Divorce is a stressful and emotional time for any couple. However, there are things every divorcing couple should know before selling a home. You’re about to face hard decisions that must be made – some are easy some are not. However, working through these decisions before putting your house on the market is key to a successful transaction.
1) Will You Sell or Buy Out
Your first decision will likely be whether one of you will keep the home and “buy out” the other. If this is the case, one of you will likely refinance the home. If you plan to use this option, you would be best advised to consult an attorney. They can help you iron out the details in a way that keeps unnecessary pain at bay.
Another choice is to sell the house and split the profits. Many couples choose this option, preferring to receive their portion, if any, at close of escrow.
2) Find a Competent REALTOR®
If you plan to sell the house, you will want to work with a real estate agent who understands, and can handle, the pressure that sometimes arises when selling a home during a divorce.
This can’t be emphasized enough. You will want a competent and experienced REALTOR® who can handle tough situations. It’s imperative that both of you trust this REALTOR® and that they’re willing to work with both of your attorneys if necessary.
You will want a REALTOR® who is professional enough to represent both of you with no favoritism. They need to be 100% impartial and create an atmosphere of trust with both of you.
3) Financial Concerns
Your mortgage is likely dependent on both of your incomes, and you probably qualified using both of your incomes as proof of your ability to pay the mortgage. Even if one of you hopes to keep the house, you have to factor in the mortgage, property taxes, insurance, and ongoing maintenance of the property. Consider any other costs that may apply in your particular situation. Now more than ever, you need to rationally consider if either of you can afford to keep the house. If so, determine the realistic costs associated with paying the mortgage and additional expenses.
Please keep in mind that their can be tax ramifications that should be discussed with an accountant or an attorney.
This is not a win/lose situation. Please do the math and make sure you can afford to keep the house if you both agree to your doing so.
4) Stay Calm
In all real estate transactions, it’s important to remove emotions from the table. This is no different. In fact, if this isn’t the first blog post you have searched on the subject, you will not be surprised to hear this — stay calm and avoid heated exchanges. More than ever, you will need to keep your emotions in check. There are many memories in this home – some are good and some aren’t good memories.
5) Understand the Costs
There are closing costs you may not be aware of. Again, a competent real estate agent will make sure that you understand the closing costs so there are no surprises down the road and especially at the closing table. Some of these costs include, but are not limited to, transfer tax fees, attorney fees, property taxes, and real estate commission.
Please feel free to contact me if you are looking for a real estate agent to sell your home and have any questions at all.