Q: I need to know the pros and cons of using a trustee vs. real estate agent to sell my property, which is jointly owned with my spouse. My spouse has not lived in the United States for the past 4 years, while I am living in the state of Maryland.

My divorce lawyer told me the property can sell through a trustee. I need information on advantages, disadvantages, the process, and cost of using a trustee instead of a real estate agent.

All I know is that a power of attorney document can used in place of an absentee seller with a real estate agent.

A: First of all, I am not an attorney. My expertise lies mainly in the purchase and sale of property through various means – and I ALWAYS use an attorney in the transaction. Therefore, you want a good attorney’s advice in the transference of property when the transaction is not a clean one. Divorce sales are usually not real clean.

That said, I am baffled why your divorce attorney would suggest you use a trustee to sell your house in Maryland. You have not mentioned that the house is a distressed property or that your mortgage is in arrears – two of the reasons you would go a non-traditional route.

Buyers who come around trustees sales are like me. I’m not looking to move into the property, I’m looking to get it for as little as possible. I have a margin of profit I’m looking for – at LEAST 25 percent below market price.

Most of your market place (the state of Maryland) is in a sellers market today. Why would you use the alternative method of sale that primarily draws tire kickers and bargain hunters? People looking for a bargain on a car, go to the car auction, not the dealership.

You want as much money for your house as possible, thus you and your estranged spouse need to get over any differences about the property. At this point, you’re trying to liquidate and disperse the proceeds of the sale. What you want are multiple “market rate” contracts from buyers who want your house because it’s immaculate and would serve their personal housing needs – not multiple contracts from buyers who see it as a home on the auction block.

Begin with the end in mind. What is your primary goal? Is it to get rid of the house quickly and disperse whatever you get from it? Or do you want to get as much as possible from the sale so both of you have enough cash to start a new life?

I’m amazed at the commission-aphobia that people have out there with Realtors. They think they can “save” thousands of dollars through bypassing these professionals and then cut their own throats through costly mistakes.

About a year ago, I talked with a person that sold her house herself. She was very excited about not having had to sell the property using a Realtor. She was so excited about having not paid a commission that she lost the overall goal – sell the house for as much as you can.

She used an online FSBO service, read their manual, placed it on the market and was surprised to see it sell in a matter of days. She was truly happy. Then she said this, and I’ll never forget it: “I do wonder if I priced it right. I sold it for $1,000 more than the last sale.”

My mouth dropped open in disbelief. She was selling her house in a marketplace where homes were regularly selling for tens of thousands of dollars above the last sale and she didn’t even know it.

Hopefully, your attorney is looking out after your interests and trying to help you save money where you can (but I usually think the best of most people, so I really don’t know). However, instead of putting your house on the “auction block,” get it ready for the show – clean it, paint it, repair it and get it on the market. Across the country – but especially in your market – real estate is the “stock of choice.” Step forward with your best foot and go for the gold ring.

Published: March 28, 2003

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