Questions & Answers on Real Estate Valuation

Foreign appraisal reports may be used as a source of information; however, they regularly do not replace an appraisal report prepared under German law for German authorities and courts, particularly where differing valuation standards apply.

A building damage report technically analyzes the cause and extent of specific structural defects, while the market value appraisal quantifies their economic impact on the overall value of the property. Both reports complement each other when damage is value-relevant.

Professional associations publish model guidelines and quality standards that we use as a point of reference. Although they are not legally binding, they serve as a recognised guideline for the structure, content and traceability of an appraisal report.

In the event of a longer-term absence, we will typically inform you promptly and, where possible, arrange for a representative or a handover to a professionally equivalent colleague, in order to keep any delays to a minimum.

Yes, we now provide our appraisal reports as a qualified electronically signed PDF document, which is legally equivalent to a handwritten signature and can be archived digitally.

A professional second opinion can objectively assess existing doubts about an appraisal report and either confirm or qualify them. It is often obtained before major financial decisions or in disputes between multiple parties.

A market value appraisal determines the market value of a property, while a damage appraisal report documents specific structural damage and establishes its cause as well as the costs of remediation. Both types of appraisal reports frequently complement each other in cases of value-reducing defects.

Signature and seal confirm our personal responsibility for the content of the appraisal report. As a publicly appointed valuer, our seal additionally indicates our formal qualification and appointment.

No, automated online estimates can provide initial indications, but they cannot replace a legally sound market value appraisal, as they cannot account for individual property characteristics, legal circumstances, and actual condition.

If an appraisal report is based on deliberately false information provided by the client, this can distort the result and, in the event of a dispute, lead to the appraisal report being unusable as well as legal consequences for the client.

There is no uniform statutory retention period. However, as a publicly appointed valuer, we are obliged under the regulations of our appointing chamber to retain appraisal reports and working documents for at least ten years.

An arbitration appraisal is a contractually agreed appraisal that is binding on both parties, intended to avoid a judicial dispute over contested value issues from the outset.

We do not allow our professional judgment to be influenced by the client's wishes. However, clients can contribute to a precise and, for them, favorable yet correct result by providing complete and truthful information and documents.

In the course of preparing the appraisal report, we process personal data and are therefore bound by the requirements of the General Data Protection Regulation, in particular with regard to confidentiality, purpose limitation and the secure storage of documents.

In principle, each court is independent in its own proceedings when it comes to selecting a valuer. In the event of significantly diverging results, the parties may introduce the respective appraisal reports from the other proceedings as additional evidence.

A cancellation is generally possible; however, the client must compensate for the expenses already incurred, for example for research or a site visit already carried out. The exact conditions are governed by the terms and conditions of the engagement.

In addition to the actual fee, additional costs may arise for travel expenses in the case of greater distances, the procurement of official documents such as land register extracts, and for expedited processing in cases of particularly urgent need.

Personal presence is not strictly required, but it is advisable, as the owner can provide valuable additional information about renovations and special features of the property directly on site.

Missing documents can, in many cases, be obtained subsequently from the responsible authorities, such as the building authority or the land registry office. However, this often extends the processing time and can result in additional costs.

Of course, we also prepare English-language appraisal reports upon request, particularly for international investors, heirs residing abroad, or cross-border financing arrangements.

A high-quality appraisal report should transparently explain all methods applied, name all data and sources used, and clearly take individual property characteristics into account, rather than merely stating flat-rate values.

If new, value-relevant circumstances become known after completion, such as a previously undiscovered structural defect, the valuer can be commissioned to supplement or update the appraisal report accordingly.

The general statutory warranty rules governing contracts for work also apply to condensed appraisal reports. The client must specifically demonstrate an actual professional defect; only then do remedies such as subsequent performance, price reduction, or damages come into consideration at all.

For condominiums, the property tax value is first determined for the entire building or property and then allocated proportionally to the individual units according to the co-ownership share registered in the land register.

The party registered as owner in the land register on January 1 remains liable for property tax for the entire calendar year. A proportional apportionment between seller and buyer is usually regulated contractually in the purchase agreement.

In the case of a heritable building right (Erbbaurecht), it is generally the leaseholder, not the landowner, who is liable for property tax, since both the building and the use of the land are economically attributed to the leaseholder.

Yes, property tax is generally payable irrespective of actual use or any vacancy, as it is linked to ownership of the property rather than its use.

If the declaration of assessment is not submitted by the deadline, the tax office may estimate the property tax value and additionally impose late filing surcharges as well as coercive fines. A subsequent submission is nevertheless generally still possible.

For mixed-use properties, the property tax value is determined proportionally according to the respective usable areas for residential and commercial use, as different valuation parameters and, in some cases, different tax assessment rates apply to both types of use.

Yes, in the case of significant loss of income that is not self-inflicted, for example due to structural vacancy or damage from a disaster, a partial remission of property tax may be granted upon application pursuant to § 33 of the Grundsteuergesetz (Property Tax Act).

For listed buildings, the Grundsteuergesetz (Property Tax Act) provides for a remission of property tax under certain conditions due to increased maintenance costs, provided that these costs demonstrably exceed the achievable income.

After a demolition, this must be reported to the tax office, whereupon the property tax value is adjusted by way of an update to reflect the new use as an undeveloped plot of land, usually with noticeable effects on the amount of tax.

Property tax A (Grundsteuer A) applies to agricultural and forestry land, while property tax B (Grundsteuer B) applies to all other developed and undeveloped plots. Both categories follow different valuation rules and assessment rates.

A significant change of use must be reported to the tax office and generally leads to an update of the property tax value, as commercially used areas are sometimes subject to different valuation parameters than residential space.

Since properties are always clearly assigned to a municipality and thus to a federal state, there is no parallel application of two models. The model applicable is always that of the federal state in which the property is actually located.

The tax office issues a separate, proportional property tax value notice for each condominium unit within the community, based on the co-ownership share of the respective unit as registered in the land register.

In the event of proven temporary insolvency, the competent municipality may grant a deferral of property tax upon application, provided that the claim is not thereby jeopardized and adequate security is provided.

Both procedures must be considered separately from a legal standpoint, as different valuation bases apply. However, successfully demonstrating a lower value in one procedure can serve as supporting argumentation in the other procedure.

In the case of partial letting, the property tax value is determined uniformly for the entire building, taking into account both the owner-occupied and the let area, with proportional consideration of the respective use.

Agriculturally used land is subject to property tax A and is assessed according to its own, income-oriented valuation rules, which differ significantly from the valuation of building land under property tax B.

Appraisal reports for condominiums are usually cheaper than those for single-family houses due to lower complexity, often ranging between 600 and 1,200 euros, whereas single-family houses often cost 900 to 1,800 euros.

A condensed appraisal report usually costs 400 to 900 euros, while a complete market value appraisal costs 800 to 2,500 euros or more, depending on the property. The higher price reflects the significantly more extensive documentation and evidentiary value.

Common practice is a deposit upon commissioning, usually 30 to 50 percent of the fee, with the remaining balance due upon delivery of the completed appraisal report. The exact payment terms are governed by the individual engagement contract.

For complex commercial properties with multiple tenancies and elaborate income approach calculations, preparation can take four to eight weeks, significantly longer than for simple residential properties.

In practice, delays usually arise from missing documents or contacts at the client's side who are difficult to reach. Only if the valuer significantly exceeds a bindingly agreed date without a valid reason can the contract be rescinded after a reasonable grace period.

For commercial enterprises with real estate assets, a distinction is made between the actual business value and the real estate assets contained within it, whereby special inheritance tax relief provisions may apply to operating properties.

For inheritance tax purposes, the full, unencumbered market value of the property is first determined. The remaining outstanding debt can then be deducted as an estate liability, provided it actually originates from the deceased.

If a property is bequeathed to a specific person, the full market value of the property as of the date of death remains decisive for inheritance tax purposes, regardless of whether the legatee is also an heir.

Condominium units are valued in the equalization of accrued gains like other properties as of the dates of marriage and litispendence, usually using the sales comparison approach, supplemented by property-specific factors such as maintenance reserves or rights of exclusive use.

Jointly owned commercial properties are valued using the income approach and treated like other properties in the equalization of accrued gains. If the property is used for business purposes by one spouse, additional corporate law aspects must also be considered.

A loan taken out before the marriage and still outstanding at the date of the marriage is treated as a liability in the initial assets and correspondingly reduces the starting value to be applied.

The registration in the land register initially only determines civil-law ownership. For the equalization of accrued gains, the increase in value during the marriage must be equalized independently of this, regardless of who is listed as owner in the land register.

Where minor children are involved, the family court may grant the parent with custody a temporary right of use of the family home, regardless of the ownership situation. The financial compensation is handled separately within the equalization of accrued gains.

The housing benefit (Wohnvorteil) reflects the economic advantage that a spouse derives from living rent-free in the jointly owned property after the separation. It is calculated on the basis of the local comparative rent and taken into account in maintenance calculations.

In a foreclosure auction, a lower proceeds amount is often achieved than in a voluntary sale, as bidders factor in the risk of a court proceeding as well as the lack of comprehensive viewing opportunities.

In the case of a community of property (Gütergemeinschaft), the property belongs to both spouses jointly from the outset, so that in the event of divorce there is no calculation of accrued gains, but rather a regular division of joint assets according to the rules of the community of property.

A property inherited during the marriage is added to the initial assets as a privileged acquisition at its value at that time. Only the increase in value that has occurred since then is subject to the equalization of accrued gains.

Foreign properties are in principle also included in the equalization of accrued gains. For rented properties, it must additionally be clarified which national law governs the tenancy relationship and the determination of income.

Without marriage, there is no statutory equalization of accrued gains. The division of jointly acquired property is instead governed by the civil-law co-ownership shares as well as any existing agreements between the partners.

A land charge registered in favour of third parties, for example to secure a family loan, is taken into account as an existing encumbrance in the valuation and reduces the net asset value to be applied accordingly.

The total value of the property is first determined uniformly and then allocated computationally between both partners according to the co-ownership shares registered in the land register, for example 60 to 40 percent.

Remaining in the property alone does not change the fundamental valuation for the equalization of accrued gains, but it additionally leads to the imputation of a residential benefit as well as, where applicable, a proportional share of costs for the other partner.

In the case of an early equalisation of accrued gains under § 1385 BGB, for example in the event of a prolonged separation without divorce, the property is already valued as of an earlier reference date, regardless of the later conclusion of the divorce proceedings.

In addition to the actual valuation by a local valuer, holiday properties abroad often require consideration of differing forms of ownership, tax regulations, and sales restrictions for foreign owners.

Increases in value that occur only after the relevant cut-off date of litispendence generally remain disregarded for the equalization of accrued gains and remain entirely with the respective owner of the property.

In the event of inheritance, condominium units are valued analogously to houses using the standardized procedures of the Valuation Act (Bewertungsgesetz), usually via the sales comparison approach, provided sufficient comparable data for similar units is available.

Agricultural and forestry assets are valued according to the separate valuation provisions of the Valuation Act (Bewertungsgesetz), which distinguish between the operating value of the ongoing business and the residential portion of the farmstead, and which in some cases provide for substantial tax relief.

In such cases, we prepare a neutral appraisal report that objectively documents and quantifies the actual need for renovation, in order to create a decision-making basis comprehensible to all co-heirs.

In the case of a prior and subsequent inheritance, the property is first valued in respect of the prior heir and later valued again upon the occurrence of the subsequent inheritance. Disposal restrictions on the prior heir may reduce the economic value of his position.

The tax assessment valuation (Bedarfsbewertung) is the standardised procedure automatically applied by the tax office to determine the property value for inheritance and gift tax purposes. It does not replace an individual market value appraisal, but can be rebutted by one.

In the case of anticipated succession, the same valuation rules generally apply as for a gift. Agreed consideration such as usufruct, right of residence, or maintenance payments reduce the tax-relevant transfer value accordingly.

For the calculation of the compulsory portion claim, the actual market value of the property at the time of death is decisive, not the flat-rate tax value determined by the tax office. An appraisal report often provides clarity here.

The supplementary compulsory portion claim takes into account gifts made within the last ten years prior to the inheritance, with the value of the property at the time of the gift being included on the basis of a tapering credit that decreases by ten percent each year.

A purchase price achieved shortly before the inheritance occurred can be used by the tax office as strong evidence of the actual market value, thereby displacing the standardized valuation in the individual case.

An agreed reversion clause, for example in the event of the recipient's insolvency or predecease, can reduce the economic value of the gift and must be taken into account in the tax valuation.

Even where the decedent died abroad, the valuation of a German property is governed by German valuation law. For foreign properties in the estate, however, the valuation principles of the respective country of location apply.

A notional co-ownership share is generally derived proportionally from the overall value of the property. Since co-ownership shares are only tradable to a limited extent, an additional market discount is sometimes discussed in practice, though it is usually not recognized for tax purposes.

If a spouse living in a community of accrued gains passes away, the surviving spouse receives a flat-rate quarter of the estate in addition to the statutory inheritance share as a so-called matrimonial property law equalisation of accrued gains, which reduces the value of the remaining estate.

Under the community of accrued gains regime, the surviving spouse's notional claim to equalization of accrued gains remains exempt from inheritance tax, which correspondingly reduces the taxable estate value. Under separation of property, this benefit does not apply at all.

Condominiums are usually valued using the sales comparison approach. In addition to the flat itself, the co-ownership share in the common property, special usage rights, and the structural condition of the entire building are factored into the valuation.

Multi-family houses are generally valued using the income approach, whereby all rental income, vacancies, and operating costs are considered jointly for the entire building.

Commercial properties are usually valued using the income approach, whereby the remaining terms of lease agreements, tenant creditworthiness, third-party usability, and the location within the commercial context play a central role.

Partial ownership (Teileigentum) is valued similarly to residential condominium ownership, but taking the differing type of use into account. Parking spaces and commercial units within condominium owners' associations follow their own comparison criteria and rent levels.

Holiday properties are valued using either the sales comparison approach or the income approach, depending on use. In the case of tourist letting, achievable income from short-term rentals as well as seasonal fluctuations must also be taken into account.

A new building before completion is valued on the basis of the construction planning, the construction progress and the costs already incurred as well as those still outstanding, usually supplemented by an estimate of the anticipated value upon completion.

Identifiable structural defects lead to a discount equal to the expected cost of remediation. In the case of serious defects affecting structural stability, the value may be reduced significantly more than the pure repair costs.

Agricultural land is usually valued using the sales comparison approach for arable or grassland, supplemented by separate values for farmsteads, buildings and any special crops or tenancy arrangements.

A well-funded maintenance reserve tends to have a value-enhancing effect, as upcoming renovations are already financially provided for. A low reserve, on the other hand, can indicate future special assessments and therefore a discount.

The replacement value reflects the cost of restoring a building to its original condition in the event of damage, and forms the basis for building insurance. The market value additionally takes into account the land, location and market conditions.

In the case of suspected contaminated sites, the unencumbered value is first determined and then reduced by the estimated remediation and investigation costs as well as an uncertainty discount for the remaining marketing risk.

The remaining useful life describes the period during which a building can continue to be used economically under ordinary maintenance. It significantly influences both the age-related depreciation in the cost approach and the multiplier in the income approach.

Easements such as rights of way, pipeline, or crossing rights in favor of third parties restrict the usage possibilities of the encumbered property and reduce its value in proportion to the extent of the impairment.

In the case of listed commercial properties, increased renovation costs and limited conversion options are weighed against possible tax depreciation benefits and a particular locational attractiveness for certain user groups.

Special usage areas such as gardens, terraces, or parking spaces within a homeowners' association are available for exclusive use by one owner, but legally remain part of the common property. They are taken into account with their own, usually moderate, value premium.

Specifically planned new construction projects in the neighborhood can have either a value-enhancing or value-reducing effect, depending on their nature – for example, through improved infrastructure on the one hand, or shading, noise, and increased density on the other.

Unauthorized structures are generally valued with a significant deduction, as subsequent approval or an official order for demolition cannot be reliably ruled out.

In practice, both terms are generally used synonymously. "Valuer" is the legally more precise term, particularly in conjunction with the designation "publicly appointed and sworn" or a recognised certification.

An appraisal report obtained by court order carries significant weight in the court's decision, but is not legally absolutely binding – the court evaluates it as part of its free assessment of evidence, together with all other evidence.

Valuers are only liable for demonstrably culpable, gross professional errors in the appraisal report – the burden of proof lies with the client. As a publicly appointed and certified valuer, we maintain professional liability insurance for this purpose.

The central legal bases are § 194 of the German Building Code (BauGB) (definition of market value), the Real Estate Valuation Ordinance (ImmoWertV) for the methodological implementation, and the Valuation Act (BewG) for tax-related valuation occasions such as inheritance and gift.

The Real Estate Valuation Ordinance (ImmoWertV) governs nationwide which procedures and principles are to be used to determine the market value of land and buildings. It is the central methodological basis for every market value appraisal.

§ 194 German Building Code (BauGB) defines the market value as the price that would be achieved in ordinary business transactions, without regard to unusual or personal circumstances, as of the valuation date. It is the central legal basis for valuation.

In civil and family law, the competent court generally appoints the valuer, often from a list of publicly appointed and sworn valuers, whereby the parties may submit proposals in advance and raise objections.

A supplementary expert opinion (Obergutachten) is an additional appraisal report, usually prepared by a particularly experienced valuer, intended to provide a conclusive, overarching professional assessment in cases of significant contradictions between several existing appraisal reports.

Yes, differing results are not uncommon, as valuers have discretionary latitude within the legal framework, for example in the selection of comparable properties, adjustments, or the assessment of structural condition.

If there is a reasonable suspicion of bias, for example due to personal or business relationships with a party, a formal recusal motion may be filed with respect to court-appointed valuers.

Claims for damages due to an actually demonstrable, defective appraisal report generally become time-barred under the general three-year limitation period of the German Civil Code (Bürgerliches Gesetzbuch), beginning at the end of the year in which the claim arose and the injured party became aware of it.

An expert opinion is commissioned by one party itself and at its own expense. In court, it is legally regarded merely as qualified party submission, not as an independent appraisal report in the technical sense.

We hold sufficiently endowed professional indemnity insurance, which covers financial losses caused by professional errors in the appraisal report. As a publicly appointed valuer, this insurance is in any case mandatory for us.

An initial non-binding value estimate is possible online; however, a complete, court-standard market value appraisal generally requires a personal on-site inspection by us.

Bank reports usually determine a conservative mortgage lending value based on internal bank guidelines, whereas a market value appraisal of court-standard quality determines the full market value in accordance with the ImmoWertV in a verifiable, well-reasoned, and methodically robust manner.

First, you should discuss the result and the underlying assumptions with us. If doubts remain, a second appraisal report (superior expert opinion) or, in case of dispute, a judicial review can be obtained.

Yes, parties can raise objections to a court report, for example through supplementary questions to the valuer, a counter-report, or a request for a hearing or replacement of the valuer in cases of well-founded doubts.

A current valuation date is usually easier and cheaper to process, since all relevant data is immediately available. Retrospective valuations require additional research and therefore increase effort and costs.

As a general rule: the more complex the property, the higher the fee. Condominiums are usually the cheapest to value, followed by single-family homes, while commercial properties and multi-family houses are the most expensive due to their higher complexity.

No, an appraisal report is not legally required for a private sale. However, it is advisable in order to set a realistic, negotiation-proof asking price and to be able to provide buyers with a well-founded justification of value.

The property tax value is reassessed on a regular basis every seven years as part of a main assessment. In the event of material changes, for example due to new construction or demolition, an additional update is carried out outside this cycle.

The federal model calculates the property tax value based on value, using the standard land value (Bodenrichtwert) and rents. Several federal states, such as Bavaria, Baden-Württemberg, or Hamburg, instead use their own, mostly area-based state models with differing calculation methods.

The objection must be submitted in writing or electronically to the responsible tax office that issued the assessment notice. It should be specifically justified, ideally supported by a valuation report or verifiable errors in the details of the notice.

The objection period is one month from notification of the notice. If this deadline is missed, the notice becomes final and binding, and a later correction is only possible in very limited exceptional cases.

Similar to inheritance tax, the German Valuation Act also allows, under certain conditions, proof of a lower actual value for property tax purposes if the standardized property tax value significantly exceeds the actual market value.

With the reform, the assessment basis for property tax was redetermined nationwide in a more realistic manner. For many owners, the actual amount of tax changes noticeably, depending on location, the standard land value, and the levy rate set by the municipality.

For undeveloped land, the property tax value under the federal model is simply calculated as the land area multiplied by the official standard land value of the respective zone, without further individual adjustments.

The assessment rate (Hebesatz) is a percentage individually determined by each municipality, by which the property tax base amount is multiplied. It significantly determines the actual amount of property tax payable and varies greatly between municipalities.

Yes, property tax is among the apportionable operating costs and can generally be fully passed on by the landlord to the tenants via the utility bill, provided this is agreed accordingly in the lease.

If a property is developed during the ongoing assessment period, this must be reported to the tax office. A revaluation of the property tax value is then carried out as of the next reference date, taking the new building into account.

If the official standard land value appears excessive in an individual case, an appraisal report can be submitted showing a lower, individually substantiated fair market value in order to have the property tax value notice corrected accordingly.

Generally required are the property tax value notice, land register extract, site plan, building plans, as well as evidence of value-reducing particularities such as contamination, renovation backlog, or an unfavorable property layout.

Yes, municipalities can set their own, higher assessment rate – the so-called Grundsteuer C (land tax C) – for ready-to-build but undeveloped plots, in order to counteract speculation with building land and encourage prompt development.

Under the federal model, additional factors such as the number of apartments and a tendentially lower income multiplier affect multi-family houses, meaning the land tax value per square meter is often more favorable than for single-family houses.

Incorrect information can lead to an inaccurate property tax value notice and should be corrected as quickly as possible by filing an objection or a correction notice with the tax office in order to avoid lasting financial disadvantages.

In the case of minor deviations, the appraisal costs often exceed the possible annual tax savings. An appraisal report is generally only worthwhile from a significant value difference of several tens of thousands of euros.

During the inspection, the valuer records the building structure, fittings, floor plan and any visible defects, takes photographs and measurements, and conducts a brief discussion about modernisations and special features. The inspection usually takes 45 to 90 minutes.

Useful documents include a land register extract, site plan, building plans, living area calculation, energy certificate, proof of modernisations, and, for rented properties, the lease agreement. The more complete the documentation, the faster and more precise the appraisal report.

For a market value appraisal suitable for court use, a personal inspection is generally indispensable. Only for simple condensed appraisal reports is an estimate occasionally made on the basis of existing documents and photographs without an on-site visit.

There is no statutory validity period; in practice, however, appraisal reports are generally considered current for six to twelve months. After that, an update should be carried out if significant market changes have occurred.

For rented properties, appraisal costs can often be deducted as income-related expenses in connection with income from renting and leasing. For privately owner-occupied properties, a tax deduction is generally not possible.

A real estate agent's price assessment is a non-binding, usually free market assessment to prepare for a sale. An appraisal report is a well-founded, comprehensible valuation recognized by courts and the tax office.

We are publicly appointed and sworn in by the Chamber of Industry and Commerce (IHK), have verifiable references, and prepare transparent appraisal reports structured in accordance with the ImmoWertV.

Existing loans are deducted from the determined market value, so that only the actual asset value – the so-called equity in the property – is included in the calculation of the equalization of accrued gains.

Yes, in principle each spouse can commission their own private appraisal report. In court proceedings, however, it is usually a court-appointed, neutral valuer who ultimately determines the relevant value.

The value of the property at the time of marriage is set as this partner's initial assets. Only the increase in value that occurred during the marriage is included in the equalization of accrued gains.

Value-enhancing modernizations during the marriage increase the final assets and thus, in principle, the equalizable accrued gains (Zugewinn) – regardless of which spouse predominantly bore the costs.

The initial assets comprise the property value on the date of marriage, and the final assets the value on the date the divorce petition was served. The difference between the two values constitutes the equalizable accrued gain.

Foreign properties are generally also included in the equalization of accrued gains. The valuation is usually carried out by a qualified local appraiser according to local standards, translated and prepared for the German proceedings.

The Matrimonial Property Register documents marital property regimes such as separation of property or modified community of accrued gains vis-à-vis third parties. For the real estate valuation itself, it does not provide any value data, but it does clarify whether a compensation claim exists at all.

A valuation appraisal report always refers to a fixed valuation date and loses relevance over time. For an ongoing divorce proceeding, it should generally not be older than six to twelve months.

For gift tax purposes, the tax office determines the value using the same standardized procedures as for an inheritance (§§ 182 et seq. BewG, German Valuation Act). Here too, a lower proven market value can reduce the tax burden.

The personal tax allowances depend on the degree of relationship: spouses receive €500,000, children €400,000, and grandchildren €200,000, each renewable every ten years. For non-relatives, only an allowance of €20,000 applies.

The value is generally determined uniformly for the entire property, regardless of the number of heirs. Each co-heir can then be allocated a proportional share of the total value determined, based on their inheritance quota.

If co-heirs cannot reach an agreement, a neutral appraisal commissioned jointly by all parties is usually helpful. If the dispute continues, any co-heir may apply for a partition auction at the competent local court.

A retained right of usufruct significantly reduces the taxable value of the gift, as its capitalized value is deducted from the determined property value. The amount and duration of the usufruct depend on the age and life expectancy of the beneficiary.

A registered right of residence significantly reduces the market value, as it considerably restricts the owner's rights of use and disposal. The reduction in value roughly corresponds to the capitalized value of the rental income foregone over the expected period of use.

There is no legally fixed deadline for preparing the appraisal report; however, the proof should be submitted within the one-month objection period against the assessment notice or before it becomes final and binding.

Rented residential properties benefit from an inheritance tax valuation deduction of ten percent on the determined value (Section 13d ErbStG), provided they are rented for residential purposes and do not belong to business assets.

The inheritance tax value is determined automatically by the tax office using standardized procedures under the German Valuation Act (Bewertungsgesetz) and serves solely for tax calculation purposes. The market value, on the other hand, reflects the individually determined price actually achievable on the market.

In the case of a transfer against maintenance benefits such as a life annuity or care obligation, the value of the agreed consideration is compared against the value of the property. Only the gratuitous portion is subject to gift tax.

A significant backlog of renovation needs can be asserted as a value-reducing factor through an appraisal report and can often significantly correct downward the value determined by the tax office on a flat-rate basis.

In the event of inheritance, undeveloped plots of land are generally valued based on the current standard land values (Bodenrichtwerte) multiplied by the plot area. Individual particularities such as shape or state of development can additionally be taken into account by means of an appraisal report.

Typically required are: a current land register extract, site plan, building plans, living area calculation, an extract from the register of building encumbrances, property tax and inheritance tax assessments, and – if available – evidence of modernizations and the condition as of the date of death.

Yes, a retrospective valuation as of the date of death is generally still possible even years later, provided sufficient historical documents and comparative data are available to reconstruct the conditions at that time.

A chain gift makes use of the tax allowances of several family members through successive transfers. It is only recognised for tax purposes if the intermediate recipient actually retains their own scope of decision over the property.

The date generally decisive for the final assets is the date the divorce petition is served (commencement of litigation). For the initial assets, however, the date of marriage applies.

There are three common approaches: sale and division of proceeds, takeover by one partner in exchange for payment to the other, or – if no agreement is reached – a court-ordered partition auction.

If the partner wishing to take over the property cannot finance the payout, the usual options remaining are to sell the property on the open market or, as a last resort, a court-ordered partition auction.

A prenuptial agreement can fully or partially exclude or modify the statutory equalization of accrued gains (Zugewinnausgleich). If separation of property has been agreed, the equalization of accrued gains for the property is entirely eliminated, regardless of its increase in value.

The partition auction is a court-ordered forced sale procedure used to convert jointly owned property into money when co-owners – for example after a divorce – cannot agree on how to dispose of it.

Owner-occupied properties are generally valued using the sales comparison approach or cost approach, since no rental income exists in this case. The condition and market value as of the relevant valuation date are decisive.

Yes, rented properties are typically valued using the income approach, since the achievable rental income is the determining factor for value, whereas the sales comparison approach or cost approach is applied for owner-occupied properties.

Only the increase in value of a property achieved during the marriage is included in the equalization of accrued gains. Increases in value that already existed before the marriage remain with the respective owner and are not taken into account.

The market value is determined in accordance with the German Real Estate Valuation Ordinance (ImmoWertV) using one of three standardized methods: the sales comparison approach, the income approach, or the cost approach. Which method is applied depends on the type of property, its use, and the available data.

The market value is an objectively determined, expert-substantiated value pursuant to § 194 BauGB (German Building Code). The purchase price is the price actually negotiated between two parties, which can deviate depending on negotiating skill, market conditions at the time of sale, and individual motives.

The standard land value is an average location value per square meter of undeveloped building land, published annually by the expert committee (Gutachterausschuss). It forms the basis for land value determination and thus a key component of the market value.

Value-reducing factors include, among others, a backlog of renovations, outdated building technology, an unfavorable floor plan layout, noise or odor pollution, third-party rights such as rights of residence, and poor energy efficiency. We take these factors into account through deductions in the valuation process.

There is no fixed deadline – however, an existing appraisal report should be updated at the latest in the event of significant market changes, major structural work, or if it is more than one to two years old.

The mortgage lending value is determined by banks conservatively and independently of short-term market fluctuations, in order to secure the credit risk. It is usually 10 to 20 percent below the market value, which reflects the realistically achievable market price.

Let properties are usually valued using the income approach and, due to limited owner-occupation potential, often achieve a lower market value than a comparable vacant property – particularly in the case of long-term leases below market level.

In the sales comparison approach, the value of a property is derived from actual purchase prices achieved for comparable, already sold properties. It is particularly suitable for condominiums and single-family houses with sufficient comparable data.

The income approach determines the value of a property based on the sustainably achievable rental income less operating costs, capitalized using a land interest rate (Liegenschaftszinssatz). It is used primarily for let multi-family houses and commercial properties.

The cost approach determines the value based on the building's construction costs, less depreciation for age, plus the land value. It is applied when there are insufficient comparable prices or rental income available, for example in the case of individually used single- and two-family homes.

In the case of a heritable building right (Erbbaurecht), the building is valued separately from the land, since the holder of the heritable building right does not acquire ownership of the land. The remaining term, the ground rent (Erbbauzins), and reversion (Heimfall) provisions significantly influence the value.

Energy efficiency is becoming increasingly important in valuation: a poor energy standard leads to discounts due to foreseeable renovation costs, while a high energy standard or a current energy performance certificate can have a value-enhancing effect.

The micro-location – i.e. the immediate surroundings of a property – often has a stronger impact on value than the general city location. Factors such as neighboring buildings, noise, view, or proximity to infrastructure are decisive.

The standard land interest rate (Liegenschaftszinssatz) describes the market-standard rate of return on the capital tied up in the land and is derived by the expert committees (Gutachterausschuss) from actual sales transactions. It is a key input variable in the income approach.

Yes, a retrospective valuation is possible and is often even necessary in cases of inheritance, divorce, or tax matters. The valuer reconstructs the market conditions and the structural condition as of the respective reference date.

Heritage protection has an ambivalent effect: imposed renovation obligations and restricted conversion options often reduce value, while tax depreciation benefits and the special character of some properties can increase value.

The property tax value and the market value are two independent value figures with different purposes: the property tax value is determined on a standardized basis in accordance with the Valuation Act (Bewertungsgesetz) for property tax from 2025 onwards, while the market value reflects the price actually achievable on the market. Both values can differ considerably from one another.

A complete market value appraisal typically costs between 0.5% and 1.5% of the property value, depending on the type of property and purpose, but often at least 800–1,500 euros for single-family homes. Condensed appraisal reports are cheaper, but often carry no evidentiary weight in court or with the tax office.

As a general rule, whoever commissions the appraisal report bears the costs. In a court case concerning equalization of accrued gains or division of assets, the court may also apportion the costs between both parties or assign them to the party that loses the case.

For inheritance tax purposes, the tax office determines the property value automatically using a standardized procedure (sales comparison, income, or cost approach pursuant to § 182 et seq. BewG). This value is often higher than the actual market value – an independent appraisal report can correct it by providing proof of a lower fair market value (§ 198 BewG).

Market value (Verkehrswert) and market value (Marktwert) are legally synonymous – both refer to the price that could be achieved for a property in the ordinary course of business. The term "Verkehrswert" is legally defined in § 194 BauGB, while "Marktwert" is the internationally common technical term with the same meaning.