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Date of Death Appraisals Explanation & Service | Estate & Probate Experts in Arlington VA

Date of Death Appraisals in Virginia: What Families, Executors, and Advisors Need to Know

When a loved one passes away, their real estate often becomes one of the largest assets in the estate. Determining its fair market value at the date of passing — known as a Date of Death (DOD) appraisal — is an essential part of settling taxes, distributing inheritances, and maintaining compliance with both IRS and Virginia requirements.

Square Feet Appraisals provides certified, USPAP-compliant Date of Death appraisals across Northern Virginia, including Arlington, Alexandria, Falls Church, McLean, Vienna, Fairfax County, Annandale, Reston, Springfield, and Herndon. Below, we’ll break down what this type of appraisal is, why it matters, and how to ensure your report stands up to scrutiny.

What Is a Date of Death Appraisal?

A Date of Death appraisal is a retrospective property valuation establishing the home’s fair market value as of the decedent’s date of passing. The report does not assess current market value — instead, it analyzes the real estate market as it existed on that specific date, often using comparable sales from the weeks or months surrounding it.

This appraisal is commonly required for:

  • Estate tax reporting to the IRS

  • Stepped-up basis calculations for heirs selling inherited property

  • Probate filings and equitable distribution among beneficiaries

  • Trust administration and dissolution

  • Historical valuation for legal or tax purposes

Why It Matters for Virginia Estates

Virginia doesn’t currently have its own state inheritance or estate tax, but federal estate and capital gains rules still apply. That means the IRS — and by extension, your CPA or estate attorney — relies on the DOW appraisal to establish a clear, defensible property value.

Here’s how it affects you:

  • Stepped-Up Basis: When you inherit real estate, the property’s tax basis “steps up” to its fair market value at the date of death. If the property later sells for more than that amount, the difference becomes taxable capital gain.

  • Capital Gains Taxes: A precise DOW value can help minimize future taxes for heirs. Overestimating or underestimating the value could lead to unnecessary taxes or potential IRS issues.

  • Alternate Valuation Date (AVD): The IRS allows executors to use an alternate valuation date — six months after death — if it results in a lower total estate value and tax liability. This is especially relevant during market downturns.

  • Estate Planning & Trust Management: Even if no tax return is required, the appraisal provides vital documentation for probate court, trusts, and equitable distributions.

For reference:

  • IRS Publication 559: Survivors, Executors, and Administrators

  • IRS Publication 561: Determining the Value of Donated Property

  • The Appraisal Foundation (USPAP Guidelines)

  • Virginia Tax Code §58.1-3219.1 (Property Tax Deferral)

What Makes a DOW Appraisal Different

Unlike standard home appraisals, a DOW report is retrospective — it values the property in the past. This requires an experienced appraiser who can research archived MLS data, historic market conditions, and verified comparable sales from the correct timeframe.

A strong DOW report should include:

  • A clearly stated retrospective effective date (usually the date of death)

  • Neighborhood and market analysis reflecting that specific period

  • Comparable sales data that brackets the effective date

  • Supported adjustments based on condition, location, and features

  • A concise summary of scope and assumptions, compliant with USPAP standards

Square Feet Appraisals specializes in these retrospective valuations — including complex cases where property conditions have changed since the date of death.

Frequently Asked Questions About Date of Death Appraisals in Virginia

What is a retrospective effective date?
It’s the exact date the appraiser uses to determine value — typically the date of death. Market data used will center around that date rather than today’s conditions.

How far back can a DOW appraisal go?
There’s no strict limit. We frequently complete reports months or even years after the date of death using archived market data and verified historical sales.

Can you use sales that occurred after the date of death?
Yes, sometimes — particularly if those sales are the best available data in a limited market. Adjustments are made to reflect the market conditions as of the date of death.

Will the IRS accept the appraisal?
Our certified residential appraisers produce USPAP-compliant, defensible reports with clear methodology and documentation — the exact level of detail the IRS expects for estate reporting.

What documents should I provide?
You’ll need the property address, date of death, ownership details, access instructions, and notes about the home’s condition at that time. If major changes occurred after the date of death (renovations, additions, etc.), we’ll adjust accordingly.

Do you coordinate with attorneys and fiduciaries?
Yes. We regularly work with estate attorneys, CPAs, and financial advisors to ensure every appraisal aligns with their specific legal and tax requirements.

Common Misconceptions About DOW Appraisals

  • “We can just use the county tax assessment.”
    → Not advisable. County assessments are mass appraisals, not property-specific valuations, and may differ drastically from actual market value.

  • “We don’t need an appraisal if no estate tax return is filed.”
    → Even if you’re below the federal threshold, a DOW appraisal helps set a baseline for future capital gains and probate distribution.

  • “A letter from a Realtor is fine for the IRS.”
    → Incorrect. The IRS and Virginia Tax Department expect a USPAP-compliant appraisal prepared by a certified appraiser.

How Square Feet Appraisals Builds a Defensible DOW Report

  1. Confirm the Effective Date — typically the date of death or alternate IRS-approved date.

  2. Research Market Conditions — analyze sales, listings, and trends leading up to that date.

  3. Collect Historical Data — retrieve archived MLS listings, assessor data, and verified comparable sales.

  4. Inspect the Property (if possible) — or use dated photos and documentation to determine condition as of the death date.

  5. Prepare a USPAP-Compliant Report — including methodology, comparable selection, and full narrative.

  6. Coordinate with Fiduciaries — share reports securely with executors, attorneys, and CPAs to support estate filings.

When Should You Order a Date of Death Appraisal?

  • When the estate is being probated

  • When heirs plan to sell or transfer the property

  • When determining stepped-up basis for tax reporting

  • When an executor, trustee, or CPA requests historical valuation

  • When the property value at death is in question

Ordering early — ideally within six months of the date of death — ensures access to more accurate data and documentation.

Local Expertise Matters

Real estate values in Northern Virginia vary significantly from county to county. A condo in Arlington or Falls Church will have vastly different market dynamics than a single-family home in McLean or Vienna. Our appraisers understand these micro-markets and have access to archived MLS data specific to each area.

We serve:
Arlington County, Alexandria, Fairfax County, Falls Church, McLean, Vienna, Annandale, Reston, Springfield, and Herndon.

Planning Ahead: Estate & Tax Implications

A Date of Death appraisal isn’t just for after someone passes — it’s also a valuable estate planning tool. Homeowners can benefit from periodic valuations to help family members plan ahead, minimize confusion, and prepare for potential tax implications.

Key takeaways for proactive homeowners:

  • Keep records of major improvements (dates, receipts, before/after photos).

  • Store recent appraisals or CMAs for reference.

  • Discuss with your CPA or estate attorney about future stepped-up basis planning.

  • Document occupancy and property condition regularly to simplify future reporting.

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Final Thoughts

A properly completed Date of Death appraisal protects families, executors, and advisors from costly tax mistakes and legal complications. By relying on a certified residential appraiser familiar with Northern Virginia’s market and IRS expectations, you ensure the valuation is both accurate and defensible.

Square Feet Appraisals provides retrospective appraisals you can trust — clear, compliant, and coordinated with your entire estate team.

Need a Date of Death appraisal in Arlington, Alexandria, or Northern Virginia?
Contact Square Feet Appraisals today to request a consultation and receive a clear, defensible valuation for your estate.