
Help, no one wants to buy my inherited property!
The property has no central heating, neither the roof nor the walls are insulated to the latest standards, and the basement is damp: Even in high-demand regions, it is difficult to find a buyer for such a property, and even for personal use, the owner would face renovation costs in the five- to six-figure range.
How much is the inherited property still worth?
First of all, it is important that you estimate how much your property is worth in its current condition. Although the tax office also prepares a valuation report, this does not take into account the individual characteristics of the property. You should therefore contact a local real estate expert, such as a real estate agent, who will determine the value of your property, taking all special features into account. If the property is of little value, the inheritance tax will also be correspondingly low. Depending on your relationship to the deceased, it is even likely that you will not have to pay any inheritance tax at all.
Is it worth rejecting the inheritance?
If it turns out that the inheritance is likely to result in losses for you, you also have the option of disclaiming the inheritance within six weeks of becoming aware of the inheritance. However, you can only disclaim the entire inheritance and not just the property. If the inheritance also includes other valuable real estate or other valuables, this step is not recommended.
Renovate or demolish?
If you decide to sell the property, it is advisable to carefully consider whether it is worth renovating it first or whether you could get a better price by demolishing it and selling only the building plot. However, both options involve high costs before the sale and are therefore not feasible for everyone.
If you want to sell the property in its original condition, you should expect the sale to take a little longer than usual. Nevertheless, even poorly maintained buildings can still find buyers. Many people are looking for properties in need of renovation in order to upgrade them themselves or are willing to pay the demolition costs themselves for a property in a desirable location. In any case, it is important that you familiarize yourself with the legal framework for selling real estate. For example, you will always need an energy performance certificate. It is also not permitted to deliberately conceal defects in the property.
Since a property in need of renovation only appeals to a small target group, it makes sense not to try to sell it on your own, but to seek help from a local professional real estate agent. They not only know how to find the right buyer, they also have an eye for the legal aspects of the sale and know what minor renovations and repairs you can do to get more out of your property.
Have you inherited a property in need of renovation and need advice on your options or a valuation? Contact us now. We will advise you without obligation.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please have the facts of your specific case clarified by a lawyer and/or tax advisor.
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