The effective date of a valuation is the specific date as of which the value is determined. Different from the report date — valuations can be performed retrospectively to establish value at an earlier point.
A valuation "as of" June 1, 2020 reflects market conditions on that specific date, regardless of when the valuation was performed. Used for estate tax, inheritance, litigation, and retrospective tax matters.
For LA multifamily inheritance, the critical effective date is the decedent's date of death — establishing stepped-up basis. Get a formal appraisal dated to that specific date; valuations dated later (e.g., at sale) may not serve the tax purpose.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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