Dane Gates Listing Presentation by Better Homes and Gardens Real Estate Gary Greene

THANK YOU

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.

SINCERELY, DANE GATES

DA NE

DANE GATES

BROKER ASSOCIATE

Dane Gates is a distinguished Realtor whose unwavering commitment to excellence has made him the trusted choice for those seeking to engage in real estate transactions within The Woodlands, Spring, Tomball, Conroe, Magnolia, Montgomery, and their surrounding areas. Leveraging cutting-edge technology, an innovative 360-degree marketing approach, up-to-the-minute data analysis, and the extensive reach of his professional network, Dane brings a level of dedication and determination to each transaction that sets him apart in the industry.

With an ethos that places each deal as a “high priority,” Dane Gates vigorously advocates for his clients, consistently going the extra mile to ensure their complete satisfaction. His comprehensive understanding of the intricacies of real estate, gained through years of hands-on experience, underscores his commitment to delivering excellence in every aspect of the field.

Dane Gates’s accomplishments within the real estate realm have garnered significant recognition and accolades, cementing his status as a luminary in the field. Notably, he has been selected as one of the Top 20 Under 40 Rising Stars in Real Estate by the esteemed Houston Association of Realtors. Furthermore, his outstanding performance has earned him the prestigious Chairman’s Circle Platinum Award for four consecutive years, from 2018 through 2021, a testament to his consistent ranking among the top 0.5% of real estate professionals within his network.

Prior to this, Dane achieved the Chairman’s Circle Gold Award for the years 2014 to 2017, positioning him in the upper echelon of the top 2% of real estate professionals nationwide. His dedication to service excellence has also been affirmed through multiple Five Star Realtor Awards from 2014 to 2021, recognizing his consistent pursuit of exceptional client experiences.

CLIENT TESTIMONIALS

Dane assisted my husband and me with the purchase of our home in The Woodlands,Texas in 2020 and to sell the house in Shenandoah,Texas in 2029. I have worked with many real estate agents on several real estate transactions for last 5 years and can say with confidence that Dane is the best agent/ broker I have ever used.

Dane has the qualities that make him an extremely successful and effective broker/agent. I can’t say enough about his professionalism and knowledge within the real estate industry. He always keeping the clients best interests in mind.

He does a great job of listening to his client’s needs and does not waste time showing properties which do not meet the client’s objectives. He does research to assist with assessing a fair market value of the property for the offer and then negotiates effectively with the opposing broker on behalf of the client.

As mentioned above, he represented us on the purchase side of the transaction as well as a listing agent when we were selling our previous property.

In future transact ions, I will only have Dane represent me.

David C. - Buyer

What can I say about Dane Gates other than he is absolutely amazing! I needed to sell a property in TX and I live in CA. There were special circumstances around the property and Dane walked me through the entire process, got it done quickly, and without any issues. He is professional, friendly, honest, and has integrity. Qualities like this are hard to find. You can’t go wrong with Dane! I wish he lived here in CA so I could send him referrals.

Seller - Woodcrest, Conroe, TX

This was our first home purchase. We didn’t know what to expect at the beginning. However, Dane answered all of our questions and explained in detailed everything we needed to know about the home buying process. Now, we are living in our dream home and feel confident that we made the right decision. We highly recommend choosing Dane to represent you.

Rowley & Eva - Buyer

Dane was a great resource from the very first consultation all the way to the closing process. He was extremely knowledgeable regarding real estate processes which made the process extremely easy for us, as sellers. He recommended fantastic contractors for repairs, staging consultants to get the home ready, and provided a top notch photographer for listing photos. Dane was very available and responsive throughout the entire process. If you are planning to buy or sell a home, I highly recommend contacting Dane.

Seller - Magnolia, TX

Thorough, knowledgeable, responsive, and service-minded. If you’re looking for a realtor that exemplifies what the profession should be, look no further. Dane and his team really provided a full-service experience from initial walk-through and explaining comps to staging to addressing buyer’s last minute requests. He was always quick with phone calls or emails if I had a question, and always had a solution to the few issues that inevitably did arise during the selling process. There’s often uncertainty and anxiety that comes with selling a home, but I am glad I placed my faith and trust with Dane. In the future, he’ll be the only realtor I will use and recommend to my family and friends.

Seller - Magnolia, TX

If you are looking for the premier agent in The Woodlands area, I highly recommend Dane Gates. As a full-time active agent, he knows the market very well and has a strong network of agents and buyers that were constantly viewing our house. He was helpful through each step of the process and truly acted and negotiated with our best interests at the forefront. Most importantly, we sold our house within the timeline we needed to at a price that we were very happy with. Whether you are a perspective buyer or seller of a home in the area, I highly recommend going with an active agent that will work hard for you… and Dane is the right person for the job.

Buyer - Conroe, TX

From the initial meet-up, Dane proved to be a very professional and experienced real estate professional. We tried very hard to follow his advice and utilize the services offered, such as stagers, and our house sold for top dollar within a couple days of the listing going live. It was whirlwind! We got what we asked for it which was way more than we thought we would! Everything went well and without a hitch. This was clearly the best selling experience we have had.

Buyer - Conroe, TX

Dane listed and sold my home. He was extremely professional, knowledgeable, and showed great flexibility. When I met with Dane he made several statements about how he could drive potential buyers to my home and he delivered. Through the various listings and his marketing efforts, there were plenty of interested buyers. My home sold in less than 30 days for a competitive price and the credit goes to Dane and his team. I was extremely pleased with Dane and highly recommend him.

Seller - Spring, TX

Working with Dane was a great experience. I ask a lot of questions in general, but through my experience I asked enough questions for probably 10 clients. He was incredibly patient with my questioning and willing to go the extra mile to make sure I was well informed and made the best decision for my family and situation. I could definitely tell he was more focused on making sure I was happy than to just churn out another sale and move on to the next client. I would 100% recommend him!

Seller - Spring Trails, Spring, TX

AWARDS

HOMES SOLD

TOP 1% NATIONWIDE

PRESIDENT’S CIRCLE 2013

$220M+

CAREER SALES

CHAIRMAN'S CIRCLE GOLD 2014 – 2017 | 2019

HOUSTON REAL PRODUCER MEGA AGENT, 2018

CHAIRMAN'S CIRCLE PLATINUM 2018 | 2020 – 2021

CHAIRMAN'S CIRCLE DIAMOND 2022

FOUNDER'S CLUB 2023

#1 INDIVIDUAL VOLUME BHGRE TOP 25 2023

#3 INDIVIDUAL UNITS BHGRE TOP 25 2023

HAR TOP 20 UNDER 40

2X LEGENDS AWARD WINNER

HOUSTON BUSINESS JOURNAL'S 2024 RESIDENTIAL REAL ESTATE AWARDS

ACCREDITED LUXURY HOME SPECIALIST

RELOCATION SPECIALIST CERTIFICATION

RELOCATION BROKER CERTIFICATION

PREFERRED BROKER NETWORK • RELOCATION G-CERTIFIED HUD

APPROVED AGENT • E-CERTIFIED 2.0 600+

SINCE 1963, NO ONE HAS SOLD MORE HOMES IN THE HOUSTON AREA

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.

$2.46B+

2023 TOTAL SALES VOLUME

$1.15B+

2023 LISTING VOLUME

$1.3B+ 2023 BUYER VOLUME

5.5K+

2023 TOTAL TRANSACTIONS

2.5K+

2023 LISTINGS SOLD

3K+

2023 BUYERS REPRESENTED

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.”

Anywhere is the parent company of some of the world’s leading real estate brokerage brands and service businesses. Formerly known as Realogy, our company’s transformation is guided by a deep commitment to reimagine the consumer experience at any point in their home buying and selling journey — helping to empower everyone’s next move.

Anywhere Advisors is one of the nation’s largest owners and operators of residential real estate brokerages, with offices in more than 50 of the 100 largest metropolitan areas in the United States.

Our approximately 675 owned and operated brokerage offices and approximately 56,000 independent sales agents come from our leading brands including Better Homes and Gardens Real Estate®

2023 TOTAL SALES VOLUME

RISMEDIA'S ANNUAL POWER BROKER SURVERY

15.3%

NATIONAL MARKET SHARE OF TRANSACTION DOLLAR VOLUME

WHERE BUYERS FIND THEIR HOME

NATIONAL ASSOCIATION OF REALTORS ® BUYER AND SELLER REPORT

HOMEBUILDER OR THEIR AGENT PRINT NEWSPAPER ADVERTISEMENT YARD & OPEN HOUSE SIGNS

FRIEND, RELATIVE, NEIGHBOR

RELOCATION

9,500+ RELOCATION BUYERS, SELLERS, & RENTERS

HELPED SINCE 2019

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 since 1970. As a principal broker in the Anywhere Leads Network (formerly Cartus Network), the industry leader in global mobility, we are proud of our affiliation with over 60+ other relocation management companies. Our reach covers the entire Houston metro area.

We actively participate in major mobility organizations and are consistently selected as a broker for group moves such as EXXONMOBIL, XTO ENTERGY, SHELL, SABIC, WESTLAKE CHEMICAL, MCKESSON PHARMACEUTICALS, BP, THE WILLIAMS COMPANY, MURPHY OIL and many more.

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

• Homes.com

• Listglobally.comSyndicates listings globally to over 93 websites in over 60 countries

CUSTOM LISTING WEBSITE

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.

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.

ONLINE MARKETING & GLOBAL REACH

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 • LAO • SLATVIA • 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

LIST WITH ME AND GET YOUR LISTING ON TV!

Leveraging the fast growing trend of streaming tv to Expose youre listing to a brand new and growing audience!

Selling homes faster with the latest and most innovative techonology!

TV Devices like Roku, Amazon Fire Sticks, and Apple TVs are becoming more and more common in every household.

Don't settle for the basics. Work with an agent that will feature your listing on every popular TV device!

YOUR LISTING GETS

• Featured on Streaming TV

Your listing will be featured across streaming TV platforms like Roku, Fire TV, Apple TV, & Google TV.

• 35 Second Trailer "Teaser" Video

With a professionally written narration, narrated by professsional voice talent and published to Youtube.

• Professionally Designed Flyers

Unique two-sided flyers that sell the property and the area. We'll feature your favorite "go to" places close by.

• AI Powered Buyer Capture Technology

Utilizing the power of AI to capture interest of open house guests, web, television, and drive by traffic.

INSTALL MOVETUBE

Install on your favorite TV device! Scan the QR Code for a "how-to" video.

• Custom Foldover 4 Page Property Brochure

• Custom 8 Page Property Brochure

• Custom 16 Page Property Brochure

• Custom Feature Sheets

• Custom Just Listed Postcard

• Custom Broker Open House Invitations

• Published Newsltetter Ads

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.

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 inperson, 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, inhouse 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

ADVERTISING

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

Facebook - strategically targeted sponsored ads

Instagram - strategically targeted sponsored ads

Twitter - strategically targeted sponsored ads

27583 S LAZY MEADOW WAY

A PICTURE IS WORTH A THOUSAND WORDS

PHOTO BY KRP PROS

Real estate photography is paramount in capturing the attention of potential buyers and making a lasting first impression. In today’s digital age, where the majority of homebuyers start their search online, compelling visuals are a key factor in generating interest. Highquality photos showcase the property’s best features, providing a clear and inviting representation of the space. Professional photography not only attracts more potential buyers but also builds trust and credibility. Buyers are more likely to engage with listings that feature visually appealing images, as they can better visualize themselves in the home. Effective real estate photography can set a property apart in a competitive market, leading to quicker sales and potentially higher selling prices. Investing in good real estate photography is a strategic move that significantly enhances the marketing efforts and overall success of a property sale.

$2.46B+

2023 TOTAL SALES VOLUME

$1.15B+

2023 LISTING VOLUME

$1.3B+

2023 BUYER VOLUME

5.5K+

2023 TOTAL TRANSACTIONS

2.5K+

2023 LISTINGS SOLD

3K+

2023 BUYERS REPRESENTED

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.

REAL ESTATE NETWORK

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.

PERSONAL NETWORKING

In addition to providing detailed information and professional photos of your property on MLS®, which reaches

47,000+

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. HOUSTON AREA REALTORS ®

COMPETITIVE

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.

AVG. DIFFERENCE BETWEEN LIST PRICE AND SELLING PRICE BY LENGTH OF TIME ON MARKET*

-1.90%

-5.60% -3.60% -8.90% LESS THAN 4 WEEKS 13 – 24 WEEKS 4–12 WEEKS

MORE THAN 24 WEEKS

OF COMPETITIVE POSITIONING

% OF BUYERS WHO WILL VIEW PROPERTY

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.

AFTER THE CONTRACT IS SIGNED

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.

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

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

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

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.

The above procedure averages approximately 30-45 days. If the buyer’s credit is rejected or he cannot qualify for the payments, the contract is cancelled and the buyer’s earnest money is returned if all parties agree to the release. Contracts may be contingent on inspections and buyer’s ability to qualify for payments. The house must appraise satisfactorily and the title should be clear. Therefore, buyer and seller should not make definite plans until all contingencies have been removed. 1. 2. 3. 4.

You and Better Homes and Gardens Real Estate Gary Greene

• Gary Greene helps negotiate the offer.

• Buyer and seller agree on price and conditions.

• The buyer orders mechanical and general inspections.

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

• Buyer makes loan application (if applicable).

CONTRACT CLOSING 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 adjust-able 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.