Accurately calculate the real estate value for the compulsory portion: How to secure your claim in 2025
Were you denied a property in the event of inheritance? An incorrect valuation can quickly cost you 10% to 20% of your entitled compulsory portion. This article shows you how to accurately determine the property value after an inheritance for the calculation of the compulsory portion and fully secure your financial claims.
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The topic briefly and concisely
The property value for the compulsory portion is always determined on the date of death of the testator (reference date). Subsequent changes in value are irrelevant.
Beneficiaries entitled to a compulsory portion have a legal right to a neutral expert report, the cost of which is covered by the estate.
The compulsory portion is a purely monetary claim, not a claim to the property itself. The heirs are required to pay the amount, which often necessitates a sale.
When close relatives are disinherited, a claim to the compulsory portion often arises—a pure financial claim based on the value of the estate. If a property is part of the estate, its valuation becomes the crucial factor. An inaccurate or biased estimate by the heirs can reduce your claim by tens of thousands of euros. For you, as a person entitled to a compulsory portion, it is therefore essential to understand the mechanisms of valuation. This guide provides you with a clear, regulation-based instruction to determine the correct real estate value and prevent financial losses.
The legal and financial basis of the compulsory portion claim
Disinherited close relatives such as children or spouses have a legal right to the compulsory portion, which amounts to half of the statutory share of the inheritance. This claim does not constitute a right to co-ownership of the property, but is purely a monetary claim against the heirs. Therefore, the correct valuation of the property is the most important basis for determining the exact amount of this monetary claim. Even a deviation of just 5% in the valuation report can make a difference of 20,000 euros on a property valued at 400,000 euros. Therefore, the value of the property must be determined objectively and transparently to establish the basis for the compulsory portion. This lays the foundation for all further steps.
The Cut-off Date: Why the Date of Death Permanently Establishes the Value
For calculating the compulsory portion, only the value of the property on the deceased’s date of death is relevant. This regulation from § 2311 BGB provides a clear and unequivocal basis for calculation. Increases or decreases in value occurring after the inheritance event – for example, due to market fluctuations or renovations by the heirs – have no impact on the amount of your entitlement. So, if a property was worth 500,000 euros on the date of death and is sold six months later for 550,000 euros, your compulsory share is still based on the value of 500,000 euros. This fixed date regulation protects you from depreciation but also prevents you from benefiting from later increases in value. Accurately determining this historical value is therefore the next logical step.
The 3 recognized methods for accurate value determination
To objectively determine the market value of a property, the real estate valuation ordinance (ImmoWertV) prescribes three standardized methods. The choice of method depends on the type and use of the property to ensure a market-oriented valuation. An expert will usually apply one of the following three methods:
Comparative value method: This method is primarily used for owner-occupied apartments and single-family houses in areas with a sufficient number of comparable sales. Here, the purchase prices of at least 3-5 similar, recently sold properties are used as a basis.
Income value method: For rented properties such as multi-family houses or commercial properties, the potential income is the focus. The value is derived from the sustainably achievable rental income, minus management costs and taking into account the property yield rate.
Asset value method: This method is applied to properties for which there are hardly any comparable objects (e.g. architect-designed houses, villas). It calculates the costs for a theoretical new construction (construction costs) and adds the land value, with an age-related depreciation of up to 70% deducted.
The correct application of these methods by an expert is crucial, which directly leads to the question of the appraisal.
The Expert Opinion: Your Right to an Objective Assessment
As a compulsory heir, you don't have to rely on the heirs' valuation. According to § 2314 of the German Civil Code (BGB), you have the right to request the heir to commission a valuation report from an impartial expert. The costs for this report, which often range between €2,500 and €5,000, are paid directly from the estate. Thus, they reduce the total value of the inheritance and consequently also decrease your compulsory portion by the corresponding amount. The heir is obligated to commission the report, and also selects the expert. If there are doubts about the neutrality, for instance, if a broker for the heirs provides a valuation that is too low, you can contest this. A neutral report is the best safeguard against disputes over the value.
Conflict Resolution and Dispute: What to Do in Case of Valuation Disputes
What happens if you consider the appraisal presented by the heir to be flawed? You have the right to contest the appraisal. As a first step, you can commission a counter-appraisal at your own expense to obtain a well-founded second opinion. If this significantly deviates from the first appraisal (e.g., by more than 10%), it considerably strengthens your negotiating position. If this does not lead to an agreement with the heirs, legal action is often the only recourse. In this case, the court will usually appoint its own independent appraiser, whose evaluation is then binding for both parties. Note the three-year limitation period for asserting your statutory share claim, which starts from the knowledge of the inheritance and disinheritance.
Tax Allowances: This is how much of your compulsory portion remains
The compulsory portion is also subject to inheritance tax, as it is considered an “acquisition due to death”. However, you are entitled to the same personal allowances as a regular heir. For spouses, this allowance is 500,000 euros, for children 400,000 euros per parent. Grandchildren can use an allowance of 200,000 euros. Only the amount remaining after the allowance has been deducted needs to be taxed. A child receiving a compulsory portion valued at 450,000 euros only needs to pay tax on 50,000 euros. Knowing these allowances is crucial for the net calculation of your entitlement. With the Auctoa inheritance tax calculator, you can precisely calculate your expected tax burden.
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The accurate calculation of real estate value is the key to assert your rightful inheritance claim fairly and completely. Do not rely on estimates, but insist on an objective valuation according to legal requirements. The decisive value is the market value as of the date of death, determined by recognized methods. An independent appraisal, the cost of which is covered by the estate, is your right and protects you from financial disadvantages. If you are unsure whether the provided valuation is correct, an AI-supported second opinion like the Auctoa Inheritance Manager or a conversation with our ImmoGPT can quickly provide clarity. Act informed and secure the value that is rightfully yours.
Additional useful links
Bundesfinanzministerium offers comprehensive information on inheritance and gift tax.
The ifo Institute provides a thematic page with analyses and data on the real estate market.
FAQ
What happens if the heirs sell the property below its value?
A sale below value after inheritance does not affect your entitlement to a compulsory portion. The calculation is based on the market value at the date of death. If the sale price is used as an indication of value, you can prove the higher, correct value with an expert opinion.
How quickly must the compulsory portion be paid out?
The compulsory portion claim becomes due immediately upon the death of the testator and can be asserted as soon as the beneficiary is aware of the inheritance event. In practice, heirs are given a period of several weeks to make the payment after the claim has been quantified.
What if there are still debts on the property?
Debts secured on the property (e.g. a mortgage) are deducted from the market value of the property. The compulsory share is calculated from the net estate, which is the total value of all assets minus all liabilities.
Do I have to pay taxes as a compulsory heir?
Yes, the compulsory portion is subject to inheritance tax. However, you are entitled to substantial personal allowances (e.g., €500,000 for spouses, €400,000 for children). Only the amount that exceeds this allowance will be taxed.
Can I request a share of the property instead of money?
No, the entitlement to a compulsory portion is purely a monetary claim. You will not become a co-owner of the property. An exception would only be possible if you voluntarily agree with the heirs on a transfer of property ownership instead of a cash payment.
What is the principle of lower value for gifts?
The principle of the lowest value applies to claims for compulsory portion supplements for gifted properties. Here, the value of the property at the time of the gift is compared with its value at the time of the inheritance event. The lower of the two values is used for the calculation.
