Chip Gillespie | Listing Presentation 2024

We have a remarkable history, one with deep roots dating back to 1963, with the formation of Gary Greene. From our earliest days in Houston, we have remained a brokerage leader in the real estate industry by developing relationships with our clients and our communities.

LOCAL ROOTS SINCE 1963

Our affiliation with the Better Homes and Gardens Real Estate network gives us unmatched international alliances with brokerages as well as the value of a trusted and recognizable brand around the world.

Thank you for inviting me to interview with you today and for considering me as the agent to represent you and your property. I truly appreciate the opportunity.

I understand you have many choices in deciding who will best serve your needs during the process. The decision you make will impact the success of your sale. It is BHGRE Gary Greene’s and my sincere objective to market and sell your home while maximizing return in the shortest amount of time. We will use our expertise and extensive marketing tools to promote your property to qualified buyers until it is sold.

I promise to communicate with you on a consistent, preplanned basis. I will work diligently throughout the entire process with the principal goal of obtaining for you the highest possible price, as well as a smooth process.

I am your advocate who will guide you through the entire home sale process, always keeping your best interest at heart.

THANK YOU SINCERELY,

COLLINS REALTY TEAM

A dynamic partnership with a reputation for integrity, marketknowledge, and client satisfaction, the Collins Realty Team consistently exceeds the expectations of a broad range of clients, including first-time homebuyers, investors, seniors, and energy relocations. Based in The Woodlands but serving all parts of the great city they choose to call home, the Collins Realty Team is proven to lead the industry in successfully navigating the transaction process.

Broker Glenda Collins pairs her extensive experience and commitment to excellence with her son Kevin’s keen attention to detail and professionalism. Glenda’s key to success is her knowledge and expertise. In addition to earning her broker’s license early in her career, Glenda continues to study her industry to stay on top of her business and surrounding markets.

Kevin brings sharp insight and market expertise to every transaction. He consistently monitors his market to give sellers any advantage he can and conducts extensive home pricing and analysis for his buyers. A well-known force in the industry, Kevin maintains positive relationships with inspectors, lenders, and title companies to help keep his clients informed and the process on schedule.

Chip Gillespie is another proud member of the award-winning Collins Realty Team. For more than a decade, Chip has walked with his clients through the most important seasons of their life, advising and helping to ensure they are prepared for the major steps they are about to take. His calm demeanor in the face of adversity and his timely interjections of humor give his clients peace of mind and the assurance that Chip will help them achieve their goals.

Clients can rest assured that the Collins Realty Team will stop at nothing to secure the maximum value and ideal outcome for buyers, sellers, and investors from all walks of life.

GLENDA COLLINS

glenda@collinsrealtyteam.com

832.326.3270

KEVIN COLLINS

kevin@collinsrealtyteam.com

713.992.4501

CHIP GILLESPIE

chip@collinsrealtyteam.com

713.254.9651

collinsrealtyteam.com

8665 New Trails Drive, Suite 190

The Woodlands,Texas 77381

CHIP GILLESPIE

Chip Gillespie is a proud member of the award-winning Collins Realty Team: a dynamic partnership with over 60 years combined real estate experience and a reputation for integrity, market-knowledge and client satisfaction. Chip adds his extensive market experience and commitment to service with the hallmarks of the Collins Realty Team – deep and broad industry experience, keen attention to detail, and consummate professionalism. Together, they successfully meet the needs of a wide range of clients, including first-time buyers, investors, seniors, and energy-industry relocations.

For nearly two decades, Chip has walked with his clients through the most important seasons of their lives, advising and helping to ensure they are prepared for the major steps they are about to take. His calm demeanor in the face of adversity and his timely injections of humor give his clients peace of mind and the assurance that Chip will help them achieve their goals.

A native of The Woodlands, Chip “first moved” to the area in 1981, when the fledgling community had fewer than 9,000 residents and only two elementary schools. Chip has literally grown up alongside The Woodlands and is intimately familiar with its geography, its culture, its amenities, and its story. Chip vividly remembers walking the muddy pit that would become Lake Woodlands at the “Bottom Of The Lake” party in 1985, and recalls riding his dirt bike with friends around the dirt track that would become Mall Ring Rd. around The Woodlands Mall.

After college, Chip and his wife chose The Woodlands as the place they would put down roots and raise their children. This decision was based primarily on the excellent public schools, and additionally on other Woodlandsarea amenities like abundant natural areas, outdoor recreational activities, dining and shopping, churches and public institutions, and proximity to friends and family. Chip and his family have also enjoyed attending and participating in annual Woodlands events like The Woodlands Art Festival and The Woodlands Pride Festival, as well as the annual Fourth of July Parade and the seasonal concerts at Market Street and Hughes Landing.

chip@collinsrealtyteam.com

C: 713.254.9651

O: 281.367.3531

W: collinsrealtyteam.com

8665 New Trails Drive, Suite 190

The Woodlands,Texas 77381

Chip and his wife Jeanette live in the Village of Alden Bridge with their two teenage children, three dogs, and two cats. In addition to spending time with his family, Chip enjoys taking in live music shows, traveling (especially to California’s “wine country”), preparing lavish meals with friends, collecting rare bourbons, and supporting local organizations like The Woodlands Pride.

CLIENT TESTIMONIALS

“Chip was amazing from start to finish. He knew the area and prepared for us a great list of places to look at, and shared a ton of knowledge to help us understand the condominium arrangements. The process of preparing an offer, negotiating, and closing the purchase of our condo was fast paced but Chip was very responsive, clear, skilled and helped us feel at ease throughout - so much so that we also had him work on the sale of our previous home, with its own twists and turns that Chip expertly navigated. In short, it’s been a great pleasure to get to know Chip and work with him, and I really appreciate the safe pair of hands throughout it all.”

Buyer

Downtown

***** Five Star Rating

“Chip is a long time local to the Houston area, so his knowledge about the different areas and how they’ve changed was priceless. His vibrant and personable manner made touring the various places exciting and interesting, and was always wanting to know what we thought so he could refine his searches more and more, to really meet what we were looking for. His dedication and time found a place that we absolutely adore, and we definitely wouldn’t have found it without him!

Unparalleled service and commitment. Highly, highly, highly recommend working with Chip!”

Seller

Greater Fifth Ward

***** Five Star Rating

“Best ever agent we have ever had. He was there every step of the way, on top of everything. Kept us informed of everything we dealt with. Excellent.”

Buyer

College Park

***** Five Star Rating

“I have used a lot of real estate agents in my 40 years of buying and selling homes and I have never been as impressed with a realtor as I have been with Chip Gillespie. He is incredibly professional highly motivated and stays on top of everything throughout the porcess I would highly recommend Chip to anyone whether buying or selling.”

Seller

Grogan’s Mall

***** Five Star Rating

WE HAVE THE

From our earliest days in Houston, we have remained brokerage leaders in the real estate industry by developing relationships with our clients and our communities. The Better Homes and Gardens® Real Estate brand was built upon a passion for the home. Sellers benefit from this well known brand through the exposure generated by millions of home searches on their website and the inherent trust of the iconic brand.

WE HAVE THE ROOTS

Locally owned since 1963, the Gary Greene name has been a part of the Greater Houston Metropolitan area real estate landscape and consistently provides high-quality representation and outstanding service to generations of home buyers and sellers. Aligning with its long-standing principles, Gary Greene also incites meaningful change through the Gary Greene Realtor® Foundation, which has given over $4 million back to the community.

“We are Houston,” says Mark Woodroof, Gary Greene’s Managing Partner. “We didn’t parachute in from somewhere else. We have proudly been serving and giving back to our local communities for over 58 years.”

WHERE BUYERS FIND THEIR HOME

NATIONAL ASSOCIATION OF REALTORS® BUYER AND SELLER REPORT

51% online

28% real estate agent

6% friend, relative, neighbor

6% homebuilder or their agent

4% yard & open house signs

3% knew the seller

1% print newspaper advertisement

ONLINE MARKETING

WEBSITE EXPOSURE

More than 90% of buyers begin their initial home search on the Internet. We offer an impressive online presence for your property which allows us to present your property to potential buyers across multiple platforms, locally, nationally and globally, offering you maximum digital coverage. Our listings can be found on the following websites:

• GaryGreene.com

• HAR.com

• Realtor.com

• BHGRE.com

• Zillow.com

• Chron.com

CUSTOM LISTING WEBSITE

• Homes.com

• Listglobally.com - Syndicates listings globally to over 93 websites in over 60 countries

We generate an entire website dedicated to your listing, with all property information and our professional photography prominently displayed. We are also able to connect a myriad of marketing tools to the site including our custom property videos, tours, etc.

CUSTOM VIDEO

We will create a Search Engine Optimization (SEO) -friendly YouTube video of your property, complete with listing information and professional photos which will allow your listing to get maximum exposure as soon as the property hits the market.

APPLICATIONS

90% of the time people spend on mobile devices is spent using apps, and engagement is up to four times better in apps than mobile web browsers. A more recent study showed 40.1% of website views come from mobile and HAR specifically has over 50%. Our listings can be found on the HAR App, Zillow App, Homes.com App, Realtor.com App, Trulia App, and The Houston Chronicle App.

ONLINE MARKETING

DIGITAL BOOST

Our digital advertising also includes deploying campaigns targeting users based on characteristics exhibited in their browsing habits which allows us to get your home in front of the right buyers as quickly as possible. Our strategies are crafted to target home buyers with appropriate demographics across a wide array of online networks.

SOCIAL MEDIA

We launch your listing on Facebook, Instagram and Google with a unique approach to maximize your exposure at the critical time when your listing hits the market. This enhanced multi-day campaign is geographically targeted to expose the listing to potential home buyers searching in your market.

EBLASTS

Our online marketing involves emailing appropriately designed content to consumers. Through our technology platform, targeted marketing is sent to potential buyers in your market area as well as to area Realtors®.

ONLINE GLOBAL REACH

Since 1963, Gary Greene has been committed to service excellence across Houston’s eight county region and beyond. In addition to our regional presence, we are affiliated with the Better Homes and Gardens® Real Estate Network.

When selling your home, you need global exposure in addition to the strong marketing expertise we deliver locally. As an affiliate of Better Homes and Gardens® Real Estate, we have the resources to market your property to the highest possible number of potential buyers. With our global reach, we expose your property to buyers on six continents ensuring more eyes on your property.

When your home is posted to our website locally, it is immediately promoted to over 90 website portals, 60+ countries and over 160M potential buyers.

ARGENTINA

AUSTRALIA

AUSTRIA

BELGIUM

BULGARIA

CAMBODIA

CANADA

CHILE

CHINA

COLOMBIA

DENMARK

ESTONIA

FRANCE

FRENCH POLYNESIA

GERMANY

GREECE

HONG KONG

INDIA

INDONESIA

ITALY

JAPAN

LAOS

LATVIA

LUXEMBORG

MACAU

MALAYSIA

MEXICO

MOROCCO

MYANMAR

NETHERLANDS

NEW CALEDONIA

NEW ZEALAND

PANAMA

PAPUA NEW GUINEA

PERU

PHILIPPINES

POLAND

PORTUGAL

QATAR

ROMANIA

SENEGAL

SERBIA

SINGAPORE

SLOVAKIA

SOUTH AFRICA

SPAIN

SWEDEN

SWITZERLAND

TANZANIA

THAILAND

TUNISIA

TURKEY

UKRAINE

UNITED ARAB EMIRATES

UNITED KINGDOM

URUGUAY

VENEZUELA

VIETNAM

THE REAL ESTATE COMMUNITY

Because statistics show that a large amount of home buyers facilitate their home search and purchase through a real estate agent, it is important that we market your listing to as many real estate professionals as possible.

THE GARY GREENE REACH - ACCESSING OUR VAST INTERNAL NETWORK

Your home is presented and discussed in detail at our weekly sales meetings, with a visual walkthrough via a digital tour by our Gary Greene network of agents. Being #1 in transactions in the market area, our digital tour ensures that your property is being previewed by agents with the largest market share.

PERSONAL NETWORKING

In addition to providing detailed information and professional photos of your property on MLS®, which reaches more than 47,000 Houston area Realtors®; we pride ourselves on going above and beyond by personally connecting with agents who have listed or sold a home in your market area within the past 12 months.

BROKER OPEN HOUSES

At your discretion, a special open house preview showing for brokers and agents will allow them to personally tour the property, both in person and virtually, and become familiar with it for possible presentation to their own clients, as well as visit with your listing agent to discuss specifics.

RELOCATION CONNECTIONS

Your property’s new owner might be someone moving to the Greater Houston Metropolitan area as a result of a transfer or a new job. With many Fortune 500 companies and an expanding global presence, corporate relocations are a great source for potential buyers.

Better Homes and Gardens Real Estate Gary Greene remains the oldest relocation brokerage in Houston and has been relocating buyers and sellers in and out of the Greater Houston area for over 57 years. We are a principle broker in the Realogy Advantage Network (formerly Cartus Network), the industry leader in global mobility, and are proud of our affiliation with over 60+ other relocation management companies. Our reach covers the entire Houston MSA (9,444 sq. miles) along with 10 counties.

We actively participate in the major national mobility organizations, relationships that benefit our sellers and help secure significant group moves. We have been a selected broker for group moves such as ExxonMobil, XTO Entergy, Shell, Sabic, Westlake Chemical, McKesson Pharmaceuticals, BP, The Williams Company, Murphy Oil and many more, and since 2019, we have processed over 9,500 referral authorizations.

YARD SIGNS & OPEN HOUSES

The Better Homes and Gardens® brand is a trusted and recognized institution, which extends beyond real estate with an audience of over 40 million consumers engaged 365 days a year. Our brand resonates with buyers when our sign is placed in your yard. Once our branded sign is displayed, it is important to make your home available for consumers to tour. Public open houses, both in-person and virtual, are held and scheduled (at your discretion) on selected dates.

IN-PERSON PUBLIC OPEN HOUSES

Your home should be made-ready for the public open house as you would for any showing by keeping the exterior and interior in impressive condition. We will arrive early to place open house signs, turn on all lights, open window coverings, adjust interior temperature, etc. At the conclusion of the public open house, your home will be left as it was found; we will provide feedback, and follow-up with visitors about a second showing or offer.

VIRTUAL PUBLIC OPEN HOUSES

Like in-person open houses, your home should be made-ready and kept in impressive condition. We will arrive early to set up and make any adjustments needed and will conduct the open house virtually. We will also return the home to the condition it was found, provide feedback, and follow-up with visitors about a second showing or offer.

PUBLIC OPEN HOUSE PROMOTIONS

Your open house will be promoted on GaryGreene.com, HAR.com, Zillow.com, Realtor.com and all of their corresponding apps. If in-person, there will also be strategically placed open house signs to draw prospective buyers. If virtual, buyers will be able to attend the virtual open house on several technology platforms and view the recorded virtual open house at a later date.

FRIENDS, RELATIVES & NEIGHBORS

Gary Greene has an award-winning, in-house graphics and marketing department skilled in the preparation of effective marketing materials and tools made available to all buyers, including your friends, family, and neighbors.

CUSTOM LISTING WEBSITE

We provide an entire website dedicated to your listing, with all property information and our professional photography prominently displayed, which is easily shared with friends and family. We are also able to connect a myriad of marketing tools to the site, including our custom property videos, tours, etc.

CUSTOM RESIDENTIAL MAILINGS

We create a custom, professionally designed “Just Listed” postcard which is mailed directly to your nearby neighbors alerting them that your home is active on the market. By using smart technology we are better able to pinpoint the recipients, which ensures we are marketing your home as effectively as possible.

LUXURY MARKETING PROGRAM

Better Homes and Gardens Real Estate Gary Greene has been representing luxury homebuyers and sellers in the Houston market area with great success since 1963. We have in-depth knowledge of the market and are proud to bring the distinctive legacy of our brand to the sale of your property.

ADVERSTISING

BHGRECollection.com - is a central repository for our most exclusive listings, represented by Distinctive Collection real estate professionals across the country. Your property will take its place among this impressive collection, ready to be showcased to affluent prospects.

WSJ.com - reaches an audience of 42M digital readers per month with the average household income of $242K+ and average net worth of $1.4M+

RobbReport.com - reaches an audience of over 2.1M with over 3M in unique page views with the average household income of $480K+ and average net worth of $3.1M

Listglobally.com - reaches over 160M potential buyers in over 61 countries

PaperCity - reaches over 270K readers in the most affluent Houston neighborhoods

Houston Modern Luxury - reaches over 160K readers in the most affluent Houston neighborhoods

Town and Country - Better Homes and Gardens Real Estate Distinctive Collection runs a full page ad 3x year in the national luxury publication

Distinctive Collection National Luxury Magazine

Facebook - strategically targeted sponsored ads

Instagram - strategically targeted sponsored ads

Twitter - strategically targeted sponsored ads

LUXURY MARKETING PROGRAM

Better Homes and Gardens Real Estate Gary Greene has been representing luxury homebuyers and sellers in the Houston market area with great success since 1963. We have in-depth knowledge of the market and are proud to bring the distinctive legacy of our brand to the sale of your property.

PRINT MATERIALS

Custom 8 or 16 Page Property Brochure

Custom Feature Sheets

Custom Just Listed Postcard

Custom Broker Open House Invitations

COMMUNICATION & FEEDBACK

Our communication with you, the seller, is critical to an exceptional selling experience. You will be contacted via your preferred method with feedback, reports, and comments on a regular basis.

ACTIVITY REPORTS

We will provide periodic activity reports that detail all marketing and advertising efforts. The reports will include open houses, showing activity and comments from prospective buyers and their agents, as well as a neighborhood market activity report that includes a list of comparable properties on the market that are active, pending, or recently sold. Also, a digital activity report will be provided, outlining the online traffic being driven to your property.

OBJECTION VS CONDITION

It is important to differentiate between possible objections and conditions regarding the property.

• An objection is a feature or state that can be adjusted or corrected. Common objections: outdated paint or wallpaper, carpet in disrepair, landscape in need of sprucing, etc.

• A condition is a feature that can’t be changed or altered. Common conditions: property located on a busy street, property backing to commercial property, located in a flood plain, etc.

ADVICE AND ADJUSTMENTS

Armed with the knowledge of the difference between objections and conditions, we will review and consider all market activity and feedback provided by prospective buyers and their agents and will share suggestions based on all pertinent information so you are armed with the best information to make informed decisions along the way.

COMPETITIVE POSITIONING

Approximately 80% of market activity occurs during the first six weeks and proper “market value” pricing results in greater exposure and an increased probability of a quick sale. An overpriced home may experience fewer showings and can miss this first six week surge of opportunity and may ultimately be overlooked.

*Based on NAR Homebuying and Selling Survey

PREPARE

Together, we will tour your home to prepare a detailed summary of the interior and exterior areas of the property. Since first impressions are lasting, we will suggest improvements to enhance the marketability of your home and ensure that it will compete more favorably with other homes in the marketplace.

THE FOLLOWING IS A LIST OF SOME OF OUR TYPICAL RECOMMENDATIONS:

Evaluate how your home looks from the street. Curb appeal is paramount and the first impression.

Cut and trim the lawn and get landscaping in top condition, adding new plants and color as necessary.

Consider painting the front door, replacing the mailbox and doormat to freshen the entrance.

Paint any part of the house that needs it. Clean walls and windows, inside and out.

Repair screens and windows so they show and work properly.

Neutralize the home of any pet, smoking or cooking odors. Make sure the home smells fresh and clean.

Repair any plumbing leaks and repair or replace any unsightly caulking around tubs and sinks.

Clean carpets and patch or replace if necessary. Wax floors where appropriate.

Make rooms appear larger by storing or removing excess furniture.

Replace any items that are of a permanent nature (light fixtures, etc.) but will not be a part of the sale.

If you have a pool, make sure it sparkles.

Organize closets to show off storage space.

Remove unnecessary items from kitchen cabinets to show off their spaciousness.

Impress with a spotless and uncluttered kitchen.

Clean appliances and keep in good working condition.

Clean garage and storage areas.

Keep interior in impressive condition and at a comfortable temperature.

Open window coverings and turn on lights. Lamplight is more pleasant than harsh overhead lighting.

Make sure all light fixtures and lamps are working properly.

Keep all pets and children out of the way during showings.

Show off all rooms, including the attic and storage space, to their best advantage.

SHOW

Better Homes and Gardens Real Estate Gary Greene offers sellers two options for tracking showings and feedback on your listing. ShowingSmart and ShowingTime are the two programs Gary Greene agents and our clients can access to schedule and manage showings. With 24/7 availability, agents and sellers can receive optimal service any time of the year.

Showing services were developed to enhance the Seller and Buyer experience in the transaction and a better home-selling experience. Our showing services address all aspects of the home selling process, starting with bringing each showing request to sellers’ fingertips, sending notifications when a showing is complete, tracking showing activity on a listing(s), and consolidating all feedback and activities in easy-to-read infographics.

Both Showing Services offer an APP to simplify the process for our clients and makes it easy to manage and take part in the home-selling process.

BY DOWNLOADING THE MOBILE APP, YOU CAN:

• Confirm/decline showing requests

• See all upcoming appointments

• Review your home’s showing and feedback activity

• Adjust your notification preferences

SHOWING FEEDBACK

We will contact each buyer’s agent and/or prospective buyer for feedback to discuss the interest level, answer any questions, address buyer concerns, and encourage scheduling a possible second showing of the property. We can also determine what impression your home may have made on the buyer and/or agent and take action on any suggestions or recommendations that might better market your home.

AFTER THE CONTRACT IS SIGNED

1.

2.

The Earnest Money Contract (EMC) is signed.

The Realtor® Associate will “open title” at the title company named in the Earnest Money Contract, and the title company will deposit the earnest money check. If the amount of the earnest money is greater than $5,000, and will be held for an extended period of time, you may request it be placed in an interest bearing account.

3.

Seller receives Option Fee as per terms of EMC and deposits.

4.

Buyer schedules property inspections and contacts insurance agent, paying close attention to the Option Period, if applicable, as defined in the EMC.

5.

6. 7. 8.

Buyer makes loan application with their selected mortgage lender according to the time specified in the EMC and delivers documentation requested by lender.

The mortgage lender will begin processing the loan by:

a. ordering an appraisal of the property; and

b. verifying prior loan history, employment and financial position.

Simultaneously with the loan processing, the title company will research the title and send their title commitment to the buyer, seller, Realtor® Associates, attorneys, and mortgage lender.

The title company will act as a neutral 3rd party, escrow agent and title insurer. The escrow agent will coordinate with all entities to receive the following information for closing:

a. invoices and loan documents from the buyer’s mortgage lender

b. buyer’s hazard insurance from the buyer’s insurance agent

c. tax certificates

d. survey

9. 10. 11. 12.

Once the buyer’s loan and title are approved, the closing date is coordinated between all parties.

Buyer and seller contact utility companies to transfer service to buyer. Note: the seller does not turn off utilities until the home is sold.

The title company will prepare a closing statement with charges to both buyer and seller, usually available for review the day prior to closing.

Parties sign closing papers and title transfers from the seller to the buyer upon funding.

CONTRACT TO CLOSING

You and Better Homes and Gardens Real Estate Gary Greene

n Gary Greene helps negotiate the offer.

n Buyer and seller agree on price and conditions.

n The buyer orders mechanical and general inspections.

n The listing or selling agent sends signed earnest money contract to title company.

n Buyer makes loan application (if applicable).

CONTRACT

Your Title Company

Receives executed contract and earnest money check (which is cashed)

Begins title work and tax information

Abstractor begins title search

Examiner verifies title

Issues title commitment

Closer reviews title commitment and notifies all parties of any defects

Title company forwards title commitment to lender and Gary Greene

Title company receives closing instructions from lender

Closer consolidates all closing documents CLOSING OCCURS

Title company sends signed documents to lender for final approval

FUNDING

LOAN

Your Mortgage Company

Verifies all financial information on buyer

Orders, receives and reviews appraisal and property survey

Compiles loan package and submits to underwriter

Loan is rated by underwriter

Collects and packages additional materials as requested by underwriter

Repackages and resubmits to underwriter

Loan is approved

Prepares and delivers loan documents and funds to title company Gets Buyer approval

Orders flood certificate

REVIEWS FINAL, SIGNED DOCUMENTS SENT FROM TITLE COMPANY

1. All documents are recorded in the county clerk’s office.

2. Title policy is sent to the Mortgagee and the owner.

HELPFUL TERMS

MORTGAGE TERMS

ADJUSTABLE-RATE MORTGAGE (ARM):

Mortgage loan in which the interest rate of a home may vary at specific intervals during the loan term.

AMORTIZATION: A payment plan by which the borrower gradually reduces the balance of the mortgage by making monthly payments of principal and interest.

CAP: The maximum interest rate on an adjustable rate mortgage that may be charged.

CONVENTIONAL LOAN: Any mortgage loan other than a governmental loan.

FIXED RATE MORTGAGE: Mortgage loan in which the interest rate will not change throughout the duration of the loan.

GOVERNMENTAL LOAN: A mortgage loan guaranteed or insured by a government agency such as the Veteran’s Administration (VA) or the Federal Housing Administration (FHA).

POINT: One percent of the loan amount paid to the lender, usually in exchange for a lower interest rate on the loan.

PRINCIPAL AND INTEREST PAYMENT (P&I):

The monthly payment of interest charges and part of the principal loan balance. With taxes and insurance included, this makes up the monthly mortgage payment (PITI).

PRIVATE MORTGAGE INSURANCE (PMI): A policy that protects the lender in the event of default, and insures repayment of the loan in case of the borrower’s death or disability. PMI is generally required if the buyer’s down payment is less than 20 percent of the purchase price or appraised value.

CONTRACT/CLOSING TERMS

APPRAISAL: The opinion of an appraiser in estimating the market value of a home; usually required by a mortgage lender.

ASSESSED VALUE: Estimate of property value by a public tax assessor used as the basis for calculating property tax.

CLOSING: The final step in the sales agreement where property ownership is transferred from seller to buyer.

CLOSING COSTS: Fees and expenses, other than the cost of a property, charged to transfer ownership.

EARNEST MONEY: A down payment the buyer gives the seller up front as a show of good faith, indicating the buyer’s intent to purchase the property.

ESCROW:

1. Arrangement between a buyer and seller to place the down payment and other monies or documents with the third party until the completion of the contract closing.

2. A portion of the monthly mortgage is placed in an escrow account to pay taxes and mortgage insurance.

HOMEOWNERS INSURANCE: Also called hazard insurance, covers physical damage to the property, as well as theft and personal liability. It does not cover flooding; flood insurance must be purchased separately.

INSPECTION: Service performed by an inspector to identify any possible structural or mechanical problems.

LISTING CONTRACT: An agreement between a homeowner and an agent authorizing the agent to offer the owner’s property for sale.

MARKET VALUE: The highest price a buyer would pay and the lowest price a seller would accept.

OPTION: A real estate option is a specially designed contract provision between a buyer and a seller. The seller offers the buyer the option to buy a property by a specified period of time at a fixed price.

SELLER OR OWNER DISCLOSURE: Legal requirement that the seller disclose in writing any known defects or repairs that have been made to the property.

SURVEY: Required by the lender, a process whereby the property is measured and a scaled blueprint of the land and its property lines, structures and easements are drawn.

TITLE: A document that refers to the ownership of a particular piece of property.

TITLE INSURANCE: Policy that protects the holder from any loss resulting from defects in the title.

TITLE SEARCH: Research of public records to identify ownership, liens and encumbrances affecting the property.

REAL ESTATE TERMS

AGENCY: A term used to describe the legal relationship between a seller and a broker, or a buyer and a broker.

AGENT: Term used to describe a real estate salesperson licensed by the state who, under the supervision of a broker, represents a buyer or seller in the purchase or sale of a home.

BROKER: A person licensed by the Texas Real Estate Commission who acts as the fiduciary agent of the seller or buyer in a real estate transaction.

BUYER AGENCY: Agency relationship in which a buyer contracts with a broker to represent the buyer’s interests in real estate transactions.

MULTIPLE LISTING SERVICE® (MLS): A computerized list of all properties for sale by member brokers.

REALTOR®: A licensed agent or broker who is a member of the National Association of Realtors®, through local affiliates such as Houston Association of Realtors. Realtor® membership is voluntary and represents a commitment to the highest levels of professionalism.