Selling Your Crested Butte Home Because of Divorce
Selling your Crested Butte home can be a very difficult decision. But this can be even more complicated if you are selling your Crested Butte home because of divorce. Divorce is rarely easy, and if the divorce is difficult, then dividing up assets can get nasty. There are usually two choices in a divorce: either one spouse gets the Crested Butte home, or the home gets sold and then the proceeds get divided up. When one spouse retains the home there are aspects similar to a sale involved for the other spouse. You will need a selling strategy if the house is to be sold. Here is everything you need to know about Selling your Crested Butte home because of divorce. I hope it makes a difficult time in your life just a little bit easier.
Calculating Value of Your Crested Butte Home
If one spouse is going to get the Crested Butte home, then there needs to be an accurate fair market valuation of the home prepared. An appraiser is certified to do this job, but it may be best to agree up front to hire two appraisers. You can use the average of both appraisals as the number for the value of the home. The reason for two appraisals is that there will be no argument about who selects the appraisers. You may also decide whether you want to then reduce the value by 7% to cover the normal transaction fees that would normally have been paid to sell the property.
If one spouse is getting the home and plans to immediately to sell it, then there are additional considerations. For example, is there equity in the home, what are the capital gains taxes on the sale of the property? Are there transfer taxes, out of state withholding taxes on the proceeds (2% in Colorado), or upcoming HOA assessments? Of course, you should take any debt on the property into account as well when splitting up everything on both sides of the balance sheet. These things should all be kept under consideration when selling your Crested Butte home because of divorce.
Transferring the Home
Transferring the home doesn’t really feel like selling your Crested Butte home, but it involves a lot of the same steps. This may seem like the easiest way for one spouse to not have to worry about the home. But it can often be far more complicated than expected.
It is easy to transfer the title of the property via a quitclaim deed prepared by an attorney and recorded in the county records. Or if the property is set up in an entity, then you can transfer it from one party to another. What is not so easy is if the second home has a mortgage, second mortgage, home equity loan or secured line of credit. The spouse that does not get the home will want their name as a borrower off any and all loan documents. Refinancing the property, and, if possible, paying off all subordinate debt, can take care of this. However, this assumes that the spouse getting the home can qualify for the new loan and afford to maintain it.
Strategy for Selling Your Crested Butte Home
Selling your Crested Butte home can already be very emotional. Let alone then selling your Crested Butte home because of divorce. This can be a very tough situation to go through, and divorcing couples may not be able to have open and honest discussions. But in the end, selling your Crested Butte home may be the best decision for you.
Remember, second homes are not liquid assets. Depending on the location, the property, and the asking price, it could take a year or more to sell. An agreed upon strategy to sell should also be put in place up front. Such a strategy may be to set an initial asking price based on an appraisal, and then every sixty days the home has not sold to reduce the asking price by 5%. It is wise to move this discussion to the top of the list early on. If the mountain home is to be sold, then hopefully the transaction is complete prior to the divorce being finalized. This way you can split up the proceeds beforehand.
Selling Your Crested Butte Home Because of Divorce Final Thoughts
I hope you see the level of detail and time and effort I put into this candid article Selling Your Crested Butte Home Because of Divorce. I have become a Top Real Estate Agent in Crested Butte by providing my clients with information and insight. This helps my clients to make informed decisions. Some decisions are not always easy.
This article is an example of what you can expect from me as your agent.
How can I help you?
I have over 30 years of sales and marketing experience and am a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their homes and properties. To see featured properties or search the MLS – visit chriskopf.com.
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Coldwell Banker Bighorn Realty
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