Have you inherited a property and are wondering what to do next? The value of the house is the most important metric for your decisions, from inheritance tax to distribution among co-heirs. A quick and fair valuation of the property from the estate is crucial to avoid conflicts and lay the foundation for a secure future.
Chat with ImmoGPT for free now.
With access to Google, BORIS, and Deep Research.
The topic briefly and concisely
A quick and fair appraisal of an inherited property is crucial, as heirs have only three months to report the value to the tax office, and an inaccurate estimate can lead to high tax burdens and inheritance disputes.
The tax office often evaluates properties in a blanket manner and too high; a counter-expert opinion can reduce the tax burden by 20-50% and the costs for this are tax-deductible.
Digital appraisal tools like Auctoa offer a fast, data-driven alternative to costly appraisals, providing a realistic valuation within minutes to serve as a foundation for negotiations and decisions.
Inheriting a property is often linked with complex decisions. The most pressing question is: What is the property really worth? An inaccurate valuation can lead to excessive tax demands from the tax office, which can quickly amount to several thousand euros. Furthermore, an unclear valuation holds significant potential for conflict within an inheritance community. This guide shows you how to quickly and fairly evaluate a property from an estate, what methods are available, and how digital solutions like Auctoa can help you obtain a reliable, data-based foundation for your next steps in just a few minutes.
Why a quick and fair evaluation is crucial
After an inheritance event, you must report the value of the estate to the tax office within three months. The office often estimates the value on a blanket basis and without inspection, which has frequently been to the heirs' disadvantage since 2023. A realistic market value is the foundation for all subsequent decisions: sale, rental, or personal use. A professional valuation can reduce the tax burden by 20 to 50 percent. It also provides an indisputable basis to fairly compensate co-heirs and avoid expensive disputes, which in the case of a partition auction can lead to proceeds up to 30% below market value. Therefore, an accurate valuation is not only a formal requirement but also a strategic tool for securing your assets. Find out more about how to correctly assess the value of your inherited house.
Legal Assessment Procedures: An Overview
In Germany, the market value of real estate is determined according to § 194 of the Building Code (BauGB). There are three standardized methods for this, which are regulated in the Real Estate Valuation Ordinance (ImmoWertV). The choice of method depends on the type of property. Correct application is crucial to obtain a value recognized by the tax office.
The following methods are applied:
Comparable Value Method: This method is primarily used for owner-occupied single-family homes and condominiums. Purchase prices of at least 3 to 5 recently sold, similar properties in the neighborhood are drawn upon.
Income Value Method: For rented apartments or commercial properties, the income counts. Future rental income, management costs, and the property interest rate are used to calculate the value.
Cost Method: When there are no comparable properties or rental income available, this method is used. It adds the land value and building costs, minus a depreciation of up to 70% due to age.
Each method has its pitfalls and requires specific data, often only accessible to experts. Understanding these methods helps you better understand the role of an appraisal.
The tax office and its assessment methods
The tax office often determines the value of an inherited property using standardised mass procedures, without an on-site inspection. The basis is usually the standard land values and flat-rate construction costs, which ignore value-reducing factors such as a backlog of repairs or construction defects. This approach often leads to a valuation that is 15-25% above the actual market value. You have only four weeks to lodge an appeal after receiving the tax assessment notice. A qualified counter-valuation is often the only way to avert an excessive tax demand. The costs for such a valuation can be deducted as an estate liability from inheritance tax. With our inheritance tax calculator, you can get an initial estimate of your potential tax burden.
Digital assessment as a quick and data-based alternative
A full market value appraisal by an expert is precise, but also time-consuming and costly. The preparation often takes two to four weeks and costs from 2,800 euros upwards. For an initial, quick orientation or to validate the tax office notice, digital valuation tools are recommended. Modern AI-supported platforms like Auctoa analyze millions of property data daily, providing you with a realistic value estimate in under 5 minutes. This data-driven analysis takes into account over 150 value-relevant characteristics and current market developments. This gives you an objective basis to review the tax office's valuation or conduct negotiations within the community of heirs. Test our ImmoGPT for free now to immediately get an initial assessment of your property and make informed decisions.
These documents are required for an accurate assessment
Whether you engage an appraiser or use a digital tool, an accurate evaluation requires complete documentation. Good preparation can speed up the process by up to 50%. Gather all relevant documents early to establish a solid data foundation.
The following documents are essential for an evaluation:
Current land register excerpt: Provides information on ownership and encumbrances (not older than 3 months).
Location plan/cadastral map: Shows the exact position and boundaries of the property.
Building plans and floor plans: Scaled drawings of all floors are required.
Living space calculation: A detailed listing of billable areas.
Energy certificate: Mandatory since 2014, it provides information on energy efficiency.
Proof of modernisation: Invoices from the past 10-15 years document value-enhancing measures.
If rented: Tenancy agreements and a listing of the current annual net cold rent.
Complete documentation is the first step to a successful sales strategy, as our Checklist for Real Estate Sales shows.
Make optimal use of tax allowances and avoid pitfalls
The level of inheritance tax depends on the market value and your degree of kinship with the deceased. Children are entitled to an allowance of 400,000 euros per parent, while spouses have an allowance of up to 500,000 euros. Any amount above this is subject to tax rates ranging from 7% to 30%. A common misconception is that the family home used by oneself is always tax-free. The exemption for children only applies if they move in immediately and live there for at least 10 years. Renting out or selling early within this period results in retroactive taxation. A thorough understanding of the regulations is crucial to correctly indicating the market value for the tax office and avoiding costly mistakes.
immobilie-aus-nachlass-schnell-und-fair-bewerten
Valuing a property from an estate is a critical process that can decide thousands of euros in taxes and family harmony. Don’t rely on general estimates from the tax office or emotional value perceptions. A quick, objective, and data-based valuation provides you with the necessary foundation for all subsequent steps. Digital tools offer a valuable first orientation, while a certified appraisal is indispensable in legal disputes. Use the available resources to determine the true value of your inherited property and make an informed decision for your future. A fair assessment is the key to a smooth transition.
Additional useful links
Statistisches Bundesamt (Destatis) provides an overview of construction price indices and property price indices in Germany.
Statistisches Bundesamt (Destatis) contains tables on house prices and land prices in Germany.
Statistisches Bundesamt (Destatis) may discuss current data and developments in real estate prices in this press release.
Bundesfinanzministerium (BMF) informs about inheritance and gift tax in Germany.
Gesetze im Internet offers the Inheritance Tax and Gift Tax Act (ErbStG) of 1974 for download.
Bundesfinanzministerium (BMF) covers the application of regulations for valuing real estate assets in relation to inheritance and gift tax (as of 20 March 2023).
Wikipedia provides an overview of inheritance tax in Germany.
Statistisches Bundesamt (Destatis) explains the methodology and revision of the House Price Index (HPI).
FAQ
Who pays for the appraisal in a community of heirs?
The costs for an appraisal are considered estate liabilities. This means they are paid from the estate's assets before it is divided among the heirs. Therefore, all heirs share these costs jointly.
What is the difference between an online review and an expert opinion?
An online evaluation (such as by Auctoa) uses algorithms and large amounts of data to provide a quick, cost-effective market value indication. An expert's report is a detailed, legally recognised analysis including an on-site inspection, but it costs significantly more time and money.
Do I need to allow access to the property for the valuation?
For a complete market value appraisal, an interior and exterior inspection by the expert is essential. In the case of purely online evaluations, this is not necessary, as they are based on the data you provide and market data.
How do debts affect the value of the inherited property?
Debts registered in the land register (e.g., a mortgage) are deducted from the market value of the property when determining the taxable estate. This reduces the value of the estate and consequently the potential inheritance tax.
What happens if the heirs' community cannot agree on a value?
If no agreement is reached, any co-heir can apply for a partition auction at the district court. This is a public forced auction that often results in proceeds 10-30% below the open market value and should therefore be avoided.
Can I sell a property below the determined value?
Yes, you can sell the property at any price. However, for inheritance tax, the important value is the market value at the time of the deceased's death, as determined by the tax office or verified through an appraisal, not the later sale price.
