Determining the value of your home for a fair assessment can sometimes be difficult. Often the disposition of the marital home can become cantankerous as well.
There are ways to obtain a fair and partial appraised value when going through divorce.
An appraiser can be hired by both parties (on average an appraisal in Denver Metro will cost between $550 and $650). Often two appraisals will be needed in order to satisfy both parties. Typically, home values are based on the last 6 months of sales in your neighborhood and the condition of your home.
A qualified Real Estate Professional can create an “Opinion of Value” in lieu of an appraisal. This may save you a few hundred dollars and may/may not be as accurate as an appraisal that has been completed by a qualified appraiser.
You may be sharing in gained equity of the marital home. If so, the value of the home is very important.
If you both cannot agree upon a value for the home, a Judge may be called upon to determine the value. This may/may not be wise so it might be best to reach an agreement prior to sitting in front of a judge.
If one of you will be awarded the marital home, often a refinance will be required to take the other spouse off the mortgage. If a value has been agreed upon and written into the agreement don’t always assume the value that the mortgage company’s appraiser will match exactly to the appraisal you had completed through the divorce. Because appraisals can be subjective, the values can vary between the “divorce appraisal” and the “refinance appraisal”.
Whether you choose to sell or refinance your home, an appraisal is a very important factor in determining the home’s value.
Jan Parsons
Production Manager, NMLS #442729
jparsons@primelending.com
720-308-1320