Every summer, estate attorneys receive calls from executors who are in the middle of a Greater Boston property sale and have just discovered that the estate never commissioned a date-of-death appraisal. The discovery happens at the worst possible time: when a buyer is under contract, the closing date is approaching, and the documentation gap suddenly threatens the timeline.

How the Discovery Happens

The executor listed the property in spring, accepted an offer, and proceeded toward closing. During the closing process, the estate's attorney asks for the date-of-death appraisal for the probate accounting, the estate tax return review, or the stepped-up basis documentation the estate's CPA has requested. There is no such document. The property passed without one being commissioned.

Now the options are limited. The estate can commission a retrospective appraisal using historical market data from the date of death, which is possible but more complex, less current-evidence-supported, and potentially more expensive than a contemporaneous appraisal would have been. Or the closing is delayed while the documentation is assembled.

What the Retrospective Appraisal Requires

A retrospective appraisal establishes the property's market value as of a specific date in the past. The appraiser must research the comparable sale data that was available as of that date, not today's market, but the market as it existed on or near the date of death. In Greater Boston, where prices have moved meaningfully over recent years, the retrospective methodology requires careful research of the historical market and may produce more uncertainty in the value conclusion than a contemporaneous appraisal would have.

The retrospective appraisal is a legitimate and USPAP-compliant approach. It is just not the first-choice option. The first choice is commissioning the appraisal near the date of death, before the summer closing season reveals the gap.

The Prevention Conversation Every Estate Attorney Should Have

Estate attorneys who represent executors of estates involving real property should make the date-of-death appraisal part of the immediate post-death checklist. Not a suggestion for after the probate filing. Not something to think about when the property is ready to list. A first-month action item.

The cost of commissioning the appraisal within the first 60 days of death is the same as commissioning it six months later, and it produces a stronger, more current-evidence-supported document. The cost of discovering the gap during a summer closing is a delayed transaction and an emergency retrospective appraisal under time pressure.

Ready to Get Started?

Whether you are a homeowner, estate attorney, realtor, CPA, or investor in Greater Boston, Adam Wiener and the Aladdin Appraisal team deliver USPAP-compliant appraisals you can rely on. Call today: (617) 517-3711 | info@aladdinappraisal.com | aladdinappraisal.com