Retrospective Appraisals

A Retrospective Appraisal is a specialized valuation that determines a property's market value as of a specific date in the past. Unlike standard appraisals that assess current value, Retrospective Appraisals look backward in time to establish what a property was worth at a previous point—often months or years before the appraisal is conducted.

Key Aspects About Retrospective Appraisals

• Estate Settlement: One of the most common uses for Retrospective Appraisals is in estate settlements, where determining the property's value as of the date of death is crucial for probate proceedings, inheritance tax calculations, and equitable distribution among heirs. These are often called Date of Death Appraisals and provide an accurate baseline for estate tax reporting.
• Divorce Settlements: In divorce cases, a Retrospective Appraisal may be necessary to determine a property's value at the time of separation or another legally significant date. This helps ensure fair division of assets and provides a factual basis for property settlement agreements between the divorcing parties.
• Tax Matters: Retrospective Appraisals are essential in various tax situations, including capital gains calculations, property tax appeals, and gift tax assessments. By establishing the value at a previous point in time, these appraisals help taxpayers accurately report gains or losses and comply with tax regulations.
• Legal Disputes: When property disputes arise, Retrospective Appraisals can provide crucial evidence of a property's value at a specific time. These appraisals are often used in litigation involving property damage, contract disputes, or cases where determining historical value is central to resolving the conflict.
• Insurance Claims: After property damage from disasters or accidents, Retrospective Appraisals help establish the property's value before the damage occurred. This information is vital for insurance settlements and ensures property owners receive appropriate compensation based on pre-loss value.
• Specialized Methodology: Retrospective Appraisals require specialized knowledge and methodology. Appraisers must research historical market conditions, comparable sales from the relevant time period, and economic factors that influenced property values at that specific point in time, while disregarding subsequent market changes.
• Compliance Requirements: Retrospective Appraisals must adhere to specific professional standards and clearly state they represent a value opinion as of a past date. These appraisals often require more extensive documentation and research than standard appraisals to support their conclusions about historical property values.

Retrospective Appraisals require significantly more research than standard appraisals because the appraiser must reconstruct the market conditions that existed at the specified historical date. This includes identifying comparable properties that sold around that time, researching past economic conditions, and analyzing how these factors would have impacted the subject property's value.

For estate purposes, Retrospective Appraisals are typically needed within 2-6 months following the death of a property owner. However, they may be required years after the fact in situations involving amended tax returns, disputes among heirs, or delayed estate settlements. Our appraisers are experienced in conducting thorough research to provide defensible valuations even when significant time has elapsed.

In addition to estate purposes, Retrospective Appraisals are commonly used in divorce cases (to establish value at the date of separation), for tax purposes (such as establishing basis for capital gains), for insurance claims (to determine pre-loss value), and in legal disputes where historical value is relevant to the case.

In summary, a Retrospective Appraisal provides a professional opinion of a property's value as of a specific date in the past, based on the market conditions and property characteristics that existed at that time. These specialized appraisals serve as important documentation for legal, financial, and tax matters where establishing historical value is essential.