Selling While Separating: Part 3 of 3 – Finalizing Your Home Sale During a Divorce and How to Move Forward with Confidence
Welcome to Part 3 of the blog series, Selling While Separating!
Throughout this 3 part blog series, we’ve covered:
The First Steps To Take When Selling Your Home During a Divorce (read here!)
How To Prepare To Sell Your Home While Separating (read here!)
Finalizing the Sale During a Divorce and How to Move Forward with Confidence (you’re here!)
This blog series was born after I recently had the pleasure of working with a client who was going through a divorce and throughout the entire process, she kept asking me reallyyyy good, valid questions and it made me think…
More people are probably wondering these same things.
Even though selling while separating doesn’t feel like something fun to talk about, the reality is that it’s something that a LOT of people go through and need to know about.
My hope throughout this series is that you can ease some of the stress you might be experiencing and be able to make a decision that you feel good about and move throughout the process with ease – so let’s dive in!
How To Navigate Offers and Negotiations When Selling Your Home During a Divorce
When you’re selling your home, receiving an offer is SUCH an exciting feeling! It instantly feels promising and often makes sellers feel super confident that their transaction will move quickly.
While it’s true that receiving offers on your home is a good sign, my best advice when working with clients who are selling their home is to not get their hopes up quiteeee yet.
When we receive offers on your home, we need to do a little investigation first in order to see if the offer is even something you want to entertain. 🕵️♀️
For example, if the buyer offers wayyyy under asking and has outlined a ton of contingencies in their offer, there’s a chance it’s not an offer that will be at the top of your list for consideration.
Not to mention, when you’re selling while separating, there’s more than one person involved that has to be on board with the offer!
Ideally, before you even list your home for sale, you would discuss and agree on the minimum acceptable offer with your ex-spouse beforehand so that you’re both on the same page before offers even come in.
This bottom line should consider outstanding mortgage balances, any shared debts, and the costs associated with selling the property. Having a predetermined minimum offer can streamline the decision-making process when offers come in.
Then, once you DO start receiving offers the first step is to carefully review the terms and conditions outlined in the offer letter. Your real estate agent will typically go through this paperwork with you and help you fully understand exactly what the offer entails.
You don’t want to rush this or breeze over it! It’s incredibly important to view the offered price, proposed closing date, contingencies, and any additional terms the buyer may have included, so that your agent can help craft an appropriate response and help you decide how to strategically proceed!
How To Choose The Right Offer As The Seller
So, what do you do if the offer isn’t exactly what you and your ex were hoping for? My answer: it depends! Let me explain…
If you receive a ton of offers on your home, first you’ll do a little happy dance because that means your home is competitive, which is a GREAT thing. 💃🏻
Next, you’ll want to go through each of the offers very carefully and start ranking your top picks.
This often includes examining the offer price, contingencies (if any), closing timeline, buyer letters, etc. in order for you to choose the offers that stand out the most. During this process, your real estate agent will also help guide you and give their suggestions when needed.
One thing to note here is that it’s a common misconception that the highest offer is the one that always wins. In my experience, however, high offers can sometimes be beat out based on other factors.
For example, an all-cash offer with a quick closing might be more attractive than a higher offer that's contingent on the sale of the buyer's current home.
Other times as the seller, you might be in a situation where you’re in a hurry to sell, like a separation in this case, and may prioritize a quick and hassle-free closing over getting the highest possible offer.
The point here is that every seller’s circumstances are different and YOUR specific scenario will heavily influence the offers that stand out to you as the most appealing!
On the other hand, if you only receive one or two offers on your home and none of them are stand out offers that you’re super excited about, it’s time to negotiate.
And I know what you might be thinking… negotiate?! That sounds intense and scary. But trust me, it’s a totally normal and common thing in the real estate world.
This is where working with a local, trusted real estate agent is going to come in handy because this is what they are trained to do. You shouldn’t be left to come up with negotiation tactics on your own. Instead, you want to have someone on your side that has done this before so you can do it correctly and strategically!
For a list of potential negotiation strategies you can use as a seller, CLICK HERE.
What Happens After You Accept A Buyer’s Offer
Once all offers have been reviewed and you’ve gone through any negotiations needed, you’re one step closer to the finish line. But it’s not quiteeee over yet. 🏁
When you accept a buyer’s offer, they will then have the opportunity to conduct an inspection prior to closing. While these aren’t required, most buyer’s agents will recommend that a buyer has an inspection so that they are fully equipped with an in-depth understanding of the property's overall condition.
Additionally, once the inspection is completed and negotiated, the bank will order the appraisal. Similar to a home inspection, a home appraisal serves multiple purposes, primarily to determine the fair market value of a property.
It's an important step in the home buying process and is often required by lenders before approving a mortgage. During this step, an appraiser will evaluate the property's characteristics, condition, and comparable sales in the area to determine its current market value.
This value determination helps both, the buyer and the lender, understand what the property is worth. Once the market value is clearly understood, the buyer’s lender will use the appraisal to ensure that the property's value justifies the loan amount.
This information is important for you to know as a seller because just like a home inspection can be used as a negotiation tool, an appraisal can too!
This is why one of the FIRST steps that we take when you’re ready to sell your home while separating is conduct a market analysis to ensure that we’re listing your home correctly from the start, so that we can yet again hopefully avoid any under contract negotiations.
Overall, my best advice during this part of the process is DON’T. GET. COMFORTABLE. 🙅🏼♀️
In my experience, home sellers often make the mistake of not putting in the effort after the contracts are signed. And trust me I get it – accepting an offer often feels like the final step where you can sit back and relax.
But the way that you act during the under contract phase is JUST as important!
The biggest mistake you can make is to not make your home show ready any time that buyer or their inspectors are walking in. You want to keep them excited and looking forward to living life in your home.
For a closer look at what you can expect during the inspection and appraisal as a home seller AND for a few ways to prep your home for inspection, CLICK HERE!
How To Navigate The Closing Process As A Seller
Once the inspection and appraisal process have been completed, you’re EVEN CLOSER to the finish line and I’ll be honest – those last few days prior to closing can feel hectic as the seller, but my motto is always this: if we have a plan, the smoother the process can go.
Ideally you will already have your movers set up, so that you know exactly when your property will be vacant.
When you sign your final documents at closing, the home should be empty and ready for its new owners, unless you’ve negotiated a post closing occupancy or a rent back agreement. In most situations, however, the home will be clean, empty and ready for its new buyers to start moving in as soon as they leave the closing table.
Overall, the 7-10 days before closing is really the buyers time to shine. They will be working with their underwriting team during this time to get the final approval.
Once they receive final approval from the bank, we’ll then schedule the closing. The contract date for closing is always a moving target, but we try our best to hit that target best we can!
In Montana, we close at title companies, but some states use attorneys or closing offices. Regardless of where you close, the closing appointment is where both parties will sign ALL the documents that will transfer ownership of the home to the buyer and the buyer submits all of their required funds to purchase the home.
Once all paperwork has been signed and funds have been disbursed, the buyer is officially the new owner of the property and you have officially sold your home! 🙌🏼
Need an agent to help you sell your home while separating?
Overall, selling your home during a divorce can be emotionally taxing, but staying focused on the end goal, which is finalizing the sale and moving forward, can help you navigate the process with confidence.
Remind yourself that this is a step towards a new chapter in your life, and maintaining a realistic approach will help you achieve the best possible outcome.
By following these steps and working collaboratively with your ex-spouse and your real estate agent, you can successfully navigate offers and negotiations, ensuring a smoother sale process during a challenging time.
If you’re currently going through a divorce (or are about to be) and you need a trusted agent on your side in Billings, MT, CLICK HERE to get started on the right foot.
I’ve personally navigated this journey before and I know how it can feel, which is why I’m dedicated to helping you go through it with ease!
P.S. Not local to Billings, MT? Good news for you – I know people!
Connect here and I’ll get you in touch with a trusted agent in your area that can help you downsize your home with ease.