Selling your house during a divorce in Davenport, Florida

Divorce is a painful time that many have to transition through. This dialogue covers many of the related issues when working with a real estate investor. At the end of the dialogue there’s an emphasis on doing the inspection first before giving the quote. But often the quote can be done beforehand because of the accessibility of Davenport’s online records and the experience of the investor.

Brian: Thanks for coming by Neil. This whole process has definitely been overwhelming. I’m just trying to figure out all of my options here.

Neil: Of course, I completely understand. Going through a divorce is tough enough, especially when adding real estate decisions into the mix. I hope I can make things as smooth and stress-free as possible for you.

Brian: I appreciate that. So, we’ve all heard about selling property to an investor, but I have to admit, I’m not totally sure how it works. I was under the mindset that selling your house during a divorce means hiring an agent and then listing it.

Neil: That’s definitely the traditional route, and for some homeowners, it works well. But selling to an investor in a divorce offers a different approach, one that makes a complicated situation more simple. Plus, saving time to let both parties start over is a key benefit. Let me walk you through it.

Brian: Please do. Time is definitely a factor for me. I wish my ex-wife the best despite our irreconcilable differences. This chapter’s got to be closed.

Neil: Understood. When you list with a traditional agent, your house could sit on the market for weeks or months. Speed to the closing is what people in a tenuous situation are looking for. With me, I can make a cash offer, and we can close in as little as two weeks.

Brian: Two weeks? That’s really fast. But how does that affect the price? I guess the elephant in the room is that I’m worried about selling too low just to speed things up.

Neil: Great question, and it’s a common concern. Investors usually offer below market value because we are responsible for the cost of repairs, renovations, and holding expenses, which you’d otherwise have to handle. On the other side of the coin if you were to list with an agent, you might spend months paying your mortgage, utilities, insurance, and property taxes while waiting for a buyer. The lowdown is until you pump money into fixing the wear and tear in the house, the selling process is prolonged. Not renovating means you will have to settle with a lower sale price.

Brian: That makes sense. If you do an inspection you’ll see that the house does need some work, and I definitely don’t have the time, money, or energy to deal with all of that. What kind of repairs do you think would need to be addressed?

Neil: From what I can see, the house looks fine structurally. But things like remodeling the bathrooms, painting the living room walls, or addressing potential Davenport inspection and code issues that could come up if you sold through a realtor. I know of one homeowner on Astrid Drive near Cooter’s Smokehouse whose electrical connection was damaged by a fence builder. That had to be fixed on his dime before the house could be sold.

Brian: That’s a relief to hear. So, you’d handle everything after the sale?

Neil: Exactly. No inspections, no appraisals, no last-minute demands from buyers. You get a clean break, and I take care of the rest.

Brian: Hmm. That does sound appealing. What about the closing costs? I’ve heard those can add up.

Neil: You’re absolutely right—they can. With a traditional sale, sellers often pay 6% in agent commissions and other closing costs. When you sell to me, I cover all closing costs. The price I offer is what you walk away with, minus any mortgage balance or liens, of course.

Brian: No commissions or closing costs? That’s a big plus. What’s the process like, then? How do we go from here?

Neil: It’s straightforward. First, I’ll assess your home and run some numbers to determine a fair cash offer based on the condition, location, and the current housing market. Once you’re happy with the offer, we’ll sign a simple purchase agreement. After that my team handles all the paperwork and we schedule the closing date that works best for both of you.

Brian: The process seems smooth but is it really that simple?

Neil: Maybe not that simple in every situation. But a lot of homeowners I work with are surprised at how streamlined the process is. You won’t be left guessing or worrying about hidden fees. For me transparency is key.

Brian: That’s good to hear. Right now I don’t think I can handle any more surprises.

Neil: Understandable. And if you don’t mind me asking, what’s most important to you in this sale? Is it the timing, avoiding repairs… or something else entirely?

Brian: Honestly, all of it. But timing is really crucial because my ex-wife and I need to finalize everything soon. Avoiding repairs and simplifying the process are huge bonuses too. I just want to move on without this house hanging over my head.

Neil: Got it. I think selling to an investor like me could really check all of the necessary boxes for you. Can I ask—do you know of any outstanding issues with the property, like liens or code violations, that I should know about?

Brian: No liens or violations that I know of. Just the typical wear and tear, really. The roof might need some attention soon, though.

Neil: That’s not a problem at all. A roof replacement is something I’d factor into my offer, and it’s something my team can handle after closing. Like I said, you don’t have to worry about repairs or upgrades.

Brian: I have to admit, this all sounds pretty tempting. But I want to make sure I’m not missing something. Are there any downsides to selling this way?

Neil: That’s a fair question. The main trade-off is that you might not get as high a price as you would in a traditional sale if the market conditions are perfect. But considering the time, effort, and costs you’d save, many homeowners find the benefits outweigh the downsides. It really depends on your priorities.

Brian: That’s true. And here’s a little problem that’s been setting me back. I’m falling behind on the mortgage and my ex-wife is the one whose living here. I’m planning to leave Davenport as fast as possible and I guess I don’t have the luxury of waiting around for the “perfect” buyer right now.

Neil: I’m beginning to see the whole picture now. Davenport’s becoming a nice little city pretty quickly but certainty of a quick sale is key — especially in a situation like yours.

Brian: Okay. Let’s say I decide to move forward. How soon could you make an offer?

Neil: If you let me do an inspection now I can crunch the numbers and get you an offer within 24 to 48 hours, assuming there are no liens or code violations. Once you accept, we can close on a timeline that’s most convenient for you. The speed of the close can depend on you, I’ll work with you on this.

Brian: That’s impressive. There aren’t any liens on the house thank God. I’m glad I wouldn’t need to clean up or stage the house for showings. Scheduling with my ex would be too complicated and painful.

Neil: Like I said, I buy as-is. No showings, open houses, or even cleaning up before you leave. It’s common to buy homes where the owners leave furniture that’s so dated it’s actually junk. I handle even the junk problems too.

Brian: That’s a weight off my shoulders. I still have to try to act civilly with my ex for the sorting and packing. It’s a relief that we won’t have the pressure of cleaning on schedule for showings.

Neil: The overall goal here is to make things easier for you so you can move on to your next chapter of life, either here in Davenport or elsewhere. And remember, there’s no obligation. Even if you decide not to sell to me, I want you to feel confident in whatever choice you make.

Brian: I really appreciate that, Neil. There are a lot of wrinkles that need to be smoothed so I can get this over with. This might actually be the simplest part of this whole divorce process.

Neil: That’s what I’m here for, Brian. If you want, I can do an inspection now and then I can run the numbers so I can get back to you with an offer. In the meantime, if you think of any more questions, don’t hesitate to reach out.

Brian: Yeah, I think that’s what we’ll do from here. I guess your inspection can start here in the kitchen. I can walk around with you to answer any questions about what you find. I have a friend near the corner of Mountain Flower Lane and Fleur Drive whose house looks similar to mine. A couple years ago it was appraised at $360,000. Davenport’s economy has gone up since then but my house obviously needs work. Can you give me a ball park figure of what you can offer now?

Neil: I’ll do some online comps of the area but judging from the roof, the inside paint and carpet wear and tear my offer will probably be lower. Let’s do this walk through first and work on the numbers once I have more information.

Things to keep in mind

One of the reasons why a couple that’s divorced or divorcing would sell a house to a real estate investor is their inability to synchronize and work out solutions together. This plays out in the form of not being able to schedule and clean for showings. It also draws the selling process out which contributes to prolonged mortgage payments.

Another advantage of working with a real estate investor during a divorce is the fact that homeowners sometimes are not privy to the liens and code violations that accumulate through the years. It’s rarely part of anyone’s routine to make periodic trips to the Davenport city hall to check up on this. If there are encumbrances that need to be dealt with, a seasoned investor will find out about them and be ready to pay off the debts at the closing.

Lastly, the price differential between using an agent versus an investor should be understood. When selling to an investor during a divorce, he covers the repairs and renovation costs in order to make the house marketable. Often the hidden costs of Florida real estate agents aren’t addressed, especially regarding the practice of “double-dipping”. This encourages a lower sale price for the emotionally detached divorced couple in order to get a sale done with one of the agent’s clients. The agent then walks away with a second commission from the buyer above the standard 5% to 6% from the seller.