How to determine fair market Value for Inherited House back in 2007
Wouldn’t matter if a realtor did. A realtor is not a qualified, certified, licensed property appraiser. You may need to seek the services of a qualified, certified and licensed property appraiser in the area that has been in business for at least the last 10 years. They can do an appraisal for both current value, and 2007 value with no problem. They will have records going back that far (if they’ve been in business that long) and can therefore provide you an appraisal of the property’s value for that far back.
You will have to be present for the walk through, which generally takes a few hours so you can answer questions about how things were back then with the property, as well as identify property improvements that were not present in 2007. Cost for the a appraisal is generally in the $300-500 range and if the appraisal is for the purpose of selling the property, it’s a deductible sales expense provided you sell the property in the same tax year as the appraisal.
Additionally, if this is an estate sale, the estate can pay for the appraisal.
There are numerous possibilities, with the tax assessor’s tax value in 2007 being the *absolute* *last* *resort*.
During the time it was owned by the person you inherited it from, did they rent it out or utilize the property for *any* business purpose, even if not 100% rental or business use? If so, then there’s documents in their last tax return filed prior to their passing that may have that information in it. If not there, then it would be in the last tax return filed for the last tax year it was any degree of business use.
If there was a property appraisal done by a qualified appraiser (not the tax assessor) within the 2 years either side of their passing, then that appraised value will be sufficient.
Thank you for the quick, informative reply. Unfortunately non of the options you suggested apply to this situation. The heirs did have a realtor give them an appraisal based on a walk thru and comps in 2007. I do not know if that would be sufficient.
Thank you again. We were fortunate to find an appraisal done by a certified appraiser from about one year prior to the owner’s death. We are in the process of getting it appraised again by a Certified Residential Real Estate Appraiser. Thank you very much.
How to determine fair market Value for Inherited House back in 2007
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