Handling the affairs of a family member or loved one after their passing can involve many responsibilities at once. One of those responsibilities may be determining the value of real estate for an estate, trust, probate matter, or tax-related purpose.
For many families, this is unfamiliar territory. Understanding what a date-of-death appraisal is and what to expect from the process can make at least one part of estate administration a little easier.
A date-of-death appraisal is a real estate appraisal that develops an opinion of a property's value as of the date the property owner passed away, rather than its current value.
Because the effective date of the appraisal is in the past, this type of valuation is also known as a retrospective appraisal.
For example, if a family member passed away several months ago and an appraisal is requested today, the appraiser researches the property and relevant market conditions surrounding the required historical date. The objective is to develop a credible opinion of what the real property was worth at that point in time.
An appraisal may be requested for estate administration, probate, trust administration, tax planning or reporting, establishing a property's historical value, or assisting attorneys, accountants, executors, trustees, and family members with real estate held by an estate.
The appropriate valuation date and intended use can vary depending on the circumstances. An attorney, CPA, tax professional, or other qualified advisor can determine what valuation is required for a particular situation. The appraiser's role is to provide an independent and well-supported opinion of the property's real estate value.
Real estate markets change over time. Prices, inventory, interest rates, buyer demand, competing properties, and neighborhood conditions may be different today than they were on the required date of value.
For a retrospective appraisal, the appraiser researches market evidence relevant to the historical effective date and analyzes the property within the context of the market that existed at that time. This can be particularly important when months or years have passed since the date of death.
This is a common question. A home may have been renovated, repaired, emptied, damaged, or otherwise changed after the owner's passing. In some situations, the property may even have been sold before an appraisal was requested.
The appraiser can discuss what information may be helpful in understanding the property's condition as of the retrospective date. Depending on the assignment, useful information may include photographs, prior real estate listings, public records, permits, repair or renovation records, and other available documentation.
You do not need to know exactly what information is important before contacting an appraiser. We can explain what may be useful based on the circumstances of the property and the appraisal assignment.
Estate appraisal assignments may require coordination with an executor, trustee, family member, attorney, CPA, financial professional, or other authorized representative.
Our goal is to make the appraisal portion of the process as straightforward and clearly explained as possible while providing an independent, professionally supported real estate valuation.
West Valley Appraisal Services provides residential estate and date-of-death appraisal services throughout the Phoenix metropolitan area, including retrospective valuations of homes and other residential real estate.
We understand that the circumstances surrounding these assignments can be personal and sometimes difficult. We approach each estate appraisal with professionalism, patience, and respect for the families and professionals involved.
If you have been told that you need a real estate appraisal for an estate, probate, trust, or need to establish a property's value as of a prior date, you are welcome to contact us. You do not need to have all the answers before you call. Tell us what you have been asked to obtain, and we will help you understand the appraisal process and the information we will need.