07.17.2024 PropStream
Important: PropStream doesn't offer legal advice. When pursuing divorce leads, it's important to do your due diligence, approach prospects with empathy, and understand the legalities of contacting these homeowners.
Divorce can be a painful and complex process, but for real estate agents, it presents a unique opportunity to help couples during a sensitive time.
In many divorces, the couple is forced to sell their home to split the equity evenly. This can be emotionally and logistically challenging—when the couple may already have other concerns, such as legal expenses, child custody, work changes, etc.
By offering your listing agent services to divorcing couples, you can take a significant weight off their shoulders while potentially making a lucrative commission.
Table of Contents
- Divorce Real Estate Leads Defined
- Benefits of Working With Divorce Leads
- Challenges of Working With Divorce Leads
- 5 Tips for Reaching Out to Divorce Leads
- Using PropStream to Find Divorce Leads
What Is a Divorce Real Estate Lead?
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A divorce real estate lead is a potential client in the process of divorce who may need to sell, buy, or otherwise manage real estate as part of their separation.
They are often motivated sellers because they want to quickly divide assets and move on with their lives. However, the sale of property during a divorce can involve financial and legal complexities, requiring specialized knowledge and negotiation skills on your part. Furthermore, it’s often a stressful and emotional experience for the client, requiring an empathetic and patient approach.
What Are the Benefits of Working With Divorce Leads?
Now that you know what divorce leads are, here are some reasons to try to work with them:
The Ability to Help a Homeowner in Need
Aside from the professional benefits, working with divorcees allows you to help ease some of the stress of a challenging life change.
Divorcees have a lot on their plates between meeting with lawyers, packing, looking for new places to live, etc. Plus, they must juggle all these tasks with heavy hearts. If you can help navigate the property sale (and potentially the purchase of new property), there is less for them to worry about overseeing.
Steady Lead Source
Divorce is a common occurrence. According to Forbes, 43% of first marriages end in divorce, while 60% of second marriages and 73% of third marriages also dissolve. Furthermore, the majority of divorcees (53.4%) own their homes.
When you consider that over 2 million American women get married yearly, that’s a steady flow of potential divorce leads who may need the help of a trustworthy agent.
Motivated Sellers
Divorcing clients often want to resolve their changing housing situations quickly. Consequently, they may be more motivated to sell, leading to a faster transactions with fewer hiccups.
Specialized Niche
Specializing in divorce leads can help you stand out in a crowded market. After all, the U.S. has over 3 million active real estate licensees against whom you must compete.
Furthermore, becoming an expert at navigating complex divorce transactions can build your reputation as a compassionate and skilled agent, potentially helping you attract more customers and improve credibility.
Higher Transaction Volume
On top of needing to sell their home, divorcees often need help buying new ones as they start a new life elsewhere. This can lead to two more commission opportunities, one from each former spouse.
Referral opportunities
Satisfied clients are more likely to refer friends and family members going through similar situations, leading to a growing pool of potential clients.
What Are the Challenges of Working With Divorce Leads?
Of course, working with divorce leads isn’t without challenges. Here are some to consider:
Sensitive Clients
Divorcing clients are often stressed, sad, and angry, making communication and decision-making more challenging—especially if the two spouses aren’t on speaking terms and you’re left to balance and facilitate both parties’ opposing wishes.
Complex Transactions
The sale of property during a divorce can involve legal intricacies, such as court orders regarding the division of assets. Furthermore, divorcing clients may disagree on the value of their property and how it should be divided, complicating the sale.
Time Pressure
Divorcing couples are often under a tight schedule to resolve their real estate issues. This can put extra pressure on you, as the agent, to expedite the home sale without compromising service quality.
Emotional Toll
Working with divorce leads isn’t for the faint of heart. It takes a lot of empathy while not crossing professional boundaries. If you’re not careful, it can emotionally drain you and ultimately lead to burnout.
4 Tips to Consider When Reaching Out to Divorce Leads
When reaching out to divorcees, it’s essential to take a delicate approach as this is a sensitive time in their lives. Here are some tips for success:
1. Understand the Divorce Process
Divorces are complex legal proceedings that can take anywhere from six weeks to six months or longer. As a real estate agent, you should know how it works in your state, especially regarding property division.
For example, some states follow a community property system where property must be split equally. In contrast, most states follow the common law system, in which property acquired by one spouse is generally considered their sole property, while property purchased jointly is usually divided.
2. Show Empathy and Patience
When approaching divorce leads, be sensitive.
First, show empathy by actively listening to their needs and concerns. Then, show how your services can alleviate them. Avoid leading with a hard sell, as this can come off as insensitive or even predatory.
3. Remember Your Fiduciary Duty
As a real estate agent, you have a fiduciary duty to your clients, which means you are legally obligated to act in their best interest.
However, this can be challenging when representing two divorcing individuals with differing opinions and priorities. Still, it’s your job to avoid taking sides and focus on providing the best possible solution for both parties.
4. Respect Privacy
Client privacy is always important, especially when they are going through a divorce. Ensure that all communication and transactions are handled with discretion and be mindful of their wishes.
For example, a couple may not be ready to make their divorce public and request that you not list their property for sale but sell it privately as a pocket listing.
Need Help Finding Divorce Leads? PropStream It!
Did you know that you can find divorce leads with PropStream?
Our database of over 155 million properties nationwide includes information on homeowners’ marital status. We even have a dedicated “Divorce” Lead List to help you quickly identify divorce leads in your area.
