House value for divorce settlement

[Flstn]

Hi guys I've just joined the forum and it looks very interesting.

My question is this, my partner and I have separated and I'm going to buy her share of the property, how do we get the value of our home? We have had 3 real estate agents through and they're told us 3 different prices ranging from 575000 - 630000.

Thanks for any advice, I'm quite inexperienced about property investment but I'm trying to educate myself at the moment reading many books etc.

 

[INVSTOR]

If you are going to buy her out the bank will most likely value it anyway. My bank is charging me $200/property. I would possibly start by running scenario by your lender.

 

[Peter_Tersteeg]

Unfortunately I've had to assist with the scenario far more often than I'd like. It's fairly easy to get a bank valuation up front, usually at no cost.

In many respects this may be conservative but it is what the bank will lend against. Depending on the equity position within the property this can be a very real restriction regardless of what either party desires.

Have a chat to your broker or banker. It may be a fairly easy request to accommodate. In many cases we've been able to provide a copy of the valuers report which can be fairly useful.

 

[TMNT]

Hope your wife didnt hear about the higher value

Because if she does, that's what the market value will be in her mind,

And if you don't pay out on that value or if you get a second opinion, you will be seen as Hitler

That's if her friends/lawyer haven't been in her ears

Good luck

 

[Terry_w]

All yu have to do is both agree on a price. This could be an average of the 3 but you would be better offf getting a proper valuation rather than a real estate agent opinion as these tend to be higher. Conisder the CGT effects too - may or may not be any.

 

[Paul@PFI]

Also consider getting mutual legal advice on it being a matrimonial property settlement so that any CGT is not triggered. There is a CGT carve out....if it meets the rules. However the CGT still should be calculated so that the value net of taxes is calculated. The person receiving the property inherits the future CGT debt on 100%.

 

[Flstn]

Thank you all for your replys.

At the moment we have a agreed value of 600k and I've come to this by averaging the 3 appraisals. However I'm going to commission a independent valuation from a licensed valuer, does the $660 price seem ok? I've spoken to my ex about a bank valuation but she's definitely not interested as it would be lower for her.

The bank should have no trouble giving me the money via a home loan increase as the current LVR sits around 50% (that's if the house gets valued @ 600)

The only positive I can pull is I should have enough equity to start looking for my first IP AFTER settlment and AFTER divorce.

As far as I'm aware there would be no CGT as it was out PPOR, is this correct?

 

[D.T.]

Get a valuation rather than an appraisal. Base it all off of that figure.

 

[INVSTOR]

The last valuer I used was recommended by my accountant - Darren Starcevich- valuations WA. 9242 1611. Possibly a couple of hundred cheaper and nice bloke.
http://www.valuationswa.com.au/key-people.html

 

[TMNT]

Thank you all for your replys.

At the moment we have a agreed value of 600k and I've come to this by averaging the 3 appraisals. However I'm going to commission a independent valuation from a licensed valuer, does the $660 price seem ok? I've spoken to my ex about a bank valuation but she's definitely not interested as it would be lower for her.

The bank should have no trouble giving me the money via a home loan increase as the current LVR sits around 50% (that's if the house gets valued @ 600)

The only positive I can pull is I should have enough equity to start looking for my first IP AFTER settlment and AFTER divorce.

As far as I'm aware there would be no CGT as it was out PPOR, is this correct?

she doesnt want to get a bank value because she is about to take you for a ride,

a bank value alabeit is conservative but realistic sales price,

a agents opinion isnt worth the oxygen molecules it comes from,

she is about to profit half of say $50k, of course she would be smiling

definitely get a bank val

 

[Spades]

Flstn,Go with the lowest valuation you can get.

Ps.Btw what does Flstn stand for if you don't mind me asking?

EG:Female lurve,she takes nothing? LOL

 

[property_girl]

she is about to profit half of say $50k, of course she would be smiling

thank goodness the courts are there to protect women from the likes of some of these men.

 

[thatbum]

she doesnt want to get a bank value because she is about to take you for a ride,

a bank value alabeit is conservative but realistic sales price,

a agents opinion isnt worth the oxygen molecules it comes from,

she is about to profit half of say $50k, of course she would be smiling

definitely get a bank val

Can we cut the misogynistic commentary? The OP asked a simple question and I'd prefer not to have to read through women-bashing comments from every thread vaguely related to separation matters.

 

[Harro]

I think your Legal Representative will outline the procedure for you, step by step.

 

[mumbai]

Can we cut the misogynistic commentary? The OP asked a simple question and I'd prefer not to have to read through women-bashing comments from every thread vaguely related to separation matters.

OH Thank you!
I have been reading this thread and it quickly changed from suggesting OP to woman bashing. I refrained myself from commenting, but kudos to you.

 

[TMNT]

Can we cut the misogynistic commentary? The OP asked a simple question and I'd prefer not to have to read through women-bashing comments from every thread vaguely related to separation matters.

fair enough, I did derail it a little,

but the underlying motives are still there,

id definitely go the bank val route, so what would have happened if the agent had told them the house was worth $800k, while a bank val was going to come in at $600kish

you can easily tell her motives if she digs her heels in to refusing to get a bank val

 

[Macca]

Unless you can both agree on a value then I think your legal people would be recommending that you both get a valuation and then average the two.

Any costs incurred would be paid by each half.

 

[wylie]

Unless you can both agree on a value then I think your legal people would be recommending that you both get a valuation and then average the two.

Any costs incurred would be paid by each half.

This is great advice and would be my recommendation too. It should allow each party to feel they have had some control and are not being cheated by the other.

 

[neK]

Flstn,Go with the lowest valuation you can get.

Ps.Btw what does Flstn stand for if you don't mind me asking?

EG:Female lurve,she takes nothing? LOL

I read it as "fisting"....

 

[Flstn]

I read it as "fisting"....

Flstn is in reference to my motorcycle...

I'm not here to bash women, my seperation is amicable and I just want the outcome to be fair. The legal advice I received was "agreed" price and my question was just asking how we get to it.

Thanks again for all your replys