Seattle, September 16, 2025 — Splitting up is hard enough when it’s just a lease, but when two unmarried friends own a house together and one wants out, it’s a whole different ballgame. That’s the pickle facing a group of pals in Seattle who dove into homeownership as a team, only to find themselves tangled in what one calls “a total mess” when one wants to buy the other out. Without a clear roadmap, emotions and wallets are getting bruised—so what’s the fairest, smartest way to handle this?
Let’s break it down. Say Alex and Jamie bought a $500,000 house together, each owning 50%. They’ve got a mortgage, shared equity, and no marriage contract to lean on. Now Alex wants to stay, and Jamie wants out. Here’s how they can make it work without torching their friendship or finances, based on advice from real estate attorneys and financial planners.
Step 1: Get a Current Valuation
First, they need to know what the house is worth today. Hire an independent appraiser—expect to pay $300-$500—to get a fair market value. Let’s say it’s now $550,000. That’s the starting point for calculating Jamie’s share (50% of $550,000 = $275,000). Don’t trust Zillow or guesswork; a pro appraisal keeps things above board.
Step 2: Account for the Mortgage
If there’s a $400,000 mortgage, the equity is $550,000 – $400,000 = $150,000. Jamie’s half is $75,000. Alex would need to pay Jamie this amount, but here’s the catch: Alex must also take over the full mortgage or refinance it solo. Lenders will check Alex’s income and credit to approve a new loan, which could hit $400,000 plus closing costs (2-5% of the loan). If Alex can’t qualify, they might need to sell the house outright.
Step 3: Draft a Buyout Agreement
Hire a real estate lawyer—$1,000-$2,000 well spent—to draft a buyout contract. It should cover the payout (say, $75,000 to Jamie), transfer of Jamie’s ownership via a quitclaim deed, and a release from the mortgage lender for Jamie. Include any side deals, like who paid more for repairs or down payments, to avoid “he said, she said” fights. One planner I spoke to said, “Put it all in writing, or you’re begging for drama.”
Step 4: Consider Taxes and Costs
Good news: Buyouts between co-owners usually don’t trigger capital gains tax unless the house was an investment property. But check with a CPA, as Jamie might face taxes if the home’s value spiked big-time. Also, factor in transfer taxes or recording fees, which vary by state—Washington’s runs about 1.28% of the sale price.
Step 5: Keep It Civil
This is where it gets human. A Seattle realtor shared a story of friends who split over a similar deal: One felt stiffed on the price, and they haven’t spoken since. To avoid that, consider mediation ($100-$300/hour) if talks stall. Or, if cash is tight, Alex could offer Jamie a payment plan secured by the property, but only with legal oversight.
The cleanest path? Agree on a fair appraisal, settle the equity split, and get Alex’s financing locked in. If that’s not doable, selling and splitting proceeds might be less headache. One X user who went through this warned, “Get everything in writing and don’t assume you’ll stay friends.” Harsh but real. Got specifics on their deal or state laws? I can dig deeper. What’s the toughest part of their “mess” right now?