🏡 My Parent Passed Away—Do I Need to Get an Appraisal on Their House?

(Why a Home Appraisal Is Often Essential After the Death of a Loved One)

Losing a parent is difficult enough—emotionally, mentally, and logistically. And if they owned real estate, you may be left wondering:

“Do I need to get an appraisal on their house now that they’ve passed?”

In most cases, especially in West Michigan, the answer is:
✅ Yes—an appraisal is strongly recommended, and often legally required.

Here’s why getting a home appraisal after the death of a parent is not just helpful—it’s a critical step for estate management, taxes, and family harmony.

📋 1. Appraisals Are Required for Estate Settlement and Probate

If your parent’s home is part of a probate estate, a date-of-death appraisal is often required by the court. The appraisal:

• Establishes the home’s fair market value at the time of passing

• Helps determine total estate value for tax and legal purposes

• Aids in distributing assets fairly among heirs

Even if the estate avoids probate (via a trust, for example), an appraisal provides clear documentation for the trustee or executor to carry out their responsibilities properly.

🧠 In Michigan, probate courts typically require a real property valuation as part of the inventory process.

💵 2. You May Need It for Tax Purposes (Capital Gains or Estate Tax)

If the property will be sold later, the appraisal establishes the “stepped-up basis” for capital gains tax purposes. That means:

• The home’s value resets to the appraised value at the time of death

• Heirs only pay capital gains on the increase after that date—not the original purchase price

Without an appraisal, you could overpay taxes—or face scrutiny from the IRS if audited.

💡 Example: If your parent bought the home in 1975 for $40,000 and it’s now worth $280,000, the stepped-up basis protects you from being taxed on that $240,000 gain.

🏡 3. It Helps with Family Buyouts or Asset Division

If one heir wants to keep the home and others want to sell or cash out, the appraisal provides a neutral, third-party value that everyone can agree on.

This helps avoid:

• Family disputes

• One party feeling shortchanged

• Ongoing delays or confusion

⚖️ Appraisals are often used as the foundation for fair negotiations between siblings or beneficiaries.

🏠 4. You’ll Need It to Sell the Property

Before listing the home on the market, it’s wise to know what it’s worth based on local market conditions—not online estimates or tax records.

A professional appraisal:

• Helps you price the home appropriately

• Justifies the asking price to potential buyers

• Reduces the risk of appraisal-related issues during the sale

This is especially helpful in varied markets like Grand Rapids, Ada, Rockford, or Byron Center, where homes can differ widely in style and value even within the same neighborhood.

📆 When Should You Get the Appraisal?

If your parent recently passed, it’s best to order the appraisal sooner rather than later. A certified appraiser can provide a date-of-death valuation, which reflects what the home was worth on the actual day your parent passed—even if the inspection occurs later.

This is known as a retrospective appraisal, and it’s a standard service in estate work.

✅ Final Thoughts

If your parent passed away and left behind real estate, getting a home appraisal isn’t just a formality—it’s a foundational step for:

• Legal and probate compliance

• Tax protection and IRS documentation

• Fair division among heirs

• Smart decision-making around selling or keeping the home

In West Michigan, a qualified local appraiser who specializes in estate and probate work can provide the clarity, professionalism, and legal documentation your family needs during this challenging time.