Divorce Listings and Investors-Beware!

By
Real Estate Agent with Samson Properties 0225 093857

Divorce Listings And Investors - Beware!

By Laurel Stark, CEO & Founder, The Ilumni Institute

Divorcing spouses with a house to sell need to ensure they do not fall prey to unscrupulous activities that could cost them tens of thousands of dollars- sometimes more. There is a lot that goes on behind the real estate scenes with investors (especially in this hot market). 

We all know that the goal of the investor is to profit, and in real estate that means "buying low and selling high." In the current market where we are seeing many offer for just one property, it is hard for investors to accomplish their goal of making an acquisition at a low enough price to turn a profit.

That means getting creative at the divorcing couples expense!

Most investors know that most Realtors can be their ticket into acquiring property if they can "grease" the agent (kind of like greasing a host at a busy restaurant for a prime window table).

Let me show you an example and explain how it works.

I often receive emails or text messages from investors to allow me to represent them as their buyers agent (so not only am I getting a listing commission, but I would also be getting a buyer's agent commission). We call this "dual agency" or "double ending." (slang for ) that's my reward if I can somehow coerce the seller into accepting the investors offer - not necessarily in the sellers best interest.

Here is an example of one I recently got. The investor is not only offering to allow me to double end it, but they're offering me a $2,000 bonus. Most Realtors are motivated by this all day long. Worst yet the investor might contact the sellers directly because they see the public record filing of the divorcing couple and lure them into selling off market for cash, as-is.

The agents make more money and the investor make off like bandits- all at the expense of the divorcing couple. 

MY ADVICE: With very few exceptions, placing the house on the open market- making it available to ALL ready, willing and able buyers is the way to procure the highest possible sales price. In this market, homes are selling well above list and appraiser value. There is absolutely no reason a house should be sold off-market right now. Fast closing and bidding wars are the norm right now. 

Yes, it can be a headache to deal with showings and possible repairs, but the cost of convenience for a divorcing couple will surely set them farther back financially. The equity in their real property is often the source of funds they use in order to pay off debt (including attorney fees) and rebuild their lives.

These emails and text messages are ignored in my office. As a CDRE (Certified Divorce Real Estate Specialist) I am held to a higher standard. I do not represent buyers on my listings, so I am never in that conflict of interest.

Divorcing couples are in the fight of their lives and deserve to have advocates working for them, not against them.

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Susan Jacobs is a CDRE- Certified Divorce Real Estate Expert. She works as a neutral third party in Family Law cases regarding real property and secured debt. She can be reached at 703-347-4418 Susan@SusanOJacobs.com or visit www.DivorceThatSpouse.com

or www.NOVACDRE.com

 

 

Comments (1)

Fred Sweezer Sr. CMI, LLC.
Hud Certified 203K Consultant - Long Beach, CA
Certified Home Inspector

Thanks for post and explaing the process, there is a lot of options to point the buyng market  to have the buyers look into the 203k loan renovation program. 

Sep 12, 2021 08:45 PM