Date of Death appraisals, also known as retrospective appraisals are specific valuation reports completed for potentially several reasons. The most common reason is known as a step-up in basis. This means that the government / IRS needs to know the value of the property at the time of death so that they can calculate how much tax is owed when the property sells afterward. The benefit of getting a date of death appraisal is that the new calculated amount removes the appreciated amount that occurred during the owner’s life. The new calculated amount owed from the time of death to the sale of the property is called capital gains tax.

Another reason people request a date of death appraisal in NJ is because a sibling may be looking to buyout another sibling’s portion of the inheritance. Having an independent third party perform the market valuation is a fair way to obtain the amount of buyout.

We fully understand that it may be a difficult time to go through this process and want to convey clearly that we will provide full confidentiality, discretion and empathy. The information we obtain during the appraisal inspection will only be sent to you and / or the requested attorney or accountant. We will not post any of the information online nor will we solicit realtors or contractors to contact you. As independent third-party appraisers, we have no interest in the real estate appraised and have no benefit of the outcome. Our job is to provide a fair market value for our clients and intended users and no one else.

A date of death appraisal inspection is not far off from a standard appraisal inspection. Depending on how far back the date of death was, the appraiser will ask if any changes have occurred to the property since the death. If there were changes, the appraiser would remove them from the analysis as we are developing an opinion of value based on how the property was during that date.

The client does not have to do much to prep for the appraisal. If the client still has interior access to the property, the appraisal will perform an interior inspection. This includes measuring the house to calculate the square footage, taking both interior and exterior photos, notes on condition and quality and room count. Therefore, just making it easy for the appraiser to access the rooms and basement including the utility room would be helpful. The inspection is the shorter part and will likely take 20 minutes to an hour depending on the size of the property.

If we do not have access to house in the case that it perhaps has sold already, we can perform a retrospective appraisal based on an exterior inspection plus other information we gather. This is from the tax records, ideally an MLS listing and any notes from the client. An MLS listing is ideal because they often have interior photos, room count and other pertinent information.

We currently work with some of the best estate attorneys in NJ for date of death appraisals. Our residential appraisers have 25 years of experience and our commercial appraiser has over 30 years of experience. On the residential side, we are certified licensed which is the highest license for homes and our general certified appraiser on the commercial side has an MAI which is the highest designation. We have been approved in multiple counties and state level courts as expert witnesses. We have also presented to the Bar Association for attorneys, attended as experts on a panel, and presented to top realtors to inform them of the latest trends in appraising.

Aside from many attorney clients, we have been trusted by some of the top banks in the country to perform appraisals. These include Wells Fargo, Citigroup, Bank of America, JP Morgan Chase, US Bank, Guaranteed Rate, and TD Bank.

With over 10,000 appraisal reports completed, and many classroom hours including recent continuing education, we have developed strong analytical skills used to perform fair market valuation.

We provide date of death appraisals throughout Union, Essex, Morris, Somerset, Bergen, Middlesex, Monmouth, Ocean, Passaic and surrounding New Jersey counties. Here is a map to our coverage area.

Can a date of death appraisal be completed years later?

Yes. I have completed date of death appraisals as far back as 1986. It is certainly more challenging before the online MLS which started in the late 90’s. I worked with the tax assessor to obtain historical information.

Does the appraiser need to inspect the home? What if it already sold?

While it is ideal for the appraiser to inspect the home, a date of death appraisal can be completed without inspecting the home. Information from the MLS, tax records, exterior inspection and the homeowner can all be helpful.

Who usually orders a date of death appraisal?

The appraisal is usually ordered by either the estate attorney, executor or executrix, beneficiary, trustee or an affiliate who has power of attorney.

What if renovations were made after the owner's death?

The appraiser will ask about renovations during the inspection or initial phone call. Any renovations can use the hypothical condition that it did not exist at the time of death.

Why is a date of death appraisal important?

It establishes the property’s fair market value which helps attorneys and CPA’s with the estate administration. It also provides professional documentation for potential tax reporting if there is a step-up in basis. Lastly, it provides support for the valuation if it is ever questioned.

Date of Death

Appraisal

Estate Administration

Potential Tax Reporting

Sale or Transfer

If there has been some time since the date of death appraisal and you are in a position to sell in the near future, you can also read about a pre-listing appraisal.

If the appraised valuation is closer to the current date and it comes in lower than expected, it may be an opportunity to explore a tax appeal.

“I reached out to Evan from American Realty Appraisals to help with a challenging request for a date of death appraisal dating back a number of years. Evan was very responsive and gave me a fair price for the report and had it to me within the timeframe he estimated. He was very professional and did an excellent job on what was a difficult task. Highly recommend!”

- Liana R.