What happens if several people have inherited a property?
Inherited property? Then there is now much to consider
If the deceased did not leave a will, intestate succession applies. And this often leads to the creation of a community of heirs. It becomes difficult if the estate contains only one property in which not all heirs want to or are able to live. The task now is to find a reasonable solution.
This is because a co-heir cannot sell the property, but he can sell his share of the inheritance (§2033 BGB). The remaining co-heirs then receive a right of first refusal. If the property is to be sold as a whole, all co-heirs must decide this unanimously (§2038 BGB). The larger the community of heirs, the more difficult it is to reach a consensus. Normally, one of the following possibilities then occurs:
Paying off the co-heirs: The future owner of the property must pay off the co-heirs. This requires a notarized contract.
Consensual sale: Many communities of heirs opt for this option because it minimizes the potential for conflict. A sale is easiest with a neutral broker as an objective advisor and expert.
Partition auction: Without unanimous agreement on the future use of the property, there is a risk of a partition auction. This can be requested by only one individual member. Unfortunately, in a partition auction, real estate is usually sold at prices far below the market value.
Important: The valuation – We determine the correct value of your property
We evaluate your property free of charge
You should know what the value of your inherited property is, because this is important in many ways. We will be happy to determine the value of your property free of charge for you!
An appraisal allows you to determine the tax amount can be determined more finely and, if necessary, you can claim value-reducing properties of your real estate. This is especially worthwhile for older homes. In addition, an appraisal is an important basis for the sale, the payment of the other heirs or the auction.
Valuation is a complex process because many different factors influence the value of a property to be determined. As a seller, there is a subconscious tendency to overestimate the value of the property. We therefore recommend that you consult an expert. We will be happy to do this for you.
Renting or selling an inherited property?
Let’s say you have inherited a property and decide not to occupy it yourself. Then the question soon arises, what now? Typically, the property is then soon rented or sold.
Which is the right decision always depends on the individual case and your personal situation. Renting is interesting if you would like to use the property yourself at a later date and/or associate a special emotional value with this property. You then receive rental income and, at best, can benefit from an increase in value.
Selling or renting an inherited property?
Interestingly, most heirs choose to sell the property. This is often because real estate always brings with it obligations. The wrong tenant can present you with major challenges and cause a lot of hassle. In addition, there are other factors that speak for a sale:
The value of the property is in danger of falling (depending mainly on the location and the associated population development). Let a professional advise you on this as well!
You would rather spend the money on something else. For example, for your dream property or paying off your own home loan.