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KELLER WILLIAMS CAPITOL PROPERTIES

Home Buyer’s Guide

w w w. Ne l l i s Group. c om

Map Of The Families We Have Helped Move Since 2004

Map Courtesy Of Google Maps 2

Dear Friends, I grew up in a military family where service was modeled from childhood. As a result of being relocated with the Navy, our family learned what it was like to transition to a new area, find the right schools, and discover the perfect community in a short period of time.

My family channeled our commitment to service and experience into creating a real estate agency that takes care of each and every one of our clients. Our team’s priority is to “always put the client before the sale”. We call that the Nellis Group Experience.

Since 1983, the Nellis Group has been providing this experience to thousands of families and individuals in the D.C. metro area. In that time we have helped over 3,000 families buy or sell their home. We plan to grow and continue to impact the local community for generations to come.

Thank you for giving us the opportunity to work with you. Our team looks forward to helping you buy & sell your next home. We hope you enjoy your Nellis Group Experience.

Sincerely,

James Nellis, CEO

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From Our Clients

“No question about it. Clearly the best service we have had in the sale and purchase of our last six properties. Every requirement was exceeded. We highly recommend The Nellis Group, you will not be disappointed. “Absolutely outstanding staff – (they were) efficient, friendly, and always asking after needs and meeting them professionally.”

John & James Gingrich

“EXCELLENT! My agent was incredibly good – my family and I are thankful to have met James Nellis of The Nellis Group. He is confident and reassuring.Thanks, Nellis Group, for sending him our way!

“Very good support staff, friendly and cordial. You all are great!”

Andre Muange

“Nicole worked at all hours of the day to get things done. She worked out problems and made sure we were happy.”

Austin & Michelle Reinshuttle

“We were very pleased to work with James and would recommend him to others. The support staff was very patient, knowledgeable and excellent. Everyone was very kind and helpful” Claudia Covell

“We were impressed with the teamwork shown by the Nellis Group. Whenever James was not available either Carol or Nicole were quick to step in so that there was no waiting. They too were sincere and patient with us. Also the office staff was very helpful throughout the whole process.”

K. Nareshkumar

“Extremely professional and knowledgeable. Had our best interests at heart. I felt like they cared about finding the right house for us. Was always an advocate for us every step of the way. Extremely responsive. Can’t say enough positive things, best experience we’ve ever had with an agent.”

Keith & Wendy Jolly

Table Of Contents Section I: The Nellis Group Advantage Introduction To The Nellis Group Advantage........................................................................................................06 Mission Statement & History....................................................................................................................................08 Core Values.................................................................................................................................................................09 Future Vision & Experience......................................................................................................................................10 Customer Service & Success......................................................................................................................................11 Dynamic Team Advantage.........................................................................................................................................12 Client Assistance Programs.......................................................................................................................................13 Section II: Starting The Process Introduction To The Process....................................................................................................................................14 Benefits Of A Buyer Specialist.................................................................................................................................16 Becoming A Nellis Group Preferred Buyer............................................................................................................17 Section III: Finding Your Ideal Home Introduction To The 5 types Real Estate Sales ......................................................................................................18 New Construction/for sale by owner .....................................................................................................................19 Finding Homes Online & Researching The 5 Pillars............................................................................................20 In Home & Community Research...........................................................................................................................21 Section IV: Reserving Your New Home Introduction To The Home Reservation Process...................................................................................................22 Understainding Pricing & Devloping A Reserve Strategy....................................................................................24 Developing An Offer..................................................................................................................................................25 Section V: Negotiations Introduction To Negotiation Stages & Exit Strategies...........................................................................................26 The Initial Stages Of Negotiation.............................................................................................................................28 The Appraisal..............................................................................................................................................................29 Section VI: Closing On Your Home Final Considerations & Tasks...................................................................................................................................32 Closing Costs..............................................................................................................................................................33 Section VII: The Nellis Group Experience Charity Outreach.......................................................................................................................................................36 Nellis Group VIP Client Program............................................................................................................................37 Section VIII: Reference Important Terms........................................................................................................................................................38 Glossary.......................................................................................................................................................................40

THE NELLIS GROUP - A TRUSTED LOCAL BRAND Clear Mission

Deep Community History

Strong Core Values

Proven Track Record

Continued Growth

Real Estate Solutions

Realtor Specialists

Licensed Appraisers

Negotiation Specialists

Contracts Coordinator

Client Care Representative

Feedback Coordinator

Marketing Director

Marketing Specialists

Interior Designer

Local Lenders

Advantage Partners

Online Support Services

WWW.NELLISGROUP.COM/ADVANTAGE 6

Section I KELLER WILLIAMS CAPITOL PROPERTIES

The Nellis Group Advantage The Nellis Group Advantage highlights the essential elements that make the Nellis Group one of the top Real Estate teams in the D.C. Metro area. We combine a unique set of core values with our long history of serving the local market to create an effective results driven Real Estate company. The Nellis Group has received coveted national awards for their success in the industry and has been honored by local charities for their work in the community.

A Trusted Local Brand In Real Estate Since 1983

Mission Statement To Invest In People’s Lives As They Invest In Real Estate The History Of The Nellis Group The Beginnings: Vicki Nellis started the Nellis Group in 1983 after her husband Jim’s military transfer brought the Nellis family to Northern Virginia. Vicki’s passion for people and her ability to understand the needs of consumers helped her to quickly establish a referral based business.

Expansion & Growth: As the company grew, Vicki’s husband Jim, her children James and Nicole, and Nicole’s husband Keith joined the family business. A select team of agents and specialists were brought on to help provide clients with the ultimate real estate experience.

Next Generation: Today, with James Nellis carrying on Vicki’s legacy as the CEO of the Nellis Group, the team has expanded to also serve clients in Washington, D.C. and Maryland. With several specialized team members and business divisions, the Nellis Group has grown from an individual Realtor to a dynamic business enterprise.

As our company adapts to the latest real estate trends, we will continue to grow and expand on our practices by carrying on the legacy that Vicki Nellis started in 1983.

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WWW.NELLISGROUP.COM/LEGACY

Core Values Faith Our faith impacts everything that we do as a company. It is the essence that drives our actions and is the impetus for how we conduct ourselves. Every client is viewed as a blessing and we are thankful to be able to serve you.

Leverage We utilize each team member to deliver an educational, inspiring and smooth transaction. Each member works exclusively for Nellis Group clients. The combination of knowledge, skills, and a proven track record produces a successful real estate experience.

Excellence Our team researches the market, analyzes the latest real estate trends and adapts to changing conditions in the global real estate world. We seek to exceed the expectations of our clients in pursuit of excellence.

X-Factor Our team is unlike any other real estate company in the area. We are proactive at seeking out unique team members that will provide the best possible experience for our clients.

Our Core Values Guide Us In Business And Life

A Vision For The Future The next generation of the Nellis family is leading the company into the future.

4,000 4,000 4,000 We have served over...

...families and by 2018 our goal is to serve 1,000 more

An Experienced Team The Nellis Group Realtors have over 100 years of combined Real Estate experience...

...The Typical Realtor has just 13 *NAR 2013 Statistcs

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Relationships & Customer Service The Nellis Group relies on providing the absolute best customer service both during and after your transaction. We take great pride that over 84% of our business comes from referrals.

84%

Of Business From Referrals

A Track Record Of Success We help a family move every

3 Days

The Nellis Group helps over 100 families move per year. According to the National Association of Realtor Statistics 2013, the typical Realtor helps just 12 families move per year.

124/Year Typical Realtor

12/Year 11

Dynamic Team Advantage

Licensed Appraisers Pricing specialists that perform a Mini-Market Analysis to ensure you are making educated and strategic offers.

A cohesive team of specialists that work together to bring you the best Real Estate experience possible.

A team of licensed Realtors and community experts that truly know the D.C. Metro area’s communities, schools, parks, home styles and transportation.

Contracts Coordinator

Negotiation Specialists

Local Lenders

We promise to be defenders of your equity as we help you get the best price and terms during the transaction.

Our network of local lenders offer our clients a special Lender Advantage Program (LAP) to help them secure beneficial rates and lower closing costs.

Advantage Services

Online Support Services

Analyzes and tracks every date, contingency, and element of the contract in order to ensure a smooth, seamless transaction.

Advantage Contractors Our network of trusted contractors will help with home issues including roofing, flooring, HVAC, windows, electricians, plumbers & more.

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Realtor Specialists

Our network of local service providers that help with ancillary issues: attorneys, interior designers, accountants, financial advisors & more.

Our clients leverage our Online Transaction Management and E-Signature that streamline the process and add convenience.

Buyer Assistance Programs & Solutions

Specialists with experience dealing with luxury homes and the intricacies that are unique to this type of transaction.

A program that leverages our trusted local lenders to lower closing costs and save buyers money at the time of settlement.

If you are buying or selling in another area, we connect you to a local expert from our national network of experienced Realtors.

Updates and information on buying & selling investment properties in one of our market researched “Top Investment Areas�.

Educating the consumer on local lifestyle, community amenities, and types of homes in the market for national & local companies.

Access to our trusted network of contractors and service providers that can help you with ancillary services.

A specific system to determine if a home is a viable for a short sale & negotiation experts with special access to bank asset managers.

Specialists and negotiators with specific experience dealing with banks and the complexity of REO (Real Estate Owned) transactions.

Special benefits after closing a transaction including charity donations, free contests, prizes, special events, and more.

Certified MilRES specialists that are specifically trained on all aspects of buying a home for active and retired military.

Ideal for the buyer that is still 6 months - 1 year away.

You are set up with market updates & community info to prepare you once you are ready to buy.

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George Washington Masonic Temple, Old Town Alexandria, Virginia Become A Nellis Group Preferred Buyer

Enroll In The Nellis Group Advantage Partners Program (APP)

BUYING PROCESS

Home Pre-Selection & Research

Fill Out Buyer Survey

Evaluate Homes Online

Get Pre-Approved Initial Consultation

Neighborhood Research

Door Knocking

Community Drive-By

Visit Homes With Your Nellis Group Realtor Specialist Develop Negotiation Strategy

Make Your Offer

Review Market Analysis

Choose Your Home

Offer Rejected Home Reserved

Negotiate & Counteroffer Inspections & Repair Negotiation

Review Association Documents

Lender Ordered Appraisal

Lock Interest Rate With Lender

Mortgage Approval Exit The Contract

Exit The Contract

Exit The Contract

Three Ways To Walk Away From The Contract

Settlement Day

Home Ownership

Final Inspection Choose A Charity

Order Utilities

Property Survey

Remove Financial Contingencies

Title Search

Nellis Group VIP Program

Section II KELLER WILLIAMS CAPITOL PROPERTIES

Getting Started With The Nellis Group The Nellis Group will make the experience an educational process as they walk you through all the steps towards a successful transaction. Our effective and measurable steps all lead to the goal of you moving into your new home. The flowchart will give you a visual representation of the entire process. We hope you are excited to get started.

Choosing A Buyer Specialist The most important thing you need is to choose an experienced Realtor that will meet all your needs. A Nellis Group specialist is a community expert focused on the 5 Pillars of Real Estate and negotiating on your behalf throughout the entire transaction.

What Your Buyer Specialist Should Do A basic buyer specialist will...

• ...get compensation typically paid for by the seller from the net proceeds of the transaction.

• ...understand the contract and represent you.

An advanced buyer specialist will...

• ...have experience with the buying process.

• ...be able to assist you with different types of transactions.

• ...negotiate your contract.

An ideal buyer specialist will...

• ...view over 100 homes per month & know the local communities in the market.

• ...employ a licensed appraiser as a pricing specialist.

• ...have a Lender Advantage Program (LAP) to help you get the best financing.

• ...have a proven 20+ year history of excellence and a strong set of core values.

• ...have business divisions and specialized programs to help you.

• ...be an expert on the 5 Pillars of Real Estate • ...be able to assist you with the 5 transactions (Traditional, FSBO, REO, Short Sale, New Home).

We are confident that the Nellis Group is the ideal buyer specialist for you.

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Becoming A Nellis Group Preferred Buyer The Nellis Group Preferred Buyer agreement is a two way commitment. We commit all of our resources to you and you commit to work with the Nellis Group as your exclusive Realtor. We ask that you sign this agreement so everyone can be assured both parties are working diligently to achieve a common goal. The agreement gives you a guarantee that we will be working for you and not the seller.

How To Become A Preferred Buyer Take our online buyer survey

Phone interview

Speak to a lender & get pre-approved

Why Do You Need To Get Pre-Aproved?

• Know your estimated monthly payments in advance • Figure out the best loan option early in the process • Offers you write are viewed more seriously by today’s sellers

In office consultation

Sign the exclusive right agreement

Our unique Lender Advantage Program gives you access to one of our preferred lenders that will be able to leverage specific intricacies of the lending process to aid in negotiations and to save you the most money possible at time of settlement.

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The 5 Pillars Of Real Estate

The 5 key factors that will determine the resale value of your investment.

Location

Schools

Communities

Crime

Convenience

No buyer regardless of price will ever achieve the maximum levels in all 5 pillars. For example, if you want to be convenient to the metro, you may have to lower your expectation of schools (lower ratings) or crime (higher crime rates). If you want higher ranked schools or a planned community, you may have to sacrifice on convenience.

Section III KELLER WILLIAMS CAPITOL PROPERTIES

Finding Your Ideal Home Research is an important part of the procedure and is a combined effort by you and your Nellis Group Realtor Specialist. During this process, we encourage every buyer to look outside the 4 walls of the home and leverage our 5 Pillars of Real Estate to optimize their resale value.

Nellis Group Premium Online Search A search tool designed to show you all of the potential homes that are on the market. This unique solution is available on the computer, tablet and smart phone.

Search for homes online with special NG tools Sources: The Nellis Group Premium Home Search

Receive updates on new homes on the market Sources: Your Nellis Group Realtor Specialist

Online Community Research Use different online sources to research how each of the 5 Pillars of Real Estate factor into your home purchasing decision. In the DC Metro area it is rare to get everything, so you need to find a good balance.

5 P I L A R S O F R E A L E S T A T E

LOCATION

View traffic & aerial maps

COMMUNITY

Research community amenities & information

Sources: Google Maps, Bing Maps

Sources: Nellis Group Community Pages, HOA Websites

Study schools and school districts

SCHOOLS

Sources: US News & World Reports Education Website

CONVENIENCE CRIME

Plan your commute and find out what is local Sources: WMATA Metro/Bus Website, Slug Lines, DriveScore

Examine crime in the surrounding area Sources: Police Department Websites, Newspaper Crime Reports www.NellisGroup.com/HomeSearch

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In-Person Home & Community Research Visit your potential neighborhoods to look around and get a feel for the area. See what you like about it and more importantly what you don’t like about the community.

Complete a community drive-by Immerse yourself in the community

Go door knocking Ask neighbors about the pros and cons of the neighborhood

10 Questions To Ask The Neighbors 1. What do you like the best about living here?

6. How are the schools?

2. What do you like the least about living here?

7. How is the crime in this area, have there been any incidents?

3. If you could change one thing about the street, what would it be?

8. How quiet is it? Are there any nuisances?

4. Do all the neighbors get along?

9. Why is the seller is selling the house?

5. Have you ever noticed anything odd about this house or yours?

10. Has the seller ever complained to you about the house?

Make a commute practice run

Evaluate the traffic, bus schedule, metro, slug lines

Visit homes with your Realtor Specialist Discover the benefits of each home

Don’t be afraid if the first home is the right fit. By studying your needs and wants the Nellis Group can discern your best fit in a home and make the most efficient use of your valuable time.

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Reserve Your Home Today

Determine What The Home Is Worth Select Your Offer Strategy Evaluate Your Negotiation Strategy Make An Offer Negotiate Counteroffers

RESERVED

Section IV KELLER WILLIAMS CAPITOL PROPERTIES

Reserving Your New Home Once you reserve your home, the seller cannot sell the home to another party even if that party offers more money. It is a way to “save� the home while you examine all of your options. It is important that you reserve your home first, and then when the time comes, consider one of the 3 exit strategies of a contract.

Understanding Price & Developing A Reserve Strategy SALES PRICE - What Is The List Price For The Home?

This is the official listed price of the home as determined by the seller. This price may be above, equal to, or below market value depending on the sales strategy of the seller.

TARGET PRICE - What Is The Home Worth?

This is an estimate on the actual market price of the home. It is determined by the Nellis Group Pricing Specialist/Licensed Appraiser who runs a Mini Market Analysis (MMA) to develop the most accurate price possible. This value will act as a starting point for your pricing strategy.

3 Ways To Find The Estimated Target Value

Nellis Group MMA (Most Accurate)

A Mini-Market Analysis performed by a Licensed Appraiser.

Typical Realtor CMA (Less Accurate) A basic computer generated comparative analysis performed by a Realtor, not an appraiser.

Generic Online Estimates

(Least Accurate)

Inaccurate computer generated price estimates that do not take into account all factors of the actual market.

BUYER TIP Take a look at the last 5 homes that were sold in the neighborhood. Compare their list price versus their sold price. You will find they generally sell at 95%-98% of the list price. This can help you get an approximate figure of what the home you are looking at will sell for in today’s market. (May not be true in every market).

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RESERVE PRICE - What Will You Offer For The Home?

This is the actual price that you will submit to the seller during your initial offer. The reserve price is based on your strategically selected pricing and negotiation strategy taking into account a combination of both the target price and the sales price.

12 Question Qualification Survey The first thing we do before making the official offer is to assess the needs of the seller, evaluate flexibility on the price, and determine the experience of the other agent through our proven 12 question qualification survey. This gives every buyer the insight into which type of offer to make on the home.

Developing Your Offer When we work together to develop an offer price, we want to make sure we remain aggressive

Aggressive For Reserving

Aggressive For Value Getting the best terms, conditions, and value for the home.

Making sure that nobody else reserves the home before you do.

When There Are Few or No Offers

When This Is Your Dream Home

A strategy employed by the Nellis Group is called the Prince vs Pauper offer strategy.

Prince vs Pauper

Pauper Lower Offer Few Offers

Prince

Sales Price

Higher Offer Many Offers

Remember that every case is different and will have its own intricacies that impact your offer strategy.

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Negotiation Stages & Exit Strategies

There are 3 phases of the process where a contract can be negotiated Initial Phase

3 Phases Of Negotiation Inspections Phase

Appraisal Phase

Homeowner Docs Phase

3 Exit Strategies

There are also 3 exit strategies where a buyer can protect themselves in a contract

Section V KELLER WILLIAMS CAPITOL PROPERTIES

Negotiations At the Nellis Group, we promise to be defenders of your equity.

We do this by having sound and proven negotiation skills that will net you the best value and terms for each contract. Your Realtor will guide you through this process and work directly with you to help you achieve your goals.

Once You Send In Your Initial Offer, The Negotiation Process Begins Initial Negotiation Phase When you make an offer on a home, your Realtor specialist will work with you to negotiate any counteroffers from the seller. The primary objective is to secure you the best terms.

8 KEYS TO NEGOTIATING THE BEST OFFER Leverage Days On Market

Offer Competition

Realtor Reputation

12 Question Survey

Lender Advantage Program (LAP)

Emotional Appeal (A Personal Letter)

Settlement Timeframe Proof Of Funds

Inspection Phase After your offer is accepted and your home is reserved you will want to order a series of inspections to ensure everything in the home is in the proper order. The Nellis Group recommends every buyer orders a home inspection and possibly other inspections on the home.

Home Inspection

Average Price: $400 - $600

Roof & Attic Dwelling Exterior

Dwelling Interior

Structural System

Heating/Cooling

Electrical

Radon Testing $150 - $200

Plumbing

Termite Testing $50 - $100

Lead Testing $250 - $500

Environmental Testing $400+

If after the inspections you realize this isn’t the right home, you can utilize the inspection phase exit strategy.

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CLUE REPORTS A CLUE (Comprehensive Loss Underwriting Exchange) Report is basically a CarFax for a home. It lets you know all of the claims that were placed on that home so you can determine if there are any “hidden� problems with the property.

Homeowner Document Review Phase If your home is part of an HOA or condo association you will have 72 hours to review the HOA documents and policies. You can opt to exit the contract at this phase.

Lender Appraisal Phase A bank appraisal is required by the lender to ensure they are lending you the correct amount of money for the home. If this value comes back below the reserved price there are 4 possible outcomes shown on the right which includes the final exit strategy of the contract.

If the appraisal comes back even to or above the reserved price, you will be able to remove your appraisal contingencies and the process moves along.

What If The Home Appraises Below Sales Price

BUYER ADV

SELLER ADV

COMPROMISE

Seller reduces the sales price to the appraisal price

Buyer brings additional funds to cover the difference

Seller reduces the price, buyer brings some additional funds

Buyer can walk away from the contract without penalty

Seller Buyer

Seller Buyer

Seller Buyer

Seller Buyer 29

W W W . N E L L I S G R O U P. C O M

Section VI KELLER WILLIAMS CAPITOL PROPERTIES

Closing On Your New Home

Now that your appraisal contingency has been removed and you are closing in on owning your new home the Nellis Group team will help you complete all the final steps so that you have a successful settlement.

Final Considerations Remove Financial Contingencies

Ask your Nellis Group Realtor Specialist whether it is the proper time to remove your financial contingencies.

Performing A Title Search

Our Advantage Partners will make sure the seller legally owns the property, find any encumbrances and ensure it is free of any defects or liens for title insurance.

Conduct A Property Survey

A property survey should be conducted to see the legal property boundary lines and easements that could impact the property.

Optional Considerations Homeowner / Hazard Insurance

Home Warranty

Many buyers choose to purchase homeowner’s insurance in order to protect their home from any unforeseen circumstances.

This optional warranty covers the home for 1 year after purchase, alleviating stress of a big expense.

Final Steps Ordering Your Utilities

Final Walkthrough

The Nellis Group provides contact info for all utilities so you can turn them on the day of settlement.

You will investigate the property and make sure all repairs were completed per the contract.

Closing Costs On the day of settlement you will have to pay your closing costs of the transaction.

The lender will give you a financial worksheet ahead of time that will let you know more details about specifics. If you are using the Nellis Group LAP (Lender Advantage Program) we require them to send you the final numbers 48 hours in advance.

Lender Fees Tax & County (Recordation)Fees Title Insurance

Optional Owner’s Coverage

Prepaids / Escrow

Specific fees associated with a lender.

A “sales tax” for purchasing your home.

Your lender will require you to purchase title insurance or they will not provide you with the loan. This protects their interests if you stop making payments and gives them first position to acquire the property.

This recommended but optional coverage protects you as the homeowner for clean title.

This is money collected by the lender so you are covered with insurance and tax payments for the next time they are collected on the home. The lender is required to pay these bills if you escrow as part of your monthly payment.

Settlement Day This is the day you have been waiting for since your first meeting with the Nellis Group. On the day of settlement, you will pay applicable closing costs & sign your new deed.

CONGRATULATIONS ON YOUR NEW INVESTMENT! 33

W W W . N E L L I S G R O U P. C O M

Section VII KELLER WILLIAMS CAPITOL PROPERTIES

The Nellis Group Experience Your journey with the Nellis Group does not end when you close on your home. We want to continue our relationship with you and keep you informed of the real estate market and the local community.

Mission Statement To Invest In People’s Lives As They Invest In Real Estate

Charity Outreach The Nellis Group is committed to making a positive impact in the community. Whether it be through monthly tithing, special charity events, working closely with our charity partners or our special client donation program. We have been blessed with a great business and we find it is important to give back to the community. Whenever you buy or sell a home with the Nellis Group, we will donate a portion of our commission to one of the Nellis Group charity partners (listed below) in your honor.

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Nellis Group VIP Program Once you buy or sell a home with the Nellis Group you are automatically enrolled into our NG VIP client benefit program. As a member of this program you will receive access to the benefits below.

Redskins & Nationals Ticket Consideration Monthly Giveaways & Contests Home Anniversary Gifts Birthday Wishes & Prizes Charity Donation In Your Honor Invitation To Special Festivals & Events Moonbounce Rental Sweet Success Free Holiday Pie Much More!

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Important Terms 5 Pillars Of Real Estate

Nellis Group Advantage

Preferred Buyer Agreement

The 5 factors that a buyer needs to review before choosing a home. The Pillars are: Community, Convenience, Crime, Location and Schools.

The Nellis Group Advantage highlights the essential elements that make the Nellis Group one of the top Real Estate teams in the D.C. Metro area.

A two-way agreement where we commit to our clients and they do the same so we can both work together to find the best home with the best terms.

Advantage Partner Program (APP)

This optional program offers you access to a select group of experienced companies that can give you exceptional service during different phases of the home buying process.

Lender Advantage Program (LAP)

Gives you access to one of our preferred lenders that will be able to leverage specific intricacies of the lending process to aid in negotiations and to save you the most money.

Mini Market Analysis (MMA)

Reserving A Home

Contract Exit Strategy

A comprehensive market analysis performed by a licensed appraiser giving you a more accurate pricing of the home.

A way to save a home and remove it from the open market.

A way to legally exit a contract for a home you have reserved without penalty.

KELLER WILLIAMS CAPITOL PROPERTIES

Reference FAMILIES MOVED WITH THE HELP OF THE NELLIS GROUP We look forward to making you our next success story...

Glossary Adjustable Rate Mortgage (ARM): A mortgage whose rates change during set periods of the mortgage based on the market’s interest rate.

Appraisal: The process by which the lender determines how much the home is worth to determine mortgage details.

Balloon Mortgage: A mortgage that offers low rates for a period of time before it increases or is refinanced.

Buyer Agent: A licensed Realtor who offers you professional representation during a home buying transaction.

Closing Costs: The payments that are due on settlement day.

C.L.U.E. (Comprehensive Loss Underwriting Exchange) Report: A report that acts like a Carfax report, and let’s you know if the house has had any serious issues in the past.

FHA (Federal Housing Administration) Loan: A loan protected by the government.

Financial Contingencies: Time frame for purchaser to secure full loan approval.

Fixed Rate Mortgage: A mortgage that has the interest rate locked-in for the full term of the loan.

For Sale By Owner (FSBO): A person who is selling their home without professional representation.

Foreclosure: When a homeowner defaults on their mortgage, their ownership is terminated and the bank takes the property.

Home Warranty: Optional coverage that protects the buyer from any unforeseen mechanical problems with the home.

Homeowner’s Insurance: Hazard Insurance protects the home and it’s contents.

Commission: An amount collected by an agent for services rendered.

HUD-1: A settlement statement that discloses all the closing costs.

Conventional Loan: A private loan that is not guaranteed by the US Government and generally has 15, 20, 0r 30 year terms.

Inspection Phase: The time when a buyer orders the necessary inspections to ensure the home is in acceptable condition.

Deed: A legal document transferring ownership of a property.

Good Faith Estimate (GFE): An estimate of the closing costs given to you by your lender ahead of time.

Default: A failure to pay mortgage payments.

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Discount Point: Money paid to reduce the interest rate of the mortgage.

Home Inspection: A procedure ordered by the buyer to make sure the home is safe, structurally sound, and in working order.

Down Payment: Money paid up front in cash that reduces the loan amount.

Lien: A legal claim for a property that is satisfied on the sale date.

Glossary Lock-In: Protection from changes in interest rates.

Market Price: The amount of money the home is worth based on current local conditions.

Realtor: A licensed professional who can represent buyers.

Mortgage: A lien on the property that promises you will pay.

Real Estate Owned (REO): A sale where the bank is the direct seller of the property. (foreclosure) Refinancing: Paying off one loan while obtaining another. Generally done to secure a lower interest rate.

Offer: A document given to the seller to purchase the home including sales price, terms, and contingencies.

RESPA: Laws requiring lenders, Realtors, and all parties to disclose all information.

Pre-Approval: Qualifying for a mortgage before the home search so you can be viewed as a serious buyer.

Sale-Leaseback: An arrangement where the buyer allows the seller to live in the home for a certain period of time at a certain rate.

Prepaids/Escrow: A closing cost paid to protect the lender for the first month of mortgage and taxes.

Prime Rate: The interest rate charged by lenders and banks.

Principal: The amount borrowed from a lender that is subject to repayment with interest.

Premium: Amount paid to maintain insurance coverage.

PITI: Principal, Interest, Taxes, Insurance; the main elements of a monthly mortgage.

List Price: The amount of money that the seller will take for the home.

Local Lender: An experienced area lender who will qualify you for a mortgage and is aware of state & county costs.

Radon: A cancerous gas that can be found in homes.

A Radon inspection can be done to protect the buyer.

Settlement: The closing of the buying and selling transaction.

Short Sale: A sale where the seller owes more than the home is worth so the bank agrees to allow the sale, taking a loss.

Survey: A property diagram that indicates the location of improvements, legal boundaries, easements, encroachments, rights of way, etc.

Title: A document indicating ownership of a property.

Title Insurance: Indemnity against loss resulting from disputes over ownership of the property and defects in the title.

Title Search: The process where the owner of the title is verified and the title is examined for liens or issues.

Underwriting: Analyzing the risk in a loan application.

VA Loan: A loan for veterans or current military insured by a federal agency.

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Notes

THANK YOU!

We sincerely thank you for putting your trust in the Nellis Group for all of your Real Estate needs. We are grateful that our company has been able to work with over 3,000 friends just like you, and we are excited as we grow our company towards 4,000 over the next several years. Every client is a blessing and we ask that you keep us and your experience with our team in mind when you come across friends, family, and co-workers who are looking for a Real Estate specialist for their own needs. Over 84% of our business comes from referrals and we would be very thankful if you could help us continue to provide excellent service to those in the community.

Thank You! Congratulations On Your New Home!

KELLER WILLIAMS CAPITOL PROPERTIES

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