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We know that settling an estate is not easy. Whether you are an executor, trustee, or professional advisor (accountant, attorney, etc), there are many different hurdles you have to overcome. You can count on us to handle the appraisal portion of the process quickly and with professionalism and integrity. We have worked with many attorneys, accountants, and financial planners in the area and are familiar with estate laws and the IRS’ rules and requirements for an appraisal. This can include the definition of value specific to them, the appropriate forms required for non-cash charitable contributions (Form 8283), etc. Don't risk your return being challenged by the IRS and have their experts refute the estate's valuation. This could end up costing the estate additional monies when filing the 706 Estate Tax return. Our goal is to make this process as painless as possible for you. In choosing Rowe Appraisal Group, you will be engaging a firm with Certified Residential Appraisers who have dealt with these situations before and can be assured that you will have an appraisal that will meet IRS and Illinois state agencies’ guidelines and requirements.
“Paul is unusual in that he takes the time to understand not only the property, but the important details of the neighborhood. I'm sure that's significant everywhere, but in Chicago the neighborhood, and often the block are critical to the real value of a property. He also understands that value is affected by the variety of uses a property can present. He's a rare breed, and an excellent appraiser!”
"Paul's appraisal gave us the confidence that we were making the right decision for our family with a large-scale remodel. Paul is timely, knowledgeable and thorough. Working with him was a highlight in what can be a stressful situation."
"Paul Rowe is a consummate professional. In appraisal work there are hard facts and there is nuance. Paul does not ignore factors that are outside of the facts that could influence the value of a piece of property - such as litigation regarding the property, conditions of the immediate neighborhood that might not be affecting other similar properties a few blocks away. Paul digs in, does his due diligence and is able to come up with a number that not only can be relied upon but can stand up in court (and has). Absolutely one the top appraisers in the Chicago metropolitan area."
Establishing a new tax basis: The "step-up in basis rule" says that the cost basis is equal to the value as of the date of death. This can be significant and can allow the beneficiary to avoid any unrealized embedded capital gains. We strongly recommend getting an appraisal as of the date of the first spouse's death to set the basis for capital gains. This creates a "pass through" to the surviving spouse and no taxes are due at that time. When the second spouse sells the property or dies, capital gains are due, but only for an increase over the basis established when the first spouse passed.
Example: Let's say a couple purchased their home 20 years ago for $250,000 and it has appreciated in value to $350,000 as of the date of death of the husband. An appraisal would help establish this new basis of $350,000. A surviving spouse sells the property a few years later for $350,000, she would not have to pay taxes on the $100,000 gain in value.
Non-tax purposes: Another reason is when the executor of the estate needs a value to partition the estate. When a decedent has children or multiple beneficiaries and owns multiple properties, it can be tricky. In a best case scenario, the siblings would agree to sell the properties and split the proceeds. Because an appraiser is by law an unbiased, disinterested 3rd party, they can be a great tool to use so that everyone is comfortable with the process. We have run into many situations where the siblings can't agree on a real estate agent to list the property because of certain previous relationships or disagreements on what the list price and strategy should be. An appraisal by a qualified appraiser can help ease some of these tensions. We have even been known to meet with the siblings after the appraisal has been delivered and answer any and all questions regarding the appraisal.
Example: Partitioning the estate can also result in needing two appraisals for each property. Let's say the date of death was 6 months ago. One appraisal would be needed for a value as of the date of death. If the beneficiaries decided they don't want to manage these properties and would rather sell, they would need a "current market value" as well. Often the market has not appreciated or depreciated significantly and the two values would be similar. In these cases, we can inform the client that the "date of death" appraisal could also be used to determine a list price for sale. In a volatile market with rapidly changing values, we use our best professional judgement when determining the scope of work and can offer a significant discount on the 2nd appraisal.
Probate: Most people try to avoid probate as it can be a long and costly process but often this is unavoidable. Sometimes a will has been left, but it may be contested, unclear, or invalid. Once in probate, the court will need to know what the cash value of the property is as of the date of death. They will typically require and rely on a appraisal by a licensed and certified appraiser that will provide a value so the estate can be divided equally. The appraiser is often appointed by the judge.
After graduating from Eastern Illinois with a Bachelor's Degree in Marketing and then 5 years in the Sales Industry, Paul finally found his calling in the Appraisal Profession. Over the last 10 years, he has been recognized nationally as a top appraiser, has been published in Working RE magazine, and currently sits on the Appraisal Advisory Panel for the leading provider of education in the Appraisal Profession.
This depends on the property type, number of properties, and complexity. We typically set up an inspection within a day or two and can have most standard residential appraisals completed within 2 business days of the inspection. Larger estates, commercial properties, and higher end complex properties can take longer.
Our fee is dependent on the complexity of the property as well as the type of property. Please call us for a quote.
Yes, all of our appraisers are licensed by the state of Illinois.
We have appraisers in many different areas of the greater Chicago market. Our main office is in Park Ridge, but we cover most of the greater Chicago area.
Yes, we have a commercial appraiser, Kevin, who has over 20 years experience appraising commercial properties.
This is an appraisal that has an effective date in the past. In regards to estates, the date is typically the date of death. We "time travel" back in time and determine what the value of the property was at that time using sales data prior to that date.
Disclaimer: We are not an attorney, CPA, or enrolled agent and have never played any of them on TV. Be sure to consult your tax advisor, attorney, or financial planner on the specific laws and regulations that pertain to your unique situation.