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What are the costs of selling my parents' house?
Have you inherited your parents' house and are wondering what the real cost of selling it is? Many heirs underestimate the additional costs, which can reduce the proceeds by up to 15%. This guide shows you how to identify and optimise each cost point based on data.
With access to Google, BORIS, and Deep Research.
The additional costs of selling the parents' house often amount to 10-15% of the sale price and include agent fees, notary costs, taxes, and other expenses.
The speculation tax on the sale profit is waived if the property has been owned by the family for more than 10 years or was last used by the owner.
Hidden costs such as early repayment penalties for ongoing loans and fees for mortgage cancellation can unexpectedly drive up costs.
Selling the family home is a decision often accompanied by emotions. However, beyond the personal aspect, there are tangible financial questions that arise. What does selling the family home really cost me? The answer is more complex than many assume, as in addition to the expected proceeds, various costs can quickly add up to five-figure amounts. An inaccurate calculation can reduce the profit by 10% to 15%. This article offers you a transparent, data-driven breakdown of all incurred charges. This way, you can make informed decisions and ensure the maximum return from your inheritance.
The question "What will selling the family home cost me?" cannot be answered definitively, but a rule of thumb is: Plan for incidental costs between 10% and 15% of the notarised sale price. For a sale price of €400,000, this corresponds to a sum of €40,000 to €60,000. These costs are often underestimated and consist of several components. The largest items are usually estate agent fees, notary and land registry fees, as well as potentially applicable taxes. In addition, there are expenses for necessary documents such as the energy certificate, which can cost up to €500. A detailed checklist for selling property helps to keep an overview. Knowing these expenses precisely is the first step to optimising your sale proceeds. Next, we take a closer look at the largest single item: the estate agent fees.
Since the change in law at the end of 2020, broker fees when selling apartments and single-family homes are generally shared. The usual commission is 3.57% (including VAT) for both the seller and the buyer, which corresponds to a total commission of 7.14% of the sale price. For a sale price of €500,000, this means a cost of €17,850 for you as the seller. These costs, although significant, are often a wise investment, as a professional broker can achieve a sale price up to 15% higher. It is crucial to scrutinise the broker's service, especially if you are selling as part of an inheritance community. Once the broker fees are clarified, attention turns to the unavoidable fees for the notary and land registry.
The notary and land registry fees are legally stipulated in the Court and Notary Fees Act (GNotKG) and are therefore non-negotiable. You should expect around 1.5% to 2.0% of the notarised purchase price. For a house sale of €400,000, this amounts to approximately €6,000 to €8,000. The majority of this sum is typically borne by the buyer. However, as the seller, you bear the costs for deleting encumbrances in the land registry, such as an old mortgage with the bank. These deletion costs amount to about 0.2% of the registered mortgage amount. An exact market value is the basis for these calculations. Once these fees are settled, the crucial question of tax liability arises.
Two types of taxes are relevant when selling the parental home. Inheritance tax applies to the value of the inheritance, with children entitled to an allowance of €400,000. Capital gains tax is payable on the profit from the sale if the period between acquisition by the decedent and sale is less than ten years. This period is waived if the house was occupied by the owner in the year of sale and the two preceding years. The decedent's period of ownership is credited to you, which often leads to a tax exemption. An accurate property valuation is crucial to determine the tax burden. With our inheritance tax calculator, you can make an initial assessment. In addition to taxes, costs for the property itself may also arise.
Before the sale, certain documents must be available. The legally required energy certificate is a central document. The costs for this vary depending on the type: A simple consumption certificate costs between €50 and €100, while a detailed demand certificate can cost up to €500. Minor cosmetic repairs can increase the selling price by 5-10%. Major renovations should be carefully considered. A guideline is the 70% rule: Of a €10,000 investment in a bathroom renovation, often only about €7,000 is reflected in the selling price. Carefully weigh whether renovating before the sale is worthwhile. The following measures have often proven to be profitable:
Renewing floor coverings (Costs: €30-60/m²)
A fresh coat of paint on the interior walls (Costs: €10-20/m²)
Modernising the front door (Costs: from €1,500)
Garden maintenance and landscaping (Costs: from €500)
Often, it is small, cost-effective measures that achieve the biggest visual impact. However, there are additional costs that may be lurking in concealment.
If the inherited property still has a loan, two additional costs may arise. If you repay the loan early, the bank will charge an early repayment fee for the lost interest income. This can amount to several thousand euros and depends on the remaining debt, interest rate level, and remaining term. Secondly, notary and court fees are incurred for the removal of the land charge from the land register. These amount to approximately 0.2% to 0.4% of the land charge amount. For a registered land charge of €200,000, that's at least €400 to €800. An accurate valuation is essential to realistically assess all cost factors. Use an online calculator for an initial estimate. A thorough evaluation is the key to a successful sale.
The question "What will selling the parental home cost me?" reveals that the process involves much more than just going to the notary. Additional costs, ranging from estate agent's commission to taxes and repairs, can significantly reduce the net proceeds. Therefore, careful planning, based on a solid data foundation and a professional valuation, is essential. Only those who are aware of all potential expenses can actively manage and optimise them. An objective, AI-driven evaluation from Auctoa or a conversation with our ImmoGPT chat can provide you with the necessary clarity. This ensures that the sale of the parental home comes to a financially successful conclusion.
The Federal Ministry of Finance offers detailed information about property transfer tax, which may be incurred when buying or selling a property.
On the Federal Ministry of Finance's website, you will find frequently asked questions and answers regarding speculative tax, which can be relevant when selling real estate.
The Federal Ministry of Finance provides comprehensive information on inheritance tax, which is incurred when inheriting a property.
Under Laws on the Internet, you can view Paragraph 433 of the Civil Code (BGB), which regulates the basic provisions of the purchase agreement.
What are the biggest cost factors when selling your parents' house?
The biggest cost factors are typically the estate agent's commission (around 3.57% of the sale price for the seller), capital gains tax (if applicable), and major unforeseen repairs. An early repayment penalty on an existing loan can also amount to a significant sum.
How can I reduce costs when selling a house?
You can reduce costs by considering whether selling without an estate agent is viable, carefully assessing which renovations are truly worthwhile, and claiming all deductible items on your tax return. An accurate, data-driven valuation also prevents you from selling the property below its value.
Is a property valuation report mandatory for selling?
An official, paid market value report is not legally required but is often highly recommended. It provides a solid basis for negotiations, is helpful within inheritance groups for internal clarity, and serves as proof for the tax authorities to avoid excessive inheritance or capital gains tax. A digital property valuation service like Auctoa offers a quick, cost-effective alternative.
When do I have to pay inheritance tax if I sell my parents' house?
Inheritance tax is due on the value of the inherited assets at the time of inheritance, not on the sales revenue. For children, there is an allowance of €400,000. Inheritance tax is only due if the property's value determined by the tax authorities (proportionally) exceeds this amount, regardless of whether or when you sell.
What happens if there is still debt on my parents' house?
If the inherited house is still burdened with a loan, the debt is transferred to the heirs. Usually, the loan is paid off from the sales proceeds. The bank may demand an early repayment penalty for the early settlement, which increases the sale costs.
Do I have to pay for the energy performance certificate as a seller?
Yes, as a seller, you are legally obliged to present a valid energy performance certificate to potential buyers at the latest during the viewing. The costs for its creation, which can range from €50 to €500, are borne by you as the seller.
