5 IRS Mistakes That Can Blow Up a Step-Up in Basis Valuation (And How to Avoid Them)
This Isn’t Just About Getting the Value Right. It’s About Not Getting Audited.
Most heirs — and even some tax professionals — think a “date of death” appraisal is just a formality.
You slap a value on the inherited property, claim your step-up in basis, and move on.
But if that value triggers red flags at the IRS?
You're not just amending a return.
You're explaining the entire basis calculation under audit… with penalties on the table.
We’ve seen it happen. And we know exactly where things go wrong — and how to stop it before it does.
Here Are the 5 Mistakes That Trip Up Most Step-Up Appraisals
1. Using a Real Estate Agent’s CMA Instead of a Licensed Appraisal
The IRS doesn’t accept guesswork.
CMA = Comparative Market Analysis. Not compliant. Not USPAP-standard. Not defensible.
One estate we worked on had an agent estimate of $385,000.
Our licensed appraisal? $451,000 — based on proper comps, adjustments, and market timing.
That $66,000 difference meant a much bigger step-up (and massive long-term tax savings).
2. Choosing the Wrong “Effective Date” of Value
The IRS wants the FMV on the actual date of death — not the filing date, not the estate sale closing date.
We see heirs accidentally use:
The date the will was probated
The day the house was listed
Or worse — a random estimate months later
Solution: Get a retrospective appraisal with the effective date locked in to the decedent’s death.
3. Using the Sales Price as the Step-Up Basis
Just because the home sold for $500,000 doesn’t mean that was its FMV at the time of death.
Markets shift. Interest rates move. Supply and demand change.
In one case, a property sold for $500K… but had a date-of-death FMV of $535K.
Reporting $500K left $35,000 on the table in future capital gains.
4. Failing to Document Property Condition
The IRS doesn’t just want value — it wants supporting evidence.
That means:
Interior photos (not just exterior)
Descriptions of repairs/upgrades
Commentary on deferred maintenance
Why it matters:
If the property had issues, your appraiser needs to reflect those in value — or the IRS will assume otherwise.
We've had cases where the appraised value came in lower than expected — saving the estate on taxes because the home had structural issues.
5. Waiting Too Long and Losing Records
We’ve had heirs come to us 18 months after death, asking for a valuation — with no photos, no walkthrough access, and no context.
Reconstructing FMV becomes much harder — and far riskier — when:
The property has been renovated
It’s been rented or sold
There’s no documentation from the time of death
Best practice: Order the appraisal within 30–90 days of death, even if the estate won’t file for months.
What a Proper Step-Up Appraisal Should Include
A real IRS-ready Date of Death Appraisal from REI Valuations includes:
Retrospective value as of the exact date of death
USPAP-compliant, defensible methodology
Photographic and market evidence
PDF + electronic delivery for CPA/attorney use
Optional affidavit/certification language if needed
For CPAs, Attorneys, and Heirs Who Can’t Afford a Mistake
We specialize in court-accepted, IRS-compliant, and timely date of death appraisals across Georgia.
Includes full licensed appraisal report
Bonus: Property profile PDF to share with your tax preparer
Priority 72-hour delivery available
Only 3 open appraisal slots left this week
January 4 2026
Do Home Appraisers Go Inside the Property? Understanding Expert Witness Appraisals & Estate Valuation Services in Atlanta.
When it comes to getting your home appraised—whether for estate tax filings, divorce proceedings, or general valuation purposes—many homeowners wonder: Do home appraisers go inside the property?
**The answer is yes—**especially for high-stakes situations like probate, IRS reporting, or litigation where a credible, supportable opinion of value is required. As certified real estate appraisers and expert witnesses serving the Atlanta metropolitan area, we conduct both interior and exterior inspections to document condition, quality, layout, and improvements that directly impact the market value of the home.
Whether we’re assisting with estate tax valuation for heirs, or preparing for testimony in family court or superior court, our inspection process is comprehensive. We document:
Interior upgrades or deferred maintenance
Functional layout issues (e.g., converted garages, in-law suites)
Quality of materials, finishes, and construction
Any unfinished renovations, repairs, or obsolescence
Basement buildouts and bonus spaces often missed by tax records
In expert witness assignments, these details can become pivotal. A judge, IRS agent, or opposing counsel isn’t looking for Zillow estimates—they need a qualified valuation based on observable facts, professionally documented and explained.
Expert Witness Appraisals in Atlanta
We specialize in expert witness appraisals for divorce litigation, partition cases, estate disputes, and more. Our valuation reports are tailored to stand up under scrutiny—prepared to meet USPAP standards and provide clear, defensible conclusions backed by comp grids, adjustments, and reconciliation logic.
Our team has experience working with:
Estate Tax & Date of Death Appraisals
If you’re managing an estate in Georgia, especially in metro Atlanta counties like Fulton, DeKalb, Cobb, or Gwinnett, you’ll likely need a date of death appraisal for IRS compliance or equitable distribution. These are retrospective appraisals, often based on market conditions from months—or even years—ago.
Our Atlanta estate appraisers are trained to:
How Appraisers Work: More Than Just Numbers
Appraisers don’t just “run comps.” We apply multiple valuation approaches (Sales Comparison, Cost, and Income where applicable), interview market participants, analyze market trends, and consider externalities (e.g., zoning changes, nearby development, seasonal timing).
For attorneys and real estate agents, having a local expert who understands Atlanta submarkets—not just appraisals in general—can make all the difference. We serve both residential and small-income properties and tailor our process to the assignment’s scope and intended use.
Serving the Atlanta Metro: Homeowners, Attorneys, Agents, Investors
Whether you’re a homeowner trying to protect your equity, an attorney preparing for court, or a real estate professional needing valuation clarity—we’re here to help. Our coverage spans:
Fulton, DeKalb, Cobb, Gwinnett, Henry, Clayton, and surrounding counties
Probate and trust appraisals for estate planning and tax reporting
Valuation consulting for investor strategy and litigation preparation
Limited Fall & Winter Availability — Book Now Before We Fill Up
Due to court calendars, year-end IRS filing needs, and seasonal case surges, our expert witness appraisal slots fill up quickly this time of year. If you need a credible, locally-based valuation for court, tax filings, or a high-value real estate decision:
Click here to request a consultation or quote
Appointments are currently booking 7–10 days out.
Call/text now to secure your slot before they’re gone.
Let’s make sure your property is valued the right way—not just the fast way.
November 30 2025
Your 2025 Guide to Home Appraisals, IRS Valuations, and Real Estate Consulting in Atlanta
When it comes to understanding property values—whether you’re settling an estate, planning for divorce, appealing property taxes, or preparing to buy or sell—working with a qualified residential real estate appraiser is essential. At REI Valuations, we provide expert, court-defensible reports for a wide range of valuation needs across Atlanta, Georgia.
In this guide, we’ll break down key services like date of death and IRS appraisals, investment property valuations, expert witness testimony, and consulting for investors—while also covering the average cost of home appraisals in 2025 and what to expect when working with a local appraisal company near you.
What Is a Date of Death or IRS Appraisal?
A Date of Death Appraisal is a formal residential valuation used to establish the fair market value of a property as of the date someone passed away. These reports are commonly required for:
We prepare both retrospective and current fair market valuations, with careful attention to IRS guidelines and USPAP compliance. These are also known as IRS appraisals or estate appraisals, and they’re crucial for avoiding tax penalties or future disputes.
Learn more about probate and estate appraisals in Atlanta.
Investment Property Appraisals & Real Estate Consulting
If you’re a real estate investor, whether flipping, renting, or holding, getting an accurate valuation can mean the difference between profit and loss. Our investment property appraisals help with:
In addition to valuations, we offer real estate consulting services that include:
These services are designed for investors who want more than a number—they want a roadmap.
How Much Does a Home Appraisal Cost in 2025?
The average cost of a home appraisal in 2025 depends on the complexity, purpose, and property type. Here’s what you can typically expect in the Atlanta metro area:
A standard single-family home appraisal usually ranges from $450 to $650.
Divorce appraisals often cost between $500 and $750, depending on report detail and complexity.
Probate or estate appraisals generally fall between $500 and $850, especially if IRS compliance or retrospective valuation is needed.
Tax appeal appraisals are usually around $400 to $700, based on county requirements.
Investment property appraisals may run from $550 to $950, particularly if multiple units or income analysis is involved.
Expert witness and testimony services are available upon request and quoted individually depending on the scope of the case.
Expert Witness Testimony & Forensic Appraisals
Need a valuation expert witness for court or arbitration? Our appraisers are trained to provide clear, unbiased, and well-supported opinions for:
We also provide forensic appraisal services for cases involving suspected deed fraud, misrepresentation of value, or improper transfers. All reports are built with expert-level narrative analysis, charts, and supporting documentation.
Explore expert witness and litigation support services.
Divorce, Probate, and Local Residential Appraisals in Atlanta
We specialize in high-sensitivity valuation services including:
Divorce appraisals: Clear, third-party valuations for equitable division
Probate appraisals: IRS and court-compliant valuations for estate settlement
Pre-listing and FSBO appraisals: Set the right price before you list
PMI removal appraisals: Eliminate unnecessary mortgage insurance
As a local appraisal company in Atlanta, our deep market knowledge ensures you get a realistic, supportable value based on the latest market trends—not just a number spit out by a national firm.
We’re not just appraisers—we’re valuation experts who serve homeowners, attorneys, investors, and financial professionals across the Atlanta metro area. When you search for a “valuation company near me,” we aim to be the local expert you can trust for:
We handle all types of non-lender residential appraisals—whether for legal, financial, or strategic planning purposes.
Whether you need a Date of Death Appraisal, a divorce valuation, or a consultation on your next flip or rental, our team at REI Valuations is ready to help.
Serving all of Atlanta, GA and surrounding counties
Call us at 4046923878
Request your home appraisal now
September 30th 2025