In probate circumstances, retroactive appraisals are fairly common in estate settlement situations. A retroactive appraisal involves appraising a home based on a prior date, which is usually the date of death. In some cases, these real estate appraisals are often referred to as ‘date of death’ appraisals.
In the event a ‘date of death’ appraisal is required, an experienced appraiser will inspect the property. Including the land, building, and fixtures as is today. However, the valuation would be based on the market conditions on the date of death.
For example, if the homeowner died on January 1, 2017, and the appraisal was scheduled for June 1, 2017, the inspection would take place on June 1.
However, the research of the market, would be based on market conditions as of January 1, 2017. The retroactive appraisal report would be completed with an effective date of January 1, 2017.
Occasionally, an estate will request both a retroactive appraisal, and a ‘current value’ appraisal. This will help the trustee determine the current market value for purposes of sale or settlement between heirs. This may determine an acceptable selling price for the property, if necessary.