Short answer: A date-of-death appraisal is a retrospective appraisal — a licensed appraiser determines what a home was worth on the day its owner died, not what it’s worth today. Families need that number for estate taxes, for the stepped-up tax basis heirs receive, and for dividing an estate fairly. Bill Abalos charges a flat $450 for a USPAP-compliant date-of-death appraisal, delivered within 3 days of the inspection, anywhere in Los Angeles, Riverside, San Bernardino, or Orange County.
Losing a family member is hard enough. The paperwork that follows shouldn’t make it harder — but one number causes more confusion than almost any other: what was the house worth when they passed away? Here’s what a date-of-death appraisal is, why it matters, and when you need one.
What exactly is a date-of-death appraisal?
It’s a formal, written opinion of a property’s fair market value as of a specific past date — the date of death. Because the valuation date is in the past, the appraiser works retrospectively: researching sales that closed around that date, market conditions at that time, and the property’s condition as of then. It’s the same USPAP-compliant process as a current appraisal, pointed backward in time.
This is different from a regular appraisal in one important way: nobody is buying or selling the house right now. The value exists to settle tax and estate questions, not to set a listing price.
Why families need one: estate taxes
When someone dies, the estate may owe federal estate tax, and the tax return (IRS Form 706) requires a defensible fair market value for every asset — including real estate. For deaths in 2026, the federal estate tax exemption is $15 million per person ($30 million for a married couple), so most estates owe no federal estate tax. But estates near or above that line must file, and the IRS can examine those values years later. A professional appraisal is what makes the number stand up.
California has no state estate or inheritance tax of its own, so for California families this is a federal question. One more reason to file even below the threshold: a surviving spouse can claim the deceased spouse’s unused exemption (called portability), but only by filing Form 706 — and that filing still needs a supportable value as of the date of death.
Why families need one: the stepped-up basis
This is the reason that affects the most families, even those nowhere near the estate tax line. When heirs inherit a home, their tax basis “steps up” to the home’s fair market value on the date of death. If the home was bought decades ago for $150,000 and was worth $850,000 when the owner died, the heirs’ basis is $850,000 — not $150,000.
That matters enormously when the heirs later sell. Without a documented date-of-death value, they may struggle to prove their basis and end up paying capital gains tax on decades of appreciation they never actually received. A $450 appraisal today can save tens of thousands in taxes at sale time. It’s one of the cheapest insurance policies an estate can buy.
Why families need one: settling the estate fairly
Estates rarely divide neatly. When one heir keeps the house and others take cash, or when a property is sold and proceeds are split, everyone needs to agree on what the house was worth. An independent appraisal from a licensed appraiser with no stake in the outcome removes the argument. Executors, trustees, attorneys, and CPAs all work from the same number.
Note: in a California probate case, the court appoints a probate referee to value assets for the official Inventory and Appraisal. An independent date-of-death appraisal doesn’t replace that — but it supports the tax filings, the stepped-up basis, and any distribution or sale decisions that follow, and it’s the document the IRS and the family’s CPA actually rely on.
What does the $450 flat fee cover?
When you hire Bill Abalos for a date-of-death appraisal, the flat $450 covers the whole job:
A physical inspection of the property — interior and exterior, measured and documented.
Retrospective comparable sales research — sales from around the date of death, adjusted for differences.
A written appraisal report that meets USPAP standards — a document the executor, the CPA, and the IRS can all follow.
One defensible number — the property’s fair market value as of the date of death.
No hourly billing. No add-on fees. $450 is the price, stated up front.
When should you order one?
Sooner is better. The further back the valuation date falls, the harder the research becomes — comparable sales records get older, and reconstructing the property’s condition at that time gets more difficult. If a Form 706 is involved, it’s due nine months after the date of death (with a six-month extension available), and your CPA can’t finish the return without the value. But even without a tax filing, ordering early protects the stepped-up basis while records and memories are fresh.
Executors can also elect an alternate valuation date — six months after death — but only if it reduces both the gross estate and the tax owed. That’s a decision for the estate’s CPA or attorney; the appraisal itself can be prepared for either date.
How long does a date-of-death appraisal take?
Bill delivers reports within 3 days of the inspection. If there’s a tax deadline or a probate date driving the schedule, say so up front so it can be planned around.
The bottom line
A date-of-death appraisal answers one question — what was this home worth on the day its owner died? — and that answer protects the estate on taxes, protects the heirs when they sell, and protects the family from arguments about money at the worst possible time. Licensed (AL026006), 28 years of experience, USPAP-compliant, flat $450, delivered in 3 days, across Los Angeles, Riverside, San Bernardino, and Orange County.
Thinking about settling an estate? Call or text 626-374-1076 or visit billabalos.com.
FAQ:
Q: What is a date-of-death appraisal?
A: It’s a retrospective appraisal that determines a property’s fair market value as of the date its owner died. It’s used for estate tax filings, the heirs’ stepped-up tax basis, and fair distribution of the estate. Bill Abalos charges a flat $450.
Q: Do I need a date-of-death appraisal if no estate tax is owed?
A: Very likely yes. Even estates below the $15 million federal exemption need the date-of-death value for the heirs’ stepped-up basis — the number that determines capital gains tax when they later sell. Without documentation, heirs may pay tax on appreciation they never received.
Q: How is a date-of-death appraisal different from a regular appraisal?
A: The valuation date. A regular appraisal values the home as of today; a date-of-death appraisal reconstructs its value as of a past date, using sales and market conditions from around that time. The standards and report format are the same.
Q: How much does a date-of-death appraisal cost?
A: Bill Abalos charges a flat $450, covering the inspection, retrospective comparable sales research, and a USPAP-compliant written report, delivered within 3 days of the inspection.
Q: Does a date-of-death appraisal replace the probate referee’s valuation in California?
A: No. In a California probate case, the court-appointed probate referee values assets for the official Inventory and Appraisal. An independent date-of-death appraisal supports the tax filings, the stepped-up basis, and distribution decisions — it’s the document the IRS and the family’s CPA rely on.