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Estate Appraisal

When someone dies owning real estate, somebody has to answer a deceptively hard question: what was that property worth? An estate appraisal is a formal opinion of fair market value prepared by a state-licensed appraiser, and it is usually the document that settles the question for the probate court, the IRS, and the heirs.

When you need one

• Probate. Probate courts expect real property in the estate inventory to carry a supportable value, and in many states a professional appraisal is the standard way to provide one (rules vary by state and county). The executor or administrator typically orders it.
• Stepped-up basis. Under federal tax law, the cost basis of inherited property is generally reset to its fair market value at the owner's date of death (IRC §1014). A defensible appraisal as of that date can save heirs significant capital-gains tax when they later sell. See our date of death appraisal page for how retrospective valuation works.
• Estate tax filings. Estates large enough to file a federal estate tax return (Form 706) must report real property at fair market value as of the date of death (or the elected alternate valuation date), and a professional appraisal is the standard way to support that number.
• Dividing the estate. When one heir keeps the house and others take cash or other assets, an independent appraisal gives everyone a neutral number to settle around.

Who orders it

The executor, administrator, or trustee usually hires the appraiser directly. This is a private (non-lender) assignment: you choose the appraiser, you receive the report. Estate attorneys often have appraisers they work with, but you are free to pick your own. Choose someone licensed in the state where the property sits; you can verify any appraiser's license on their state board's public lookup or the federal ASC National Registry.

What it costs

Consumer-direct single-family appraisals often land in the $300–$600 range, though fees vary widely by region and property, and estate work often prices higher when the effective date is retrospective and the sales research is heavier. Complex properties, large acreage, or multi-parcel estates cost more. Get the fee and turnaround time in writing before the appraiser starts.

What to expect

The appraiser inspects the property, researches comparable sales around the effective date (often the date of death, not the inspection date), and delivers a written report compliant with USPAP, the national appraisal standards set by The Appraisal Foundation that state-licensed appraisers must follow. For a date-of-death effective date months or years in the past, this is called a retrospective appraisal and is a recognized, ordinary assignment type.