Selling property as part of a divorce is one of the most stressful transactions anyone might make, and choosing your real estate agent is a crucial part of ensuring it goes well.
Disagreement between you and your partner is likely to emerge in this type of sale. Arguments can arise about the asking price, how to handle buyer offers, and even whether the home should be sold at all.
The stakes are high, of course, because your home is usually your largest financial asset. So, you need to choose an agent who has expert industry knowledge, demonstrates empathy for your situation and can be trusted by both partners.
As experienced agents in divorce sales, we have (sadly) seen similar situations before and will approach both partners with sensitivity and compassion, attempting to build consensus to help limit the distress of the situation.
We offer seven pieces of advice that will help anyone who must deal with selling their home while going through a painful divorce:
- Assess your financial situation. Estimate the value of your assets and gather all relevant paperwork. When it comes to real estate, values fluctuate, so seek a market appraisal from local agents. This will help you to be as accurate as possible.
- Property values can be adjusted one year after a divorce, or two years after the end of a de facto relationship. So, it is best to seek legal advice on this aspect of your assets and liabilities. Our experience suggests the earlier couples can agree on the value of a property, the less painful the process will be for everyone.
- Don’t assume your home will have to be sold. You may be able to buy out your partner’s share. This might mean refinancing your home and meeting higher mortgage payments. Nevertheless, this could make sense, especially if children are involved.
- If you want to retain the home and need to refinance, your partner must agree as the property is likely to be in both your names. Your bank will conduct a valuation of the property. Together with their assessing your ability to make future payments, this will be a crucial element in a successful application to refinance.
- If the property goes on the market, work with your agent to be constructive about your asking price and the offers it receives. Arguments can erupt between couples at this stage of the sales cycle. To help mediate any dispute, as your agents we will show you and your partner examples of similar homes sold in your area recently and the prices they achieved. It is wise to be receptive to this evidence.
- During the marketing of your property, it’s common for each partner to pay their share of the mortgage. Sometimes, there’ll be an agreement that one person pays less if they’ve moved out and have rent to pay. However, each separation is different. In case of conflict, it is best to seek legal advice.
- For any of these disputes, you can always have the matter resolved in court. However, this is an expensive exercise and it’s best to take this path only as a last resort.
You can’t avoid the reality that a property sale forced by a relationship break-up is distressing. But if you pick the right agent and have good legal advice, then you’ll minimise your angst and put yourself in the best position to rebuild your life.
