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What is a date of death appraisal in Maryland?
A Maryland date-of-death appraisal is a certified retrospective valuation that establishes the fair market value of a property as of the exact date the owner passed away. It is prepared by a licensed appraiser to USPAP standards, so it holds up with the IRS, the Register of Wills, the Orphans' Court and the family's attorney.
The appraiser does not value the home as it stands today. The effective date of the report is the date of death, even though the inspection happens later. Every comparable sale, market trend and condition finding is anchored to that day.
I have appraised homes across Baltimore City, Baltimore County, Carroll County and Harford County since 1989, and estate work is a core part of that practice. For the service page with fees, turnaround and county coverage, see date of death appraisal in Baltimore.
Why is a date of death appraisal required in Maryland?
Because the date-of-death value drives the heirs' stepped-up cost basis under IRS Section 1014 and the property value reported in probate. Heirs and personal representatives need a supportable, independent number; without one, the value can be challenged by the IRS, the court or a co-heir.
Under IRS Section 1014, property that passes to an heir at death generally receives a new cost basis equal to its fair market value on the date of death. This is the stepped-up basis. It replaces the original purchase price as the starting point for any future capital gains calculation.
Without a defensible date-of-death value, an heir who sells has no reliable proof of that basis. The IRS can challenge a number that came from a tax bill, an online estimate or a guess, and the heir may owe tax on far more gain than the law requires.
In Maryland, a date-of-death appraisal does four jobs for the estate:
- Probate compliance: The personal representative uses the value on the inventory filed with the Maryland Register of Wills.
- Stepped-up basis: It resets the property's tax basis to date-of-death value, limiting future capital gains for heirs.
- Tax reporting: It supports accurate federal and state estate or inheritance tax calculations where they apply.
- Equitable distribution: It gives beneficiaries an objective value, preventing disputes when the property is divided, bought out or sold.
Whether a formal appraisal is mandatory in a particular estate depends on the facts, so confirm with your estate attorney or CPA. What the appraisal does is replace a guess with a number you can defend. For how the value becomes the heirs' basis, see the stepped-up basis guide.
How much can a stepped-up basis save? A worked example
A home bought for $90,000 in 1985, worth $425,000 on the date of death and sold by the heirs for $450,000, has a taxable gain of $25,000 when the date-of-death value is documented by a certified appraisal. If that value cannot be proven, the heirs risk being taxed on as much as $360,000.
| If the date-of-death value can't be proven (original basis) | With a certified date-of-death appraisal | |
|---|---|---|
| Sale price | $450,000 | $450,000 |
| Basis | $90,000 | $425,000 |
| Taxable gain | $360,000 | $25,000 |
The stepped-up basis applies by law, but the heirs have to be able to prove the $425,000 figure. A certified appraisal is that proof. Without it, an unsupported number can be challenged, and the heirs may be taxed on far more gain than the law requires. At an illustrative 15% federal long-term capital gains rate, the difference between a $360,000 gain and a $25,000 gain is roughly $50,000 in federal tax, before any state tax. The example is for illustration only; every estate's tax result depends on its own facts, so confirm the details with your CPA or estate attorney.
Why isn't a real estate agent's opinion or CMA enough?
A Comparative Market Analysis (CMA) is a marketing opinion, not a legal valuation. It is not prepared to USPAP standards or signed as a certified opinion of value, and the agent may hope to win the listing. A certified appraisal is an independent opinion by a licensed professional who can defend every adjustment.
Families often ask whether a friendly agent's CMA will do. For tax and probate purposes it generally will not:
- A CMA is a marketing opinion, not a legal valuation, and the agent may hope to win the listing.
- A CMA is not prepared to USPAP standards and is not a signed, certified opinion of value.
- Maryland probate offices and the IRS expect an independent, credentialed appraiser they can rely on.
A certified appraisal is an unbiased opinion, written by a licensed professional who can defend every adjustment if the value is ever questioned. The stepped-up basis guide compares an appraisal with a CMA, a tax assessment and an online estimate side by side.
Can a date of death appraisal be done years after the death?
Yes. A certified appraiser can value the property as of a past date, even several years back, by keeping the inspection date and the effective date separate and reconstructing the market as it stood on the date of death. The report states both dates.
To reconstruct the market on that day, the appraiser:
- Pulls closed MLS sales from roughly 90 to 180 days around the date of death.
- Reviews deeds, permits, tax records and any photos or listings from that period.
- Asks family members and neighbors what condition the home was in at the time.
- Adjusts for changes since then, such as renovations or damage, so the report reflects the home as it stood on the date of death.
The sooner the call is made, the easier the records are to find. Late is still better than never, especially before a sale closes. The same discipline is covered on the retrospective appraisal page.
What do I need to provide, and what does it cost?
Date-of-death appraisals in the Baltimore area typically run $400 to $1,500, depending on property type, size and complexity. Standard suburban homes fall toward the lower end; rural acreage, historic, multifamily and other hard-to-value properties fall toward the higher end. You receive a firm quote before any work begins.
Having these ready speeds the work:
- The date of death and a copy of the death certificate
- The property address, plus the deed if you have it
- Names of the personal representative and the estate attorney
- Access arrangements for the inspection
- Any records of repairs, additions or damage near the date of death
Standard residential appraisals ordered by a lender cost less, but they are a different product and are not written for estate purposes. See the full appraisal cost guide for fees by property type.
Date of death appraisal by county
I appraise inherited and estate property in all four counties below. Each page covers local market conditions and the property types common to that area.
Common questions
Do I need a date of death appraisal if the property will not be sold?
Often yes. The value still matters for the estate inventory, for dividing the property among heirs, and for establishing basis if anyone sells later.
Does it have to be a Maryland certified appraiser?
For a Maryland property, use a Maryland State Certified appraiser who knows local sales and who can support the report if asked.
Who orders a date of death appraisal?
Usually the personal representative or the estate attorney, since the estate is the client.
Can I use the tax assessment as the value?
No. An assessment is a mass-market statistical figure. It is not a point-in-time opinion of fair market value.
More articles
Appraisal vs. CMA: Can You Use a Real Estate Agent's Market Analysis for Probate?
What a CMA is, how it differs from a certified appraisal, and why heirs and executors usually need the appraisal for estate and tax purposes.
Can You Get a Retrospective Home Appraisal Years After an Owner Passed Away?
Yes. How a certified appraiser values an inherited home as of a past date of death, what records help, and what limits the work.
How Does the IRS Stepped-Up Basis Work for Inherited Real Estate?
How the IRS resets an inherited home's cost basis to its date-of-death value, with a worked example, what doesn't qualify, and why heirs need an appraisal.