New Year. Next Steps.
Divorce is painful. Very painful. You might be starting the New Year ready to take the next steps towards beginning the divorce process. It can take a lot out of us, mentally, physically, and emotionally and if children are involved, a brave front, possibly united or not, it’s exhausting.
One of the biggest worries we face when taking next steps is the uncertainty of our finances, especially if they’ve been tied to a spouse that is the main bread winner. You may not want to move from your current home for a myriad of reasons including but not limited to location and conveniences you’ve grown to enjoy and love, proximity to work, family and friends, and with children, their schools, and network of playmates and activities.
Some considerations we assist clients with when a home sale may be in question or imminent.
Appraised Value
Understanding the current appraised value of your home is vital to negotiation. We have several appraisal companies that will come to your home and appraise the value. Your attorney’s will need this as you begin the negotiation process. An appraisal can vary in price from $450-$900 depending on the square footage of the home. Having an independent appraisal provides a third party assessment of value that can be used during your settlement. It is more accurate than Zillow, Redfin, or websites that produce a value associated with your address. Appraisals can be used in some cases up to 120 days from the date inspected.
Refinance
We work through the numbers with you and ask relative questions that may assist you in refinancing the house with cash-out to pay a spouse their portion or agreed upon amount. This is often determined through your attorney assessing liquid assets, reviewing joint and individual property, income, and other variables. There are many loan programs to consider that may work for a short or longer period of time depending on your unique situation.
Comparative Market Analysis (CMA)
A real estate agent can issue a comparative market analysis to assist in determining the value of your home. This worksheet provides the most recent sales within a 6-month period in your area that are close to or similar to your home. Interviewing agents in your local market is an important piece of the sales process. Often agents with a niche in the community can provide insight to similar homes, challenges, and strengths of the neighborhood. Agents often rely on home stagers to prepare the home for photos, videos, and open houses.
Rent vs. Buy
A real estate agent can assist with the pros and cons of purchasing a new home or renting after your home is sold. It’s possible renting for 6 months to a year is more feasible and a better adjustment after the divorce is finalized. Purchasing another home may be the right decision and an experienced agent can walk you through this process every step of the way. Communication is key to finding a good fit with your agent. Experience cannot be highlighted enough as this can make the transition smoother overall.
Conclusion
Consulting with your attorney and trusted real estate agent and mortgage lender can assist in determining that the next steps assist this transition and provide options to consider.
