In our experience, we have noticed that we are often involved in the happiest and, unfortunately sometimes, the saddest events of many peoples’ lives. We are with you when you buy your first home. We are there when you move up to the home large enough for your growing family, and finally, we are there when you buy that retirement home in the country or on the beach. Sometimes though, life throws an unexpected curve ball at you. If you need an appraisal for a divorce, we’ll be there for you, with the same caring professionalism you have grown to expect.
What’s the difference between an appraisal done for mortgage lending or for a divorce?
The answer is everything and nothing. The appraisal process itself is the same for all appraisal work. The difference is in the details, such as the desired effective date of the valuation.
Sometimes a divorce is amicable and other times it is anything but amicable. Either way, no divorce is fun. These are stress filled times for everyone involved. Except for us. Our job is relatively simple. We tell you the value of the real estate. We’ve done that every day of our professional careers. Your job is to make financial decisions based on your individual needs in light of the new situation.
Our estimate of market value will aid in the decision to either sell the property and split the proceeds, or have one spouse buy the other spouse out. If the purpose of the appraisal is to aid in the division of assets, we would like to point out that the appraised value is NOT a “net proceeds to seller” figure. An appraised value reflects “gross” sales price.
By definition, appraised value reflects the “most probable sales price” of the subject property. There are numerous seller expenses that are commonly associated with the sale of a property. These often include advertising, property maintenance, marketing expenses, Realtor commissions, Title insurance, taxes, attorney fees and other miscellaneous closing costs typically due to the seller.
We have found that these expenses tend to range from 6% of the gross sales price to over 10% depending on the type of property. We recommend that the users of an appraisal report are knowledgeable of these costs and consider them when calculating a specific settlement.