Arizona Probate: When the Personal Representative Needs a Home Appraisal

If you’ve been appointed personal representative (executor) of an estate in Arizona and the estate includes a house, one of your early jobs is figuring out what that house was worth. A residential real estate appraisal is the usual way to document it. This article explains where the appraisal fits in Arizona probate, in plain language. Your probate attorney is the one to confirm what your estate needs.

Why probate needs a value for the home

Arizona’s probate code asks the personal representative to prepare an inventory of the estate’s property, listing the fair market value of each item as of the date of death. The inventory is generally due within about 90 days after the personal representative is appointed (A.R.S. section 14-3706 and the Arizona probate rules), and it can be filed with the court or sent to the heirs or devisees. The law also lets the personal representative hire a “qualified and disinterested appraiser” to find the date-of-death value of any asset whose value may be in reasonable doubt (section 14-3707). A house is usually the asset where that help matters most.

The home is often the largest asset in the estate, so its value matters for:

• The inventory filed with the court or given to interested persons.
• Dividing the estate fairly between heirs, especially if one heir keeps the house and buys out the others.
• Taxes later: the heirs’ cost basis is usually the date-of-death value (ask your CPA).
• Selling the home: a documented value helps show the sale price was reasonable.

What the appraisal should show

For probate, the report should:

• Use the date of death as the effective date (a retrospective appraisal), unless your attorney asks for a different date.
• Describe the home as it was on that date, not after clean-out or repairs.
• Be prepared by a state-certified appraiser following USPAP, the professional appraisal standards.
• Explain the comparable sales and adjustments clearly enough for the court, the heirs and the CPA to follow.

Appraisal or “just a CMA”?

A real estate agent’s comparative market analysis is free and useful for pricing a listing, but it isn’t an independent appraisal. When heirs disagree, when a sibling is buying out the others, or when the value will support a tax basis, an independent appraisal carries more weight and is easier to defend.

When to order it

Earlier is usually easier:

• The home still looks the way it did on the date of death.
• You can fold the value straight into the inventory.
• Heirs get a neutral number before anyone forms strong opinions.

If the home has already been cleaned out, repaired or even sold, a retrospective appraisal is still possible. Share photos and records of the home’s condition at the date of death.

What to have ready

• The property address and the date of death.
• Your role (personal representative, trustee, heir) and your attorney’s name if they’ll receive the report.
• Access to the home, or photos if it has changed or been sold.
• Any notes on updates, damage or deferred maintenance as of the date of death.

Common questions

Does every probate need a formal appraisal? Not always. Your attorney will tell you what your estate requires. Many personal representatives choose one anyway because it protects them if an heir later questions the value.

What if the house is in a trust instead of probate? Trustees often need the same date-of-death value for the trust’s records and the beneficiaries’ tax basis. The appraisal works the same way.

One heir wants to keep the house. Can the appraisal support a buyout? Yes. An independent value is the usual starting point for a buyout between heirs. See our co-owner and heir buyout appraisals.

Do you work with probate attorneys? Yes. We prepare appraisals for personal representatives, trustees, heirs and their attorneys throughout Maricopa County. See services for attorneys and CPAs.

Order an estate or probate appraisal

West Valley Appraisal Services prepares estate, probate and date-of-death residential real estate appraisals throughout Phoenix / Maricopa County, Arizona.

Learn about estate and probate appraisals, see date-of-death appraisals, or call (602) 717-8450.

Written by Jason Clow, State Certified Residential Appraiser #21559. This article is general information, not legal or tax advice. Ask your probate attorney about the requirements for your estate.