What is a Retrospective Appraisal and When Do You Need One?

When most people think of a home appraisal, they picture someone assessing a property’s current market value. But what if you need to know what a property was worth in the past—say, on the date a loved one passed away, during a divorce settlement, or at the time of a historical transaction? That’s where a retrospective appraisal comes in.

In this article, we’ll break down what a retrospective appraisal is, when you might need one, and why it’s crucial to have a certified professional conduct it.

What is a Retrospective Appraisal?

A retrospective appraisal is an evaluation of a property’s market value as of a specific date in the past. It relies on historical data, including comparable sales, local market trends, and economic conditions that were in place at that point in time.

Unlike standard appraisals, which assess current value, retrospective appraisals are anchored to a past date—commonly referred to as the effective date of the appraisal.

Common Scenarios Where You Need One

1. Estate Settlement / Probate

When someone passes away, the Canada Revenue Agency (CRA) requires an assessment of the fair market value of real estate as of the date of death. This is necessary for estate administration, calculating taxes, and distributing inheritance.

A retrospective appraisal provides official documentation for the Estate Information Return (EIR) under Ontario’s Estate Administration Tax Act.

2. Capital Gains Tax Reporting

If you’re selling an inherited or gifted property, the CRA may ask you to report the property’s value at the time it was inherited. A retrospective appraisal helps establish the “adjusted cost base” to ensure accurate capital gains tax calculations.

3. Divorce or Marital Separation

Property division can be contentious. A retrospective appraisal establishes the home’s value on the date of separation, which is often required by lawyers and the courts.

4. Litigation or Legal Disputes

In legal matters—such as disputes over asset division, back-dated agreements, or insurance claims—retrospective appraisals are often used to support or defend a financial position.

5. Corporate or Trust Accounting

Businesses or family trusts may need to assign past values to properties for accounting, compliance, or audit purposes.

How is a Retrospective Appraisal Performed?

A certified appraiser will:

• Conduct a physical or virtual inspection (if recent records/photos exist)

• Analyze historical comparable sales near the effective date

• Evaluate market conditions, mortgage rates, and inventory from that time

• Prepare a detailed, defensible report in accordance with CUSPAP standards

  
  

Why You Shouldn’t Estimate It Yourself

Online estimators like Zillow or REALTOR.ca don’t offer historical valuations. And using your best guess could trigger legal disputes or CRA audits.

Only a certified appraiser—like a member of the Appraisal Institute of Canada (AIC)—can provide a credible, court- and tax-acceptable valuation.

Need a Retrospective Appraisal in Ontario?

At Walson Consulting Inc., we specialize in certified retrospective appraisals across the Greater Toronto Area. Whether you're navigating probate, capital gains, or family law, we’ll deliver a reliable, well-documented report that helps you move forward with clarity and confidence.

Call us today at 905‑233‑2420 Or request a free quote at www.walsonconsulting.com