When to Buy and When to Sell Your Home During a Divorce
Divorce often brings complex decisions, and one of the most significant is navigating the real estate market. In this episode of the Amicable Divorce Network (ADN) podcast Lauren Loper, a realtor at eXp Realty, delves into the intricacies of buying and selling a home during a divorce. Alongside Tracy Ann Moore-Grant, the Amicable Divorce Podcast host and founder of the Amicable Divorce Network, Lauren highlights that real estate decisions are often unavoidable for divorcing couples, irrespective of the market conditions, and understanding the optimal timing for these decisions is crucial.
Lauren elaborates that timing, mutual agreements, and legal considerations are essential when selling a home during a divorce. She emphasizes that reaching amicable agreements on real estate matters—such as handling bills and whether to continue living together while the home is on the market—can expedite the process and reduce complications. Consulting with legal and real estate professionals is vital to avoid delays and potential legal issues.
“One major benefit of being amicable and reasonable is that parties can agree on key decisions, like listing a home for sale. They’ll need to decide on factors such as choosing an agent, covering the bills, and whether they’ll live together while the house is on the market. If they reach these agreements, they can include them in the settlement, move forward with the divorce, and simply execute the divorce agreement. On the flip side, if parties can’t reach the agreement then it’s up to the court and you’re letting a judge decide for you.”
-Lauren Loper, Realtor at eXp Realty
Tracy points out that handling real estate transactions during a divorce without professional help can lead to costly mistakes. Lauren expands on this by emphasizing that for sale by owner properties typically sell for less. Without a realtor, sellers may miss key disclosures, like mold issues, and struggle with negotiations against experienced buyers’ agents, creating unnecessary legal and financial risks.
“Homes sold ‘for sale by owner’ usually sell for 10-20% less. Sellers often face issues like undisclosed problems and poor negotiation, especially if the buyer has a savvy realtor.”
-Lauren Loper
When navigating a divorce and preparing to buy or sell a home, Lauren advises against making significant financial decisions, such as purchasing a new car or undertaking renovations, without professional advice. These actions can significantly impact your housing prospects and financial stability by affecting your income-to-debt ratio. Both Lauren and Tracy stress the importance of consulting with experts, including certified divorce lending specialists, to ensure that such decisions do not hinder your ability to secure a new home or affect the sale of your current property.
Lauren notes that the best time to sell a home is typically in spring, with peak months being May and June, while winter might present opportunities for urgent buyers. During a divorce, prompt action is crucial, even if it means selling during less ideal seasons. Her top advice is to collaborate with a trusted team of professionals who can navigate the complexities of real estate and divorce, ensuring informed decisions and adequate support during this challenging time.
To listen to the full episode and learn more about when to buy and when to sell your home during a divorce, click here.
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