Have you inherited a flat in Cologne and wonder what it's really worth? A misjudgment can quickly cost you several tens of thousands of euros, whether through inheritance tax or in a sale. This guide shows you how to accurately determine its value and safely navigate financial pitfalls.
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The topic briefly and concisely
The market value is the decisive factor for inheritance tax, compulsory portion claims, and a fair sale price.
Property prices in Cologne have stabilised in 2024; the average price for an existing apartment is €4,127/m².
A professional counter-assessment can correct an overvaluation by the tax office and significantly reduce inheritance tax.
Inheriting a property is an emotional event that is quickly overshadowed by a central question: What is the true value of the inherited apartment in Cologne? Without a well-founded answer, you are navigating blindly through decisions about selling, renting, or personal use, risking expensive conflicts with the tax office or co-heirs. Therefore, a professional valuation is not an optional step but the strategic foundation for all further actions. It protects your assets and creates a fair basis for the future. This article guides you through the crucial phases of valuation and provides you with a clear, data-driven orientation.
Summary: Your Guide to the Correct Property Value
Market Value as a Basis: The current market value is the decisive factor for inheritance tax, compulsory portion claims, and a fair sale price.
Cologne Real Estate Market 2024: Prices for existing apartments have stabilised after a decline and now average 4,127 euros per square metre.
Three Valuation Methods: Depending on the type of property, the comparison value, intrinsic value, or income value method is applied to objectively determine the value.
Use of Official Data: The standard land value from the BORIS-NRW portal is an important, but not the sole factor for the land value of your property.
Actively Reduce Tax Liabilities: High exemptions (e.g., 400,000 euros for children) can often completely avoid inheritance tax; a counter-expert opinion can correct an excessively high valuation by the tax office.
Step 1: Understand the Cologne real estate market and correctly assess prices
The value of a property is largely determined by its location. The Cologne property market showed stability in 2024 following a price correction, with the number of transactions rising by 22% compared to the previous year. For an inherited flat in Cologne, it's crucial to know the price ranges of the different districts.
Square metre prices for condominiums vary significantly. In moderate locations, prices are around 4,430 euros per square metre, while in prime locations like Altstadt-Nord, they can exceed 9,500 euros. An average existing flat cost 4,127 euros per square metre in Cologne in 2024, which represents a slight decrease of 1.4% compared to 2023. An initial indication is important, but only a professional analysis can determine the exact value, such as that offered by our Auctoa Inheritance Manager. These figures highlight why a general estimate without expert knowledge can quickly lead to a loss of over 20%.
These market data provide the foundation, but only choosing the right valuation method leads to a reliable result.
Step 2: Choose the appropriate evaluation method for your apartment
To determine the market value precisely, the German Property Valuation Ordinance (ImmoWertV) prescribes three standardised methods. The choice of method directly depends on the type and use of your inherited apartment.
The comparative value method: This method is the first choice for owner-occupied apartments. Here, the value is derived from the actual purchase prices achieved for comparable properties in the neighbourhood. The appraisal committees of the city of Cologne collect this data, allowing for a market-oriented evaluation.
The income value method: If you have inherited a rented apartment, future income is the focus. This method calculates the value based on achievable rental income, the land value, and the remaining useful life of the building. The property interest rate, which is about 1.7% in Cologne for rental apartment buildings, plays a central role here.
The real value method: If comparable properties are not found, the real value method is used. It determines the costs that a new construction of the property would incur and deducts age-related depreciation.
Often, two methods are combined to validate the result and obtain the most accurate value possible. A well-founded expert report in the event of inheritance is essential. An important component in these methods is the standard land value, which requires a closer examination.
Step 3: Use the standard land value as the foundation of the assessment
Every property valuation literally starts at ground level. The standard land value is the average localised value for a square metre of undeveloped land in a specific zone and is determined annually by the Valuation Committee of the City of Cologne. You can view this value for free via the BORIS-NRW online portal.
In 2024, the standard land values for residential land in Cologne decreased by 10% on the left bank of the Rhine, while they only fell by 4% on the right bank. In prime locations for multi-storey residential construction, the value is around 1,130 euros per square metre. However, this is only an average value and does not take into account the unique characteristics of your property. Variations in layout, developability, or micro-location can affect the real value by up to 15%. For an accurate valuation of the market value for the tax office, the standard land value is therefore just one piece of the puzzle. To start the process, however, you will need a number of documents.
Step 4: Gather all necessary documents for a smooth evaluation
Careful preparation significantly speeds up the valuation process and ensures that all value-influencing factors are considered. An assessor requires a complete data basis to avoid errors that could cost you real money.
Gather the following documents for the valuation of your inherited apartment:
Current land registry extract: Provides information about ownership and encumbrances (not older than 3 months).
Partition declaration: Essential for condominiums, as it regulates the division of the building and special usage rights.
Construction plans and living space calculation: Floor plans, sections, and views in a scale of 1:100.
Valid energy certificate: Legally required since 2014 for sale or new rental; the obligation to present applies already during viewing.
Minutes of the last 3 owners' meetings: They provide information about planned renovations and the amount of the maintenance reserve.
Proofs of modernisations: Invoices for renovation works from the last 15 years.
If you are missing any documents, an expert or our inheritance tax calculator can help you obtain them. With all the necessary papers, you can now proceed to the final, but crucial step: the tax valuation.
Step 5: Optimise inheritance tax and fully utilise allowances
The fear of inheritance tax is often greater than the actual burden. The German inheritance tax law provides for high personal allowances that vary depending on the degree of kinship. For children, the allowance is 400,000 euros per parent, and even 500,000 euros for spouses.
If the determined value of your inherited property is below your allowance, no tax is due. However, the tax office often uses blanket methods for valuation, which can lead to an excessive market value. A privately commissioned valuation report can serve as counter-evidence here and reduce the tax burden by up to 30%. The costs of such a report, which usually range between 1,500 and 3,500 euros, are deductible as an estate liability. If you are unsure whether a sale or letting is more sensible, detailed knowledge of the value provides the necessary basis for decision-making. An accurate valuation is therefore the key to an optimised tax strategy.
geerbte-wohnung-in-koeln-wert-ermitteln
The value of an inherited apartment in Cologne is more than a formal obligation – it is the most important strategic step to secure your assets. A data-driven valuation protects you from excessive tax demands, unjust divisions in the community of heirs, and undervalued sales. By understanding the Cologne market, selecting the right valuation method, and having all documents ready, you establish a solid foundation for all further decisions. Leverage the expertise of professionals to make the process efficient and secure. A sound valuation is your digital compass in the complex inheritance case.
Additional useful links
The Federal Statistical Office offers comprehensive information on construction prices and the property price index in Germany.
Further detailed tables on house prices and land prices in Germany can also be found at the Federal Statistical Office.
The City of Cologne provides articles on relevant topics such as urban development, construction, or housing.
Information on the Common Agricultural Structure and Spatial Development Concept (GARS) for Cologne, North Rhine-Westphalia, is available on the GARS NRW page.
The Soil Guideline Value Information System BORIS.NRW enables the retrieval of soil guideline values for North Rhine-Westphalia.
The official rent index of the City of Cologne provides important information on rental price development.
The Federal Ministry of Justice, through its platform "Laws in the Internet," provides the Inheritance Tax and Gift Tax Act (ErbStG) in the version from 1974.
The Federal Ministry of Finance offers comprehensive information on inheritance and gift tax.
FAQ
How long does it take to determine the value of an inherited apartment in Cologne?
The preparation of a comprehensive market value appraisal usually takes between 2 and 4 weeks after the on-site appointment and the submission of all necessary documents. An initial online valuation, as offered by Auctoa, provides you with a preliminary estimate within minutes.
What happens if the community of heirs cannot agree on the value?
If co-heirs cannot agree on the value of the property, an impartial appraisal by a publicly appointed and sworn expert is the best way to establish an objective value that is binding for all parties (even in court). This prevents lengthy and costly disputes.
Can I conduct the assessment myself?
Conducting your own research on property portals only provides a rough estimate. For legal and tax purposes, such as dealing with the tax office or an heir community, this kind of amateur assessment is not sufficient and will not be recognized. A professional appraisal is indispensable here.
What role does the condition of the apartment play in the valuation?
The condition is a critical factor. An expert assesses the building's fabric, the standard of equipment (floors, bathroom, windows), and any potential backlog of renovations. Modernisations can increase the value by over 15%, while a condition in need of renovation leads to significant reductions.
What is the difference between market value and land reference value?
The standard land value is simply the average price for undeveloped land per square meter in a particular area. The market value (or property value) is the price for the entire property, that is, land plus building, and takes into account individual characteristics such as year of construction, condition, amenities, and the current market situation.
Do I have to accept the inheritance to have its value assessed?
No, you can request a valuation even before deciding whether to accept or reject the inheritance (within the 6-week period). This is indeed very advisable to make an informed decision, especially if you fear the estate may be over-indebted.
