In Italy the home is much more than an asset: it's memory, security, identity. That's exactly why, when it comes to putting a number on it, emotions risk taking over. But to decide well — about an inheritance, a sale, a renovation or a mortgage — you need to clearly distinguish the different values of the same property.
What is the cadastral value? What matters to the taxman
The cadastral value is obtained by revaluing the property's cadastral income and multiplying it by coefficients set by law. It's the value used for many taxes and, above all, for calculating inheritance and gift taxes. It's almost always considerably lower than the real price: a house worth €250,000 on the market may have a cadastral value of €70,000–90,000. Ignoring it means overestimating the tax burden of passing it on.
What is the market value? What someone is willing to pay
This is the price the property could be sold for today. It depends on factors that change over time: location, state of repair, energy rating, local demand. Two identical flats in two different neighbourhoods can be worth twice as much one over the other. It's a value that's estimable but not guaranteed: only a completed sale truly certifies it.
Market value isn't what we think our home is worth, but what the market is willing to grant it.
The emotional value: legitimate, but not to be confused
The parents' house, the one where the children grew up, is worth "more" to those who lived in it. It's a legitimate feeling, but it's also the main source of mistaken expectations when selling or dividing among heirs. Recognising that emotional value isn't reflected in the price helps avoid unrealistic hopes and family tension.
The forgotten value: liquidity
There's a fourth aspect few people consider. A property may represent 80% of a family's wealth, but it's an illiquid asset: turning it into cash takes months, costs and the right market moment. A portfolio that is "all bricks" can look solid and turn out to be fragile precisely when liquidity is needed — for an unexpected expense, an inheritance or to help the children.
Why do you need to look at them together?
Good planning doesn't pick one value and ignore the others: it keeps them all in mind, each for its own purpose.
- The cadastral value, to estimate taxes.
- The market value, for real decisions.
- The emotional value, to manage family dynamics.
- Liquidity, to avoid being caught short.
Only then does the home go back to being what it should be: a strength of your wealth, not a constraint.
