How do you determine the value of an inherited property?

Determining Value: How do you Determine the Value of an Inherited Property?

Inherited

When you inherit a property, it’s important to determine its value for various reasons. Firstly, you need to know the value to inventory the asset in the estate, especially if it needs to go through probate. Secondly, if you’re sharing the inheritance with other beneficiaries, knowing the value is crucial for a fair division of the estate. Lastly, the fair market value is necessary to determine any taxable gain or loss when the property is eventually sold. There are several methods to determine the value of an inherited property. Asking local real estate agents for an estimate, getting a formal appraisal from a licensed real estate appraiser, and putting the property on the market are all viable options.

Key Takeaways:

  • Determining the value of an inherited property is essential for estate inventory and division.
  • Local real estate agents can provide estimates based on their knowledge of the market.
  • A formal appraisal from a licensed real estate appraiser offers a more accurate valuation.
  • Consider the property’s size, location, condition, and improvements when assessing its value.
  • Getting multiple estimates ensures a range of values for the inherited property.

Ask local real estate agents for an estimate

When it comes to determining the value of your inherited property, seeking the expertise of local real estate agents can be a valuable step. These professionals have a deep understanding of the local market and can provide you with an estimate based on their knowledge and experience.

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To begin the process, you can schedule a walkthrough of the property with multiple agents. During this walkthrough, the agents will assess the condition, features, and location of the property. They will also compare your inherited property to similar ones in the neighborhood, known as comps, to gauge its market value.

Once the walkthroughs are complete, the agents will provide you with written estimates based on their findings. It’s important to gather estimates from multiple agents to ensure you have a range of values to consider. By averaging these estimates, you can arrive at a reasonable value for your inherited property.

Get a Formal Appraisal from a Licensed Real Estate Appraiser

When it comes to determining the fair market value of your inherited property, a formal appraisal from a licensed real estate appraiser is your best bet. These professionals have the knowledge and expertise to provide an objective assessment of your property’s value, ensuring accuracy and reliability.

During the appraisal process, the real estate appraiser will consider various factors that impact the value of the property. These factors include the size, location, condition, and any improvements made to the property. By thoroughly evaluating these aspects, the appraiser can provide you with a comprehensive and unbiased valuation.

While getting a formal appraisal may come with a cost, it can be a necessary step, especially for certain types of properties such as commercial or income-producing properties. Furthermore, an appraiser’s valuation is often accepted as the fair market value by the IRS, making it valuable for tax purposes and estate settlement.

When searching for a licensed real estate appraiser, ensure that they are qualified and experienced in appraising properties in your specific location. This local expertise is essential, as property values can vary greatly between different areas. By choosing an appraiser familiar with the real estate market in Oregon or Washington, you can have confidence in the accuracy of the appraisal.

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