The Realtor of Divorce

Did you know…that your house or condo may be a large part of the division of assets during a divorce? You may be awarded the house in the settlement or you may be ordered to sell your house. Either way, there are some things that you need to know. First, if you are awarded the house, you need to understand that it does not necessarily mean that you can afford to keep it. There are many women who have fought to keep their houses for their children’s sakes only to end up with a bank foreclosure on their home. Pay attention to the current real estate market and interest rates. Do not assume that keeping the house is a good thing, until you weigh all of the possibilities. If you are ordered to sell the house, you and your soon to be ex-husband will probably have to communicate and agree on certain things. As most of you know, this is not an easy task in and of it’s self. You will have to agree on a realtor and a price, depending on the court’s requirements. Keep your antenna up! People are not always as they seem, when the almighty dollar comes into play.

First of all, you need to face the fact that most realtors love divorces. “Why?” You ask. Well, the answer is simple. They make more money when there are more divorces. Depending on the state where you live and who is offering the statistics, the percentage of houses that are listed because of divorces is from 25% to 35% of the total number of listed houses. Many realtors are “friends” with divorce lawyers. Think about this. Your husband’s attorney suggests an “impartial” realtor who will get more business if he or she makes your husband’s attorney happy. In order to make your husband’s attorney happy, your husband needs to be happy. In this case, “impartial” is more correctly defined as “predisposed” to help your husband, not you. In addition, the reality is that many realtors talk a good line about how much they care about your situation. Do not fall for it. Many of them only care about their commission and that is OK as long as you are aware of that fact and you are not naive. Obviously there are exceptions to this, if you are lucky enough to have trustworthy devoted friends who happen to be realtors. If you are struggling financially, there may even be the rare realtor who might offer a lower commission for you.

Here is a little bit of insight into the reason that many realtors love to see an increase in divorce statistics. In the “old days,” a realtor might sell one or two houses to a couple during their lifetimes. With higher divorce statistics, look at the scenario of a realtor who helps a couple buy their first home. The couple may even go to the same realtor, when they are ready for a bigger house. Then the couple breaks up and the realtor can potentially sell them, two more houses or condos. You see, when divorce breaks up a family, there are then two households instead of one. The condo selling rate has to be huge as older couples, not only divorce but might want to downsize. Then, guess what? If you meet Mr. Right, there is a possibility that your home will be for sale again. It seems that the divorce rate goes up when the economy improves. Average households are getting smaller since 55% of all marriages end in divorce. It follows that there is more housing needed for the same sized population.  The realtors enjoy many more real estate deals than in years past when the divorce rates weren't so high! We have all heard the term, “ambulance chaser” when it is related to some attorneys. I think the description of some realtors might be similar. Maybe they are “wheel and deal estate brokers" or “break up brokers.” Some realtors may be saddened by the fact that there is a breakup.  Maybe they have gone through the same experience and understand the pain and financial devastation. Human nature dictates that the concern stops there, after all selling houses and receiving a large commission is what realtors do for a living.  

A very important fact is that real estate people work on trust.  When that trust is violated their effectiveness goes out the door and they may be likened to used car salesmen who sell you a car that falls apart, when you drive it off the lot. Once a trust is violated, things change. A good realtor can make the process smoother and a bad one can add more stress to an already stressful situation. Major events in life that cause stress are divorce, moving, selling your home, financial problems, loss of job, changes in family and life style. Add to those factors, being duped by a deceitful realtor, the result may be a stress level that is off the Richter scale. 

In addition to the fact that each of the sellers must have equal access to all information regarding the sale of the house, each of the divorcing sellers has a say in the acceptance or rejection of a potential contract of sale. Depending on the state where you live, the sellers and their realtor may be required to sign an agreement. This document states the specifics pertaining to the relationship and requirements of the seller’s agency to the sellers. Specifically, a seller’s agency is required to work only for the sellers. The seller’s agency must maintain a loyalty to the sellers by acting in their best interest. They must keep confidential any facts regarding the sellers. This would include but would not be limited to keeping confidential any of the divorce information that has been disclosed to them as seller’s agent. An example might be one where the divorce judgment included a statement that the sellers would have to accept any offer with in 5% of the asking price. Disclosing this number to the buyers or the buyer’s agent without both of the sellers’ authority would be a breach of ethics.  A realtor who divulged such information, would come under the scrutiny of the state involved and could lose his or her license and or be fined, not to mention sued.