Announcement

Collapse
No announcement yet.

Home valuation - how to determine?

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Home valuation - how to determine?

    Hello,

    My question is regarding the valuation of the home in a common-law relationship in Ontario. We purchased a home together, both our names are on the deed and loan documents. She has moved out and I wish to keep the home – buy out her equity in the home. Although I contributed more of the down-payment, she wants to split the equity in the home 50/50, and I expect that any case I have for unjust enrichment is weak and not worth legal fees – so 50/50 it is. My question is how to determine the value of the home without putting it up for sale?

    In our first conversation on the topic, she was willing to accept the value from an assessment, so I arranged to have one completed. Now she’s changed her demand and has discussed the value of our house with a real estate agent. While the agent won’t put a figure on the home, he’s recommending listing the house for 50K more than the assessed value. A comparable home on the same street sold only two months ago for the assessed value. I’d prefer to reach an agreement without going through lawyers and eventually a judge. Would I be crazy to agree to a value above the assessed value? Would a judge use anything other than an assessment in awarding a value to my common-law partner?

    Many thanks for your insight!!!
    tom

  • #2
    Hi tom21,

    In legal terms, it really boils down to a matter of whose evidence is better.

    I'm not sure what you mean by an assessment - do you mean the assessment for property tax purposes or that you had a professional come and provide a report as to what they believed was the appropriate value? Usually, property assessments have pretty minimal weight, whereas a certified expert's report carries a lot of weight.

    As for what the real estate agent says, I'm not sure it means too much. First of all, he is simply stating what a recommended listing price is for your house, which may be quite different than what your house would finally sell for. Second, you state that the agent won't put a figure on the home. Third, there's a big difference between a casual chat about the value of a home and actually sitting down and writing a report that may end up in court and need to be justified under cross examination.

    As a practical matter, this is the kind of thing that shouldn't go to court or even get lawyers involved (other than drafting up the final agreement and taking care of the real estate transaction). You're going to have to negotiate a resolution of this. If you can't do that with your partner, the issue seems discreet enough that mediation might work well.

    You may consider being flexible and offering to sell your share to your partner at the value she claims - it could be an easy $25K just for moving to a new home.

    Also, remember the value of patience. Time is on your side. You're in the home and she wants her equity.
    Ottawa Divorce

    Comment


    • #3
      tom21,

      Real estate agents have a tendency to over appraise a house due to their commission is based on a percentage of gross sale.

      There are many accurate home appraisers available that are independent and they do a comprehensive report on the value of the property. They factor in the condition of the market hot or not, what other similar homes sold for etc. Generally, when a person refinance their home ie: a new mortgage, a bank will insist on this type of appraisal.

      Cost of this type of appraisal is usually around $200 to $300 range.



      lv

      Comment


      • #4
        Jeff and lv,

        Thanks for your replies and good advice. Yes, to be clear the assessment was completed by a certified individual, not the municipal property tax assessment.

        Yes - I agree, this is just something that we'll have to sort out ourselves, and go from there.

        Again - thanks for you insight. Greatly appreciated!

        tom

        Comment

        Our Divorce Forums
        Forums dedicated to helping people all across Canada get through the separation and divorce process, with discussions about legal issues, parenting issues, financial issues and more.
        Working...
        X