Valuing Real Estate

 Posted on February 13,2018 in Complex Property Litigation

Couples with high assets face a number of unique issues that other divorcing couples do not. This is largely due to the fact that these individuals have a variety of different assets that must be identified, valued, and then divided. In many cases, this also means that the parties own multiple pieces of real estate, including vacation homes, as well as rental properties, which in turn, raises a host of issues.

For instance, both parties may wish to remain in possession of a single property, or one party may wish to sell it and divide the proceeds. However, before these decisions can even be made, the parties will need to obtain an accurate valuation. This can also be a difficult process, as there are a variety of different ways to value property, making it especially important for those who own real estate and are going through a divorce to speak with an experienced Round Rock high asset divorce attorney who can ensure that their property is properly evaluated.

Real Estate Appraisal

There are a number of ways to value property for the purposes of asset division during a divorce. The first method involves getting a real estate appraisal from a licensed appraiser. Although this requires paying a fee, it is often the best way to save the homeowner money in the long run, as doing so prevents homes from being assigned an inaccurate value. Values also change over time, so it’s a good idea to have the property re-appraised when filing for divorce to ensure that the assigned value is accurate.

Comparative Market Analysis

Homes can also be appraised using comparative market analysis, which is conducted by realtors for a small fee. This analysis involves a comparison of the value of the home in question with other properties in the vicinity that are on the market or were recently sold. Although cheaper than an official real estate appraisal, this method tends to be less accurate, as it doesn’t account for the specific conditions of individual homes.

Income Method

If a property is being used to generate income through rents or leases, the parties can use the income method of appraisal or valuation, in which the net income generated by the property is used in conjunction with certain factors about the property to calculate its value. This includes factoring in the condition of the property at the time of appraisal, as well as the future probable expenses required to repair any major problems.

Get the Legal Representation You Deserve

To speak with an experienced Round Rock high asset divorce lawyer about valuing your own property prior to divorce, please contact Powers Kerr & Rashidi, PLLC today. Our legal team is prepared to assist you immediately.

Source:

https://www.investopedia.com/articles/realestate/12/real-estate-valuation.asp