When a loved one passes away, it’s common for executors to feel pressure to move quickly, especially when an inherited home needs to be sold. But listing a property before obtaining a retrospective appraisal is one of the most costly and legally risky mistakes an executor can make.
A retrospective appraisal determines the home’s fair market value as of the date of death. This valuation is essential for tax reporting, probate filings, financial transparency among heirs, and minimizing the risk of disputes. Without it, executors can face unexpected tax liabilities, incorrect capital gains calculations, and conflict within the family.
Why a Retrospective Appraisal Matters
1. Required for IRS and State Reporting
The IRS requires the fair market value of inherited real estate as of the decedent’s date of death. Listing the home without a retrospective appraisal can lead to inaccurate reporting, penalties, or a forced correction later, often after the property has been sold.
2. Establishes the Step-Up in Basis
The step-up in basis determines how much capital gains tax heirs may owe when selling the home. If the home sells for more than its established date-of-death value, capital gains tax may apply. Without a proper retrospective appraisal, the basis may be set incorrectly, resulting in thousands of dollars in avoidable taxes.
3. Prevents Family Disputes
Heirs often have different assumptions about a home’s value. A retrospective appraisal provides an unbiased, professionally documented opinion that removes speculation and protects the executor from accusations of unfair handling.
4. Protects Executors from Liability
Executors have a fiduciary duty to act in the best interest of the estate. Selling without a credible valuation opens the door to claims that the property was sold too low or mishandled.
5. Supports Pricing Decisions
Even when an executor believes the market value is obvious, retrospective appraisals uncover crucial details, conditions at the date of death, market trends at the time, legal improvements, and more that influence fair market value.
Conclusion
Executors carry a tremendous responsibility when overseeing an inherited home. Listing the property before obtaining a retrospective appraisal exposes the estate to tax errors, family conflict, inaccurate pricing, and legal risk. A credible retrospective appraisal ensures clarity, compliance, and protection for all parties involved.
Take Action Now
If you are the executor or personal representative, you are the one everyone is counting on to “get it right.” Listing the home before you have a solid date-of-death value can put you at risk with the IRS, the court, and even your own family.
We help executors across Eastern Massachusetts get a clear, defensible retrospective appraisal so they can settle the estate without second-guessing.
Here is the simple plan:
Schedule a call. Tell us about the property, the date of death, and where you are in the probate process.
We complete a retrospective appraisal. A certified appraiser inspects the property, researches the market as of the date of death, and prepares a written report.
You move forward with confidence. Use the report for IRS and Massachusetts filings, probate, and to set a fair list price when it is time to sell.
Every day you wait increases the chance of confusion, extra tax work, or conflict among heirs.
When you are ready, we are here to help.
Call 617-517-3711 or email info@aladdinappraisal.com to request a retrospective estate appraisal before you list the inherited home. Take this one step now so you can protect the estate, protect yourself, and close this chapter on solid ground.
