If someone has asked you to serve as executor, or you have been appointed personal representative of an estate, there is a good chance a house is part of it. Sooner or later someone will ask what that house was worth. Not today, but on the day the owner died. That is the question a date-of-death appraisal answers, and it sits at the center of most estate and probate appraisal work.
This guide covers what a date-of-death appraisal is, when you need one, why the date matters so much, and what to have ready. It is written for the executor, not the attorney, but it is worth sharing with your attorney too.
What a date-of-death appraisal is
A date-of-death appraisal is a written opinion of the market value of a property as of the day the owner passed away. The appraiser inspects the home today, but the value is set as of that earlier date, using sales and market conditions from around that time.
Appraisers call this a retrospective appraisal, because the effective date is in the past. It is the same concept used in a divorce, where the court may care about the value on a specific date rather than today. We wrote about that in how home appraisals work in an Oklahoma divorce.
A proper date-of-death appraisal is completed by a licensed or certified appraiser, follows the Uniform Standards of Professional Appraisal Practice (USPAP), and clearly states the effective date. That last part matters more than people expect.
When an executor needs one
There are three main reasons an estate needs a date-of-death value on real estate.
Probate is the first. When an estate goes through probate in Oklahoma, the personal representative is generally required to file an inventory and appraisement listing the estate's assets and what they were worth. The house is often the largest item on that list. Your attorney will tell you exactly what the court needs and when it is due.
The second is the stepped-up tax basis, and it is the one families tend not to know about until a CPA asks. When someone inherits a home, their tax basis in that home generally becomes its fair market value on the date of death, not what the original owner paid for it decades ago. If the heirs later sell, capital gains are calculated from that stepped-up number. A credible, documented date-of-death value is what supports it. Without one, heirs can end up guessing at their basis when it is time to file taxes on the sale. Talk to your CPA about how this applies to your situation.
The third is plain fairness. If one sibling wants to keep the house and the others want their share in cash, everyone needs a number they can trust. An independent appraisal takes the guesswork, and a lot of the tension, out of that conversation.
On the tax side, it also helps to know what usually does not apply. Oklahoma does not have its own estate tax or inheritance tax, and most estates fall well under the federal estate tax exemption. For most families, the date-of-death appraisal is about probate, basis, and fairness, not about paying estate tax.
Why the date matters
Here is the part that trips people up. The value as of the date of death and the value today can be very different numbers.
Say the home sat empty for eight months while the estate was sorted out. The yard got overgrown, a pipe froze over the winter, and the market shifted. If you appraise it as of today, you are valuing a different property in a different market. A date-of-death appraisal values the home as it was, using sales from around that date.
That is why the effective date has to be right in the report, and why an online estimate pulled today does not help. If you are not sure which date you need, ask your attorney before you order the appraisal. Some situations call for a different effective date, and the appraiser needs to know which one up front.
It also helps to get the appraisal done sooner rather than later. The home does not need to be in perfect shape, but the closer we are to the date of death, the easier it is to document what the house was like at the time. If the house has already been cleaned out, renovated, or sold, we can still do it. We just need more information from you.
If you are handling an estate right now and are not sure where to start, call us at (918) 417-1581. We can talk through what your attorney is asking for and what the appraisal needs to cover.
What to have ready
You can make the appraisal faster and more accurate with a little prep.
The date of death. Confirm it with your attorney, along with any other effective date they need.
Access to the property. We still inspect and measure the home in person, even for a past date.
Changes since the date of death. Repairs, clean-out, damage, anything removed or replaced. Photos from around that time are very helpful if the family has them.
The basics. Legal description or address, any survey, and anything you know about updates the owner made, such as a roof, HVAC, or remodel, and roughly when.
Who will use the report. The estate's attorney, the court, the CPA, the heirs. We list the intended users in the report so it is written for the right audience.
What happens after the appraisal
Once you have the report, your attorney can use it for the inventory, your CPA can use it to support the basis, and the family has a shared number for any buyout conversations.
If the estate plans to sell the house, the date-of-death appraisal is not the same as a listing price. The market may have moved, and the house may have changed. Some executors also order a pre-listing appraisal as of today before listing, so the sale price is set on current data. If the owner is still living and the family is planning ahead, our post on why estate planning needs a property appraiser covers that side.
Frequently asked questions
What is a date-of-death appraisal?
It is an appraisal that estimates a property's market value as of the date the owner died, rather than today. It is a type of retrospective appraisal, and it is used for probate, for establishing the heirs' tax basis, and for dividing an estate fairly.
Can you appraise a house for a date in the past?
Yes. The appraiser inspects the property now but analyzes sales and market conditions from around the effective date, and accounts for any changes to the property since then. The report clearly states the past effective date.
Do I need a date-of-death appraisal if the house is not going through probate?
Often, yes. Even when a home passes outside of probate, such as through a trust or a transfer-on-death deed, the heirs still benefit from a documented date-of-death value to support their stepped-up tax basis if they sell. Ask your CPA or attorney.
Can the home be sold before the appraisal is done?
It can, but tell us. We can still complete a retrospective appraisal, and the sale itself becomes useful information, but we will need details about the property's condition at the date of death.
Is a county assessed value good enough for probate?
Usually not. County assessed values are set for taxation and are often not current market value. An appraisal from a licensed or certified appraiser is what attorneys and CPAs typically rely on.
Settle the house with a number everyone can trust
Settling an estate is hard enough without arguing over what the house was worth. We are an independent appraiser, not connected to any buyer, agent, or heir, and we write reports that hold up for the attorney, the CPA, and the family.
Call (918) 417-1581 or reach out here with the property address and the date of death, and we will take it from there. You can also see the full range of what we do on our home appraisal page.
