The process of selling your home after a divorce is quite similar to any other time, except that you will have to split things differently. However, here are some key things to consider…
Preparing the House
You may need to undertake certain house upgrades. You may also elect to sell your home as-is. In certain cases, if the house is in bad condition, it might take a long time to prepare it for sale. Getting the house ready may also entail taking images and creating property listings, although you may want to wait until after you engage an agent to do so.
Getting an Agent
You should work with a reputable real estate agent. There are agents who specialize in pending divorce sales. They can be of great assistance to you in the thorny issues that are bound to come up as you auction off what may be the biggest investment of time, money, and affection you’ll ever have made. They may assist you with creating a listing to sell your house, putting it on local real estate sale sites and newspapers, and providing you with a value. You and your soon-to-be ex-spouse must agree on a reasonable price for the house.
Think About an Investor Sale
Are you in a rush to sell the house? Some real estate investors will take it off your hands, and although you may not get the same amount of money, you will be able to sell the home quickly.
Handle an Offer
An offer will be made. Don’t take the first offer that comes by. Be patient and willing to listen to the advice of your realtor. Make sure you know just how volatile the housing market is in your area. If it’s very volatile you should instruct your sales agent to jump at the first offer of the price you want, and not wait.
But if your area has stable real estate prices, then you can afford to sit back and let the better offers come to you before committing. It might take a long time or come in immediately once you advertise the property. You can take or leave any offer on the table. Counteroffers are typical, and there is normally some back and forth until the sale is agreed upon.
When you have an acceptable offer, it is time to accept and close the deal. Don't hurry this because you're going through a divorce; it's still a good idea to take your time and earn what you're worth.
Deal with the Money
It would be wise to use the same bank for both payments, if possible. A bank that already knows you and your partner will keep down the red tape and paperwork.
The revenues are not immediately divided among you.
The costs of selling a home are varied. Make them a priority. For example, all of your agency costs, the current mortgage, and part of the home-related lines of credit. A significant portion of the revenues will have to be used to cover all of these unexpected costs.
If you sell while legally still married, you may be eligible to take advantage of capital gains exemptions on homes worth less than $500,000.
At this point your lawyers can work out the exact division of the sale. Depending on local state laws, you may be required to follow a certain rule regulating who receives what after a divorce.
Of course, any prenuptial agreements must be fulfilled, so it's possible that the property is still held by one party in the divorce while the other receives no financial advantage from the sale.
Questions? Let us know.