Who pays for the cost of a real estate appraisal during a divorce is negotiable. Typically couples split the cost of an appraisal or each partner gets a separate appraisal, depending on the complexity. Since appraisals may cost hundreds of dollars, it’s common to wonder whether a less expensive alternative will suffice.
Some homeowners decide to use a process known as comparative market analysis to avoid the cost of an appraisal. Real estate agents use the approach to estimate the price of a home by looking at the values of comparable homes nearby that are listed for sale or have sold recently.
If you accept the comparative market value as the value for your home, chances are it will skew slightly lower or higher than your home’s true value, especially if there are not many recent comparable sales to use for comparison. This can have a significant impact on the division of assets in a divorce. It’s generally best to bite the bullet and pay for the cost of a professional, independent appraisal of the value of your house.