TL;DR: A date of death appraisal values the home as it was on the date of death. If a storm damages the house after that, the damage isn't part of that value. Photos, repair invoices and claim records let me show the home's condition on the date that matters, and that protects the heirs' stepped-up basis.
Here's a situation I expect to see more of this winter. A parent passes away in the fall. The family is still sorting things out when a storm sends water through the roof, or a slope gives way behind the house. By the time anyone orders an appraisal, the home looks very different from the day the owner died.
What value goes in the report?
The value is fixed to the date of death
A date of death appraisal is retrospective. It answers one question: what was this property worth on that specific past date? The date is set by the estate, not by when I visit. Damage that happened after that date isn't part of that value.
That's why the timing matters for the family. The value as of the date of death is what usually sets the new cost basis for the heirs. That's the step-up in basis, and it affects capital gains tax when the home is sold. Undervaluing the home because of damage that came later can cost the heirs real money down the road.
How I reconstruct the home as it was
I still inspect the property as it is today. Then I work back to the condition on the date of death using:
Photos from before the damage. Family photos, listing photos, even phone pictures from a holiday visit.
Repair invoices and insurance claim records that date the damage and describe what changed.
Public records and permits.
Comparable sales from around the date of death, not from today's market.
The report states clearly that the property was valued as of the date of death, in the condition it was in then, and how that condition was established.
What families and their attorneys should do now
Document the condition as soon as you can. If there's any chance of damage this winter, photograph the home inside and out now.
Keep every repair invoice and claim record, and note the date of each event.
Order the appraisal sooner rather than later. The closer the inspection is to the date of death, the less there is to reconstruct.
Tell me what changed and when. It goes into the report so the value holds up if a CPA or the IRS asks.
The bottom line
A storm can change a house overnight. It doesn't change what the house was worth on the date of death. With good records, I can value the home as it was, and the heirs' tax basis reflects the right number. If you're handling an estate in Orange County, here's how we work with attorneys and CPAs.
Frequently Asked Questions
If the house was damaged after my parent died, will the appraisal be lower?
No. A date of death appraisal values the home as of the date of death. Damage after that date isn't part of that value, though I still document it.
What if there are no photos from before the damage?
I work from what's available: repair records, insurance claims, permits, public records and the comparable sales from that time. The more you have, the more precisely I can pin down the condition.
Does this also apply to a step-up in basis appraisal?
Yes. A step-up in basis is normally based on the value at the date of death, so the same retrospective approach applies.
Just Appraisals, Inc. provides independent, USPAP-compliant residential appraisals across Orange County, including San Clemente, Dana Point, the Lagunas, San Juan Capistrano, Irvine and Newport Beach. We specialize in date-of-death and estate valuations, divorce and litigation appraisals, and pre-listing and private-fee assignments for attorneys, agents, and homeowners. More about my background here.
Handling an estate where the home has changed since the date of death? Get in touch.