open houses that only neighbors attend, and placing ads online that don’t reach your target audience.
4. UNDERESTIMATING THE PAPERWORK
A ton of paperwork accompanies a property sale, and not knowing what paper you need to sell your home can cost you dearly. You’ll need to obtain, file, or fill out:
• Contract of sale • Deed • Title report • Tax statements • Insurance information • Appraisal and inspection reports • Disclosure forms • Lien affidavits • Mortgage documents • HUD statements at closing
Mishandling paperwork can wreck a sale and even put you in legal jeopardy, especially if you fail to disclose hazards, like lead paint or radon, within the home. Also, all official documents and agreements involved in the sales contract must be executed within a set, legally binding time frame.
5. IGNORANCE OF REAL ESTATE BASICS
You may think attracting your own buyer and skirting all real estate agent commissions is a godsend. But if you avoid all agents, then understanding all the details of the sale falls to you. That means you must become an instant expert on escrow, water rights, mortgage rates, mortgage types, property taxes, property assessments, disclosure obligations, lender requirements, and on and on. 9
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