What Executors Need to Know About Date-of-Death Appraisals
A plain-English guide for executors, personal representatives, and attorneys handling Oregon estates. The pieces that matter, the mistakes that cost money, and the timeline you can actually plan around.
What is a date-of-death appraisal?
A date-of-death appraisal (sometimes called a retrospective appraisal) values a property as of a specific date in the past — usually the day the owner died. It's not a current-market appraisal. It's a legally-binding statement of what the property was worth at a moment in time, written by a qualified appraiser using only the comparable sales that were actually available then.
For Oregon estates, that valuation drives almost every dollar of tax treatment, every dollar of distribution among heirs, and every line on the probate inventory. Get the appraisal right and the estate closes cleanly. Get it wrong — or skip it — and you spend the next two years cleaning up.
Why it matters: the IRS step-up basis
When someone dies and a property passes to heirs, the IRS steps up the cost basis of that property to its fair-market value as of the date of death. That stepped-up basis becomes the heir's new starting point for capital-gains tax when they eventually sell.
Suppose mom bought the house in 1985 for $80,000. By the time she died in 2025, the house was worth $620,000. Without the step-up, her son inherits her original $80,000 basis — and if he sells next year for $640,000, he owes capital gains on $560,000 of appreciation. With the step-up to $620,000, he owes capital gains only on $20,000.
That step-up is real money. But the IRS doesn't take your word for the date-of-death value. They expect a qualified appraisal from a USPAP-compliant appraiser, written close to the date of death, with the documentation depth that survives audit follow-up. A Zillow estimate doesn't cut it. A real-estate agent's BPO doesn't cut it. The appraisal does.
When you need it (and when you don't)
You need a date-of-death appraisal when:
- You're settling an estate that includes real property
- You're claiming the IRS step-up basis (almost everyone)
- The estate is large enough to file Form 706 (federal estate tax)
- Heirs are dividing property or buying each other out
- The property will be sold and the basis matters for capital gains
- The IRS is asking — or might ask
You probably don't need one if the property is jointly owned with right of survivorship and the surviving owner has no plans to sell. Even then — most estate attorneys recommend the appraisal anyway, because circumstances change and it's much cheaper to get the report now than to reconstruct the date-of-death value years later.
What's actually inside the report
A USPAP-compliant date-of-death appraisal includes:
- Subject property analysis — full description of the property as it existed on the date of death, with photos and measurements
- Three to five comparable sales — recent sales of similar properties from before the date of death, not after
- Adjustment grid — line-item adjustments for differences in size, condition, lot, location, age, and features. Every adjustment supportable.
- Reconciled value — the appraiser's reasoned opinion of fair-market value as of the date of death
- Methodology disclosure — how the appraiser arrived at the value, what was considered, what was excluded
- Signed certification page — the legal anchor that makes the report admissible
Most reports run 25–40 pages. The bulk of the value isn't the number on the front page — it's the reasoning behind the number that can hold up under cross-examination or IRS audit follow-up.
Five mistakes that cost estates money
Most of the work I do for executors involves cleaning up — or working around — one of these five mistakes. They're avoidable.
Using a Zillow estimate instead of an appraisal
Online estimates aren't admissible to probate court and don't survive IRS audit. The IRS expects a qualified appraisal — a Zillow Zestimate is not one. Heirs who try to shortcut this routinely end up redoing the work later under deadline pressure.
Hiring a real-estate-agent BPO instead of a USPAP appraiser
A broker price opinion (BPO) is not a USPAP-compliant appraisal. It's a marketing tool, not a legal document. Probate courts and the IRS expect the latter. If anyone tells you a BPO is 'good enough for probate' — get a second opinion before you rely on it.
Waiting until the IRS asks for it
By the time the IRS sends a letter questioning the basis, the original date-of-death window is years gone. Retrospective appraisals are still possible — but they get harder, slower, and more expensive every year. Order the appraisal close to the date of death, not when audit pressure forces it.
Letting the appraiser pick comparables from after the date of death
A retrospective appraisal must use only the comparable sales that were actually available as of the date of death. Comparables that closed after that date — even if they're more recent and 'better' — invalidate the report. Always confirm with the appraiser: 'You're using comparables from before the date of death, right?'
Not getting the report signed
An unsigned draft is not a final report. The signed certification page is what makes the report admissible to probate court and the IRS. Always get a signed PDF — and always check the certification page before you file with the court.
How long it takes
A typical date-of-death appraisal takes two to three weeks from initial inquiry to signed PDF. Rush turnarounds are sometimes possible depending on workload and inspection access. Here's what actually happens during those weeks:
Quick call or email — describe the property, the date of death, and the use case (probate, IRS step-up, division among heirs). Most inquiries answered within 24 business hours.
Onsite inspection with the executor or a designated representative. Most properties take 30–60 minutes onsite. Photos taken, measurements verified, condition documented.
Identifying the right comparable sales from before the date of death, adjusting for differences in size, condition, lot, and location. The bulk of the work happens here — not in the inspection.
Full USPAP-compliant report drafted, reviewed, and signed. PDF delivered via email. Available for follow-up calls with the executor's attorney, the CPA, or the IRS as needed.
What it costs
For a single-family residence in Marion, Polk, or Linn counties, most date-of-death appraisals fall in the $800 to $1,500 range — what The Oregon Appraisers calls the Estate-Grade tier. The fee depends on:
- Property size and complexity
- How far back the date of value is
- Whether the report needs to be litigation-ready
- Travel time outside Salem-area
Compare that to the alternative: an estate that loses the step-up basis on a $620,000 property pays capital-gains tax on hundreds of thousands of dollars of phantom gains. The appraisal is one of the highest-leverage purchases an executor makes.
What to do next
If you're settling an Oregon estate and you need a date-of-death appraisal, the next step is a five-minute phone call. Describe the property, the date of death, and the deadline pressure (if any). You'll get a clear quote, a turnaround estimate, and an honest read on whether your situation is straightforward or complicated.
No pressure, no hard sell. Just an appraiser who's been doing this work in Salem since 2003, talking through your case.
Ready to talk through your estate?
Most inquiries answered within 24 business hours. Free initial consultation by phone.