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  1. #1
    Join Date
    Jan 2006
    Location
    NJ
    Posts
    2

    Default Buying out a co-owner of a house

    My ex-husband and I are co-owners of the condo we currently live in. Can someone please tell me how a typical buy-out works? He wants to buy me out but we are disagreeing on how this typically works.

    My impression was that we get the house appraised for its current value, then based on that number, subtract the amount of money we still owe on the mortgage and that's the amount of equity we split. So if we paid $265 for the house and it's now apraised at $275, that would be $110 in equity. We would each get $55K, right?

    So if he wants to buy me out, he would have to refinance the house for the amount of the mortgage left on the house plus half of the equity he owes me -- which would be $55K. Is this right?

    Please help!

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Buying out a co-owner

    You can reach any agreement that you like... What alternative approach does he propose?

    Sometimes, due to the cost of refinancing, the various costs associated with the refinance will be deducted from the equity figure before it is split, such that both parties share equally in the out-of-pocket costs of the buy-out. (But you can agree to whatever you both deem fair and reasonable.)

  3. #3
    Join Date
    Jan 2006
    Location
    NJ
    Posts
    2

    Default

    He was under the impression that he was going to buy me out for $10K. I told him this was ludicrous! I've made an appointment to have our house appraised tomorrow to prove that it's worth much more than we paid for it. In the meantime, I've asked him to do some research about how a typical buy out works so he realizes that what I'm asking for is not unreasonable.

    Thanks for your reponse.

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