This webinar examines the basic of home sales process in Texas.

1. AGENT
MICHAEL CHALAMBAGA
HOME SALE 101
CREDENTIALS
LICENSED TEXAS REAL ESTATE BROKER & CERTIFIED HOME MARKETING
PROFESSIONAL

2. Practical Issues for Home
Sellers
This mini course seeks to
outline and discuss the
major issues when
confronted when
considering the sale of
residential real estate.
Questions,Tips and
Discussion will be used to
exchange information

3. About Knowledge
We are drowning in information but starved for
knowledge. John Nasbit
A little learning is a dangerous thing. Alexander Pope
Knowledge itself is power. Sir Francis Bacon
The essence of knowledge is, having it, to apply it ...
Confucius

4. Are you Ready to Sell?
Whether you are a first-time home
Seller or entering the marketplace
as a repeat Seller, you need to ask
why you want to Sell ?
What would you like in terms of real
estate that you do not now have?
Do you have a purchasing
timeframe?

5. Issues to Investigate
Do you have any equity in your
current home ?
Are you upgrading or avoiding a
problem within the house, school, or
are ready to upgrade?
Do you have a down payment,
usually 5 to 20 percent of the
purchase price ?
What are “costs” of selling your
house ? Commissions, loan fees,
inspections, title transfer, and
taxes ...

6. Consider your options
Upgrade to Move
Improve your Home
Stay Put and Stash the Savings
These are highly dependent on
your personal needs, desires, and
financial position.

7. Selling and your Finances
Trading up
Trading Down
Tax Issues

8. Selling and your Finances
Trading Up
The desire to have a
better home is natural;
however, you must
examine the “reality” that
you costs of living will
increase.

9. Selling & Expected
Expenses
Smart Method
Do a simple budget on
your current expenses vs
what your “upgrade”
expenses become a
reality

10. Selling & Expected
Increases in Expenses
Mortgage Payment
Utilities
Insurance
Furniture
Property Tax
Maintenance

11. Selling to Trade Down
Trading Down
You may be nearing
retirement and have no
children. The house
maintenance is tougher,
don’t despair just trade
down.

12. Review your Mortgage
Options
Do your potential buyers
have financing ?
Can you finance the
purchase yourself ?
Ask a Mortgage
professional for help

13. Financing the Home
Buyer
Do you really want to be a
lender ?
You are essentially forgoing your
now money.
Is the buyer credit and risk
worthy?
Can you live with a default ?

14. Your Home Sale
Selection of your financing source
Mortgage Lenders
Federal Housing Administration
Private Institutions
Personal Lender
CONSUMERS DISCLOSURE: THERE ARE SEVERAL HUNDREDS LENDERS IN TEXAS, SELECT A LENDER THAT YOU FEEL COMFORTABLE WITH AS THEY WILL
BE IMPORTANT TO YOUR PURCHASE

15. National Association of Realtors
Timing of Sale
20
Season Off Season
15
10
5
0
March April May June July Aug Sept October Nov Dec Jan Feb

16. Local Real Estate Data
Timing of Sale
Season Off Season
March
April
May
June
July
Aug
Sept
October
Nov
Dec
Jan
Feb
0 3.75 7.5 11.25 15

17. Local MLS Numbers 2009
Date Sales Volume Avg. Price Median price Total Listing Mon. Inventory
Jan 37 $5,985,000 $161,757 $135,700 366 3.4
Feb 53 $7,670,000 $144,717 $130,000 389 3.8
Mar 80 $11,971,850 $149,648 $136,400 406 4.1
Apr 63 $8,321,511 $132,087 $128,800 407 4.4
May 71 $12,500,000 $176,056 $144,300 432 4.8
June 70 $9,724,500 $138,921 $133,300 438 5.1
July 82 $11,762,650 $143,447 $137,800 477 5.8
Aug 64 $7,843,402 $122,553 $113,300 486 6.5
Sept 77 $10,661,256 $138,458 $127,800 448 6.3
Oct 88 $13,209,052 $150,103 $130,000 454 6.6
Nov 88 $12,226,635 $138,939 $118,500 472 6.8
Dec 74 $11,918,700 $161,064 $138,200 480 6.8
Yearly Averages 70.58333 $10,316,213 $146,479 $131,175 437.92 5.37

18. To Use a Realtor or Not to
Use a Realtor ?
First, most would say “Yes”, as no two
properties -- even two identical models on
the same street -- are precisely and exactly
alike.
Also, most would also recommend “Yes”, as
contract terms, financing options, inspection
requirements and closing costs. Also, no
two transactions are alike.
Selling and Buying real estate can be a
complex matter.

19. Going Solo without a
Realtor
If you choose to deal with sell the home
yourself, you should invest in a selling
guide, such as “ Home Selling for Dummies”
Once the transaction is started you may
need more advice as you move toward
purchase. These items add cost, complicate
transactions, and can be wieldy.

20. For Sale by Owner
The Pros
Save on Commissions, Seller
Ready with Buyer in Hand, Hands
on Control, Sellers Market

21. For Sale by Owner
The Cons
No Idea on Value, Marketing, or
Preparation
Lack skills in Negotiation,
Contracts, and Legal Paperwork

22. Who are the Players on a
Real Estate Team
You
The Agent
The Broker
The Home Inspector
The Loan Officer
The Title Company

23. Who are the Players on a
Real Estate Team
You - Boss, Leader,
Decision Maker
The Agent - Primary
mission is to accurately
tell you how much your
house is worth, plus
negotiating to sell for top
dollar

24. Who are the Players on a
Real Estate Team
The Broker - The agents boss
who oversees the process and
can assist if things get
problematic
The Home Inspector - They
inspect your house to determine
any potential problems with the
property

25. Who are the Players on a
Real Estate Team
The Loan Officer - They help
process the loans for buyers and
sellers who eventually become
buyers
The Title Company - An escrow
officer usually guides the
transaction to closing so that
everyone gets the money

26. Selecting your Real Estate
Agent
The Interview
Knowledge &
Competence
Integrity
Communication
Rapport

27. Selecting your Real Estate
Agent
Important Distinctions
Two Types of Agent
Representation
Buyers Agent
Sellers Agent

28. Types of Real Estate Agents
Sellers Agent
The Sellers Agent works solely for
the seller.
Buyers Agent
The Buyers Agent works solely for
the buyer.

29. The Listing Agreement
Legal Contract
Employment Contract
Compensation Agreement

30. The Listing Agreement
The listing contract is a personal
service contract between you and
a licensed broker. This contract
authorizes the broker to act as
your agent by finding someone to
buy your house.

31. The Listing Agreement
The contract makes two pledges:
• Agent promises to do their best to
find a buyer
• You promise to pay the broker
commission

32. The Listing Agreement
There are different types of listings
that exist. Inquire which listing
agreement is best for your
situation.

33. Preparation of the Home
Curb Appeal Highlights
Paint Externals
Lawn
Sidewalks
Shrubbery
Flowers
Windows
Clutter

34. Preparation of the Home
Exterior do attract, but the
interior makes the sale
Da Clutter the Home
Da Clean the Home
Da Paint

35. Preparation of the Home
What is Staging ?
Staging is the act of preparing a private residence for
sale in the real estate marketplace. The goal of staging
is to make a home appealing to the highest number of
potential buyers, thereby selling a property more swiftly
and for more money. Staging techniques focus on
improving a property's appeal by transforming it into a
welcoming, attractive product that anyone might want.

36. The Big 5 of Home
Preparation
1. De Clutter
2. Cleaning
3. Repairing
4. Neutralizing
5. Disney Effect

37. Food for Thought on
Smart Pricing
Think like a Buyer
Buyers make the Sale
Address Pricing Upfront
Do Comparative Market Analysis
Work with your Agent

38. Smart Pricing using
Analytical Methods
Comparative Market Analysis
A means of comparing
similar type properties
which have recently sold
to the subject property.

39. Dangerous Departures on Pricing
Pricing Too High
Doing no Research
Pricing
Can’t Sell vs Won’t Sell

40. The Other Agent
Insurance Agents and various
coverages in the home ownership
process

41. Title Insurance
Title Insurance - Title Company
A policy which insures a property owner
should a prior claim arise against the
property after the purchase has been
completed. This also covers a lender
should a question of ownership arise.

42. Flood Insurance
Flood Insurance - Federal
Government
Supplemental insurance which covers a
homeowner for any loss due to water
damage from a flood; often required by
lenders for homes located in FEMA-
designated flood zones.

43. Home Insurance
Home Insurance - Insurance
Companies
A standardized insurance policy
package that covers a residential real
estate owner against financial loss from
fire, theft, liability for property damage,
personal liability and other common
risks.

44. Home Warranty
Insurance
Home Warranty Insurance - Private
Home warranties for existing homes are
typically one-year service agreements
purchased by sellers. In the event of a
covered defect or breakdown, the warranty
firm will step in and make the repair or
cover its cost.

45. Insurance Issues
Title Insurance - Title Company
Home Insurance - General Agent
Flood Insurance - Federal
Government
Home Warranty Insurance - Private
Companies

46. Home Inspection
The home inspection removes doubts about finding
any significant defects, problems, or issues before the
purchase or mortgage is executed for years.
The average cost can be from $250 -$500
Most lending institutions will require a professional
home inspection before approving the final loan.
A sellers disclosure document also supplements your
home inspection report.

47. What is Closing ?
What is it ? - Closing is a brief process where all
of the necessary paperwork needed to complete
the transaction is signed. Closing is typically
held in an office setting, sometimes with both
Seller and seller at the same table, sometimes
with each party completing their papers
separately.

48. What Happens at Closing?
What Happens ? - The result is that title to the
property is transferred from seller to Seller. The
Seller receives the keys and the seller receives
payment for the home. From the amount
credited to the seller, the closing agent
subtracts money to pay off the existing
mortgage and other transaction costs. Deeds,
loan papers, and other documents are
prepared, signed and filed with local property
record offices.

49. The Closing Move
Transfer Utilities Before Closing
Final Inspection
Pre- Cleaning
Move In

50. Course: Home Sale 101
Email: michaelchalambaga@gmail.com
Author: Michael Chalambaga
Credentials:
Licensed Texas Real Estate Broker
Member National Association of Realtors
Member Texas Association of Realtors
Certified Home Marketing Specialist