In this intense real estate market, selling a house is already a stressful process. Divorce adds another layer of legal complications and emotional obstacles. Avoid these seven common real estate pitfalls to save time and money and give yourself a stable financial future.
1. Starting negotiations for one party to buy the home without doing the proper research.
You (and your kids) may want to stay in your family home to have some stability. While this is understandable, your financial situation will be very different after your divorce is finalized. To make better long-term decisions, get an accurate understanding of what you can afford. Be sure to discuss your income, how much debt you may accumulate during the divorce, and changes to your tax status with both your attorney and mortgage company or broker to understand what makes the most sense for you financially.
Find the right team to help you understand what expenses or fees to expect before starting to negotiate who might maintain residence of the home to avoid unexpected changes. An attorney and mortgage broker with experience in cases of divorce are the best bet to making sure you know what you qualify for and if you can stay in your home.
2. Hiring a friend or family member as a realtor.
At its core, divorce is caused by a violation of trust and expectations. Hiring a real estate agent who is biased towards one spouse will only exasperate this problem and slow down the process. Find a qualified real estate agent with experience working in divorce situations. Look for someone who can remain neutral, keep the lines of communication open, coordinate the listings, showings, and ultimately work through any complications with your contract and closing.
Tempers run high during a divorce, and this will be amplified if you feel that your real estate agent is unfairly prioritizing one spouse. Unlike your family lawyer, the real estate agent represents both parties who must agree on the price, contract details, and closing. An impartial and unbiased real estate agent will help to keep the process moving forward in a way that is fair to both parties.
3. Trying to save money with a discount real estate agent or a for sale by owner.
Bottom line: you get what you pay for and choosing a discount real estate agent will cost you more time, money, and headaches in the long run. Real estate transactions during divorce can be complicated so you want a qualified agent to partner with your family lawyer to advise you on your unique situation.
Since your bills are piling up, it may be appealing to hire someone less expensive. However, the right real estate divorce specialist has the experience and expertise to help you navigate legal complexities and avoid costly errors. Ask your real estate agent about their training, experience, and outcomes in real estate transactions during divorce.
4. Not making plans for the short term.
Selling your home is just one of many things you juggle during a divorce. Managing the logistics of dividing your life and working through the emotional challenges can feel overwhelming. Make time to work through a short-term plan with your family lawyer and be sure that both parties agree to this plan.
Decide who will continue to pay the mortgage, maintain the property, and keep the utility bills up to date. If your mortgage and bills are not paid and you are still listed on the loans, your credit will be negatively affected even if you are not living in the home. If your lawn or home is a mess, you’ll see a big dip in your property values. Buyers may even try to give you a lower offer if they know that you are in a rush to sell because of a lapsed payment or divorce.
5. Misunderstanding your financial situation.
If you have been up in the middle of the night crunching numbers, you are not alone. Don’t rely on inaccurate information like the Zillow value of your home to make your financial decisions.
Work with your attorney and if possible, a certified divorce real estate expert to get the true market value of the property, check the property title for any unexpected liens, and find out the true payoff amount. This will help you to make more realistic plans and avoid delays that can jeopardize your future.
6. Assuming that your courtroom negotiations are both legal and practical.
There are a lot of legal and practical variables at play and without the right help, you can find yourself in an impossible situation. It’s not uncommon to see orders regarding a home that sounded good in the court room and during negotiations that don’t align with legal requirements or practical realities.
For example, you may reach an agreement that your partner can remain in the home during the divorce proceedings. If they don’t want to sell the home or are contentious about the terms, you must take the proper steps to safeguard your interests. Without specific expectations for time frames on when the home needs to be show ready and when they need to move, you may find yourself completely unprotected.
Unrealistic or vague terms about pricing, contract details, or hiring a realtor can create expensive issues down the line. Make sure that your team has the right expertise to see the red flags that will just waste your money.
7. Let your emotions lead to bad decisions.
The stress and bitterness of divorce can feel overwhelming. Don’t let this cloud your thinking. Be proactive about hiring a team who can help to guide you through this process to protect your future. Every attorney has seen horror stories of a spouse changing their mind at the closing table because of unrelated arguments. You don’t want the other problems in your divorce to lead to a last-minute change that leaves you defenseless.
It may be hard to see now, but you will move past your divorce. Give yourself a chance at a fresh start by avoiding these problems so that you can focus on your next steps and rebuild your life.
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Breann Green is a Certified Divorce Real Estate Expert, specializing as a neutral third party selling homes in the most difficult situations, in addition to traditional real estate transactions. After going through her own divorce in 2015, she was inspired to help others and has over 16 years of experience and 1,000 hours of training. Breann assists family law attorneys to have the proper resources to expedite listings and sales to ensure maximum value. Breann’ expertise will help family law attorneys save time and money for their clients.