Properties with usufruct or residential rights are among the more challenging sales cases. Many owners initially assume that a sale is hardly possible or can only be realised with high discounts. However, selling a property in Nuremberg shows that a sale is feasible - if you understand how usufruct and right of residence work, how the market reacts to them and how to set up the process correctly.
In this article, I explain what really matters when selling with usufruct or right of abode and how such properties can be sold professionally and predictably.
Usufruct and right of residence - where the difference lies
Both terms are often equated, but have different effects.
Usufruct means that the beneficiary may use the property and even rent it out. He therefore receives the income from the property.
Right of residence means that the entitled person may live in the property themselves, but not rent it out.
This difference is crucial for valuation, target group and marketing.
Why these rights change the circle of buyers
A property with usufruct or right of residence is generally not immediately freely available. This has clear consequences:
- Owner-occupiers are usually ruled out
- Investors move into focus
- Buyers think long-term
- Returns and prospects are becoming more important than immediate utilisation
This is not a disadvantage - it just requires a different approach.
The influence on the market value
Usufruct and right of residence reduce the value because the buyer cannot use the property in full immediately.
The reduction in value depends on
- Age of the authorised person
- Type of right (usufruct or right of residence)
- Scope of utilisation
- Condition of the property
- Amount of potential rental income
The market value is therefore adjusted and not „estimated“. This categorisation is central to a realistic sales price.
How the value is determined objectively
I work with several building blocks in the evaluation:
- Market value as a basis
- Market analysis in the Nuremberg submarket
- Reference objects with comparable rights
- Standard land value for categorising the property
- Material value method for owner-occupied houses
- Income capitalisation approach for rentable properties
The value of the usufruct or right of residence is taken into account mathematically, not emotionally.
Typical misunderstandings of owners
I often hear these assumptions:
- „The right of residence is hardly used, so it doesn't matter.“
- „The usufruct ends at some point.“
- „A buyer can simply cancel.“
In practice, as long as the right exists and is entered in the land register, it must be fully taken into account. Buyers and banks do not ignore such rights.
Banks rate very cautiously
Banks scrutinise properties with usufruct or right of residence particularly closely.
They pay attention to:
- realistic market value
- Duration and scope of the right
- Plausibility of the valuation
- Stability of the investment
A price that is too high can quickly lead to financing problems. That is why a clear, comprehensible valuation is crucial.
Communication with interested parties: Openness is a must
Rights such as usufruct or right of residence must not be glossed over or hidden. I communicate clearly from the outset:
- which right exists
- How it works
- how long it is expected to exist
- how it was taken into account in the valuation
This ensures that only buyers who can deal with the situation get in touch - and prevents subsequent cancellations.
Can a usufruct or right of residence be cancelled?
In some cases a replacement is possible, but it is always individual.
This plays a role:
- Consent of the authorised person
- Economic valuation of the right
- Tax and legal consequences
- Financing options for the buyer
Replacement is not a standard option, but one that should be considered carefully.
Do not overlook tax aspects
When selling with usufruct or right of residence, tax issues may become relevant, particularly with regard to speculation tax.
Whether and to what extent it applies depends on the individual case and must be checked by a tax advisor. I point this out at an early stage so that the time of sale is chosen carefully.
Classify ancillary purchase costs correctly
These properties also incur the usual ancillary purchase costs for buyers:
- Real estate transfer tax
- Notary fees
- Land registry costs
These costs are factored into the yield calculation and influence what buyers are prepared to pay.
The sales process needs more structure
Sales with usufruct or right of residence require particularly clear procedures:
- clean documents
- clear evaluation
- Customised target group approach
- calm negotiations
- Close coordination with the notary
The more structured the process, the lower the risk of misunderstandings or delays.
Typical mistakes when selling with usufruct or right of residence
I see these mistakes again and again:
- Unrealistic price expectations
- Marketing to the wrong target groups
- Lack of transparency
- Specialist agencies involved too late
- Unclear communication with banks
All this can be avoided - with the right preparation.
Checklist: Are you prepared for the sale?
- Is the usufruct or right of residence clearly regulated in the land register?
- Do you know whether it is a usufruct or a right of residence?
- Is there a comprehensible valuation?
- Has the market value been adjusted?
- Have standard land values, market analyses and reference properties been taken into account?
- Is the target group clearly defined?
- Are buyers fully informed about their rights?
Once these points have been clarified, the sale is well positioned.
Conclusion: Sale with usufruct or right of residence is possible - with clarity and structure
When it comes to selling property in Nuremberg, we see this time and again:
Usufruct or right of residence are not a barrier to selling - they just require a different way of thinking.
With an objective assessment, transparent communication, customised marketing and a clear structure, a complex situation becomes a predictable sales process. This is exactly what matters.
