NJ Probate Appraisal

Probate is simply the legal procedure the estate goes through after someone passes.  If a will is in place, this process is likely easier.   One of the most significant parts of probate can be property valuation as homes can be one of the largest assets someone owns.   

Effective Date of Probate Appraisals

The appraisal for probate can have the effective date as the current date, date of death or both.  In our experience, it is common to have the valuation as of the date of death which would be considered a retrospective appraisal.  Whether it is a few weeks ago or 25 years ago, we can develop the fair market value for that specific time period.

If the effective date is further back in time, the appraiser will ask questions as to the condition of the home at that time.  Sometimes when the beneficiary calls for the probate appraisal, they don’t own the home anymore and significant upgrades have been made to it.  Details about the condition of the property at the effective date will help the appraiser to determine the fair market value.

Sales Comparison Approach for Probate Appraisals

Regardless of the effective date, the sales comparison approach is the leading way to develop the fair market value.  In this process, the appraiser will first inspect the property if they have access to it.  During the inspection the appraiser measures the home for square footage, plots the room count on the sketch, and takes notes on condition, quality, and amenities. 

If an inspection is not possible, the appraiser will use all the information from the tax records, Google street view and satellite imaging, and details from the beneficiary.  Another source of information is old listings on the Multiple Listing Service (MLS).  Those can be a wealth of information including interior photos depicting the condition and quality of the property.

Once all of the information is gathered about the property, the appraiser will then search the MLS to find similar sales that are close in proximity and that ideally have a recent date of sale that is close to the effective date.  Sometimes these are hard to find and the appraiser searches farther back in time or farther out in distance.  Farther back in time is preferred as it is easier to make a market adjustment with time versus a location adjustment. 

After the comparable sales are selected, the appraiser will then compare the different attributes of the sales to the subject property.  Monetary adjustments are made for the differences and an adjusted value is given per each comparable.  The appraiser then views the adjusted values for each comparable and reconciles the fair market value based on this range. 

Experts in NJ Probate Appraisals

With over 20 years of experience, we have performed many appraisals for probate purposes.  Current date and retrospective appraisals are our specialty.  If you are in need of a probate appraisal in NJ, please contact us at 908-233-1337 for the most accurate valuation.  We are happy to help. If you would like more information on estate appraisals, please click this link.