In order to determine the value of your real estate (non-commercial property owned by the parties) you must determine what is the net equity of the home.  The net equity is the only item of value, or simply put, the asset to be divided by the court.

In order to do this you must first determine the fair market value.  The fair market value (FMV) is either agreed to by the parties, determined by an individual appraisal, the tax appraisal, or a realtor.  The fair market value is then reduced by the remaining amount of mortgage balance(s) on the property and by the costs of sale.

Generally, Judges use an 8% cost of sale (7% commission + 1% closing costs).  Some may not agree with the value of the home being assessed the cost of sale if one party does not intend to sell the home, however, the courts rationale is that the house will likely be sold at some point, and those costs will ultimately have to be paid and reduce the value of the property to the recipient.

VALUE OF REAL ESTATE SIMPLE EQUATION

FMV – (MORTGAGE BALANCE + 8% COST OF SALE)= NET EQUITY