7 Key Things CPAs Need to Know About Step-Up in Basis Valuations for Estate Tax Filings.
When preparing estate tax filings, CPAs are often responsible for coordinating real estate valuations that support the stepped-up basis of inherited property. Accurate and well-supported valuations are essential — not only to avoid audit delays but also to ensure clients are in the best possible tax position.
Here are 7 important considerations to keep in mind when ordering real estate appraisals for estate and tax purposes:
1. Ensure the Appraisal Meets IRS Standards
For IRS purposes, valuations should be performed by a licensed or certified real estate appraiser and must comply with USPAP (Uniform Standards of Professional Appraisal Practice). This ensures that the report includes the proper certifications, methodology, and documentation expected in tax-related filings.
Best practice: Always confirm the appraiser is familiar with estate and retrospective reporting standards.
2. The Effective Date Must Reflect the Date of Death
For step-up in basis purposes, the valuation must estimate the property’s fair market value as of the decedent’s date of death — not the current date. This is known as a retrospective appraisal.
Example: If the decedent passed away in October 2022, the appraisal must analyze market data relevant to that specific point in time.
3. Online Estimates and AVMs Are Not Sufficient
While tools like Zillow or Redfin provide general estimates, they do not meet the documentation or credibility standards required for IRS reporting. They cannot account for condition, market nuances, or retrospective dates.
Important note: AVMs are helpful for rough planning but shouldn’t be used for official filings.
4. Appraisals Should Clearly Support the Reported Value
When the IRS reviews an estate filing, they expect a real property valuation that is well-documented, clearly explained, and supported by market data. A high-quality report will include comparable sales, adjustments, and commentary that make the opinion of value easy to follow.
Best practice: Look for reports that are transparent in their analysis and include all necessary exhibits, especially when attached to IRS Form 706 or 1041.
5. Each Property Should Be Evaluated Independently
If the estate includes multiple real properties, each one should be evaluated on its own merits. This ensures accuracy and helps provide a clear, supportable basis for each asset in the estate.
Efficiency tip: Coordinating all properties with one qualified firm can streamline the process and improve consistency.
6. Property Condition and Unique Features Matter
An accurate valuation must consider more than square footage and location. It should reflect the property’s physical condition, updates or repairs needed, and any unique features that affect marketability or value.
Why it matters: An objective analysis helps ensure the step-up value aligns with fair market expectations and avoids over- or under-valuation.
7. Local Market Experience Is Incredibly Valuable
Every market is different — from neighborhood trends to buyer behavior. Appraisers with local expertise can better identify appropriate comparable sales, make informed adjustments, and explain their conclusions in a way that stands up to scrutiny.
Professional tip: Ask whether the appraiser specializes in your market area and has experience with retrospective and estate-related work.
Closing Thought: Partnering with the Right Appraiser Adds Value
As a CPA, the goal is to provide accurate, defensible filings that protect your clients. A well-supported appraisal is a key piece of that puzzle — especially when dealing with stepped-up basis valuations.
At REI Valuations & Advisory, we specialize in providing clear, compliant, and timely appraisals for estate tax, probate, and retrospective reporting across the Atlanta metro. If you’re looking for a local appraisal partner who understands the unique needs of CPAs and fiduciaries, feel free to reach out — we’re happy to assist.
Atlanta Home Appraisers for Divorce, Estate, IRS & Tax Appeal- Non-Lending Experts You Can Trust
At REI Valuations, we specialize in non-lending residential appraisals throughout the Atlanta metropolitan area. Whether you’re navigating a legal matter, planning to sell, or need to report to a government agency, our licensed home appraisers provide accurate, defensible valuations tailored to your unique situation.
Below is an overview of the appraisal services we offer:
Divorce Appraisals (Family Law)
If you’re going through a divorce, you may need a formal appraisal to determine the fair market value of the marital home. Our impartial appraisals help support equitable distribution of assets and are accepted in court. We work closely with attorneys and both parties to ensure the report is clear, timely, and defensible.
Settling an estate or dealing with probate? Our estate appraisals are commonly used to establish the date-of-death value or retrospective value of the property for inheritance and tax reporting. We help fiduciaries, executors, heirs, and attorneys handle estate matters with confidence and compliance.
Gifting a property or facing an audit? The IRS requires a qualified appraisal when reporting real estate gifts or preparing estate tax filings. We provide USPAP-compliant reports tailored to IRS Form 709 and Form 706 needs, ensuring accuracy and credibility in case of review.
Property Tax Appeal Appraisals
Think your tax assessment is too high? You may be overpaying in property taxes. We conduct independent, well-supported appraisals that can be used in tax appeal hearings to help you reduce your annual property tax burden.
Pre-Listing Appraisals (FSBO & Agent)
Before you list your home for sale, especially as a For Sale By Owner (FSBO), a pre-listing appraisal gives you confidence in your asking price. It also provides an objective baseline for negotiating with buyers or agents. We help you price with precision.
We also complete appraisals for purposes such as bankruptcy, foreclosure defense, asset division, and financial planning. Our focus is strictly on private-party, non-lender work — no bank or AMC red tape, just responsive, personalized service.
Locally Based: We serve the Atlanta Metro Area and understand its neighborhood-level nuances.
Licensed & Insured: You get a credentialed appraiser, not an automated estimate.
Experienced in Legal Work: We’re fluent in USPAP, retrospective appraisals, and court-ready reports.
Direct-to-Consumer Focus: No middlemen, just real answers from real professionals.
Attorney & CPA Approved: We frequently collaborate with professionals across probate, tax, and family law.
If you need a reliable home appraisal for divorce, estate, tax appeal, or IRS purposes, we’re here to help.
Get a fast, confidential quote:
Visit www.rei-valuations.com/home-appraisal-request
Or call/text us directly: 4046923878
Serving Fulton, Dekalb, Gwinnett, Cobb, and surrounding Atlanta counties.
How Much Does an Estate Appraisal Cost in the Atlanta Metro Area?
When a loved one passes, dealing with the legal and financial complexities of an estate can feel overwhelming. One key step in the probate process is obtaining a real estate appraisal to determine the fair market value of the property as of the date of death. If you’re navigating estate settlement in the Atlanta area, understanding what an estate appraisal entails—and how much it typically costs—can help you make informed decisions during a difficult time.
What Is an Estate Appraisal?
An estate appraisal, also called a date of death appraisal, is a formal valuation of a property conducted by a licensed real estate appraiser. This type of appraisal is often required by:
Probate courts
Estate attorneys
CPAs handling estate taxes
Executors or personal representatives
Heirs or beneficiaries
Unlike appraisals used for mortgage lending, estate appraisals are non-lender assignments with a different scope of work. They can be retrospective (valuing the property as of a past date) or current, depending on the situation.
How Much Do Estate Appraisals Cost in Atlanta?
Estate appraisal fees vary depending on several factors:
Property size and complexity
Location within the metro area
Whether the appraisal is current or retrospective
Turnaround time (rush orders may cost more)
In the Atlanta metropolitan area, typical pricing for a standard single-family estate appraisal falls between $400 and $600. More complex properties—such as those with acreage, unique features, or multiple buildings—may cost $700 or more.
If the property needs multiple effective dates (such as both date of death and current market value), this usually involves separate assignments and fees.
You can learn more about our appraisal pricing and services here.
Why Choose a Specialist in Non-Lender Estate Appraisals?
Not all appraisers are familiar with the unique requirements of probate, estate tax filings, or IRS documentation. At REI Valuations, we specialize in non-lender appraisal work, which means:
No bank red tape
Reports designed for legal and tax professionals
Clear, defensible valuation logic
Respectful handling of sensitive, time-critical cases
We’ve assisted families, attorneys, and estate executors throughout Atlanta—including in Fulton, Dekalb, Cobb, and Gwinnett Counties—with accurate and timely appraisals.
Need an Estate Appraisal in Atlanta?
If you’re settling an estate and need an appraisal for probate, IRS reporting, or to assist with selling inherited property, we can help.
Request an estate appraisal today
Or call us directly to speak with a licensed appraiser who understands the sensitivity and importance of this work.
We’ll guide you through the process and deliver a report you—and the court—can rely on.