Property Valuation
Online Value Analysis
estimate inherited house value for bank online
Have you inherited a property and the bank is asking for proof of value? A simple online estimate is often not sufficient. This guide shows you how to determine a bank-compliant value and avoid costly mistakes when valuing your inherited house.
With access to Google, BORIS, and Deep Research.
Banks use the lending value, which is often 10-20% below the market value to minimise risk.
An independent appraisal can correct an overvaluation by the tax office and significantly reduce inheritance tax.
A quick online valuation provides a solid data foundation for strategic decisions and negotiations with banks and co-heirs.
The valuation of an inherited house for the bank is a critical step that determines the financing conditions and your strategic options. Banks do not accept purely speculative values from online portals; they require a reliable, comprehensible valuation. Incorrect assumptions can lead to a 10-20% lower loan-to-value ratio, 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 to not only convince the bank through precise analysis but also optimize your tax burden.
A quick overview of the key points for heirs.
Valuation is crucial: Banks do not use the market value for financing, but rather the mortgage lending value, which is often 10-20% lower as it factors in long-term risks.
Online tools as a starting point: An initial online valuation provides an important indication for your strategic planning within minutes, but it does not replace a formal appraisal.
Complete documentation is invaluable: Having all documents, from the land register extract to the energy certificate, speeds up the official valuation process by several weeks.
Appraisals reduce tax burden: A value often set too high by the tax office can be corrected with 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.
If you try to estimate the value of your inherited house for the bank online, you will encounter two key terms: market value and lending value. The market value is the price that could currently be achieved in the market. Many online calculators provide an estimate of this market value in just 5 minutes. However, for lending purposes, banks require a more conservative figure: the lending value. This is legally defined in the Mortgage Bond Act (§ 16 PfandBG) and considers future saleability while deducting all speculative elements. This means the bank includes a safety deduction of 10% to 20% from the market value to protect against value fluctuations. A house with a market value of €500,000 may only receive a 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 indispensable. Knowing both values is the first step towards a sound financial strategy.
To determine the market value, from which the mortgage lending value is derived, three methods are permissible in Germany according to the Real Estate Valuation Ordinance (ImmoWertV). The choice of method heavily depends on the type of inherited property.
Comparable Value Method: This method is ideal for standard properties like flats 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: This method is used for unique or owner-occupied properties without direct comparable objects. It adds the land value and the construction costs of the building, minus depreciation for age. For example, the costs for a 20-year-old roof are assessed differently than those for a new one.
Income Approach: This method is the standard for rented properties. The value is derived from the net rental income expected in the future. A property that generates €40,000 annual net cold rent can have an income value of €1,000,000 with a capitalisation rate of 25 (equivalent to a 4% yield).
A clear understanding of these methods helps you comprehend your bank's valuation. Learn here how to calculate the value. Next, you need to compile the necessary documents for these methods.
A quick 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 registry extract: No older than 3 months, proving ownership and any encumbrances.
Cadastral map/site plan: Shows the exact location and boundaries of the property.
Building plans and floor plans: Including all sections and views at a scale of 1:100.
Calculation of living and usable areas: A detailed breakdown of all areas according to DIN 277 or the Living Space Ordinance.
Energy certificate: Mandatory since 2014, it provides information on the building's energy efficiency.
Proof of modernisation: Invoices and receipts for renovations over 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 complete checklist for sale, you are well prepared. However, before you submit everything, you should obtain your own, well-founded value indication.
Before you start the official and often lengthy process with the bank, you should conduct a well-informed initial assessment. By estimating the inherited house value for the bank online, you obtain a data-driven basis for your strategic decisions. Modern AI-supported tools like Auctoa's online value analysis analyse thousands of comparable properties and market data in real time. This way, you receive an initial, yet 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 clarify specific questions about your property and quickly resolve uncertainties. This digital groundwork gives you a knowledge advantage and prepares you optimally for the next hurdle: the tax office.
The determined value of your inherited property is central not only to the bank but also to the tax office. The authority uses the market value (here referred to as "common value") as the basis for calculating inheritance tax. The tax office often conducts its own general assessment, frequently ignoring depreciating factors such as a backlog of renovations, which often results in values being 10-15% too high. With an assumed value of €600,000 and a tax-free allowance of €400,000 for children, €200,000 would need to be taxed, potentially leading to a tax liability of €22,000 (tax rate 11%). An independent appraisal proving a more realistic value of, for instance, €520,000 can reduce the tax burden by over 40% to €13,200. It is your right to demonstrate a lower value through a qualified appraisal. Use an inheritance tax calculator to make an initial estimate. A precise online appraisal provides the perfect basis for this.
Estimating the value of an inherited house for the bank requires more than 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 opts for a conservative lending value, which can be 10-20% below the market value, the tax office tends to favour a standardised and often excessively high evaluation. The key to success lies in a hybrid approach: use a quick, AI-supported online analysis for an initial, informed guide and, if necessary, back it up with a detailed report. This way, you create a solid negotiation basis, secure optimal financing conditions, and avoid an unnecessarily high tax burden of several thousand euros. Act proactively, data-driven, and secure the maximum from your inheritance.
Statistisches Bundesamt offers tables on house prices and land prices in Germany.
Deutsche Bundesbank presents its indicator system for the residential real estate market.
Bundesministerium der Finanzen provides information on inheritance and gift tax.
BORIS-D is the joint portal of the expert committees for property values in Germany for determining standard land values.
KfW offers funding programmes for existing properties.
Bankenverband provides information on the topic of real estate financing during separation.
Verbraucherzentrale Bayern informs in a press release about renovation obligations for heirs of old houses.
How quickly can I receive an initial valuation for my inherited house with Auctoa?
With Auctoa's online market analysis, you receive a data-driven and market-based valuation of your property's value in less than 5 minutes, providing an ideal basis for further steps.
Does an Auctoa valuation assist in estate settlement negotiations with co-heirs?
Yes, absolutely. An objective, data-based valuation from Auctoa provides a transparent and neutral foundation that helps avoid conflicts within the group of heirs and achieve a fair agreement.
Can I use an Auctoa report to appeal against the tax office's decision?
Yes. If the value set by the tax office seems too high, you can submit a qualified report produced by us as evidence for a lower market value, potentially reducing your inheritance tax burden.
What does a bank-compliant valuation report cost at Auctoa?
The cost of a report depends on the scope and complexity of the property. An initial online valuation is free of charge. For a detailed quote for a full report, please contact us without obligation.
Does Auctoa support all types of inherited properties?
Yes, our valuation models and experts analyze all common types of properties, from condominiums to single-family homes, to multi-family houses and special properties.
What should I do if I am missing important documents for the valuation?
Our expert team and the digital assistant ImmoGPT can assist you in identifying and requesting the necessary documents from the relevant authorities (e.g., building authority, land registry).
