Property Valuation
Basic Report
Conduct a property valuation for inheritance without an estate agent
Are you facing the task of valuing an inherited property and fearing high costs or an inaccurate assessment by the tax office? An accurate property valuation in the case of inheritance without an estate agent is not only possible but also secures you financial advantages. This guide shows you in 5 steps how to determine the market value based on data and avoid common mistakes.
With access to Google, BORIS, and Deep Research.
An appraisal of property in the event of inheritance is legally required for the assessment of inheritance tax and must be reported to the tax office within three months.
The valuation without a realtor can be carried out independently using standardised methods (comparative value, intrinsic value, income value) to save costs.
A lower, but realistic, market value can directly reduce the tax burden; tax allowances range between €20,000 and €500,000 depending on the degree of kinship.
Appraising an inherited property is an emotional and financial challenge for most heirs. Within just three months after the inheritance event, the tax office requires a valuation to set the inheritance tax. An inaccurate estimate can cost you thousands of euros, whether through an overly high tax burden or conflicts within the community of heirs. However, hiring an expensive estate agent or appraiser is not always the first necessary step. With the right methodology and suitable tools, you can carry out a well-founded property appraisal for inheritance without an estate agent, optimize your tax burden, and establish a fair basis for all further decisions. This article guides you through the entire process.
Immediately after an inheritance, a period of three months begins in which you must report the acquisition to the relevant tax office. The basis for calculating inheritance tax is the market value of the property, also known as the fair value, as defined in the Valuation Act (BewG). The tax office often uses standardised methods for estimates that frequently do not take individual, value-reducing factors into account, such as a 25% backlog of renovations. An overestimated value directly leads to a higher tax demand. An independent, well-founded valuation for the tax office protects your assets. This is the basis for all further steps.
The German Valuation Act (BewG) prescribes three standardized methods to determine the market value of a property. Their applicability depends on the type of inherited property. Understanding these methods is crucial to comprehend the tax office's assessment or to create your own solid evaluation. Choosing the wrong method can lead to deviations of over 20%. Here is an overview of the three methods:
Comparison method: This is the most common method for owner-occupied single and two-family houses as well as condominiums. It compares the inherited property to recently sold, similar properties in the neighbourhood. Ideally, at least 10 comparable properties are needed for high accuracy.
Cost method: This method is used for owner-occupied properties that have few comparable properties. It determines the hypothetical cost of new construction, from which an age-related depreciation of, for example, 1.5% per year is deducted. The land value is added separately.
Income method: For rental residential or commercial properties, this method is crucial. It is based on the expected future rental income, from which management costs of 18-25% are deducted.
Understanding these methods helps you grasp the true value of your property, as we will see in the next section. Learn more about what your inherited house is worth.
A solid valuation without external experts requires a systematic approach. With this 5-step guide, you can determine a realistic market value that can withstand an initial review by the tax office. This process reduces the risk of misestimation by up to 30%. Here's how you proceed:
Gather documents: Obtain all relevant documents. This includes the land register extract (not older than 3 months), building plans, the energy performance certificate, and a current calculation of living space.
Determine the standard land value: Research the official standard land value for your property. This is available for free through the nationwide BORIS portals of the federal states. The standard land value is a central factor in any valuation process.
Analyse market data: Investigate current sale prices of similar properties in your region on real estate portals. Pay attention to comparable location, size, and year of construction. Document at least 5 to 10 comparable offers.
Objectively assess condition: Identify all devaluation defects such as leaky windows, an outdated heating system (older than 15 years), or dampness in the basement. Each defect should be quantified with estimated repair costs.
Use digital valuation tools: Use AI-powered tools for an initial data-driven assessment. The Auctoa Inheritance Manager or our ImmoGPT chat help you consolidate the collected data into a valid estimate.
With these steps, you have created a solid foundation. However, even with careful work, pitfalls that can distort the result may lurk.
Conducting an independent assessment involves several pitfalls that can lead to an inaccurate and often overestimated valuation. Emotional attachment to the family home can skew the estimated value by up to 15%. Another common mistake is overlooking hidden defects. Costs for energy-efficient refurbishment can quickly account for 20% of the property's value. A detailed checklist for selling property helps to ensure nothing is forgotten. Within an inheritance community, differing perceptions of value often lead to conflicts. An objective, data-driven valuation is key to reaching an agreement and avoids prolonged disputes, which can diminish the inheritance value by more than 10%. Careful documentation of all factors that reduce value is therefore essential to ensure a realistic appraisal and avoid costly mistakes.
Although a valuation without an agent is sufficient in many cases, there are situations where an official market value appraisal is indispensable. This is particularly the case if the tax office doubts your submitted valuation or if there is a legal dispute within the community of heirs. An appraisal prepared by a publicly appointed and sworn expert is legally binding. The costs for such a comprehensive appraisal start at around €2,500 and can amount to up to 1.5% of the property's value. This investment is often necessary to counteract a 20-30% overestimate by the tax office. Such an appraisal provides an unassailable basis and ensures legal certainty. Find out about the role of appraisals in inheritance cases to make the right decision. Therefore, carefully weigh up when the costs for an expert outweigh the potential benefits.
Conducting a property valuation for inheritance without an estate agent is an effective strategy to reduce costs and maintain control over your inheritance. A thorough analysis based on the three standard methods, combined with digital tools, provides a solid foundation for negotiations with the tax office and co-heirs. Not only do you save estate agent fees of up to 3%, but you also avoid inflated inheritance taxes. Act proactively to realistically determine the value of your property. A well-founded valuation is the first step towards a wise financial decision.
The Federal Ministry of Finance offers comprehensive information on inheritance and gift taxes.
An article on the uniform application of regulations for the valuation of real estate within the framework of inheritance and gift taxes can also be found at the Federal Ministry of Finance.
The Mecklenburg-Vorpommern Tax Portal provides a detailed guide to the inheritance tax return as a PDF document.
The Federal Statistical Office (Destatis) provides information on construction prices and the property price index.
Current tables on house and land prices are also available from the Federal Statistical Office (Destatis).
Wikipedia offers a comprehensive overview of inheritance tax in Germany.
Wikipedia provides a detailed explanation of the inheritance tax and gift tax law.
Wikipedia defines and explains the market value of real estate.
Do I need to hire an expert for property valuation in the event of inheritance?
No, not necessarily. For reporting to the tax office, you can initially determine the value yourself. A certified appraiser is only required if the tax office does not accept your valuation or if there are legal disputes with co-heirs.
Which documents are mandatory for property valuation in the event of inheritance?
The most important documents are a current land register extract, the energy certificate, construction plans (floor plans, sectional drawings), the calculation of living area, and if possible, evidence of modernisations in the last 15 years.
How does a usufruct right affect the value of the property in the event of inheritance?
A usufruct or right of residence registered in the land register significantly reduces the market value of the property, as it restricts the new owner's use. The reduction in value is capitalised and deducted from the market value, potentially significantly lowering the inheritance tax.
What happens if the community of heirs cannot agree on a value?
If co-heirs cannot agree, hiring a neutral, certified property appraiser is the best approach. Their expert report determines an objective market value serving as a fair basis for compensating co-heirs or a joint sale, avoiding disputes.
Can I deduct the costs of a valuation from my taxes?
Yes, the costs for a market value appraisal necessary for determining the inheritance tax can be claimed as liabilities in the inheritance tax return. This reduces the tax base.
Which reference date does the tax office use for the valuation?
For determining the market value and thereby the assessment of inheritance tax, the date of the deceased's passing is always the decisive reference date. Changes in the property's value after this date are irrelevant for tax calculations.
