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I am in the middle of a divorce. My wife and I have agreed on everything so far. We now have to decide how we are going to put a value on our last remaining asset, our home. I would like to keep it and buy my wife out of her half.

My wife’s real estate friend prepared a market analysis for us. She estimated the value a lot higher than I think it’s worth.

I think we should get an appraisal from a qualified appraiser and not rely on an estimate of value from a real estate agent who is my wife’s friend.

A co-worker said that I should just look for one in the yellow pages. He said that choosing a random appraiser would keep it “arms length”.

Do you think this is the right approach?

Divorcing Dan

Dear Dan,

The right approach is whatever you both agree on.

Discuss your doubts with your wife. Ask her to put herself in your shoes. It sounds as if the two of you have been reasonable so far. She will probably understand.

If your wife agrees to an appraisal make sure that she/he is qualified and state certified as a residential appraiser. I would suggest that the appraiser be local and preferably be referred by someone you respect, your attorney perhaps. To even the playing field, the referral could even be from your wife’s attorney.

The appraiser will get her/his market data from the local multiple listing service, local tax assessor’s records, local real estate professionals, courthouse records, private public record data vendors and her/his own personal knowledge and office files from previous appraisals.

The appraiser’s evaluation will be far more comprehensive than a Realtor’s market analysis, unless, of coarse the Realtor performs a complete Brokers Price Opinion aka a BPO.

It’s wise to consider an “arms length” appraisal. You want whoever does the appraisal to be completely independent. You want to avoid an appraiser that has any connection or relationship to you or your wife.

Your appraiser will most likely use the market value approach. Market value will be the probable price that your property should sell for under certain conditions. Without going into detail, those conditions or assumptions are that both parties are informed and well advised, a reasonable time is allowed for open exposure to the market, the buyer and seller are motivated, payment for the purchase is cash or its equivalent and that there are no financial or special concessions that would potentially impact the value.

Finally, it’s important that you both realize that your home is usually the last connection between you and someone that you chose to spend the rest of your life with. Your home represents your entire married life with each other. The severing of this important tie will bring up many memories and emotions and will make your negotiations difficult in the best of circumstances. Be patient and easy on yourselves during these hard times.

Working out an equitable agreement that serves both parties is a matter of good home dollars and sense. Good luck to both of you!