How Much Does a Date of Death Appraisal Cost?

It’s the number one question from clients who need a date of death appraisal, and often the first thing they say after we answer the phone, but there isn’t one answer. 

Our report pricing is based on the report type and complexities of the property. Here’s why we ask for the property address and appraisal need, and no, it’s not to be nosy.

Why do we ask for the property address?

When we ask for the address, we search across databases to find the property. These databases provide us with pertinent information on the property, allowing us to check for a few different items that impact the cost of the report.

1. Is it a residential property? We’re licensed as residential appraisers, so we can only appraise single-family residences (which includes co-op or condo apartments), or multi-family homes up to four units. If the property is a commercial property, we can’t appraise it, but we can refer you to our partner, who is a fantastic commercial appraiser!
2. What is the property type? Single-family homes are less complex than multi-family homes. And in some regions that we cover, multi-family homes are very uncommon. A property’s uniqueness contributes to how complicated it will be to complete the report.
3. Is the property luxury or waterfront? Is the home very large? Is it on a large piece of land? Is the lot just undeveloped land? All these elements, plus a few other characteristics, can make a property more difficult to find accurate sales comparables. When it's more difficult to find sales comparables, the report takes more time to complete. 

And just like if you called a contractor to build you a deck; the larger the deck, the higher the cost -- as materials and labor charges would increase. The same elements apply for the cost of your report. If it’s going to take more time to appraise and finalize the report, the price of the report will reflect the extra expertise and time needed to prepare your date of death residential real estate appraisal report.

Why do we ask for your appraisal need?

Asking why you need the appraisal allows us to understand which report is going to be best for you. We offer restricted and full general-purpose reports for our estate clients, and these reports are not necessarily one-size-fits-all.

What is the same between the reports?

These two reports both include the appraiser’s inspection of the property, as well as the same valuation and sales comparables. Choosing a full report will not impact the opinion of value!

What’s different between the reports?

The restricted report is around 7-10 pages, while the full report is around 20-25. The restricted report summarizes information that the full report expands upon. The full report also has language that meets IRS and court requirements.

When should I get a full report, and when should I get a restricted report?

A restricted report is perfect for clients who are gathering information, completing a tax return, and working amicably among heirs. 

A full report is accepted by the IRS and Courts and will be required in the unlikely event that the estate is audited, as well as if there is any litigation. If you are filing for a gift tax or donation, the full report will also be needed for IRS compliance.

But for most clients, the restricted report will fulfill all the needs to close out a loved one’s estate, as well as make plans for the property. 

What if I don’t know which appraisal report I need?

For clients who order restricted reports, you can upgrade the report at a later date by paying the price difference between the reports when a full report is needed. This saves you from paying for information you don’t need “just in case.” If your needs change in the future, we use the data collected at the time of the original inspection and update the report. It prevents you from needing to pay for a completely new report. 

What happens if I need an appraisal report for a property that was sold to a third party?

This does happen. For a variety of factors relating to the estate, it’s not uncommon for an executor to be told they need a date-of-death appraisal until after a property has sold. We can complete a desktop appraisal in those circumstances, using information we gather from public records and the MLS listing. If you know that you’ll need a desktop appraisal, be sure to mention it at the top of the phone call so we can account for that when quoting the report.

As you can see, there are a lot of contributing factors that go into the cost of an appraisal. By giving us a bit of information we can give you an accurate quote in just a few minutes. 

Ready to order your date of death or estate appraisal report? Give us a call now!