The
Executive
An expert guide to the business of selling your home
Presented by
Cindy O’Gorman
Ebby’s Company-Wide Top Producer for Over 25 Years
CONTACT INFORMATION
Cindy O’Gorman | The O’Gorman Group Office: 972.715.0190 Voice Mail: 972.380.7389 Fax: 972.715.0290 Email: cindyogorman@ebby.com 16000 Preston Road Suite 200B Dallas, Texas 75248
www.cindyogorman.com
Dear Homeowner, Thank you so much for the opportunity to list your home! I believe the key to any successful business relationship is good communication; therefore, my team and I will do our best to keep you constantly informed throughout the entire home-selling process. We will guide you through every aspect of the transaction from the day your home goes on the market to the day it closes. As your Listing Agent, I personally watch over all of the activity on your property and will negotiate the best possible sales price when you receive an offer. Selling your home should be an exciting experience and my goal is to make the process as worry-free as possible. By listing with me, you can rest easy knowing that a seasoned professional is dedicated to looking after your best interest. I want you as a client, but even more so, I want you as a client “for life!” Warm regards,
Cindy O’Gorman–Lead Associate Jimmy O’Gorman–Associate/Listing Specialist Stacie O’Gorman Ferguson–Buyer/Listing Specialist Hollie O’Gorman Siglin–Buyer/Listing Specialist Sharron Young–Buyer/Listing Specialist Teri Dixon–Buyer/Listing Specialist
Jeff Dixon–Buyer Specialist Sherry Hodgkinson–Listing Coordinator Debra Reineke–Contract Coordinator Kathy Davis–Contract Coordinator Lauren Martinez–Marketing/Design Director Denise Adrian–Buyer Specialist
The Executive | Contents
WHY CHOOSE CINDY O’GORMAN?
Page 3
• About The O’Gorman Group • Why You Need a Real Estate Professional • Awards & Accolades • Marketing • Annual Sales • Services • Testimonials
WHY CHOOSE EBBY HALLIDAY?
Page 19
• The Ebby Advantage • Why to Sell Through a REALTOR ® • The Market Share Leader • Leading Real Estate Companies of the World • Customer Satisfaction • A Team Effort
SELLING YOUR HOME UNDERSTANDING THE PROCESS Page 29
• Pricing Your Home • Showing & Selling Your Home • Staging • Reference Guide • Seller’s Disclosure • What to Expect When You Get an Offer • Helpful Hints • Tax Tips • Getting Started
Why choose
THE O’GORMAN GROUP?
The Executive | INTRODUCTION
ABOUT CINDY
Ebby’s Companywide Top Producer
Cindy O’Gorman began her career in real estate 30 years ago, and has flourished into one of the top real estate agents in the nation. She specializes in customer service, which is why she prides herself in using the group concept. By providing her clients with a team of specialists, Cindy can guarantee the personal attention they deserve and results they can expect. Cindy has been named Ebby Halliday REALTORS’ Company-Wide Top Producer for the past 25+ years and is ranked #8 in Texas and #109 nationwide by the Wall Street Journal. The O’Gorman Group closed over $135 million in home sales in 2016 alone. Cindy remains in the top 1% of all REALTORS nationwide and her business only continues to grow. Cindy’s calm demeanor and ability to resolve difficult situations in negotiations are two characteristics for which she is known, and she enjoys giving her clients the peace of mind that she can handle all situations that arise. Her clients also receive extensive marketing, timely follow-up, and great results! She has numerous repeat customers and referrals due to the fact that once the deal is done, Cindy’s clients are amazed by how smoothly transactions go and how well they are handled. In both sales and customer service, it is clear that Cindy O’Gorman is number one.
About The O’Gorman Group
The O’Gorman Group is comprised of licensed real estate professionals who serve as the foremost specialists in their fields. The team includes 6 Buyer/Listing Specialists, a Listing Coordinator, Transaction Coordinator, Contract Coordinator, Marketing/Design Director, and Office Manager. All work together alongside Cindy with unwavering consistency in providing the whole package through brilliant marketing and customer care, fully exhibiting Cindy’s signature mark of excellence.
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#8
Cindy O’Gorman ranked #109 nation-wide and #8 in Texas in 2016 by Lore Magazine under Top 100 Teams by Sales Volume. This magazine is a Product of The Wall Street Journal and announces the top 1,000 Real Estate Professionals at the end of each year. Cindy has graced the charts in the top 200 since 2006.
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The Executive | 9
AWARDS & ACCOLADES WHY CINDY?
Ebby Halliday Company Wide Top Producer for Over 25 Years Closed Over $135 Million in 2016 Top Company-Wide Listing Group Ranked 8th Group in Texas (2016 Wall Street Journal) Ranked 109th Group in the Nation (2016 Wall Street Journal) Company-Wide Top Group Eagle Award Diamond Circle Member for Over 25 Years Star Award for Highest Company Sales Plateau Company-Wide Relo Award Ranked Top 1% of Realtors Nationally Named Top Power Broker by D Magazine Named a Top Agent by Real Estate Executive Magazine 2016
10 | The Executive
AWARDS & ACCOLADES WHY CINDY?
The Executive | 11
MAXIMUM EXPOSURE WHY CINDY? | MARKETING
Listing with the best means you will receive expert advice, personal service, & maximum exposure. Maximize Your Profit • Prepare a comparative market analysis of comparable sold properties to help determine the value of your home to generate the maximum interest and profit • Market to target groups Expert Advice • Offer suggestions to enhance your property in order to receive top dollar • Feedback will be given after each showing • Once a month, you will be sent a comprehensive report regarding all activity on your property • Your market analysis will be updated and sent to you frequently • Will provide reasonable & reliable contractor/vendor list to help you get estimates for repairs or updates that need to be done in your home Special Advertising* • Professional photography and virtual tours • Just Listed postcards are high gloss, full color, and mailed to target markets • Professional full color brochures placed in the home • Features on websites including cindyogorman.com, ebby.com, realtor.com, luxuryportfolio.com, and multimilliondollarestates.com (if applicable) • Feature home spotlight on realtor.com • Front page feature on cindyogorman.com • Magazine advertising includes Divine Properties, Avid Golfer, Grand Vie, and more • Frequent advertising in the Dallas Morning News • Press releases in the Dallas Morning News • Special advertising in Wall Street Journal and various local newspapers • Social media advertising on facebook, pinterest, twitter, and instagram • Open House opportunities available upon request *Listing your home with Cindy O’Gorman does not guarantee that your property will be advertised in all of the above advertisements. These are listed as advertising opportunities frequently used by The O’Gorman Group.
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ALERT THE (SOCIAL)MEDIA WHY CINDY? | MARKETING
We love showing off our properties on social media! “Just Listed” Facebook videos and frequent social posts, blog features, daily instagram posts, tweets, pinterest features and more! Follow us to get up close and personal with our listings!
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PRINT ADVERTISING WHY CINDY? | MARKETING
Divine Properties
The O’Gorman Group publishes their own magazine, Divine Properties. This publication contains all of The O’Gorman Group’s listings with vivid phtography and detailed descriptions. It is distributed quarterly to over 17,000 potential buyers in targeted areas.
Just Listed Postcards
Beautiful, high quality postcards are sent out shortly after listing your home with The O’Gorman Group. The postcards are high gloss, full color, and mailed to target markets in your area.
Brochures
High gloss, full color brochures are customized for your property using professional photography and detailed descriptions. They are placed in the home for potential buyers and agents to take with them after viewing the property.
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PRINT ADVERTISING WHY CINDY? | MARKETING
Advertising Opportunities
The O’Gorman Group markets your home in various prestigious publications such as Avid Golfer, Grand Vie, Luxury Portfolio, and FDLuxe!
Newspapers
Your property will be advertised frequently in our weekly Dallas Morning News Saturday ad, in addition to other special publications such as Wall Street Journal.
The O’Gorman Group
Cindy O’Gorman
Ebby’s Company Wide Top Producer for Over 25 Years
The O’Gorman Group p: 972.715.0190 vm: 972.380.7389 e: cindyogorman@ebby.com www.cindyogorman.com
Master Suites with Fireplaces
6413 Old Gate Road | $6,999,000 7/9.2/9LA/6/2 Pools/Spa/1.858 Acres/Tennis Court Plano | Elegant master retreat features beamed ceilings, sitting area, fireplace, private backyard access, hardwoods, and separate his/hers baths!
12545 County Road 220 | $2,999,900 4/5.2/4LA/5/Pool/Spa/69.8 Acres Celina | Spectacular ranch property features privately appointed master suite with fireplace, sleeping porch, balcony, and unbelievable spa oasis bath!
1708 Cliffview Drive | $2,950,000 5/6.2/6LA/4/Pool/Spa/Golf Lot/0.72 Acres/Gated Comm. Plano | Stunning custom in Cliffs of Gleneagles with panoramic golf & water views! Downstairs Master with fireplace, tiered ceiling, and private patio access!
6005 Kettering Court | $2,795,000 6/6.2/5LA/3/Pool/Spa/0.73 Acres Dallas | Exceptional Preston Trails estate with sensational downstairs master suite! Fireplace, wood beamed vaulted ceiling, hardwoods, and luxurious bath!
6419 Riverview Lane | $1,150,000 4/3.1/4LA/3/Pool/Spa/Creek Lot Dallas | Exquisite renovated one story in Prestonwood Creek features oversized master suite with sitting area, fireplace, retractable TV, and spa like master bath!
3 Harbour Town Court | $774,900 JUST LISTED! 4/3.1/4LA/3/Pool/Spa/Gated Community Frisco | Gorgeous updated Stonebriar estate features rich hardwoods, beamed ceilings, and soft transitional style! Master with fireplace & french doors to bath!
OPEN SUNDAY (2/26) 1pm–3pm
6005 Yorkville Court | $1,749,900 5/7.0/5LA/3/Pool/Spa/0.876 Acres Dallas | Stunning Preston Trails estate provides downstairs master with spacious sitting area and wall of windows overlooking the beautiful backyard oasis!
5521 Linmore Lane | $1,199,900 REDUCED! 5/4.1/4LA/3/Pool/Spa/0.46 Acres Plano | Beautiful Steve Roberts custom features downstairs master with plantation shutters, hardwoods, fireplace, and private pool access! Updated bath!
OPEN SATURDAY (2/25) 1pm–3pm
3904 Wood Lake Drive $1,279,900 Plano-5/5.2/5LA/3/Pool/Spa Lovely Lakeside on Preston home with updates galore! Downstairs master & guest!
OPEN SUNDAY (2/26) 1pm–3pm
37 Armstrong Drive $1,495,000 Frisco-5/5.1/5LA/3/Pool/Spa/Water View Exceptional estate in gated Stonebriar Park with large yard & incredible outdoor living!
4759 Byron Circle $1,074,500 Irving-4/4.2/4LA/3/Gated Community Stunning Mediterranean overlooks greenbelt & park! Game and media rooms!
OPEN SUNDAY (2/26) 2pm–4pm
5509 Weatherby Lane $849,900 Plano-4/4.1/4LA/3/Pool/Spa Exquisite home with upgrades & updates galore! Fresh paint & carpet, master down!
5216 Windjammer Road $925,000 Plano-5/4.0/2LA/4/Pool/Spa/0.65 Acre One story traditional on oversized greenbelt lot with 4-car garage! Huge yard!
6278 Memorial Drive $924,900 Frisco-3/4.0/3LA/3/Creek Lot Exquisite estate in Chapel Creek with beautiful finish-out! Picturesque creek lot!
OPEN SUNDAY (2/26) 1pm–3pm
13222 Glad Acres Drive $649,900 Farmers Branch-3/3.1/4LA/2/Pool/Spa JUST LISTED! Light & bright contemporary dream home with unique features throughout!
17232 Nailsworth Way $469,900 Dallas-3/3.0/1LA/2/Community Pool REDUCED! Beautifully updated Hawkins Welwood town home in gated community!
4820 Durham Drive $419,900 Plano-3/2.1/3LA/2-Car Garage REDUCED! Low maintenance living in West Plano! Gourmet kitchen with island!
4411 Black Otter Trail $415,000 Dallas-4/2.1/2LA/2/Large Backyard Incredible one story with tons of character! Adobe style fireplaces & beamed ceilings!
Press Releases
The O’Gorman Group also submits a weekly article & photo to the Dallas Morning News featuring one of our exquisite listings!
The Executive | 15
ANNUAL SALES WHY CINDY?
With homes ranging from $100,000 to over $5 Million, no job is ever too large or too small! 16 | The Executive
SERVICES WHY CINDY?
The Executive | 17
SERVICES WHY CINDY?
18 | The Executive
19 | Why Cindy?
Why choose
EBBY HALLIDAY?
THE EBBY ADVANTAGE WHY EBBY?
Company Ethics Ebby Halliday, Realtors® conducts its business according to the ethical standards that are among the highest in the real estate industry, and Ebby Halliday Associates may pursue their own professional success secure in the knowledge that those standards will not be compromised. • Ebby Halliday, Realtors® places the interest of its clients first, and takes seriously its responsibility and moral obligation to its clients • Honesty, integrity, and service are the foundation of the firm’s success, and the firm’s daily business practices are based on these principles • The firm and its Associates understand clearly that client confidence, trust, and loyalty must be continually earned • The firm supports and follows all the laws governing the practice of real estate, and does not deviate from the National Association of REALTORS® code of ethics • Ebby Halliday, Realtors® expects the same high standards from its associates and believes those standards are essential to the Associate’s success • The firm treats its clients and its Associates with dignity and respect, and expects Associates to treat our clients in a like manner Ebby Halliday, Realtors® is the largest independent broker in Texas and one of the largest and most successful in the nation and that success is based squarely on tradition, trust, and service. • A tradition of exceptionally high standards and ethical conduct, both by the firm and by each and every Ebby Halliday, Realtors® Associate • Trust that has been established through fair, equitable business practices and honest, straightforward attention to the needs and desires of every client • Truly exemplary service provided by the exceptional team of real estate practitioners who are “The Home Team”
The Executive | 21
THE EBBY ADVANTAGE WHY EBBY?
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THE EBBY ADVANTAGE WHY EBBY?
The Executive | 23
MARKET SHARE LEADER WHY EBBY? U N M AT C H E D L O C A L E X P E R T I S E
Ebby Halliday Ranks No.10 Nationally How does an independent real estate company from Texas attain national ranking? We believe it is the result of our uncompromising commitment to client service. We are No. 1 in Dallas-Fort Worth and in all of Texas because at Ebby Halliday our clients’ interests always come first. The Ebby Halliday Companies* retains its longtime position as the largest independently owned residential real estate firm in Texas and is 10th nationally** among all companies in REALTrends, Inc. 2015 rankings.
24 | The Executive *The Ebby Halliday Companies includes Ebby Halliday, REALTORS®, Dave Perry-Miller Real Estate and Williams Trew Real Estate **Based on closed sales volume for 2014. SOURCE: REALTrends 500 ranking ©2015. Equal Housing Opportunity.
MARKET SHARE LEADER WHY EBBY?
U N M AT C H E D L O C A L E X P E R T I S E
The Market Share Leader
THE TOP 5 DALLAS-FORT WORTH RESIDENTIAL BROKERS MARKET SHARE, YEAR-TO-DATE THROUGH 10/31/15*
EBBY HALLIDAY COMPANIES**
12.86%
3.29%
2.58%
2.50%
2.42%
0
2
4
6
Ebby Halliday Companies** Briggs Freeman Sotheby’s Coldwell Banker Residential
*Source: NTREIS MLS Sales Volume, 1/1/2015 - 10/31/15 ©2015. Equal Housing Opportunity.
8
10
12
14
Keller Williams Realty Re/Max DFW Associates
**Includes Ebby Halliday, REALTORS®, Dave Perry-Miller Real Estate and Williams Trew Real Estate
Not intended to solicit property currently listed.
15285/050515
The Executive | 25
®
®
LOCAL EXPERTISE, GLOBAL CONNECTIONS, POWERFUL MARKETING. WE MARKET YOUR PROPERTY TO THE WORLD.
OVER 500 FIRMS 4,000 OFFICES 120,000 ASSOCIATES OVER 40 COUNTRIES OVER ONE MILLION TRANSACTIONS AND $272 BILLION IN ANNUAL HOME SALES
When selling your home, you need global exposure in addition to the strong marketing expertise we deliver locally. As an affiliate of Leading Real Estate Companies of the World,® we have the resources to market your property to the highest possible number of potential buyers. With 120,000 talented associates around the world, we expose your property to buyers on six continents ensuring more eyes on your property. In addition, we receive inbound clients from other affiliates around the globe who are interested in purchasing a home. Leading Real Estate Companies of the World® is a pedigree denoting the very best companies who represent qualified clientele and wish to do business with similar firms. Each year our network is collectively responsible for over one million transactions on a global basis. When your home is posted to our website locally, it is immediately promoted on the LeadingRE.com website. It is also immediately connected to the websites of over 500 of our affiliated real estate firms in the world.
®
© 2013 Leading Real Estate Companies of the World. All Rights Reserved. C-Local Expertise 05.13
Equal Housing Opportunity
LOCAL STRENGTH. GLOBAL POWERHOUSE. MAXIMUM EXPOSURE.
As an affiliate of the prestigious Leading Real Estate Companies of the World® network, we are proud that our organization produced more home sales volume in 2012 than any national real estate network, $272 billion, representing over one million transactions. Those connections make us a national and global — not just local — real estate company working on your behalf. LeadingRE affiliates also lead in the number of sales, with 20% more transaction sides than the closest competitor.
MORE U.S. HOME SALES VOLUME IN 2012 THAN ANY NATIONAL REAL ESTATE BRAND
Volume shown in billions of dollars
$272
®
OVER 500 FIRMS 4,000 OFFICES 120,000 ASSOCIATES OVER 40 COUNTRIES
250
$200 $188
®
Leading Real Estate Companies of the World
®
OVER ONE MILLION TRANSACTIONS AND $272 BILLION IN ANNUAL HOME SALES
Leading Real Estate Companies of the World® Coldwell Banker RE/MAX Prudential Keller Williams Century 21 Sotheby’s Real Living ERA Realty Executives Better Homes & Gardens
200
150
$126 $119 $107
100
50
$53 $37 $23
$17 $11
Actual member statistics for LeadingRE and estimates for other networks using average sales units per agent and average sales price for firms in each respective network from published sources for 2012 production.
®
© 2013 Leading Real Estate Companies of the World. All Rights Reserved. C–Sales Volume. 05.13
Equal Housing Opportunity
0
CUSTOMER SATISFACTION WHY EBBY?
99%
of our Buyers and Sellers rated our Associates
“Excellent” in Customer Service*
Work with the first name in Real Estate!
© 2011 Equal Housing Opportunity EH-33 1/11
28 | The Executive
*Based on returned surveys as reported by Continuity Programs, Inc., Marketing Resource Services
A TEAM EFFORT WHY EBBY?
The Executive | 29
a guide to
SELLING YOUR HOME
GETTING STARTED SELLING YOUR HOME
GETTING STARTED SELLING YOUR HOME
32 | The Executive
PRICING YOUR HOME SELLING YOUR HOME
U N M AT C H E D L O C A L E X P E R T I S E
Price Your Home To Attract Buyers If you overprice your home: g
g g g
It makes other homes more attractive and can actually help sell the competition. It will be shown to fewer prospective buyers. Fewer prospects will respond to the advertising. You may lose buyers who are willing to negotiate.
Percentage of Prospective Buyers Who Will Consider Your Property 0% 10% 20% 30%
10% ABOVE 5% ABOVE
40% 50%
The Asking Price is Market Value
60% 70% 80% 90%
5% BELOW 10% BELOW
100%
Note: Range of figures and percentages are general and for illustration purposes only.
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PRICING YOUR HOME SELLING YOUR HOME
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DANGERS OF OVERPRICING SELLING YOUR HOME
7 Dangers of Overpricing 1. Sellers lose the positive impact of their new listing on the market and miss out on prime selling time. 2. Many potential buyers won’t even look at the home, thinking it is above their price range. 3. Buyers concentrate on flaws and minimize positive qualities of the home. 4. Buyers who do look at the home are shopping by comparison; looking at your home may convince them to make an offer on a different property. 5. When a home has been on the market for an extended period of time, buyers become suspicious that there is something wrong with the home or the neighborhood. 6. Overpricing lengthens marketing time and invariably results in a lower selling price than if the home had been priced correctly from the beginning. 7. Sellers lose valuable time. Time is wasted in preparing for a showing when there is a slim chance of a sale.
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IMPORTANT DOCUMENTS SELLING YOUR HOME
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REFERENCE GUIDE SELLING YOUR HOME
We would like to share with you the following information regarding the presentation of your home through our Multiple Listing Service.
Appointments
All appointments for showing will be made through Centralized Showing Service (CSS). They provide a record of each showing as well as a log of previous showings. Our office also offers a back-up system with showing information. We strive to maintain an adequate supply of graphics and Seller’s Disclosures at the property address. Please let us know when your supply gets low! The marketing of your home is a cooperative effort among your family and every member of Ebby Halliday Realtors. The associates at our front desk make every effort to follow the showing instructions - particularly in regard to alarm systems. CSS offers many methods of notifying you of showings - from courtesy calls to text messages, we will make sure to find the right fit for you! You can also call CSS at any time to find out if you have any pending appointments: (817) 858-0055
Key Boxes
Key boxes are the most convenient method of entry for realtors. The key box is attached to your property (they can be concealed or put on the front door), and holds the key to your home. In order for an agent to gain access to the key box, they must be an active member of MLS. These key boxes store information such as the agent’s name, date, time, etc. so that when an agent shows your property, we have a record of all activity.
Security
If an agent has left lights on, a door unlocked, a pet outside, or some other major error, we need to know. You can relay important information to the showing agent and prospective buyer by placing a note in a prominent place identifying the specific instructions. We strive to keep all properties as secure as possible: it is imperative that you remove money, jewelry, and other valuables.
The Executive | 41
HELPFUL HINTS SELLING YOUR HOME
Yard Signs
Our yard sign is very important as a marketing tool. Our company has answered our request for lightweight signs that are easy to handle and will fit in our car trunks. Occasionally they will lean, please help us keep a “straight sign.” We will try to keep our swingers attached, but sometimes the plastic ties break and the swinger detaches. We will provide extra plastic ties in case this happens; or just call us so we can come by and secure the swinger.
Contract for Sale
It is the responsibility of an agent to present an offer when asked to do so, regardless of the terms of the offer. An agent cannot refuse to present the offer. You, as the owner can certainly decline what you consider to be an inadequate offer; however, rejecting an offer means the contract has no chance of working out. We have worked offers that have resulted in successful closings that seemed like they would never work out.
Swimming Pools and Spas
In accordance with Dallas (and other) City Ordinance, all swimming pools and spas must have (a) at least a 4 foot fence around the pool, (b) all gate entries to the pool must be self-locking. A copy of the company policy regarding pools, spas, etc. is available in the listing packet.
Away From Home
Please let us know when you are going to be away from home for several days so we are aware of how to contact you if you receive an offer. Advise us of any special arrangements ie house sitter, pet care, altered showing instructions, etc.
Home Warranty Plans
In the listing packet there will be a brochure explaining the Home Warranty Protection Plan. These plans are an option for the seller (and an option for the buyer at the time of closing). Because of litigation in other states, we as real estate agents are requested to present the plans. We have a form in the listing packet, listing plans available, and numbers to call for information.
Seller’s Disclosure Notice
It is required by law that a Seller’s Disclosure notice be on file. It must be complete and as accurate as possible for the protection of the seller, as well as the buyer. If changes occur during the listing period, the agent should be notified and the disclosure updated.
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WHAT TO EXPECT... SELLING YOUR HOME
Buying a home may be the largest investment most people ever make. Naturally, a buyer will want to know as much as possible about the property before finalizing the purchase at closing. The first things people notice are the architectural style, location, the floor plan, and the cosmetic condition of the property. From these factors they will decide whether to make an offer. After the offer has been accepted, the next step will include an inspection. The Inspection
The buyer will seek the expertise of a licensed independent home inspector. These licensed inspectors are required by their licensing authority to examine specific items in a house and to use a standard form for the report. The home inspector will examine the house and determine if the home is structurally sound and if the primary systems are in good working condition. After the inspection, the inspector will present they buyer with a printed statement setting forth the conditions and limitations under which the inspection is performed. This statement explains that the inspection is a visual inspection of accessible areas only. He/she also provides the buyer with a written report summarizing what he/she has found. The report will detail the condition of the principle items and any other items that may be of concern to the buyer. After the buyer receives the report and feels that there are items that need to be addressed, the buyer will present the list to you in the form of an Amendment to the Contract. This inspection and request by the buyer must be completed within the “option� period. As a seller you can 1) Agree to do the repairs, 2) Do part of the repairs, or 3) Refuse to do any repairs. If you do not agree to the repairs, the buyer can 1) Agree to take the property without repairs/limited repairs, or 2) Terminate the contract and get their earnest money back.
Home Service Agreement
Many buyers will request that the seller furnish a one year home service agreement (better known as a Home Warranty). This home service agreement protects the buyer from the expense of a major repair or replacement caused by an unexpected mechanical failure of a major system or appliance. Some of these home service companies do a pre-inspection of the mechanical systems to make sure there are no pre-existing conditions. Should this pre-inspection indicate needed repairs, they must be completed before closing. These pre-inspections are limited to the mechanical systems only.
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WHAT TO EXPECT... SELLING YOUR HOME
The Appraisal
An appraisal is a written document that determines the “market value” of your house. The buyers’ mortgage company will contact a licensed appraiser to perform the required inspection of your property. The appraiser determines the market value of your house by comparing it to other similar homes in the neighborhood that have sold in the last six months. He/she takes the sale price of the three or four similar homes and adjusts that price according to the features and square footage of your property. The average of the adjusted amounts is the appraised value of your home.
The Closing
The closing is the final step of selling a home, where you transfer ownership of the property. The buyer will probably take a final walk-though of the house prior to closing. If you have done any repairs, we will need to give the buyer copies of the receipts of these repairs before their walk-through. The closing will take place at a title company or our office, where you will sign the necessary papers. They buyer and seller customarily do not attend the closing at the same time. Typically, you will receive your proceeds at the time of funding, which is usually about two hours after the buyer signs all paperwork. You may choose to have funds wired to your account or you may pick up your check at the title company when you are notified of the funding. Should you have any special needs regarding the closing, we will work them out with the title company.
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HELPFUL HINTS SELLING YOUR HOME
In Texas, almost all closings take place at the title company
All title companies are licensed within the Texas Department of Insurance and must strictly adhere to Chapter Nine of the Texas Insurance Code, which specifically sets forth all rules, rates, and regulations for all title companies and agents doing business in the state of Texas. Escrow officers, who will be handling the closing of your transaction, also must be bonded with the Texas Department of Insurance.
Newcomers to Texas are often confused by Texas Homestead Laws & how the title is held
Many questions concerning joint tenancy with right of survivorship are asked by purchasers when moving in Texas. The statute under Texas law is a very complex one, and anyone wishing to create a right of survivorship in community property under Texas law should certainly consult with their own Texas attorney. The result of creating a right of survivorship in community property in Texas, however, should not bet confused with common law joint tenancy with right of survivorship as it exists under laws of most states.
Quite frequently, one of the parties will not be present at the closing
It is customary in this area to have purchasers and sellers close at different times. Your real estate agent will be responsible for coordinating with the other agent and the title company on all matters. The title company will, unless directed otherwise, deal strictly with your real estate agent. Should this be the case, it is extremely important that prior arrangements be made through your real estate agent. Many times individuals go to their attorney in their state and have a Power of Attorney drawn up for closing. The hazard in doing this is two-fold: 1) not all lenders will allow a Power of Attorney to be used at closing. 2) a Power of Attorney drawn in another state may not be acceptable in Texas. It is always best to advise your real estate agent well in advance should you be unable to attend the closing so that he/she may work with the title insurance company to determine if a Power of Attorney can be used and, if so, that the Power of Attorney will be acceptable to your lender and will meet all the current requirements under Texas Law. Should a Power of Attorney not be allowed by your lender, arrangements will need to be made to “overnight” the papers for signature. Advance notice of this to your agents, and in turn to the title company, will ensure that time restrictions caused by loan funding requirements can be met without panic and additional unnecessary costs.
Be aware of the “good funds” ruling now in effect under the rules and regulations of the Texas Department of Insurance
Under this “good funds” ruling, title companies must have received and deposited the good funds in an amount equal to all disbursements before any disbursements can be made. Cash, wire transfer, cashier’s check or certified checks all fall within the acceptable definition of “good funds.” A title company is allowed to accept uncertified funds in amounts less than $1500. Each title company has a corporate limit on uncertified funds which may be less than $1500 set for by the Texas Department of Insurance, therefore it would be advisable to check with your title company for the actual amount of uncertified funds that they will accept.
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HELPFUL HINTS SELLING YOUR HOME
Real estate taxes and property tax exemptions
Property taxes in Texas are based on property values. Property taxes are local taxes that are governed by state law. Local officials appraise the value of the property, set the tax rates and collect the taxes.
There are 3 main components of the property tax system in Texas:
1. An appraisal district in each county sets the value of the property for taxation.
2. An appraisal review board settles any disagreements between you and the appraisal district about the value.
3. The taxing units decide how much money they will spend, which determines the total amount of taxes that will be paid.
To qualify for homestead exemption, you must own your home on January 1 and you must use the home as your principal residence on January 1. An application form for the exemption can be obtained from the appraisal district office. The form must be filled out and returned to the appraisal district office no later than April 30. Once you receive a homestead exemption, you don’t have to apply again unless the chief appraiser requests it or unless your qualifications change.
Other exemptions allowed under Texas law are:
1. Exemptions for homeowners age 65 or over
2. Exemptions for disabled homeowners
3. Exemptions for disabled veterans and their survivors
4. Exemptions for solar or wind powered energy devices
5. Agricultural appraisal
For further information concerning tax exemptions, contact your local appraisal district or write to the State Property Tax Board, P.O. Box 15900, Austin, TX 78761-5900, and request a copy of the most current edition of the guide to property taxes for Texas.
46 | The Executive
TAX TIPS SELLING YOUR HOME
The Executive | 47
TAX TIPS SELLING YOUR HOME
48 | The Executive
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