Valuation in Inheritance Disputes: What the Courts Decide

If there is a disagreement within a community of heirs in Erlangen regarding the value of an inherited property, the matter often ends up before the probate court or the regional court. The court then appoints a publicly appointed and sworn expert who prepares a market value appraisal in accordance with the rules of the Real Estate Valuation Ordinance. This appraisal is legally binding-for the settlement of the community of heirs, for claims to a compulsory share under Sections 2303 et seq. of the German Civil Code (BGB), and for the tax valuation of the estate under the Valuation Act.

ImmoWertV 2021: The Regulatory Framework for Judicial Appraisals

The Real Estate Valuation Ordinance (ImmoWertV) in its current 2021 version is the binding regulatory framework for determining market values (fair market values) under § 194 of the German Building Code (BauGB). It defines the three permissible valuation methods and specifies when each method is appropriately applicable. Court-appointed experts are required to work in accordance with the ImmoWertV-deviating methods or valuation standards are not recognized in court.

The ImmoWertV 2021 has introduced methodological adjustments compared to the previous version from 2010: The determination of real value has been modernized and adjusted to current standard construction costs; the property interest rates for the income approach have been readjusted to reflect changed market conditions; the requirements for market adjustment have been clarified, with clear reference to market adjustment factors from the purchase price database of the expert committees.

The expert committees-in the Nuremberg metropolitan region, there are separate committees for Nuremberg, Fürth, Erlangen/Erlangen-Höchstadt, and the rural districts-maintain the purchase price database from which market adjustment factors, property interest rates, and standard land values are derived. For Erlangen, the appraisal committee at the Erlangen-Höchstadt District Office is responsible; it publishes an annual real estate market report.

The Bavarian Justice Portal (www.gerichtsentscheidungen.justiz.de) contains judgments and decisions on probate matters in which judicial real estate appraisals play a role. For Erlangen, the Erlangen Local Court serves as the probate court.

Three Methods: When to Use Which Method

The choice of valuation method has a significant impact on the outcome of the valuation-and thus on the course of an inheritance dispute.

Method	Typical Application	Primary Data Source	Erlangen-Specific
Comparative Market Approach	Condos, townhouses, single-family homes with ample comparative data	Purchase price database of the Appraisal Committee	Well-suited due to active collection of purchase prices in Erlangen
Income Approach	Rented multi-family homes, commercial buildings, mixed-use properties	Rent index, property interest rates	Relevant key figures from IVD Erlangen
Cost Approach	Special-purpose properties, limited comparative data, single-family homes in outlying areas	Standard construction costs (NHK 2025), market adjustment factor	Frequently used for existing owner-occupied homes outside Erlangen’s city center

Source: ImmoWertV 2021, Erlangen/Erlangen-Höchstadt Appraisal Committee, Land Market Report 2025, IVD Market Report Q1 2026.

In Erlangen, which has consistently high demand for residential real estate due to the Siemens Healthineers Campus and Friedrich-Alexander University, sufficient purchase price data is available for the comparative value method. For condominiums and townhouses in central Erlangen locations, the comparative value method is the preferred tool of court-appointed experts. For single-family homes in outlying districts or special locations (e.g., on Erlangen’s Burgberg), the cost approach is used, supplemented by market adjustment factors from the purchase price database.

The income approach is used for rented multi-family homes. Erlangen has an active rental market with clearly measurable rental prices (IVD Market Report Q1 2026: €11-18/m² for residential space in central locations). The property interest rates for Erlangen are published by the Erlangen/Erlangen-Höchstadt Appraisal Committee and form the basis for the income approach.

Practice: The Complete Process of an Inheritance Dispute Appraisal

A judicial real estate appraisal in an inheritance dispute follows a defined procedure regulated by the Code of Civil Procedure (ZPO §§ 402 ff.) and the Family Procedure Act (FamFG, applicable in estate matters).

Appointment of an expert via an order for evidence: The court issues an order for evidence and appoints an expert. In Bavaria, publicly appointed and sworn experts from the lists of the Chamber of Industry and Commerce are preferred. The parties may raise objections to the expert (motion for recusal) provided there are specific grounds. The costs are provisionally advanced by the party filing the motion as court costs.

Review of files, collection of documents, and site visit: The appraiser receives the parties’ documents and the court files, reviews the land register, the real estate cadastre, and all available documents, and conducts an on-site inspection. During the on-site inspection, they inspect the property, take photographs, and prepare a condition report. Both parties may be present during the on-site inspection-which often leads to a tense atmosphere. The appraiser is obligated to record all relevant information impartially.

> The valuation tool from leadmarkt.ch provides an initial estimate of the market value of your property in Erlangen-data-driven and ready in just a few minutes.

Preparation of the Appraisal Report: The appraiser prepares the written market value appraisal report. In accordance with the ImmoWertV, it must fully document all methods used, identify the underlying market data and comparable properties, and transparently derive the result. A court appraisal report typically ranges from 30 to 80 pages, and may be longer for complex properties.

Statement and Supplementary Report: Each party receives the report and may submit a written statement. They may ask questions and point out errors or omissions. The court may request that the appraiser attend an oral hearing or submit a written supplementary report. This step is particularly common in inheritance disputes, as heirs often have differing views on value and each party attempts to influence the appraiser in their favor.

Common Points of Dispute in Court Appraisals in Erlangen

In the practice of Erlangen probate proceedings, certain points of dispute regarding real estate appraisals are regularly observed.

Market adjustment factor in the cost approach: The market adjustment factor represents the greatest margin of discretion in the cost approach. It accounts for the fact that the cost value (construction costs) often does not correspond to the actual market value. An appraiser can arrive at significantly different results for identical building data by applying different market adjustment factors. Heirs frequently dispute the appropriate factor for the specific location.

Valuation Date Principle and Backdating: The market value always applies as of the valuation date-for inheritance tax purposes, this is the date of the decedent’s death (Section 11 ErbStG). If a significant amount of time has elapsed between the death and the appraisal engagement and the market has changed, backdating to the valuation date is methodologically complex and prone to dispute. Especially in Erlangen, where real estate prices have risen in recent years and then stagnated in some cases, the valuation date can significantly influence the result.

Condition Assessment and Age-Related Depreciation: The structural condition of the building at the time of valuation is factored into the result through age-related depreciation. Heirs who are familiar with the property and have maintained it often perceive it to be in better condition than the appraiser determines during the on-site inspection. Conversely, heirs seeking the lowest possible valuation (e.g., to minimize the equalization payment) may point out damage and defects that the appraiser considers less significant.

Local Nuance: Erlangen and the Siemens Campus

Erlangen is a particularly stable real estate market in the Nuremberg metropolitan region, characterized by Siemens Healthineers as a global corporation and the Friedrich-Alexander University with approximately 40,000 students. This economic structure ensures consistently high demand for residential real estate-particularly in the areas around Campus South and downtown Erlangen.

According to the Appraisal Committee’s 2025 Real Estate Market Report, purchase prices for single-family homes in Erlangen ranged from €4,200 to €6,500 per square meter of living space-a level that turns inheritance disputes over Erlangen real estate into cases involving high stakes. For a single-family home valued at €750,000 with three heirs, a valuation difference of just 10 percent can result in a discrepancy of €25,000 per heir-enough to warrant litigation.

The quality of the purchase price database maintained by the Erlangen Appraisal Committee is an advantage in court appraisals due to the high volume of transactions in the city: comparable values are readily available, which makes the comparative value method more precise and limits the discretion of appraisers. For heirs who wish to obtain their own assessment prior to an expert appointment process, some Erlangen-based appraisal firms offer a short-form appraisal option (so-called real estate valuation without a market value appraisal) for 400 to 800 euros-this value is not admissible in court but is well-suited as a basis for internal negotiations within the community of heirs.

Alternatives to Court Proceedings: Reaching an Agreement Before a Dispute

A court-ordered appraisal is rarely the first and often the most expensive way to determine a property’s value in an inheritance dispute. In Erlangen, where property values are high and the amounts in dispute are correspondingly substantial, an early out-of-court settlement is almost always more cost-effective than court proceedings. In practice, experienced notaries and mediation experts in Erlangen’s probate proceedings first recommend an out-of-court settlement based on a private market value appraisal prepared by an expert jointly commissioned by all heirs. The costs are the same as for a court-ordered appraisal, but the process is faster and the results are more readily accepted by all parties.

Another option for inheritance disputes is inheritance mediation: In the Nuremberg metropolitan region, there are certified mediators specializing in estate matters who facilitate a structured settlement process. The cost of mediation typically ranges from 200 to 500 euros per hour and is generally shared by all parties involved. A complete mediation process involving 6 to 12 hours of sessions costs 1,500 to 5,000 euros-significantly less than contentious litigation with expert witness fees and attorney’s fees on both sides. Ideally, an out-of-court agreement on the property value is reached, which is notarized and provides legal certainty for all parties involved.

Only when out-of-court avenues have failed is the court appraisal under the ImmoWertV the final, binding solution. The costs of the proceedings-appraiser fees, court costs, and, if applicable, attorney’s fees-can total between 15,000 and 25,000 euros for a dispute value of 500,000 euros, which ultimately reduces the inheritance.

Conclusion for Heirs in Erlangen

Judicial real estate appraisals in inheritance disputes are costly but sometimes necessary procedures when a community of heirs cannot reach an agreement. The ImmoWertV 2021 ensures that the appraisal is prepared according to uniform standards. The appraiser’s expertise, the completeness of the submitted documents, and active participation in the proceedings-particularly the exercise of the right to comment with qualified objections-are crucial for a fair outcome.

Before an inheritance dispute escalates, it is worth obtaining an independent preliminary appraisal or an initial market value assessment. A well-founded, impartial valuation establishes a factual basis that removes emotion from the discussion and increases the willingness of all parties involved to reach an agreement. The valuation tool from leadmarkt.ch provides an initial data-driven estimate of the Erlangen market value, which can serve as a basis for discussion within the community of heirs and help prevent costly legal proceedings-all in just a few minutes, without an appointment.

---

Created by the my-home.de editorial team in collaboration with regional real estate analysts. Data as of: Q1/Q2 2026.