Across the country, demand for real estate has been on the rise even while supply has been hard to come by for most buyers. Here in Michigan, the market remains incredibly competitive, with many buyers receiving multiple offers within hours of their home hitting the market or a call to schedule a viewing within minutes of their listing going live.
In some ways, the booming real estate market in Michigan is fortuitous for those thinking about divorce. You and your ex can likely earn a significant return on the home that you share together if you decide to sell it and split the proceeds, helping to set you each up for an independent future. Still, there are downsides to a hot real estate market that you need to consider when making decisions about your divorce and your property.
It will be difficult for you to find an affordable home
There are plenty of higher-end, turn-key properties available near Traverse City and throughout Michigan. However, anyone hoping to find a home with a price tag of under $200,000 will likely wind up disappointed unless they move quickly on new listings and make aggressive offers. Even those with two household incomes can struggle to make competitive offers in the current market.
If you both decide to move out of your marital home and sell it, it could be difficult to find new housing accommodations until the market settles or slows down a bit. Especially if you want to limit yourself to a specific school district for the stability of your children’s education, selling your existing property and buying a new one may not be a realistic goal.
You may need to accept temporary housing solutions
The goal of immediately moving onto your new life when you separate can be harder to achieve with housing so hard to secure. Many people have to compromise during their divorce, possibly moving in with parents or siblings so that they can save money immediately after they separate.
Most people in such situations try to keep this time with family or friends as short as possible. However, with few rental and purchasing opportunities available, those divorcing right now may need to be realistic about temporary solutions.
You don’t necessarily need to delay a divorce because of the real estate market, but it should influence how you act in your upcoming divorce. From negotiating terms for one of you to keep the home to creating a birdnesting contract so that your kids don’t have to switch between houses, there are many ways to respond to the competitive real estate market.
If you can agree to the best way to handle your house and other concerns before you file, you could potentially skip divorce litigation, making your divorce a bit easier and likely more affordable for you both.