Should an Executor Get a Home Appraisal Before Selling a Parent’s House?

We provide estate and probate appraisals several times per week. It is important that, before you list a parent's home as an executor, you are clear as to the market value of the property at the time of death and at the time of listing.

In most estates, the house is the most emotional and the most valuable asset. You can create problems by moving too quickly, and you can create problems by moving too slowly. A clear, well-documented market value appraisal from an AIC appraiser is an essential starting point.

Why executors should pause before listing

Listing a property is not simply a sales decision. For an executor, it's part of properly and carefully administering the estate. The beneficiaries may have very different views as to value, timing, the extent of any repairs, and whether the property should remain in the family. If the executor relies on nothing but informal opinions and assumptions, those decisions can be challenged later.

What to clarify first

Before listing a parent’s home, an executor should clarify the following: What is the home likely worth in the current market? Does the estate need a formal appraisal for documentation, tax, legal, or beneficiary-related reasons? Is one beneficiary interested in buying the property? Are there timing pressures related to carrying costs, insurance, financing, or maintenance? Would repairs or cleanup materially affect marketability or value?

Why an appraisal can help before listing

An independent market value appraisal can help the executor to arrive at a fair market value for the property based on the property itself, on recent comparable sales and on the current market. This can be particularly important if the estate has to demonstrate later that the decisions taken were reasonable and based on evidence. It can also assist the executor in not setting an expectation around a figure that's too high, too low or one which is driven by emotion rather than market evidence.

When an appraisal is especially useful

An appraisal is often of particular use when there's a dispute among family members as to what the property is worth, when one of the beneficiaries wants to buy the property, when the market is in a state of flux, or when the executor is looking for some form of documentation prior to engaging with agents or accepting any offers.

Where Abacus can help

Abacus Appraisals provides independent residential market value appraisals and valuations for executors, estates, and probate. Where a family home is part of the estate, a professional appraisal is of real value in terms of providing some clarity prior to the listing process.

FAQ

Should an executor get an appraisal prior to putting a house on the market? Yes. It can help establish the market value and reduce the risk of later disputes about price and fairness.

Can a Realtor's opinion substitute for an appraisal? No. A Realtor's market price and marketing opinions may help list and sell a property, but an independent appraisal of market value provides certainty and is recognized by the courts and the Canada Revenue Agency. For high-value estates, hiring an appraiser is especially important.

What if one of the beneficiaries wants to keep the house? This is one situation where you should obtain an independent market value appraisal before moving forward with any transaction.