Post pandemic divorces put pressure on estate agents
A post-pandemic rise in divorces is skewing the housing market and causing estate agents to increasingly find themselves pawns in bitter disputes between couples.
Andrew Simmonds director at Parker’s Estate Agents in Backwell, North Somerset, says a spike in marriage breakdowns that is set to continue into the new year, means agents are being put under pressure to provide valuations for homes, which are usually the biggest asset shared by divorcing couples.
He says the situation is getting so common that he is considering charging a fee for valuations involving divorcing couples. Agents are put under pressure by couples but often properties do not proceed on to the market.
Andrew Simmonds
“We’ve seen an increase in the number of couples contacting us for home valuations for divorce purposes,” said Andrew, an associate of the Royal Institution of Chartered Surveyors.
“As a business we are obviously delighted to meet prospective customers but divorcing couples can present a challenge that can leave us between a rock and a hard place.
“Valuing a home for a divorce is never easy and can often be a fraught process. Each party always has a different view on valuation.
“Often you get a call from one or the other before the visit to ask if you would ‘do them a favour’ and value the property ‘up’ or ‘down’. It obviously doesn’t work like that. And more times than not, you actually only meet one of the parties.
“We don't even know whether they are even going to sell or are just gathering independent valuations from local agents so they can use the information to settle their financial affairs.
“At one valuation recently I found myself in the middle of a domestic altercation between an estranged pair. Emotions were clearly running high, and I literally walked into a full-blown argument between the couples and found myself having to mediate,” added Andrew.
“I had to remind them that I had spent time researching and visiting the property and would be putting that information into a formal valuation letter to them, all without any certainty of an instruction at the end of it.
“I still provided the valuation but wondered whether it’s time to start charging for divorce valuations and to deduct from our final fee if we were successful in being appointed to market the property.”
Andrew Simmonds, who has worked in the residential property sector since 2005, said that divorcing couples should consider a more formal valuation such as a RICS Red Book valuation that requires a fee if they are looking to buy one-another out of the property. Estate agent valuations, based on the trends in the local property market, are useful though if you intend to sell the property and split the proceeds.
He said: “If a divorcing couple intend for one partner to stay in the family home and receive money from the other partner then an RICS Valuation is best. I would say only contact your local estate agent if the plan is to sell the home and split the proceeds. The price the home is marketed at can then reflect whether a quick sale is needed or whether the parties are prepared to wait a little longer to maximise the price.”
Chris Longbottom, Clarke Willmott LLP
Chris Longbottom, partner and family law specialist at Clarke Willmott LLP, said: “It is important to ensure that divorcing individuals obtain expert advice from the outset from specialist family lawyers. They will also clearly need to obtain independent and accurate advice as to the value of their assets to ensure that the right expert and report needed is obtained – and at the right time.
“Lawyers can also assist to ensure that valuations are undertaken and obtained independently and therefore reduce the chances of circumstances like those referred to above occurring.”
