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2. Weare very excited and look forward to assisting you in finding a home in the greater Jacksonville area. We love it here and we know you will too! Please take the time to look through our Exclusive Buyers Packet. You are about to embark on the exciting journey of finding your ideal home! Whether it is your first home or your tenth, a retirement home, or an investment property, we will make your home buying experience fun and exciting. We can help you find the ideal home with the least amount of hassle and we are devoted to using our expertise and the full resources of our office to achieve these results! We plan to make sure you are well equipped and armed with up-to-date information for your big decision. We are prepared to guide you through every phase of the home-buying process. This packet was designed to equip you with all the necessary information to ensure a successful buying experience. Please keep this packet with you during your home-buying process. We truly believe that an educated consumer is the very best customer to serve. Lets start our exciting journey together! We look forward to meeting your real estate needs every step of the way! Warmest Regards, Kim Knapp, CEO/Realtor Coldwell Banker Vanguard Buying with Team Knapp 3. It is probably the biggest purchase your family will ever make, and it involves many important decisions. Our responsibility is to guide you through the entire process, from identifying the right homes to view based on your parameters, financing, negotiations, terms, inspections, repairs and ultimately, making sure the final outcome is in your best interest. Team Knapp brings matchless experience, knowledge and a true desire to help our customers get the most out of there purchase. Being one of Northeast Floridas Leading Realtors came by satisfying one customer at a time. We would love to compete for your business! Kim Knapp, CEO/Realtor Teamk Knapp Coldwell Banker Vanguard Founder Real Dynamic Agents & Real Giving Project Team Knapp Philosophy To Whom It May Concern: I am writing this letter to advise you of how pleased I am with Kim and her team. Kim is the epitome of professionalism in real estate transactions, and dili- gently ensures that Buyers and Sellers are treated with respect and fairness. Mrs. Knapp is tireless in her efforts to ensure a smooth closing and her positive can-do spirit gets results. Please pass this information on to potential clients as I want them to know that Team Knapp is one of the top of the crop in real estate. Thomas C. Santoro Attorney at Law 4. Born and raised in the Midwest (Danville, Illinois) I learned hard work at a young age. Being the oldest of 6 children learning to be responsible was not an option. At the same time growing up in a small town my memories are grand. Great friends and great times. When I moved to Upstate NY I met my husband of 21 years working for Delco. We both worked there until it was time for Tom to retire and here we are, sunny Florida! With the help of a team I have built a remarkable referral base and created innovative outreach programs in the community that encourage a symbiotic relationship between the real estate community and the neighborhoods they serve. These efforts have helped land the team in the top ten REALTORS in Jacksonville year after year. From the very first year I was blessed to be a top producer . What did I learn? That old fashioned hard work, networking with fellow professionals and most importantly - remembering that if my customers had a remarkable experience they would refer me to friends and family is what makes a real estate professional successful. Welcome to the wonderful world of real estate! This is a very exciting time and we want you to feel comfortable and knowledgeable throughout the entire process. I will listen to your needs, keep you informed, help you through the negotiation process, and ensure you achieve the most marketable price for your home. I welcome you to communicate your feelings to me. After closing I will still be there to assist you if needed. Thank you for choosing Team Knapp to help you with one of your most valuable assets! We hope you will be so pleased with the experience that you will want to refer us to your friends and family! Kim Knapp CEO/Realtor Kim@TeamKnapp.com 904.334.7425 About Kim... 5. Meet My Team As a top Realtor, I dont work alone! I have a whole team of people working with me that have your best interests at heart! Sara Galloway Personal Assistant / Office Manager Sara@TeamKnapp.com 904.637.0285 Sara has been with Team Knapp for over 8 years. An active duty Navy wife, Sara appreciates the definition of the word relocate. A mother of 3 and having survived several deployments, Sara adds a wealth of knowledge and understanding to the team. A background of working in Attorneys offices Sara knows the ins and out of getting a job done. From start to finish with her task oriented strengths Sara makes sure that each seller is taken care of and every effort is made to meet the customers needs. Regina (Regi) Kloosterman Marketing Coordination Specialist Regina@TeamKnapp.com 904.637.0377 Regi has been in the real estate industry in one form or another since 1996 and is on top of the latest technology. As Team Knapps Listing Services & Marketing Coordinator, Regi keeps all the little details straight for the listings. She creates the marketing materials for our team, performs database management and takes on special projects as needed. Showing Desk Coordinators The Coldwell Banker Vanguard staff is available 7 days a week to schedule showings on your home. Judy Rountree Contract to Close JudyR@vanguardcb.com 904.637.0896 Judy has been with Coldwell Banker since 2002 and attended Real Estate School in both Florida & Georgia. She knows just what it takes to assist you in getting to the closing table! When Judy isnt at the office she enjoys spending time with her wonderful family which includes her husband, 3 children & 2 grandchildren who are her passion along with her dog, Millie & silly Siamese cat, Dexter. Judy also enjoys working in the nursery at her church as well as other volunteer work there. 6. Less than 4% of all Real Estate Agents worldwide are CRS designated Kim Knapp, REALTOR, CRS 904.334.7425 Kim@TeamKnapp.com 7. Buying real estate is a complex matter at the best of times, given that there are so many factors to consider and no two homes or transactions are alike. However, with all the unique opportunities and potential pitfalls of the current market, its even more important for you to choose a Realtor that can guide you through the property search, financing, negotiation and transaction processes, who knows the local market and has the experience and track record to back it up. Choose one of the Top Agents in the Country. Kim Knapp was named one of the top 1000 National Agents, by the Wall Street Journal and REAL Trends ~ Best Real Estate Agents in America in the 2013 national ranking report produced by Real Trend and has been nominated for the 2014 report. "I am very honored to be on this list. It really represents the attention we place on customer service. You cannot achieve the consistent level of sales we have over the years without a customer focused business." 8. Our initial consultation View and evaluate properties Determine offer price Decide on financing and terms Complete the settlement pro- cess Deposit earnest money Obtain inspections Arrange insurance Sign documents Record title Receive keys Obtain financing Consult with loan officer Complete loan application Obtain pre-approval Obtain property appraisal Loan processing Final loan approval The Home Buying Process The home buying process typically includes the following steps. 9. Your financing is in order, your agent knows what you are looking for, now its time to go shopping. Here are some good and not so good ideas when looking at homes. Appointments need to be made with as much advance notice as possible. This helps the seller get the home prepared for your arrival. Your agent should provide you with a detail sheet on each listing. Take a notebook and camera if you like. However do not take notes and pictures on every house. If you know you would not consider buying a particular home, it can be confusing to collect information on it that you will not need later. It only gets tangled with all the information on the homes you do like. Walk through the home and determine how it feels before you begin taking any notes. Its important that you see and feel the house first. If you are working on filling out a checklist or taking notes, its like watching a baseball game through a video camera, you feel like you missed it After your tour of each home, determine if you were/are writing an offer today, would that home be in the running. If not, discard the detail sheet. This will help you keep the homes you like in order. When touring a home, take note of the lot and neighborhood location and things like the floor plan of the home, as these are permanent. Wallpaper can be removed and walls can be painted but you cant just change the location of the house so liking the yard, street and footprint is very important. Time to go House Hunting 10. Your neighborhood has a big impact on your lifestyle. Follow these steps to find the perfect community to call home. Is it close to your favorite spots? Make a list of the activities movies, health club, church, etc. you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood youre considering to engage in your most common activities. Check out the school district. This is especially important if you have children, but it also can affect resale value. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, visit schools in the neighborhoods youre considering. Also, check out www.schoolmatters.com. Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type such as burglaries or armed robberies and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area? Tips for Finding the Perfect Neighborhood 11. Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments dont necessarily diminish value, but do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months? See if youll make money. Ask a local REALTOR or call the local REALTOR association to get information about price appreciation in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good of an investment your home will be. A REALTOR or the government planning agency also may be able to tell you about planned developments or other changes in the neighborhood like a new school or highway that might affect value. Make personal observations. Once youve narrowed your focus to two or three neighborhoods, go there and walk around. Are homes tidy and well maintained? Are streets quiet? How does it feel? Pick a warm day if you can and chat with people working or playing outside. Tips for Finding the Perfect Neighborhood (cont) 12. 1. Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer, and how much youd be willing to spend each month for housing. 2. Be realistic. Its OK to be picky, but dont be unrealistic with your expectations. Theres no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property. 3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you cant afford. 4. Dont ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own. You will be the one that will be ultimately living in the home and paying the mortgage payment. 5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move. 6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home youll buy as well as the type of mortgage terms that will best suit you. 7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year. 8. Get help from a REALTOR. Hire a real estate professional who specializes in buyer representation. Unlike a listing agent, whose first duty is to the seller, a buyers representative is working only for you. Buyers reps are usually paid out of the sellers commission payment. 8 Tips to Guide Your Home Search 13. Youll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for: Down payment Loan origination Points, or loan discount fees, which you pay to receive a lower interest rate Home inspection Appraisal Credit report Private mortgage insurance premium Insurance escrow for homeowners insurance, if being paid as part of the mortgage Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you. Deed recording Underwriting and Doc preparation Land survey Notary fees Prorations for your share of costs, such as utility bills and property taxes A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership. Common Closing Costs for Buyers 14. 1. What are the most popular mortgages you offer? Why are they so popular? 2. Which type of mortgage plan do you think would be best for me? Why? 3. Are your rates, terms, fees, and closing costs negotiable? 4. Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required? (NOTE: Private mortgage insurance is usually required if your down payment is less than 20 percent. However, most lenders will let you discontinue PMI when youve acquired a certain amount of equity by paying down the loan.) 5. Who will service the loan your bank or another company? 6. What escrow requirements do you have? 7. How long will this loan be in a lock-in period (in other words, the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if it drops during this period? 8. How long will the loan approval process take? 9. How long will it take to close the loan? 10. Who will I be communicating with during this process and how easy are they to get in touch with? 10 Questions to Ask Your Lender 15. Below is a list of documents that are required when you apply for a mortgage. However, every situation is unique and you may be required to provide less documentation. Previous two years of W-2s (self-employed or commissioned borrowers must submit previous two years tax returns). Most recent months worth of consecutive pay stubs for each borrower. Most recent two months bank statements (savings, checking, CDs 401k, IRAs, stock statements, etc.) 2 forms of identification (ie; drivers license, military id, social security card, etc.) Other documentation that may be required: Executed Sales Contract/Addendums to Contract/Updates for the property you wish to purchase. Final Divorce Decree and Settlement Agreement. Complete Bankruptcy Papers with Petition/Discharge papers and list of creditors. Relocation Agreement and / or Buyout Agreement. Copy of HUD-1 Settlement Statement from sale of current home. Copy of Cancelled Earnest Money Check. Your loan can not be fully processed until the requested information is received. Please note, other information may be requested during the processing of your loan. Application Checklist 16. Preferred Lenders John Adams Chase Mortgage Cell 904.294.7311 Email: john.d.adams@chase.com NMLS# 442266 Daniel Halvorsen Bank of England Jacksonville Cell 904-707-3669 Email: dhalvorsen@boejax.com NMLS# 788842 William Milne EverBank Cell 904-465-4987 Email: william.milne@everbank.com NMLS# 648915 17. The tax deductions youre eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Heres how it works. Assume: $9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest) $2,700 = Property taxes (at 1.5 percent on $180,000 assessed value) ______ $12,577 = Total deduction Then, multiply your total deduction by your tax rate. For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56 $3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate) Tax Benefits of Homeownership 18. 1. Review the Comprehensive Loss Underwriting Exchange (CLUE) report on the property youre interested in buying. CLUE reports detail the propertys claims history for the most recent five years, which insurers may use to deny coverage. Make the sale contingent on a home inspection to ensure that problems identified in the CLUE report have been repaired. 2. Seek insurance coverage as soon as your offer is approved. You must obtain insurance to buy. And you dont want to be told at closing that the insurer has denied your coverage. 3. Maintain good credit. Insurers often use credit-based insurance scores to determine premiums. 4. Buy your home owners and auto policies from the same company and youll usually qualify for savings. But make sure the discount really yields the lowest price. 5. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower. Avoid making claims under $1,000. 6. Ask about other discounts. For example, retirees who tend to be home more than full-time workers may qualify for a discount on theft insurance. You also may be able to obtain discounts for having smoke detectors, a burglar alarm, or dead-bolt locks. 7. Seek group discounts. If you belong to any groups, such as associations or alumni organizations, they may have deals on insurance coverage. 8. Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage. 9. Investigate a government-backed insurance plan. In some high-risk areas, federal or state government may back plans to lower rates. Ask your agent. 10. Be sure you insure your house for the correct amount. Remember, youre covering replacement cost, not market value. Tips for Lowering Homeowners Insurance Costs 19. Know about exclusions to coverage. For example, most insurance policies do not cover flood or earthquake damage as a standard item. These types of coverage must be bought separately. Know about dollar limitations on claims. Even if you are covered for a risk, there may be a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately. Know the replacement cost. If your home is destroyed youll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, youll only receive $150,000. Know the actual cash value. If you chose not to replace your home when its destroyed, youll receive replacement cost, less depreciation. This is called actual cash value. Know the liability. Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that its sufficient if you have significant assets. 5 Things to Know about Homeowners Insurance 20. Home Insurance Vendors You deserve a relationship with a real person. Thats our stand. Robert Gunn Phone: 904.272.1400 ~or~ 904.272.9600 ~ RobertGunn@Allstate.com Two convenient locations in Orange Park As a Personal Financial Representative in Orange Park, I know many local families. My knowledge and understanding of the people in this community help me provide customers with an outstanding level of service. I look forward to helping families like yours protect the things that are important your family, home, car and more. I can also help you prepare a strategy to achieve your financial goals 21. Before you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with a property and allow you to make an informed decision. Ask these questions to prospective home inspectors: 1. Will your inspection meet recognized standards? Ask whether the inspection and the inspection report will meet all state requirements and comply with a well-recognized standard of practice and code of ethics, such as the one adopted by the American Society of Home Inspectors or the National Association of Home Inspectors. Customers can view each groups standards of practice and code of ethics online at www.ashi.org or www.nahi.org. ASHIs Web site also provides a database of state regulations. 2. Do you belong to a professional home inspector association? There are many state and national associations for home inspectors, including the two groups mentioned in No. 1. Unfortunately, some groups confer questionable credentials or certifications in return for nothing more than a fee. Insist on members of reputable, nonprofit trade organizations; request to see a membership ID. 3. How experienced are you? Ask how long inspectors have been in the profession and how many inspections theyve completed. They should provide customer referrals on request. New inspectors also may be highly qualified, but they should describe their training and let you know whether they plan to work with a more experienced partner. 4. How do you keep your expertise up to date? Inspectors commitment to continuing education is a good measure of their professionalism and service. Advanced knowledge is especially important in cases in which a home is older or includes unique elements requiring additional or updated training. 5. Do you focus on residential inspection? Make sure the inspector has training and experience in the unique discipline of home inspection, which is very different from inspecting commercial buildings or a construction site. If your customers are buying a unique property, such as a historic home, they may want to ask whether the inspector has experience with that type of property in particular. 6. How long will the inspection take? On average, an inspector working alone inspects a typical single-family house in two to three hours; anything significantly less may not be thorough. If your customers are purchasing an especially large property, they may want to ask whether additional inspectors will be brought in. 7. Whats the cost? Costs can vary dramatically, depending on your region, the size and age of the house, and the scope of services. The national average for single-family homes is about $320, but customers with large homes can expect to pay more. Customers should be wary of deals that seem too good to be true. 8. What type of inspection report do you provide? Ask to see samples to determine whether you will understand the inspector's reporting style. Also, most inspectors provide their full report within 24 hours of the inspection. 9. Will I be able to attend the inspection? The answer should be yes. A home inspection is a valuable educational opportunity for the buyer. An inspector's refusal to let the buyer attend should raise a red flag. Questions to Ask Home Inspectors 22. Home inspections will vary depending on the type of property you are purchasing. A large historic home, for example, will require a more specialized inspection than a small condominium. However, the following are the basic elements that a home inspector will check. You can also use this list to help you evaluate properties you might purchase. For more information, try the virtual home inspection at www.ASHI.org, the Web site of the American Society of Home Inspectors. Structure: A homes skeleton impacts how the property stands up to weather, gravity, and the earth. Structural components, including the foundation and the framing, should be inspected. Exterior: The inspector should look at sidewalks, driveways, steps, windows, and doors. A homes siding, trim, and surface drainage also are part of an exterior inspection. Doors and windows Siding (brick, stone, stucco, vinyl, wood, etc.) Driveways/sidewalks Attached porches, decks, and balconies Roofing: A well-maintained roof protects you from rain, snow, and other forces of nature. Take note of the roofs age, conditions of flashing, roof draining systems (pooling water), buckled shingles, loose gutters and downspouts, skylight, and chimneys. Plumbing: Thoroughly examine the water supply and drainage systems, water heating equipment, and fuel storage systems. Drainage pumps and sump pumps also fall under this category. Poor water pressure, banging pipes, rust spots, or corrosion can indicate problems. Electrical: Safe electrical wiring is essential. Look for the condition of service entrance wires, service panels, breakers and fuses, and disconnects. Also take note of the number of outlets in each room. Heating: The homes heating system, vent system, flues, and chimneys should be inspected. Look for age of water heater, whether the size is adequate for the house, speed of recovery, and energy rating. Air Conditioning: Your inspector should describe your home cooling system, its energy source, and inspect the central and through-wall cooling equipment. Consider the age and energy rating of the system. Interiors: An inspection of the inside of the home can reveal plumbing leaks, insect damage, rot, construction defects, and other issues. An inspector should take a close look at: Walls, ceilings and floors Steps, stairways, and railings Countertops and cabinets Garage doors and garage door systems Ventilation/insulation: To prevent energy loss, check for adequate insulation and ventilation in the attic and in unfinished areas such as crawlspaces. Also look for proper, secured insulation in walls. Insulation should be appropriate for the climate. Excess moisture in the home can lead to mold and water damage. Fireplaces: Theyre charming, but they could be dangerous if not properly installed. Inspectors should examine the system, including the vent and flue, and describe solid fuel burning appliances. What a Home Inspection Should Cover 23. Preferred Home & WDO Inspectors Tabor K. Hill & Associates Phone: 904.269.2929 Fax: 904.406.9581 Email: info@taborkhill.com Website: www.taborkhill.com Florida Home Pro Inspections Phone: 904.268.8211 Website: www.gohomepro.com AmeriSpec Home Inspection Service Phone: 904.448.0516 Email: amerispec@bellsouth.net Website: www.amerispec.net Home Wise Services Inc. Phone: 904.997.1630 Website: www.Homewiseservices.com BUG Pro Florida Phone: 904.745.3100 Website: www.bugproflorida.com The Pest Detective Phone: 904.720.0404 Website: www.thepestdetective.com Bugout Service Phone: 904.562.6093 Website: www.bugoutservice.com Brandon Pest Control Phone: 904.739.9916 Website: www.pestfree.com.com 24. Some Myths and Realities About... Myth: Assessed value should equate to market value. Reality: While most states support the concept that assessed value approximate estimated market value, this often is not the case. Examples include when interior remodeling has oc- curred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an extended period. Myth: The appraised value of a property will vary, depending upon whether the appraisal is conducted for the buyer or the seller. Reality: The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality - no matter for whom the ap- praisal is conducted. Myth: Market value should approximate replacement cost. Reality: Market value is based on what a willing buyer likely would pay a willing seller for a particular property, with neither being under pressure to buy or sell. Replacement cost is the dollar amount required to reconstruct a property in-kind. Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the value of a home. Reality: Appraisers make a detailed analysis of all factors pertaining to the value of a home including its location, condition, size, proximity to facilities and recent sale prices of compa- rable properties. Myth: In a robust economy - when the sales prices of homes in a given area are reported to be rising by a particular percentage - the value of individual properties in the area can be expected to appreciate by that same percentage. Reality: Value appreciation of a specific property must be determined on an individualized basis, factoring in data on comparable properties and other relevant considerations. This is true in good times as well as bad. 25. ...Real Estate Appraisals and Appraisers Myth: You generally can tell what a property is worth simply by looking at the outside. Reality: Property value is determined by a number of factors, including location, condition, improvements, amenities, and market trends. Myth: Because consumers pay for appraisals when applying for loans to purchase or re- finance real estate, they own their appraisal. Reality: The appraisal is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document. However, consumers must be given a copy of the appraisal re- port, upon written request, under the Equal Credit Opportunity Act. Myth: Consumers need not be concerned with what is in the appraisal document so long as it satisfies the needs of their lending institution. Reality: Only if consumers read a copy of their appraisal can they double-check its accura- cy and question the result. Also, it makes a valuable record for future reference, containing useful and often-revealing information - including the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the vicinity. Myth: Appraisers are hired only to estimate real estate property values in property sales involving mortgage-lending transactions. Reality: Depending upon their qualifications and designations, appraisers can and do pro- vide a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis. Myth: An Appraisal is the same as a home inspection. Reality: An Appraisal does not serve the same purpose as an inspection. The Appraiser forms an opinion of value in the Appraisal process and resulting report. A home inspector determines the condition of the home and its major components and reports these findings. 26. What You Need to Know. Are you looking to buy a new home? Are you thinking that nows a great time to find bargains? Thats true, but it pays to know a little about the sellers situation before you make an offer. If a home is being sold for below what the current seller owes on the property - and the seller does not have other funds to make up the difference at closing - the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market. A short sale is different from a foreclosure, which is when the sellers lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. A short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase. Youre a good candidate for a short sale purchase if. Youre very patient. Even after you come to an agreement with the seller to buy a short-sale property, the sellers lender (or lenders, if there is more than one mortgage)) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale. Your financing is in order. Lenders like cash offers, even if you cant pay all cash for a short-sale property, its important to show you are well qualified and can close at any time. Your offer will be viewed more favorably than that of a buyer whose financing is less secure. You dont have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property or you need to be in your new home by a certain time - a short sale may not be for you. Lenders like no contingency offers and flexible closing terms. Thinking of Making an Offer on a Short Sale? 27. If your serious about purchasing a short-sale property, its important for you to have expert assistance. Here are some professionals you will want to work with: Experienced real estate attorney. Only about two out of five short sales are approved by lenders. A good real estate attorney who is knowledgeable about the short-sale process will increase your changes of getting an approved contract. Also, if you want any provision or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation. A qualified real estate professional. You may a close friend or relative in real estate, but if that person doesnt know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers theyve represented in a short sale and of those, how many have successfully closed. A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There are also certain phrases you can watch for, such as Lender Approval Required) Title officer. Its a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanics lien, homeowners association lien, etc.) Its much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after youve waited for months for lender approval. If you dont know a title officer, your real estate attorney or real estate professional should be able to recommend a few. Some of the other risks faced by buyers of short-sale properties include: Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are your offer will be rejected and youll have wasted months. Or the lender could make a counter offer, which will lengthen the process. Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that youve already negotiated, which may not be agreeable to you. No repairs or repair credits. You will most likely be asked to take the property as is. Lenders are already taking a loss on the property and may not agree to requests for repair credits. The risks of a short sale are considerable but if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers. For more information about purchasing short sale properties and for a list in your area call Team Knapp today at 904.334.7426. Do it Right, Keep it Real 28. When making Short Sale Offers to Purchase Buyers need to know in advance that: The Sellers lien holder is Not a Party to the offer/contract Normally the List Price has been determined by the Seller / Realtor, not the Bank which holds the lien unless the MLS states, lender approved There may be more than one lien holder on this property There may be a Mortgage Insurance Company with decision making authority over the sellers loan. It may be in the banks best interest to let the home go into foreclosure rather than sell it as a short sale. Coldwell Banker Vanguard Realty Inc and its representatives cannot control how another Real Estate Agency will handle a short sale transaction. For example, some will take multiple offers. The frequency of their communication with the bank may be sporadic or infrequent. The Buyers Agent has limited influence on the transaction proceedings. At the present time, statistics tell us that only 45% of short sales are successfully closed Do not expect counter offers or any other communication from the lien holder in writing except for the final Approval Letter. A short sale could take up to 1 year to close This short sale may not close due to pending foreclosure proceedings by lien holder Buyer____________________________ Buyer_______________________________ Date_____________________________ Date_______________________________ Buyers Short Sale Disclosure 29. Here is a timeline to consider as you make the move to your new home. 4 weeks before you move: Finalize plans with a reputable moving company Have school records transferred Arrange to transfer (or take with you) medical, dental and other important records Prepare to transfer your homeowners, auto and life insurance Consider a garage sale to get rid of unneeded items Arrange to place excess items in storage if necessary Keep track of moving related expenses and ask your accountant what expenses may be deductible 3 weeks before: Obtain and mail change-of-address cards to the post office, subscriptions, credit card companies and important contacts 2 weeks before you move: Arrange for utility connection changes Close or transfer bank accounts Arrange for transfer of vehicle licenses and drivers licenses Terminate newspaper delivery service Have an extra supply of prescription medications for the next four weeks We will schedule a final walk-through of the property to make sure everything is in order Week of your move: Keep valuable financial records and personal papers with you. Dont pack them with the rest of your household goods. Preferably a few days prior to close, all the documentation will be at the title company and ready for you to sign. Once the transaction has funded and the documents recorded, the home is officially yours MOVE IN!!! Remember to contact us for assistance with all your future homeownership needs. Making a Smooth Transaction 30. Our Service Speaks For Itself 31. And then some... 32. Real Estate Pinnacle Service Highest Customer Satisfaction in the Real Estate Industry How would your real estate experience improve if you had a skilled professional guiding and advising you every step of the way? All too often, customer service programs are created in cushy conference rooms, far removed from the people for whom the programs are designed. Those efforts often miss the mark because they aren't drawn from the group that matters most: The Customers. But with Premier Service, Vanguard Realty's comprehensive business philosophy, we've gone right to the source. You've told us that buying and selling a home can be stressful, time-consuming and sometimes overwhelming. We want to change that. The Premier Service pledge of service excellence means that Vanguard Realty's professional team of Sales Associates assumes three important roles: Trusted Advisor With specialized knowledge and extensive training, Vanguard Realty's Sales Associates will help you navigate your home buying and selling process. We will listen to your goals, and recommend ways to help you achieve them. Skilled Negotiator The real estate process requires negotiation of complex issues; we are committed to working in your best interests. We will help you secure the best possible price, with the most favorable terms, in the shortest period of time. Expert Facilitator We will work to ensure your purchase or sale stays on track and on time. You will receive outstanding customer service, our professional expertise, and be offered other services that can help enhance your result - far beyond the transaction itself. Team Knapp ~ Platinum 100% Customer Service Satisfaction Rating 2004-2008 Team Knapp ~ Pinnacle 100% Customer Service Satisfaction Rating 2008-2011 Pinnacle Service = Results 33. My Commitment to You Buyer Commitment to Agent As your exclusive agent, I will: Listen to your needs Be a Trusted Advisor Track the market for you Advise you regarding market changes Assist with loan approval & financing Provide appropriate disclosures Make appointments & view properties Help you prepare & position your offer for acceptance Be a Strong Negotiator on your behalf Facilitate entire Process to ensure Transaction goes smoothly Orchestrate all post-sale activities Work diligently toward a successful close Be at closing with you! Loyalty Communication Feedback Equal Housing Opportunity * When you notice a home advertised anywhere by any company, please contact me to view that home. Also, visiting open houses, FSBOs or new construction without me may preclude us from working together. Please advise them you are working with me and give them my card. I look forward to being your Realtor and finding you the right home! _____________________________ ______________ __________________________________ _____________ REALTOR Date Buyer Date ____________________________ __________ Buyer Date 34. WelcomeWelcomeWelcome Home!Home!Home! 35. Cell: 904.334.7425Cell: 904.334.7425 Office: 904.637.0285Office: 904.637.0285 TeamKnapp.comTeamKnapp.com Facebook.com/RealGivingProject