If you’re going through a difficult divorce and trying to figure out what to do about your unwanted real estate, then keep reading this blog post to give you our best suggestions about selling your house while divorcing in Metro Detroit…
Divorce can be challenging and emotional. Yet, in the midst of the difficult situation, you might be like other divorcing couples who own a house and are trying to figure out how to go about selling your house while divorcing in Metro Detroit. Here are our best strategies and ideas to help you navigate the real estate portion of your divorce as carefully and efficiently as possible.
Houses In Divorce Can Be Complicated
During a divorce, the two parties seek to split their assets in half. For some assets are liquid (such as money), it’s very easy to do. For other assets, including real estate, it’s much harder to do because how do you split a house in half? It’s one asset that derives its value from being whole, and it’s usually a structure built on a plot of land, so it’s not going anywhere.
Since cutting the house down the middle isn’t an option, should one party get it or the other? And maybe in some divorces, one party might be invited to take the house only if they can pay for it (which is a massive expense a time that people rarely want to incur such expenses).
Here’s How To Split The Real Estate Asset
The most straightforward and often the best way to divide a real estate asset during a divorce is to sell the property.
When a property is sold, it simplifies the process of dividing its value between the two parties. However, it’s important to note that the property sale itself might involve some costs. For example, there may be expenses related to preparing the home for sale, such as repairs, staging, or marketing. Additionally, there could be outstanding bills associated with the property, like unpaid utilities, property taxes, or homeowners’ association fees. If there’s still a mortgage on the property, the outstanding balance will also need to be settled from the sale proceeds.
Because of these financial considerations, it often makes sense for both parties to agree to sell the property and use the equity—the money left after all debts and expenses are paid off—to settle any outstanding obligations. This ensures that neither party is left with unpaid debts tied to the property.
Once the property is sold, the remaining funds can be divided between the two parties according to an agreed-upon percentage. For example, if both parties agree to a 50/50 split, each would receive half of the net proceeds from the sale. This approach provides a clear and equitable division of the asset, avoiding potential conflicts that could arise from one party keeping the property.
But this leads to an important question: how do you go about selling the property?
To sell the property, the divorcing couple should agree on a few key steps:
- Choose a Real Estate Agent: It’s often helpful to work with a neutral, experienced real estate agent who understands the unique circumstances of selling a home during a divorce. The agent can provide an objective market analysis, recommend a listing price, and guide the process to ensure a smooth sale.
- Prepare the Property for Sale: Depending on the condition of the property, it may need some updates or repairs to attract buyers and maximize its value. This could include things like fresh paint, landscaping, or addressing any maintenance issues. The costs for these improvements can be shared by both parties.
- List and Market the Property: Once the home is ready, the agent will list it on the market. They will use various marketing strategies, such as online listings, open houses, and professional photography, to attract potential buyers.
- Review Offers and Negotiate: As offers come in, both parties should be involved in reviewing and deciding which offer to accept. It’s important to work together with the agent to negotiate the best possible deal.
- Close the Sale: After an offer is accepted, the sale process moves forward to closing. At closing, any remaining mortgage balance, outstanding bills, and sales-related expenses are paid off. The net proceeds are then divided according to the agreed terms, and each party receives their share.
By selling the property, both parties can walk away with a clean break, free from the ongoing responsibilities of homeownership, and with their share of the equity in hand. This process provides a clear resolution, allowing both individuals to move forward with their lives
The Fastest Way To Sell A Divorce House
When it comes time to sell, most people think of selling through a real estate agent. Unfortunately there’s a few problems with this:
- the agent will make the owners pay out-of-pocket to fix up the property first — but who pays for that?
- the agent will then list the house, which can take 3-6 months to sell (sometimes longer) — can either party wait that long?
- the agent will then involve both parties in the negotiation with the buyer and there is A LOT of paperwork to shuffle back and forth
This is a costly and time-consuming way to sell, and it can actually make the divorce proceedings so much worse.
Fortunately, there’s another way to sell and that’s to sell your house to a real estate buying firm (which is what we do here at 3D Property Solutions). The real estate buying firm will buy your house quickly, for cash, in as-is condition (and as a bonus, there are never any commissions or fees to pay). You don’t have to clean up or fix up the property and the sale can be completed in days, not months, with very little paperwork.
If you’re going through divorce and want to just be done with it and move on with your life, just reach out to us and tell us about the house you want to sell. We specialize in buying divorce houses and we can help you expedite your divorce by buying this house from you.