How a Divorce Real Estate Specialist is Critical to you in your Divorce
Dealing with a Marital Property in a Divorce is not a regular real estate transaction, and requires unique skills and specialized processes
Many times, divorcing parties cannot agree on hiring a real estate agent because one party often thinks the agent will “take the side” of the spouse they know best.
This is why it makes sense to engage a Realtor that specializes in these situations, and is trained to be Neutral and Fair with both parties. We are the Divorce Real Estate Specialists.
There are many added complications in a divorce real estate transaction that a regular real estate agent will not know about:
Different laws, rules and regulations apply, especially under Court Orders
Unlike most other divorce professionals, the Divorce Real Estate Specialist works for both parties at the same time, not just one. Each party is the client with fiduciary duties owed to each
Requires specialized skills and strategies
Requires specialized marketing approach and methods. Knowing what to disclose and what not to disclose
Requires specific staging techniques and requirements, especially when minor children are involved
Has a different listing protocol and sale process protocol
May have unexpected obstacles, challenges and conflicts that regular real estate agents will not anticipate, and are not trained to handle
Requires different communication strategies from regular real estate agents in order to communicate effectively with each party throughout the process
Requires a neutral, fair and unbiased approach to each party during the process
Tax issues regarding the sale of a marital house
How alimony and child support can impact Real Estate decisions in a divorce
How credit scores and bankruptcy can impact Real Estate options and decisions
Protect the asset from unreasonable expectations from either party
Requires a higher level of negotiating expertise and strategy with buyers and their agents
Could delay the divorce process if certain mistakes are made
The marital house is most likely the largest single item within the Marital Balance Sheet in a divorce and will have a large impact on how the parties remain financially after the divorce settlement.
An experienced Divorce Real Estate Specialist will:
Help reduce the stress and conflict among the parties as they navigate through a marital property sale process
Support and educate the parties on the best possible options regarding their marital house
Advise on how to maximize the sale proceeds under the given divorce conditions, including any Court Orders
Remain Neutral, Unbiased and Fair in dealing with both Parties
Understand the appropriate interaction with the family law attorneys and other divorce professionals throughout the process
Look for a Real Estate professional with specific divorce training and specialization
A commonly overlooked fact is that when a Realtor is hired to sell a marital house, both parties are clients. Unlike most other divorce professionals involved in the process who are hired by only one of the parties, the Realtor has a fiduciary duty to both parties. Therefore, it is a critical role that requires a high level of knowledge in order to avoid costly mistakes and to reach a successful conclusion.
A specialized Realtor in Divorce Real Estate will also have experience and expertise in the following areas:
Effective handling of emotional conflict and communications in a potentially contentious situation, including keeping the parties focused on keeping the process civil and in the best financial interests of both parties
No drama. Calm, cool, level-headed and even-tempered personality. Someone familiar with high stress situations, does not shy away from controversy and can deal with the challenges head-on. Someone you can trust!
The pros and cons of one of the parties keeping the home and buying out the other party
Highly experienced in negotiations with buyers and dealing with unreasonable Property Inspection requests
The implications of Family Law in relation to Real Estate transactions
Tax issues regarding the sale of a marital house
How alimony and child support can impact Real Estate decisions in a divorce
How credit scores and bankruptcy can impact Real Estate options and decisions
Determining the market value of property and listing price within a divorce timeline, no matter what the market conditions are
Cost-effective strategies to get the house ready for listing (repairs and staging)
Strategies to avoid adverse credit effects on future financial position
How real estate fits into Florida’s property and asset division under Family Law
Do you have a game plan for your real estate and living situation port-divorce?
There are so many people that we talk to that have no idea where they are going to live or what they are going to do once their home is sold. We've learned to dig deep into this with the parties to make sure we have a game plan on what they will do once they no longer have their home post-divorce. Many times, this means getting pre-approved to see if they qualify to purchase a home and for how much.
Besides the pre-approved amount, the parties needs to find out exactly how much downpayment is necessary and what the monthly payments will be for the mortgage, insurance, and any other monthly fees for the home. Following a divorce, it is common for both parties to not have a credit rating good enough to purchase another right-sized home. So finding this out sooner rather than later makes sense!
If a party has to rent because of poor credit, it is best to find out what they qualify for and what is available within an affordable price range. Since there is one less income to pay for expenses, it is extremely important to create a realistic budget for the future with real numbers. This is why we provide you and your family law attorney, if you have one, with the right numbers from our analysis.
Getting to the Right Numbers. Goals and Objectives of Divorce Real Estate Guidance
Our analysis and guidance will help the divorcing parties preserve, to the extent possible, property ownership eligibility going forward – the ability to obtain or refinance a mortgage loan during and post-divorce. We will advise you on how to preserve your credit scores for both parties (avoiding mortgage delinquencies, etc.)
We help you avoid gaps in the your Divorce Case File regarding real estate evidence – mainly:
Title Issues. Is it OK to assume your Title is Free and Clear in a Divorce situation?
Need to determine house physical condition and maintenance issues going forward to understand ongoing capital expense implications
Determine insurability of the house going forward
The limitation of Appraisals. They generally do not cover these gaps due to the Statement of Limiting Conditions of an Appraiser’s Certification.
Rely on appropriate Home Inspections that lead to higher level information
We help you achieve full disclosure and informed consent from both parties regarding their real estate decisions based on the information and financing options discovered and presented by our Specialist Team:
Increase confidence in factual and correct Marital Balance Sheet Real Estate Asset & Liability values and actual Equity in the house
We advise you on Real Estate document and information gathering and other related actions in order to establish your:
Enhanced Property Due Diligence
Divorce Mortgage Guidance
Be comfortable that the divorcing parties are making informed and voluntary decisions regarding their real estate, based on thorough and enhanced information provided at the right time!
For the the retaining party (the one keeping the house) they should keep the house for all the right reasons if they are aware of the risks, and they are comfortable with and understand those risks
The Challenges of Selling Marital Real Estate in a Divorce
Our first step is to establish what we call the Marital Intake. Why is the Intake so important?
Well, we find out about issues that will affect the sale of the property and in doing so we understand each of the parties’ expectations. We give each party an opportunity to communicate to us their perspective, and to be heard.
If our analysis shows that the best option is to sell the marital house or other property, then you should be aware that there are significant challenges ahead. We are trained to face them and deal with them appropriately:
The litigation process can affect the timing of the sale of the house
The signed Listing Agreement must be obtained from both parties
Each spouse desires to sell at a different pace, and their readiness to move onto the next chapter is going to show in their behavior. As trained specialists in Divorce Real Estate we can deal with this
The reason most Divorce Real Estate Listings fail is because of the untrained real estate agent who:
Fails to understand the legal process
Does not follow a clear divorce intake and listing model
Does not work closely with the Attorneys and other divorce professionals
Is unable to manage conflict and emotional turmoil between the divorcing parties
Fails to remain neutral during the process. Neutrality is the bedrock of Divorce Real Estate!
What is more important than getting the parties to agree with one another? - Getting them each to agree with your Divorce Real Estate Specialist! We are trained to do this!
If the divorcing parties have children, there are even more challenges. How moving to a new neighborhood and school may affect their extracurricular activities as well as relationships with old friends and neighbors. Sometimes one parent can’t afford to live near the other one, and the distance affects the child custody or parenting plan