A Maryland personal representative may be told to “get a value” for an estate home. That request sounds straightforward until different people need the number for different reasons.
The estate may need a value tied to the owner’s date of death. The family may want to know what the home could sell for today. Before spending estate funds on repairs, the personal representative may also need to compare a likely as-is sale with a possible sale after improvements.
An appraisal, broker price opinion (BPO), and comparative market analysis (CMA) can each provide useful information. They are not interchangeable. The right starting point is: What decision will this valuation support?
What is an appraisal?
An appraisal is a formal opinion of value developed for a stated purpose by an appraiser. Its effective date is especially important in an estate.
For a Maryland regular estate, the personal representative generally files an inventory within three months after appointment. The inventory identifies probate property and reports its fair market value as of the date of death. If an appraisal is obtained for that purpose, it must address the actual date-of-death value.
That does not mean every Maryland estate property automatically requires a new independent appraisal. The Register of Wills describes permitted alternatives for certain real property inventory valuations, including the specified property tax assessment value and a qualifying arm’s-length contract sale price. Restrictions and facts matter, so the personal representative should confirm the appropriate approach with the estate attorney or Register of Wills.
An appraisal may also be requested for another purpose, such as a lender’s transaction. The assignment should be designed for that purpose; one appraisal should not be assumed to answer every estate question.
What is a CMA?
A comparative market analysis is a real estate professional’s analysis of comparable sales, current competition, and the property itself to help guide a pricing decision.
For an estate considering a sale, a CMA can help the personal representative discuss a realistic listing strategy. It may examine features such as location, size, condition, recent sales, and homes currently competing for buyers.
A CMA is useful when the question is, “How should we position this property in today’s market?” It is not a certified appraisal, and the personal representative should not assume it meets a formal filing or tax requirement.
What is a BPO?
A broker price opinion is a broker’s opinion of a property’s likely price for a defined assignment. It may be requested in a specified format and under particular assumptions.
For example, a BPO might consider what an estate property could bring as-is in the current market. An assignment might instead ask for an estimate based only on an exterior review, or ask the broker to consider a different condition scenario. Those differences affect how useful the result is for the estate’s decision.
A BPO is a broker’s opinion; it is not a certified appraisal. Before ordering one for a formal purpose, the personal representative should confirm that the person or institution requesting the value will accept it.
Date-of-death value and current sale value answer different questions
Suppose an owner died several months ago and the home is now being considered for sale. Market conditions may have changed. The estate may also have learned about repairs, water damage, or deferred maintenance since the death.
A value with a date-of-death effective date addresses a historical point in time. A current market estimate helps evaluate a decision being made now. The two numbers may differ without either one necessarily being incorrect.
This is why a request to “tell me what the house is worth” needs at least two follow-up questions:
- As of what date?
- For what purpose?
Which valuation should a Maryland personal representative request?
Use the decision as a guide:
The question you need answered | A useful starting point |
|---|---|
What value belongs in the estate’s filing? | Ask the estate attorney or Register of Wills which date, method, and documentation apply. An appropriate appraisal or permitted alternative may be needed. |
What listing price should we consider now? | Ask a real estate broker for a current market analysis and pricing strategy. |
What might the property sell for as-is? | Ask for a condition-specific market opinion, which may be provided as a CMA or BPO depending on the assignment. |
Would repairs likely improve the estate’s net result? | Compare supported as-is and improved sale scenarios against repair costs, holding costs, and time. |
This table is a planning guide, not a substitute for the estate’s legal or tax advice. A lender, court process, beneficiary dispute, or other circumstance may call for a particular kind of report.
A practical way to begin
Before paying for a valuation, write down the question the estate needs answered. Identify the required date, who will use the report, and whether the professional needs access to the interior.
Then share the facts that could change the analysis: occupancy, known damage, needed repairs, liens or mortgage information relevant to the assignment, and any deadline. Be clear about whether you want an as-is opinion, a potential value after improvements, or both.
A sound estate property strategy may involve more than one valuation because the personal representative is making more than one decision. The goal is to obtain the right information for each decision, with a clear record of what each number represents.
For a broader look at ownership, preservation, carrying costs, and sale choices, read What Happens to the House During Probate in Maryland?.
I’m Fred Dorsey, a Maryland real estate broker focused on probate, estate, and trust property. I help personal representatives understand a home’s condition, current market position, and real estate options. If an estate property decision is ahead of you, I offer a complimentary 30-minute probate real estate consultation.
This article is for general education and is not legal, tax, accounting, or appraisal advice. Consult the estate’s attorney and other qualified professionals about its specific requirements.
