Here Is What You Need to Know About Home Appraisals
If you are going through a divorce in North Carolina, one of the most pressing questions you’ll face is: what happens to the house? For many couples, the family home is their most significant shared asset, and figuring out how to divide it fairly requires more than just a conversation. It requires an objective, professional appraisal.
In a recent Redfin article on divorce home appraisals, Gray Ellis helps break down how this process works, and we think it’s a valuable read for anyone navigating property division here in the Triangle and beyond.
The Three Most Common Paths
When a divorcing couple must decide what to do with the marital home, there are generally three approaches:
- Sell the property and divide the proceeds
- Have one spouse buy out the other and refinance the mortgage if in both names
- Use other marital assets — such as savings or investments — to offset the home’s equity and balance the overall settlement.
Each path has different financial and legal implications, which is why working with experienced counsel matters from the start.
Why a Professional Appraisal Is Essential
No matter which direction a couple chooses, determining the home’s fair market value is a necessary step. An appraisal provides an objective, defensible number that courts can rely on, and one that cannot be dismissed the way an online estimate or outdated tax assessment might be. Appraisals typically run between $400 and $700, with costs often split between both parties.
It is also worth knowing the difference between a formal appraisal and a Broker Price Opinion (BPO). A BPO can be useful for general guidance early in the process, but a licensed appraiser’s report carries more legal weight in court proceedings or refinancing.
A Word of Caution on Joint Ownership
One option couples sometimes consider is maintaining joint ownership of the home after separation — perhaps to give children stability or to wait for a better market. While this may feel like a reasonable compromise in the moment, it’s rarely a sound long-term solution. Continuing to share ownership of a major asset with a former spouse introduces ongoing financial and legal entanglements that can complicate both parties’ futures.
Timing and Preparation Matter
Property values shift with market conditions, so the closer an appraisal is conducted to the actual settlement date, the more accurate and useful it will be. In the meantime, homeowners can help the process go smoothly by keeping the property well-maintained, documenting any renovations or system upgrades, and ensuring the appraiser has full access to the home.
