5 things to let the appraiser know for a “Date of Death” appraisal

Dealing with logistics and paperwork after a loved one passes is not something anyone looks forward to doing, and ordering an appraisal is definitely a part of that. If you are in a situation where a loved one passed away, and you need an appraisal for the IRS (for tax purposes), here are five things to provide to the appraiser. I hope this is helpful.

5 things to provide for the appraiser:

  1. When was the date of death? (The appraiser will provide a valuation based on this date even though it’s a date in the past. This is called a retrospective appraisal).
  2. Who is your attorney or CPA? (In addition to the IRS, your CPA or attorney will usually be listed as a user of the appraisal report – unless that’s not relevant).
  3. Has anything changed about the house since the date of death? (The appraiser will be considering the condition of the property on the date of death, and therefore ignore any change in condition, upgrades or changes in the market since that date).
  4. When do you need the appraisal?
  5. When is a convenient time for the appraiser to do an inspection? (expect an interior and exterior inspection).

Date of death appraisal for IRS - Sacramento Appraisal Blog

Tips for hiring an appraiser: If you’re wondering how to hire a reliable appraiser, you may want to ask a trusted real estate agent for a referral or ask an appraiser the following questions to help gauge if the appraiser is familiar with your neighborhood or not.

  1. How long have you been an appraiser? Tell me about your experience.
  2. Are you familiar with my neighborhood market?
  3. How many appraisals have you done in my neighborhood over the past year?
  4. How familiar are you with “Date of Death” appraisals?
  5. How much do you charge?
  6. When can I expect the appraisal to be delivered?
  7. Will you deliver by mail or email?

Helpful Articles: You may also be interested to read What are “Date of Death” Appraisals? or When Should you order a Date of Death Appraisal? for further information. Pay close attention to the “Alternative Valuation Date” in the latter article in case you think the market has declined in value after six months of the death of the owner (This could help your situation if value is lower since the IRS allows you to use the lower value).

Do you have any questions or scenarios to share?

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Twitter, subscribe to posts by email or “like” my page on Facebook

When should you order a “date of death” appraisal?

When an estate has a transfer of ownership due to death or inheritance, a home owner will need to eventually hire a real estate appraiser in order to show the IRS what the reasonable worth of the estate is. So the owner or heir will obtain a “Date of Death” appraisal, which is an appraised value as of the date of the death of the deceased owner.  These appraisals are very commonly ordered within several months of the death of a loved one, but there are three things to consider before ordering the appraisal:

Date of Death Appraisal1) Timeline: If your loved one passed away recently and you need to file your taxes very soon, it makes good sense to obtain an appraisal in a timely manner so you can communicate well with the IRS. In other words, if your loved one passed away within six months before you file your taxes, it would likely be prudent to order the “Date of Death” (DOD) appraisal within that timeframe. This is the most common scenario I encounter for the bulk of my estate appraisal workload.

2) Alternative Valuation Date: I mentioned the Date of Death (DOD) appraisal already, but the IRS has also made allowances for a home owner to obtain an Alternative Valuation Date (AVD) six months after the date of death of the owner. Basically, if the market has declined in value after six months since the date of death, you can use the appraised value six months later to show your estate has decreased in value over time due to market circumstances. In this option you would need two appraisals, both a DOD and AVD. If the market has been hit hard, this could be a huge advantage for you for tax purposes. Granted, you would pay for two appraisals (use the same appaiser), but the savings in light of a large decline should far outweigh the cost of the appraisals.

3) CPA / Attorney Advice: Make sure to carefully weigh your options and the implications of using a DOD or AVD appraisal. You should definitely consult with your CPA and/or attorney to talk through which options would be most beneficial for you depending on your plans for the property and the implications for taxation based on using a DOD or AVD.

I am familiar with the estate planning appraisal process, IRS guidelines for appraisals, and I also run an estate appraisal website. Please contact me with any questions. I am always very glad to help answer questions and meet a need for property owners in what is often a difficult time of life.

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

Yes, you can still refer business to me despite HVCC

I run into real estate agents and loan officers in the Sacramento area who say, “I wish I could still refer you business, but I can’t anymore because of HVCC.” The common thought is that because the appraisal ordering process for loans has changed in recent years (basically appraisers cannot be hand-picked by loan officers or real estate agents for specific loans geared toward Fannie Mae), that our paths cannot cross for business any more. That’s not the case though, so I wanted to give you the skinny on how we can still connect for business. I know, this post seems very self-serving, but since I have this conversation at nearly every Chamber of Commerce or real estate related networking meeting, I figured it was definitely relevant blog fodder.

1. Estate Settlement / Probate Appraisals: When an estate has a transfer of ownership due to death or inheritance, it is very common for a real estate appraisal to be needed for tax purposes. Home owners and attorneys order these types of appraisals (www.SacramentoEstateSettlement.com).

2. Divorce Appraisals: I handle appraisals during the divorce / mediation process, and I run a website at www.SacramentoDivorceAppraisals.com.

3. Property Tax Appeals: Do you know anyone who is paying too much in property taxes? Send them to me. I cover multiple counties in the Greater Sacramento Region. I founded www.SacramentoTaxAppeals.com.

4. Second opinion of value: Sometimes a second opinion of value is needed. Maybe the buyer wants an outside opinion in place of the appraisal the lender ordered. Or maybe you as the real estate agent need some additional research to help the lender see true market value. Or maybe a transaction is heading south very quickly, and some value reinforcement is needed (research or full appraisal).

5. Appraisals during a short sale: Sometimes a bank will absolutely not budge to accept an offer lower than what they deem to be acceptable (even though their price is way too high), so the Listing Agent or home owner will hire me to do a full appraisal. I wrote a full post on this topic here.

6. Pre-listing appraisals:What is the current market doing? A pre-listing appraisal helps give some perspective for the home owner or agent.

7. Home owner wants an appraisal: I’m so grateful when local real estate professionals trust me with their clients’ needs. Sometimes a home owner will want to see an actual appraisal before listing their property. Or other times an all-cash buyer wants to make sure the cash purchase is consistent with market value. Or an owner needs an appraisal for some other reason, and their trusted agent will refer the owner to me.

8. Approval List: You can get me on the approved appraiser list for your favorite lender or attorney. I had a fantastic referral this year to a really great local company. They sent me quite a bit of work and they run an excellent shop. In fact, I sent the loan officer a referral this morning because he got me on their approved appraiser list (and he does a fantastic job).

9. Bankruptcy Appraisals: If a home owner needs an appraisal during the bankruptcy process, I can certainly help them with that. Read a full post here.

I sincerely vaule the relationships I have with local Realtors, real estate agents, and loan officers in the Sacramento area, and I appreciate the business we can send to one another. If you have any questions or a need for an appraisal or property tax consulting in the Sacramento area, give me a call at 916.595.3735, send me an email, or catch me on Facebook.

What does a good referral look like for you?

Sacramento Region Estate Settlement Appraisals: Who Can You Hire in Your Time of Need?

When an estate has a transfer of ownership due to death, it is very common for a real estate appraisal to be needed for tax and/or inheritance purposes. Sometimes an attorney or accountant will order an appraisal during such a circumstance or most typically have a family member or heir choose an appraiser for the job at hand.

Estate settlement or “Date of Death” appraisals are something we specialize in, and we work well with home owners in what can be a difficult time in life. Our goal is to provide a reliable appraisal in a timely manner and make the appraisal process as smooth as possible. We serve property owners and attorneys in the Greater Sacramento Region with the following counties: Sacramento, Placer, Yolo, El Dorado, San Joaquin, Stanislaus, Merced, Solano, Yuba and Sutter.

You can read a previous article HERE with additional information about the estate settlement appraisal process and view a short video HERE or below.

Contact Lundquist Appraisal Company at 916-595-3735, info@LundquistCompany.com or www.LundquistCompany.com for additional information or any questions. We hope to be in touch soon and to assist you if it is relevant for your needs. Thank you.

www.SacramentoAppraisalBlog.com Sacramento Region Estate Settlement Appraisals: Who Can You Hire in Your Time of Need?