A retroactive appraisal, also called a retrospective appraisal, values a property as of a date in the past rather than today. In estate work, the effective date is the owner’s date of death, even if the appraisal is being prepared months or years later. Appraisal standards specifically permit this. The appraiser researches comparable sales that closed around the date of death, analyzes market conditions from that period, and considers the property’s condition as it existed at that time. Retroactive appraisals are common because families often do not realize they need a date of death value until an attorney or CPA asks for one, sometimes long after the death. They are used to document stepped-up basis, support amended or late tax filings, settle trust accountings, and resolve disputes among heirs. The report looks like a standard appraisal but clearly states the past effective date and relies on historical data rather than current listings.
