Property Valuation
Basic Report
How do I value a house after inheritance
Are you faced with the task of valuing a house after an inheritance? An accurate valuation is crucial to saving thousands of euros in inheritance tax and avoiding conflicts within the community of heirs. This guide will show you in 5 steps how to precisely determine the value of your property.
With access to Google, BORIS, and Deep Research.
The valuation of a house following an inheritance is crucial for determining the amount of inheritance tax and the division of the estate.
The tax office's flat-rate valuation is often 15-20% above the actual market value and should be reviewed through a counter-assessment.
A professional market value appraisal considers individual deficiencies and can reduce the tax burden by up to 30%.
The inheritance has occurred, and now you are the owner of a property. But what is the house really worth? This question is crucial not only for a potential sale but especially for the tax office. An incorrect or excessively high valuation can increase your tax burden by 20-30%. We will show you how to systematically determine the value of your inherited property, avoid the pitfalls of the tax office's estimation, and create a data-driven basis for all your decisions.
An inherited property often presents heirs with the challenge of determining its exact value. This value forms the basis for inheritance tax and a fair division among co-heirs. A professional valuation can often reduce the tax burden by more than 20%.
Inform the tax office: You are legally required to report the inheritance to the tax office within three months.
Understand valuation methods: The tax office uses standardized procedures, which often lead to an overvaluation of 15-20%.
Compile documents: An accurate valuation requires a land register extract, building plans, and an energy performance certificate.
Obtain a professional valuation: An independent appraisal provides a realistic market value and can significantly reduce the tax burden.
Make a decision: With a valid value, you can make an informed decision about whether to sell, lease, or use the property yourself.
The tax office's standardized valuation rarely takes individual defects into account, which can result in an unnecessarily high tax demand. A counter-appraisal is often the first step towards optimization.
Immediately after an inheritance, the tax office confronts you with the assessment of inheritance tax. The basis for this is the so-called market value of the property, which the authority determines according to its own, often general criteria. A valuation set just 10% too high can increase your tax liability by several thousand euros.
However, it's not only tax reasons that make an accurate valuation indispensable. If there is a community of heirs, the market value serves as a fair basis for the division of the estate or the payout to individual co-heirs. A value recognised by all parties and determined by a neutral valuation prevents conflicts that often arise in up to 40% of inheritance cases involving real estate. With a solid valuation basis, such as that offered by our Auctoa Erbmanager, you create transparency from the very beginning. This lays the foundation for a strategically wise decision about the future of the property.
The tax office uses standardized methods for value determination, which are set out in the Valuation Act (BewG). Depending on the type of property, one of three methods is applied, which you should be aware of:
Comparative value method: For owner-occupied single-family houses and condominiums. This method uses the sale prices of similar properties in the neighborhood. The data often comes from purchase price collections that can be up to 12 months old and do not reflect current market dynamics.
Income value method: For rented properties. The value is calculated from rental income minus management costs, using a property interest rate. Individual risks, such as a potential rental loss for 3-6 months, are rarely considered here.
Intrinsic value method: When the other two methods are not applicable. It is based on the pure construction costs of the building plus land value, minus an age-related depreciation. Special features, such as significant renovation needs, are often only roughly estimated at 5-10%.
These standardized approaches leave little room for the unique features of your property, often leading to an overvaluation. Therefore, the next step is to question this general estimation.
If the value determined by the tax office seems too high, you have the right to contest it with your own appraisal. A qualified market value report, prepared by an independent expert, is the most effective way to enforce a lower and more realistic valuation. The costs for such an appraisal start at approximately 1,500 euros and can significantly reduce the inheritance tax burden. Such a report considers value-decreasing factors that the tax office ignores, such as:
Structural damages and maintenance backlog (can reduce the value by up to 25%)
Energy deficiencies (e.g., old heating system, lack of insulation)
Legal charges (e.g., registered rights of residence)
Unfavourable layout or poor location
A detailed appraisal can correct the value determined by the tax office by 15-30% in many cases. For an initial assessment, you can also use our Inheritance Tax Calculator to calculate the potential savings. This provides a solid basis for further action.
A quick and precise assessment largely depends on the completeness of your documents. Good preparation can speed up the process by up to two weeks. Gather the following documents before contacting an appraiser or using a digital evaluation tool:
Current land register extract: Not older than 3 months, provides information on ownership and encumbrances.
Building plans and floor plans: Scaled drawings of all floors.
Living and usable area calculation: Detailed breakdown of areas according to the Housing Area Ordinance.
Energy certificate: Legally required and an important indicator of the energy condition.
Proof of modernisations: Invoices and receipts for the last 15 years (e.g., for heating, windows, roof).
For rented properties: Tenancy agreements and a list of current net cold rents.
With these documents, you enable a well-founded analysis and avoid time-consuming queries. This is the first step towards a well-informed sales decision, which you can further secure with our sales checklist.
The question "How do I value a house after inheritance?" is more than just a formality – it is a crucial lever for safeguarding your assets. Do not rely on the blanket estimates from the tax office, which often exceed the market value by 20%. Take control of the valuation yourself by requesting a professional, data-driven analysis. An accurate appraisal not only protects you from excessive tax burdens but also establishes a fair basis for decisions within an inheritance community. Use tools like the ImmoGPT chat from Auctoa for an initial, free orientation. A well-founded evaluation is the best investment in the future of your inherited wealth.
Bundesfinanzministerium offers comprehensive information about inheritance and gift tax in Germany.
Bundesfinanzministerium provides a BMF document regarding the valuation of lifelong use or performance effective from 1 January 2024.
Statistisches Bundesamt provides information on construction prices and the property price index in Germany.
Statistisches Bundesamt offers detailed tables on house prices and land prices.
Bundesbank publishes statistics on real estate and construction service prices.
BORIS is the central portal for querying standard land values in Germany.
Do I have to accept the value for my inherited house determined by the tax office?
No. You have the right to contest the notice from the tax office and demonstrate a lower, more realistic value with your own qualified market value appraisal. This often leads to a significant reduction in inheritance tax.
Which valuation method is right for my inherited house?
This depends on the type of property. For owner-occupied houses and apartments, the comparative value method is typically applied. For rental properties, the income value method is common. An expert will always choose the method that best reflects the actual value.
What happens if the community of heirs cannot agree on a value?
If no agreement is reached, a neutral market value appraisal by a certified expert is the best solution. This appraisal serves as an objective basis for the inheritance settlement and is also recognized in legal disputes.
How quickly can a property valuation be conducted after inheritance?
The duration depends on the availability of documents and the appraiser's workload. If all documents, such as land register excerpts and construction plans, are available, a valuation can often be completed within 2-4 weeks.
Does a usufruct or right of residence reduce the value of the property?
Yes, significantly. A usufruct or right of residence entered in the land register greatly restricts the use and exploitation of the property. This circumstance is considered as a depreciation in a professional appraisal and significantly reduces the assessment basis for inheritance tax.
What is the difference between market value and assessed value?
The market value (or fair value) is the price that could currently be obtained on the market for the property. The assessed value is an outdated fiscal assessment basis that has not been used for calculating inheritance tax since the inheritance tax reform of 2009.
