3 Ways to Sell Your House During a Divorce

Sell house during a divorce

It’s unfortunate to go through a divorce, but it can happen to anyone. You are definitely not alone. One of the biggest items to discuss in the divorce settlement is what to do with the house. Assuming both of your names are on the title and that it is one of your biggest financial assets (perhaps the biggest), you and your attorneys have some tough decisions to make.

Of course, one spouse could stay in the house. Ownership could continue to be split, but that might be messy later when it’s time to sell. Or, one spouse could take ownership of the property outright as part of the divorce agreement. These are common solutions, but not always satisfactory for both parties from a financial perspective.

That leaves you with the option to sell your house and then divide any cash proceeds as outlined in your settlement. In most divorce cases, the goal is to sell as quickly as possible. In others, getting the highest is more of a priority and time is less of a concern. With these objectives in mind, we want to review the three best ways to sell your house during a divorce:

1. Fast Cash Sale

If time is a concern, then a fast cash home sale may be your best solution. This makes sense if one or more of the ex-spouses needs the cash right away to move onto a different living situation. Or, sometimes you just want to get the sale completed soon, so you can both move on without any further complications.

You can complete a home sale very quickly with the right cash real estate investor. They are ready and willing to buy your house and have cash or very solid financing that will eliminate a lot of complexities commonly found with traditional real estate sales. There are no mortgages to approve, minimal home inspections (if any) and the closing process can be completed easily. You may be able to close within a few weeks rather than the several months it might take to list and sell the property on the open market.

In addition, most cash home buyers and real estate investors are willing to purchase your home in as-is condition. This is a great benefit if the property needs some work. Another benefit might be maintaining some privacy and discretion during a difficult personal time. A cash sale can be completed quickly and discreetly, generally with no closing costs required by you.

Naturally, the selling price may not be as high with a fast cash home sale to a real estate investor, but the other benefits may be worth it during a divorce.

2. Hire a Realtor®

On the other end of the spectrum is the “traditional” real estate selling process. You hire a licensed real estate agent to guide you through the process of preparing, staging, listing and marketing your property on the open market. It may take some time to get the house ready. Then, you will need to have showings, wait for offers and complete the standard closing process that could take anywhere from 30-45 days depending on the buyer and their financing.

A traditional real estate sale will likely net you a higher selling price (and potentially more money when all is said and done). It just takes more time and may cost you some money out-of-pocket, as well. This is the case if repairs are needed before the property can be listed. In the end, you will have additional closing costs taken out of the selling price, including the Realtor® commissions and other escrow/closing fees.

You also have to factor in the time and continued costs of home ownership, such as property taxes, HOA dues, insurance, utilities and general upkeep. You will be paying these until the sale closes.

3. For Sale By Owner (FSBO)

If you want to avoid the real estate agent commissions and some closing costs, you can always list and sell your house on your own. On average, most FSBO sales take a little longer to complete than traditional real estate sales, though the time may depend on a variety of factors. Selling your house by yourself is a viable solution in a really hot selling market, but can be more headaches than it’s worth when sales are slow. It’s best to go for sale by owner when you know what you are doing and are prepared to do a little more work yourself.

These are the best ways to sell your house during a divorce. To further explore your home selling options in the Central Valley—including getting a fast and fair cash offer within 24 hours—contact PropertyLark today. Get started by filling out the form to the right.