latter will miss the opportunity to become a homeowner and benefit from the strong appreciation in the real estate sector every year.

Credit brokers are free and the more they negotiate with the banks themselves, the better deal they can arrange for the buyer. Is it better to pay 4% with your main bank or 3.5% with another?

## Electronic signature

Is this legal in case of a lawsuit? Why not paper?

We would go so far as to say that with Adobe Sign, a contract is even more legal than a traditional paper contract. With Adobe Sign, everyone gets a copy of the contract and a contract can always be found. Moreover, it cannot be falsified or manipulated with a fake signature. Plus, if you use the paper version, you waste a lot of time going back and forth. Who wants to go to Esch and Ettelbruck when it can be done online in a minute?

## Signing the contract after the physical appointment:

Why does the customer have to sign immediately after the physical appointment?
Sales psychology: the client is committed to the contract in writing and cannot change his mind. As a real estate or sales agent, our role is to help the client make a decision and close the deal immediately. Many bad salespeople don't dare ask the client to sign and continue to chat in the hope that the client will close the sale himself.

Another objection to this procedure: When the client signs a compromise or an offer, he has to buy the property. You can't get the client to sign right away, he hasn't talked to his bank yet. Answer: There is a "suspensive clause", if the client receives a no from 3 different banks within 4 to 6 weeks, the offer or the compromise is not valid. But for us it doesn't matter, because if the credit broker says that the buyer doesn't get the credit, then the sales contract will be cancelled anyway.

## Virtual tours

Why start with an online conference? Why not set up an immediate meeting with the customer? 

### Frequent counter-arguments from customers

It would be even better if the client saw the property immediately. People don't have time to set up an appointment on the Internet. Other real estate agencies don't ask questions.

### Time is money!

Many inquiries come from so-called real estate tourists. You have to make an appointment with the owner, then call the real estate tourist again to make an appointment. Once the meeting is set up (between 30 minutes and 1 hour wasted). Then you have to go to the appointment. After the appointment, the real estate tourist must "always think about it". Real estate tourists often don't even show up (1 to 4 hours wasted on the way there and back). During this time, we could have helped the really interested potential buyers.

## We have to find the best offer for our clients!

The client is not buying our property, but the property that fits their needs. Many real estate agents try to sell properties like cars. "Oh my gosh, it's so beautiful here". "No problem, it's not a problem, the room can look bigger if you remove the doors, etc".
A good realtor, looks for what the client really wants to buy. We don't sell, we make them buy.

All of this is much easier to do with online tours than with traditional tours.

## Recommended tools:

- **Portals to receive client requests :** AtHome, Immotop, Wortimmo, Vivi
- **Digital meetings:** Google Meet, Zoom
- **Digital signature:** Adobe Sign, Docusign
- **Customer management system:** Apimo, Easy-to-pilot
- **Calendar management:** Google Calendar
- **Document management:** Google Docs, Google Drive
- **Real Estate Brokers:** Credit immo, athome finance, Albalux, Nexfin, Fidem
- **Credit simulator:** Nexfin, athome Finance
- **Cameras to create 3D visits:** Matterport and Girafe360

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