Selling Your Home During a Divorce
Divorce is an extremely stressful experience. Unfortunately, sorting out finances and property often adds an enormous deal of stress to the already painful process—and this is true even for the most amicable and cooperative of divorces.
Of all property issues, the most complex is generally the home. This is true for economic reasons (as the home is often the most valuable asset shared between couples) and it is also true for emotional reasons (as the home is often a physical symbol of the former relationship.)
In many cases, an additional factor comes into play. Because homes are often bought with the shared finances of two people (with two incomes), it is often the case that neither party can afford payments on the mortgage on their own. In these circumstances, the home may become financially destressed, which could even create the risk for foreclosure.
Because of all these factors, many divorces involve the selling of a home.
Selling through a realtor during divorce
Selling through a realtor is, generally speaking, the best way to optimize the dollar amount that you receive from selling your home. However, for a variety of reasons, selling through a realtor is not always the smartest decision—especially when time is of the essence. In many divorces, whether for financial reasons, emotional reasons, or both, the couple in question does indeed wish to sell quickly.
Selling through a realtor can take weeks in a best-case scenario, and months (or even years) in a worst-case scenario. This is because, when selling through a realtor, you will need to find a willing buyer and then go through the process of inspection, approval, and closing. Should a problem occur along any step of this process, you may lose the interested seller and be forced to start from the very beginning. This can be stressful, and, if your mortgage is distressed, it can be a financial disaster.
The bottom line: if you are willing to cooperate with your spouse through the ongoing process of selling your home—and if you are both financially prepared to do so—then it may be worth the time and effort in order to get a slightly better price on your home. If this process sounds unfeasible, however, don’t worry—there are alternatives.
The Short Sell
The most popular alternative for divorcing couples is the short sale. In a short sale, a cash-only buyer purchases the house, usually “as-is.” This eliminates all of the time-consuming aspects of selling your home. Most cash-only buyers are willing to buy any property offered to them, and this holds true even if the home has serious issues that need repaired. (And seriously, who wants to put time, money, and energy into home repair for a house that they are going to sell—especially in the midst of a divorce!) In other words, a short sell eliminates the need for a realtor, as well as the need for lengthy inspection, bank approval, and closing proceedings.
Get an Evaluation
Short Sales and traditional sales both have their benefits and drawbacks—and one of the best ways to know for certain which option is better for you is by getting a consultation with a professional real estate investor. Most reputable investors (including Blue Marble Properties,) will do this for free. Simply contact us in order to organize a meeting: we will perform a thorough market analysis in order to help you make an informed decision.