Are You Selling Your House Because of a Divorce?
It’s unfortunate to have to go through a divorce, but it happens. One major issue that will come up during the settlement negotiations is what to with any real estate you own together. Whether it’s just your primary residence or you own multiple investment properties, you have to figure out how to deal with these major financial assets.
Selling the House
Unless it is agreed that one spouse is staying in the home, it usually makes the most sense to sell the property. This allows you to cash out any equity and split up the proceeds however it is determined in the divorce settlement. It may not be financially feasible for one person to retain the house and continue making mortgage payments on a single salary (even with alimony or child support). And of course, it is a significant financial asset that must be considered when deciding who gets what when the divorce is finalized.
If you are planning to sell your house because of a divorce, you will want to explore your different selling options. Oftentimes, the sale needs to be completed fairly quickly and this may limit your options for a traditional open market sale. It takes time to prep the home, hire a real estate agent, market the property, listen to offers and complete the final closing process that is usually dependent on the buyer’s mortgage financing to go through. On average, this process will take a minimum of 3-6 months—and that’s if everything goes smoothly!
How long the home sale takes may depend on prevailing real estate market conditions and other factors, including what kind of offer you are willing to accept. In other words, you can price the property lower for a quicker sale or hold out until you get the highest possible price.
A Difficult Process
Another common complexity with divorce home sales is that you have multiple cooks in the kitchen. It is usually best for one spouse to take control of the transaction. Otherwise, disagreements can complicate matters and hinder important decisions throughout the process. Divorcees don’t always see eye-to-eye and the sale can be contentious. Sometimes, it’s best to keep things as simple as possible. There is already enough stress going on during the divorce. Why make selling your house another source of headaches?
Cash Home Sale
If you are looking for a quick and less complicated sale of your property in a divorce, you will want to look for a cash buyer. You can still go the open market route and hope a cash buyer makes an offer at a high asking price, but don’t hold your breath. Your best option may be to seek out a cash real estate investor to purchase your house. They will make you a clear offer and the deal can be done very quickly.
There are several advantages of working with a real estate investor who is paying cash for your house. First, they are usually willing to buy houses in as-is condition. That means you don’t have to go through the processes (or expenses) of making repairs, cleaning up or staging. Second, the transactions can be finalized very quickly. We’re talking weeks rather than months. This can get you out of your house and moving on with your new lives with cash in hand as soon as possible. A cash sale is a simple and relatively stress-free process with minimal complications.
What Resale Price Can I Expect?
Now, we know what you are thinking. You won’t get as high a resale price with a cash sale to an investor. This is generally true. They won’t offer you full top-dollar market value like you might get if going through a Realtor®. However, you have to look at everything and crunch the numbers. Many cash home sellers actually come out in better shape—especially in divorce situations where any cash proceeds need to be split up.
Consider this: the deal will get done in a fraction of the time. This means you are paying less homeownership expenses from now until the transaction closes. Some examples include property taxes, mortgage payments, utilities, homeowner’s insurance and other costs that definitely add up over the several months it will take to sell your home. There are fewer closing costs with no home inspection fees and services like that. You won’t have to pay a real estate agent (including the buyer’s agent) up to 6% of the selling price. You won’t have to make repairs either.
You will save some money out of pocket and the transaction will be finalized much faster with a cash sale. You won’t get the highest selling price, but that’s not the only thing to consider when it comes to your final financial gains from the home sale. Be sure and research your options carefully and pursue the home selling path that makes the most sense for your specific situation.
If you are going through a divorce and thinking about selling your house, contact PropertyLark today. We’ll be happy to make you a fair cash offer or help you explore other more traditional home selling options. We are your one-stop shop for all your house selling needs!