Category Archives: House Selling During A Divorce

Navigating Property Division in South Carolina

25 Friday Aug 2023

Posted by in Divorce Real Estate, House Selling During A Divorce

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Understanding Different Home Valuation Methods

Divorce is a challenging journey, often involving the complex task of dividing marital assets, including real estate properties. One crucial aspect of this process is determining the value of your home accurately and fairly. While your personal perception of your home’s worth matters, it’s important to be aware that property settlements rely on professional valuation methods that might provide varying results. To help with navigating property division in South Carolina in this article, we’ll explore four common valuation methods specifically relevant to divorcing couples in South Carolina: Comparative Market Analysis (CMA), Broker Price Opinion, Cost Approach, and Professional Appraisal.

1. Comparative Market Analysis (CMA)

For divorcing couples in South Carolina, a Comparative Market Analysis (CMA) is a key valuation method, often conducted by real estate agents. This approach involves evaluating your property against recently sold properties with similar attributes in the same region. By analyzing factors such as size, condition, location, and recent sale prices of comparable homes, a CMA offers an estimate of your home’s current market value. CMAs are especially useful in property settlements as they reflect ongoing market trends and the actual prices at which similar properties have been sold locally.

2. Broker Price Opinion (BPO)

A Broker Price Opinion (BPO) is a valuable tool for divorcing couples in South Carolina seeking a comprehensive property valuation. This method entails a licensed real estate agent or broker assessing recent sales, current listings, and the overall condition of your home. A BPO considers both objective data and the insights of the real estate professional to determine an estimated value. This approach is advantageous in property settlements as it provides a well-rounded evaluation of your property’s value, considering both data and expert judgment.

3. Cost Approach

The Cost Approach is particularly relevant for unique or custom-built homes and can be significant for divorcing couples in South Carolina. This method centers on the cost of replacing or reproducing the property. It considers the current construction cost, minus depreciation, along with the land value. While the Cost Approach may not directly reflect market dynamics, it offers insights into your property’s worth based on construction, materials, labor costs, and land value.

4. Professional Appraisal

Divorcing couples in South Carolina can also opt for a Professional Appraisal, a formal and comprehensive valuation conducted by a licensed appraiser. Appraisers are trained to evaluate a property’s value using diverse methods, including the Cost Approach, the Sales Comparison Approach (similar to CMA), and the Income Approach (relevant for income-generating properties). Professional appraisals are often considered objective and impartial, making them a common choice for property settlements. They provide an in-depth, legally defensible valuation considering the property’s characteristics, location, and recent sales data.

Conclusion

For divorcing couples in South Carolina, property division involves a nuanced understanding of your home’s value. While your personal perception matters, it’s crucial to recognize the significance of professional valuation methods. Comparative Market Analysis, Broker Price Opinion, Cost Approach, and Professional Appraisal are vital tools in this process. Each method offers unique insights and considerations, enabling you to make informed decisions about your real estate assets. By engaging with real estate professionals and appraisers, you ensure a thorough, unbiased, and market-relevant valuation process that facilitates equitable property division in your divorce journey.

If you want to know what your home is worth, contact us today at RMF Realty Team. Our experienced professionals are here to guide you through the valuation process and help you make the best decisions for your property settlement.

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Maximizing Your Home Refinancing Options After Divorce

20 Monday Mar 2023

Posted by in Divorce Real Estate, House Selling During A Divorce

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Divorce can potentially be a factor when refinancing a mortgage loan, depending on the specific circumstances of the divorce and the mortgage loan. Here are a few ways in which divorce could affect refinancing:

  1. Change in ownership: If the divorcing couple jointly owns the home, one spouse may choose to buy out the other’s share of the property. This could affect the refinancing process, as the new owner may need to apply for a new mortgage loan in their name alone.
  2. Change in income: Divorce can also result in a change in income for one or both parties. This could impact the ability to qualify for a mortgage refinance, as lenders typically consider income when assessing a borrower’s ability to repay the loan.
  3. Credit score: If the divorce results in missed mortgage payments or other financial difficulties, this could negatively impact both parties’ credit scores. This could make it more difficult to qualify for a refinance or result in higher interest rates or less favorable loan terms.
  4. Marital debt: If the divorcing couple has joint debt, such as credit card debt or personal loans, this could impact the ability to qualify for a mortgage refinance. Lenders may take the couple’s combined debt into account when assessing the borrower’s creditworthiness.

Overall, while divorce can be a factor when refinancing a mortgage loan, it’s important to speak with a lender or financial advisor to fully understand how your specific situation may impact your ability to refinance.

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rozalynfranklin@kw.com

The Housing Market Is Positioned to Help the Economy Recover

07 Tuesday Apr 2020

Posted by in Home buying, Home Ownership, House Selling During A Divorce, Investing In SC Real Estate, SC Home Sellers, Uncategorized

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The Housing Market Is Positioned to Help the Economy Recover [INFOGRAPHIC] | MyKCM

Some Highlights

  • Expert insights are painting a bright future for housing when the economy bounces back – and it will.
  • We may be facing challenging economic times today, but the housing market is poised to help the economy recover, not drag it down.
  • Let’s connect to make sure you’re informed and ready when it’s time to make your move.

How Long Can This Economic Recovery Last?

21 Thursday Nov 2019

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How Long Can This Economic Recovery Last? | MyKCM

How Long Can This Economic Recovery Last?

The economy is currently experiencing the longest recovery in our nation’s history. The stock market has hit record highs, while unemployment rates are at record lows. Home price appreciation is beginning to reaccelerate. This begs the question: How long can this economic recovery last?

The Wall Street Journal (WSJ) Survey of Economists recently called for an economic slowdown (recession) in the near future. The most recent survey, however, now shows the economists are pushing that timetable back. When asked when they expect a recession to start, 42.5% of the economists in the previous survey projected between now and the end of 2020. The most recent survey showed that percentage drop to 34.2%. Here are the most current results:How Long Can This Economic Recovery Last? | MyKCM Like the economists surveyed by the WSJ, most experts are still predicting a recession will likely occur sometime in the next few years. However, many are pushing back the date for the economic slowdown.

Bottom Line

Real estate is impacted by the economy (and the consumer’s belief in the strength of the economy). The fact that most economic experts are calling for the recovery to continue through 2020 means the housing market will also remain strong for the foreseeable future.

Steps to Sell Your Home During Divorce

21 Thursday Nov 2019

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One of the most productive ways for couples to move forward and on with their lives is to handle the sale of the family home in a businesslike manner. Because the family home is usually the greatest asset in a marriage, it is also the greatest liability.

Making the sale of the family home a priority can help to eliminate the stress associated with divorce.

Settlement agreements executed by your attorney or financial advisor are great starts. Consult your legal advisor for contingencies that are specific to your situation for advice on how to sell your home during divorce.

This agreement should specify a timetable for the sale of the family home.  It should label who is financially responsible for the mortgage, homeowner’s insurance, utilities, upkeep, and any additional expenses.

The agreement should also outline the steps to be taken if the house cannot be sold within a specific time, or if one spouse fails to meet any financial obligations.

Here are Some More Tips to Sell Your Home During Divorce.

Hiring The Real Estate Agent

Hiring the right real estate professional will be top of mind. Both parties or the one occupying the home may choose the real estate professional.

Choosing the right real estate professional is important.  Most people personally know a real estate agent. Try to work with real estate professionals experienced in working with couples going through divorce.

There are real estate professionals who focus specifically on helping people who are going through a divorce. Known as Real Estate Divorce Specialists or (Experts), these professional are trained in the legal and tax aspects of divorce.

Handling the family home improperly during a divorce can result in one or both spouse’s inability to qualify for a mortgage for many years. A real estate professional experienced in the divorce niche can provide their clients with step by step guidance to protect themselves.

Determining Property Value

Since the family home is typically one of the most valuable marital assets, dividing the property between a couple during a divorce can be a major source of frustration.  There are several common valuation methods available to determine the value of your home. They may differ from what you perceive as your home’s worth.

1. Comparative Market Analysis (CMA): An in-depth review of your home’s worth in the current market based on recent sale of comparative homes.

2. Broker Price Opinion (BPO): A process used by a hired sales agent that determines the potential selling price or estimated value of the real estate property.

3. Professional Appraisal: An independent professional is required when a court is dividing the couple’s assets to determine the fair market value.

Preparation For The Sale

Listing, showing, and preparing the home for sale may fall on the occupying spouse. This is a difficult task that can stir lots of emotions and frustration. There may be some reservations about selling the family home from one party.  Roadblocks in the sale process may occur, including denying showings or delaying repairs. This is where the settlement agreement can helpful.

Repairs Before and During the Sale

Preparing the family home for sale may include cosmetic or major repairs such as painting, flooring, appliances, landscaping, etc. There should be clear direction on how to handle the unexpected while in the process of selling the home.

The settlement agreement may cover some or all of the responsibility. Knowing who is responsible will help speed up the process and get the maximum value of the home.

Remember: quick decisions can be damaging, especially when it comes to co-ownership. Even more so when one spouse is occupying the family home until it sells. Keep emotions at bay while making important decisions. Getting the home sold should be both party’s major focus.  This will help you and your ex-spouse move on faster.

Keeping The Family Home In A Divorce

22 Thursday Aug 2019

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Many divorcing couples with small children often decide to allow one spouse to remain in the house to avoid disrupting the children’s routines.  This can be done with written agreement between the spouses. Equitably mutually agreeing on delegation of financial responsibility will allow your family to focus on what matters most: the children

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A signed agreement drawn up by a mediator will help avoid questions surrounding responsibility for the maintenance, expenses, and future sale of the family home, whether it be to the spouse who remains in the home or an outside buyer. This reason alone is why it is important to know your financial position and how much each spouse can contribute. If one spouse fails to make their share of payments, it can negatively affect both parties credit rating and complicate the later sale of the home.

Be aware, some spouses are tied to the home, not only by their children, but by their own emotional investment. The house represents stability, a happier time and provides shelter from the trauma of divorce. In keeping it, they feel more in control of their situation. Some may think that keeping the home makes them the “Winner” despite the financial hardship it can bring. It is difficult enough to deal with divorce without later learning that unforeseen or UN-budgeted expenses have crept in and taken a big bite of an already tight budget. Be realistic about what is affordable.

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Preparing the House For Sale In A Divorce

22 Thursday Aug 2019

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Preparing the House For Sale In A Divorce

The first step in successfully handling the disposition of the family home in a divorce is to have a clear understanding of your financial standing. Knowing your precise financial situation throughout the emotional turmoil of divorce will keep you from making snap decisions that could severely impact your financial position.

It is crucial to know who bears the financial responsibility for making the mortgage payments. If both spouses are listed on the mortgage agreement, they are equally obligated to the lender, whether or not their name is listed on the property title. Removing a party from property title does not relieve the financial obligation of that party. Two signatures on the mortgage means two responsible parties. This also includes the homeowner’s insurance policy. It is important to know who is the beneficiary and if both parties are insured.

For previously stated reasons, it is critical that you collect and immediately provide all information regarding your home, such as  insurance,property taxes, liens, mortgages, marital debts, and marital assets to your lawyer. The more prepared you are to face your financial future, the more secure you will be in moving forward. Knowing where every dollar has to go will help you make better decisions and avoid adding undue stress to the already uncertain future that accompanies divorce.

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Knowing where you stand financially greatly influences your decision to keep, sell, or buy out the family home. There are many considerations for each option and they all require a significant amount of due diligence, financial planning, and difficult decisions.

Affordability and objective forethought are the keys to your decision-making process. poor decisions can affect you and your former spouse long after the divorce is final.

House Selling Options During A Divorce

21 Wednesday Aug 2019

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House Selling Options During A Divorce

Many questions arise when trying to sell a home during a divorce. What needs to be done to ensure a quick and profitable sale? Who will choose the Realtor? When is the best time to list a home? Who bears the financial responsibilities of the sale? You can proactively allay your fears and clear up misconceptions by doing your due diligence and researching what to expect throughout the selling process.

The court determines who receives what based upon a variety of factors, such as the relative earning contributions of the spouses. In addition there are mutual court orders that automatically protect marital properties. An automatic temporary restraining order prohibits spouses from selling, transferring, or borrowing against the property when a divorce is filed. This should be discussed with your attorney, as this protection varies from state to state.

The family home is typically a couples most valuable joint asset and must often be sold in order to equally distribute its value between the two spouses. Therefore, it is vital for you to understand the relationship and difference between a mortgage deed and a property title. Mortgages are conditional legal agreements made for the purpose of buying a property/home. The lenders security interest is on record when the title is registered and  lien is placed on the property. . Allowing the mortgage (lender) the right to obtain a foreclosure order to take possession if payments of the debt are in default.

A property title refers to ownership of the property and the right to use it. A person on the title can transfer ownership to another party but cannot transfer more than what he or she owns. Some divorcing couples utilize a quitclaim deed, which transfers ownership from one spouse to another, but it does not transfer financial responsibility. One spouse may transfer title of the home to the other and consider him or herself free from the financial responsibility of the mortgage payments, but this is not the case. The loan payments are are the responsibility of the parties on the mortgage. In order to change the names on the mortgage, one spouse must obtain financing with which to buy out the other.

Taking ownership in title is needed when one spouse is awarded the home, but buying the other spouse out and having the mortgage in the title parties name is what is needed for full ownership. This removes all financial ties of that spouse from the property.

Before being awarded the family home and having one spouse sign over their title rights, both parties should obtain a true value. Having a real estate professional go over a detail market analysis  for value is a recommend first start. Both parties should also consult a professional mortgage lender to be approved for a mortgage. Knowing how much the home is worth and how much house you can afford will help determine if the family home should be sold or if either party can afford the financial responsibility alone.

All discussions regarding mortgages, quitclaim deeds, and title of property should be conducted with your legal adviser.

Selling Your House During A Divorce

26 Wednesday Jun 2019

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How To Market Your Home

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Your home is unique. there is no other house exactly like it. Yes, it may share the same floor plan with five other houses in your neighborhood. but the individuality you have created out of your property makes it stand apart from your neighbors’. Your home’s value will be based upon similar homes purchased during a particular time, whether winter, spring, summer or fall. The real estate market is a complex entity that surpasses all speculation.

The Price Is Right: Remember sentimentality has no dollar value. Although you may have many emotional connections to your home, you must avoid placing a higher price on the property for sentimental reasons. It is highly recommended that you place all emotions aside during the sales process.

Leave room or negotiations – if the home is overpriced, it only makes comparable homes more desirable. The home probably won’t sell.

Price it according to worth – buyers will lump the home with like priced homes, knowing they can buy anytime for the price range

Under pricing generates interest – Under pricing will motivate buyers and perhaps create a bidding war. But if not, the goal of selling the home for more money has been derailed.

Remember this: If a potential buyer perceives the value of your home as greater than the actual price, he will be more willing to buy more quickly. The urgency to buy diminishes the closer the price and perceived value become.