Relocation and Moving: Navigating Co-Owner Sales in Fargo-Moorhead

By Christopher Leigh | September 11, 2025, 10:30 AM CDT

In today’s Fargo-Moorhead housing market, co-ownership is increasingly common as friends, siblings, or family members pool resources to buy homes in North Dakota and Minnesota. However, when one co-owner wants to sell, it can create complex decisions. This Relocation and Moving post, brought to you by Vision Realty, guides you through the process of navigating a real estate breakup, ensuring a smooth transition.

Understanding Co-Ownership in Fargo-Moorhead

More people are teaming up to afford homes in the competitive Fargo-Moorhead market, sharing down payments, mortgages, and upkeep. Co-ownership differs from spousal ownership, which often falls under state community property laws. The two main structures are:

• Joint Tenancy: Equal shares with right of survivorship—upon one owner’s death, their share passes to surviving co-owners.

• Tenancy in Common: Equal or unequal shares, transferable to heirs or sellable without consent [1].

Unlike married couples, who can exclude up to $500,000 in capital gains on a primary home sale, unmarried co-owners are limited to $250,000 each, impacting profits in Fargo-Moorhead’s $384,100 median market [1]. A written agreement on expenses, decisions, and exit strategies is crucial to avoid disputes.

Options When a Co-Owner Wants to Sell

When one party seeks to exit, you can buy them out or sell together. Here’s how to proceed:

Buying Out a Co-Owner

• Determine Market Value: Use a Comparative Market Analysis (CMA) from Vision Realty or an independent appraisal for accuracy [1].

• Calculate Equity Share: Market value ($500,000) minus mortgage ($200,000) = $300,000 total equity. For a 50/50 split, each share is $150,000 [1].

• Financing Options:

  • Refinance: Qualify solo for a new mortgage to pay the co-owner (30-60 days) [1].

  • Home Equity Loan/HELOC: Borrow against equity, though rates may vary [1].

  • Personal Loan/Cash: Avoid liens but expect higher rates [1].

  • Seller Financing: Agree on terms with the co-owner, though it ties them financially [1].

• Legal Paperwork: Draft a buyout agreement, use a quitclaim or warranty deed, and record with Clay/Cass County. A title company or attorney ensures clear title [1].

Selling the Home Together

• Agree on Process: Set a listing price and timeline with a neutral agent’s input, like Vision Realty’s [1].

• Share Costs: Split repairs, staging, or landscaping by ownership percentage or 50/50, documenting contributions [1].

• Divide Proceeds: Adjust for unequal mortgage/tax payments, deduct commissions and closing costs, and settle liens [1].

• Document Everything: Written records prevent misunderstandings, especially for last-minute expenses [1].

How to Navigate in Fargo-Moorhead

In Fargo-Moorhead, where inventory is 40% below 2019 levels, co-owner disputes can delay sales. Vision Realty can mediate valuations, coordinate financing, and handle legal transfers, ensuring a fair process tailored to local market conditions.

How to Start Resolving Co-Ownership Issues

Ready to address a co-owner sale? Follow these steps:

• Assess Ownership: Review your agreement with Vision Realty.

• Valuate Property: Get a CMA or appraisal.

• Choose Option: Decide on buyout or sale with our guidance.

• Secure Financing: Explore loan options with our team.

• Finalize Legally: Complete paperwork with expert support.

Frequently Asked Questions (FAQs)

Q: What if we can’t agree to sell?
A: A buyout or legal mediation via Vision Realty can resolve disputes [1].

Q: How do I calculate my buyout share?
A: Market value minus mortgage, multiplied by your ownership percentage [1].

Q: What financing is best?
A: Refinancing often works, but assess your credit with our advice [1].

Q: How are sale proceeds split?
A: Based on ownership or contributions, adjusted for costs [1].

Q: How can Vision Realty help?
A: We provide valuations, financing options, and legal coordination [1].

Conclusion

Navigating a co-owner sale in Fargo-Moorhead requires clear strategy, whether buying out or selling together. With substantial equity and a shifting market, Vision Realty can guide you through valuations, financing, and legal steps to resolve ownership issues smoothly in North Dakota and Minnesota.

Contact Vision Realty in Fargo-Moorhead
Christopher Leigh, Broker, GRI, RSPS, ePRO, REALTOR®
Phone: +1(701) 715-4747
Email: chris@visionrealty.us
Address: 509 Front St, Hawley, MN 56549
Website: visionrealty.us
(Vision Realty provides expert real estate services for buyers, sellers, and investors across Fargo-Moorhead, adhering to all federal, North Dakota, and Minnesota fair housing laws.)

References

1. Realtor.com, “One Co-Owner Wants To Sell—Now What? How To Navigate a Real Estate Breakup,” August 2025.

Disclaimer

Vision Realty adheres to all federal, North Dakota, and Minnesota fair housing laws, ensuring equal opportunity for all clients. Market data is accurate as of September 2025 but may change. Contact Christopher Leigh for the latest insights. This blog is for informational purposes and may be refined based on feedback.