How many appraisals?

[pattytx]

What is the name of your state (only U.S. law)? Maryland

My boyfriend's ex (SO, not spouse) has agreed to buy him out of their shared home that has only 5 years left of the mortgage (they bought it together) . They presented only one appraisal, which he feels is quite low ($220K). He is getting his own appraisal, but when is a third appraisal called for? I remember hearing a difference of 10% or more, but is that about right, especially for a home over 200K?

Also, they've presented a structured settlement over XX years (they have already agreed to splitting the payoff of the mortgage, then he will quit-claim it to her). Is that a reasonable deal? She is 67 and not in the best of health, but she could afford a lump-sum payment.

He is in the process of getting his own attorney, but I was hoping to get some advice here on the direction that conversation with the lawyer should take.

Thanks in advance for any info you can provide.

 

[justalayman]

She is 67 and not in the best of health, but she could afford a lump-sum payment.

he might want to consider requiring her buying a life insurance policy for the amount of the debt if you go with the structured settlement.

 

[tranquility]

Since this is a negotiation, there is not an amount difference where there is a legal requirement. In court, which appraisal is more defensible?

 

[nextwife]

Yikes, I help manage REOs, and I've had appraisals vary by huge numbers. $50000 on a property un der $100000, for example. It matters whether it is a local appraiser or someone who doesn't know the nuance of that market, it matters if the don''t bother going in the basement and completely miss seeing the bow in the basement wall, it matters if their sniffy doesn't work and they don't notice the musty moldy basement smell, etc. We get two BPOs (from trusted realtors) and an appraisal. And sometimes a second appraisal.

 

[nextwife]

He should NOT quit claim it. He should take back a mortgage for what she owes, so he can get it back if she passes. If she is in poor health, her being able to buy a life ppolicy is doubtful.

 

[pattytx]

nextwife, please educate me. What is a BPO?

And let's say second appraisal comes in at $225K? I would say, split the difference. But if the second comes in at $250K, then get a third?

 

[Mass_Shyster]

nextwife, please educate me. What is a BPO?

And let's say second appraisal comes in at $225K? I would say, split the difference. But if the second comes in at $250K, then get a third?

BPO is Brokers Pricing Opinion. Call a trusted Realtor and ask for their opinion. It costs less than an appraisal and is as good, or in many cases, better.

 

[pattytx]

Thanks, steve.

 

[FarmerJ]

Patty just for the heck of it, what does the county say its worth for property taxation purposes ? (does it come close to anyones appraisal ?)

 

[pattytx]

Not sure, farmerj, it's up for reassessment in a few months. I'll ask him.