P h i l l i p H . L a nd e
A B R , A S P , C D PE , C R S
4 S A L E B Y D IVO RC E Divorce & Real Estate July 2016
The Value of the Marital Home
DID YOU KNOW A little history for the day… July 4, 1776
July 2, 1776, marks the day the Declaration of Independence was voted in secretly by Congress for independence from Great Britain. The first sign of how this day would be celebrated was on July 3, 1776 from John Adams to his wife, Abigail, stating “pomp and parade, with shows, games, sports, guns, bells, bonfires and illuminations.” In 1826, John Adams and Thomas Jefferson, both signers of the Declaration of Independence, died on July 4—50 years after the adoption. However, July 4th was not the actual day the Declaration of Independence was voted on and signed—It was July 2nd. A copy of the Declaration was provided to the Colony Press on July 4th and it was made public on July 6th.
Phillip H. Lande RE/MAX Legends Group/ Atlas Group Direct: 317.863.2356 plande@atlasrealty.com www.remax-atlasgroup.com
U.S. Housing Price Appreciation Average since 1975
When the decision has been made to sell or to retain the marital home, a new set of questions is derived and the question of current value is always at the top of the list. When selling the home, working with a professional real estate agent can help determine the value or best selling price by providing a CMA (comparative market analysis.) When the decision is made to retain the marital home and refinancing the mortgage into one spouse’s name, an appraisal from the lender’s appraiser is required. What is a CMA and how is it different from an appraisal? A CMA is an estimate of the home’s value done by a real estate professional to establish a listing or offer price when the decision is made to sell the home. This service is always offered free of charge and without obligation. A CMA should be used as a reference for deciding at what price you should list or buy your home for. Continued on next page.
P P age age 22
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The Value of the Marital Home Continued As a real estate professional, I am able to create a CMA utilizing recent sales data and my knowledge of the local market. I will compare the home with homes that are most like the subject property in the same neighborhood, or similar neighborhoods nearby. A comparable home/property is one that is of the same type, is in similar condition inside and out, and has the same or close to the same number of units and land/living area size. Some factors that I consider are:
Comparable properties that have recently sold (3-6 months), Properties that are currently listed in the Multiple Listing Service (MLS) How long similar properties have been on the market, Property listings that have expired or have not sold. Location (such as corner lot, school district, street traffic, proximity to highways, etc.)
Simply put, a CMA is an attempt to establish an opinion of value in order to sell the property for the most money possible. Whereas an appraisal report is a licensed appraiser’s opinion of fair market value and whether or not the property is worth the price being paid whether buying or selling. There are many resources a real estate professional has access to that most homeowners do not. Also agents have the experience of listing, marketing, and selling many homes on their side. Working with an experienced real estate professional can find a price that brings your divorcing clients what they need and will be attractive enough to attract buyers. Please don’t hesitate to reach out to me if I can provide a CMA for you and your divorcing clients!
It takes teamwork to bring the typical divorce settlement together. There are usually quite a few people involved from the divorcing clients, attorneys, financial planners, mediators, real estate agents, appraisers and mortgage professionals. As daunting as the coordination required might seem, you can always count on me to manage the real estate piece for your divorce team and divorcing clients.
Never hesitate to reach out whenever you have questions.
www.remax-atlasgroup.com
P age 3
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www.remax-atlasgroup.com
Phillip H. Lande ABR, ASP, CDPE, CRS RE/MAX Legends Group/ Atlas Group 5645 Castle Creek Pkwy N Indianapolis, IN 46250 www.remax-atlasgroup.com plande@atlasrealty.com Direct: 317.863.2356
As professional real estate agents specializing in helping divorcing couples, we are here to help both parties involved through a smooth yet emotionally difficult process when they need to sell the marital home and purchase new homes moving forward. As a member of your professional divorce team, our goal is to: 1. Help clients understand the legal and tax aspects of divorce in regards to the sale of the marital home and other real estate. 2. Offer alternatives to the usual mistrust and the emotional responses as a result of dividing real estate assets. 3. Work with both parties together to help them save and make money now and down the road with regards to real estate. 4. Work with both parties, not just one, in selling the marital home for the best price. Please don’t hesitate to call us if we can be of service to you and your divorcing clients!
R E A L E S TAT E
S T R AT E G I E S FOR DIVORCING COUPLES
With the divorce rate stable at fifty percent and home ownership at sixty-two percent, there are a lot of families who need professional guidance as they navigate what to do with their home. For most people their home is the largest asset they own, so the decision must be carefully thought out and analyzed. Now more than ever a full time local Realtor must provide professional guidance. This is not the time to take the real estate advice of family, friends or other professionals. While your legal adviser or family member who lives in another state means well, real estate still remains local, particularly with our mercurial national market. The sale of the marital home is not an isolated decision. There are short and long term financial, emotional and tax consequences. A Realtor, preferably one who specializes in divorce, can offer the best guidance regarding the marital home. They must understand that they will work in tandem with other professionals for the best customized outcome. The goal should be a client that has their individual needs met and is making informed decisions from a knowledgeable place. This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Not a commitment to lend. Copyright 2016 All Rights Divorce Lending Association, LLC The information contained in this newsletter has been prepared by, or purchased from, an independent third party and is distributed for consumer education purposes.