Have you inherited a property and the bank is asking for proof of value? A simple online estimate is often not enough. This guide shows you how to determine a bank-compliant value and avoid costly mistakes when valuing your inherited house.
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The topic briefly and concisely
Banks use the mortgage lending value, which is often 10-20% below the market value to minimise risk.
An independent valuation report can correct an overvaluation by the tax office and thus significantly reduce inheritance tax.
A quick online valuation provides a solid data foundation for strategic decisions and negotiations with banks and co-heirs.
Valuing an inherited house for the bank is a crucial step that determines the financing conditions and your strategic options. Banks do not accept purely speculative values from online portals; they demand a robust, credible valuation. Incorrect assumptions can lead to a loan value that is 10-20% lower, significantly restricting your financial flexibility. In this article, you will learn how to correctly estimate the value for the bank online, what documents you need, and how a precise analysis can not only convince the bank but also optimise your tax burden.
Key Points: 4 Facts about Property Valuation for the Bank
A quick overview of the key points for heirs.
Loan value is crucial: Banks do not use the market value for financing, but rather the loan value, which is often 10-20% lower and factors in long-term risks.
Online tools as a starting point: An initial online evaluation provides an important indication for your strategic planning within minutes, but it does not replace a formal appraisal.
Complete documents are invaluable: Having all documents, from the land register extract to the energy certificate, accelerates the official valuation process by several weeks.
Appraisal reduces tax burden: A value often set too high by the tax office can be corrected by a counter-appraisal, potentially saving thousands of euros in inheritance tax.
These four pillars form the basis for successful negotiations with the bank and the tax office.
Why the bank speaks a different language: Market value vs. lending value
If you try to estimate the value of your inherited house for the bank online, you will encounter two key terms: market value and mortgage lending value. The market value (or market price) is the price that could currently be achieved on the market. Many online calculators provide an estimate of this market value in just 5 minutes. However, for granting loans, banks require a more conservative figure: the mortgage lending value. This is legally defined in the German Pfandbrief Act (§ 16 PfandBG) and takes into account the future saleability after deducting all speculative elements. This means the bank applies a safety discount of 10% to 20% to the market value to protect against fluctuations in value. A house with a market value of €500,000 may only receive a mortgage lending value of €400,000 from the bank. This difference is crucial for the potential loan amount. Therefore, a bank-compliant appraisal commissioned by the bank is essential. Knowing both values is the first step towards a sound financial strategy.
The 3 recognized methods of property valuation
To determine the market value, from which the lending value is derived, three methods are permitted in Germany according to the Immobilienwertermittlungsverordnung (ImmoWertV). The choice of method strongly depends on the type of inherited property.
Comparative Value Method: This method is ideal for standard properties such as condominiums or terraced houses in areas with many similar sales. The value is directly derived from the purchase prices of at least 10-15 comparable properties.
Cost Approach Method: This method is used for unique or owner-occupied properties without direct comparable objects. It adds the land value and the building's construction costs, minus any depreciation for age. For example, the costs of a 20-year-old roof are assessed differently than those for a new one.
Income Approach Method: This method is the standard for rented properties. The value is derived from the projected future net rental income. A property generating €40,000 in annual net cold rent can have an income value of €1,000,000 with a capitalisation factor of 25 (equivalent to a 4% yield).
Having a clear understanding of these methods will help you comprehend your bank's valuation. Find out how to calculate the value here. Next, you need to gather the necessary documents for these methods.
Checklist: The bank needs these 7 documents for the assessment
A swift and smooth assessment largely depends on the completeness of your documents. Compiling these documents can speed up the process by up to 40%. The following documents are essential for valuation in the event of inheritance:
Current land register extract: No older than 3 months, it proves ownership and any encumbrances.
Cadastral map/site plan: Shows the exact position and boundaries of the property.
Construction plans and floor plans: Including all sections and elevations at a scale of 1:100.
Residential and usable area calculation: A detailed breakdown of all areas according to DIN 277 or the Residential Area Ordinance.
Energy performance certificate: Mandatory since 2014, it provides information on the building’s energy efficiency.
Proof of modernizations: Invoices and receipts for refurbishments in the last 15 years (e.g., heating, windows, roof).
Certificate of inheritance or will: Serves as proof of your legitimacy as an heir.
With this comprehensive sales checklist, you are well prepared. However, before you submit everything, you should obtain your own, well-founded value indication.
The first step: Estimate the value of the inherited house online
Before you start the official and often prolonged process with the bank, you should conduct a well-informed initial assessment. When you estimate the value of an inherited house for the bank online, you gain a data-driven foundation for your strategic decisions. Modern AI-based tools like the Auctoa Online Value Analysis analyse thousands of comparable properties and market data in real-time. This way, you receive a preliminary but already very accurate market value indication in less than 5 minutes. This value serves as a crucial anchor point for discussions with co-heirs, the tax office, and the bank. Instead of waiting weeks for an initial appraisal, you can act immediately. Use interactive tools like the ImmoGPT chat to resolve specific questions about your property and quickly clear up uncertainties. This digital groundwork gives you a knowledge advantage and prepares you optimally for the next hurdle: the tax office.
Double Relevance: Why the Evaluation Also Concerns the Tax Office
The determined value of your inherited property is of central importance not only for the bank but also for the tax office. The authority uses the market value (referred to here as the 'common value') as a basis for calculating inheritance tax. The tax office often conducts its own general assessment, which frequently ignores depreciating factors such as a backlog of renovations, and thus often results in a value that is 10-15% too high. Assuming a value of €600,000 and a tax-free allowance of €400,000 for children, €200,000 would need to be taxed, which could lead to a tax burden of €22,000 (tax rate 11%). An independent appraisal demonstrating a more realistic value of, for example, €520,000, can reduce the tax burden by over 40% to €13,200. It is your right to prove a lower value through a qualified appraisal. Use an inheritance tax calculator to make an initial estimate. A precise online appraisal provides the perfect foundation for this.
geerbtes-haus-wert-fur-bank-online-schaetzen
Estimating the value of an inherited house for the bank requires more than just a quick click. It is a strategic process that demands accuracy and an understanding of the differing requirements of banks and tax authorities. While the bank sets a conservative loan value, which can be 10-20% below market value, the tax authority tends to offer a generalized and often overly high valuation. The key to success lies in a hybrid approach: use a quick, AI-supported online analysis for an initial, informed orientation and substantiate this, if necessary, with a detailed expert report. This creates a solid basis for negotiation, secures optimal financing terms, and avoids an unnecessarily high tax burden of several thousand euros. Act proactively, data-driven, and secure the maximum from your inheritance.
Additional useful links
Statistisches Bundesamt offers tables on house prices and land prices in Germany.
Deutsche Bundesbank presents its indicator system for the residential property market.
Bundesministerium der Finanzen provides information on inheritance and gift tax.
BORIS-D is the joint portal of the committees of valuers for land values in Germany to determine standard land values.
KfW offers funding programmes for existing properties.
Bankenverband provides information on real estate financing during separation.
Verbraucherzentrale Bayern informs in a press release about refurbishment obligations for heirs of old houses.
FAQ
How quickly can I get an initial valuation for my inherited house with Auctoa?
With Auctoa's online value analysis, you receive a data-driven and market-appropriate assessment of the market value in less than 5 minutes. This serves as an ideal basis for further steps.
Does an Auctoa appraisal also help with estate settlement with co-heirs?
Yes, absolutely. An objective, data-based assessment of Auctoa provides a transparent and neutral basis that helps to avoid conflicts within the community of heirs and to reach a fair settlement.
Can I appeal against the tax office's decision with an Auctoa report?
Yes. If the value set by the tax office seems too high, you can submit a qualified appraisal prepared by us as evidence of a lower fair market value and potentially reduce your inheritance tax burden.
What is the cost of a bank-compliant valuation report at Auctoa?
The cost of a valuation report depends on the size and complexity of the property. An initial online valuation is free of charge with us. For a detailed quote for a full valuation report, please contact us without obligation.
Does Auctoa support all types of inherited real estate?
Yes, our evaluation models and experts analyse all common types of real estate, from condominiums and single-family homes to multi-family homes and specialised properties.
What should I do if important documents for the assessment are missing?
Our expert team and the digital assistant ImmoGPT can help you identify and request the necessary documents from the relevant authorities (e.g., building authority, land registry office).
