3 Commonly Asked Questions About Home Appraisals

July 8, 2021

If you own a home, you may be wondering about appraisals. The appraisal process is commonly done when you buy or sell a home, but you may need one for many reasons. If you think you may need a home appraisal in the near future, check out the answers to these three commonly asked questions.

1. How Much Does a Home Appraisal Cost?

The exact cost of an appraisal depends on many factors, but you can expect to spend about $600 to $1,000 in the greater NY area. Factors that can increase the cost of the appraisal include the size of the home, the type of home, the location, the condition, and how much work is required to do the appraisal.

The reason for the increased price is twofold. First, if the house is bigger and more complicated to appraise, it takes more time, and that will cost you more money. However, if the home is bigger or has some unique features that take time to appraise, you'll likely get a high appraisal, which can be used to boost the value of your home.

One downside to the appraisal process is that the appraiser must use the cost of nearby houses to help determine the value of your home. This can be problematic if your home is much nicer than the homes around you or if you live far from other homes.

2. When Should You Consider Getting a Home Appraisal?

When you purchased your home, you likely had an appraisal, but it's also a good idea to have your home appraised if you decide to sell it. This gives you a basic understanding of how much your home is worth, so you aren't scaring buyers away with outrageous prices or undercharging for your home and losing money.

Getting an appraisal can be especially helpful if you haven't had your home appraised since you bought it. If you've made upgrades and renovations, however, your home may be worth drastically more than you originally thought. However, there are other times that you may need an appraisal. If you choose to refinance or take out a home equity loan, the lender will likely require an appraisal. This helps determine exactly how much equity you own and how much you can borrow or refinance. You can use that money to reinvest in the home.

Finally, you may want an appraisal in situations that don't involve your home loan. For example, if you apply for other loans, showing that your home is valuable will make it better collateral. On the other hand, an appraisal can help with overpriced tax assessments if the house has been appraised too high on your taxes.

3. What Happens During the Appraisal Process?

During the appraisal process, someone will have to physically come to your home and inspect it. They may start outside by examining the exterior of the house, the roof, and the foundation for any signs of structural damage. While there, they will also take note of any missing gutters or poor drainage.

The appraisal continues inside the home, and the appraiser will want to see every room to look for signs of structural damage, water damages, or pest infestation. The appraiser will also take photos of every room to document the house in its current state.

After the inspection, a report is made and given to you. The report will state the value of your home according to the appraisal, but it will also list any repairs that should be made before the process of selling or refinancing can continue.

A good home appraisal can really boost the value of your home. Even if there are some problems, the appraiser can tell you exactly what you need to fix. If you would like to know more or if you are ready to request an appraisal for your home, contact us at East Coast Appraisal Service.

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What Is an IRS Step-Up Appraisal? A Plain-English Guide

May 28, 2026

When someone inherits property—whether it’s real estate, stocks, or other assets—one of the most important (and often overlooked) tax concepts is the “step-up in basis.” An IRS step-up appraisal is the process used to determine the fair market value of an asset at the time of the original owner’s death. That value becomes the new tax basis for the heir. Understanding how this works can save—or cost—significant money when the asset is eventually sold. What Does “Step-Up in Basis” Mean? “Basis” is essentially what an asset is worth for tax purposes. Normally, if you buy something, your basis is what you paid for it. But when you inherit property, the IRS allows that basis to be “stepped up” to the asset’s fair market value as of the date of death. Example: A parent buys a home for $100,000 decades ago At the time of their passing, the home is worth $700,000 The heir’s new basis becomes $700,000—not $100,000 If the heir sells the home for $710,000, they only pay capital gains tax on $10,000—not $610,000. That’s the power of the step-up. What Is an IRS Step-Up Appraisal? An IRS step-up appraisal is a formal valuation that establishes the fair market value of an inherited asset as of a specific date—usually the date of death. For real estate, this means a licensed appraiser evaluates: Comparable sales (comps) Property condition Market trends at that time Location and unique characteristics The result is a retrospective appraisal , meaning it determines value as of a past date, not the current market. Why Is It Important? A step-up appraisal is critical for several reasons: 1. Reduces Capital Gains Taxes Without a proper appraisal, the IRS may assume a lower basis, increasing taxable gains when the asset is sold. 2. Provides Documentation If the IRS ever questions the reported value, a professional appraisal serves as defensible evidence. 3. Helps with Estate Planning and Reporting Executors and heirs need accurate values for estate filings and distribution decisions. When Do You Need One? You typically need a step-up appraisal when: You inherit real estate and plan to sell it The estate did not already establish a value for tax purposes Significant time has passed since the date of death There’s potential for IRS scrutiny (high-value assets) Even if you don’t plan to sell immediately, getting the appraisal early can prevent headaches later. Date of Death vs. Alternate Valuation Date Most step-up appraisals use the date of death as the valuation date. However, in some cases, the estate may elect an alternate valuation date (six months later), if it reduces estate taxes. This decision is usually made by the estate’s executor in consultation with tax professionals. What Makes a Good Step-Up Appraisal? Not all appraisals are equal—especially when dealing with the IRS. A reliable step-up appraisal should: Be completed by a state-licensed or certified appraiser Follow Uniform Standards of Professional Appraisal Practice (USPAP) Clearly state it is a retrospective appraisal Include strong comparable sales data from the relevant time period Be well-documented and defensible Common Mistakes to Avoid Using current market value instead of date-of-death value Relying on informal estimates (like Zillow) Waiting too long to gather historical data Failing to get an appraisal at all These missteps can lead to disputes or higher taxes. Final Thoughts An IRS step-up appraisal might not be the first thing on your mind after inheriting property, but it plays a major role in determining future tax liability. Getting it right can mean the difference between a manageable tax bill and a costly surprise. If you’ve inherited property—or expect to—it’s worth consulting with a qualified appraiser and tax advisor early in the process. A little diligence upfront can protect you financially down the road.