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JUNE 2018 • VOLUME 23 • ISSUE 2
Agent advises to 'stay in your lane' when selling divorced listings By Riki Markowitz
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here’s a pretty lucrative niche real estate category that in some markets seems to be hiding in plain sight. Many agents in this field say that getting just one listing for a couple in the process of terminating their marriage can lead to more word-of-mouth referrals. And after a divorce finalizes and the sale closes, there’s also the possibility that one or both partners may retain your services to purchase a new home. On paper, it sounds like a win-win situation
all around. But in a saying popularized by the social media generation, it’s complicated. Justine Smith, a broker/owner at Moxie Realty Group, says that working with a couple that is not on speaking terms can have a negative effect on everyone. “It can be very adversarial and it’s definitely stressful,” says Smith, who is a certified divorce real estate specialist (CDRES). “Sometimes they even try to use you as a pawn.” She adds, somewhat tonguein-cheek, “I think every agent should have a degree in counseling.” Many certified divorce specialists in the real estate field suggest getting some training in mediation. In the U.S., 1.2 million couples get divorced every year, according to Carol Ann Wilson, a certified financial divorce practitioner who has been working in this category for more than two decades. Of these divorce cases, more than 70 percent involve either selling a home, buying a home or both. Each year, an entirely new group of one-million-plus couples starts the process anew. So there’s always a demand for agents experienced in this field. Before you jump in feet first, like every real estate category, there is a lot of information that divorcing clients need to know and it is the agent’s job to explain it, such as relevant capital tax gains laws and exclusion rules, rights and deadlines. Clients also need to know the advantages of selling their home and filing a joint tax
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return while still technically married, versus a post-divorce sale and filing individual tax returns. If they want to sell before the divorce is finalized, there’s not a lot of time to waste on arguments and settling scores. In these transactions, there’s often a third or fourth party that can help you inch your clients toward closing. Each partner’s divorce attorney can step in when heated emotions are interfering with your job. Christy Gessler, broker/owner at Freedom
512 Real Estate Group, said she was working on selling a home in rural Burnet County. “The husband and wife could never agree on a sale price,” she says. “They always wanted to sell much higher, even if it wasn’t reasonable.” When you have angry – maybe even vindictive – ex-spouses for clients, the agent is almost like a proxy for one partner. While Gessler presented her clients with an unbiased, fair-market
Front Page: Continued on page 28
Features of the Month Column: ABoR—It's summer and time for school!. . . . . . . . . . . . . . . . . . . . . . . . .pg. 4 Column: WCREALTORS—I Don't! What to do when clients divorce. . . . . . . . . . . . . . . pg. 7 Column: HBA—Mid-Year Housing Forecast tickets available while they last. . . . . . . . pg. 17 Column: Women's Council—Selling divorced listings. . . . . . . . . . . . . . . . . . . . . . pg. 20 Expert Commentary: Something to think about when buying real estate investments. . pg. 22 Associates in Progress: Deerbrooke in Leander . . . . . . . . . . . . . . . . . . . . . . . . . pg. 25 Associates in Progress: SouthStar Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 27 Column: RRC—Take great care when selling divorced listings. . . . . . . . . . . . . . . . . pg. 31 Upcoming Events. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 33