Josh Zuehlke - The Wille Group Seller Guide

JOSH ZUEHLKE, REALTOR

The Wille Group

Coldwell Banker Burnet

SELLER GUIDE 2016

The Wille Group

2015

Our significant

sales of 2015

2505 Lake of the Isles Parkway

Minneapolis

$3,500,000

Represented Buyer

5201 Mirror Lakes Drive

Edina

$1,560,000

Represented Seller

101 Main Street #3

Minneapolis

$1,410,000

Represented Seller

2812 Dean Parkway

Minneapolis

$1,190,000

Represented Buyer & Seller

1701 Irving Avenue S

Minneapolis

$875,000

Represented Seller

1621 Mount Curve Avenue

Minneapolis

$850,000

Represented Seller

4936 Zenith Avenue S

Minneapolis

$775,411

Represented Seller

1775 Humboldt Avenue S

Minneapolis

$620,000

Represented Buyer

4433 Vincent Avenue S

Minneapolis

$574,000

Represented Seller

30 30 71 35 Top

5

Sellers

Represented

Buyers

Represented

Average days

listed on market

Million dollars

in homes sold

And now, 2016… Lake Calhoun, Minneapolis $2,000,000 Edina $1,079,000 Lowry Hill, Minneapolis

$799,000 Armatage, Minneapolis $750,00 Victoria $1,250,000 Edina $715,000

Plymouth $1,299,000 Eden Prairie $2,995,000 Lowry Hill, Minneapolis $2,800,000

Josh Zuehlke, Realtor

Sales team in

Coldwell Banker

Burnet

Joshua W. Zuehlke

Executive Realtor Distinctive Homes Division Top 10 Coldwell Banker Realtor Team Professional Summary

A proven sales consultant and educator committed to building

and managing strategic, long-term relationships. Demonstrated

success in project and customer relationship management,

linking products and services to clients’ needs and objectives,

and generating results through networking, prospecting, qualifying, closing, and

support of the complete sales cycle.

Professional Experience:

Coldwell Banker Burnet – Licensed Realtor, Sales Manager, Development Specialist.

Created and implemented sales and marketing strategies, buyer incentive programs,

and follow-up protocols for an 86-unit town home conversion development.

Todd Allen Homes – Licensed Realtor, Sales Manager, Project Manager. Managed the

complete sales cycle for a 48 unit single-family home development.

Wayzata High School – Teacher. Developed curriculum to increase student

participation and facilitate learning in US History, World Civilizations, Current Events;

special focus on improving effectiveness for ELL, EBD and ADHD students.

Education:

Licensed Minnesota Realtor – 2003-Present

Licensed MN Teacher – 2002-Present

University of Minnesota – 2002-2004

M.A.-level course work in education (5 Cr. Shy of MED)

University of Montana – Missoula, MT – 1997

B.A. Sociology, emphasis in Ethnographic Research

Other:

Personal interests include being a great dad, education, coaching, world travel, and

sports of any kind. Active child sponsor of Common Hope; an organization contributing

to the health, education, and well-being of children in Guatemala.

Joshua W. Zuehlke

Direct: 612-924-7132

Mobile: 612-735-2345

[email protected]

Gavin W. Berg

Realtor

Assistant to Josh Zuehlke

Professional Summary

A dynamic and creative approach to the sales process, Gavin

assists in turning a client’s dream of what a home can become

into reality. With the help of Computer Animated Design (CAD),

he provides visual representations of desired changes – from

paint colors to newly construction floors or additions – that inspire

and excite.

Professional Experience

Coldwell Banker Burnet – Licensed Realtor, Assistant to Josh Zuehlke. Orchestrate entire

process of home buying and selling from initial inquiry to the closing table and beyond

while cultivating professional relationships to ensure continued business.

Lakes Sotheby’s International Realty – Office Associate/Listing Coordinator. Managed

and maintained listings to ensure accuracy from pre-market through the closing

process.

Education

Licensed Minnesota Realtor – 2006 to Present

University of Minnesota – Minneapolis, MN

Other

Gavin’s passion for homes began as a dream to become an architect. While plans

changed, the passion remained and continues to drive his business as a trusted advisor

for his clients with his true and thorough understanding of the design and building

process.

Away from real estate, you will find Gavin at the piano. He finds additional creative

outlets as a concert pianist, recording artist, choir director and composer.

A lifelong Minnesota resident, Gavin now resides on Minneapolis’ Lake Calhoun.

Gavin Berg

Office: 612-924-7123

Mobile: 612-720-4470

[email protected]

Michael W. Wille

Broker, Executive Realtor, Accredited Relocation Specialist, Distinctive Homes Division, Top 10 Coldwell Banker Realtor Professional Summary

An experienced Realtor and business executive with a successful

track record of helping clients achieve their Real Estate goals. My

career mission is to provide service levels that are so exceptional

that our Clients continue to be our primary source of new business.

Professional Experience:

Coldwell Banker Burnet, The Wille Group – Executive Realtor representing buyers and sellers of

residential real estate. Licensed Real Estate Broker in the State of Minnesota.

International Multifoods – President, Foodservice. Corporate Officer.

Ecolab, Incorporated – Vice President, Marketing, Institutional Division.

Cargill, Incorporated – International Director of Marketing and Sales.

The Pillsbury Company – Restaurant and Foodservice management.

General Mills, Incorporated – Marketing positions in consumer foods.

Education:

Northwestern University – Evanston, IL 1983

Kellogg School of Management,

Masters of Management degree with concentration in marketing

Vanderbilt University – Nashville, TN 1982

Bachelor of Arts degree with majors in Economics and Business Administration

Other:

Michael was born and raised in the Lake Minnetonka area and has been a resident of Lowry

Hill for over 28 years. Michael is married, with two children. His personal interests include home

restoration, construction, outdoor activities and travel. He has personally restored two homes

near Lake of the Isles.

Michael Wille

Office: 612-924-7122

Mobile: 612-860-7040

[email protected]

Jennifer Carpenter

Realtor

Top 10 Coldwell Banker Realtor Team


Jennifer brings over 15 years of sales experience to the Wille

Group team. With extensive experience in real estate, she works

closely with both buyers and sellers to achieve their goals and

provide a fun and positive experience.


Coldwell Banker Burnet – Licensed Realtor, Business Manager of The Wille Group.

Orchestrate entire process of home buying and selling from initial inquiry to the closing

table and beyond while cultivating professional relationships to ensure continued

business. Strong focus on corporate relocation and transitioning families to a new

home and community.

JMS Custom Homes – Director of Sales.

Sales, marketing and client management for a custom homebuilder in the western

suburbs of Minneapolis. Responsible for a wide knowledge of properties and markets,

house plans and options.

Education

Licensed Minnesota Realtor – 2011 Present

Minnesota State – Mankato, MN

University of Minnesota – Minneapolis, MN

Other

Growing up frequently re-locating throughout the country (living in 24+ homes) – gave

Jennifer an early exposure to the world of real estate. Both grandfathers and father

were commercial and residential builders – so the draw to the industry may be

hereditary!

Before Real Estate, Jennifer spent over ten years in the luxury retail industry as a

fragrance and cosmetic buyer. She has lived in the Minnetonka area for the past 25+

years and recently relocated to SW Minneapolis. Personal interests include spending

time with her husband Curt and three grown children, yoga, traveling, and cooking.

Jennifer Carpenter

Direct: 612-924-7152

Mobile: 612-242-5729

[email protected]

Janelle Mattson

Realtor

New Construction Specialist


Janelle brings energy, creativity and over 15 years of sales and

marketing experience. With a passion for new construction, she

works with clients hand-in-hand, skillfully guiding them through

the entire process from beginning to end while ensuring a fun,

positive, experience.

Education

Licensed Minnesota Realtor 2010-Present

University of Minnesota, Twin Cities – Bachelor of Arts Degree in Journalism with an emphasis

on Public Relations, Advertising and Marketing


Coldwell Banker Burnet – Licensed realtor for the Wille Group. Effectively work with buyers &

sellers while providing a full concierge-style service throughout the process and beyond.

Ridge Creek Custom Homes – Director of Sales & Marketing. Guides agents and buyers

throughout the entire home building process to ensure a smooth, seamless experience. She

also oversees various marketing efforts including the website, social media & home tours.

Involved in land acquisition and the overall process of building & marketing model homes.

Pulte Homes – Sales Consultant. Worked with buyers & agents in a specific new home

community of the Twin Cities throughout the build process.

Cambria – Market Representative. Acted as a product liaison with a variety of industry-

related clients including builders, remodelers and cabinet designers.

Midwest Home Magazine & Twin Cities Luxury Home Tour – Sales Representative. Networked

and worked with several local builders, remodelers, designers and showrooms to market their

products and services in their magazine, the Fall Home & Garden Show and Luxury Home

Tour.

Other

Janelle has always had a love for the housing industry and all things home and garden (HGTV

is always on in her home!). Outside the job site & real estate office she enjoys spending time

with her two sweet boys, relaxing with a good cup of coffee, traveling and staying active.

Janelle Mattson

Mobile: 612-387-8885

[email protected]

About Us – The Wille Group

The Wille Group Methodology for Professional Real Estate Services

A significant percentage of revenue is invested in advertising our clients’ properties

to build awareness and attract buyers.

An exclusive list of over 5,000 of the most affluent residents in the Twin Cities metro

area is actively maintained in order to present all new listings to a potential high-

income client database.

Extensive experience with appraisals and market analysis allows us to establish the

ideal price in order to achieve the maximum number of offers.

Unique home inspection training helps identify items that should be corrected

before listing your home, eliminating missed sale opportunities.

Proven techniques sell your home at the maximum price:

- Conduct pre-list networking which frequently generates multiple offers

- Mail promotional materials to neighbors and surrounding properties

- Advertise in local papers and magazines, premium positioning online

Impeccable attention-to-detail in completing required forms and MLS listings.

Experience dealing with multiple-offer situations — with a trained negotiator that

can maximize offers and gain agreements on other important issues.

Qualify all serious buyers — ensuring that all accepted Purchase Agreements result in

closings.

Follow-up with buyer’s mortgage banker and title company ensure smooth closings.

Michael J. Wille: Broker, Executive Realtor, Accredited Relocation Specialist, Distinctive

Homes Division

Joshua W. Zuehlke: Executive Realtor, Distinctive Homes Division

Jennifer Carpenter: Realtor, Business Manager

Gavin Berg: Realtor, Assistant to Josh Zuehlke

Janelle Mattson: Realtor, New Construction

http://www.willegroup.com/about-us/michael-j-wille/

http://www.willegroup.com/about-us/joshua-w-zuehlke/

http://www.willegroup.com/about-us/jennifer-carpenter/

http://www.willegroup.com/about-us/gavin-berg/

http://www.willegroup.com/about-us/janelle-mattson/

Client Testimonials “We found Josh to be the consummate professional - great knowledge of the market, excellent follow-through, creative problem-solving, astute listener...and all combined with a friendly, warmhearted and upbeat demeanor. We highly recommend Josh and his team to anyone seeking a satisfying, positive and successful real estate experience.” -John & Diane R. "Thanks Josh. "You rock"! and I appreciate all of your hard work. I wouldn't hesitate to recommend you to people who may be looking for a top real estate agent. This house was a very unique and you got it sold!" -Jeff W. "Josh Zuehlke has our highest recommendation. We hired Josh to handle the sale of our home after we had tried unsuccessfully to sell it through another broker. The sale of our home was a complicated transaction involving multiple parties during a very difficult market. “Josh was a bright, consummate professional every step of the way. He supplied us with good information on market conditions, cultivated good relationships with other parties involved in the transaction, and handled the negotiations with finesse. He had great attention to detail and follow-through. “We couldn't have been more pleased with our decision to hire Josh, and have no hesitations in recommending him." -Anna & Bob “Choosing Josh to guide the process of selling the family home was guided by three objectives. 1) The correct company. The Coldwell Banker Burnet Lakes office was the clear standout in leading the market in the Minneapolis Lakes area. 2) The right group. The Willie Group represents the upper bracket of the market and holds a strong steadfast position as a leader in this market segment. Most importantly this leadership position is 11 years in the making ... a very important consideration. 3) The best agent. Josh Zuehlke has established himself as one of the most active and successful agents among his pier group. When interviewing, Josh arrived armed with all relevant data needed to establish the go forward plan which enabled frank direct discussion. The price range was discussed along with the advantages and drawbacks of each position within the range. After the price was set Josh managed the details connected with the marketing, showing, sale and closing of the property. We have referred Josh three times since our closing and each time we received glowing reports. We are not that easy to please, we expect a lot from a professional and Josh delivered in every respect.” -Jeff & Brenda L. “We had a very specific idea of what we wanted in a home, but were overwhelmed and uneducated about the process. After being introduced to Josh Zuehlke we were soon at ease. We realized that finding the place that we dreamed of was not only possible, but that the search was going to be enjoyable as well. Our circumstances in buying were uncertain and difficult. Josh was very personable and up-front, always suggesting possibilities and carrying through in the very best of our interest. With the help and hard work of Josh, we own a wonderful home. We will always put our trust in Josh Zuehlke and the rest of the Wille Group at Coldwell Banker Burnett with our real estate needs.” -Shane F. & Bryan S. “Thank you so much for you assistance with our first time home buying experience. It was truly a please working with you. -Dylan F. & Jennifer L. “As a first-time homebuyer, the process of finding and purchasing property can be extremely intimidating. When we met Josh Zuehlke, those jitters were instantly relieved. Josh was attentive, very knowledgeable, honest, and made us feel like he had known us for years. We could not have asked for a better experience for our first purchase, and highly recommend Josh for any realty needs.” -Erik and Kelly T.

PREVIEWS® - DISTINCTIVE HOMES®

The luxury division of Coldwell Banker Burnet owns the upper bracket with leading market share at these price points

55.9%$2,000,000+

44.5%$1,000,000+

43.3%$900,000+

40.7%$800,000+

38%$700,000+

34.6%$600,000+

30.8%$500,000+

Source: Based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC. representing dollar volume of properties sold/closed in the 13 County Twin Cities metropolitan area for the period January 1, 2014 through December 31, 2014. While this data is deemed to be accurate, neither RMLS, Inc. nor any other affiliated agency guarantees or is responsible for its accuracy. This data may or may not reflect all real estate activity in the marketplace.

©2015 Burnet Realty LLC. All Rights Reserved. Coldwell Banker Burnet fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker, the Coldwell Banker Logo, Coldwell Banker Previews International, the Coldwell Banker Previews International logo and “Dedicated to Luxury Real Estate” are registered and unregistered service marks owned by Coldwell Banker Real Estate LLC. Real estate agents

affiliated with Coldwell Banker Burnet are independent contractor sales associates and are not employees of Coldwell Banker Burnet.

Start

THE HOME SELLING PROCESS

We help with all the paperwork and details

©2015 Burnet Realty LLC. All Rights Reserved. Coldwell Banker Burnet fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC. Real estate agents affiliated with Coldwell Banker Burnet are independent contractor sales associates and are not employees of Coldwell Banker Burnet.

Start

Implement a personalized

marketing plan

Prepare your property for sale

Show to potential buyers

Get showing feedback and make adjustment

Begin closing process

Assist with mortgage process

Assist with inspection process

Assist with title process

Evaluate your needs

Set the right price

Determine time frame

Signdisclosures

Receive offers Negotiate offers Accept offer Sign contract

Finalwalk-through

Assemble all documents and attend closing

Proceeds check delivered

to you

Property Sold

BEST PRICE OBTAINABLEWe will help you determine the most effective list price for your property and provide

information on controllable factors of the sale

Buyers Compare PropertiesHome buyers engage in comparison shopping.

Recently Sold Market DataReveals what buyers have actually paid for similar properties.

Currently for SaleShows properties competing for buyers’ attention right now.

Did Not SellDemonstrates what buyers have not been willing to pay under current market conditions.


THE RIGHT PRICE FOR YOUR HOME

We can serve you best by determining the current market value of your home

A home priced at its market value has a 95% chance of being sold within a reasonable marketing

period. The higher its price in relation to other similar properties currently being marketed, the

less the probability of its sale. The initial exposure gets the most attention! Homes listed above

market value attract the wrong prospects and help sell other homes. Buyers are often hesitant

to buy homes which have had a long period of exposure to the marketplace, fearful that there is

something wrong with them. Ultimately, the selling price of your home will be set by the market.

At RealisticMarket Value

Above RealisticMarket Value


SETTING THE RIGHT PRICEThe price of your house must attract enough attention among buyers and

brokers to generate showings and offers

The property appeals to:

10% of the market

30% of the market

60% of the market

75% of the market

If the asking price is:

15% over market value

10% over market value

Fair market value

10% under market value


TIME/ACTIVITY RATIOPricing your property competitively from the start will generate the most activity among brokers and buyers

A property generates the most interest among brokers and buyers when it first goes on

the market.

The number of showings is greatest during this time – if it is priced at realistic market value.

Starting too high and dropping the price misses the excitement and fails to generate as

much activity.

It may even become necessary to drop the price below market value to compete with new, well

priced listings.

If the asking price is:

1 2 3 4 5 6 7


-6.1%

$237,326

All Re/MaxBrokers

AVERAGE SALE PRICE COMPARISON

Coldwell Banker Burnet leads the market with the highest average sale price, more than 26% ahead of the overall market

-8.3%

$231,593

All OtherBrokers

$252,621

All Brokers

+5.3%

$266,128

EdinaRealty

+26.4%

$319,194

ColdwellBanker Burnet

Source: Based on 13 county Twin Cities metro area average sale price information for single family, condo and townhome seller side transactions from REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC. FOR THE PERIOD Jan 1, 2014 to Dec. 31, 2014. While this data is deemed to be accurate, neither the RMLS, Inc. nor any other affiliated agency guarantees or is responsible for its accuracy. This data may not reflect all real estate activity in the marketplace. REV: 2/15


MARKETING YOUR PROPERTYMaximizing your reach to potential buyers

Realtor.com


ARTFUL LIVINGAn exclusive marketing partnership with the #1 preferred magazine in the North


Source: 2015 Readership Study conducted by the University of St. Thomas Opus College of Business

SPRING 2016

Artful Living is an elegant, intelligent publication highlighting culture, travel, style, home, adventure,

food, drink and profiles meant to inspire and entertain. Published quarterly and distributed via

direct mail and newsstands, this popular magazine has a total circulation of 52,000. Artful Living

features beautiful design and engaging original content, while appealing to an affluent audience.

CBBurnet.comReceives visitors from over 219 countries, with approximately 41% coming from a mobile device.1

ColdwellBanker.comOver 1.1 million potential buyers2 and innovative mobile search platforms.

ColdwellBankerPreviews.com (Minimum price point $750,000)Exclusively features exceptional home inventory that attract upper-bracket buyers.

Realtor.com (Enhanced Listings), RealEstate.AOL.com and RealEstate.MSN.comThe average visitor spends 27 minutes and viewed 22 pages while searching on Realtor.com.3

Trulia.com (Featured Listings)55 million homebuyers, sellers, owners and renters4 come to Trulia each month.

Yahoo.com and Zillow.com (Featured Listings)The largest real estate network on the web,5 74 million monthly unique users.6

WSJ.com (Minimum price point $500,000)Provider of business and financial news and analysis on the web. The average visitor to

WSJ.com spends 19.5 minutes, and views 5 pages.7

HomeFinder.comAttracts an average of 900,000 monthly home shoppers.8

NYTimes.comWith over 28 million unique visitors each month, NYTimes.com is the #1 individual newspaper site

in the U.S.9

Homes.comMore than 4.2 million unique consumers visit Homes.com every month to search for real estate.10

UniqueHomes.com (Minimum price point $500,000)Commands an audience of over 300,000 monthly visitors from over 150 countries.11

RobbReport.com (Minimum price point $500,000)Reaches over 145,000 affluent users each month.12

HotPads.com (Over $500,000 active rentals, 3.5 million for sale listings)With a unique map based search users have a great platform to share housing information.

THE INTERNETAS A MARKETING TOOL

Coldwell Banker Burnet has built, brokered, and bought some of the Internet’s most valuable online real estate for the marketing of your home

1Google Analytics, January-December 2014; 2Compete.com, January-December 2014; 3Realtor.com, August 2014; 4Trulia.com; 5ComScore, 2014; 6Zillow, November 2014; 7Compete.com, December 2014; 8Compete.com, January-December 2014; 9NYTimes.com, September 2014; 10Compete.com, January-December 2014; 11Uniquehomesnetwork.com, January 2015; 12RobbReport.com, January 2014.


POWERFUL MARKETING PARTNERS

Coldwell Banker Burnet has the online distribution to expose your home to more buyers

In addition to our powerful network of more than 600 websites, your property will enjoy featured

positioning on the above nine real estate websites. Today, 92% of homebuyers begin their search

online, and through our exclusive partnership with these websites:*

• Your home, with a detailed description and multiple photos, will be seen three times

more often than it would without this enhancement

• Your home will receive at least 50% more leads**

• Leads are routed directly to your sales associate’s work phone for immediate response

Coldwell Banker Burnet is the only real estate brokerage to offer this exclusive online marketing

strategy.

Source: HomeBase intouch August 2014 – January 2015* NAR 2014 Profile of Homebuyers and Sellers

** Based on a review of Realtor.com over the last several years

800

600

400

200

0

Aug-14 Oct-14 Nov-14 Dec-14 Jan-15Sept-14

Lead

s

1000

includes


GLOSSARY OF REAL ESTATE TERMS

Addendum - An addition to the contract that must be signed by both parties to be binding.

Amortization - The payment of a financial obligation on an installment basis.

Amortized Loan is a loan that is completely paid off, interest and principal rather than interest-only, by a series of regular payments that are equal or nearly equal.

Annual Percentage Rate (ARP)- The total amount of the finance charge - including interest, points and all loan fees (i.e. escrow, processing, etc.) - calculated as a percentage of the borrowed amount and expressed as a yearly rate.

Application Fee - This is a fee that may be charged by the lender to cover the costs of processing your loan application.

Appraisal - The professional examination of property for the purpose of estimating its current market value.

Appreciation - The increase in value of a property due to any cause.

Appurtenance - That which “runs with the land”; anything incident to or attached to the land that is part of the property.

Assessed Value - The value placed upon a property for property tax purposes.

Assignment - The transfer over to another the whole of any property, real or personal, in possession or in action, or any right or estate therein. ASSIGNEE is the person receiving the right or property. ASSIGNOR is the owner of the right or property, which is being transferred to another.

Assignor - is the owner of the right or property, which is being transferred to another.

Assumption of a Mortgage - A buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (typically the seller) from liability. Not all loans or loan terms are “assumable”.

Attorney in Fact - A person holding power of attorney from another.

Balloon Payment - Any payment on a note that is greater than the smallest installment payment. A lump sum principal payment due at the end of some mortgages or other long-term loans.

Beneficiary - The inheritor of a trust. The lender on a note and trust deed transaction.

Beneficiary Statement - Statement of a lender, giving the remaining principal balance and other information regarding the loan. Usually obtained when an owner wishes to sell or refinance.

Binder - Written evidence of insurance which covers a limited time; to be replaced later with a permanent policy.

Bundle of Rights - The law designates the rights that accompany ownership to real property as the bundle of rights. The right to own, possess, use, enjoy, encumber, dispose of, and exclude those who do not share ownership of real property.

Buydown - A permanent buydown is prepaid interest that brings the note rate down to a lower permanent rate. A temporary buydown is prepaid interest that lowers the note rate temporarily on the loan, allowing the buyer to more readily qualify and increase payments as income grows.

Buyer Agent - Agent acts solely on the buyer’s behalf. The Agent has full fiduciary responsibilities, which include reasonable care, individual loyalty, confidentiality and full disclosure. This means the agent places the buyer’s interest above all else.

Called Loan - A loan that is due and payable at the demand of the lender.

Cap - The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage.

Capital Gain - The gain received on the sale of real or personal property, other than property sold as stock-in-trade.

Capitalization - In appraising, determining value of property by considering net income and a percentage of reasonable return on the investment. The conversion of income into value.

...continued



Capitalization Rate - Any rate used to capitalize income.

Chain of Title - A history of all of the documents transferring title to a parcel of real estate, beginning when it originally came from the government to a private owner, through the latest document transferring title.

Chattel - An item of personal property.

Chattel Real - A personal property right in real estate, such as a lease.

Closing - The same as Close of Escrow or COE. The final procedure in a real estate transaction. This is the day the new owner can take possession of the house and actually owns it.

Closing Service Network - A network of experienced Real Estate Attorneys who provide efficient, reliable and responsive representation for homebuyers and sellers.

Closing Statement - (HUD-1 Statement)The financial disclosure statement prepared by the escrow holder (attorney, broker, escrow company, or lender) that accounts for all of the funds received and expected at closing, including deposits for taxes, hazard insurance and mortgage insurance.

Cloud on Title- Any condition that affects the clear title of real property.

Commission - An amount paid by the seller to the listing and selling agent for handling the real estate transaction.

Community Property - Property acquired by husband and wife during marriage, when not acquired as separate property.

Comparative Analysis - A method of appraisal in which selling prices of similar properties are used as the basis for arriving at the value estimate (a.k.a. the Market Data Approach).

Compound Interest - Interest paid on original principal and on the accrued and unpaid interest, which has accumulated.

Concierge Service - The Coldwell Banker Concierge® Service is a resource to help buyers and sellers find the service providers need before, during and after the sale or purchase of a home.

Condition - A stipulation or qualification in the deed which, if violated or not performed, defeats the deed and places the title back in the hands of the original grantor.

Condominium - A form of real estate ownership in which the owner receives exclusive title to a particular unit and shares ownership in certain common areas with other unit owners. The unit itself is generally a separately owned space whose interior surface (walls, floors and ceiling) serves as its boundaries.

Consideration - Anything of value given to induce another to enter into a contract including money, service or a promise. This is essential to a valid contract.

Contingency - A condition that must be satisfied before a contract is binding. For example, a sales agreement or offer may be contingent upon the buyer obtaining financing.

Contingency Removal - Must be signed by the buyer to remove any contingency and create a binding contract.

Contract - A deliberate agreement, based upon legal consideration, between two or more parties who have legal capacity, to perform a legal act. A binding promise.

Conventional Loan - A loan that is not underwritten by a government agency.

Conveyance - 1) The transfer of a title. 2) The document, such as a deed, by which the title is officially transferred.

Co-Op - (Co-operative housing) A form of multiple ownership in which a corporation or business trust entity (made up of the occupants) holds title to a property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements. As such, no real property is owned by the individuals, only shares in the corporation allocated to particular apartments.

Convenant - A clause in a contract; an agreement contained in a deed for the performance or non-performance of certain acts.

Curable Depreciation - Items of physical deterioration and functional obsolescence that can be repaired or replaced by a prudent property owner.

...continued



...continued

Debt Ratio - The comparison of a buyer’s housing costs to gross or net effective income.

Deed - A document which, when properly executed, conveys title of real property.

Deferred Payment - A payment under which the total balance of principal and an amount for finance charge is put off until the future. This balance is paid by means of installments over a long period.

Depreciation - As used in appraisal, loss in value due to any cause. As used in taxation, a capital cost recovery out of income.

Disclosure - To make known or public. By law, a seller of real property must disclose facts that affect the value or desirability of the property. Unless exempt, the seller completes and signs specific disclosure forms, including the Real Estate Transfer Disclosure Statement, to disclose those material facts.

Disclosed Dual Agent - When an agent shows properties that are listed with Coldwell Banker, or if Coldwell Banker is representing more than one buyer on a particular property, the Coldwell Banker agent then becomes a disclosed dual. The agent will not be able to disclose confidential information to either party, such as price, terms or motivation to sell or buy. The dual agent must treat all parties fairly, act in good faith and disclose all appropriate property facts.

Discount Points - A negotiable fee paid to the lender to secure financing to the buyer. Discount points are interest charges paid up-front to reduce the interest rate on the loan over the life or a portion of the term.

Documentary Transfer Tax - A method of taxing real property transfers. State law requires that a tax be paid prior to recording a deed.

Earnest Money - The portion of the down payment delivered to the seller or escrow agent by the purchaser with a written offer as evidence of good faith.

Easement - A right to use all or part of the land owned by another.

Effective Age - Age of a structure as estimated by its condition rather than actual age. Takes into account rehabilitation and maintenance.

Egress - As applied to an easement, a way out or exit.

Encumbrance - Anything that affects or limits the ownership of real property, such as mortgages, liens, easements, or restrictions of any kind.

Equity - The difference between what is owed and the amount for which the property could be sold.

Escrow - The temporary holding by a third neutral party of deposited money pending completion of agreed terms in the sales contract. This third party acts as stakeholder for both parties’ instructions and assuming responsibility for the handling of all paperwork and distribution of funds.

Escrow Fees - The fee that the title company (the third party) charges for doing the paper work involved.

Estate - The ownership interest of a person in real property; also used to refer to the property left by a deceased person.

Exclusive Agency Listing - A written instrument giving one agent the “authorization to sell” property for a specified time, but reserving the right to collect a commission if the property is sold by anyone during the term of the listing.

Executed - A contract that has been fully performed.

Extended Coverage - A form of title insurance that is available to homeowners.

FHA Loan - (Federal Home Loan Mortgage Corp.-FHLMC) Often referred to as “Freddie Mac”, a part of the secondary market and used to purchase loans from savings and loan lenders within the Federal Home Loan Bank Board.

Federal National Mortgage Association (FNMA) - Popularly known as “Fannie Mae”, a privately owned corporation formed by the congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by FHA or guaranteed by the VA, as well as conventional home mortgages.


Fee Simple - An estate in which the owner has unrestricted power to dispose of the property as he or she wishes, including leaving by will or inheritance.

Fiduciary - A person holding a position of trust; agents, trustees, attorneys, etc.

Finance Charge - The total cost that a borrower must pay (directly or indirectly) to obtain credit according to Regulation Z, the set of rules governing consumer lending issued by the Federal Reserve Board.

Financial Statement - A statement in writing often required of a borrower of money from a bank, stating fully all of the borrower’s assets, liabilities and net worth.

Fixed Expenses - The regular recurring costs or charges required in the holding of a property, such as taxes and fire insurance.

Fixed Rate Mortgage - A conventional loan with the same interest rate for the life of the loan.

Fixture - Personal property that is attached to real property and is legally treated as real property when its attached-such as light fixtures and window treatments.

Fully Indexed Rate - The maximum interest rate on an ARM that can be reached at the first adjustment.

Functional Obsolescence - A loss of value due to out-of-date, old-fashioned or poorly designed equipment; a type of depreciation.

Gift Letter - A letter from a relative stating that an amount will be gifted to the buyer, and that said amount is not to be repaid.

Government National Mortgage (GNMA) - Known as “Ginnie Mae”, a governmental part of the secondary market that deals primarily with recycling VA and FHA mortgages, particularly those that are highly leveraged.

Grant Deed - Customary document used to transfer title to real property; contains two implied warranties.

Grantee - Receiver of the title being granted.

Grantor - Owner of title being granted; the person who makes the grant.

Guarantee of Title- A guarantee by an abstract company or title company that the title is vested as shown on the guarantee, backed only by the assets or reserves of the guarantor.

Hazard Insurance - Insurance protection for the borrower and lender against property loss due to fire, wind or natural hazards.

Home Inspection Service - A qualified inspector’s report on the overall condition of a property. The report typically includes an evaluation of both the structure and mechanical systems.

Home Warranty Plan - Protection against failure of mechanical systems within the property, and usually includes plumping, electrical, heating and cooling systems, and installed appliances.

Homeowner’s Association (HOA) - An organized group of homeowners whose members help to regulate and enforce the rules and standards of their respective communities.

Impound Account - An account held by the lender for payment of taxes, insurance and other periodic debts against a property. The borrower pays an apportioned amount with each monthly loan payment and the lender pays the bills with the accumulated funds.

Indemnify - To secure against hurt, loss or damage; to make compensation to for hurt, loss or damage.

Index - A measure of interest rate changes used to determine changes in an ARM’s interest rate over the term of the loan.

Interest Rate - The percentage of a sum of money charged for its use.

Involuntary Lien - A lien imposed against property by operation of law without the consent of the owner, such as a tax lien, judgment lien or mechanic’s lien.

Joint Tenancy - An equal, undivided ownership of property by two or more persons. Upon the death of any owner, the survivors take the descendant’s interest in the property.

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Jumbo Loan - Mortgage loan that exceeds the loan amount acceptable for sale in the secondary market. Jumbos are packaged and sold differently to investors, and have separate underwriting guidelines.

Lien - A legal hold or claim on a property as security for a debt or charge. It can be voluntary such as a mortgage or involuntary such as for back taxes.

List-To-Sale Ratio - The ratio between the price at which a property is listed and the amount for what it is actually sold.

Loan Commitment - A written promise to make a loan for a specified amount on specific terms.

Loan Origination Fee - A fee charged by the lender for Evaluating, preparing, and submitting a proposed mortgage loan.

Loan-To-Value (LTV) Ratio - The amount of the loan as a percentage of the property’s appraised value. An 80% loan, for example, is determined by subtracting a 20% down payment from the property’s appraised value.

Lock-In - The fixing of an interest rate or points at a certain level during the loan application process. It is typically fixed for a specified amount of time, such as 20-30 days or some other period of time determined by the lender.

Margin - The number of percentage points the lender adds to the index to calculate the ARM interest rate at each adjustment. For example, an index rate of 8% plus a margin of 2.5% could result in a home loan rate of 10.5%. The fixed margin over the index covers the lender’s operating expenses and profit margin.

Market Value - The current value of real estate that a buyer is willing to pay and a seller is willing to accept.

Marketable Title - Title to property that is free of objectionable encumbrances and liens.

Mechanic’s Lien - A statutory lien on a specific property for labor or materials contributed to a work of improvement.

Moratorium - A temporary suspension, as in the payment of a debt.

Mortgage (Deed of Trust) - A legal document between the lender and borrower providing security for and stipulating the terms of repayment of a loan for a specific property.

Mortgage Insurace Premium (MIP) - The mortgage insurance required on FHA loans for the life of said loan.

Multiple Listing Service (MLS) - The pooling in a central bureau of all properties listed for sale. Listings are held individually by members of a group of real estate brokers, with the agreement that any member may sell the property and the commission will be divided between the listing and selling broker.

Negative Amortization - Monthly payments fail to cover the cost of the interest on a loan, which is then added to the principal balance. As a result, a borrower could owe more than at the beginning of the loan even after making several payments.

Offset Statement - Statement of owner setting forth the present status of title and all liens against the property.

Option - A right given to a person to buy, sell or lease property within a stated period and under certain specified terms. A contract to keep an offer open.

Optionee receives an option.

Optionor owns the title who gives an option.

Payment Cap - This cap places an annual limit on the amount that a monthly payment can increase. This feature is offered by some ARM lenders instead of an annual interest rate cap.

PITI - The term for a mortgage payment that includes principal (P), interest (I), taxes (T), and insurance (I).

Planned Unit Development (PUD) - A zoning designation for property developed at the same or slightly higher density than conventional development, often with improvements clustered between open or common areas.

Point(s) - An amount equal to one percent of the principal loan amount. For example, two points equal 2% of the amount.


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Power of Sale Clause - A clause in a trust deed that gives the trustee the right to sell borrower’s property publicly, without court procedure, if the borrower defaults on the loan.

Prepaid Interest - Interest paid before accrued.

Prepayment Penalty - A fee charged to a borrower who pays a loan in full before the stated due date.

Private Mortgage Insurance (PMI) - Insurance written by private companies to protect a lender against loss if the borrower defaults on a mortgage. PMI is often required on mortgage loans with less than 20% down payment.

Promissory Note - A written contract containing a promise to pay a definite amount of money at a definite future time. The evidence of a debt.

Prorate - To divide proportionally to time or use.

Purchase Agreement - A written document in which the purchaser agrees to buy a certain real estate and the seller agrees to sell under stated terms and conditions. May also be called a sales contract, earnest money contract, or agreement for sales.

Quickclaim Deed - A deed used to transfer any interest in real property that the grantor may have. It contains no warranties of any kind.

Rate Cap - The rate cap defines rate limits, either from one adjustment period to the next or over the life of the loan.

Rate Gap - The difference between the current rate and the rate to which it could adjust on an ARM.

Ratify - The agreement of both the buyer and seller to the terms offered in the real estate contract.

Real Estate Agent (Realtor) - A person licensed by the state who represents a broker in real estate transactions.

Real Property - Land, that which is affixed to the land, incidental or appurtenant to land and that which is immovable by law.

Real Estate Transfer Disclosure Statement - This must be provided by the seller, listing any known defect or problem with the house. Both agents must reveal anything they know that might be a problem with the property. See also DISCLOSURE.

Recording Fees - Charged by the County or Town Clerk to record documents in public records. May be included in the borrower’s closing costs.

Recurring Costs - Expenses that the buyer can expect again, year after year, such as property taxes, fire insurance, earthquake insurance, interest.

Refinance - The securing of a new loan either to pay off an existing lien or mortgage on the property, or to access your equity.

Rescind - To cancel a contract from the beginning, restoring the parties to their original positions. Referred to as an annulment.

Sales Associate (Agent) - A person who for compensation or expectation of compensation acts for another in a real estate or related transaction. A real estate license is required, and individual for a real estate broker.

Sale-Leaseback - A transaction in which at the time of sale the seller retains occupancy by concurrently agreeing to lease the property from the purchaser. The seller receives cash while the buyer is assured a tenant and a fixed return on the buyer’s investment.

Secondary Mortgage - Market place for the sale and purchase of existing trust deeds and mortgages.

Seller’s Agent - Agent acts solely on the sellers’ behalf. Agent has full fiduciary responsibilities that include reasonable care, undivided loyalty, confidentiality, and full disclosure. This means the agent places the sellers’ interest above all else.

Settlement - See “Closing.”

Subordination Clause - A clause in a junior lien permitting retention of priority for prior liens OR it may be used in a first deed of trust permitting it to be subordinated to subsequent liens as, for example, the liens of construction loans.

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Survey - This may be required by the title company to insure that the house is properly situated on the property.

Tenement - All rights in land that pass with a conveyance of the land.

Tenancy in Common - A type of joint ownership of property by two or more persons with no right of survivorship.

Title - The rights of ownership recognized and protected by law. A combination of all elements that constitute the highest legal right to own, possess, use, control, enjoy, transfer, and dispose of real estate. A title spells out who has the right of ownership of a property.

Title Company - The company that issues Title Insurance and employs the escrow officer.

Title Insurance Policy - A clear title has no liens or claims against it. This policy protects the purchaser, mortgagee, or other party against defects or losses associated with the title.

Townhouse - Architectural term for a two or more story unit with no units above or below, but with one or more shared walls. Ownership may be in the form of condominium, planned unit development or stock cooperative.

Trustee - The third person that holds legal title to property for a special purpose without being the actual owner. A trustee is one of the parties to every trust deed.

Underwriting - These are standards set by the lender which the borrower must meet in order to qualify for the loan.

Usury - Charging interest in excess of the maximum rate as set by law.

VA Loan - A loan made by a private lender that is partially guaranteed by the Veterans Administration.

Vesting - Conveying ownership.

Waiver - The intentional or voluntary relinquishment of a known right, essentially a unilateral act.

Wood Destroying Pest and Organism Inspection - An inspection identifying existing or potential pest, dry rot, fungus, and other structure-threatening infestation or conditions. Sometimes referred to as “termite inspection.”

Zoning - Laws passed


Documents

Josh Zuehlke - The Wille Group Seller Guide