Guide · inheritance

Inherited property in a community of heirs – takeover, buy-out and valuation date

An inherited property is often both an asset and part of the family’s personal history. After a death, the first question is therefore often what the property is worth and what economic options there are for dealing with it.

An expert property valuation can create a neutral basis for a takeover, buy-out, sale or a joint decision about the assets.

Sole heir or jointly held estate

Under German law, when a person dies, their entire estate passes to the heir or heirs as a whole. If the deceased leaves several heirs, the estate becomes the joint property of the heirs. The property therefore initially belongs to the community of heirs (Erbengemeinschaft), not to individual co-heirs in the form of particular rooms or parts of the building.

For dividing the estate economically, a clearly derived property value can therefore provide a shared starting figure. However, the valuation does not decide either the heirs’ shares or the legal distribution of the estate.

One co-heir wants to take over the property

If an inherited property is to be taken over by one co-heir, the question generally arises of which property value should be used for the internal division. An independent valuation can create an objective basis for discussions about the takeover value and possible equalisation payments.

Important: the property valuation does not determine the legal claims of the individual heirs. It provides the property value as an economic starting figure. The specific distribution under inheritance law depends on the legal circumstances of the estate concerned.

Sell, let or hold jointly?

If the property is to be sold, a valuation before marketing begins can help to create a price basis that is independent of wishful thinking. The market value (Verkehrswert) under § 194 of the German Building Code (BauGB) is the price that would be achieved in the ordinary course of business on the relevant valuation date, taking into account the characteristics affecting value.

A decision not to sell can also require a current property value. Within a community of heirs, it may be relevant, for example, what share of the whole estate the property represents, what income it generates and whether investment or modernisation is due.

Today’s market value or the value at the date of death?

For a decision to sell or take over today, the current market value may be what is needed. If, on the other hand, the value is to be determined as at a past date, the valuation must relate to that valuation date.

Under inheritance law, succession occurs on the death of the deceased. For inheritance tax, too, the tax on acquisitions upon death generally arises on the death of the deceased; for valuation for tax purposes, the time at which the tax arises is generally decisive. Statutory special cases may differ from this.

The right valuation date therefore depends on which specific question the valuation is meant to answer.

Not every property value is the same

For inheritance tax purposes, real estate is valued and separately assessed under the applicable provisions of the German Inheritance Tax Act and Valuation Act. The market value under § 194 BauGB, by contrast, is a market valuation as at the respective valuation date.

A property value assessed by the tax office and a market value determined by an expert therefore need not be identical. The subject of my work on this page is the expert property valuation; a tax assessment or special evidence under tax law provisions is not offered here.

When the heirs disagree about the property value

One co-heir may be guided by an online portal, another by an estate agent’s offer and a third by a sale in the neighbourhood. Such reference values can be based on very different assumptions.

An independent expert valuation cannot decide a legal dispute. However, it can set out transparently which property characteristics, market data and valuation inputs lead to a particular market value. This creates a shared professional basis for discussion.

If a report already exists, it can be reviewed professionally. If no agreement is reached, one of the co-heirs can apply for a partition auction.

Right of residence, usufruct and heritable building right

An existing right of residence or usufruct can affect how the owner can use the property economically and therefore its value. With a heritable building right, the particular legal and economic relationship between the right and the land has to be taken into account.

Which rights affect value in a specific case is assessed on the basis of the documents available and the respective task.

From first orientation to full market value report

Market value indication

When a first approximate orientation is needed and the property and data basis are suitable for this.

Learn more →

Short-form valuation

When a clearly derived market value with a site inspection is needed, for example as an economic basis within a family or community of heirs.

Learn more →

Full market value report

When a comprehensive derivation and documentation of the market value is required or the question calls for a correspondingly high level of robustness.

Learn more →

Property valuation for inheritance – services, prices & enquiry →

Which documents are needed?

Depending on the property and the instruction, the following are particularly helpful:

Land register extract
Cadastral map
Building drawings and floor plans
Living and usable area calculations
Details of the year of construction and modernisation
leases and rent schedules, if applicable
Information on rights and encumbrances
for flats, the declaration of division and relevant documents of the owners’ association
any earlier reports or valuations
The valuation date required

Which documents are actually needed depends on the property, the reason for the valuation and the depth required.

Expert valuation as an economic basis

My work is the expert valuation of property. Questions about heirs’ shares, the division of the estate, inheritance tax or other legal and tax consequences are assessed by the lawyers, notaries or tax advisers responsible.

Send a valuation enquiry