When someone dies and real estate is part of the estate, the IRS doesn’t care what Zillow says. They need a credible opinion of market value as of the date of death — not today, not “around that time,” but that specific date.
That’s a date-of-death appraisal, and it’s one of the most important pieces of an estate filing that people don’t think about until it’s too late.
What Is a Date-of-Death Appraisal?
A date-of-death appraisal is a retrospective valuation of real property as of the exact date a person died. The appraiser uses comparable sales and market data from that specific period to form an opinion of value that is both credible and defensible. It reflects market conditions on that date, even if the report is being prepared months or years later. We’re pulling comps from the right window, adjusting for market shifts, and building a report that holds up if the IRS decides to take a closer look.
When You Need One
Estate tax filing (IRS Form 706). Estates that meet the federal filing threshold require a qualified appraisal of all real property. The IRS does not accept assessed value, Zestimates, or informal opinions. Form 706 requires an appraisal prepared by a qualified appraiser meeting specific standards.
Stepped-up basis. Even when no estate tax is owed, heirs receiving real property inherit it at fair market value as of the date of death — not what the decedent originally paid. Get that number wrong and the heirs overpay on capital gains when they eventually sell. Without a defensible appraisal, that basis is a guess.
Beneficiary disputes. When multiple heirs are involved and one wants to buy out the others, or when distribution of estate assets is contested, an independent appraisal is the only neutral ground. An attorney who brings a credible, designated appraiser to the table is better positioned than one relying on a listing agent’s opinion of value.
Trust administration and probate court. Many probate courts and trust instruments require formal appraisals during settlement. A qualified appraisal — not an estimate — satisfies that requirement.
How Far Back Can You Go?
Retrospective appraisals can reach back years. The death may have occurred in 2021, but the estate is just now being settled. An experienced appraiser can still form a credible opinion of value as of that historical date, using sales data, market reports, and records from that period. There is no hard cutoff, though the further back the date, the more documentation work is involved. If you have an estate with a date of death from several years ago, don’t assume an appraisal is no longer possible — it usually is.
What the IRS Expects from the Appraiser
Something a lot of people don’t realize: the IRS has specific requirements for who counts as a “qualified appraiser” on an estate filing. Under IRC Section 170(f)(11) and Treasury Regulation 1.170A-13, a qualified appraisal must be conducted by an appraiser with an appraisal designation from a recognized professional organization like the Appraisal Institute, relevant education and experience for the property type being valued, and independence from the estate — no executors, no beneficiaries, no family members signing the report.
The appraisal must be prepared in accordance with USPAP (Uniform Standards of Professional Appraisal Practice) and completed within the required timeframe relative to the filing.
Not every appraiser checks those boxes. Most residential appraisals are ordered through an AMC for a refi or purchase. Estate work is a different animal. It takes retrospective analysis, IRS-defensible methodology, and a clear understanding of what Form 706 actually demands. You want an appraiser who does this regularly, not one who figures it out from your client’s file.
Why Local Expertise Matters
An estate with a property in Cherry Hills Village, Park Hill, or the mountain communities around Boulder is not a commodity assignment. Market conditions in Denver Metro and Boulder fluctuate significantly by neighborhood, by property type, and by year. An appraiser who works this market daily — who knows the buyers, the inventory patterns, the micro-level dynamics that drive value — produces a more defensible appraisal than someone dispatched from outside the region by an AMC.
Attorneys and CPAs who have used AMC-assigned appraisers for estate work know the difference. The report arrives on time, the form is complete, and the analysis is thin. When the IRS asks questions or a beneficiary’s attorney pushes back, thin doesn’t hold.
A Direct Relationship
I’ve been appraising residential property in the Denver Metro and Boulder markets for 24 years. I hold the SRA designation from the Appraisal Institute — one of the most rigorous credentials in residential valuation — and serve on the Board of Directors for the Colorado Chapter. Estate appraisals are a core part of what we do at VolkHaus Appraisals.
We work directly with estate attorneys, trust officers, and CPAs — no AMC, no intermediary. If you handle estates and need a qualified appraiser for a date-of-death or retrospective valuation, reach out.
Charles E. Volk, SRA VolkHaus Appraisals Denver Metro & Boulder County, Colorado Estate Appraisals