Inheritance Manager
Real Estate Legal Information
Pros and Cons of Selling a House as an Heir
Inheriting a house is more than just an increase in assets – it is a responsibility that requires strategic decisions. With emotional value, financial opportunities, and tax obligations, many heirs face a complex situation.
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Selling a house as an inheritance offers quick liquidity but can be significantly reduced by inheritance and speculation taxes.
In an inheritance community, a unanimous decision is required for the sale; disagreement often leads to depreciation through a partition auction.
The ten-year speculation period is assumed by the decedent and is a crucial factor for the tax burden.
This guide highlights the crucial advantages and disadvantages of selling a home as an heir. We provide you with a data-driven foundation to avoid financial pitfalls, resolve conflicts within the community of heirs, and maximise the value of your inheritance. Make an informed decision based on facts rather than gut feelings.
Selling an inherited property is a decision with significant financial and personal consequences. Here are the key aspects you need to consider:
Financial Liquidity: A sale provides immediate funds and ends ongoing costs, which can amount to 1-2% of the property's value annually.
Tax Burden: Inheritance and capital gains taxes can significantly reduce profit. Personal allowances range from €20,000 for non-relatives to €500,000 for spouses.
Heir Community: A unanimous decision from all co-heirs is necessary for a sale. Disagreements often lead to losses of up to 30% through forced auctions.
Value Development: Properties are considered stable investments. A sale excludes future value increases or rental income.
An accurate, neutral evaluation is the basis for all these considerations.
The most obvious advantage of selling an inherited property is the quick access to capital. Instead of an illiquid asset, you and your co-heirs receive a clearly defined amount of money that can be easily divided. This significantly speeds up the settlement of an inheritance community. Additionally, you immediately end all ongoing costs. A property incurs expenses for property tax, insurance, and maintenance even when unoccupied, which can quickly add up to several thousand euros per year. Particularly with older properties, high renovation costs threaten to diminish the value of the inheritance. A sale converts these liabilities into realized profit. With a clear sales strategy based on a solid property valuation, you ensure financial clarity. This financial freedom is a compelling argument that is decisive for many heirs.
Selling an inherited property is rarely completely tax-free. Two types of taxes are relevant for you as an heir: inheritance tax and speculation tax. Inheritance tax becomes due when the value of the property exceeds your personal allowance. For children, this is €400,000, for grandchildren €200,000, and for non-related heirs only €20,000. Anything above that is taxed. The second hurdle is the speculation tax. It applies if less than ten years have passed between the purchase by the decedent and the sale by you. The tax rate depends on your personal income tax rate and can significantly reduce the profit. However, there are exceptions, for instance, if the property was used personally in the year of sale and the two preceding years. Therefore, a careful examination of the applicable deadlines is essential to avoid an expensive surprise.
If the inheritance consists of multiple people, an inheritance community is automatically formed. This carries significant potential for conflict, as all decisions must be made unanimously. A single co-heir can block the sale, even if they hold only a small share of 5%. Different interests – one wants to rent out, another wants to move in, the third wants to sell – often lead to years of stagnation and loss of value. A sale is often the cleanest and fairest solution here. The proceeds from the sale are money and can be divided exactly according to the inheritance quotas, unlike a house. This avoids a potential ongoing dispute and preserves family harmony. The process creates clear facts and ends the often emotionally charged discussion about the future of the property. Find out how to sell a house from an inheritance community to make the process smooth. This turns the sale into a tool that dissolves the community, rather than dividing it.
Wenn sich eine Erbengemeinschaft nicht auf einen freihändigen Verkauf einigen kann, droht als letzter Ausweg die Teilungsversteigerung. Jeder Miterbe kann diesen Prozess beim zuständigen Amtsgericht beantragen, ohne die Zustimmung der anderen. Auch wenn dies nach einer Lösung klingt, ist es meist die schlechteste aller Optionen. Bei einer solchen Zwangsversteigerung werden Immobilien oft weit unter ihrem Marktwert verkauft. Wertminderungen von 20 % bis 30 % gegenüber einem regulären Verkauf sind keine Seltenheit. Hinzu kommen erhebliche Gerichts- und Verfahrenskosten, die den Erlös weiter schmälern. Der emotionale und familiäre Schaden durch einen solchen erzwungenen Prozess ist ebenfalls beträchtlich. Eine Teilungsversteigerung sollte daher unbedingt vermieden werden. Sie vernichtet Vermögen und hinterlässt oft nur Verlierer. Eine frühzeitige, neutrale Bewertung kann helfen, allen Parteien den realistischen Wert aufzuzeigen und eine Eskalation zu verhindern. Dies unterstreicht die Notwendigkeit, eine gemeinsame Basis zu finden, bevor rechtliche Schritte unausweichlich werden.
An immediate sale also means forgoing future profits. The German real estate market has experienced significant value appreciation over the past decade. Depending on the location and condition of the property, it may be strategically wise to hold onto the asset and anticipate further positive development. Alternatively, renting offers a way to generate ongoing income. This can contribute to covering costs and long-term wealth building. However, renting is associated with management effort and legal obligations. Additionally, properties that are rented out often achieve a lower price at a later sale. The decision largely depends on your personal risk tolerance and financial goals. Consider whether the quick proceeds outweigh the potential future profits. A comparison calculator for selling or renting can provide an initial guide here.
An inherited property is rarely just a bundle of bricks and mortar; it is often the family home, full of memories. This emotional value cannot be quantified in euros and makes the decision to sell particularly difficult. For many heirs, selling feels like a final farewell to a part of the family history. Statistics show that around 72% of heirs initially wish to keep inherited properties, often for emotional reasons. This emotional attachment, however, can block rational decisions and lead to financial disadvantages if necessary steps are postponed. It is important to be aware of this emotional aspect and to include it in the decision-making process, without allowing it to be paralyzing. Sometimes it is helpful to clearly weigh up the options to sell or to move in yourself in order to align personal desires with financial realities. An objective view from outside can help find the right balance.
No matter which path you choose: At the beginning of every decision regarding an inherited property, there must be a precise and neutral valuation. Only with a realistic market value can you accurately assess the inheritance tax, set a fair sale price, or calculate the payout for co-heirs. An estimate by the tax office often works against the heirs. Banks often value properties conservatively for loans, which can be up to 10% below the market value. An independent, AI-supported analysis like that from Auctoa provides you with an objective value and protects you from costly mistakes. Do you need a quick assessment or have complex questions? Our ImmoGPT chat is available to you free of charge. With a solid data foundation, you transform uncertainty into strategic security and lay the foundation for optimal handling of your inheritance. Check now, how high your inheritance tax could be.
The Federal Ministry of Finance provides comprehensive information on inheritance and gift tax.
The Federal Ministry of Finance explains the application of regulations for the valuation of real estate within the framework of inheritance and gift tax.
The Federal Statistical Office (Destatis) provides data on construction prices and real estate price indices.
A press release from the Federal Statistical Office (Destatis) informs about current real estate prices.
Haufe offers an expert article on the valuation of real estate for inheritance tax.
On notar.de you will find a fee calculator for notary costs.
The Deutsche Bundesbank publishes statistics on real estate and construction performance prices.
What costs are incurred when selling an inherited house?
In addition to possible taxes, costs include the preparation of an energy certificate (around €300-500), notary fees (approximately 1.5% of the purchase price), potential estate agent fees (regionally variable, often 3.57% including VAT for the seller) and costs for updating the land registry. Additional expenses may include renovations or house clearance.
What is the deadline to accept or decline an inheritance?
The period to reject an inheritance is typically six weeks from the time you become aware of the inheritance. If you miss this deadline, the inheritance is automatically considered accepted – including all rights and obligations.
Do I have to inform the tax office about the inheritance?
Yes, you are legally obliged to inform the relevant tax office within three months of becoming aware of the inheritance. This applies even if the value of the inheritance is below the personal exemption limits.
What is the difference between market value and assessed value?
The market value is the price that can currently be achieved in a sale on the market. The assessed value is an outdated tax assessment basis, often considerably lower than the actual market value, and is only used for inheritance and property tax in certain cases.
Can I sell my share of an inherited property?
Yes, as a co-heir, you can sell your entire inheritance share to a third party or another co-heir. However, you cannot sell only your portion of the property alone. The sale of an inheritance share requires notarization.
What is an early repayment penalty in case of inheritance?
If the inherited property is still encumbered with a loan and you pay it off early with the proceeds from the sale, the bank may charge an early repayment penalty. This is a fee for the bank's lost interest income.
