I’ve been involved in more than a few divorce sales in my 21 years of real estate experiences. In the first one that I was aware of, the seller’s agent let me know that a divorce was taking place. The first rule in real estate sales is never let buyers know your sellers are in any type of distress, unless it’s part of an official record against the house such as a notice of default or trustee sale. Then you are obligated. Letting a buyer know that the sellers are getting a divorce is just asking for a low ball offer, which is what my buyers did. The year was 2009 and my buyers were able to purchase the property nearly $60,000 under the current asking price. Because the market had crashed, the sellers had already come down $200,000 which made a great deal even better! 2009 was a terrible year to sell, but a great year for buyers.
It still amazes me when people ask why homeowners are selling, and agents respond that a divorce is in the works. At that point buyers know a sale has to happen, and in the absence of competing offers it’s an invitation to come in low. The correct response is that the sellers are looking to relocate, or something to that effect.
Another sale I was involved in, this time representing the sellers, happened a few years before Covid. The ex-wife had been squatting in the house for several years while the husband tried to get her out. It was an ugly situation, and despite the animosity she finally did get out and I got the property onto the MLS during a particularly ‘hot’ period. We attracted 5 offers and sold $100,000 over the asking price: all cash, no loan. It’s hard to say for sure what would have happened if I had been telling people it was a divorce sale. I don’t think we would have done as well. We certainly would not have done better.
I’ve been involved in divorce sales that have been very smooth, where the husband and wife get along. Selling a home can be challenging, and 2025 has been a more difficult market for sellers in general. Adding acrimony between sellers into the mix does not help. The best thing sellers can do is trust their agent who will always have their best interests in mind. It’s our fiduciary duty. Inexperienced agents can make the mistake of revealing divorce circumstances, which is the last thing sellers need in the 2025 market. Sadly, I’ve heard even experienced agents tell other agents their clients are going through a divorce.
Divorce sales happen. They don’t need to be fire sales, and agents representing sellers don’t need to be the ones who light the match. But sometimes they do.