602-312-9571Most appraisals answer a simple question: what is this home worth today? But sometimes the date that matters isn’t today. An estate needs the value on the day a parent passed away. A divorcing couple needs a value tied to a date in their case. A trustee needs to know what a house was worth when it went into a trust. That is the job of a retrospective appraisal.
This guide explains what a retrospective appraisal is, when Arizona homeowners and their advisors typically need one, and how an appraiser can value a home “as of” a date that has already passed. It comes from Firebird Appraisals & Consulting in Gilbert. Our lead appraiser, Gabe Trevizo, is an Arizona certified appraiser (license 22146) and VA designated appraiser who has been appraising homes across Maricopa and Pinal counties since 2005.
What Is a Retrospective Appraisal?
A retrospective appraisal is an appraisal with an effective date in the past. The report is written today, but the opinion of value reflects the market as it stood on the earlier date. You may also hear it called a “historical appraisal,” a “past-date appraisal,” or, in estate work, a “date-of-death appraisal.”
Every appraisal has two dates. The report date is when the appraiser signs the report. The effective date is the date the value applies to. In a typical purchase or refinance appraisal, those dates are only days apart. In a retrospective appraisal, the effective date might be months or even years earlier.
When Do You Need a Value “As Of” a Past Date?
The need usually comes from a legal, tax, or financial question that is tied to a specific moment. Common situations include:
- Inherited homes and estates. When someone passes away, the estate or heirs often need the home’s value as of the date of death. That value can matter for settling the estate and for the heirs’ cost basis. Our post on the step-up in basis on an inherited Arizona home explains why that date matters, and our estate and date-of-death appraisal page covers the service.
- Divorce. Depending on the case, attorneys may need the home’s value as of a specific date rather than today. A divorce appraisal can be completed with the effective date your attorney specifies.
- Trusts. Trustees sometimes need to document what a property was worth when it was transferred into or out of a trust.
- Bankruptcy. A case may call for the home’s value as of the filing date. See our bankruptcy appraisal page for details.
- Partnership and co-owner matters. When co-owners split up or a partner is bought out, the agreement may point to a value on a particular date.
In each case, your attorney, CPA, or other advisor is the right person to tell you which date the value should be tied to. The appraiser’s job is to give a credible, well-supported opinion of value as of that date.
How Appraisers Value a Home in the Past
A retrospective appraisal uses the same basic approach as any residential appraisal, with one important twist: the appraiser has to put on the market’s “glasses” from the effective date.
Comparable sales from around the effective date
Instead of using sales from the last few months, the appraiser looks for comparable sales that closed around the effective date. Sales that happened well after the effective date generally aren’t something a buyer could have known about at the time, so the analysis focuses on what the market looked like then.
Market conditions at that time
Phoenix-area home values can move quite a bit from one season or year to the next. The appraiser studies the trend around the effective date, such as whether prices were rising, flat, or softening, and adjusts the comparable sales accordingly.
The home’s condition on that date
This is often the hardest part. The home may have been remodeled, repaired, or allowed to decline since the effective date. The appraisal needs to reflect the property as it was, not as it is now. That’s why the information you provide matters so much.
What Information Helps
The more the appraiser knows about the home’s condition on the effective date, the stronger the report. Helpful items include:
- Photos or videos from around the effective date, including the kitchen, baths, flooring, and yard
- A list of any work done since then, with approximate dates, such as a new roof, HVAC replacement, remodel, or pool resurfacing
- Any prior listing information, inspection report, or earlier appraisal you may have
- Details about additions, casitas, or enclosed patios and when they were built
- The exact effective date, in writing, from your attorney, CPA, or the court documents
If the home has been sold since the effective date, the appraiser may still be able to complete the assignment using records, photos, and an exterior view. Talk with us about the details, and we’ll let you know what’s possible.
Can the Home Have Changed Since Then?
Yes, and that’s common. Suppose a parent passed away two years ago and the family has since replaced the flooring and updated the kitchen before listing the home. A date-of-death appraisal should value the home with the original flooring and kitchen, because that’s what existed on the effective date. The appraiser will note the assumptions used, so anyone reading the report understands how the condition was determined.
The reverse can happen too. A home that has fallen into disrepair since the effective date may have been in better shape back then, and the report should reflect that earlier condition when the evidence supports it.
Retrospective Appraisals Across Maricopa and Pinal Counties
Based in Gilbert, Firebird Appraisals & Consulting completes retrospective appraisals throughout Maricopa and Pinal counties, including Gilbert, Mesa, Chandler, Phoenix, Queen Creek, and San Tan Valley. See our full service area for more cities, or visit our retrospective appraisal page to learn more about the service.
Frequently Asked Questions
How far back can a retrospective appraisal go?
It depends on whether reliable sales data and information about the home’s condition are available for that date. Share the date with us and we’ll tell you whether it’s workable.
Is a retrospective appraisal the same as a date-of-death appraisal?
A date-of-death appraisal is one type of retrospective appraisal. The effective date is simply the date the owner passed away.
Does the appraiser need to see the inside of the home?
An inspection is helpful when the home is still available, but the appraiser has to consider its condition on the effective date. Photos and records from that time are often just as important.
Who decides the effective date?
You and your advisors do. Your attorney, CPA, or the court documents should specify the date the value needs to reflect.
How long does it take?
Typical turnaround is about five business days from the inspection, once we have the effective date and the information about the home.
Need a Value As Of a Past Date?
Get a credible, independent opinion of value tied to the date that matters. Call Firebird Appraisals & Consulting at 602-312-9571 or request a quote online.