Successfully Selling a Property During a Divorce Mediation Phase

We were referred to a married couple who had decided to separate and were in the mediation phase. They wanted to organise the sale of their family home located in Bundoora, Melbourne, without going to court. However, as the couple was not on speaking terms, they appointed a third party to assist in the sale of their property.

The challenge was to provide a swift anad favourable outcome for both clients while keeping them informed of the sale process, despite their lack of communication. The sale of the property was crucial to their divorce proceeding, and neither party had much time to attend meetings revolving around the sale campaign.

Managing All the Details

To prepare the property for sale, we arranged access to the house and discovered it was in a distressed state. We hired furniture and put back some male clothing into the wardrobe to ensure that prospective purchasers would not know it was a divorce sale. We researched and selected two local agents with a strong history of selling similar properties to inspect and provide appraisals for the sale. We then benchmarked the values against our own assessment, removed all unnecessary data, and provided a report outlining all costs, marketing methods, and processes associated with the sale. The report was provided to both parties at the same time via email, and we discussed it over the phone with the husband and met the wife in person to discuss. Both clients accepted our recommendations, and we proceeded to auction.

Maximising Auction Results

We discussed a reserve price with both parties, which was organised through each client's solicitor and kept confidential from the agent. We made sure that each party was relayed the same information throughout the marketing campaign, and all pre-auction meetings were conducted by us. Prior to the auction, we met individually with both clients to ensure they had a thorough understanding of the auction process and were aware of the different outcomes that could occur. On the day of the auction, both clients were present and were each allocated a separate room in the property to sit and listen to the auction. We ensured the agent did not meet the clients until after the auction to prevent any unnecessary stress. Also, we did not inform the agent of the reserve price before the auction to force the agent to deal with bidders independently and gain the best price possible for the clients.

Peace of Mind When the Divorced Couple Needed it Most

Our approach enabled both clients to avoid dealing separately with the selling agent and ensured they were well-represented. It alleviated tension between the parties and allowed for a smooth selling process. The agent and purchaser were unaware that the sale was a result of a separation, preventing any unwarranted pressure on the vendor to sell.

To help ease the financial pressure on the clients, we had organised for the marketing funds from the agent to come out at settlement instead of being paid upfront.

Exceptional Financial Outcomes While Saving Time and Avoiding Stress

The property sold at auction for $45,000 above reserve within just six weeks of engaging our services, so both parties were happy. The successful styling of the property achieved a better sale price, and the marketing fees were negotiated to be paid with the settlement, reducing upfront costs. The clients benefited from independent advice, which prevented a court hearing for the sale of the property. The whole process saved them time and money while avoiding additional stress during a difficult period in their lives.

If you need support to analyse your options and make a confident decision, our Vendor Advocate team is here to help.