Have you inherited a house and are now faced with the challenge of setting the right sale price? A price too high will deter buyers, while a price too low will erode value. This guide will show you how to secure the maximum proceeds through precise valuation.
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The topic briefly and concisely
Do not rely on the often overly high valuation by the tax office; a counter-expertise can reduce inheritance tax by 20-30%.
In Germany, there are three recognized methods for property valuation: the sales comparison approach, the cost approach, and the income capitalization approach.
Free online calculators are inaccurate; a professional evaluation is essential for a realistic price and legal certainty.
Setting the sale price for an inherited property is one of the most critical steps in the entire process. Many heirs rely on their intuition or outdated information, often leading to misjudgments of 15% or more. An incorrect pricing strategy can delay the sale by months or cost you a significant part of your inheritance. It's not just about finding a number, but making an informed, market-based decision that will also withstand scrutiny from the tax office. We will show you the proven methods with which you can objectively determine the value of your inherited house and effectively avoid pitfalls.
Laying the Foundation: Why a Correct Offer Price is Crucial
Selling an inherited house begins with the most important decision: the price. If you set the price just 10% too high, the sales period can be extended by up to 6 months. On the other hand, a price set too low means a direct loss of assets, which can quickly reach five-figure amounts. The market value is the price that could be achieved in normal business transactions. This value is crucial not only for potential buyers but also as a basis for calculating inheritance tax. A professional valuation for the house sale is therefore not an option, but a necessity for a successful conclusion. Precise pricing is the first step to avoiding financial disadvantages and making the process efficient.
The tax office evaluates with: Understanding the market value for the tax
Immediately after the inheritance, you must inform the responsible tax office within three months. The office then determines the market value for the calculation of inheritance tax, often using a standardised, simplified procedure. This general approach rarely considers individual, value-reducing factors such as a backlog of repairs or legal encumbrances. The result is often a value set 20% to 30% too high, unnecessarily increasing your tax burden. However, you have the right to demonstrate a lower, more realistic value through a qualified counter-appraisal. The costs for such an inheritance appraisal, which start at about 2,800 Euros, are deductible from tax as an estate liability. This ensures you have a fair taxation basis.
Three Ways to Value: Choosing the Right Valuation Methods
The Comparative Method: The Market Sets the Tone
The comparative method is the most common approach and often provides the most realistic market values for residential properties. Here, the value of your property is derived from the recently achieved sale prices of at least 3 to 5 similar properties in comparable locations. Key criteria include year of construction, size, features, and condition. This method is particularly well-suited for standard properties like terraced houses or condominiums in areas with a high density of transactions. If sufficient comparable properties are lacking, the method loses accuracy. A precise knowledge of the value factors of a property is essential here.
The Cost Approach: What the Substance is Really Worth
If your inherited property is located in an area without direct comparables, the cost approach comes into play. This method determines what a new build of the same house would cost today, minus a depreciation for age and wear. It adds the land reference value (the value of the plot) and the construction costs for buildings and outdoor facilities. This method is ideal for unique, owner-occupied properties. It focuses purely on the material substance and is less influenced by short-term market fluctuations, creating a solid basis for pricing.
The Income Approach: When the Focus is on Yield
If you have inherited a rented property, the income approach is the method of choice. Here, the focus is not on the substance, but on the future expected yield. The value is derived from the annual net income (rental income minus operating costs) and the land value. The following factors are central here:
Annual Gross Rent: The achievable market rent for 12 months.
Operating Costs: Non-transferable costs for management and maintenance, often set at a flat rate of 18-25% of the rent.
Capitalisation Rate: The rate at which the net income is capitalised, depending on the type of property and risk.
Land Value: The separate value of the plot.
This method clearly shows potential investors what yield they can expect with an investment of over €250,000. It is the commercial perspective on property value.
Online Calculator vs. Expert Opinion: Why Precision Makes the Difference
Free online valuations promise a quick price estimate with just a few clicks. However, these tools only use basic data like location and year of construction and cannot capture individual features such as recent water damage or high-quality renovations. The price ranges provided can therefore vary from the actual market value by €100,000 to €200,000. Such a result is unusable for legal purposes like an inheritance settlement or for submission to the tax office. A qualified appraisal by an expert or a AI-supported analysis like at Auctoa considers over 150 data points and an on-site inspection to provide a reliable value. If you want an initial but data-based assessment, our ImmoGPT chat can offer valuable guidance without the drawbacks of general online calculators.
Conclusion: Using Data and Strategy for a Successful Sale
When selling an inherited house, setting the price is the crucial lever for your success. Do not rely on estimates that could end up costing you tens of thousands of euros. An objective, data-driven valuation protects you from asset losses, speeds up the sales process by up to 50%, and provides a solid basis for arguments with buyers and tax authorities. Use professional methods to determine the true value of your property. A well-founded pricing strategy is the best investment in your inheritance.
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Additional useful links
The Federal Statistical Office (Destatis) provides an overview of construction prices and the property price index in Germany.
The Federal Statistical Office (Destatis) includes data on house prices and land prices.
A press release from the Federal Statistical Office (Destatis) from the year 2025, likely regarding construction or property prices.
The Federal Statistical Office (Destatis) explains the methodology and revision of the House Price Index (HPI).
The Federal Ministry of Finance provides information on inheritance and gift tax.
The Federal Ministry of Finance addresses the application of regulations for the valuation of real estate within the framework of inheritance and gift tax.
The Federal Statistical Office (Destatis) contains further tables on construction prices and the property price index.
FAQ
What should I do if the tax office overvalues my inherited property?
You have the right to object and demonstrate a lower market value through a qualified expert report. The deadline for this is usually one month after receiving the tax assessment.
How quickly do I need to report the inheritance to the tax office?
You need to inform the tax office in writing no later than three months after becoming aware of the inheritance. An informal notification is sufficient at first.
What documents do I need for a professional property valuation?
Keep a current land register excerpt, the building plans (floor plans, cross-section drawings), a calculation of the living space, the energy performance certificate, and proof of any modernisations from the last 15 years ready.
Do I have to pay speculation tax when selling an inherited house?
Capital gains tax applies if less than ten years have passed between the purchase by the decedent and the sale by you. The decedent's period is credited to you. An exception applies if the house was occupied by you during the year of sale and the two preceding years.
What happens if I can't agree on a sale price with my co-heirs?
If the co-heirs cannot reach an agreement, a neutral arbitration report can help establish a binding market value for everyone. In the worst-case scenario, any member of the community of heirs can apply for a partition auction, which often results in financial losses.
Is an online review sufficient for the sale?
No. A free online evaluation only provides a rough guide and is often inaccurate. To establish a binding offer price that holds up in negotiations, a professional analysis is essential.
