A divorce is every couple’s worst nightmare, the dissolution of marriage which proves not only emotionally difficult but financially burdensome as well. When it comes to the biggest marital asset, the house, it is important to get an accurate valuation of the fair market price so the asset can be split up accordingly. Oftentimes, one spouse buys out the other spouse out of the mortgage and keeps the house.
Here are 3 ways you can value your home during the divorce:
1. Order a professional appraisal- Qualified appraisals are certified and licensed as well as impartial to the divorce proceeding. It is standard for an appraiser to use the Uniform Residential Appraisal Report which provides consistency and reliability when assessing the fair market value of the home. An appraisal might run $300-400 for one spouse however it is a worthwhile investment that will arm you with powerful information.
2. Getting ready to sell- A professional home appraisal will use the CMA (comparable market analysis) to compare the home to existing homes in the neighborhood as a means of deriving fair market value. A CMA that is independent of the real estate agent might be useful to give the divorcing couple an idea of how much their home would be worth in the market. While this does not negate the buyer’s appraisal for the lender, it does prepare the seller navigating market conditions.
3. Special circumstances- Sometimes the divorce proceedings become so contentious that the couple can’t agree on anything let alone a home appraiser. In these instances, a home appraisal might be ordered by each side and the family court either takes the average of both appraisals or the one closest to fair market value into consideration.
Divorce is a difficult time in your life, a home appraisal during that time shouldn’t be. If you have any questions about ordering a professional appraisal, CMA or finding a qualified, professional real estate appraiser contact Ray Hall today!