Avoid Surprises When Selling Your Home

"3 Essential Steps to Avoid Surprises When Selling Your Home: Deeds, Taxes, and Special Transactions Explained." Three Things an Average Agent Fails to Advise You to Do Before Selling a Home.

1.    Research Your Property’s Deed - Many home sellers overlook the importance of reviewing their property’s deed before putting it on the market. Start by visiting your county recorder’s website (for example, Boulder County: Boulder Clerk & Recorder; Broomfield: Broomfield Property Search). Order and review your deed to check for potential issues.

Why is this critical? Imagine a roofer who worked on your home a decade ago filed a mechanic’s lien and never removed it after you paid them. Or perhaps your property is still listed under an outdated trust, even though you created a new one last year. These situations can delay or derail a sale, especially since title companies typically don’t dig into these details until escrow is opened—often after your home is already under contract.

Proactively address these potential roadblocks by opening escrow with a title company early. Request a preliminary title report as soon as you list your home to identify and resolve any issues. If you find something unexpected—like a deceased family member still listed on the deed—consult a qualified real estate attorney to get everything in order.

Bonus Tip: For added peace of mind, visit the county websites for all properties you own in any state. Some counties even allow you to sign up for fraud alerts to protect your property records.

2.    Consult Your Tax Advisor Selling a home can come with significant tax implications, and a good tax advisor can help you navigate them. They’ll guide you on the best strategies to minimize capital gains. Investment property? Discuss how a 1031 exchange might fit into your plans and even provide advice if you’re navigating major life changes like marriage or divorce. Don’t skip this step—smart tax planning can save you money and stress down the line.

3.    Probate, Trust, and Divorce Sales: Did you have a challenging transaction involving a probate sale, divorce, or an estate trust sale that fell apart? You need an agent who understands how to collaborate with attorneys, work with personal representatives, and pull it together. 

Disclaimer: The content of this blog is provided for general informational purposes only and is not intended as legal or tax advice. Laws and regulations vary by jurisdiction. You should consult a licensed real estate attorney and a certified tax preparer regarding your specific situation.