How an estate home gets valued

The number for the court: the probate referee

In a full probate, the court assigns a probate referee, a state-appointed appraiser, to value the house and the estate's other non-cash assets as of the date of death. That figure goes on the Inventory and Appraisal the court requires.

Two things surprise families. The mortgage isn't subtracted: the referee values the whole house. And a later sale price doesn't change it, because the number is tied to the date of death.

The referee's fee is set by law at one-tenth of one percent of the value appraised, with a $75 minimum and a $10,000 cap unless the court allows more. On a $900,000 house, that's about $900.

For the newer primary-residence petition (a home worth up to $750,000, for deaths on or after April 1, 2025), the family picks a referee from the county's list instead. Families close to the $750,000 line are the ones who get surprised, so it pays to know the number before anyone files.

The number that can set a floor: a court-confirmed sale

If the court has to confirm the sale, usually because the personal representative has limited authority, the price has to be at least 90% of the appraised value, and that appraisal has to be dated within a year before the confirmation hearing. So the house may be appraised again closer to the sale.

With full authority under the Independent Administration of Estates Act, the sale usually goes forward with a Notice of Proposed Action instead, and the 90% rule doesn't apply.

The numbers for taxes

The date-of-death value usually becomes the heirs' new cost basis (the "step-up"), which matters for capital gains when the house sells. A number that's too low can cost money later. Accurate is the goal, not low.

Separately, the county assessor usually reassesses an inherited home for property tax. Under Proposition 19, a child or grandchild who moves in as their primary residence may keep part of the old tax base, with limits and deadlines.

Both are questions for your CPA or your attorney.

The number that sells the house: what a buyer will pay

That's set later, by the market, and it turns on things no appraisal form or website captures: the finishes, the flow from room to room, how the light comes in, the pros and cons a buyer feels the moment they walk through the front door. Condition and prep matter as much as the address. A house that's cleared, cleaned and repaired sells to a different buyer than one with a lifetime of belongings still inside.

"For a number you can actually rely on, I need to walk the property with you." DB

A Zestimate is none of these

It's an algorithm's estimate. Zillow's own published figures put its typical miss for homes that aren't on the market at around 7%. On a $900,000 house, that's about $63,000 either way. An algorithm can't see inside the house.

If the house is in a trust

If the house is held in a living trust and the court isn't involved, there's usually no probate referee. The trustee still needs a date-of-death value for taxes, usually from a licensed appraiser. Ask your CPA what kind of appraisal you need.

Where DB fits

DB doesn't replace the referee or your appraiser. What he does is walk the house with you and give you an honest pricing opinion: what it would likely sell for as it stands, what it could sell for after the right prep, and what that prep would cost. No cost, no obligation. Call DB at 310-895-9018, or start with the Estate Quick Check.

For educational purposes only. DB (David Bruce) is not an attorney, CPA or appraiser, and nothing on this page is legal or tax advice. Please discuss legal matters with your attorney and tax questions with your CPA. This page reflects California rules as of October 2026.