Buyers Presentation | DielmannSIR

BUYER PRESENTATION

EXPERT INSIGHTS FOR SUCCESSFUL HOME BUYING

Who We Are

As a part of the world-renowned Sotheby’s International Realty network of over 26,000 agents in more than 81 countries and territories, we bring you quality offerings and exceptional service that could only come from a heritage of over 275 years in the making.

Dielmann Sotheby’s International Realty is an affiliate of Sotheby’s International Realty®, a global collection of real estate companies selected for their history and reputation. Integrity, Experience, and Innovation are central to the mission and culture of Dielmann Sotheby’s International Realty.

Since its founding in 1744, Sotheby’s has earned renown as a marketer of the world’s most valuable and prestigious possessions. This reputation is built as much upon exceptional service to clients as on the notable art, antiques, jewelry, and properties that pass through Sotheby’s offices around the world.

In St. Louis, our firm is at the epicenter of Commerce, located in Downtown Clayton. Our central location reflects our determination to serve the needs of our extraordinary clientele no matter where they live and where their lives may take them. Situated next to major financial institutions, large corporations, title companies, and government centers, we maintain strategic access to all things integral to business.

Our executive leadership exceeds four decades of experience in the St. Louis market.  That, combined with our strategic and extensive staffing, makes us one of a kind in the state of Missouri.

Our Sotheby’s affiliation provides unparalleled marketing, access, technology, and relocation support, which is continuously leveraged to ensure that every client gets the level of service they deserve. Whether your residence is modest or lavish, small or immense, we would be pleased to represent you.

Local Expertise With a Global Reach.

$ 937 M ANNUAL SALES VOLUME

1,340 TOTAL TRANSACTIONS

$ 859 K

AVERAGE SALES PRICE

$ 1.08 M

AVERAGE CLOSED SALES PRICE Relocation Referrals

$ 167 B IN GLOBAL SALES

1,100+ OFFICES

80+ COUNTRIES

26,000 + SALES AGENTS

NAR SETTLEMENT

YOUR TRUSTED REAL ESTATE ADVISOR

NAVIGATING THE HOME PURCHASE PROCESS

UNDERSTANDING AGENCY

UNDERSTANDING BROKERAGE COMPENSATION

WHO PAYS COMMISSION?

INITIAL CONSULTATION & BENEFITS OF EXCLUSIVE REPRESENTATION

AGENT VALUE – 10 IMPORTANT BENEFITS

LOCATING AND VIEWING PROPERTIES

EVALUATING SELECTED PROPERTIES

WRITING COMPETITIVE OFFERS

OPENING ESCROW

PHYSICAL & OTHER INSPECTIONS CONTINGENCIES

COMPLETING THE CLOSING PROCESS & A LIFELONG RELATIONSHIP

GLOSSARY OF REAL ESTATE TERMS

DEAR VALUED CLIENTS, CUSTOMERS, AND FRIENDS,

You may have seen the news stories about the recent proposed settlement from the National Association of REALTORS® (NAR). Unfortunately, the clickbait headlines have contained a lot of misinformation about our industry.

We want to provide you with a basic understanding of what this proposal means, as well as address the misinformation below:

WHAT IS THE NAR SETTLEMENT ALL ABOUT?

On Friday, March 15, 2024, The National Association of REALTORS® announced a proposed lawsuit settlement that included a monetary settlement and two changes to business practices: the removal of the offer of Buyer Agent Compensation in NAR-owned MLSs and the addition of a requirement for Buyer Agents to use Buyer Representation Agreements.

WHAT WILL CHANGE AND WHEN?

Assuming this proposed settlement is approved, the changes will take place in mid-July 2024. We expect MLSs to remove the offer of Buyer Agent Compensation. As this proposal is written, sellers may still offer Buyer Agent Compensation without it being published in MLS. There are some concerns that this could be a step away from consumer transparency. Buyer Agents will also need to have signed agreements, just as Listing Agents must have Listing Agreements.

DID OR DOES EVERYONE CHARGE 6%?

No. This allegation is wildly inaccurate. Different marketplaces see different ranges of compensation. From town to town, company to company, and listing to listing, there has always been variation in our marketplaces. The industry does not – and cannot – collude or collaborate on what a universal commission rate can be. Commissions are derived from the brokerage. We discuss our services, market share, and experience, not what our competitors are asking for.

WILL THIS LOWER THE HOUSING COSTS?

Home prices in a free market economy are determined by supply and demand. Nothing in this settlement addresses the lack of supply or the high levels of demand. Therefore, this does not lower the cost of buying a home.

WHAT IF I HAVE AN EXISTING CONTRACT?

Nothing is likely to change before the July target date. However, we are awaiting the final details of the settlement as approved by the court. At this time, our understanding is that when the July target date arrives, the only change to an existing contract is that no offer of Buyer compensation from the listing agent or seller can be published in the MLS. Agents working with buyers will need to have written contracts to represent them.

WHAT CONSUMER PROTECTIONS ARE IN BUYER REPRESENTATION?

A Buyer Agent is responsible for being an exclusive Fiduciary. Fiduciary duties are all the duties that a real estate agent or broker is legally beholden to when working with a client. These duties, which are in the client’s best interest, are obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care.

DOES A BUYER IN THE MARKET NEED BUYER REPRESENTATION?

A buyer does not have to use a Buyer Agent. However, in a low inventory “seller’s market,” it is difficult to compete against other buyers who get expert advice on offer strategies and negotiation.

WHAT CAN THE LISTING AGENT NOT DO FOR THE BUYER?

• Offer strategies that have your interests in mind

• Recommend Home Inspectors

• Act as your exclusive Fiduciary

• Provide comprehensive Market Analysis interpretation for pricing

• Advocate for you

WHAT ARE THE RISKS WITH A BUYER NOT HAVING A REPRESENTATIVE?

• Not having a representative to protect and promote the interests of the buyer’s client

• Not having an agent protecting the fiduciary duties which include loyalty, confidentiality, disclosure, obedience, reasonable care and diligence, and accounting

• Not learning about off-market opportunities

• Not being informed and educated about the market

• Not having a well-prepared, competitive offer in a multiple-offer situation

WILL THE BUYER AGENCY GO AWAY?

No. Buyer Agency is the way that buyers get expert guidance — from preparation and search to offer strategy and negotiation, and so much in between. A home represents an important investment — one that continues to be at the heart of financial wellness for most Americans.

Dielmann Sotheby’s International Realty prioritizes focusing resources on those we serve. To our clients, thank you for the privilege of representing your interests and providing outstanding service as you navigate one of life’s most important and complex transactions. We will continue communicating with you as we understand more about their settlement and the ongoing industry dynamics. Please don’t hesitate to reach out to us with questions.

FOR MORE INFORMATION VISIT: WWW.NAR.REALTOR

West Adams Avenue

Kirkwood, Missouri

1. Your Trusted Real Estate Advisor

Buying a home is typically one of the largest investments you will make and will have lasting consequences for years to come. A trusted real estate advisor can act as your guide to negotiate on your behalf and navigate the hundreds of pages of disclosures, reports, and contracts to help you avoid costly mistakes.

LEVERAGE THE SOTHEBY’S INTERNATIONAL REALTY BRAND

Sotheby’s International Realty is a globally recognized brand that lends credibility to your offers and elevates your representation. Our success is defined by our deep commitment to our clients. This trust has been built over 270 years of Sotheby’s selling their client’s most valuable treasures.

NAVIGATING THE HOME PURCHASE PROCESS

Having an experienced professional in your corner offers a competitive advantage when searching for your home and accessing local resources. An Agent’s broad perspective can provide a stabilizing force to assist you through what can be a challenging process. Remember, we represent you and your real estate objectives.

12413 Stratford Ridge Court | Creve Coeur, Missouri

2. Navigating the Home Purchase Process

3. Understanding Agency

DESIGNATED AGENT

Dielmann Sotheby’s International Realty practices designated agency, wherein your designated agent acts as your specific agent, whether you are a buyer or tenant, or seller or landlord. When the broker makes this appointment, the other real estate licensees in the company do not represent you.

DISCLOSED DUAL AGENT

With the written consent of all parties, represents both the seller and the buyer or the landlord and the tenant.

DUAL AGENCY CAN OCCUR WHEN:

1. The agent representing you as a buyer or tenant is also the agent who listed the property you may want to buy or lease.

2. The supervising broker of two designated agents becomes involved in the transaction.

A Disclosed Dual Agent may disclose any information to either party that the licensee gains that is material to the transaction.

A dual agent may not disclose information that is considered confidential, such as:

• Buyer/Tenant will pay more than the purchase price or lease rate

• Seller/Landlord will accept less than the asking price or lease rate

• Either party will agree to financing terms other than those offered

• Motivating factors for any person buying, selling, or leasing the property

• Terms of any prior offers or counter offers made by any party.

Your Agent will provide you with the MISSOURI BROKER DISCLOSURE which details the types of agency relationships in Missouri.

4. Understanding Brokerage Compensation

BROKERAGE COMMISSION

Similar to a Listing Agreement, Buyers should complete a contract for professional services and representation between themselves and their Agent. The advantages of this also confirm the compensation for the Buyer’s Agent and Brokerage. It should be noted that the amount a brokerage charges is not fixed by law, the commission amount is negotiable, and brokerages may set minimum fees.

COMPENSATION DIVISION

The compensation paid for Buy Side representation is not exclusively paid to the brokerage. Compensation is shared with the agent to cover business operations, and expenses such as Errors and Omissions Insurance, and membership in industry organizations, and it is used to offset Agent’s necessary business expenses associated with licensed activities.

5. Who Pays Commission?

There are many ways to address Buyer’s Agent compensation.

When listing their property for sale, sellers agree to pay a commission to the listing brokerage. Often, a cooperating commission is also offered to a Buyer’s Agent as a part of their listing agreement. However, there are times when there is no Buyer’s Agent fee accounted for in the seller’s agreement with their broker.

Your Buyer’s Agent will discuss in detail the different scenarios that may present themselves, and how the process will work when representing you as their buyer client. Depending on the unique circumstance of the transaction, a commission can be:

• Paid by Buyer at closing

• Paid in part by both buyer and seller

• Paid solely by the seller

6. Initial Consultation

An initial meeting is important to understand your home-buying needs and to develop a strategy to help you successfully make a purchase.

UNDERSTANDING YOUR REAL ESTATE GOALS

• Purchase time frames

• Past experience with real estate purchasing

• Risk tolerance

• Financing and stage of pre-approval, if a loan is needed

REFINING PROPERTY SEARCH CRITERIA

• Location and neighborhood

• Price range

• Size of home, style, amenities

• Specific requirements and non-negotiables

• Condition of home and flexibility to make improvements

• School districts, commute, walkability, etc.

7. Benefits of Exclusive Representation

Your Agent will prepare a contract outlining their services so they can commit to assisting you with your home purchase transaction. As your exclusive Agent, they will be assisting you with many tasks. Below is just a brief overview of some of the areas where Agents demonstrate their value and contribute to a successful purchase.

• Provide an overview of the current market dynamics and challenges

• Market insight and local knowledge

• Create a purchase strategy

• Setup listing alerts

• Access to listings and property tours

• Schedule property tours, both privately and of open homes

• Provide access to off-market, coming soon, and Sotheby’s exclusive selections, as available

• Review of disclosures and reports on selected homes

• Evaluate and negotiate the offer

• Negotiation skills and advocacy

• Guidance on inspections and due diligence

• Post-purchase support and assistance

8. Agent Value – 10 Important Benefits

When you hire a real estate agent and pay them a commission, you’re not just compensating them for the time and effort they put into one transaction; you’re also benefiting from their expertise. Here are some of the reasons why your designated agent is valuable:

1. Expert Market Knowledge: Real estate Agents have in-depth knowledge about the local real estate market, including pricing trends, neighborhoods, and what buyers or sellers are looking for. They can use this knowledge to guide you to make informed decisions.

2. Negotiation Skills: An experienced Agent has honed their negotiation skills over many transactions. They can help you negotiate the best price and terms for you.

3. Networking: Real estate Agents have a vast network of professionals, from inspectors to mortgage brokers, which can be invaluable during the buying or selling process. Their relationships can speed up processes or uncover opportunities you might not find on your own.

4. Understanding of Forms: Real estate transactions involve complicated contracts and documents. An experienced Agent understands the ins and outs of these contracts and can help you navigate them, reducing the risk of costly mistakes and potential liability down the road.

5. Problem Solving: Every real estate transaction has its unique challenges. An experienced Agent has likely encountered and overcome many hurdles and can use that experience to address any issues that arise.

Agent Value – 10 Important Benefits (continued)

6. Time-Saving: While you might see the Agent during showings or closings, there’s a lot of behind-the-scenes work they do – from researching properties, coordinating with other Agents, and handling paperwork. Their expertise streamlines the process, saving you time.

7. Emotional Buffer: Buying or selling a home can be emotionally charged. An Agent serves as a buffer, ensuring that emotions don’t cloud judgment or derail a transaction.

8. Future Guidance: Many Agents provide value even after a transaction is complete, offering advice on home improvements, market trends, or when might be a good time to buy or sell again.

9. Risk Mitigation: Mistakes in real estate can be costly. Whether it’s missing a disclosure or not understanding a contingency in a contract, an experienced Agent can help mitigate these risks.

10. Continual Learning: The real estate market and its regulations are continually evolving. Experienced Agents invest in ongoing education and training to stay updated, ensuring they provide the best service to their clients.

11742 Brookbend Drive | Des Peres, Missouri

9. Locating and Viewing Properties

Our Agents view properties continually, follow local market dynamics, and are here to guide you in finding the right home. Your Agent can assist by:

• Set up automated Listing Alerts that meet your search criteria

• Present off-market or pre-market listings as they arise

• Communicate with Agents to schedule and set up private showings

• Map out and tour properties together

• Recommend properties that are available to view at Open Houses

• Provide monthly Market Reports

• Review the pros and cons of each home after viewing

12 Robindale Drive | Ladue, Missouri

10. Evaluating Selected Properties

We can help you assess how your selected property compares to others on the market and to homes recently sold. One benefit of having a trusted real estate advisor is their familiarity with required disclosures, recommendations for inspectors, and experience with reviewing reports.

• Your Agent will request the Disclosure Package, Preliminary Title Report , and other information from the listing Agent and or escrow company

• Discuss with your Agent if you want to get any additional inspections or reports and determine the timeframe for needed contingencies

• If the home is in an HOA, and the Seller has not provided the HOA docs, the Agent can explain the typical timing of the process to receive and review the documents

• Recommend an Escrow and Title Company

11. Writing Competitive Offers

When we locate a property that meets your needs, we can provide information to assist you in determining an offer price and terms, and then negotiate on your behalf to help you win the sale.

• Communicate with the Listing Agent to get the best information possible about competing offers and sellers’ preferences regarding terms, and the timeline for offer submission.

• We can review comparable sales and discuss the price and terms that can best position your offer.

• Our Agents can prepare a compelling offer with the relevant and required advisories

PRESENTING YOUR OFFER

Representing you in the best light can be helpful in securing the winning offer. What may not be evident at the outset is the value of having an Agent with a trusted brand and good reputation in the eyes of other Agents, who are often a key factor in helping their clients assess competing offers.

• Present the offer in person or by email in a timely manner

• Maintain communications and forward any counter-offers for review

• Negotiate on your behalf and write any addenda or subsequent counter-offers as needed.

12. Opening Escrow

Congratulations! This is just the start of the transaction process. Your Agent will guide you through the requirements that are contained in your accepted offer.

• Open escrow at the selected Title Company

• Ensure you understand wire fraud concerns and that you communicate directly with your trusted Escrow Officer regarding any wiring, account, or transfer information

• We will maintain a secure transaction file with all the ongoing required documentation and upload the Initial Deposit receipt to the file

129 Chippenham Lane | Chesterfield, Missouri

13. Physical & Other Inspections Contingencies

There may be numerous contingencies in a transaction, and our Agents will help you navigate through them. If you have an Inspection Contingency this will allow you to order further inspections and reports to get more information about the property.

• Your Agent can recommend or help you locate inspectors for all the inspections you want to undertake

• Review Inspection Reports with you and negotiate requested repairs

14. Completing the Closing Process

• We can recommend movers, interior designers, landscapers, general contractors, gardeners, cleaning services, and home maintenance services, as needed

• Arrange for a final walkthrough of the property if requested.

• Provide resources for a Home Warranty Policy

• We can accompany you to the closing signing

• Upon recording the title, provide keys

15. A Lifelong Relationship

My commitment to exceptional service doesn’t conclude with the final paperwork; instead, it evolves into a lasting partnership. I understand that your real estate needs may change over time, and as your buyer’s agent, I am here to support you in your evolving journey.

440 Hunters Hill Drive | Chesterfield, Missouri

Glossary of Real Estate Terms

APR The interest charged for borrowing that represents the actual yearly cost of the loan, expressed as a percentage. It reflects the interest rate of the loan plus fees paid to obtain the loan.

CLOSING DISCLOSURE A 5-page summary statement setting forth a borrower’s final mortgage loan terms and closing costs, including loan term, monthly payments, etc. Must be delivered at least 3 business days before closing.

CONFORMING LOANS Mortgages that conform with the criteria set by the Federal Housing Finance Agency for purchase by either Fannie Mae or Freddie Mac.

CONVENTIONAL LOAN Loans eligible for purchase by Fannie Mae & Freddie Mac, sometimes called Conforming Loans.

DODD-FRANK A series of federal regulations passed to prevent future financial crises. It established new government agencies and was designed to protect consumers and taxpayers from egregious practices like predatory lending.

EARNEST MONEY A sum of money given to bind an agreement or an offer made to show good faith.

EASEMENT The right, privilege, or interest of one party on the land of another.

EQUITY The interest one has in real property as an owner above all existing indebtedness.

ESCROW A depository for papers, funds, and instructions with a third party who is then obligated to carry out all instructions, providing they are in complete agreement.

FANNIE MAE The Federal National Mortgage Association (FNMA), whose primary function is to buy and sell FHA and VA mortgages in the secondary market for mortgage loans.

FHA LOAN Federal Housing Administration loans are insured by the federal government. Interest rates can be lower than for conventional loans, but the real advantage lies in the low down payment requirement, usually under 5%.

FIXED-RATE MORTGAGE Interest rate and monthly payments remain the same for the entire term of the loan.

GENERAL WARRANTY DEED A deed in which the grantor certifies that the title conveyed is free of defects that may have arisen before or during the time he owned the property.

GIFT LETTER A letter prepared for the mortgagee which verifies that the sums of money being used as the down payment was a gift from a relative, made without obligation of repayment.

HOMEOWNER’S ASSOCIATION An association formed to promote the common welfare of all homeowners in the same subdivision; e.g. a condominium building.

JUMBO LOAN Any mortgage loan amount over $766,550 in Missouri (2023) also called Non-Conforming Loans.

LEGAL DESCRIPTION A description of the property that can be recognized by law and by which the property in question can be definitely located by reference to recorded maps.

LISTING AGREEMENT An agreement between a real estate broker and the owner of the property which authorizes the broker to assist in the sale of the property, by advertising it and showing it to prospective buyers.

LOAN COMMITMENT An Agreement by a lender to lend a borrower a specified sum of money on certain specified terms listed thereon.

LOAN ESTIMATE A summary statement that provides important information to borrowers within 3 days of application, including interest rate, monthly payment, and closing cost for the mortgage loan.

MARKET PRICE The price a property should bring based on comparable sales of similar properties within recent months.

MORTGAGEE The lender in a mortgage agreement.

MORTGAGOR One who makes a mortgage; the borrower.

NON-CONFORMING LOANS Mortgages that do not meet Fannie Mae or Freddie Mac’s criteria for purchase. These are commonly referred to as jumbo loans.

PERSONAL PROPERTY Moveable property not permanently affixed to land or buildings.

POINTS Loan discounts collected by mortgage lenders as a means of increasing their yield on real estate loans. A point is 1% of the amount of the mortgage.

PRE-APPROVAL LETTER A document from a lender stating that the lender is willing to lend a certain amount of money to a borrower based on certain information received. Typically these are not binding.

PREPAYMENT CLAUSE Provision allows loan payments to be larger than the amount specified in the note.

PRIVATE MORTGAGE INSURANCE (PMI) An insurance premium charged by a lender to buyers with less than 20% down payment. PMI insures the lender in the event that the buyer should default on the loan.

PRORATION To divide proportionately among the parties involved, based on a fixed date of computations, their share of an obligation paid or due; e.g., taxes, water, sewer, rents.

REAL PROPERTY Land itself, the improvements thereon, and the rights, title, and interest one has in it.

Glossary of Real Estate Terms (continued)

RESPA Acronym of the Real Estate Settlement Procedures Act, federal legislation passed to regulate disclosure of the buyer’s settlement costs.

RIGHT OF SURVIVORSHIP The right to acquire the interest of a deceased joint owner; distinguishing feature of a joint tenancy.

SURVEY The process by which a parcel of land is measured and its area is ascertained.

TITLE INSURANCE Insurance written by a title company to protect the property owner against loss if the title proves unsound.

TRANSFER TAX The tax required by a governmental agency when real property is transferred from one party to another.

TRID An acronym that stands for TILA-RESPA Integrated Disclosures. This is a federal consumer protection law that requires lenders to disclose certain types of key information to borrowers.

USDA Purchase and guarantee by the US Department of Agriculture (Property must be located in a qualifying rural area).

VA LOAN Mortgages eligible for purchase and guarantee by the Veterans Administration (For qualifying veterans only).

VARIABLE RATE LOAN A loan in which the interest rate rises or falls according to an indicator of market interest such as the prime lending rate.

VARIANCE A permit exempting an owner from a particular zoning ordinance. The owner of the property must prove exceptional circumstances or hardship to justify the exemption.

ZONING A method of regulating the use of real estate by dividing a county or municipality into zones or zoning districts, and then designating the purposes for which land in each zone or zoning district may be used.

In Summary

Having buyer representation is like having a trusted ally in the complex journey of purchasing a home. Their knowledge, negotiation skills, and commitment to your best interests make the entire process smoother and more successful. When making one of the most significant financial decisions of your life, having a dedicated professional on your side is a wise investment.

A TRULY FULFILLING LIFE STARTS WITH A HOME THAT INSPIRES YOU.