Apartment

BUYER ORIENTATION GUIDE BRIDGING THE GAP TO HOME OWNERSHIP

Skjersaa Group | DukeWarner Realty 1033 NW Newport Ave,| Bend, OR 97701 Skjersaa Group | DukeWarner Realty 541.383.1426

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541.383.1426

541.382.8262

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www.SkjersaaGroup.com

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A MESSAGE FROM THE SKJERSAA GROUP On behalf of all of us at the Skjersaa Group, thank you for giving us the opportunity to to earn your business. Buying real estate is one of the most important activities in anyone’s life. The choices you make when selecting a property affect the quality of your life for many years to come. Our primary responsibility is to assist you in making wise choices; it’s a responsibility we don’t take lightly.

Within the following pages of this booklet you will find helpful information about the home buying process and some information covering some of the additional services you will need through the home buying process. Here’s an outline of what you will find on the forthcoming pages:

> Unparalleled Service - What we do for YOU. > About Skjersaa Group > Team Members > Testimonials & References > 10 Most Common Mistakes > Beginning The Process > Home Buying Process Flow Chart > How Much Home Can You Afford? > Budget/Financial Worksheet > Local Lender Information > Income Tax Benefits of Owning a Home > The Purchase & Sale Agreement > Home Inspection Information > Settlement - Who Pays What? > Certified Residential Specialist > Certified Residential Investment Specialist > Glossary

Skjersaa Group | DukeWarner Realty | 541.383.1426

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UNPARALLELED SERVICE

PERSONAL & PROFESSIONAL SERVICES Provided To Represent The Interests Of Home Buyers

To save your time, minimize your stress, provide maximum security and help assure you get the best home for your needs; the Skjersaa Group will perform the following services for you, the home buyer: 1. Provide a complete explanation of the home buying process.

2. Provide thorough knowledge of the current and emerging real estate market conditions.

3. Assist you in Selecting the best home for you, for your money.

4. Write your purchase agreement to correctly and clearly express your intentions and represent your interests 5. Submit your purchase agreement in a manner that will present you in the most favorable position.

6. Review all offers in detail and provide negotiation representation of your interests.

7. Provide assistance in obtaining the best possible financing of your next home.

8. Coordinate the closing of your purchase with other REALTORSÂŽ, lenders, inspectors, appraisers, attorneys, escrow officers, and title insurance companies.

9. Provide on-going personal communication to keep you informed on the step-by-step progress of the purchase of your home.

10. Provide post-sale follow-up to assure your total satisfaction.

It may matter more who personally represents your interests when buying a home than which home you may attempt to purchase. If you try to buy the right home through the wrong agent, you may not get the home you want to and you may have an unsatisfactory home buying experience.

You can’t get these personal services from us unless we are the team you select to represent your interests in the purchase of your home.

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Skjersaa Group | DukeWarner Realty | 541.383.1426

ABOUT THE SKJERSAA GROUP

Deep Roots Deep Commitment in the Community

to Your Real Estate Needs

BUSINESS PHILOSOPHY

Hard Work

To identify the best solutions consistent with your goals.

Customer Service Integrity

To provide the highest level of service and exceed your expectations.

Committed to representing your best interests and catering to your needs.

Communication Desire to listen and work together to accomplish your goals.

ACCOLADES & ACCOMPLISHMENTS

RESULTS & STATISTICS

Over 530 transactions closed since 2004

MLS Member Production Ranking Skjersaa Group #5 Total Members 1500

Duke Warner Realty 2nd Top Producing Team for 2006-2007 Duke’s Diamond Award Top Producing Team for 2008 - 2013

Average Days on the Market Skjersaa Group 109 MLS Member Average 124

Skjersaa Group | DukeWarner Realty | 541.383.1426

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Skjersaa Group The Skjersaa Group’s success is the result of hard work and commitment to customer service.

The right combination of talent, personality, and the combined knowledge of our team allows us to offer the highest level of quality and service. Our team of professionals Terry, Jason, Mollie, LaJean and Alison o committed to exceeding your expectations.

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Skjersaa Group | DukeWarner Realty | 541.383.1426

TEAM MEMBERS Terry Skjersaa | Principal Broker, CRS Few families have stronger roots in Bend than Terry Skjersaa. His grandparents Olaf and Grace opened Bend’s first ski shop in 1939. With more than 20 years of experience in the ski and outdoor industry, Terry knows the area from the top of Mount Bachelor to the canyons of the Deschutes River, and all points in between. Terry enjoys spending time with his daughters Ellie and Jade.

Some of his favorite leisure activities include skiing, cycling, camping and enjoying all that Central Oregon has to offer.

Jason Boone | Principal Broker, CRIS Jason and his wife relocated to Central Oregon from Seattle in 2003. Like Terry, Jason migrated to Real Estate from the Ski & Outdoor Industry. In fact, Terry and Jason worked together in the Ski industry for over 11 years. Their partnership in Real Estate is based on many years of respect and trust. His background is a diverse mix of sales, marketing, customer service and technology. Jason’s uncompromising attention to detail and will ensure that you receive the most thorough representation possible. He enjoys spending time with his wife Karin, daughter Ashley and son Eli.

Mollie Hogan | Principal Broker, CRS Mollie is a Bend Native. Her knowledge of the market and passion for the area is unprecedented.

Her commitment to her clients and her career is evident the moment you meet her. As a third generation Bend Oregonian, she firmly believes in the connectedness of her community. Mollie has a Bachelors of Science in Business and Interior design, and also continuously strives to take in as many real estate education courses as possible to always be up to date on key topics. She is an outdoor enthusiast, dance and yoga instructor. She lives with her husband Chris, also a Bend native and their two dogs in Northwest Bend.

LaJean Edwards | Transaction Coordinator LaJean is a native Oregonian and after raising her two sons in Portland, she moved to Central Oregon in 2002. LaJean has 25 years experience in the title and escrow industry the majority of which was spent Portland. Her favorite part of the real estate process is THE PEOPLE and meeting the needs of the client is her utmost goal. In her spare time LaJean enjoys fishing and traveling with her husband.

Alison McCully | Broker / Administrative Assistant Alison is our most recent member to the team. She moved to Bend from Seattle after falling in love with the lifestyle and culture of Central Oregon. Prior to moving to Bend Alison worked for a real estate investment firm managing their flagship building in downtown Seattle. Alison is excited to be part of the Skjersaa Group. In her spare time she enjoys traveling and outdoor adventures.

Skjersaa Group | DukeWarner Realty | 541.383.1426

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REFERENCES & TESTIMONIALS “Our decision to move to Central Oregon was relatively easy, but choosing exactly where to locate required a professional with the experience and knowledge to address our goals, needs, and lifestyle. Choosing Jason Boone was one of the best decisions we made. Beyond his professionalism was a personal interest in finding us exactly the right home in the right place. Jason’s ability to listen and pose questions which we wouldn’t have known to ask ourselves made the difference in finding the perfect home. What might have been a challenging process of buying a home and relocating from out of state was greatly facilitated by Jason. We routinely refer friends and family to Jason without reservation, knowing that he can be counted on for solid advice.”

- Hans & Denise Jorgensen | hansjorgensen@sbcglobal.net | (714) 904-4267 “Our home search began before we moved to Bend two years ago. Jason was a part of the search from the start and was the primary reason we ended up finding our ideal house. Jason has an unparalleled knowledge of the real estate market in Bend, but I think it is his patience and a great ability to listen that really makes him stand out to his clients. His thoroughness and attention to detail provide comfort in what would otherwise be a very stressful process. I can’t thank him enough for everything he has done. He has since worked with both family and friends, and I would recommend him again without hesitation.”

-Steve & Jen LaCrosse | slacrosse@hotmail.com | (773) 485-8383 “Unparalleled realty services - Jason redeemed my faith in brokers/realtors. Thanks for everything Jason and the Skjersaa Group.”

- Kevin & Therese Friedman | therese@flyspur.com | (541) 389-4995 “I would recommend Jason Boone and his team to anyone looking to buy or sell residential real estate! Jason is very professional and a man of his word. His follow through is impeccable.”

- Chris & Yoli DiGiulio | ycdigiulio@bendbroadband.com | (541) 977-6820 “It is hard to imagine buying a house sight unseen or as we joke, “our largest Internet purchase.” This would not have been possible without the incredible support we received from our agent, Jason Boone. Jason was helpful from the very beginning in sorting through mountains of queries about location, lots, new homes, and existing properties. He was undaunted by our endless questions and helped us narrow our choices to finding a new house in a relatively new section of Bend.

The process entailed endless phone conversations and middle-of-the-night anxiety questions from us a mere 2,500 miles away! Jason had the answers and if he didn’t, he immediately contacted the builder for further clarification.

He guided us through multiple layers of decision-making and helped us sort out space issues and selection of materials. He has a keen eye and understands significantly more than just the purchase and selling of a home. He understands building and construction issues.

We never regretted our decision and have happily been in our new home since October. It is doubtful if we could find someone who was so dedicated and helpful throughout the six-month process. On a scale of one to ten, he surpasses the numerics as a ten barely gives him the accolades we would like to bestow.”

- Gary & Judy Liberson | gliberson@gmail.com | (202) 203-0965

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Skjersaa Group | DukeWarner Realty | 541.383.1426

10 MOST COMMON MISTAKES 1.

Making an offer on a home without being pre-qualified.

Prequalification will make your life easier – so take time to speak with a lender. Their specific questions in regard to income, debt, etc., will help you determine the price range you can afford. It is an important step on the path to home ownership.

2.

Not having a home inspection.

Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.

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Limiting your search to open houses, ads or the internet.

Many homes listed in magazines or on the internet have already been sold. Your best course of action is to contact a Realtor®.

They have up-to-date information that is unavailable to the general public and are the best resource to help you find the home you want.

4.

Choosing a Broker who is not committed to forming a strong relationship with you.

Making a connection with the right Realtor® is crucial. Choose a professional who is dedicated to serving your needs, before, during and after the sale.

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Thinking there is only one perfect house out there.

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Not considering long-term needs.

It is important to think ahead. Will the home suit your needs 3-5 years from now?

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Not examining insurance issues.

Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.

8.

Not buying a home protection plan.

This is essentially a mini insurance policy that usually lasts one year from the close of escrow. It usually covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.

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Not knowing total costs involved.

Early in the buying process, ask your Realtor® or lender for an estimate of closing costs.

Title company and attorney fees should be considered. Pre-pay responsibilities such as Homeowner Association Fees and insurance must also be taken into account. Remember to examine your settlement statement prior to closing.

10. Not following through on due diligence.

Buyers should make a list of any concerns they have relating to issues such as; crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.

Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities.

Ask your Realtor® for a comparative market analysis. This compares similar homes that have recently sold, or are still for sale.

Skjersaa Group | DukeWarner Realty | 541.383.1426

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BEGINNING THE PROCESS

Organization is the key to finding the home you want while spending the least amount of time and energy.

MEET WITH A MORTGAGE PROFESSIONAL Find out how much house you can afford. This is a prerequisite before you go house-hunting. We can refer you to a lender who can help you determine how much of a down payment you can afford, along with a monthly payment you can handle. (To help determine how much house you can afford, see page 11 of this booklet.)

PRIORITIZE

> M ake a list of everything you want in a home. Is a master suite important?

> How many bathrooms? > What about closet space? > Do you need a yard for children and pets to play in? > Do you prefer a rambler or a multiple-story house?

> Are schools or access to public transportation important?

> A lso consider what characteristics of a home would preclude you from buying.

There is no perfect home, and it’s our job to help you balance the equities between what you want and what you’re willing to compromise on.

The home buying is a process of elimination as much as it is one of selection.

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Skjersaa Group | DukeWarner Realty | 541.383.1426

BEGINNING THE PROCESS CONTINUED

Separate the essentials from the items you could do without and put them on the “A” list.

Prioritize the rest of the items into a second and third list in order of importance. We’ll then go over the lists so that we’re very clear on what you want and need in your home. Keep good notes as we look at homes. After a while, it becomes difficult to remember which features belong to which home.

When selecting a home, look beyond cosmetics. Make sure the home is in good physical condition and that you understand the cost of repairs. For more information on the value of a professional home inspector to help assess the home’s condition, refer to the “Home Inspection” information page of this booklet.

Look at additional homes, even if you love the first one you see. Many times, it takes looking at several homes before you find the one that is really right for you.

As your professional Realtor®, I’ll check with you regularly, even if you haven’t found a house that suits your needs. Keeping in contact with you allows us to establish a good rapport, and helps me learn how to help you effectively. I’ll continue to be on the lookout for homes that suit your needs.

Skjersaa Group | DukeWarner Realty | 541.383.1426

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THE BUYING PROCESS Consultation to Analyze Needs

Establish Working Relationship Sign Buyer Agreement Research Available Homes Drive-By Prospective Home & Neighborhoods

Schedule Showing Appointments Showings

Closing Process

Mortgage Application Credit Report Appraisal Verifications Underwriting

Offer Drafted Loan Approval Seller’s Counter Offer Buyer’s Counter Offer Mutual Acceptance of Contract

Title Search Prepare Deed Review Settlement Statement

Inspections/Due Diligence Transfer Ulities Closing Process

Signing at Escrow Company Closing (Transfer of Title)

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Skjersaa Group | DukeWarner Realty | 541.383.1426

LOAN PRE-APPROVAL

What Can You Afford? Are You Pre-Approved?

Before you start looking at homes, it’s a good idea to find a target price range that you can afford. A mortgage lender will want to make sure you can handle the down payment, plus a monthly mortgage payment made up of principal, interest, taxes and insurance (PITI).

Interest rates and your personal finances will influence the amount of house you can afford. On our website, www.skjersaagroup.com, you can also find a mortgage calculator. But remember, it’s a prerequisite to talk to a lender before you start shopping for a home. We can refer you to lenders suited to your specific financial needs.

There are a wide variety of loan programs available to buyers.

We can give you the name of a mortgage professional who can review all of your options with you. In order to plan properly, you need to understand what lenders are looking for from a borrower. There are three factors that help determine if you qualify for home financing.

> Your Income > Your Assets > Your Credit History Most loan programs require you to verify all of your income sources.

Your mortgage professional will let you know what documentation is needed. Typically, you will need to provide pay stubs and your W-2, and if you are self-employed, you may need to provide copies of your tax returns.

The required down payment varies according to the loan program. There are several affordable options for borrowers. Closing costs are associated with finalizing the transaction and include the appraisal fee, loan origination fee, title insurance, escrow services and legal recording of documents. Each loan is different, so it is important to discuss these fees with a mortgage expert. All lenders review a borrower’s credit history to determine the type of credit used, the amount owed and the borrower’s history of repaying debt.

When you speak with your mortgage professional to figure out how much home you can afford, it’s also a prerequisite to get pre-approved for a mortgage before we start your home search. This will help us narrow your home search to a price range that’s comfortable for you and being pre-approved is also a prerequisite in the eyes of sellers.

Skjersaa Group | DukeWarner Realty | 541.383.1426

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BUDGET/FINANCIAL WORKSHEET CATEGORY MONTHLY BUDGET AMOUNT INCOME Salary/wages Received Bonuses Interest Income | Savings Dividend Income | Stocks Miscellaneous Income INCOME SUBTOTAL EXPENSES Rent/Mortgage Payment Utilities | Gas/Water/Electric/Garbage Telephone Auto Payments Gasoline/Oil Child Care Auto Insurance Renters/Homeowners Insurance Computer/Internet Expenses Entertainment/Recreation Groceries Household Products | Toiletries/Cleaning Items Clothing Eating Out Gifts/Donations Credit Card Payments Subscriptions | Magazines/Newspapers Pets | Vet Fees/medicines/Food Miscellaneous Expenses EXPENSES SUBTOTAL NET INCOME

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Skjersaa Group | DukeWarner Realty | 541.383.1426

LOCAL LENDERS HOME MORTGAGES A home mortgage, while it will likely be the biggest financial decision you make, should be a simple process and enjoyable at the same time.

What could be a good Mortgage program for you might not be a good program for your neighbor, or anyone else for that matter. Your personal finances and credit are sure to be different, thus needing a mortgage that is tailored to your personal needs. This may include a large down payment or no down payment at all.

Your plan could call for a 30 year mortgage vs. a 40 year mortgage or an interest only plan.

The key is being prepared, asking questions and getting the right answers. Because there are more loan programs available today then there were 10 years ago, the right Mortgage Banker will help you through this decision process.

Finding that right person you trust will help you feel at ease and simplify the process.

To start out, you will be asked questions about your current finances. Then, a credit report will tell you and your Mortgage Banker additional information such as credit scores, monthly

payments on current revolving and installment debts and finally the payment history on your current and previous debts. If there is a down payment, this together with the income and credit will determine the best possible mortgage for you.

Remember, it is all about you and your family, and the best possible mortgage that will allow you to enjoy your new home.

HELPFUL HINTS >O btain a checklist from your Mortgage Banker

and bring those items to the initial appointment. > Become approved for a Mortgage before you start looking for a home. > Determine how long you will likely be in your new home. > Trust only a licensed Mortgage Banker that has at least five years of experience.

Finding the Mortgage Banker that will be there for you today, tomorrow and in the future will allow you to make better financial decisions throughout your life.

Courtesy of Evergreen Home Loans

Here are two local lenders that we often refer our clients to:

Kevin Pangle | Evergreen Home Loans 685 SE Third St., Bend, OR 97702 (541) 318-5500 | kpangle@evergreenhomeloans.com

Brian Liebman | Directors Mortgage 705 SW Bonnett Way #1150, Bend, OR 97702 (541) 385-0361 | bliebman@directorsmortgage.net

Required Information Needed at Loan Application Employment History (2 years) Self-employed – Tax Returns (2 years) Prior Year W-2 Forms Current Pay Stub(s) Residence History (2 years) Social Security Number Skjersaa Group | DukeWarner Realty | 541.383.1426

Bank Accounts (2 most recent statements) Monthly Debt Information Divorce Decree Lease/Rental Agreements Mortgage & Account Numbers

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10 COMMANDMENTS

NML #89511

10 COMMANDMENTS WHEN APPLYING FOR A MORTGAGE LOAN

> T hou shall not change jobs or become self-employed > T hou shall not buy a car, truck or van unless you plan to live in it > T hou shall not use your credit cards or let your payments fall behind > T hou shall not spend the money you have saved for your down payment > T hou shall not buy furniture before you buy your house > T hou shall not originate any new inquiries on your credit report > T hou shall not make any large deposits into your bank account > T hou shall not change bank accounts > T hou shall not co-sign for anyone > T hou shall not purchase ANYTHING until after the closing

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Skjersaa Group | DukeWarner Realty | 541.383.1426

INCOME TAX BENEFITS

Federal Tax State Tax Total Tax

w/o Itemizing $ 2104.00 $3453.00 $5558.00

Itemizing $634.00 $2338.00 $2972.00

Difference $1470.00 $1116.00 $2586.00/yr

By Itemizing you save $2586.00/Year in taxes.

BUYING: FIVE YEAR SPREAD

1st Year

2nd Year

3rd Year

4th Year

5th Year

Total

Interest Only House Payment [$1300/month] Real Estate Appreciation $17,500.00 $18,725.00 $20,035.75 $21,438.26 $22,938.93 Per Year Tax Savings Per Year [Fed & State]

$2586.00 $2586.00 $2586.00 $2586.00 $2586.00 $12,930.00

Total

$4461.00 $5686.00 $6996.75 $8399.26 $9899.93 $34,442.94

The Interest only payment is offset by the 7% average appreciation in the value of the real estate and the tax savings each year for a net gain of $ 35,442.94. In other words, if you rent for five years, you’re out $78,000.00 with nothing to show for it. If you were buying a house during that same five years, you come out ahead $113,442.94 ($78,000.00 + $35,442.94). After five years at 7% Appreciation, your house is now worth $350,637.94.

You still owe $250,000.00 as you made interest only payments.

Deschutes County Average Appreciation in 10 years is 9%.

RENTING: FIVE YEAR SPREAD

1st Year Rent

2nd Year

3rd Year

4th Year

5th Year

Total

$(15,600.00) $(15,600.00) $(15,600.00) $(15,600.00) $(15,600.00) $(78,000.00) When renting - you lose $15,600.00/year

Key:

Rent - $1300/month House Payment $1302/Month 7% Apprecitation is based on $250,000 purchase price THE INFORMATION PROVIDED IS FOR EXAMPLE PURPOSES ONLY. INVESTING IN REAL ESTATE CARRIES RISKS.

Skjersaa Group | DukeWarner Realty | 541.383.1426

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PURCHASE & SALE AGREEMENT Once you’ve found the home you want to buy, together we’ll complete a purchase and sale agreement. This is the contract in which you and the seller outline the details of the property transfer. The purchase and sale agreement usually consists of the following pages:

> Earnest Money Receipt > Financing Contingency > Inspection Contingency > Conditions/Disclosure Addendum > Contingency Addendum

> L ead-based Paint Notification (when applicable)

> Agency Disclosure > Property Disclosure Form Completed by the Property Seller

(when appropriate)

> Addendum Outlining Special Conditions

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Skjersaa Group | DukeWarner Realty | 541.383.1426

PURCHASE & SALE AGREEMENT CONTINUED FREQUENTLY ASKED QUESTIONS What is the difference between pre-qualified and pre-approved?

These terms refer to your status in the loan approval process. Prequalification is a determination of your probable ability to obtain a loan. To become pre-qualified, meet with a loan officer or mortgage company.

They will help you determine the price you can afford, based on your monthly income and your current debts, as well as the cash you have for a down payment. Pre-approval means that the mortgage lender has already verified and approved your credit and income.

Obtaining pre- approval early in the process will make your offer more attractive to the seller.

What is earnest money?

Earnest money is a “good faith� deposit submitted with your offer to show the sellers that you are serious about purchasing their home. Earnest money is a required part of an offer. There is no set amount that is required,

Skjersaa Group | DukeWarner Realty | 541.383.1426

but the amount sometimes makes a difference in the negotiation process. Earnest money eventually becomes part of the purchase, and will show as a credit to the buyers on the settlement statement drawn up by the escrow company.

What are closing costs?

Closing costs are charges paid to various entities during the real estate transaction.

They can include escrow fees, document preparation fees, the cost of an inspection, and lender fees.

What is a point?

A point is equal to one percent of the loan principal. Some lenders charge points, in addition to interest and fees, at closing.

What is title insurance?

Title insurance protects against loss from any defects in the legal title, liens against the property or other adverse claims. The lender usually requires title insurance.

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HOME INSPECTION WHY DO I NEED A HOME INSPECTION? Unlike an item purchased at a retail store, a home can’t be returned for a refund if you discover problems later on. This makes it essential that you find out the true condition of the home BEFORE you buy it. It’s important to understand that no home is perfect and that most, including new construction, are likely to have some defects related to construction errors, normal aging, termites, etc. Defects can range from very minor to very serious and are quite often hidden from view in the attic or crawlspace. A professional home inspection will identify these defects, allow you to estimate repair costs and give you and your Realtor® the information you need to negotiate with the Seller.

> In Oregon, home inspectors must be state

>

>

HOW DO I CHOOSE A HOME INSPECTOR?

>

As with any profession, knowledge and experience vary widely between home inspectors. You’ll be relying on your home inspection to help you make a major financial decision, so you want to hire the best inspector possible, (hiring the cheapest can be a costly mistake). How do you choose a qualified home inspector? Here are a few tips:

>

licensed. Before hiring an inspector, call him/ her on the phone and ask for their OCHI license number. Then verify it on-line at: www.oregon.gov/CCB H ire an experienced inspector. Ask how long the inspector has been personally inspecting homes and choose one with at least two-year’s experience as a full-time inspector.

If the home is over 5 years old, it’s wise to have it inspected for wood destroying organisms (termites, carpenter ants, etc.). Choose an inspector that is licensed in Structural Pest Control by the Oregon Department of Agriculture. Ask for their ODA license number and verify it on-line at: http://oda.state.or.us/ dbs/licenses/search.lasso?&division=pest Ask if the inspector is a member of one of the two national professional home inspection associations, NAHI or ASHI. Verify their membership on-line at: www.nahi.org or www.ashi.org P rofessional inspectors carry both liability and E&O (Errors & Omissions) insurance. Ask if the inspector carries these insurances.

Courtesy of Pillar To Post Professional Home Inspection

Here’s a list of local home inspectors that we often refer our clients to.

Pillar to Post Laurie & Alan Keyes PO Box 6385 Bend, OR 97708 (541) 318-5009 laurie@ptporegon.com http://www.ptphome.com/centraloregon/

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WIN Inspections Wade Palmer 2741 NE Red Oak Dr Bend, OR 97701 (541) 318-8199 wpalmer@wini.com www.wini.com

Skjersaa Group | DukeWarner Realty | 541.383.1426

SETTLEMENT

WHO PAYS WHAT? During the negotiation stage of the transaction, a mutually agreed-upon date for closing is determined. “Closing” is when you and the seller sign all the paperwork and pay your share of the settlement fees, and the documents are recorded. Settlement obligations vary widely due to specific contract language, local laws and customs. Prior to closing, the closing agent (usually an escrow or title company or attorney) will complete a detailed settlement statement for both buyer and seller. As your Realtor®, I can help you understand which of the following typical settlement fees apply to you.

THE SELLER PAYS

>

O ne-half of escrow or legal fees paid to the attorney or escrow company for preparing the closing.

THE BUYER PAYS

> > > > > > > > >

O ne-half of escrow or legal fees paid to the attorney or escrow company for preparing the closing.

Document preparation fees Recording and notary fees Title search and title insurance (paid by either the seller or the buyer) Preparation of Taxes Repairs or inspections the buyer has agreed to pay for Loan fees Appraisal fees Credit report fees

Skjersaa Group | DukeWarner Realty | 541.383.1426

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CERTIFIED RESIDENTIAL SPECIALIST LOAN PRE-APPROVAL

WHAT’S A CRS? The Certified Residential Specialist (CRS) is the highest Designation awarded to sales associates in the residential sales field.

The CRS Designation recognizes professional accomplishments in both experience and education. Only 3% of Realtors® Nationally hold this designation and average 4 times the production of the typical Realtor®.

Since 1977 the Council of Residential Specialists has been conferring the CRS Designation on agents who meet its stringent requirements.

Currently, there are more than 34,000 active CRS Designees.

WHY USE A CRS? Today, home buying and selling is faster, more complex, and more competitive in every way.

Our goal is to make the process a little easier for you. The first step is choosing the right REALTOR®.

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Experience | To earn the Certified Residential Specialist (CRS) Designation, every REALTOR® must have significant experience and volume of real estate transactions.

Ethics | Every CRS Designee is required to maintain membership in the NATIONAL ASSOCIATION OF REALTORS® and to abide by its strict Code of Ethics.

A Focus on Home Buying and Selling | To help make the home buying and selling process more rewarding, every CRS Designee must have a proven track record in the business, as well as advanced education in related areas like finance, technology and marketing. Work with the top 3 percent.

Technology Expertise | The training available to CRS Designees includes a strong focus on technology and its applications in the real estate business.

Skjersaa Group | DukeWarner Realty | 541.383.1426

CERTIFIED RESIDENTIAL INVESTMENT SPECIALIST

A Certified Residential Investment Specialist (CRIS) is a Realtor who has passed a rigorous training program specific to evaluating the practicality of real estate investing.

Why hire a Certified Residential Investment Specialist? If you are considering purchasing residential investment property it is to your advantage to use a realtor who has specialized training in this market segment.

The experience and specialized training in various strategies of analysis will not only increase your ability to make a sound investment decision; but also provide you with tangible information and projections for future returns over a period of time.

Selecting the correct properties for investment requires not only understanding the technical and financial side of the investment but also understanding the market segment to properly determine which homes, multi-plexes or small office properties have the best income potential for the holding period and upside(s) for a future resale.

Hiring a Certified Residential Investment Specialist as part of your team will greatly increase your probability of success with your investment property portfolio.

Skjersaa Group | DukeWarner Realty | 541.383.1426

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GLOSSARY ADJUSTABLE-RATE MORTGAGE (ARM) interest rates on this type of mortgage are periodically adjusted up or down depending on a specified financial index.

AMORTIZATION a method of equalizing the monthly mortgage payments over the life of the loan, even though the proportion of principal to interest changes over time.

In the early part of the loan, the principal repayment is very low, while the interest payment is very high. At the end of the loan, the relationship is reversed.

ANNUAL PERCENTAGE RATE the actual finance charge for a loan, including points and fees, in addition to the stated interest rate.

APPRAISAL an expert opinion of the value or worth of a property.

ASSESSED VALUE the value placed on a property by a municipality for purposes of levying taxes. It may differ widely from appraised or market value.

BALLOON PAYMENT a large principal payment due all at once at the end of some loan terms.

CAP a limit on how much the interest rate can change in an adjustable-rate mortgage.

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CLOSING COSTS see “Settlement” or refer to “Settlement...... -who pays what” in this guide.

COMMISSION a fee (usually a percentage of the total transaction) paid to an agent or broker for services performed.

COMPARATIVE MARKET ANALYSIS (CMA) a survey of the attributes and selling process of comparable homes on the market or recently sold; used to help determine a correct pricing strategy for a seller’s property.

CONTINGENCY a condition in a contract that must be met for the contract to be binding.

CONTRACT a binding legal agreement between two or more parties that outlines the conditions for the exchange of value (for example: money exchanged for title to property).

DEED a legal document that formally conveys ownership of a property from seller to buyer.

DOWN PAYMENT a percentage of the purchase price that the buyer must pay in cash and may not borrow from the lender.

CERTIFICATE OF TITLE a document, Signed by a title examiner, stating that a seller has an insurable title to the property,

EQUITY the value of the property actually owned by the homeowner: purchase price, plus appreciation, plus improvements, less mortgages and liens.

CLOSING the deed to a property is legally transferred from seller to buyer, and documents are recorded.

ESCROW a fund or account held by a third-party custodian until conditions of a contract are met.

Skjersaa Group | DukeWarner Realty | 541.383.1426

USEFUL NUMBERS UTILITIES ELECTRIC COMPANIES Central Electric Co-op 548-2144 Central Electric Co-op (Sisters) 549-5698 Midstate Electric Co-op (Sunriver/LaPine) 536-2126 Pacific Power & Light 800-221-7070 SEWER Metolius (City) 546-5533 Redmond (City) 923-7765 Bend City Sewer/Water 388-5515 TELEPHONE Century Link 855-316-6732 BendBroadband 541-382-5551 NATURAL GAS Cascade Natural Gas 888-522-1130 WATER COMPANIES Agate Water 382-2855 Apache Water 382-2855 Avion Water Company 382-5342 Bend City Water/Sewer 388-5515 Cimarron City Water 389-7480 Circle C 548-6116 City of Redmond 923-7765 City of Sisters 549-6022 Crooked River Ranch Water Co. 923-1041 Deschutes Valley Water 475-3849 Indian Meadow Water 549-5300 Laidlaw Water District 389-1255 Long Butte Water 383-2863 Rimrock Estates Water (Linda McCue) 548-0272 Roats Water 382-3029 Sun Country Water 382-5103 Sun Mountain Water 382-7309 Terrebonne Domestic 548-2727 Sunriver Utilites 593-4197 GARBAGE Bend Garbage & Recycling 382-2263 Cascade Disposal 382-6660 High Country Disposal 548-4984

Skjersaa Group | DukeWarner Realty | 541.383.1426

Sisters 549-6022 Sun Country Disposal 382-6660 Wilderness Garbage & Recycling 536-1194 CITY, COUNTY, GOVERNMENT OFFICES EMERGENCY Police/Sheriff/Fire/Ambulance Poison Control Center St. Charles Hospital

911 800-452-7165 382-4321

FIRE DEPARTMENTS, NON-EMERGENCY Bend Fire Dept.

388-5533 Bend Fire Dept.—Burn Dept.

388-5525 Bend Fire Dept.—Non-Emergency 536-2935 Deschutes County Rural District #2 318-0459 LaPine Fire Dept.—Burn Information 536-9056 LaPine Fire Dept.—Non-Emergency 536-2935 SHERIFF DEPARTMENTS, NON-EMERGENCY Deschutes County Sheriff 388-0170 Deschutes County—LaPine Station 536-1758 HEALTH DEPARTMENT Deschutes County

388-6616

DEPARTMENT OF MOTOR VEHICLES Redmond 548-0140 Bend 388-6322 Oregon Highway Information 800-977-6368 VOTERS REGISTRATION Deschutes County Registration

388-6547

SCHOOL DISTRICTS Central Oregon Community College 383-7700 Bend/LaPine School District Public Info 383-6000 Redmond School District 2J 923-5437 Sisters School District #6 549-8521 MISCELLANEOUS CABLE TELEVISION & INTERNET Bend Broadband (Redmond & Bend) 382-5551 Chambers Cable of Sunriver 593-1296 Clearwire (Mike) 771-6739

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Skjersaa Group | DukeWarner Realty

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1033 NW Newport Ave, Bend, OR 97701

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541.383.1426

541.382.8262

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www.SkjersaaGroup.com

Skjersaa Group | DukeWarner Realty | 541.383.1426