To renovate or not to renovate before selling - that is the question!
You have inherited a house as a community of heirs and are now faced with a double challenge: firstly, you have to decide together with all the heirs what should be done with the house, and secondly, the question arises as to whether refurbishment is necessary and desired by all the heirs before the sale. In this article, we will help you to consider these two aspects and provide you with a sound basis for making a decision.
The situation
Imagine that you and your siblings have inherited a house that was built before 1997 and has only been poorly renovated for many years. Let's assume that you have jointly decided to sell the house.
But there is an important question to clarify here: Should the house be renovated before it is sold or not? This raises a number of considerations:
- What exactly does "renovation" mean for the inherited house? What costs could you face, and do all the heirs have sufficient financial resources for this?
- Where can you find support and expertise for the refurbishment?
- Does the location of the house play a role in the decision to renovate it or not before selling it?
- What happens if the achievable sale price after the renovation does not cover the total cost of the renovation plus the original market value of the unrenovated house? In this case, you as a community of heirs could be left with part of the refurbishment costs.
Obligation to renovate old houses?
An inherited house that is several decades old may be subject to refurbishment obligations prior to sale, depending on the applicable laws and regulations in the respective region. Energy modernisation and other refurbishment measures may need to be carried out in order to meet the required standards.
If you want to sell your house in Berlin or Brandenburg, it is very important to find out about the specific refurbishment requirements and regulations in your region. This will ensure that your home meets current standards and that no legal problems arise. To ensure a smooth sales process, we recommend that you find out about the relevant refurbishment obligations from local authorities or with the support of an expert. This way, you can be sure that your home meets the requirements and you can realise the best possible selling price.
Note: If you want to sell, rent out or give away a single-family home from January 2028, you will be subject to a EU Buildings Directive The energy efficiency class of the property must be at least D within 5 years through renovation.
