Property Valuation
Renovation Potential Report
Check the renovation needs of an inherited property online
You have inherited a property – a blessing or a financial trap? The uncertainty about the condition and potential renovation costs can burden any inheritance. This guide shows you how to check the renovation needs of your inherited property online and avoid costly mistakes.
With access to Google, BORIS, and Deep Research.
According to the Building Energy Act (GEG), heirs often have to carry out energy renovations within two years, such as replacing old heating systems.
The costs for a complete renovation of an old building can be up to 1,200 euros per square meter, which is why an accurate calculation is crucial.
Government subsidies from BAFA and KfW can cover up to 40% of the renovation costs, but they must be applied for before the start of the measures.
An inherited property often presents owners with significant challenges. Particularly, the backlog of renovations is an unknown factor that can significantly reduce the value. According to the German Institute for Retirement Provision, properties worth around 1,293 billion euros were inherited between 2015 and 2024, many of which require modernisation. A quick and data-driven analysis is therefore not a luxury but a necessity. With the right digital tools, you can assess the condition, estimate costs, and comply with legal deadlines. This is how you turn uncertainty into a clear plan of action.
If you have inherited a house built before 1 February 2002, a legal clock is ticking. The Building Energy Act (GEG) requires new owners to carry out certain energy renovations within two years of the transfer of ownership. This obligation applies to purchases, gifts, and inheritances. Failure to meet the deadlines can result in fines of up to 50,000 euros. Inspections are often carried out by the chimney sweep during the regular inspection.
One of the most common obligations is to replace boilers that are over 30 years old. Additionally, the top floor ceiling or the roof must be insulated, and uninsulated heat-carrying pipes in unheated basements must be insulated. An exception exists if you, as the heir, lived in the house yourself before the cut-off date in 2002. Therefore, before planning an energy renovation, checking these GEG requirements is the first, essential step. These legal requirements form the basis for all further considerations.
How can you assess the renovation needs of an inherited property online without immediately calling an appraiser? Digital tools and detailed checklists offer an excellent initial orientation. They allow you to systematically evaluate the critical areas of the house, from the roof covering to the condition of the cellar. For an initial assessment, you usually only need a few basic data points: year of construction, living area, recent renovation measures, and the heating energy source. Many online calculators provide a rough cost estimate based on this information.
These tools help you understand the scale of the renovation backlog. A typical checklist asks the following questions:
Condition of the roof and facade (e.g., cracks, moisture)
Age and type of windows (single or multiple glazing)
Condition of the heating system and pipework
Electrical installations (e.g., is an RCD present?)
Plumbing areas (e.g., lead water pipes?)
An online check does not replace a professional appraisal, but it provides a solid foundation for informed decisions. For a more detailed analysis beyond standard checklists, our ImmoGPT chat can be a first point of contact to clarify specific questions. This initial analysis helps you prioritize the urgency of various measures.
Costs are often the decisive factor. A complete renovation of an old building can quickly exceed €1,200 per square metre. For an average detached house with 150 square metres, the costs thus add up to as much as €180,000. Even for a partial renovation, you should expect to pay €500 to €600 per square metre. Experienced builders also always plan a buffer of 15 to 25 per cent for unforeseen expenses, such as the disposal of asbestos or the rectification of moisture damage.
Some typical cost items at a glance:
Roof: A new covering including insulation costs between €100 and €250 per square metre.
Heating: Replacing an old oil heating system with a modern heat pump can cost €25,000 to €40,000.
Windows: New triple-glazed windows cost between €500 and €800 each.
Facade insulation: An external thermal insulation composite system (ETICS) costs about €150 to €250 per square metre.
These figures show how important precise budget planning is. A renovation cost calculator can provide initial guidance here. The precise analysis of these costs is essential to assess the economic viability of a renovation.
The energy performance certificate is one of the most important documents for quickly assessing the energy status of a property. It is legally required for sale or new rental and provides at a glance the final energy demand or consumption. The efficiency classes range from A+ (very good) to H (very poor). A property in class H can incur annual heating costs of over 25 euros per square metre, while a house in class A+ is below 3 euros. This difference can quickly add up to over 3,000 euros per year for 150 square metres.
Watch out for whether you have a consumption or demand certificate. The demand certificate is based on a technical analysis of the building and is often more informative than the consumption certificate, which only reflects the individual heating behaviour of previous occupants. The certificate also contains specific modernisation recommendations, which represent an initial priority list for renovation measures. Thus, it is a central tool for determining the true value of an inherited property. The insights from the energy certificate are crucial for targeted subsidy applications.
Energy-efficient renovations are generously supported by the government. The main points of contact are the Federal Office for Economic Affairs and Export Control (BAFA) and the Reconstruction Credit Institute (KfW). BAFA provides grants for individual measures such as heating replacement or insulation, while KfW offers low-interest loans for comprehensive renovations to an efficiency house. The subsidies can cover up to 40% of the investment costs, which often makes a renovation economically viable.
A strategic approach is crucial to obtain the maximum funding:
Consult an energy advisor: A certified energy efficiency expert is mandatory for most funding applications. They develop a tailored renovation roadmap (iSFP), which alone unlocks a 5% funding bonus.
Submit applications before starting measures: The most important rule is: submit the application first, then hire the contractors. Applications submitted retrospectively are almost always rejected.
Combine funding options: Many programmes from BAFA and KfW can be combined to further reduce the financial burden.
A professional funding check ensures that you do not miss out on any grants. With a clear strategy, you can significantly reduce the financial burden.
Checking the renovation needs of an inherited property online is the first and most important step to gaining control as an heir. It allows you to identify legal obligations, roughly estimate costs, and create a sound basis for decision-making regarding the future of the property—whether it be selling, renting, or personal use. An initial online analysis protects you from unpleasant surprises and turns a potential risk into a calculable opportunity. For a precise, data-driven evaluation that goes beyond general calculators, an Auctoa Renovation Potential Report provides a reliable basis. Make your decision based on valid data, not just on gut feeling.
The Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) offers a publication on a relevant topic in the field of construction and urban development.
The Federal Statistical Office (Destatis) provides comprehensive information on construction prices and the property price index.
The Institute of the German Economy Cologne Consult GmbH (IW Consult) publishes an expert report on renovation potentials in residential properties.
The KfW Development Bank provides information on funding programmes for existing properties for private individuals.
The Consumer Advice Centre Bavaria offers a press release on renovation duties for heirs of old houses.
The Consumer Advice Centre provides detailed information about the Buildings Energy Act (GEG).
The Federal Ministry for Economic Affairs provides a dossier on the energy transition in the building sector.
The German Energy Agency (dena) provides information on the Energiesprong Germany project, which deals with serial renovation.
What happens if I miss the two-year renovation deadline?
If you do not comply with the renovation obligations set out in the GEG within the two-year period, the relevant state authority, often following a report by the chimney sweep, can impose a fine of up to 50,000 euros.
Is it worth renovating before selling the inherited property?
It depends on the individual case. Smaller, cost-effective modernisations can often disproportionately increase the selling price. A costly complete renovation is not always profitable but can widen the pool of potential buyers. A cost-benefit analysis is crucial here.
What role does the year of construction play in the online assessment?
The year of construction is a key indicator of the likely need for renovation. Buildings from certain eras have typical weaknesses, such as insufficient insulation (before 1979) or outdated electrics. Online tools use the year of construction as a significant variable in their calculations.
Do I always need to hire an energy consultant to apply for funding?
For most comprehensive funding programmes from KfW and BAFA, the involvement of a certified Energy Efficiency Expert (EEE) is mandatory. They confirm the eligibility of the measures for funding and assist with the application process.
What is the difference between renovation and modernisation?
A renovation rectifies defects and restores the original condition (e.g. repairing a leaky roof). Modernisation improves the standard beyond the original condition (e.g. installing a more efficient heating system or insulation). In the context of inherited properties, both often go hand in hand.
Where can I find reliable online checklists for renovation checks?
Reliable checklists can be found at consumer advice centres, energy agencies, or specialist portals. These help to systematically check all components of a property and document the condition, providing a good basis for discussions with professionals.
