What ancillary costs must be expected when buying real estate?

Every purchase of land or real estate in Germany is taxed with a land transfer tax. The amount varies between the federal states. In Bavaria, it is currently 3.5 percent (calculated on the purchase price less movable goods, such as the value of the inventory).

Notary fees are incurred for the notarisation of the purchase agreement and the registration of a land charge in the land register. These amount to approximately 1.5 to 2.0 percent of the purchase price (degressive with increasing purchase price amount). In addition to drawing up the draft purchase contract, the notary also follows up on the correct execution.

For the consulting and brokerage services, the real estate agent charges a customary brokerage fee of 3.57 percent incl. VAT of the purchase price. The services include conducting individual viewings, taking care of all formalities, clarifying any legal issues, checking the creditworthiness of prospective buyers, agreeing the purchase contract, comprehensive service around the notary appointment (preparation, personal accompaniment) as well as support beyond the conclusion of the sale.

If financing is necessary for the purchase of a property, costs are incurred, for example, for interest and the processing fee.