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This article is about how a revolutionary home-selling alternative can aid the perils of divorce and the costs of moving out.
Getting a divorce is no simple thing. There are a lot of components to consider, from emotions to legal fees, children, and real estate.
We will explore how Sell2Rent, a company focused on residential leasebacks (I will explain what those are in a second), helps divorcing couples cash out their equity while staying home.
What are Residential Leasebacks?
I told you I would explain in a second. A Residential Leaseback is a new alternative that allows homeowners to sell their homes and stay as renters. A tool that helps divorcing couples cash out their equity while one spouse gets to stay home as a renter.
First, homeowners list their homes on a digital platform like Sell2Rent. Usually, the platform will ask them to supply general information about themselves and their property and a video tour showcasing their house.
When the form is complete, a Sell2Rent leaseback specialist will share the new property with a pool of investors interested in purchasing the house as a rental property.
Some customers have referred to leasebacks as a way to press reset without starting over. In the next couple of pages, we will cover everything you need to know about this family-friendly alternative to home-selling.
What are the Benefits for Divorcing Couples?
This method of selling helps spouses save valuable time and money while lowering their stress and fatigue. Through a leaseback, couples avoid the hassles of scheduling an open house, spending money on repairs, and moving out.
Additionally, using a leaseback to sell your home is one of the most private ways to sell a home. Everything from the initial form, expert meetings, and the final offer is presented to the homeowner digitally. This online orientation means there is no need to plant a “for sale” sign on your lawn.
In summary, the three main benefits are:
- Cost-effective alternative: No moving out costs, repair and renovation expenses, no (or less) moving costs, and no marketing costs.
- Privacy: Homeowners complete the process online. There is no need for open houses, “for sale” signs, or real estate agents visiting the property.
- Family-friendly: One (or both) spouses get to stay home as renters. The sell-and-rent-back formula is especially beneficial if kids are involved. Children can stay in school while parents stick in the same neighborhood.
On the Sell2Rent website, homeowners can explore extra benefits and information before engaging in the leaseback process. Although there is no commitment after you click that “request offers” button.
How Does Sell2Rent Work?
Now that you know how a leaseback agreement works, here is where to request one.
Pioneers like Sell2Rent empower homeowners to sell and leaseback their homes by requesting a commitment-free offer through their user-friendly platform. To keep the process transparent and ensure homeowners get a deal near market price, they connect homeowners with investors around the country. When homeowners begin the process, Sell2Rent will assign an expert to guide them.
It is important to note that Sell2Rent does not purchase homes. Instead, they find investors willing to buy the house as a rental property and act as the middleman throughout the sale process. Like a digital real estate agent, kind of.
How Are Assets Divided During A Divorce?
Divorces are expensive. In fact, according to a recent article by Forbes, “The median cost of a divorce in the U.S. is $7,000, while the average is between $15,000 and $20,000.” While more contested divorces can be even more expensive.
There are three common ways to split assets and sell a home during a divorce.
The first option if you wish to stay at home is to buy out your spouse. A buyout is the most common alternative between couples since it allows one spouse and the kids to stay home. The main con of this option is that when refinancing the mortgage, the partner who chooses to stay will require proof that they can afford monthly payments. If the refinanced mortgage is approved, it will remove the bought-out spouse.
The second option is to co-own the property. Co-ownership allows the exes to keep the current mortgage rate until they decide what to do with the property. Co-owning is an intelligent choice if the property market value has decreased. This option allows them to keep the mortgage until the market bounces back.
The third option, and the most simple, is to sell the property outright. Selling might be the best alternative if moving out is not an issue for the family. In this scenario, both spouses agree on a sale price, sell the property, and move on. The obvious negative is that both will have to relocate, which becomes even more difficult if kids are involved.
All of these are solid options for selling a home during a divorce. However, they all include searching for possible buyers, paying for repairs, and risking their privacy.
What is the Best Option?
It all depends on what the homeowner is looking for. With a leaseback agreement, they cash out their equity and stay home as renters. Selling to rent is the cheapest, most private, and most flexible option.
However, if none of the spouses wishes to stay home, they could consider selling the property outright. The value they will receive for their home has market implications, but it could be the easiest option to move on.
If you wish to learn more about splitting your assets during a divorce, head to the Sell2Rent website to find valuable information and if a leaseback is the best choice.
