Have you inherited a terraced house in Bavaria and are wondering what it's really worth? An inaccurate estimate could cost you thousands in taxes and make strategic decisions difficult. This guide shows you how an online valuation in just 4 steps provides financial clarity.
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The topic briefly and concisely
Report the inheritance to the tax office within 3 months to avoid penalty fees.
Counter a potentially 20-50% overvaluation by the tax office with a data-supported assessment.
Please observe the two-year deadline to fulfill the renovation obligations according to the Building Energy Act (GEG).
What is the true value of an inherited terraced house in Bavaria? For heirs, this question is more than just a formality; it is the decisive factor for the amount of inheritance tax and sets the course for your future—whether to sell, rent, or use it yourself. A misjudgement, often based on the tax office's standardised procedures, can lead to a tax burden that is up to 50% too high. A professional, data-driven online valuation is your first and foremost step to avoid financial disadvantages and make informed decisions. It provides you with an objective basis in the shortest time, protects against conflicts in communities of heirs, and uncovers hidden costs.
Step 1: Adhere to the 3-month deadline with the tax office
Upon becoming aware of the inheritance, a critical deadline of just three months begins, during which the inheritance must be reported to the relevant tax office. This notification is crucial to avoid default charges and to initiate the process correctly. For children of the deceased, a personal tax exemption of 400,000 euros applies. If the value of the terraced house is below this, often no inheritance tax is payable. A quick and precise online valuation is therefore essential to immediately assess your tax situation. This initial analysis forms the basis for all further strategic considerations.
Step 2: Counter an excessive tax office assessment
The tax office often determines the property value through a simplified standard procedure, without an on-site inspection. This approach ignores devaluating factors such as a backlog in modernisation or poor energy efficiency. The result is often a market value that is 20% to 50% above the actual market value, which directly increases your tax burden. However, you have the right to demonstrate a lower, more realistic value through a counter-expertise (§ 198 BewG). Such an assessment, the costs for which start at around €2,800 and are tax-deductible, is an investment that almost always pays off. Start with a quick online analysis to recognise the potential of such savings before you finalise the market value for the tax office.
Step 3: Determine the fair market value using the comparison method
For terraced houses, the comparative value method is the most accurate approach for determining value. This method does not rely on general estimates but on actual purchase prices of comparable properties recently sold in the same area. A data-driven online evaluation utilizes this approach for high accuracy. The data is sourced directly from the purchase price collections of local expert committees in Bavaria. The following factors are analysed:
Location: Comparison of land value rates from the Bavarian information system BORIS-Bayern.
Size: Analysis of living and plot area compared to properties with similar layouts.
Construction year & condition: Consideration of age and renovations that influence value.
Features: Evaluation of characteristics such as garden, garage, or cellar.
This method provides a realistic market value, serving as a solid basis for your sales or financial planning.
Step 4: Uncover hidden renovation obligations and costs
Inheriting an older property also means taking on obligations under the Building Energy Act (GEG). From the date of ownership change in the land register, you have a period of two years to carry out certain energy renovations. Failure to comply with this deadline can result in fines of up to €50,000. An early assessment helps to identify these cost factors. The most common obligations include:
Insulation of the top floor ceiling: If the attic is unheated and the ceiling does not meet the minimum insulation standard.
Replacement of old boilers: Constant temperature boilers installed before 1991 must be replaced.
Insulation of pipes: Heating and hot water pipes in unheated basement areas must be insulated.
You need to plan for these investments from the start. Our ImmoGPT chat can help you quickly clarify initial questions about these requirements.
Value Drivers and Risks: What Determines the Price of Your Terraced House in Bavaria
The final value of your inherited terraced house depends on several dynamic factors. The depreciation reduces the building's value linearly; with a typical overall useful life of 80 years, a 20-year-old house has already lost 25% of its original construction value. At the same time, new build prices increased by 3.2% in February 2025 compared to the previous year, positively impacting the real value. However, the biggest lever remains energy efficiency. Properties with poor energy ratings (E to H) suffer significant price reductions, as buyers anticipate renovation costs of up to 70,000 euros or more. A well-founded valuation of your inherited house quantifies these factors and provides you with a reliable basis for negotiation.
Conclusion: Start your journey towards a secure future with an online assessment
The online valuation for your inherited terraced house in Bavaria is more than just a formality – it's your strategic compass. It allows you to meet the 3-month deadline set by the tax office, avoid excessive tax demands, and proactively plan the two-year renovation period in accordance with the GEG. With a data-driven analysis from Auctoa, you can establish a solid decision-making foundation in just a few minutes. Take advantage of the opportunity for a fair, quick, and transparent process. This way, you turn a complex challenge into a clear opportunity.
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Additional useful links
The portal Gesetze im Internet offers the complete text of the Federal Building Code (BauGB), which governs the statutory basis for planning law in Germany.
The Bundesfinanzministerium provides comprehensive information on inheritance and gift tax, including relevant laws and allowances.
FAQ
What documents do I need for an assessment?
For an initial online assessment, usually the address, year of construction, and the residential and plot area are sufficient. For a detailed report, you will additionally need a current land register excerpt, the building plans (floor plans, sectional drawings), a building description, and, if available, the energy performance certificate.
What happens if I miss the deadline with the tax office?
If you miss the three-month reporting deadline, the tax office can impose late fees. Additionally, it may estimate the value of your property without your input, which usually results in higher taxes.
Can I avoid inheritance tax if I move in myself?
Yes, if children inherit a property occupied by the deceased and move in immediately themselves, the inheritance tax can be completely waived. However, this only applies to a living area of up to 200 square meters and under the condition that you remain living there for at least ten years.
What is the standard land value and where can I find it for Bavaria?
The standard land value is the average value for a square meter of undeveloped land in a specific location. It is determined by expert committees and is an important basis for property valuation. For Bavaria, you can view the values online on the BORIS-Bayern portal.
Is it worth getting an appraisal in the case of a community of heirs?
Yes, especially with a community of heirs, a neutral appraisal is essential. It provides an objective and indisputable basis to avoid disputes over the property's value and to ensure a fair payment to the co-heirs.
How does a backlog of modernisation affect the value?
A backlog in modernisation, particularly with heating, windows, roof, and bathroom, leads to significant devaluations. Buyers deduct the estimated renovation costs (often €50,000 and more) directly from the potential purchase price. An appraisal precisely reveals these deficiencies and their financial impact.
