The Keller Williams Realty

Buyer Information Package

Belief System

WI4C2TS

(pron. Y-For-See-To-Tees)

Win-Win…………………………………………………………………..or no deal

Integrity…………………………………………………...do the right thing

Commitment ……………………………………………………in all things

Communication...... seek first to understand

Creativity ………………………………………….ideas before results

Customers …………………………………………….always come first

Teamwork ……………………together everyone achieves more

Trust...... starts with honesty

Success ...... results through people

Mission:

To build careers worth having,

businesses worth owning, and lives worth living.

Here Is Where It All Begins!

Thank you for the opportunity to discuss your real estate needs. I think you’ll find that the home buying process can be educational and a lot of fun! Buying a home is a cooperative venture that requires thorough communication and teamwork. When we meet, I will discuss buying a home in the Charlottearea and how we can best work together to achieve your goals.

If you have any specific issues you’d like to address, please make note of them now and bring them to my attention at our meeting. I will make sure that all of your questions are answered to your satisfaction!

I urge you to take a few minutes of your time to review this packet carefully. These materials have been created with the input of many agents with years of real estate experience, and is a comprehensive look at what to expect in your quest for a new home.

After our first meeting, I will have a clear picture of your needs and wants, and you will have a clear picture of what to expect in the exciting process of finding your new home! I look forward to our first meeting and a fruitful working relationship!

If you need any additional information at any time, please don’t hesitate to contact me.

Respectfully,

Polly Brewer

Cell Phone:704.724.9682

Fax:704.409.4823

Email:

Website:

IMPORTANT AGENCY DISCLOSURE INFORMATION

North Carolina real estate law requires that I inform you of your options in choosing what type of agency relationship we will employ when I work with you, and it is my pleasure to do so.

My preference is to work only for you as your Exclusive Buyer Agent in the purchase transaction. The listing agent on all properties that I show you is legally representing only the interests of the seller. The Exclusive Buyer Agency Agreement allows me to act on your behalf by assisting you in negotiations, disclosing any available information about seller motivation, coaching and counseling you on the details, and providing you with sales information on comparable properties to help you determine a fair market price.

Without that authorization from you, licensing law requires that I represent the seller as his/her “subagent”, and that I attempt to obtain the best possible price for the seller. Also, many properties will be unavailable for us to see because the listing agency may not authorize agents from other firms to act as the seller’s subagent.

If you decide not to authorize me to be your Exclusive Buyer Agent, you are stating that you do not want representation from me and that you understand that I will be representing the seller.

I need to know what agency relationship you prefer prior to showing any homes to you and before you share any confidential or personal information with me.

If you are uncomfortable at the time of our initial meeting committing to an Exclusive Buyer Agency agreement with me, that is completely understandable. I can offer another legal alternative that allows me to act as your Buyer’s Agent under an Oral Agreement between us. This is a non-exclusive arrangement which does not bind the client to any one particular agent but still allows for me to act exclusively as your Agent for a limited period of time.

I will review the “Working With Real Estate Agents” brochure and will be happy to answer any questions you may have about agency relationships.

7 Reasons to Buy a Home

Pride of ownership is a key reason for wanting your own home. Decorate it to your own taste and enjoy all of the benefits while making a great investment.
Real estate over time has been considered a good investment because most of it has appreciated. The effects of leverage can multiply the increase when borrowed funds are used to purchase the home.
Many times, the largest investment a person owns is their home. Homes have been a good hedge against inflation. Homeowners build equity and can borrow against that equity for a variety of reasons that could include college, medical, or to start a business.
Qualified mortgage interest and home equity loans are deductible for Income Tax purposes.
Property taxes on a first or second home are deductible for Income Tax purposes.
A homeowner can exclude up to $500,000 of capital gain if married, filing jointly or up to $250,000 if single or filing separately for homes that have been the taxpayer's principal residence for the previous two years. There is no age requirement for taking the capital gains exclusion.
It is not necessary to purchase a replacement home more expensive than the one sold. Homeowners can buy a more or less expensive home with no tax consequences assuming their gain is less than the allowable amounts.
Preferential tax treatment on gains that have been made from capital assets held more than one year are permitted by IRS. This is especially important for homeowners with gains in excess of the allowable exclusion.
Mortgage payments include the interest for the time that the money has been used and principal to retire the debt over a period of time. Each month part of the payment is for principal accumulation.

MLS Member

As a member of the Multiple Listing Service, I can research any listed properties customized to your particular requirements. I can narrow down the hundreds of prospects to those that most closely match your wants and needs. And when you are ready, I can show you the properties we have agreed on.

If you should see an ad in the paper or a sign in a yard, call me to find out the information.

If you want to see it, I will show it to you.

For Sale by Owner

Many times a homeowner will work with an agent, even though the home is not listed with a real estate broker. It is necessary for the agent to introduce the buyer to the property.

A homeowner trying to sell his home himself is usually doing so in hopes of saving the commission. Coincidentally, this is the reason a buyer wants to deal directly with a homeowner.

If you want to see a home offered by the owner and want the advantages of my services, please let me contact the owner and set the appointment.

Builder’s Homes

Most builders are more than willing to work with agents who accompany the buyer to the property on the initial visit.

By working through me with builders, you get all the services offered by me in addition to those offered by the builder. You'll get more, but you won't pay more for it.

Pre-Approval Is an Advantage

Applying for a loan and obtaining approval before a buyer finds a home they want to buy can be a distinct advantage. Submitting a loan application is going to be required eventually unless you are going to pay cash for the home.

Pre-qualification is a procedure whereby you receive an opinion from a mortgage officer about how much you are eligible to borrow. In the process, any obvious difficulties that might cause problems may be discovered. This process is always recommended but it does not have the advantages of a pre-approval.

Pre-approval requires a complete application along with credit reports and verifications. The Mortgage Company will issue a commitment letter subject to a specific interest rate, points, and a satisfactory appraisal when the property is identified.

Time limits are usually placed on pre-approval commitments. It is recommended that you be in a position to look at homes and be prepared to make a decision on a suitable property after you receive your pre-approval commitment.

The advantages of being pre-approved are:

Narrowing your focus to the right-priced homes.
Avoiding the disappointment in deciding on a home that you can’t afford.
A seller who is confident about taking their home off the market because of buyers who have a definite loan commitment.
One less contingency that the seller will be concerned with to get their home sold.
Closing more quickly, the lengthiest contingency is usually the mortgage approval.
Minimizing the anxiety of not knowing whether or not you qualify.

Preparation for a Mortgage Application

Employment

Names and addresses for two full years

Gross monthly income

W-2s for two years, if available

Year to date pay stub

Proof of income from rentals, investments, etc

Proof of retirement, disability or Social Security

Proof of child support or alimony paid/received

If self-employed:

Two years Federal Income Tax Returns

Current year profit and loss statement

Creditors

Each creditor's name, addresses and type of account

Account numbers for each

Monthly payments and approximate balances

Amounts of child care expenses

Banking

Names and addresses of banking institutions

Account numbers for all accounts

Type of accounts and present balances

Miscellaneous

List of assets in stocks, bonds, and property

Life insurance cash value (documented if used as cash down payment)

If applicant is selling a home, a copy of sales contracts

Social Security numbers for all parties

Veterans - Certificate of Eligibility & DD-214

Cash or check to pay for application fee

Property

Copy of sales agreement

Copy of listing on property

Instructions on how appraiser is to gain entrance

My Unique Selling Position

There are over 7000+ agents in the Charlotte area available and willing to help you with your home purchase! To make a solid case for letting me assist you, I have to provide a higherlevel of service both before and after the sale.

I am not just looking for one sale to you. I want you to consider me as your real estate professional for the long-term.

The reasons for doing business with me must be such that not only will you not consider doing business with anyone else, you will feel comfortable in referring me to your friends and family who are looking to buy or sell a home.

Neighborhood Knowledge

I’ll know the neighborhoods that you are considering or will find someone who does. I will identify comparable sales, and locate information on the schools, shopping, crime, demographics, and other things you feel are important.

Appropriate Houses to Consider

I’ll look for what you desire and can afford in an area you want to live. I’ll show you all the homes that are available, not just the ones that I have listed.

Good Financial Decisions

Every buyer needs basic financial information to make a good buying decision. You’ll know that you qualify for the home, what the estimated payments are, and what the closing costs will be.

Work Diligently to Find Your Home

I’ll work hard to find your new home. I understand that finding a home is a priority and will consider it my priority as well. I’ll screen and preview homes so as to not waste your time and when I find one that I feel meets your needs, I will arrange to show it to you as quickly as possible.

Buyer Agency Can Benefit You

When a buyer agency relationship exists between you and I, you are entitled to special fiduciary client level services.

Loyalty - the real estate agent must act in the best interest of the buyer.

Obedience - must follow the lawful instructions of his /her client.

Disclosure - of all material facts such as relationships between agent and other parties, existence of other offers, status of earnest money, seller's financial condition, property's true worth, commission split with other brokers, and legal effect of important contract provisions.

Confidentiality - any discussions, facts, or information that should not be revealed to others but does not include responsibility of fairness and honesty in dealings with all parties.

Accountability - reporting of where any money placed in the hands of the broker is kept.

Reasonable Skill and Care- arriving at a reasonable purchase price and advising buyer of such, affirmatively discovering material facts and disclosing them to the buyer, investigating the material facts related to the sale.

With buyer agency, your interests will be represented in the purchase of your home. This is different from a typical sub-agency transaction where the buyer is not technically represented.

Agency is a legal relationship and a written agreement should be completed to explain all the duties and responsibilities.

Who Pays the Commission?

The Seller

In most every case, the Seller has signed a listing agreement with his agent specifying a certain fee to be paid for selling the home. It can include provisions for splitting that fee with the selling agent, regardless of agency representation.

The Buyer

In some cases, the Buyer pays his agent a commission as set out in their written agreement. If the buyer pays his agent from his separate funds, it would not be appropriate for the buyer's agent to also accept part of the fee paid by the seller.

The Client Determines How the Agent is Paid

The seller agrees to pay his agent in the listing agreement and the sub-agent of the seller who sells the property.

The buyer agrees to pay his agent if buyer agency is elected.

In almost every case, the buyer directs his agent to be paid from the seller’s proceeds.

Home Protection Plan

Some sellers provide a Home Protection Plan for the buyer that covers certain items for a one-year period like:

Heating and air conditioning systems
Interior plumbing
Built-in appliances
Electric pool equipment

If a Home Protection Plan is not provided on the home you contract for, you can acquire the coverage yourself. The price of programs will vary in price and coverage and among carriers.

Home Inspection

Under current North Carolina law, the seller will provide a property disclosure for interested buyers prior to writing a contract. This will declare any material facts about the physical condition of the property.

The property disclosure does not take the place of a buyer’s inspection that is usually made after a contract is completed.

For unique situations(i.e. Pool systems, spas, etc.). A provision for a home inspection can be added to the sales contract identifying those areas to be inspected by a professional inspectorwho specializes in those items of interest.

Of course, the purpose of the inspection is to find major defects in the home.

The areas of concern include but are not limited to:

Mechanical – heating, air-conditioning, appliances.
Plumbing – fixtures, lines, water heaters, sewers.
Electrical – wiring, out of date systems.
Structural – doors, windows, roof, foundation, drainage, ventilation, and environmental hazards.

I will be happy to supply a list of recommended inspectors. You are encouraged to accompany the inspector to ask questions and receive a written report itemizing any areas of concern. I will also plan to be on-site when the inspections take place.

Process of Buying a Home

Orientation

During the initial interview, you’ll share your expectations and learn about the process of buying a home. I will share my knowledge about areas, prices, financing, your qualifications, and normal procedures.

Taking into consideration your wants, financial abilities, and needs, you will decide on price, size, style, and area. At this point, we will begin the search to find your new home.

Financing

As discussed earlier, a prudent strategy for a successful purchase is to apply for pre-approval as soon as you begin the search for a new home. Negotiating a contract with a loan commitment can be very advantageous to you and sometimes is even the deciding factor in a successful acceptance of your purchase offer.

Don’t take the chance of loosing your dream house to someone else who has the loan commitment in place at the time of the offer. All other items being equal, the seller will almost always take the contract offer from the buyer who is already qualified and has the loan commitment letter in hand.

There are specific things necessary to make a loan application and assembling them can take some time. It is recommended to use the enclosed list.

Formulating an Offer

When we find the right home, of course you will want to make an offer to purchase it. This is done in writing specifying every detail that is part of the agreement. There are standard forms that I will provide you with and assist in their completion (see sample contract included).

Once we tender an offer we will wait to see if the seller accepts your terms or returns a counteroffer. If a counteroffer is presented, then I will assist you in determining the appropriateness of the new terms and will offer counsel as to whether an acceptance of the counteroffer is in your best interest, or if there is room for further negotiation.

If all goes well, the offers and counteroffers will be distilled down to a final offer that is acceptable to both parties and we will have a contract!

Now is when my real work begins. For the next few weeks I will be shepherding the deal through the necessary hurdles, inspections, etc. so that we arrive at the closing table prepared to close the deal with no surprises. During this time I will be in regular contact with you, even if it’s just to say that everything is going according to plan.