Overview

During probate, determining the value of estate property is one of the first and most important tasks. Courts require an accurate assessment of real estate and other assets to ensure fair distribution and compliance with legal requirements.

How Property Value Is Determined During Probate

Most probate courts require a formal valuation—either a certified appraisal or a comparative market analysis from a qualified professional. The key is to reflect fair market value as of the date of death, not the date of sale.

• Certified Appraisal: Conducted by a licensed appraiser using comparable sales and property condition.
• Broker Price Opinion (BPO): A real estate agent’s estimate used when an appraisal isn’t mandatory.
• Tax Assessment: Offers a rough baseline but is rarely accurate enough for court reporting.
• Date-of-Death Value: Required by most courts and the IRS for accounting purposes.

Why Accurate Valuation Matters

Setting the wrong number can affect taxes, heir distribution, and potential sales. Undervaluing a property may shortchange heirs, while overvaluing can raise tax liability or turn off buyers later in the process.

• Ensures fairness among beneficiaries
• Supports precise tax filings
• Reduces the chance of disputes or audits
• Strengthens buyer and court confidence

The Role of a Probate Realtor in Valuing Property

A probate realtor helps executors determine listing prices and market strategies that align with court rules. They analyze comparable sales, evaluate property condition, and suggest adjustments that protect estate equity.

• Prepares a competitive market analysis (CMA)
• Advises on whether light repairs or cleaning improve sale value
• Explains pricing for “as-is” and improved condition listings
• Coordinates with appraisers and attorneys for documentation

Common Valuation Errors in Probate

1. Using outdated comparables – Market shifts can make old data unreliable.
2. Ignoring condition differences – Deferred maintenance or upgrades affect value substantially.
3. Depending only on tax records – Assessments rarely match current market value.
4. Skipping professional input – A written report from a realtor or appraiser helps prevent court challenges.

Tips for Executors and Families

• Request a written valuation early to guide decisions.
• Keep all appraisal and market reports for future reference.
• Consult your attorney or accountant before setting prices.
• Record any improvements that could affect market value.