Home Sales and Realtor Commissions in Colorado Dissolution
In the course of a dissolution, you may have to decide what to do with the marital home. One spouse may decide to keep the home or the parties may decide to sell it. Most people make a profit on the sale of their home given skyrocketing home values in Colorado. There are also costs of sale to consider. The costs of sale and other expenses are deducted from the home proceeds and then the remainder is distributed to the sellers. One expense of sale is the realtor commission. A realtor can assist in selling the home; bringing interested parties in to view it.
Realtors receive a percentage of the sales price through a commission. The most common real estate commission in Colorado is 6% percent of the sale price. Due to competition some agents may be willing to lower their commission fees. The commission is paid by the seller and shared between the seller’s and the buyer’s agents. Some agents will list a property for a flat fee. Also, people are increasingly searching for homes themselves using the internet.Listing Agreements
The most common type of agreement a realtor uses when listing a home is the “exclusive right to sell” agreement. The second most common type of listing involves a home for sale by the owner who allows agents to bring clients to see the home. If the buyer was brought in by the agent then the seller must pay the agent his or her fee.Steps To Prepare For Home Sale
Putting a home on the market for sale is a big project. There are several steps to take in preparation.
- Determine the mortgage loan balance
- Identify necessary repairs
- Determine if you would like to renovate for a higher sales price
- Determine who will make or pay for repairs or renovations
- Obtain a broker opinion or appraisal for value
- Select a realtor to market the property
- Determine a selling price
When the home sells, expenses are paid first and then the remaining proceeds are distributed to the sellers.
- The first mortgage will be paid first.
- Next any liens or second mortgages will be paid.
- Then the real estate commission and others sales expenses will be paid.
- Finally you will receive the remaining proceeds.
One alternative to selling the marital home is that one spouse can "buy out" the other spouse, and retain the home. This means that one spouse gives the other funds or other assets equal to that spouse’s equity interest in the property. Then the spouse who bought out the other retains the marital home. This may be the fastest resolution when sufficient funds are available and one spouse has an interest in retaining the home. It also eliminates the work involved in putting the home on the market for sale.How can an attorney help?
An attorney can guide you through Colorado Springs dissolution-related real property matters by handling pleading and motion preparation and filing, negotiation, mediation, and court proceedings from start to finish. This allows you to focus on moving forward to a better future rather than on trying to figure out how the overly complex court system works.Turning Change Into Opportunity in Colorado Springs
Colorado Springs Divorce and family law matters are difficult to navigate alone. The court system is more complex than it should be. Remember that change often creates new opportunity and a better future. JLaw LLC, DBA Janko Law can help ensure that your best interests are protected. Contact us at 855-429-1281 or complete our online form to set up a free thirty-minute informational consultation. We also have an office in Denver and serve Denver and Aurora and surrounding areas.