Historical Property Valuation
Sometimes, people inherit property but do nothing with it for 10, 15, or even 20 years. They may not update the records at the county hall until they need to sell the property. In these cases, a historical valuation is required.
Challenges of Historical Valuation
- If data is available, the process is easier.
- If records predate the county’s computer system, extra research is needed.
- Finding old records may take longer, leading to additional charges for extra work.
Sometimes, it can be easy. Usually, it is not too hard if the data is there. That’s the trick! Is the data even there? If the records go back beyond the point at which property records were entered into the county computer system, then I really have to go digging. In that case, there is an extra charge for the time, since it does take a lot longer.
Every property can be appraised in some way or another.
How Historical Valuations Work
- If a home changed ownership 20 years ago due to a death, we must determine its value at that time.
- We use old records, newspaper clippings, and historical data to establish past value.
- Understanding the economic and market conditions at the time of transfer is crucial.
If the house changed hands, say, 20 years ago as a result of a death, I need to establish the value of that property at that time. This can be established by looking at old records, and in some cases, even newspaper clippings. What was the environment at that time? What sorts of things were going on at the time of the homeowner’s death and the transfer of the home?
Why Past Valuation Matters Today
- Your tax payments have been based on the property’s value when it was transferred, not today’s value.
- The official valuation date is set when ownership changed due to death.
What bearing, you might ask, would the valuation of a house 20 years ago have on an appraisal done today? Because, in our hypothetical case, you took possession of it 20 years ago, and that is what your tax payments have been based on, not its value today.
Appraisals for Recent Inheritances
- If the death occurred recently, the appraisal process is similar to a standard property valuation.
- Knowing who or what institution is receiving the appraisal report is important for legal and tax purposes.
- This is one of the first questions we ask when working with a new homeowner.
The clock started when that property transferred ownership due to death. I have to establish a valuation for it as of a particular historical date.
If the death occurred recently, my appraisal is done very similarly to any other appraisal. As with any court or tax service, I need to know who or what institution is receiving this appraisal report. That is one of the first questions I ask when meeting the current homeowner.
For accurate and thorough historical property valuations, A1 Los Angeles Home Appraisal is here to help!