How to Use Divorce Buyout and Home Value Calculators
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Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
Deciding what to do with your home during a divorce can feel overwhelming. You’re not just dividing property; you’re also untangling memories and financial commitments. Two tools that can provide first-step insights are a divorce buyout calculator and a home value estimator.
This guide will explain how to use these calculators to make informed decisions about your shared home. We’ll also provide a list of these and other free online tools that can help you plan your next move.
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Editor’s note: This blog post is meant for educational purposes, not legal advice. If you need assistance navigating a home buyout in a divorce, HomeLight encourages you to contact your own advisor.
What are my options with a house in a divorce?
When you’re dealing with a house during a divorce, you generally have three options:
1. Sell the house and split the proceeds: This is often the simplest solution, ensuring both parties walk away with their share of the equity.
2. Buy out your spouse’s equity: This option allows one partner to keep the home by paying the other their share of the home’s value.
3. Keep the house and sell at a later time: Sometimes, couples choose to keep the home temporarily, often for the stability of children or to await better market conditions.
For the purposes of this post, we’ll focus on online tools that can provide helpful information in the early stages of decision-making. We’ll start by explaining how a divorce buyout calculator can assist with planning.
What is a divorce buyout calculator?
A divorce buyout calculator is an online tool designed to help divorcing couples determine how much one spouse would need to pay to buy out the other’s share of their joint home. This tool takes into account various financial factors to provide a preliminary estimate for planning purposes.
How does a divorce buyout calculator work?
Using a divorce buyout calculator involves inputting several key pieces of information:
1. Home value: The current market value of your home.
2. Outstanding mortgage: How much is still owed on the mortgage.
3. Equity: The amount of equity that has been built up in the home.
The calculator then uses these figures to compute an estimated buyout amount, roughly how much one spouse would need to pay the other to take over full ownership of the house. This simplifies what can be a complex financial assessment, giving you a clearer path forward as you decide the best course of action for your family’s future.
Example buyout calculator scenario
Here is an example of how a buyout calculator might estimate the amount one spouse would need to pay to buy out the other’s equity.
| Value of property | $500,000 |
| Mortgage balance | $250,000 |
| Net value of property | $250,000 |
| Relinquishing spouse’s percentage | 50% |
| Relinquishing spouse’s share | $125,000 |
If closing costs are not being considered, the buyout estimate remains at $125,000.
If closing costs are being considered, then most buyout calculators will provide additional input fields similar to the following table.
| Closing cost percentage | 9% (typical average, including Realtor fees) |
| Closing costs | $45,000 |
| Relinquishing spouse’s percentage | 50% |
| Relinquishing spouse’s share of closing costs | $22,500 |
| Relinquishing spouse’s share after costs | $102,500 |
Popular online divorce buyout calculators
There are a number of free divorce buyout calculators available online. Some calculators provide estimates for how much equity you have to divide based on three scenarios: selling the home, a traditional buyout, and a cashout refinance. Others are more simplified but can still give you a first look at what you might expect. Here are some examples:
- Steven A. Leitman Law Firm Divorce Buyout Calculator
- Survive Divorce House Buyout Divorce Calculator
- Hello Divorce Home Equity Buyout Calculator
- The Gifford Group Divorce Buyout Calculator
- Amortizationschedule.org Divorce Buyout Calculator
- Divorce The Smart Way Matrimonial Home Buyout Calculator
- Divorce Mortgage Advisors Divorce Mortgage Payment Calculator
- Forbes Cash Out Refinance Calculator
These tools are designed to offer a preliminary understanding and should be used as a part of a broader financial analysis.
Other factors to consider in a divorce buyout
Several important factors need to be considered when evaluating a divorce buyout:
Determine how much the house is worth
Determining your home’s market value is an important step. This often involves getting a professional appraisal to ensure fairness in the buyout process. To get a ballpark estimate on what your home is worth, see our upcoming section about free online home value estimator tools.
Decide if you can afford to keep the home
Review your personal finances closely. Can you afford the mortgage, maintenance, and property taxes on a single income? This will be a key factor in deciding whether a buyout is feasible.
Remove the exiting spouse from the mortgage
To fully assume the property, the staying spouse must usually refinance the mortgage solely in their name. This not only affects the buyout amount but also impacts credit and long-term financial commitments. Some lenders will also have processes in place to allow one spouse to assume the mortgage loan in a divorce.
Review your state’s property division laws
Property division in a divorce can vary significantly from state to state Understand your local laws to ensure the buyout is conducted legally and fairly.
Consider the tax implications of the buyout
There may be tax consequences for both parties in a divorce buyout, such as capital gains taxes if the property has appreciated significantly. Consult a tax advisor to understand how these might impact your decision.
Find an Agent Experienced in Divorce Sales
A great real estate agent can help you navigate the complexities of selling a home in a divorce and lighten your load. HomeLight can connect you with a Certified Divorce Real Estate Expert in your area or a top agent with valuable experience helping couples successfully sell their homes due to divorce.
What is a home value estimate calculator?
A home value estimate calculator is an online tool that provides a quick assessment of your property’s market value based on public records and recent real estate data. This tool is particularly useful for homeowners who need a preliminary estimate of their home’s worth, whether for selling, refinancing, or determining buyout prices in situations like divorce.
How does a home value estimator work?
Home value estimators use automated valuation models (AVMs) to analyze data from various sources, including recent property transactions, tax assessments, and market trends. By inputting basic information about your home — such as its location, size, and condition — the tool uses algorithms to compare your property against similar listings and sales in the area to provide an estimated market value.
Many online home value estimators are free to use, but you will likely be asked to provide an email address to receive and view your estimate.
Example questions asked by a home value estimator
To generate an accurate initial estimate, a home value estimator might ask you to provide or confirm some details about your home. These might include:
- Full address of your property
- Number of bedrooms and bathrooms
- Square footage of the home
- Unique features, upgrades, or renovations
- Overall condition of your home
- Your selling timeline
Popular online home value estimators
Below is a list of trusted online platforms that offer free home value estimates:
- HomeLight Home Value Estimator
- Zillow Zestimate
- RE/MAX Home Value Estimator
- Redfin Home Value Estimator
- Realtor.com RealValue™ Tool
- Chase Home Value Estimator
- Bank of America Home Value Estimator
Other factors to consider when using a value estimator
Here are some additional insights to keep in mind when using an online home value estimator:
It’s an estimate, not an appraisal
These calculators provide a general idea of value, but they do not replace a professional appraisal, which is more thorough and accepted by lenders.
Information can be incorrect or outdated
The accuracy of an online estimator depends on the quality and recency of the data it uses. Always check when the estimate was last updated.
Ask an agent for a competitive market analysis
For a more detailed evaluation, consider asking a real estate agent for a competitive market analysis (CMA). This will provide a more tailored assessment based on current market conditions and comparable properties.
A pre-listing appraisal is another option
If you need a highly accurate value assessment for legal or negotiation purposes, consider getting a pre-listing appraisal from a certified professional. This is especially useful in high-stakes situations like divorce settlements.
Other helpful online real estate calculators
- Best time to Sell Calculator: This free calculator uses real estate sales data from across the country to help you time your sale.
- Agent Commissions Calculator: This tool helps you estimate your real estate agent’s commission and compare average rates in cities across the country.
- Net Proceeds Calculator: This free calculator helps you estimate the cost of selling your home and the proceeds you could earn from the sale.
- Home Affordability Calculator: Use this tool to help you understand the costs associated with buying a house and learn what safe budgeting looks like for you before you start shopping for your next home.
- Down Payment Calculator: This calculator helps you estimate how much you will need to put down on a home and provides insights about loan options that might work best for you.
- Closing Costs Calculator: Use this free tool to estimate how much cash you might need to bring to the closing table, including mortgage lender and third-party fees.
What if we need to sell the house fast for cash?
If you decide the best divorce solution for the house is to sell it for cash and split the proceeds, consider HomeLight’s Simple Sale platform. Simple Sale connects you to the largest network of cash home buyers in the country.
Simply answer a few questions about your home and selling timeline, and you’ll receive a no-obligation all-cash offer in 24 hours. If you accept the offer, you can close the sale in as few as 10 days.
Here’s how HomeLight Simple Sale works in three easy steps:
Decide what’s best for you and your family
Divorce buyout calculators and home value estimators can be helpful tools as you make decisions about your home and family during a divorce. But remember, these resources can only provide preliminary information to shine additional light on the path ahead.
For expert insights about what to do with your home in a divorce, HomeLight can connect you with top agents in your area who specialize in working with divorced or divorcing clients.
We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. Simply answer a few questions on HomeLight’s Agent Match platform, and we’ll recommend the most experienced agents in your market within minutes.
Header Image Source: (BruceEmmerling/ Pixabay)
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