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A retrospective appraisal is a certified opinion of what a property was worth on a specific date in the past, rather than today. The appraiser values the home as the market stood on that effective date, using the sales and conditions that existed then. It is most often used for estates, divorce, taxes and legal disputes.
I am Ed Drost, a Maryland State Certified Residential Appraiser (License #30004874). I have appraised Baltimore-area homes since September 1989, and retrospective assignments are a regular part of my estate and probate work. If you are trying to figure out whether you need one, this is the plain-English version of what I tell families and attorneys on the phone. For our service page, see Retrospective Appraisal.
How is a retrospective appraisal different from a standard appraisal?
The difference is the date. A standard appraisal answers "what is this home worth today?" A retrospective appraisal answers "what was this home worth on a particular day back then?" Every USPAP appraisal states two dates: the effective date (the day being valued) and the report date (the day I sign). When they are far apart, the report is retrospective, and it has to say so.
| Standard appraisal | Retrospective appraisal | |
|---|---|---|
| Effective date | Today, or very close to it | A specific date in the past |
| Question it answers | What is it worth now? | What was it worth then? |
| Market data | Current sales and listings | Sales and market conditions from around the effective date |
| Property condition | What I see at the inspection | What it was on the effective date, shown through records, photos and permits |
| Usually ordered by | A lender, buyer or owner | An executor, heir, attorney, CPA or court |
| Typical use | Purchase, refinance, PMI removal | Estates, divorce, taxes, legal disputes |
When do you need a retrospective appraisal?
Anytime a decision, a filing or a court needs the value on a past date. These are the situations I see most:
- Estate and probate. A date-of-death appraisal establishes the home's value on the day the owner died. Executors use it for the probate inventory, and heirs use it to support their stepped-up tax basis. See Estate & Probate Appraisal.
- Divorce. Maryland courts and settlement agreements often point to a specific date, such as the date of marriage, separation or filing. When a spouse claims part of the value is non-marital, a retrospective appraisal can show what the home was worth at the earlier date. See Divorce Appraisal.
- Taxes and capital gains. Heirs who sell an inherited home, or owners who converted a home to a rental, may need the value on a past date to figure their gain or depreciation.
- Legal disputes. Insurance claims, damage cases, partnership buyouts and property disputes often turn on what the property was worth before a loss or event.
- Property tax questions. Some assessment matters depend on value as of a particular valuation date.
In my practice, the first one is by far the most common. Every date-of-death appraisal is retrospective, but not every retrospective appraisal is a date-of-death appraisal.
How does a retrospective appraisal work?
A retrospective assignment follows the same USPAP standards as any other appraisal. What changes is how I build the case, because I have to put myself in the market as it was on the effective date.
- Set the effective date and the purpose. The client tells me the date and what the report is for. I confirm both in writing before I start, because they drive everything else.
- Rebuild the market on that date. I pull closed MLS sales, SDAT records and neighborhood data from the period, then select comparable sales a buyer and seller could have seen then.
- Establish the property's condition on that date. I cannot inspect the past, so I use what was recorded: listing photos, family photos, permits, insurance and inspection reports, and repair invoices. I also inspect the home today and work out what has changed since.
- Report both dates and every assumption. The effective date and the report date appear up front. If I cannot verify the condition on the effective date, the report says so and states the assumption.
The rule that matters most is that hindsight cannot set the value. Under USPAP guidance, information from after the effective date can only be used to confirm trends a buyer or seller would reasonably have recognized on that date. If the market jumped or dropped afterward, that does not belong in the number.
How far back can a retrospective appraisal go?
USPAP lets an appraiser use any effective date, as long as the work is competent and the report discloses that it is retrospective. So the practical limit is not the calendar. It is the records. Three things decide how well the work holds up:
- Sales data. MLS and public records usually go back far enough, but the closer the date, the more comparable sales there are to choose from.
- Condition evidence. Photos, permits and invoices fade with time. A home that was remodeled or neglected since the effective date is harder to reconstruct.
- Market change. In a fast-moving market, a date several years back takes more care to support.
If I cannot verify something, I do not guess. I state the assumption in the report. That is why I tell families to call early, while the records are still easy to find. For the long-gap version of this question, see Can You Get a Retrospective Appraisal Years After an Owner Passed Away?
Who orders one, what does it cost, and what should you gather?
Executors, heirs, trustees, attorneys, CPAs and courts order retrospective appraisals. Lenders rarely do. The client is whoever engages me, and the report is addressed to them and their intended users.
My fees run from $400 to $1,500, depending on the property type, how far back the date is and how much record-hunting the assignment takes. I quote once I know the address, the date and the purpose. See the Appraisal Cost Guide.
To get started quickly, have these ready:
- The property address and the exact effective date
- What the report is for, and who will receive it (attorney, executor, CPA, court)
- Photos, inspection reports, repair invoices or insurance records from around that date
- Any deadline, such as a Register of Wills filing or a court date
- If the home had a reverse mortgage, the servicer's name
What should Maryland families know?
Most of the retrospective work I do in Baltimore City, Baltimore County, Carroll County and Harford County is tied to an estate. Three Maryland points come up again and again:
- The Register of Wills expects date-of-death values. Property in an estate is to be fairly appraised as of the date of death, so a current value or an agent's opinion does not answer the question. See the Register of Wills guide.
- Heirs need a defensible basis. Under IRC Section 1014, inherited property generally takes a new tax basis equal to its fair market value on the date of death. The burden of supporting that number is on the heir. See How the Stepped-Up Basis Works.
- Maryland has its own estate and inheritance taxes. How they apply depends on the estate and the heirs, so confirm with an attorney or CPA. My job is to give them a value they can stand behind.
If the home had a reverse mortgage, the servicer will also order a current-value appraisal to set the payoff. It is a different report for a different purpose. I explain the difference in Understanding Retrospective Appraisals in Reverse Mortgages.
Need the value on a past date?
See our Retrospective Appraisal and Date of Death Appraisal pages, or call me at 443-904-5229.
Common questions
What is a retrospective appraisal?
It is a certified opinion of a property's market value as of a specific date in the past, rather than today. The report states both the effective date and the report date.
Is a retrospective appraisal the same as a date-of-death appraisal?
A date-of-death appraisal is one kind of retrospective appraisal, where the effective date is the day the owner died. Retrospective appraisals are also used for divorce, taxes and legal disputes.
How far back can a retrospective appraisal go?
There is no fixed calendar limit. The limit is whether there are enough sales data and condition records to support a credible opinion for that date.
Can an appraiser use sales that happened after the effective date?
Only in a limited way. Later data may be used to confirm trends that a buyer or seller would reasonably have recognized on the effective date, but it cannot set the value.
Who orders a retrospective appraisal?
Executors, heirs, trustees, attorneys, CPAs and courts. A lender rarely does.
Do I need a retrospective appraisal for a reverse mortgage?
Not to get the loan. A reverse mortgage uses a current-value appraisal. A retrospective date-of-death appraisal may be needed after the borrower dies, for taxes and the estate.
Can a real estate agent's CMA replace a retrospective appraisal?
Usually not. A CMA is a marketing opinion, not a USPAP-compliant appraisal, and it carries little weight with the IRS or a court.
How much does a retrospective appraisal cost?
My fees run from $400 to $1,500, depending on the property, how far back the date is and the records available.
Sources
- 26 U.S.C. 1014: Basis of property acquired from a decedent
- Maryland Register of Wills: Administration of Estates
- ISA: Using sales after the effective date as USPAP comparables (citing USPAP Advisory Opinion 34 and FAQ 166)
- HUD: Inheriting a Home Secured by an FHA-insured HECM
This article is general information, not legal, tax or financial advice. Every property and every estate is different. Confirm your situation with a Maryland attorney and a CPA.
More articles
Understanding Retrospective Appraisals in Reverse Mortgages
A retrospective appraisal is not the one the servicer orders. How the two valuations differ, the 95% rule, and why heirs may need a date-of-death value.
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.
What Is a Date of Death Appraisal in Maryland and Why Is It Required?
A certified retrospective valuation as of the day the owner passed. Why heirs and executors need one, with a worked stepped-up basis example.