Inheriting a property can be both a meaningful and complex experience. Whether it’s a family home, rental property, or land, one of the most important steps you should take is getting a professional real estate appraisal. An appraisal provides an accurate, unbiased assessment of the property’s fair market value—information that’s essential for tax purposes, legal matters, equitable distribution, and future financial planning.
Establish the Date of Death Value
One of the key reasons to get an appraisal after inheriting a property is to establish the “date of death” value. This valuation reflects what the property was worth at the time the original owner passed away and can significantly impact your capital gains tax if you decide to sell the property later. Without an official appraisal, you may face difficulties calculating the correct tax basis, which could result in paying more in taxes than necessary.
You might be wondering if the local tax authority’s assessment of the property is sufficient. In most cases, it’s not. Property tax assessments are often outdated or based on mass appraisal methods, which don’t account for the condition, location, or features of your specific property. A certified appraisal is far more detailed and tailored, offering a true market value supported by comparable sales and up-to-date market data.
When hiring an appraiser, it’s important to choose a licensed professional who has experience with estate and probate appraisals. Look for someone who communicates clearly and can provide a thorough, legally defensible report that meets your needs.
Getting a property appraisal after inheritance isn’t just a formality—it’s a critical step in protecting your financial interests and ensuring you meet any legal, tax, or estate planning obligations. It provides clarity and peace of mind during a time when you may need it most.