Divorce: What You Need to Know About Your House, Your Home Loan and Taxes

How to Avoid Costly Housing Mistakes During and After a Divorce

Divorce is rarely easy and often means a lot of difficult decisions. One of the most important decisions is what to do about the house.

In the midst of the heavy emotional and financial turmoil, what you need most is some non-emotional, straightforward, specific information and answers. Once you know how a divorce affects your home, your mortgage and taxes, critical decisions are easier.  A neutral, third party can help you make logical worthwhile decisions, with useful information, rather than making emotional ones.

Probably the first decision is whether you want to continue living in the house. Will the familiar surroundings bring you comfort and emotional security, or unpleasant memories? Do you want to minimize change by staying where you are, or sell your home and move to a new place that offers a new start?

Only you can answer those questions, but there will almost certainly be some financial repercussions to your decision process. What can you afford? Can you manage the old house on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? We can help you to determine what you can afford.

You also need to consider do you have a Separation Agreement in place?

Items to Consider:

Review your tax withholding status at your job. If you become 'single' again you will have to determine if you're having the correct amount withheld from your paycheck by your employer. If you have too much taken out of your paycheck, you'll lose the use of that money until you get your tax refund. However, if you have too little withheld, you might have to pay a penalty.

You also need to update your insurance needs. Perhaps you need to increase or decrease or coverage depending on your situation, or consider a different type of insurance. Perhaps you can consolidate your policies with the same company to save money. Call your Insurance Agent for more information.

Update your will, emergency contact list, and beneficiaries. Keep your legal documents up to date with every change in your family situation. You don't want your ex-spouse to inherit your house. Besides updating your will, review the beneficiaries you declared on all your retirement accounts and insurance policies. 

This information is not intended to offer legal advice. Please consult a lawyer for legal advice. 

Selling a Home with Pets
Selling a home with pet(s). This is a widely discussed and a very sensitive topic. Typically, to avoid discouraging a potential Buyer, your home should give the appearance of being pet free.

When you are considering selling your home, and it is time for the open house, or potential Buyer’s are viewing your home, the threatening bark of your dog, can make the potential Buyer uncomfortable, and possibly discourage them from purchasing your home.

By temporarily removing pets from the home, you are also taking into consideration the best interestst of your pet, as potential visitors may accidentally lock your pet in a room, or worse, accidentally let your pet outside.

There are many options. Consider asking a friend, or family member to take your pets when you are having a showing or open house. Another option is to visit the local kennel.

Most pet owners may not realize that pet odors do exist. Although even something as simple as the odor from your cats litter box, or the smell of a wet dog can leave an impression on a potential Buyer, jeopardizing the sale of your home.

Another reason to remove any evidence of a pet is allergies. Today more and more people are developing allergies, especially to pet dander.

If you have pets, ensure that you steam clean the carpets, and give your home a thorough cleaning, including baseboards, and change the filters in your furnace.

Consider removing your pets food, toys, and beds from the home. This will reduce odors, as well as clutter..

Lastly, review your lawns. Ensure that all “droppings” are removed and that your grass remains green and not “scorched” from the pet urine.

        In conclusion, a pet-free home which is clean, absent of odors, and clutter will help to increase the chances of selling
          your home.

Selling your Home in a Buyer’s Market

PRICE

Price should be the first item to address when you want to sell your home quickly in a Buyer's Market. In a Buyer’s Market, listings tend to take longer to sell. If your home is overpriced it will take even longer to sell and most likely you will have to reduce the price eventually.

When deciding the price to list a home, it is imperative to review what similar homes have sold for in your neighborhood for the past 6-12 months. Jodi and I always stress that in a Buyer’s Market, you need to give the potential Buyer a reason to view your home. That is why is important to price your home around the same price as the competition or even slightly less. If you over price your home, you run the risk of potential Buyer’s totally skipping over your home.

The First Impression

The average Buyer takes less than 7 seconds to make an unconscious decision about the home they are viewing. That is why it is important to ensure that your start with the outside of your home and ensure that is clean and tidy.

Always ensure that the grass is cut, weed free, or that snow is shoveled.

Ask yourself the following questions:

·                      Is your doorbell in good shape and operational?

·                      Is your front door clean and nicely painted?

·                      Is your home tidy? Are there dishes in the sink, clothes on the floor?

·                      Are the beds made?

·                      Do you smoke or have pets? These 2 odors alone will turn off potential Buyer’s.

In conclusion, the condition of your home and pricing are the 2 major factors that Sellers should consider in a Buyer’s Market.

In a Buyer’s Market, marketing your home is also a major necessity. Our proven marketing plan, ensures the your home is marketed and seen everywhere.

   How to Understand and Influence the Appraisal Process
   When you are selling your home; the Buyer’s mortgage company will require an appraisal to be done on         your home. 
    Knowing how you can maximize the value of the appraisal may increase the value you get for your home.

It is rare for a home to sell exactly for its appraised value. Mortgage companies will only lend up the appraised value. Therefore, most homes will sell at or below its appraisal value.

Unfortunately, appraisals are subjective, and can be manipulated.

The appraisal process starts by comparing your home to sale of 4-5 other similar homes in your neighborhood. The appraiser will compare: number of bedrooms, bathrooms, square footage, etc). Once the appraiser has identified similar homes to yours, they will adjust your price up or down based on upgrades that you may or may not have. (ex new bathroom, new kitchen, etc). The appraiser will grade your home using terminology such as: excellent, average, poor. Unfortunately, this evaluation is subjective on the appraiser.

Ideally, if you can be present during the appraisal, you can point out renovations, and upgrades in in your home. Basically, the more upgrades and renovations you can point out, will help you to receive a more accurate appraisal of your home.

See if the appraiser will show you his/her comparables. You may be able to help by advising what you know of the homes being used as a comparable. (Your square footage is more, you have pot lights, larger lot size, etc). 

By you taking a proactive role, you can help the appraiser better understand your home and neighborhood, and possibly you will receive a higher appraisal.