Property Appraisal for Inheritance in Georgia: What Heirs Need to Know

If you inherited real estate in Georgia, you need a professional appraisal establishing the property's market value as of the date of death. That single number sets your stepped-up tax basis under IRC § 1014, anchors any buyout between heirs, supports the executor's filings, and protects you when you eventually sell. This guide explains when heirs need an appraisal, how retrospective date-of-death valuation works, and what it typically costs in Georgia.

Key Takeaways

• The date-of-death value is the number that matters: It becomes the heirs' stepped-up basis under IRC § 1014 and drives capital gains when the property sells
• A retrospective appraisal is standard practice: Georgia appraisers routinely value property as of a past date, even years back, using sales from that period
• Georgia has no state estate or inheritance tax: Heirs deal with federal rules and Georgia probate procedure, not a state death tax
• Form 706 applies only to large estates: The federal estate tax return matters for estates above the federal exemption, which is set at fifteen million dollars per person for 2026 deaths; confirm current figures with a CPA
• Dividing property among heirs needs one neutral number: An independent appraisal prevents the sibling buyout from becoming a family dispute
• Zillow-type estimates do not hold up: The IRS, probate courts, and family attorneys expect a signed appraisal by a state-certified appraiser
• Typical Georgia cost: $450 to $800 for a residential date-of-death appraisal, depending on complexity and how far back the effective date is

Why Inherited Property Needs an Appraisal at All

Under IRC § 1014, property acquired from a decedent generally takes a basis equal to its fair market value at the date of death. This is the stepped-up basis, and it is one of the most valuable provisions in the tax code for heirs.

Here is the mechanics with round numbers. Your mother bought her Cartersville home decades ago for $60,000. At her death it was worth $340,000. Your basis is not $60,000; it steps up to $340,000. If you sell a year later for $355,000, your taxable gain is roughly $15,000, not $295,000.

But that only works if you can prove the $340,000. The proof is a retrospective appraisal with a date-of-death effective date, prepared by a certified appraiser. Without it, you are estimating basis from tax assessments or online guesses, and if the IRS examines the sale, weak support becomes your problem. The appraisal typically costs a few hundred dollars and protects a number worth many times that.

An appraisal also serves the estate itself: the executor's inventory, distribution decisions among heirs, and, for large estates, the federal estate tax return.

How a Retrospective Date-of-Death Appraisal Works

A retrospective appraisal answers this question: what would this property have sold for on the date the owner died? The inspection happens today, but the analysis is anchored to the past.

The appraiser:

1. Inspects the property now, documenting its condition and features, and interviews family about the condition at the date of death. If the roof was replaced after death, the appraisal values the old roof.
2. Researches sales from the relevant period. For a death in March 2024, the evidence is sales that closed around March 2024. Later sales generally cannot drive the value, because a buyer on the effective date could not have known about them.
3. Adjusts and reconciles exactly as in a current appraisal, then reports a value opinion with the past effective date clearly stated.

Effective dates several years back are workable. Georgia MLS systems, deed records, and the appraiser's own files preserve historical sales data. What matters is engaging an appraiser experienced in retrospective work, because blending in post-death market movement is the classic error that gets these reports rejected.

If the estate must file Form 706, the executor can alternatively elect the alternate valuation date under IRC § 2032, generally six months after death, in limited circumstances where it reduces both the estate value and the tax. That election is a CPA and attorney decision; the appraiser's job is to value whichever date the estate's advisors specify.

Georgia Probate and the Executor's Role

In Georgia, the estate is administered through the probate court of the county where the decedent resided, and the executor or administrator has a fiduciary duty to identify and manage estate property. An independent appraisal helps the executor:

• Document the inventory with a defensible value rather than the county tax assessment, which is an assessment ratio figure, not market value
• Treat heirs even-handedly. When one heir keeps the house and others take cash or other assets, the appraisal sets the trade
• Support the estate's tax filings, including the basis reported when estate property is later sold
• Defend decisions. If a beneficiary later claims the house was distributed or sold too cheaply, the executor's protection is the independent appraisal in the file

One caution for heirs and executors alike: never tell the appraiser what number you are hoping for. A credible appraiser will not take a target, and a report shaped around one collapses the first time an attorney, the IRS, or an unhappy sibling examines it.

Dividing Inherited Property Among Multiple Heirs

The most common inheritance situation in my Georgia practice is three siblings and one house. One wants to keep it, two want their share in cash. Everything depends on a value all three will accept.

The clean process:

1. Agree in advance to hire one independent appraiser none of the heirs has a prior relationship with, and agree in writing to use the appraised value for the buyout.
2. Order a date-of-death appraisal, and a current-value appraisal if time has passed. The date-of-death value sets basis; the current value sets the buyout price if the market has moved since death.
3. Split costs evenly. Shared cost reinforces that the appraiser works for no single heir.

When heirs cannot agree, Georgia law allows a partition action, and inherited property held by multiple heirs may fall under Georgia's Uniform Partition of Heirs Property Act, O.C.G.A. § 44-6-180, which requires a court-ordered appraisal to establish value before any forced sale. It is far cheaper to agree on one appraiser up front than to litigate to the same destination.

Quick Reference: Inherited Property Appraisals in Georgia

Question	Answer
Effective date	Date of death (or IRC § 2032 alternate date if elected)
Sets tax basis under	IRC § 1014 stepped-up basis
Georgia estate tax	None; Georgia has no estate or inheritance tax
Form 706 needed	Only above the federal exemption ($15 million per person for 2026 deaths) or for portability elections
Typical cost	$450 - $800 residential; more for complex or long-retrospective work
Typical turnaround	7-14 business days from inspection
Who orders it	Executor, administrator, heir, or the estate's attorney or CPA
Heirs dividing property	One neutral appraisal, costs shared, agreed in writing

About the Author: 25 Years of Appraisal Review

Scott D.W. Wiley is a Georgia Certified Residential Real Property Appraiser (CR432840) with 25 years of experience as a review appraiser. He has reviewed thousands of estate and date-of-death appraisals and knows the errors that get them challenged: post-death sales used as evidence, condition assumptions with no support, and values that quietly track what a family hoped to hear. His retrospective appraisals for Georgia estates are built for the readers who will actually test them: the probate court, the CPA, the IRS, and the heirs themselves.

Order an Inheritance Appraisal

If you have inherited property in Metro Atlanta or Northwest Georgia, or you are the executor of an estate that includes real estate, request an estate appraisal. Tell me the county, the property type, and the date of death, and I will confirm the fee and timeline before you commit.

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People Also Ask: Inherited Property Appraisal Questions

Do I need an appraisal for inherited property in Georgia?

Almost always yes. The date-of-death appraisal establishes your stepped-up basis under IRC § 1014, supports the executor's filings, and provides the neutral number for any buyout among heirs. Skipping it saves a few hundred dollars now and risks a tax dispute later.

How far back can a date-of-death appraisal go?

Years, when necessary. Georgia sales records and MLS archives allow retrospective valuation well into the past. The work takes longer as the date recedes, but a competent appraiser can support an effective date from five or more years ago.

Does Georgia have an inheritance tax?

No. Georgia has no inheritance tax and no state estate tax. The relevant taxes for most heirs are federal: capital gains when the property sells, measured against the stepped-up basis, and the federal estate tax only for estates above the exemption.

Can heirs just use the county tax assessment as the value?

It is a poor idea. Georgia assessments are calculated for property tax purposes at a 40 percent assessment ratio and often lag the market. Courts, CPAs, and the IRS give weight to a certified appraisal, not an assessment notice.

What if the house sold shortly after death?

An arm's-length sale close to the date of death is strong evidence of value, and in some cases the sale price itself serves as the value. Ask the estate's CPA; if any meaningful time passed or the sale was not at arm's length, a retrospective appraisal is still the safer support.

FAQs: Inheritance Appraisals in Georgia

One appraisal or two: date of death and current value?

If heirs are transacting today and the death was more than a few months ago, get both. The date-of-death value sets basis; the current value prices the buyout. Ordering both from the same appraiser at the same time usually costs less than two separate engagements.

Who should hire the appraiser when there are several heirs?

Ideally the executor, with all heirs agreeing in writing to accept the appraised value. When heirs each hire their own appraiser, you often buy two defensible but different opinions and a new argument.

The house was full of belongings and in rough shape. Does that change the appraisal?

Personal property is excluded; the appraisal values the real estate. Condition at the date of death, including deferred maintenance, absolutely matters and should be documented with photographs and family knowledge so the condition adjustments are supportable.

Do you appraise inherited rental or investment property?

Yes. Residential rental property, including 2-4 unit buildings, adds income analysis to the retrospective work. The date-of-death value still controls basis, and market rent from the effective-date period becomes part of the evidence.

Will you talk to our CPA or probate attorney?

Yes, and it usually improves the result. The appraiser needs the correct effective date, the intended use, and the intended users named in the report, and those come from the estate's advisors.