Marital Home equity buyout in New Jersey

[njsingledad]

Been divorced 4.5 years.
Both parties are on the deed.
Both parties have agreed for me to buy out the equity of my ex.
The question is how is that equity to be valued?

The ex had two RE agents come in and price the house - the figures that they came up with were astronomical and unrealistic.
I asked for a certified appraisal - which she refuses to have done.
How much different could a certified appraisal be and what factors does a certified appraiser use in determining a homes value?

Side question - is there any legal basis for valuating the equity based upon the price paid for the home or the fair value of the home as of the date of the divorce?


Thank you for any advice you may lend.

 

[njsingledad]

What state?

I am sorry! I just amended the heading to include New Jersey.

 

[Just Blue]

I am sorry! I just amended the heading to include New Jersey.

lol...I saw that and thought: Am I blind...that wasn't there before was it?
too funny. I deleted my post because I thought I was having an under caffeinated moment.

 

[Zigner]

I asked for a certified appraisal - which she refuses to have done.

Who cares if she refuses?

 

[njsingledad]

Who cares if she refuses?

I am asking to see if there is any legal precedent with regard to the matter. If I have no legal ground to stand on - I agree - who cares? However if the law dictates how such a transaction should be executed - then that must be accepted by both parties - if not, no deal.

 

[Zigner]

I am asking to see if there is any legal precedent with regard to the matter. If I have no legal ground to stand on - I agree - who cares? However if the law dictates how such a transaction should be executed - then that must be accepted by both parties - if not, no deal.

My point is that you don't have to have her "permission" to get an appraisal. If the two of you don't agree, then you may have to get the court involved and you may each end up getting appraisals and then accepting the average of the two (or some similar arrangement). This type of thing can be court ordered.

 

[stealth2]

All I can say is that the housing market here in NJ is through the roof at the moment.

 

[njsingledad]

All I can say is that the housing market here in NJ is through the roof at the moment.

So I suppose you are implying the current Fair Market Value as determined by an RE Agent is a legit valuation?

 

[PayrollHRGuy]

I am asking to see if there is any legal precedent with regard to the matter. If I have no legal ground to stand on - I agree - who cares? However if the law dictates how such a transaction should be executed - then that must be accepted by both parties - if not, no deal.

You both own the home. What NJ law have you found that says both owners must agree to have an appraisal done?

 

[stealth2]

So I suppose you are implying the current Fair Market Value as determined by an RE Agent is a legit valuation?

I don't know what an NJ judge would rule. But I would be loath to accept anything below FMV in a settlement meeting. And would argue vehemently against anything below assessed value (which you should get via a yearly statement from your town's tax assessor).

Personally? I can't wait to get out of Dodge.

 

[njsingledad]

You both own the home. What NJ law have you found that says both owners must agree to have an appraisal done?

How else is a value to be determined?

That is what I am trying to understand...who decides how much her equity is worth? I just do not think it is fair for her to determine the value by accepting an inflated guess by a hungry real estate agent?

 

[PayrollHRGuy]

How else is a value to be determined?

That is what I am trying to understand...who decides how much her equity is worth? I just do not think it is fair for her to determine the value by accepting an inflated guess by a hungry real estate agent?

You get an appraisal. Why do you think there is a law that says you both have to agree to the appraisal?

 

[stealth2]

How else is a value to be determined?

That is what I am trying to understand...who decides how much her equity is worth? I just do not think it is fair for her to determine the value by accepting an inflated guess by a hungry real estate agent?

Generally speaking, to get an "accurate" FMV, you'd get 3ish appraisals and take the one in the middle. Judges aren't stupid - they know the one doing the buyout wants the lowest price possible while the one being bought out wants the highest. You'll likely be meeting somewhere in the middle. If her valuation is grossly overinflated, she'll end up biting it. If yours is grossly below a reasonable valuation? You will be.

But my initial point is that the market in NJ is very high right now. A judge may well go with a reasonable mid-valuation via realtors/professional assessors. They actually do try to make it fair. I really don't see you getting a lower valuation from the court than the assessed value at a minimum. As I recall, values are reassessed every 10 years (at least in my town), upon major improvements, or sale. We were reassessed ~5 years ago and I know values have increased significantly.

 

[Zigner]

You get an appraisal. Why do you think there is a law that says you both have to agree to the appraisal?

Just call me "Chopped Liver"

 

[Just Blue]

Just call me "Chopped Liver"

Poor CL...overlooked and ignored.

ETA: At least you aren't liverwurst.