Estate/Date of Death Appraisals

With the sorrow of a lost loved one comes the burden of dealing with the affairs those named in a trust to execute.  Oftentimes, executors and/or trustees are required to handle transfer of all facets of the trusts’ financials up to and including real estate holdings. 

Estate administrators are often tasked to provide their CPA and/or court with an estimate of the estate’s “reasonable worth” at the time of passing of the decedent to establish a basis or Fair Market Value (FMV) as per IRS website.  This appraisal is known as a “Date of Death or DOD” appraisal.

What is a Date of Death Appraisal?

A "Date of Death Appraisal" is a retrospective (effective date equal to date of passing of a trustor) appraisal report which means it is a look back at market conditions at a time in the past and not a current market value appraisal report.  These reports are performed by a licensed or Certified Residential Real Estate Appraiser often 30-40 pages long yet the report does provide a single value opinion of fair market value as of the date of death of the trustor. 

Will my Date of Death Appraisal also feature a current market value?

Given the Date of Death appraisal is performed with an effective date in the past, this value opinion is only relevant as of that date therefore does not provide a current market value of the subject property.  In some instances, the trustee or executor would order two appraisal reports, on for the DOD (retrospective) and one for current market value in order to assist in decisions pertaining to liquidating or holding the subject property.  

How is a Date of Death Appraisal researched and performed?

The scope of these assignments on residential properties typically involve reviewing and researching market trends as of the date of death, citing comparable sales within approximately 6-12 months leading up to the effective date of the appraisal report/date of death.  The appraisal, typically 30-40 pages, will detail market conditions as of the effective date, a cutoff date (a date established by appraiser which serves as a deadline for research), comparable market analysis, and reconciliation of his/her opinion of fair market value of the subject property as of that date.

Does the Appraiser need to enter the residence for the inspection/observation?

• These appraisals can be performed with an interior (full inspection) or as exterior only/drive by appraisals. 
•  The full appraisal includes site walk/measurements/photos which helps the appraiser establish a basis for comparison to the comparable fair market sales in terms of living area, condition, vintage, physical attributes and externalities.    
• The drive-by appraisal is exactly as it sounds, the appraiser merely drives by the subject, takes a photo and relies on county tax records/multiple listing service data to assist in developing a summary of subject property physical attributes.  Oftentimes, the drive by appraisal is a less expensive option yet is the sole option when the home has already been sold and no interior access is possible.  

It is common in Date of Death Appraisals that the trustees/beneficiaries prefer a full appraisal to ensure the appraiser is able to collect pertinent subject information and data by measuring and photographing the home to ensure accuracy in analysis.  It is important for the trustees to be able to describe any improvements that were made post the date of death so these items are not considered in the retrospective date of death analysis.  One can also utilize a full appraisal report to determine the current fair market value of a property if a single beneficiary wishes to buy out other beneficiaries – these reports can be current or retrospective.

How long does it take to receive the appraisal report once I order?

Typically it takes 7-10 days from the date of order to the delivery of the appraisal report via email/pdf.  Once the order is received, we schedule the inspection, complete the appraisal report and deliver to our clients.  We pride ourselves at Bricker Appraisals LLC on being punctual on inspections and due dates and respect your busy schedule.  Please click here to order your appraisal today!

Richard E Bricker has performed over 700 residential appraisals throughout Greater Sacramento and the Bay Area in past 12 months of which approximately 10% were Date of Death.  Rich has performed Date of Death Valuations recently with effective dates(date of death) back to 2006. Rich has been a Certified Residential Appraiser since 04/19/2006 and has been performing these types of valuations since.  Rich prides himself on the development, analysis and reporting of each appraisal he is engaged and strives to provide clarity in his reconciliations which are driven by market analytics which results in reliable appraisal reports and results.  Rich will be happy to provide a sample appraisal upon request and offer clients the opportunity to meet in-person or virtually to review appraisal reports to help explain process and logic.

Please feel free to reach out to us with any questions you might have pertaining to Date of Death Appraisals at brickerappraisalsllc@gmail.com.

It is strongly recommended that executors consult with their legal counsel and/or CPA to determine if a Date of Death/Step Up Valuation is required for their specific situation.