CHAPTER 7
Renovate or Sell “As Is” This is a difficult decision even when not divorcing. The issue is trying to determine what work (if any) will have the greatest return. (I go into more detail on this in Chapter 10). Not doing the work can result in selling the house at a large discount. Many buyers, when looking at a house, may over-estimate what the cost of renovations may be to them so this can lead them to feel there is an added ‘hassle’ factor when looking at a home that needs work. In non-divorce situations there are concerns around budget. How long will the work take? How will it affect our living in the house? How do we pay for it? In a divorce situation these decisions may be further magnified. Who will pay for the work being done? If we move out, do we need two separate residences? With the added stress of the divorce, can we even handle it? What happens if the parties do not agree? Here is how I have handled a situation like this in the past: CASE STUDY Steve and Sue purchased a fixer-upper home with the intention of making it their forever home. Part way through the demolition phase of the renovation, Steve and Sue decided to divorce. They made it through most of the separation agreement amicably. They hit a stumbling block at the sale of the house. The bank would not give them more of a line of credit or mortgage to complete the renovation. Sue was unable to borrow her half. Steve could get the whole amount but said he wanted all the profit since he was taking all the risk. They decided to list it as is. After four months
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