Have you inherited farmland and are unsure of its actual value? A misjudgment can quickly cost you over 10,000 euros in taxes or lost revenue. This guide will show you in 5 clear steps how to accurately determine the value and protect your financial interests.
Chat with ImmoGPT for free now.
With access to Google, BORIS, and Deep Research.
The topic briefly and concisely
The standard land value set by the tax office is only an initial indication and can deviate from the real market value by up to 30%.
The comparative value method, based on actual sales, is the most accurate valuation method for over 90% of arable land.
An independent appraisal can reduce the inheritance tax burden by 15-25% and is crucial in cases of disagreement with the tax office or among heirs.
Inheriting farmland presents many heirs with a complex task: How can the exact value of farmland be determined after inheritance? This question is crucial because the value set by the tax office is often only an initial estimate and can deviate by 20% or more from the actual market value. An accurate valuation not only protects you from excessive inheritance tax but also ensures a fair distribution among the heirs and lays the foundation for an informed sales decision. With the right strategy, you can turn uncertainty into a clear, data-driven advantage and maximize the financial return on your inheritance.
Laying the Foundation: Why the Standard Ground Value is Just the Beginning
The first indicator of the value of your inherited farmland is the standard land value, which is determined every two years by the appraisal committees. You can view this value for each federal state free of charge through the online portal BORIS-D. The tax office uses this average value as the basis for the inheritance tax assessment. However, this value alone can deviate by up to 30% from the actual market value. Factors such as an ongoing lease agreement or below-average soil quality are often not taken into account. Uncritically adopting this value can therefore lead to an incorrect tax burden of several thousand euros. A more detailed analysis is therefore the next logical step.
Comparative value method: Deriving the real market value
For 90% of undeveloped agricultural land, the comparative value method is the most precise way to determine its value. This involves using actual sale prices of properties that have been sold in the region over the past 1-2 years. It is crucial that the comparable properties match in key characteristics. An expert analyses at least three to five comparable transactions. The central question is how your land compares directly, which requires a close examination of the value-determining factors. A professional appraisal of agricultural land is essential here. This transforms an average value into an individual and market-appropriate assessment.
Analyse of value drivers: These 4 factors determine the price
The final value of your farmland depends on at least four key factors that go beyond the standard land value. A detailed analysis of these points can increase or decrease the value by over 50%. The following aspects are crucial:
Soil Quality (Productivity Rate): The quality of the soil, expressed in the land or soil rating (scale from 7-100), is the most important factor. Areas with a productivity rate of over 60 are considered very good and command top prices.
Location and Layout: Proximity to markets and good transport links can increase the price by 10-15%. Large, contiguous plots are also significantly more in demand than small, fragmented parcels.
Existing Lease Agreements: Long-term lease agreements with terms exceeding 10 years can reduce the market value as they limit flexible use or quick sale options.
Development Potential: The greatest value increase of over 1,000% occurs when farmland is classified as future building land. This often happens in areas on the edge of settlement zones.
This detailed consideration forms the basis for any well-founded assessment of land factors.
Tax Pitfalls: Private Assets versus Business Assets
For inheritance tax, it is crucial whether the tax office classifies your farmland as pure private property or as part of an agricultural business. This distinction has massive financial implications. If the land is part of an active business, you could benefit from significant tax advantages (relief rules) that can reduce the tax burden by 85% or even 100%. However, you must continue the business for at least five to seven years. If the farmland is classified as private property, only the general allowances apply – for children, for example, €400,000. Any sale within 15 years can also trigger a re-evaluation by the tax office. Therefore, a precise review of the property valuation in inheritance is essential to avoid costly back taxes.
The Counter-Expert Report: When Investment in Precision Is Worthwhile
If you have doubts about the tax office's assessment or if there are different price expectations within the heir community, an independent market value appraisal is the best solution. The cost of such an appraisal typically ranges between 0.5% and 1.5% of the property's value, but the investment often pays off. A qualified appraisal can reduce the tax burden by an average of 15-25%. It provides an indisputable, data-driven foundation for negotiations with the tax office and creates peace among the heirs. Modern, AI-supported evaluations like Auctoa ImmoGPT can provide you with an initial, well-founded assessment within 24 hours and show whether a formal appraisal is worthwhile. The role of an appraisal in inheritance should never be underestimated.
Conclusion: Proactive evaluation as the key to success
Determining the value of farmland after an inheritance is more than just a formal duty – it is a strategic necessity. Instead of relying on the general land value set by the tax office, which can quickly lead to a tax assessment that is 20-30% too high, proactive and detailed analysis allows you to safeguard your financial interests. By understanding the valuation methods and the key value drivers, you ensure fair taxation and a strong negotiating position. A data-driven valuation is your most reliable compass in the complex process of settling an estate.
wert-von-ackerland-nach-erbschaft-ermitteln
Additional useful links
Das Online-Portal BORIS-D provides comprehensive information on standard land values essential for the valuation of properties.
Das Statistische Bundesamt (Destatis) offers detailed tables on purchase prices for properties, which are part of the real estate price index.
Die BMEL Statistik delivers up-to-date data on lease and purchase prices of agricultural businesses.
Das Bundesfinanzministerium provides information on the valuation of agricultural and forestry assets in the context of property tax.
Das Bundesfinanzministerium offers insights into the valuation of agricultural and forestry assets for inheritance tax.
Landwirtschaft.de highlights the causes of rising arable land prices in an article.
Wikipedia provides a basic definition and general information on the topic of arable land.
FAQ
How can I quickly and reliably determine the value of inherited farmland?
For an initial quick assessment, you can check the standard land value in the BORIS-D portal. For an exact valuation reliable for the tax office, a data-driven analysis by experts like Auctoa or a formal appraisal that determines the real market value based on comparable sales and individual factors is recommended.
Do I have to accept the tax office's assessment?
No. You have the right to demonstrate a lower market value through your own expert report. If this proof is provided, the tax office must usually use the lower value for calculating inheritance tax.
What is the difference between market value and land reference value?
The land value is an average location value for an area with similar properties. The market value (or market price) is the specific price that could be achieved for your particular property on the market, taking into account all individual characteristics such as soil quality, layout, and lease agreements.
What role do leases play in property valuation?
Long-term lease agreements, especially with low rental rates, can diminish the market value. They restrict the owner's control and make the property unattractive to potential buyers who want to operate it themselves. However, an expiring contract can present an opportunity for renegotiation and value enhancement.
What happens if the farmland is considered as land for future development?
When a municipality plans to designate farmland as building land in the future, its value increases enormously. The price can increase by tenfold or more. This must be taken into account in the valuation, as there is enormous financial potential here.
How can Auctoa assist with valuation?
Auctoa offers AI-powered real estate evaluations that provide you with a quick, data-driven and objective assessment of the market value. With our ImmoGPT, you can clarify initial questions and receive a solid basis to decide whether a costly, time-consuming appraisal is necessary or if our analysis already suffices for your purposes.
