„We'll sort it out later, for now everything stays as it is.“
I hear this phrase very often when it comes to inherited properties. At the same time, many owners from Nuremberg tell me that it is precisely this „later“ that eventually ends in pressure, disputes, time pressure or expensive wrong decisions.
An inherited property is rarely just a house or a flat. It is a memory, a responsibility, an asset and sometimes a burden - all at the same time. And that is precisely why it is important to keep a few key points in mind from the outset.
In this article, I will show you from my practice as a real estate agent in Nuremberg what owners should definitely bear in mind when it comes to inheritances, where typical pitfalls lie and what an orderly procedure looks like.
Emotion, family, money - why inheritances are so demanding
In the case of inheritances, three levels come together:
- Emotions: Memories of parents, childhood, shared experiences.
- Family: several participants with different ideas, life situations and interests.
- Finances: Assets, liabilities, taxes, running costs.
As a result, many decisions are not made calmly, but in the tension between grief, everyday stress and time pressure. This is precisely where mistakes are made that are difficult to correct later.
Typical situations that I experience:
- An inherited property stands empty for a long time because nobody wants to make a decision.
- Heirs have very different price expectations.
- One wants to sell, the other wants to rent, the third wants to „wait and see“.
- Important documents are missing, nobody knows exactly what is in the land register.
The clearer the overview, the calmer the discussions - internally within the family and externally with buyers.
Step 1: Gain an overview - what have I actually inherited?
Before you think about selling, renting or moving in yourself, you need to take stock.
Important questions at the beginning:
- Who is the real owner according to the certificate of inheritance or will?
- Is there a community of heirs and how many people belong to it?
- What entries are there in the land register (e.g. residential rights, usufruct, land charges)?
- What is the structural and technical condition of the property?
- Are there any current loans, charges or outstanding invoices?
- How high are the running costs (property tax, insurance, house fees, maintenance)?
This step sounds sober, but it is crucial: only when it is clear „what is on the table“ can you make sensible decisions.
Step 2: Clarify who actually wants what
In communities of heirs, I often find that everyone „roughly“ knows what they want - but no one says it clearly. Sooner or later, this leads to conflicts.
Typical starting positions:
- A person wants to sell quickly to pay off debts.
- Another person wants to let and earn rental income.
- Someone has a strong emotional attachment and wants to change as little as possible.
Only one thing helps here: clarity.
Helpful questions for the community of heirs:
- Does anyone need short-term liquidity?
- Is someone prepared to pay off others to take over the property alone?
- Are there emotional boundaries, for example „no way to an investor“?
- Is letting realistic - professionally, in terms of time and personally?
The more honestly these questions are answered, the better the subsequent steps can be organised.
Step 3: Know the realistic market value - not „neighbouring values“
When it comes to inheritances, I often hear things like: „The neighbour got X amount, so our house must be worth at least as much.“
The problem is that these values are generally neither verifiable nor truly comparable.
A well-founded property valuation is therefore particularly important. It provides the community of heirs with a common factual basis for discussion.
Important components of the evaluation:
- Market value: The realistically achievable market value under normal conditions.
- Standard land value: The average property value in the respective location - an important point of reference, but not the whole truth.
- Market analysis: Supply, demand, prices realised and typical marketing times in the relevant submarket, for example in a district of Nuremberg.
- Reference objects: Actual, comparable properties sold - not asking prices from adverts.
Depending on the property, the Asset value method: when substance and property are in the foreground, for example in the case of a detached house.
Or the Income capitalisation approach: if rental income plays a role, for example in the case of a rented apartment block.
The aim is not to find the highest figure, but an honestly justifiable one - one that all those involved can understand.
Step 4: Don't ignore speculation tax and other tax issues
Tax issues are tricky when it comes to inheritances - and are often suppressed due to uncertainty. This is important: I cannot and will not replace tax advice, but I know from experience which questions you should clarify with a tax advisor at an early stage.
Important keywords:
- Speculation tax: It can be relevant if a property is sold within certain periods after acquisition or owner-occupation. In the case of inheritances, this depends, among other things, on when the testator bought the property and how it was used.
- Inheritance tax: Here, too, it is worth checking at an early stage whether or not tax-free allowances have been exceeded.
My approach in practice: I point out these issues so that you can obtain targeted tax advice. In this way, you avoid making a decision whose tax consequences you only learn about later.
Step 5: Keep an eye on running costs and ancillary purchase costs
An inherited property costs money - even if it is empty. At the same time, the costs on the buyer's side also play a role.
Important on the seller side:
- Property tax
- Insurances
- Ongoing maintenance or mandatory measures
- House rent for condominiums
Relevant on the buyer's side - and therefore indirectly for your pricing:
- Incidental purchase costs: These include land transfer tax, notary and land registry costs and possibly estate agent commission. Buyers factor these costs into their calculations and adjust their maximum willingness to pay accordingly.
Especially if an inheritance is not decided quickly, ongoing costs can become a real burden. A clear plan helps here - instead of „we'll see“.
Step 6: Rent out, use yourself or sell - prepare the decision
With a clear picture of ownership, market value, costs and objectives, the key question is: What do we do with the property?
Typical options:
- Owner-occupation: One person from the community of heirs takes over the property - often in conjunction with compensation payments to the others.
- Letting: The property remains in joint ownership and is let - with all the opportunities and obligations.
- Sale: The property is sold and the proceeds are divided.
Important considerations:
- Does the property even fit the living situation of the person who wants to use it themselves?
- Is the community of heirs prepared to act as joint landlords in the long term?
- Is everyone in favour of a sale - and if so, under what conditions?
This is where an objective market value helps immensely. It ensures that discussions are less emotional and more factual.
Step 7: What an organised sales strategy looks like
Once the decision to sell has been made, the actual sales process begins. This is where I see my task as a real estate agent in Nuremberg particularly clearly: creating structure so that no one is „lost“ in the community of heirs.
Important elements of an organised strategy:
- Clear agreement within the community of heirs as to who is the contact person
- Clean preparation and examination of all documents (land register, plans, energy performance certificate, certificates, etc.)
- Sound property valuation based on market value, standard land value, market analysis and suitable procedures
- Preparation of an exposé with honest, complete information
- Structured viewings with pre-qualified interested parties
- Evaluation of offers not only by amount, but also by creditworthiness and schedule
- Coordination of the draft purchase agreement with the notary and all parties involved
- Orderly handover including protocol and meter readings
The clearer these steps are, the less room there is for misunderstandings and disputes - both internally and with interested parties.
Typical mistakes that I see again and again with inheritances
In my experience, there are some patterns that often repeat themselves:
- Decisions are postponed endlessly due to emotional overload.
- Individual heirs feel ignored or not taken seriously.
- Prices are set according to hearsay and not according to market analyses.
- Speculation tax and tax aspects are examined too late.
- The property is offered „quickly“ without a clear strategy.
- Documents are incomplete, which unsettles interested parties.
The good news is that almost all of these mistakes can be avoided if you take a structured approach at an early stage.
Checklist: What you should check for an inherited property
These questions will help you get started:
- Is it clear who the owner is according to the certificate of inheritance or will?
- Is the community of heirs fully and openly in dialogue about wishes and goals?
- Are an extract from the land register, plans, energy performance certificate and modernisation certificates available?
- Does everyone know the approximate market value of the property - and understand how it is calculated?
- Have speculation tax and other tax issues been discussed with a specialist?
- Are running costs known and realistically planned?
- Is there already a trend: use it yourself, rent it out or sell it?
- Is there a person who acts as an external contact so that the process does not become chaotic?
The more of these points are clarified, the easier the further path will be.
Conclusion: An inherited property needs clarity, not quick decisions
Inheritances are rarely just legal or financial transactions - they are always emotional as well.
This is precisely why it is important to provide structure at an early stage:
- Clear overview of property, documents and market value
- Honest exchange within the community of heirs
- Professional valuation with market value, standard land value, market analysis and suitable methods such as the asset value method or capitalised earnings value method
- Early consideration of speculation tax and ancillary purchase costs
- Organised sales strategy when the decision to sell is made
My aim as a real estate agent in Nuremberg is not to add pressure in such situations, but to bring calm to the process.
With clear figures, a structured roadmap and an open ear for what is behind the property.
