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Why you need a date-of-death appraisal on an inherited home

A small step that can save a big tax bill later: documenting your inherited home's value on the date of death. Here's why it matters and how to get one.

June 27, 2026 · about 2 min read · free

It's easy to skip, but establishing your inherited home's value as of the date of death is one of the highest-value moves an heir can make. It's the number your future tax bill is measured against — and if you don't document it, you may pay for the omission later.

It sets your stepped-up basis

When you inherit, your tax 'basis' resets to the home's fair market value on the date of death. Sell near that value and your taxable gain is small or zero. But if you can't prove what the home was worth then, the IRS can question the basis you claim — and a documented appraisal is your evidence.

How to establish the value

Order it sooner rather than later. Appraisers can value a home as of a past date, but it gets harder as time passes and the market moves. A few hundred dollars now can protect you from a far larger capital-gains surprise if you sell later.

Especially important if you'll hold the home

If you sell quickly, the date-of-death value and the sale price are close, so the stakes are lower. If you rent or hold the home for years, that documented starting value becomes the anchor for every future gain calculation — so lock it in now. This is general information, not tax advice.

Questions people ask

Can I get an appraisal for a date in the past?

Yes — retrospective (date-of-death) appraisals are a standard service. A licensed appraiser uses comparable sales and market data from around that date.

Is a Zillow estimate good enough?

Not for tax purposes. Automated estimates aren't reliable evidence of a specific date's value. Use a licensed appraisal or a documented agent opinion with real comparables.

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This isn't legal, financial, or tax advice. Inherited Home is not a law firm, brokerage, or tax advisor — everything here is general educational information. Probate rules, timelines, and tax treatment vary by state and county, so confirm your specifics with a licensed professional where the home is located. We match you with vetted local pros, free.
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