Property Valuation
Online Value Analysis
What is my inherited house really worth
You've inherited a house and are wondering: What is my inherited house really worth? This question is crucial, as a misjudgment can cost you thousands of euros. We will show you how to objectively determine the real market value and make an informed decision for your future.
With access to Google, BORIS, and Deep Research.
The true value of an inherited house is determined by a combination of location, condition, energy efficiency, and legal considerations, not by emotional attachment.
The tax office uses standardised procedures which, since 2023, often result in a higher valuation; a counter-assessment can reduce inheritance tax by up to 20%.
Three official methods are applied: the comparative value method for standard properties, the real value method for owner-occupied houses, and the income value method for rental properties.
Inheriting a property is often associated with emotions, but for financial and legal decisions, only the objective market value matters. Many heirs risk financial disadvantages by relying on outdated estimates or the tax office's standardised procedure, which often leads to a higher tax burden since 2023. A precise, data-driven valuation is therefore not an optional step, but the most important foundation for dealing with the inheritance. This guide takes you through the key factors and recognised procedures, so you understand the true value of your inherited house and avoid costly mistakes. This way, you lay a solid foundation for the next steps, whether selling, renting, or personal use.
Key Points
The true value of an inherited house is determined by a combination of location, condition, energy efficiency, and legal framework, not by emotional attachment.
The tax office uses standardised procedures, which since 2023 often lead to a higher valuation; a counter-expertise can reduce inheritance tax by up to 20%.
Three official methods are applied: the comparative value method for standard properties, the asset value method for owner-occupied houses, and the income value method for rental properties.
Hidden costs such as a renovation backlog of over €400 per square metre or conflicts within the inheritance community can significantly reduce the value.
An inherited house is a place full of memories, yet its market value is determined by hard facts. The emotional value and the price achievable in the market often differ by more than 15%. Your first and most important task as an heir is to strictly separate these two values. An objective assessment not only protects you from disappointments but also serves as the legal basis for distribution within an heir community and the determination of inheritance tax. Without a neutral data basis, conflicts are inevitable, and financial losses are almost unavoidable. A realistic appraisal is the compass for all further considerations, as you can read in our guide to Valuation of Inherited Real Estate. This objective perspective allows you to set the course correctly for the future of the property.
What is the true value of an inherited house? The answer depends on seven key factors that appraisers and buyers analyse. A thorough understanding of these drivers is essential for realistic pricing.
Here are the main points:
Location (Macro & Micro): The region and immediate surroundings are the largest value lever. A house in a metropolitan area can cost three times as much as a comparable property in a rural area.
Land value: This official average value for plots in your area is the basis of any appraisal. You can view it online on the BORIS-D portal.
Building substance and condition: Age, building materials, and possible damage are crucial. A 100-year-old house often requires more renovation than a building from the 1980s.
Energy efficiency: A poor energy rating (Class G or H) can reduce the value by up to 20%. An energy performance certificate is mandatory for sale or rental.
Fittings: Modern bathrooms, high-quality heating, or a well-tended garden increase the value. Outdated fittings can lead to deductions often exceeding 15,000 euros.
Size and layout: It is not just the living area in square metres that counts, but also a modern, functional layout. Poorly designed rooms reduce demand.
Legal conditions: Encumbrances in the land register such as a lifelong right of residence or a right of way can reduce the market value by over 25%.
Each of these points needs to be carefully examined to obtain a complete picture and to avoid over or underestimating the value.
In Germany, the Immobilienwertermittlungsverordnung (ImmoWertV) regulates three recognized methods for calculating market value. Which method is applied depends on the type and use of your inherited house. The choice of the correct method is crucial for an accurate result.
These are the three methods:
Comparative Value Method: This method is most commonly used for owner-occupied single-family homes and condominiums in areas with sufficient sales cases. The value is derived from the actual sale prices of similar properties in the neighborhood. It is considered particularly market-oriented.
Cost Approach Method: If there are no comparable objects, this method is applied. It determines what it would cost to build the house anew today, deducting depreciation for age. The land value is then added.
Income Approach Method: This method is the standard for rented properties. It is based on the future expected rental income minus operating costs and the land value.
Appraisers often combine two methods to validate the result. An overview of how to calculate the value of your inherited property helps with evaluation. These methods form the basis for any serious valuation, whether for the tax office or a potential buyer.
Beyond the obvious features, there are often hidden cost factors that can significantly reduce the value of your inherited property. An undetected backlog of renovations is one of the most common reasons for a decrease in value. The costs for an energy-efficient renovation can quickly exceed 400 to 800 euros per square metre. Especially for houses from the 1970s, the costs for the roof, windows, and heating often add up to over 100,000 euros. Another critical point is the community of heirs. If the co-heirs cannot agree on a common strategy, this often leads to sales pressure that can lower the price by up to 30%. Legal encumbrances, such as a right of usufruct registered in the land register or a permanent burden, can also significantly reduce the market value. Therefore, clarify early on whether you have inherited a house in need of renovation and what obligations are associated with it. Conducting an early and honest assessment of these risks protects against unpleasant surprises in the sales or rental process.
After an inheritance case, the tax office will contact you requesting an inheritance tax declaration. For valuation, the authority uses standardised procedures that often inadequately reflect the actual condition of the property. Since a change in the law at the end of 2022, these valuations tend to be 20 to 30% higher than before. The result is a potentially excessive tax burden for you. However, you are not bound to the tax office’s valuation. You have the right to prove a lower, actual market value through a qualified appraisal. This is particularly important if there are value-reducing factors like a backlog of renovations, construction defects, or a poor location, which the tax office does not consider. Such a counter-appraisal can often reduce the inheritance tax by several thousand euros. Find out how to determine the market value for the tax office to be optimally prepared. The effort of obtaining your own appraisal is therefore worthwhile in most cases.
To determine the true value of your inherited house, you have several options that differ greatly in cost and accuracy. Free online calculators offer an initial guide, but their results can deviate by up to 20% from the real value. An appraisal by an estate agent is often free but may be influenced by sales interests. The highest accuracy is provided by a market value appraisal from a certified expert. The cost for this is between 0.5% and 1.5% of the property value, often over 2,500 Euros, but the appraisal is recognised by the courts and tax authorities. A modern alternative is offered by Auctoa: we combine AI-driven data analysis with expert knowledge. This way, you get a fast, neutral, and cost-efficient appraisal that serves as a sound basis for decision-making. If you want an initial assessment, you can now chat with our ImmoGPT for free. This data-driven analysis helps you develop the right strategy for your property, whether it's a sale or rental.
The question "What is my inherited house really worth?" cannot be answered with a gut feeling or a quick glance at property portals. The true value is a complex sum of location, condition, legal factors, and the current market dynamics. An inaccurate estimate can lead to family conflicts, excessive inheritance taxes, or a sale below value, with losses quickly reaching five-figure amounts. A professional, data-driven appraisal is therefore not an expense, but an investment in your financial security. It provides an indisputable foundation for all further steps and gives you back control over your inheritance. Your informed decision begins with a single, objective number.
The Federal Statistical Office provides tables and data on house and land prices in Germany.
The Federal Ministry of Finance offers comprehensive information on inheritance and gift tax in Germany.
Wikipedia provides an overview on the topic of property valuation.
The Deutsche Bundesbank supplies statistics and indicators on the German residential property market.
The National Association of German Cooperative Banks (BVR) publishes a study on property price developments.
Under Gesetze im Internet you will find the current Property Valuation Ordinance (ImmoWertV) from 2022.
The Association of German Cities offers an analysis of the residential property market for the year 2024.
What documents do I need for a property valuation?
For an accurate valuation, you need a current land register extract, a cadastre map, building plans (floor plans, sections), a living space calculation, the energy certificate and evidence of modernisations from the last 15 years.
What does an official valuation for an inherited house cost?
The costs for a legally binding market value report from a certified expert are usually between 0.5% and 1.5% of the determined property value. For a house valued at €400,000, this would be approximately €2,000 to €6,000.
Do I need to renew the energy certificate if I’ve inherited a house?
Not immediately. The requirement to present a valid energy certificate (not older than 10 years) arises only when you sell, newly rent, or lease the property. The costs, depending on the type of certificate, range from €100 to €500.
What is the difference between market value and standard land value?
The standard land value is only the average value of the undeveloped plot per square metre in a specific zone. The market value (or market price) is the price for the entire property, including the land and building, taking into account individual features such as condition, equipment, and age of the house.
How does a community of heirs affect the value?
Disagreement within a community of heirs can lead to sales delays or even a forced partition sale. This sales pressure can reduce the achievable price by up to 30% below the actual market value.
Can I deduct the costs of the valuation report from taxes?
Yes, if you have the report prepared to sell the property, the costs can be claimed as advertising expenses for the income from the sale. If it is used to determine inheritance tax, the costs are deductible as an estate liability.
