When a loved one passes away, managing their estate can feel overwhelming—especially when it involves real estate. One of the most common questions we hear at Real Valuation Services is:
“Do I need a property appraisal for an estate?”
The answer is often yes, and here’s why.
1. Determining Fair Market Value (FMV) at the Time of Death
Estate property appraisals are typically required to establish the fair market value of a home or other real estate on the date of the owner’s death. This value serves as a benchmark for tax purposes, asset division, and legal documentation.
2. IRS and Tax Reporting Requirements
If the estate is subject to federal or state estate taxes, the IRS requires an appraisal to substantiate the property’s value. A certified appraisal helps:
- Report accurate figures on estate tax returns
- Avoid future disputes with tax authorities
- Support a “step-up” in cost basis if the property is later sold by heirs
3. Equitable Distribution Among Heirs
If there are multiple beneficiaries, a professional appraisal ensures a fair and impartial valuation. This is critical when:
- Dividing the estate equally
- One heir wants to purchase the property from others
- The property is being sold and proceeds are split
4. Preparing for Sale or Transfer
Whether you’re listing the property for sale or transferring ownership to a family member, an appraisal gives you a clear, credible estimate of the property’s current worth—so you can make informed decisions.
5. Avoiding Conflict and Legal Disputes
An independent, third-party appraisal can help prevent disagreements between heirs or with other involved parties. With over 30 years of experience and 250,000+ appraisals completed, Real Valuation Services delivers accurate, professional reports you can trust.
Need an estate appraisal?
We’re here to help you navigate the process with clarity, accuracy, and compassion.
📞 Call us at 312-270-0500 or
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