Between the amount you ultimately want to achieve and the figure stated in the listing lies a deliberate decision: the negotiation buffer. Anyone who sets the asking price exactly at their desired amount gives away room for negotiation – anyone who sets it too high scares off interested parties before the first inquiry. We show you how to derive a viable asking price from the market value and target price, how large the buffer may be in 2026, and how to state the price correctly in the property brochure.
Asking Price, Target Price and Market Value: Clearly Separate Three Figures
Before you enter a figure in your listing, you should distinguish between three amounts that are often mixed up in everyday practice:
- The market value ( Verkehrswert) is the objectively justifiable value of your property. You determine it using the standard land value, comparable prices and, if necessary, a valuation report – a separate step that we cover in detail elsewhere.
- The target price is the amount you realistically want to sign for. It is based on the market value but takes your personal lower limit into account.
- The asking price is the published figure. It is created by adding a negotiation buffer to the target price and adjusting the result to price thresholds.
Setting the asking price is therefore not a valuation, but the final step in preparing the marketing – a strategic decision. Legally, you have complete freedom in this regard: The advertised price is not a binding offer to sell, but merely an “invitation to submit an offer” (invitatio ad offerendum). The statutory binding effect of an offer under Section 145 BGB only applies to the buyer’s offer – it does not apply to the figure in your property brochure. You may therefore use the asking price freely as a tool.
Four Steps to the Asking Price
Step 1: From Market Value to Target Price
First determine what must remain at the end of the transaction. Mentally deduct all items that reduce your proceeds – such as an early repayment penalty for an existing loan, any possible speculation tax or the costs of the energy performance certificate and listings. This gives you your pain threshold. Your target price is above this threshold but remains close to the market.
Step 2: Determine the Negotiation Buffer
Almost every buyer expects to be able to negotiate. Therefore, add a calculated buffer that gives the prospective buyer a sense of achievement without pushing you below your target price. How large this premium may be depends on the location, condition of the property, and market phase – the details are covered in the next section.
Step 3: Use price thresholds and psychological pricing
Now comes the part that private sellers overlook most often. Buyers search on portals and metasearch engines such as TraumImmo using round price limits. Anyone listing at 505,000 euros falls outside the range of all prospective buyers filtering up to 500,000 euros – even though the difference is minimal. Therefore, set the asking price just below a round threshold, for example at 499,000 instead of 505,000 euros. Such psychological prices also appear more affordable without requiring you to make any significant real concession.
Step 4: Choose how to state the price in the property listing
Finally, decide how the price will appear in the listing: as a fixed price, negotiable, or – less commonly – upon request. This designation sends a signal to the market and should be chosen deliberately (more on this below).
How much buffer is customary in the market in 2026?
As a rough guide, asking prices are generally 5 to 10 percent above the desired sale price; in most cases, a reasonable premium is between three and eight percent. How much of this is actually conceded in the end depends heavily on market conditions – and these vary considerably by region in 2026.
According to the Federal Statistical Office, prices for residential real estate rose again by 1.4 percent in the 1st quarter of 2026 compared with the same quarter of the previous year and by 0.3 percent compared with the previous quarter (Destatis, press release no. 219 of June 25, 2026). The market has therefore stabilized, but is developing unevenly: condominium prices rose by 3.6 percent in sparsely populated rural districts and by 2.9 percent in independent major cities outside the top 7, while the increase in the seven largest metropolitan areas was only 0.3 percent. For single- and two-family homes, by contrast, the top 7 metropolitan areas led with 1.4 percent.
For your asking price, this means:
- Popular, well-maintained locations: Properties sell close to the asking price here. A buffer of two to four percent is sufficient.
- Weaker locations or need for renovation: Buyers will factor in a discount anyway. Five to eight percent is defensible – but the price must still not seem excessive.
- In the stabilized market overall, a smaller buffer is usually the wiser choice, because overpriced listings are more quickly noticed as “shelf-sitters.”
Fixed price, negotiable price, or price on request?
How you label the price changes prospective buyers’ expectations:
- Fixed price: You signal that there is no room for negotiation. This attracts determined buyers and saves discussions – but only works with a market-appropriate, tightly calculated price from the outset. Anyone who writes “fixed price” and then gives a discount loses credibility.
- Negotiable price (VB): The addition “VB” explicitly invites negotiation. It suits a price with a built-in buffer, but can also be understood as an invitation to push the price down substantially. For high-quality properties, “VB” can sometimes appear less confident than a self-assured fixed-price listing.
- Price on request: This option conceals the figure entirely. It is suitable for exceptional or discreetly marketed properties, but costs you reach – prospective buyers who filter by price will not see your listing at all. For a normal sale, we advise against it.
For most private sales, a carefully calculated price with a moderate buffer is the best choice – whether with or without “VB” is secondary to the amount itself.
Bidding process: the deliberately low asking price
An opposing strategy is the bidding process. Here, you deliberately set the asking price below the market value in order to attract as many prospective buyers as possible, and let the final price emerge from the competition among bidders. The appeal: With strong demand, competition often drives the price above the amount a conventional listing with a buffer would have achieved.
However, the approach has pitfalls. It only works in sought-after locations with many financially capable prospective buyers. If bidders fail to materialize, you risk selling below value. Important: A bidding process in a private sale is not an auction – you are not bound by any bid and do not have to accept the highest bidder. In any case, the sale only becomes binding upon notarization (§ 311b BGB). Until the notary appointment, you retain complete freedom of choice.
FAQ about the asking price
Should I set the asking price too high or too low?
Neither – ideally, the price should be just above the target price while remaining close to market value. A significantly inflated asking price reduces the number of inquiries and causes the property to become a “hard sell”; a price that is too low gives away money unless you are deliberately conducting a bidding process.
What percentage of negotiating leeway is customary?
As a rule of thumb, three to eight percent above the target price is customary; in sought-after seller’s markets, more like two to four percent. The asking price should never significantly exceed the market value, otherwise your listing’s reach will suffer.
What does “VB” mean in a property listing?
“VB” stands for “negotiable basis” and signals that the stated price is negotiable. It is not legally binding, but merely an indication of willingness to negotiate.
Can I change the asking price later?
Yes, at any time. However, a price reduction after just a few weeks appears like an admission and invites further demands for a discount. A realistic price from the outset is usually the better approach.
Do I have to state a price in the listing at all?
It is not mandatory, but strongly recommended. Listings without a price are excluded from the portals’ search filters and reach noticeably fewer potential buyers.
Advantages and disadvantages of a generous negotiating buffer
A substantial markup sounds convenient, but it has two sides:
- Advantage – negotiating reserve: You can accommodate buyers and give them a sense of achievement without dropping below your target price.
- Advantage – anchoring effect: A higher starting price tends to shift the negotiation result upward.
- Disadvantage – less reach: An asking price that is too high falls outside the portals’ price filters and is found less often.
- Disadvantage – longer marketing period: Inflated prices extend the time on the market and weaken your position with each passing week.
- Disadvantage – forced price reduction: Anyone who has to reduce the price afterward raises doubts about the property and provokes further demands for a discount.
Conclusion: The asking price is a strategic decision
Setting the asking price does not mean recalculating the market value, but rather forming a smart figure from the target price, market conditions, and price thresholds. Three to eight percent above the target price is a good starting point in most cases in 2026 – in the stabilized market, rather toward the lower end. Pay attention to round filter thresholds, choose deliberately mark the price and keep the price justifiable. And because only the notary appointment creates a binding commitment, you retain complete freedom until signing to accept or reject any offer.