Property Valuation
Live assessment via video
Quickly and fairly evaluate property from an estate
Have you inherited a property and are wondering what to do next? The value of the house is the most important figure for your decisions, from inheritance tax to distribution among co-heirs. A quick and fair valuation of the estate property is essential to avoid conflicts and lay the foundation for a secure future.
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A quick and fair assessment of an inherited property is crucial, as heirs have only three months to report the value to the tax office. An inaccurate estimate can lead to a high tax burden and inheritance disputes.
The tax office often evaluates properties as a flat rate and too high; a counter-expert report can reduce the tax burden by 20-50% and the costs for it are tax-deductible.
Digital valuation tools like Auctoa offer a fast, data-driven alternative to costly appraisals and provide a realistic value assessment within minutes as a basis for negotiations and decisions.
Inheriting a property often involves complex decisions. The most pressing question is: What is the property really worth? An inaccurate estimate can lead to excessive tax claims from the tax office, which can quickly amount to several thousand euros. Additionally, an unclear valuation presents significant potential for conflict within a community of heirs. This guide shows you how to quickly and fairly value a property from an estate, what methods are available, and how digital solutions like Auctoa can help you obtain a reliable, data-driven basis for your next steps in just a few minutes.
After an inheritance event, you must report the value of the estate to the tax office within three months. The office often sets this value arbitrarily and without inspection, which has frequently been to the detriment of heirs since 2023. A realistic market value is the basis for all further 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 for paying out co-heirs fairly and avoiding costly disputes, which in a forced auction can lead to proceeds up to 30% below market value. A precise valuation is therefore not just a formal necessity but a strategic tool for securing your assets. Learn more about how to correctly assess the value of your inherited house.
In Germany, the market value of real estate is determined according to § 194 of the Building Code (BauGB). There are three standardised methods regulated in the Property Valuation Ordinance (ImmoWertV). The choice of method depends on the type of property. Correct application is crucial to obtain a value recognised by the tax office.
These methods are applied:
Comparison Method: This method is primarily used for owner-occupied single-family homes and condominiums. The purchase prices of at least 3 to 5 recently sold, similar properties in the neighbourhood are considered.
Income Method: For rented apartments or commercial properties, the income is the key factor. 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 the building's construction costs, minus age depreciation of up to 70%.
Each method has its challenges and requires specific data, often only accessible to experts. Understanding these methods helps you to better comprehend the role of an appraisal in this context.
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 depreciating factors such as a backlog of renovations or construction defects. This approach often leads to a valuation that is 15-25% above the actual market value. You have only four weeks after receiving the tax assessment to file an objection. A qualified counter-expertise is often the only way to avert an excessive tax demand. The costs for such a report can be deducted from the inheritance tax as a liability of the estate. With our inheritance tax calculator, you can get a first estimate of your potential tax burden.
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's assessment, digital valuation tools are a good option. Modern AI-supported platforms like Auctoa analyze millions of real estate data daily and provide you with a realistic value assessment in under 5 minutes. This data-driven analysis considers over 150 value-relevant features and current market developments. This provides you with an objective basis to review the tax office's valuation or conduct negotiations within the community of heirs. Try our ImmoGPT now for free to get an initial assessment of your property immediately and make informed decisions.
Whether you hire an appraiser or use a digital tool, an accurate assessment requires complete documentation. Good preparation accelerates the process by up to 50%. Gather all relevant documents early to establish a solid data foundation.
The following documents are essential for an assessment:
Current land register extract: Provides information on ownership and encumbrances (no older than 3 months).
Site plan/cadastral map: Shows the exact position and boundaries of the property.
Building plans and floor plans: To-scale drawings of all floors are required.
Living space calculation: A detailed account of chargeable areas.
Energy performance certificate: Mandatory since 2014, it provides information on energy efficiency.
Proof of modernisations: Invoices from the last 10-15 years document value-enhancing measures.
If rented: Rental contracts and a breakdown of the current annual net cold rent.
Complete documentation is the first step towards a successful sales strategy, as our property sales checklist shows.
The amount of inheritance tax depends on the market value and your degree of kinship to the deceased. Children are entitled to a tax-free allowance of 400,000 euros per parent, and spouses even 500,000 euros. For anything exceeding these amounts, tax rates between 7% and 30% apply. A common mistake is assuming that the owner-occupied family home is always tax-free. The tax exemption for children only applies if they move in immediately and live there for at least 10 years. Renting out the property or selling it prematurely within this period leads to subsequent taxation. Having a precise understanding of the regulations is crucial to correctly indicating the market value for the tax office and avoiding costly mistakes.
The valuation of a property from an estate is a critical process that can determine thousands of euros in taxes and family peace. Do not rely on flat estimates from the tax office or emotional valuations. A quick, objective, and data-driven valuation provides you with the necessary foundation for all further steps. Digital tools offer a valuable initial orientation, while a certified appraisal is indispensable in legal disputes. Use the available tools to determine the true value of your inheritance property and make an informed decision for your future. A fair valuation is the key to a smooth transition.
Statistisches Bundesamt (Destatis) offers an overview of construction price indices and real estate price indices in Germany.
Statistisches Bundesamt (Destatis) includes tables on house prices and land purchase prices in Germany.
Statistisches Bundesamt (Destatis) may address current data and developments in the area of real estate prices in this press release.
Bundesfinanzministerium (BMF) provides information about inheritance and gift tax in Germany.
Gesetze im Internet offers access to the 1974 Inheritance and Gift Tax Act (ErbStG).
Bundesfinanzministerium (BMF) discusses the application of regulations for the valuation of real estate in the context of 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).
Who pays for the valuation report in an inheritance community?
The costs for a valuation report are considered estate liabilities. Therefore, they are paid from the estate assets before these are distributed among the heirs. Consequently, all heirs share the costs equally.
What is the difference between an online valuation and an appraisal?
An online valuation (such as provided by Auctoa) uses algorithms and large data sets for a quick, cost-effective market value indication. An appraisal by an expert is a detailed, legally recognised analysis including an on-site inspection, but it takes significantly more time and money.
Do I need to allow access to the property for the valuation?
For a full market value appraisal, an interior and exterior inspection by the expert is essential. For online valuations, this is not necessary, as these are carried out 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 property's market value when determining the taxable inheritance. Thus, they reduce the value of the estate and the potential inheritance tax.
What happens if the heirs cannot agree on a value?
If no agreement is reached, any co-heir may apply for a partition auction at the district court. This is a public forced sale that often results in proceeds that are 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 market value determined by the tax office or proven through an appraisal at the date of the deceased's death is decisive, not the later sale price.
