Estate and trust appraisals of commercial property in San Francisco
Commercial appraisal services / Estate and trust appraisals
A building in an estate needs a value for one interest on one date.
When the owner of a San Francisco income property dies, the CPA, the co-owners and the heirs each ask the executor or trustee for a number, the Assessor sets one of its own, and each means something different. This page covers the dates involved, what the death does to the property tax bill, and what to gather.
Discuss an estate or trust valuation | Call (415) 529-6155
The question behind the appraisal
The services page explains why a value for the whole parcel and a value for the decedent's interest are different assignments, and lists the first records to bring: see Estate planning and administration. This page adds the dates, the property tax rules and the local offices.
Three questions a rent roll cannot answer
Which date?
An estate can need more than one. The date of death is the usual date for tax basis and for a probate inventory. A buyout among heirs raises a current-date question. Ask the estate's attorney or CPA which date each user needs.
Which interest?
The decedent may have owned the whole parcel, an undivided share, or an interest in an LLC or partnership that holds title. A real estate appraisal values the real estate interest named in the engagement. It does not value a company.
Which income?
For a past date, the evidence is the leases in force, the rent collected, the vacancies and the expenses on that date.
What a death does to the property tax bill
A family may expect the parent-child exclusion to protect a commercial building that passes to the children. Since February 16, 2021, it does not. Proposition 19, which Revenue and Taxation Code section 63.2 puts into effect, limits that exclusion to a family home that was the parent's principal residence and becomes the child's, and to family farms. The State Board of Equalization's Proposition 19 summary says the law "Eliminates exclusion for other real property other than the principal residence". The San Francisco Office of the Assessor-Recorder is more direct: all other property, including commercial property, will be reassessed.
Its guide to property matters following an owner's death and its change in ownership page say:
- The death is the change in ownership, and the property can be reassessed as of the date of death. For property held in trust the date is also the date of death, not the date of distribution.
- Only the share that changed hands is reassessed. If the decedent owned half, half is reassessed at fair market value.
- A Change in Ownership Statement, Death of Real Property Owner (form BOE-502-D) is due at the Office of the Assessor-Recorder within 150 days of the date of death, or with the inventory and appraisal if the estate is in probate. Section 480 of the Revenue and Taxation Code is the reporting rule.
A building held in an LLC or partnership is not outside these rules. The Board of Equalization's Legal Entity Ownership Program explains that when one person comes to hold more than 50 percent of an entity, section 64(c) treats it as a change in ownership of the entity's California real property. Its example is a partner's death that shifts control to the survivor.
The Assessor reaches its own value. A date-of-death appraisal gives the executor or trustee an independent opinion for the same date, and the property tax appeal page explains how a new assessment is questioned. This is what the rules say, not advice: confirm how they apply with your attorney or CPA.
Federal tax uses the same date
The IRS generally sets an heir's basis in inherited property at its fair market value on the date of death. California has required no state estate tax return for deaths on or after January 1, 2005. The detail is on the date-of-death and tax-basis page.
Trusts: no probate does not mean no valuation
A living trust can keep a building out of probate. It does not remove the reassessment or the basis question.
Trust matters that need a judge go to the Probate Court of the Superior Court of California, County of San Francisco, at the Civic Center Courthouse, 400 McAllister St. Its trusts page explains that a beneficiary can ask the court to require a trustee to account for how the assets have been handled. The State Controller, who appoints probate referees, notes that a referee's service is "also available for non-probate trust administration". Whether to use a referee, an independent appraiser or both is for the trustee and the trust's attorney. For an estate in probate, read the probate page.
What to gather for an income property in an estate
| Bring or describe | Why it helps |
|---|---|
| The date of death and any second date your adviser names | Fixes the effective date or dates before research begins. |
| The deed, the trust pages naming the property, or the LLC or partnership agreement | Shows whether the estate holds the whole parcel, a share, or an interest in an entity. |
| The rent roll, leases and operating statements for the date, with rent actually collected | Describes the income on that date, not today's. |
| Capital work, repairs and any listing or offer since the date | Separates the building then from later events. |
| Who will rely on the report | Executor, trustee, co-owners, CPA or attorney, named before engagement. |
From the first call to the report
- Describe the property, the date of death, the interest held and who needs the value.
- Kevin O'Brien reviews whether the assignment fits and confirms the scope, fee and delivery estimate in writing.
- You supply the records for the date and arrange access.
- The report states the interest, the effective date, the intended use and users, and any assumption made where records were missing.
Appraisals are performed by Kevin O'Brien, MAI, SRA, California Certified General Real Estate Appraiser, License #3005065. A report gives an opinion of value for the agreed question. It does not decide who inherits, what tax is due or what the Assessor enrolls.
Fees and timing
The site's published fee guide says: "Commercial property appraisals in San Francisco with KO Commercial Appraisal San Francisco typically start around $2,000 and can exceed $6,000 for larger or more complex properties, depending on size, use, and unit count." The starting fees by property type and size are in How Much Does It Cost To Appraise A Commercial Property In San Francisco? That guide is not a quote: a past date, a partial interest and thin records each add research. If a filing date is close, see rush requests.
Start with the property, the interest and the date
Tell Kevin which San Francisco property is in the estate or trust, what share the decedent held, and the date your adviser has named.
Request the assignment scope | Call (415) 529-6155 | All commercial appraisal services
Published by KO Commercial Appraisal. Appraisals are performed by Kevin O'Brien, MAI, SRA, California Certified General Real Estate Appraiser, License #3005065.
Sources and rules cited on this page were checked on October 8, 2026. This is general information, not legal or tax advice, and not an appraisal of any property.
This page was written with AI assistance for KO Commercial Appraisal.