As you know, we’re operating in a drastically different real estate market than we were even a year ago — and it’s impacting divorcing homeowners in unique and challenging ways. One of the most critical conversations we need to be having with clients right now is about property condition.
Our clients are no longer in a market where they can afford to list homes that aren’t truly ready to compete. Inventory has risen over 15% year-over-year in many markets, while demand has cooled significantly due to affordability constraints. Buyers today are paying triple the interest rate compared to 2021, and they’re making large down payments, and in return, they expect turnkey, HGTV-ready homes.
If a property isn’t move-in ready, the Sellers will pay for it — one way or another. A house that simply needs fresh paint may cost $10,000 to update, but in a Buyer’s mind, it becomes a “fixer” and justifies a $25,000–$30,000 price cut due to the inconvenience and perceived effort.
One thing I want to mention regarding sight-unseen property values, especially in the current market, is the growing disconnect between perceived and actual property conditions. With home prices and interest rates still high, today’s Buyers expect significantly more in terms of presentation and condition. Unfortunately, many Sellers aren’t aligned with those expectations, which is creating increasing tension and conflict in these cases.
Appraisals are not immune. We’re seeing situations where parties obtain an appraisal and anchor their expectations to that number. But when it comes time to sell, the market often doesn’t support those values because Buyers weigh cosmetic condition and maintenance issues more heavily than the appraiser did.
In divorce listings, this is compounded by three common factors:
- Home maintenance has often taken a back seat in the last few years.
- Our clients typically don’t have the funds to renovate due to divorce-related expenses.
- There are frequent disagreements about what to fix, who to hire, and who will pay.
To complicate things further, we’re seeing Buyers who go under contract and come back post-inspection with major repair requests or demands for credits. These are not uncommon and can be minimized — if not avoided — by addressing property condition and setting proper expectations before hitting the market.
As a Certified Divorce Real Estate Expert (CDRE), I see these issues every day and can navigate these dynamics strategically, thus protecting your client’s equity and minimizing disputes before they escalate.
Joe Gordon
Certified Divorce Real Estate Expert
801-577-6304
JosephGordonHomes@gmail.com
www.UtahDivorceRealEstate.com
