NEXT CHAPTER
PURCHASING YOUR HOME
Kayse Gundram kayse@windermere.com Mobile: 206.713.0180 yournorthwestagent.com sellingyounorthwesthome.com buyingyournorthwesthome.com
YOUR GUIDE
TO BETTER UNDERSTANDING T H E H O M E B U Y I N G J O U R N E Y I N T H E N O R T H W E S T.
ABOUT ME WHO AM I?
I am a hard worker, organized, a proactive thinker, a strategic negotiator and meticulous about follow through. I am results driven, with a system for service, execution and client satisfaction.
IN THE MOST SIMPLISTIC OF FORMS, I AM LOYAL, KIND, RELATABLE, KNOWLEDGEABLE AND AN ATTENTIVE LISTENER. I AM DEVOTED TO MY FAMILY AND INSPIRED EVERYDAY BY 13 YEAR OLD SON AND HUSBAND OF 18 YEARS. My creative spirit has forever been enamored with the beauty of architecture and design and my heart and mind motivated by the desire to cultivate relationships. All of that passion and energy combined led me to Windermere - It’s nice to be home. I possess a natural eye for envisioning possibility, a strong understanding of design and marketing while holding a firm finger on the pulse of the Seattle real estate market. This combined with being a fair and compelling negotiator, allows me to offer my clients the highest level of knowledge, service and attention.
I work in the Windermere Ballard office, which is home to over 80 amazing and supportive agents. The Camaraderie that we represent as a whole makes us as individual agents just that much stronger. Being a part of the Windermere family offers us leverage points, resources and connections that aren’t available through other brokerages. I utilize each and everyone of these connections for the benefit of my clients.
QUALITY CONTROL HANDS ON
I AM INVOLVED IN EVERY FACET OF EVERY TRANSACTION AND MY BUSINESS SYSTEM IS STRUCTURED TO FOCUS ON THE QUALITY OF RELATIONSHIPS VS. THE QUANTITY OF TRANSACTIONS.
I AM COMMITTED TO THE JOURNEY AND PROCESS BEHIND WHAT IT TAKES TO PURCHASE YOUR HOME. I AM NOT SIMPLY FOCUSED ON ANOTHER NOTCH THE TRANSACTION BELT.
FROM MY CLIENTS DIRECT SENTIMENTS
“UNSURPASSED CUSTOMER SERVICE EXPERIENCE” “EXPERIENCE AND EXPERTISE MADE THE PROCESS SEAMLESS” “CONSISTENTLY SUPPORTIVE AND FULFILLING EXPECTATION” “QUICK TO RESPOND, DILIGENT AND INCREDIBLY KNOWLEDGEABLE” “PASSION, GREAT EYE” “BEYOND DEDICATED” “PROVIDED FANTASTIC ADVICE THROUGH OUT EVERY STEP OF THE HOME BUYING PROCESS” “6 STARS!” “INCREDIBLY RESPONSIVE AND WENT ABOVE AND BEYOND”
I am proud to have earned a
level of satisfaction from my clients
I M A G I N AT I O N CLOSE YOUR EYES
I LOVE, APPRECIATE AND RESPECT EXISITING BEAUTY AND CAN ENVISION THE POSSIBILITIES. TOGETHER WE CAN CAPTURE WHAT YOU’VE BEEN SEARCHING FOR.
TERMS TO KNOW GLOSSARY KNOWLEDGE
IS POWER
ADJUSTABLE-RATE MORTGAGE (ARM) AMORTIZATION
ANNUAL PERCENTAGE RATE APPRAISAL ASSESSED VALUE BALLOON PAYMENT
interest rates on this type of mortgage are periodically adjusted up or down depending on a specified financial index 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 the actual finance charge for a loan, including points and fees, in addition to the stated interest rate an expert opinion of the value or worth of a property the value placed on a property by a municipality for purposes of levying taxes. It may differ widely from appraised or market value 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
CERTIFICATE OF TITLE
a document, signed by a title examiner, stating that a seller has an insurable title to the property
CLOSING
the deed to a property is legally transferred from seller to buyer, and documents are recorded
CLOSING COSTS COMMISSION COMPARATIVE MARKET ANALYSIS (CMA) CONTINGENCY CONTRACT DEED DOWN PAYMENT EQUITY ESCROW FIXED-RATE MORTGAGE
see “settlement” or refer to “Settlement and Closing” in this guide a fee (usually a percentage of the total transaction) paid to an agent or broker for services performed a survey of the attributes and selling prices of comparable homes on the market or recently sold; used to help determine a correct pricing strategy for a seller’s property a condition in a contract that must be met for the contract to be binding 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) a legal document that formally conveys ownership of a property from seller to buyer a percentage of the purchase price that the buyer must pay in cash and may not borrow from the lender the value of the property actually owned by the homeowner: purchase price, plus appreciation, plus improvements, less mortgages and liens a fund or account held by a third-party custodian until conditions of a contract are met interest rates on this type of mortgage remain the same over the life of the loan. Compare to “adjustable-rate mortgage”
FIXTURE HAZARD INSURANCE INTEREST LIEN LISTING CONTRACT MARKET PRICE MARKET VALUE
a recognizable entity (such as a kitchen cabinet, drape or light fixture) that is permanently attached to a property and belongs to the property when it is sold compensates for property damage from specified hazards such as fire and wind the cost of borrowing money, usually expressed as a percentage rate a security claim on a property until a debt is satisfied an agreement whereby an owner engages a real estate company for a specified period of time to sell a property, for which, upon the sale, the agent receives a commission the actual price at which a property sold the price that is established by present economic conditions, location and general trends
MORTGAGE
security claim by a lender against a property until the debt is paid
MULTIPLE LISTING SERVICE (MLS)
a system that provides to its members detailed information about properties for sale
ORIGINATION FEE PITI POINT PREPAYMENT PENALTY PRINCIPAL PRORATE PURCHASE & SALE AGREEMENT
an application fee(s) for processing a proposed mortgage loan principal, interest, taxes and insurance, forming the basis for monthly mortgage payments one percent of the loan principal. It’s charged in addition to interest and fees a fee paid by a borrower who pays off the loan before it is due one of the parties to a contract; or the amount of money borrowed, for which interest is charged divide or assess proportionately a contract between buyer and seller that outlines the details of the property transfer; or refer to “Purchase and Sale Agreement” in this guide
SETTLEMENT
all financial transactions required to make the contract final. See “Settlement and Closing” in this guide
TITLE
a document that indicates ownership of a specific property
TITLE SEARCH
detailed examination of the entire document history of a property title to make sure there are no legal encumbrances
PARTNERSHIP BUYER AGENCY AGREEMENT
I PLACE A GREAT AMOUNT OF VALUE ON THE POWER OF WORDS, a handshake and eye contact - a natural feeling that a parternship makes total sense. There is an inaruguable value, however, in a formal (written) agreement. The structure and definition it offers allows a partnership to have necessary guidelines and secuirty. For both the client and the agent. MY RELATIONSHIPS WITH MY CLIENTS ARE FOCUSED ON QUALITY AND RESULTS. AN EXCLUSIVE COMMITMENT FROM YOU ALLOWS OUR TEAM TO OPERATE AT FULL CAPACITY. In case you’re asking, “how?” It’s simple - By mutual acceptance of a buyer agency agreement you are formally letting me know that you have as much “skin the game” as I do. This offers me protection for the multitude of services that I will provide and a green light to go above and beyond for “you.” Throughout the search process and well beyond the close of “your home”.
WRE Form 29 Rev. 08/2012
Page 1 of 1
BUYER AGENCY AGREEMENT Date:
Expiration Date:
Buyer(s):
Broker:
Firm: Windermere Real Estate/
Excluded properties or geographic limitations: 1. Agency Agreement. Buyer retains the above‐named Firm and Broker, on Firm’s behalf, to act as Buyer's agent in the purchase of real property. Broker agrees to represent Buyer in accordance with the duties of a buyer's agent as set forth in "The Law of Real Estate Agency" pamphlet, which Buyer has received. Any additional duties must be agreed to in writing. 2. Compensation & Scope of Agency. Buyer retains Broker solely with respect to properties listed by a multiple listing service of which Firm is a member ("Listed Properties"). Broker is only obligated to search for Listed Properties. Buyer agrees to use Broker's services if Buyer purchases a property for which Broker provided real estate brokerage services. In the event Buyer purchases a Listed Property, Broker’s brokerage fee will be the selling office commission paid by Seller or Listing Broker. If Buyer purchases an unlisted property, Buyer agrees to pay a brokerage fee of ______ % of the purchase price (3% if not filled in) at closing, less any commission paid by the seller. If the commission paid by the Seller is equal to or more than the brokerage fee due under this paragraph, then Buyer shall owe no brokerage fee. Buyer consents to Broker and Firm being compensated by both Buyer and Seller (except when law requires otherwise, such as in transactions involving VA financing in which case the seller must pay the full brokerage fee). 3. Termination. Buyer, Broker or Firm may terminate this Agreement at any time by giving written notice. If Firm or Broker terminates this Agreement, Buyer shall be released from any further obligations. If Buyer terminates this Agreement or it expires, then Buyer shall be released from all obligations, except that if Buyer purchases a property within 120 days after termination or expiration, and Buyer’s attention was brought to that property through the efforts of Broker during the term of this Agreement or Broker provided real estate brokerage services for that property during the term of this Agreement, then Buyer agrees either: (1) to use Broker's services in connection with that purchase in accordance with the provisions of paragraph 2; or (2) to pay Firm the brokerage fee that would have been payable or received in connection with the transaction, even if a commission is also paid to another Firm. Buyer agrees not to terminate this Agreement to prevent Firm from receiving a brokerage fee. 4. Distressed Homes. Broker and Firm will not represent or assist Buyer in a transaction that is a “Distressed Home Conveyance” as defined by Chapter 61.34 RCW unless otherwise agreed in writing. A “Distressed Home Conveyance” is a transaction in which Buyer purchases property from a “Distressed Homeowner” as defined by Chapter 61.34 RCW, allows the “Distressed Homeowner” to continue to occupy the property, and promises to convey the property back to the “Distressed Homeowner” or allow the “Distressed Homeowner” to share a portion of the proceeds from a resale of the property. 5. Short Sales. In a short sale transaction, the seller must ask one or more lienholders to accept less than they are owed in order to clear title to the property. Short sales are legally complex transactions that may take longer than an ordinary sale. Buyer agrees to carefully consider benefits and risks of a short sale transaction and to consult legal counsel for legal advice. 6. Bank‐Owned Properties. After a property goes through foreclosure, frequently it is the bank (prior owner’s lender) that ends up owning the property. Banks which then seek to sell the property on the market will often utilize a bank addendum in the purchase and sale agreement which may contain lopsided provisions in favor of the bank. There are benefits and risks in buying bank‐owned properties, and Buyer agrees to carefully consider the circumstances and to consult legal counsel for legal advice. 7. Agency Disclosure, Dual Agency, and Competing Buyers. If Buyer is interested in a property listed by Broker, Buyer authorizes Broker to act as a dual Broker in accordance with the Law of Real Estate Agency. If Buyer purchases a property listed with another real estate licensee associated with Firm, Buyer agrees that the listing Broker will represent the seller, Buyer's Broker will represent Buyer, and that Firm will be a dual Broker in accordance with the Law of Real Estate Agency. If Broker is a dual Broker, Buyer agrees that Broker may write and present additional offers to purchase the property as the Seller's Broker. Buyer acknowledges and agrees that Broker may represent other buyers interested in the same properties. After any buyer represented by Broker signs an offer to purchase a particular property, Broker may inform other buyers about that property, but will not represent any competing buyer with respect to that property during the term of that transaction. If any buyer represented by Broker expresses an interest in such a property, that buyer may be referred to another licensee (including licensees affiliated with Firm) for assistance on that property only. Buyer agrees that Broker may receive compensation for the referral and agrees that such compensation would not be adverse or detrimental to Buyer's interest in the transaction or create a conflict of interest. 8. Attorney Fees. In the event of a fee dispute, the prevailing party shall be entitled to recover a reasonable attorney fee, court costs, and expenses in connection with the fee dispute. BROKER: BUYER ADDRESS: DATE BUYER: DATE PHONE: ( ) ‐ BUYER: DATE EMAIL:
W E W O N, I T ’ S O U R S PROCESS FOR SUCCESS HELPING YOU TO FIND AND PURCHASE YOUR HOME IS #1, BUT YOU CAN ALS EXPECT THAT I WILL: + Explain real estate principles, contracts and documents + Refer you to a reputable lender that can help you assess your financial situation and obtain pre-approval for a loan + Help you determine the types of homes and neighborhoods that most fit your needs + Build a custom MLS search with parameters that meet your needs + Arrange tours of homes that meet your criteria + Provide you with detailed information about homes you’re interested in + ASSIST YOU IN WRITING AND NEGOTIATING A MUTUALLY ACCEPTABLE PURCHASE AND SALE AGREEMENT. + Accompany you to the inspection + Coordinate necessary steps after inspection + Work with the escrow company to ensure all necessary documents are in order and completed on time
FORMULA
A NECESSITY IN HOME BUYING
YOU WOULDN’T BUILD A HOUSE WITHOUT A PLAN. YOU SHOULDN’T BUY A HOME WITHOUT ONE EITHER. How can I start to develop my plan? 1. Financial pre-approval. Get your finances lined up. 2. Choose an agent who you can trust, show loyalty to and have confidence in. Your needs and best interests should be No 1. 3. Determine realistic needs and wants in a home. WAIT, WE HAVE SO MANY QUESTIONS! + What is earnest money? + How do I choose a lender, inspector, etc...? + How do I secure the best offer and not pay too much? + What is a Form 17? + How does a title search and insurance work? + Do I need to waive inspection? + I am obtaining a loan, what if the appraisal comes in low? + What does the escrow company handle? + When can I get the keys? TAKE A DEEP BREATH. There’s a lot to know and digest but we will work through all of these questions (and more that come up) so that you feel 100% comfortable! Do read on because many of these questions are answered in the pages ahead. TOGETHER WE WILL BUILD OUR FORMULA.
NEED TO KNOW: OFFER REVIEW E An offer review date is simply a predetermined date and time that the seller and agent are going to be reviewing offers. Keep in mind that this doesn’t necessarily mean “accepting” offers. Review dates simply outline the seller’s intent to review. It doesn’t contractually obligate them or their agent to wait until that time and date to review. The buyer and seller, at this point, have not signed any kind of agreement. If a seller initially says they’ll be reviewing offers on Friday, but their agent receives an offer on Tuesday it is their obligation to present that to the seller. If the offer is amazing and the seller is thrilled, there’s nothing stopping them from accepting that offer.
FIRST IMPRESSION SAMPLE OF OFFER PRESENTATION
THIS IS MORE IMPORTANT THAT YOU MIGHT THINK. ESPECIALLY IN THE COMPETITIVE SEATTLE MARKET. Many agents are lackluster when it comes down to detailed diligence with crossing all t’s and dotting all those tedious i”s. Two offers can be exactly the same, regarding terms, but if an offer is poorly written or presented, it can be the deciding factor. My process of a team-centric approach on both the listing and purchase sides, not only resonates with my clients but also sets the tone for a positive journey with my colleagues on the flip side of the transaction. THE LOST ART OF FACE TO FACE IS SOMETHING THAT MANY AGENTS ARE LOOKING FOR. WHENEVER POSSIBLE I WILL PRESENT YOUR OFFER IN PERSON AND WITH DIRECT EYE CONTACT EXPLAIN THE STRENGTH OF YOUR OFFER AND YOUR POSITION AS A BUYER. TAKE AWAY: Agents want to work with other agents they feel confident will see the transaction through to close, who represent a certain level of business acumen and detail, but also are humble and relatable. It is these characteristics combined with a polished offer presentation, open lines of communication and proven level of performance that have been beneficial to my clients in multiple offer situations.
2018 DESIRABLE ST OFFER HIGHLIGHTS MLS 1279823
OFFERING PRICE: ESCALATOR: EARNEST MONEY: CLOSING DATE: FINANCING TERMS: INSPECTION: TITLE: OFFER EXPIRATION:
$1,150,000 $1,350,000 CAP INCREMENTS $15,000 $95,000 15 DAYS WAIVED WAIVED WAIVED 4/28/18 NOON
WHEN ACTING AS A SELLING AGENT, I CONSIDER MY RELATIONSHIPS WITH LISTING AGENTS TO BE "TEAM-CENTRIC." OUR COMBINED GOAL BEING A SMOOTH AND TIMELY PACE TO THE FINISH LINE.
Kayse Gundram kayse@ windermere.com Mobile: 206.713.0180 kayse.withwre.com
PURCHASE & SALE PART 1 EXPLAINED
WHILE MOST BUYERS ARE AWARE of terms regarding price, closing date and financial arrangements, there is a tendency to overlook other contractual details. All of the terms outlined in the contract will be binding, so it’s important to understand what you are agreeing to BEFORE signing. Signing the contract without fully understanding the terms can be a costly mistake especially if there are unforeseen difficulties that occur along the course of the transaction completion. UNDERSTAND THIS AGREEMENT BECAUSE YOUR OFFER IS AN INVITATION TO ENTER INTO A CONTRACT ALSO REFERRED TO AS MUTUAL ACCEPTANCE. MUTUAL ACCEPTANCE is created when there is agreement on all terms - When the seller and buyer have come to agreement and signed the offer form along with any counter-offers and addenda.
PURCHASE & SALE PART 2 EXPLAINED
BY SIGNING, WHAT EXACTLY ARE YOU AGREEING TO? + What personal property will be included or excluded from the sale + Who will pay for required repairs or retrofits
NEED TO KNOW: ESCROW E
+ What the seller’s disclosure obligations will be + What the seller’s obligation to maintain the property will be + What the seller is warranting about the property + What the buyer’s inspection rights will be + What will happen in the event that either party does not comply with the contract + Whether or not the buyer can get out of the contract upon an attorney review and/or other contingencies + What will the parties’ legal rights and attorney fee provisions be in the event of a breach of contract.
The Escrow Holder is a neutral third party, such as Chicago Title, that maintains the escrow account and impartially oversees the escrow process, making sure all conditions of the sale are properly met. The Escrow Holder’s Duties Include: Serving as the neutral agent and the liaison between all parties involved.
PURCHASE & SALE PART 3 EXPLAINED
REVIEWING AND UNDERSTANDING THE PURCHASE CONTRACT FORM AHEAD OF TIME ALLOWS YOU TO: + STRENGTHEN your negotiating position + PROTECT YOURSELF FROM INCURRING UNNECESSARY COSTS OR PROBLEMS. + BUILD a better understanding of what you will need to do to conclude the sale
UNDERSTANDING THE PURCHASING PROCESS: MOST REAL ESTATE AGENTS USE STANDARD PRE-PRINTED MLS PURCHASE CONTRACT FORMS, WHILE TAILORING THE DETAILS AND INCLUSION OF SUPPORTING ADDENDA TO SHOWCASE YOUR INDIVIDUAL PURCHASE TERMS. READ ON FOR EXAMPLES. THESE LEGALLY BINDING DOCUMENTS set forth the terms of the sale, establish the rights and obligations of the parties involved, specify what actions will be taken in order to close the sale and establish time frames for those steps to be completed.
TO WAIVE OR NOT KNOW YOUR ADDENDA
ALWAYS INCLUDED: + OPTIONAL CLAUSES + WINDERMERE DISCLOSURES + INSPECTION 35
OPTIONAL: + ESCALATION 35E + INSPECTION 35P
WAIVE-ABLE: + FINANCING 22A + TITLE 22T + INSPECTION 35 * + UTILITIES 22K * IF YOU CHECK PRE-INSPECTION CONDUCTED ( 3 .) YOU ARE WAIVING FURTHER INSPECTION AND YOUR OFFER CARRIES MORE STRENGTH.
NEED TO KNOW: FORM 17 E As a buyer, you will receive a Form 17 in most instances when you make an offer on a home. It is also referred to as the Seller’s Disclosure Statement. It can point out the smallest of issues but is often a helpful source of information on what the Seller knows about the condition of their home. The document is a 5-page questionnaire the Seller fills out preemptively before they list their home. It goes through the home by category and the seller must state if they have any knowledge of various conditions and/or occurrences of their home. For example, if there has ever been any flooding, pest issues etc. They can answer if they know, (and are required by law to disclose anything they have knowledge of, as is their agent) but if they don’t know, it doesn’t mean it never happened before they bought the home. Cases where the sellers never lived in the home but were investors or inherited it, might make answering those questions impossible. In this case they would mark the “don’t know” or “no” box.
OPTIONAL CLAUSES FORM 22D
E S C A L AT I O N FORM 35E
P R E - I N S P E C T I O N FORM 35P
FINANCING FORM 22A Form 22A Financing Addendum Rev. 2/17 Page 1 of 3
©Copyright 2017 Northwest Multiple Listing Service ALL RIGHTS RESERVED
FINANCING ADDENDUM TO PURCHASE & SALE AGREEMENT
The following is part of the Purchase and Sale Agreement dated __________________________________________
1
between ______________________________________________________________________________ (“Buyer”)
2
and ___________________________________________________________________________________(“Seller”)
3
concerning _______________________________________________________________________ (the "Property”).
4
1. LOAN APPLICATION/WAIVER OF CONTINGENCY. a. Loan Application. This Agreement is contingent on Buyer obtaining the following type of loan or loans to purchase the Property (the “Loan(s)”): Conventional First; Conventional Second; Bridge; VA; FHA; USDA; Home Equity Line of Credit; Other _______________________________________________ (the “Financing Contingency”). Buyer shall pay $ _________________; or ______ % of the Purchase Price down, in addition to the Loans. Buyer shall make application for the Loans to pay the balance of the Purchase Price and pay the application fee, if required, for the subject Property within ___________ days (5 days if not filled in) after mutual acceptance of this Agreement. For the purposes of this Addendum, “application” means the submission of Buyer’s financial information for the purposes of obtaining an extension of credit including Buyer’s name, income, social security number (if required), the Property address, purchase price, and the loan amount.
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b. Waiver of Financing Contingency. If Buyer (i) fails to make application for financing for the Property within the agreed time; (ii) changes the type of loan at any time without Seller’s prior written consent; or (iii) changes the lender without Seller’s prior written consent after the agreed upon time to apply for financing expires, then the Financing Contingency shall be deemed waived. Buyer’s waiver of the Financing Contingency under this Paragraph 1(b) also constitutes waiver of Paragraph 7 (Appraisal Less Than Sales Price). For purposes of this Addendum, “lender” means either the party to whom the application was submitted or the party funding the loan.
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2. LOAN INFORMATION. a. Seller’s Request for Loan Information. At any time _______ days (10 days if not filled in) after mutual acceptance, Seller may give, once, a notice requesting information related to the status of Buyer’s loan application (“Request for Loan Information”). NWMLS Form 22AL may be used for this notice.
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b. Buyer’s Loan Information Notice. Within _______ days (3 days if not filled in) of receiving Seller’s Request for Loan Information, Buyer shall give notice of the status of Buyer’s loan application (“Loan Information Notice”). Buyer’s notice shall be on NWMLS Form 22AP and shall include the date of application, the name of lender, a list of the information that Buyer has provided to lender, and a warranty that Buyer has provided all information requested by lender.
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Buyer
Buyer
Seller
Seller
Address
City
State
Zip
6 7 8
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c. Failure to Provide Loan Information Notice. If Buyer fails to timely give to Seller a completed Loan 32 Information Notice, Seller may give the Right to Terminate Notice described in Paragraph 3 (Seller’s Right to 33 34 Terminate) at any time after the date that the Loan Information Notice is due. 3. SELLER’S RIGHT TO TERMINATE. a. Right to Terminate Notice. At any time ________ days (30 days if not filled in) after mutual acceptance, Seller may give notice that Seller may terminate the Agreement at any time 3 days after delivery of that notice (the “Right to Terminate Notice”). NWMLS Form 22AR may be used for this notice.
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b. Termination Notice. If Buyer has not previously waived the Financing Contingency, Seller may give notice of termination of this Agreement (the “Termination Notice”) any time following 3 days after delivery of the Right to Terminate Notice. If Seller gives the Termination Notice before Buyer has waived the Financing Contingency, this Agreement is terminated and the Earnest Money shall be refunded to Buyer. NWMLS Form 22AR shall be used for this notice. If not waived, the Financing Contingency shall survive the Closing Date.
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36 37 38
c. Appraisal Less Than Sales Price. Buyer’s waiver of the Financing Contingency under this Paragraph 3 will; 44 45 or will not (will, if not filled in) constitute waiver of Paragraph 7 (Appraisal Less Than Sales Price). _________________________
________________________
_________________________
_________________________
Buyer’s Initials
Buyer’s Initials
Seller’s Initials
Seller’s Initials
Date
Date
Date
Date
TITLE FORM 22T
INSPECTION FORM 35
UTILITIES FORM 22K
WHAT IS IT? A COMBINATION OF KNOWLEDGE AND STYLE.
DESIGNEYECANDY
WHETHER IT BE SEXY INTERIORS, FURNITURE, FOOD, FASHION, REAL ESTATE OR ARCHITECTURE (AND EVERYTHING ELSE IN BETWEEN,) IT’S HARD TO DENY THAT GOOD DESIGN IS EASY ON THE EYES. HERE ARE SOME THINGS THAT RECENTLY CAUGHT MY ATTENTION. FROM ME TO YOU - ISSUE 11 /// SEPTEMBER 2018
AS A REAL ESTATE PROFESSIONAL I AM ALWAYS ON THE HUNT FOR AMAZING HOMES. I love people and the thrill of the matchmaking process. I also happen to love architecture and design. I’m always searching for beauty that is born from thoughtful creation. From that passion DESIGN EYE CANDY was born.
TO VIEW MY PAST CURATED CONTENT AND TO SIGN UP TO RECEIVE YOUR MONTHLY DOSE OF DESIGN EYE CANDY, PLEASE VISIT:
www.yournorthwestagent.com MUST READS
EARNEST MONEY THE REAL DEAL
EAR·NEST MON·EY {NOUN} MONEY PAID TO CONFIRM A CONTRACT EM = SKIN IN THE GAME BUT REALLY WHAT IS IT AND CAN I LOSE IT? Earnest money is a deposit the home buyer puts down when making an offer to purchase a home. The purpose is to show the seller that you are earnest (an old-fashioned word for {“serious”}) about buying their house. THE EARNEST MONEY DEPOSIT DEMONSTRATES YOUR GOOD FAITH IN PURCHASING THE HOME AND YOUR LEVEL OF INTENT TO MOVE FORWARD AND CROSS THE CLOSING FINISH LINE. WHAT IS STANDARD? 1-3% of the purchase price is average but in a hot real estate market the more you are able to put forward, the more competitive your offer will be. 4% has become the new “average” but we will discuss in regards to your specific transaction to be sure we are putting forth the strongest possible offer. CAN I LOSE MY DEPOSIT? Earnest money disputes are rare, but they can occur. As your advocate and advisor, however, I will work to protect you and inform you of any risks that you might face should you express interest in potentially adverse choices. I will be watching out for your investment every step of the way and we will include the necessary contingencies within our written offer to protect your {very important} earnest money.
NEED TO KNOW: PRE-APPROVAL E A “ true” pre-approval letter is evidence that a Buyer has had a lender verify their assets (source of funds), income stream and credit worthiness. This preliminary, and necessary step, is generally valid for 60-90 days and can be updated by re-verification of some of the documents.
TITLE THINK WINDOWS WINDOWS CAN BE CLEAN, DIRTY OR A MENACING CLOUDY. SO CAN TITLE REPORTS. Of all of the documentation a buyer can obtain to learn about the property, the title report is one of the most important. More importantly than receiving it is to understand it. It’s purpose is to document ownership, vesting, and details regarding anything recorded against the home, such as liens, encroachments, or easements. The title company compiles the report from a search of county records to issue title insurance, and any liens against the property are listed as “exceptions” to a title policy.
THE LEGAL DESCRIPTION THE LEGAL DESCRIPTION IS EVERYTHING THAT YOU WON’T SEE IN ANY REAL ESTATE MARKETING. It’s the written description of the property’s location and the boundaries of the property in relation to the nearby streets and intersections. In the case of a condominium or planned unit development (PUD), the legal description will include the property’s interest in any common areas, exclusive or non-exclusive easements, and details on any parking or storage that conveys with the property.
TAXES Property taxes always show up as the primary “lien” on a title report. A property cannot be transferred to a new owner with outstanding property taxes due. As the top lien, the report will indicate whether taxes are due or paid in full. Taxes must be settled before any debt holder gets paid.
Mortgage liens are generally listed directly below property taxes, and they’re always ordered first, second, and third. The largest lien holder generally takes first position. When a sale closes, the liens must be paid in the order that they appear on the title report. Though this list is in no way exclusive, there are a variety of other items that could show up on a title report outside of taxes and loans. These can make the title cloudy or downright dirty, until they are resolved.
EASEMENTS If another property owner has access to the property via an easement, it would be recorded on the title report. This stays on the report until both parties agree to remove it. The title company can pull the original easement agreement for review. CC&Rs. In the case of a condo or PUD, there are Covenants, Conditions and Restrictions (CC&Rs), recorded against the property. Any new buyer purchases subject to the rules and regulations documented in the CC&Rs. This is why it’s important for potential buyers to pull these from the report and review them. Once you’re the owner, you’re subject to those rules. Restrictions, historic oversights, planning requirements. From time to time, there will be items on the preliminary title report that aren’t run of the mill. If the home is located in a historic district and therefore subject to the rules and restrictions of that community, it will show up on the title. In this case, if there are restrictions about changing the facade of a house or requirements that facade alterations comply with a local historical oversight committee led by the local planning department, a potential buyer needs to know this.
REMEMBER THIS As a potential buyer, you and your agent (or you have the option to review with a real estate attorney) should scrutinize the preliminary title report. YOU WANT THE TITLE (WINDOWS) TO BE DELIVERED TO YOU AS CLEAN AS POSSIBLE. If the property is subject to special items, or there are issues on the title that would affect your homeownership, you need to know and understand them thoroughly before you close.
WRE Form 20 Rev. 07/2012
Page 1 of 1
EARNEST MONEY RECEIPT AND INSTRUCTION
This Earnest Money Receipt and Instruction is made in conjunction with and in reference to an offer by ___________________________________________________________________________________________________ (“Buyer”) to ________________________________________________________________________________________________ (“Seller”) to purchase ____________________________________________________________________________________(the “Property”).
□
1.
NO TRANSACTION? Check this box only if the Earnest Money is being delivered as a general advance deposit, without reference to a particular transaction or Property. **Note: This form should be used only upon delivery of Earnest Money, and not with a promissory note.** DELIVERY OF EARNEST MONEY. Buyer has delivered earnest money in the amount of $
(check one) □ personal check, □ cashier’s check, or □ other or managing broker licensed with the below‐named Firm: NAME OF REAL ESTATE FIRM:
in the form of
(“Earnest Money”) to the following broker
NAME OF LICENSEE RECEIVING CHECK:
DATE OF RECEIPT:
CHECK NO.:
x SIGNATURE OF RECEIVING LICENSEE:
2. INSTRUCTIONS FOR DEPOSIT OF EARNEST MONEY. The Earnest Money shall be deposited according to the following instructions (check only one; if none is checked, then (a) shall apply):
□ (a) Deposit to Firm Trust Account. Buyer instructs the Firm to deposit Buyer’s Earnest Money into the Firm’s trust account no later than business days (3 if not filled in) after the above‐stated date of receipt. In the event the Earnest Money should become rightfully refundable to Buyer, the Firm will refund Buyer’s Earnest Money after the Firm has received reasonable notification from the depository that the funds have cleared deposit and are available for reimbursement. □ (b) Deliver to Closing Agent. Buyer instructs the Firm to deliver Buyer’s Earnest Money to the following authorized Closing Agent: no later than business days (3 if not filled in) after the above‐stated date of receipt. Buyer understands that any request for refund of the Earnest Money must be addressed to the Closing Agent directly.
□ (c) Deferred Deposit. Buyer instructs the Firm to hold Buyer’s Earnest Money without deposit until mutual acceptance of a purchase and sale agreement is reached, after which the Earnest Money shall be deposited according to the terms of that agreement (i.e., to the Firm’s trust account or to Closing Agent). In the event the Earnest Money should become rightfully refundable to Buyer, and Firm has deposited Buyer’s Earnest Money into the Firm’s trust account, the Firm will refund Buyer’s Earnest Money after the Firm has received reasonable notification from the depository that the funds have cleared deposit and are available for reimbursement. If Closing Agent possesses Buyer’s Earnest Money, Buyer understands that any request for refund of the Earnest Money must be addressed to the Closing Agent directly. BUYER DATE BUYER DATE Firm Use Only:
□ EM Deposited on
to
□ EM Delivered on
to
**Firm to retain with this form a copy of Earnest Money check and, if available, deposit slip or delivery receipt.**
BEWARE OF 0 Since 2013, there have been 40,000 incidents I worldwide involving losses of over : $5.3 BILLION. - FBI, BEC, EAC (2016) I
x+• : 4,000 HACK ATTEMPTS -----------------------------------------� It is estimated there are
per day nationwide. - FBI
FRAUDULENT WIRING
instructions are being sent to real estate agents, title companies and customers
•
MM
HOWTO PROTECT YOURSELF
IF YOU THINK YOU MIGHT BE A VICTIM:
-CD-
BE WARY of free, web-based email accounts; they are easily hacked.
Using a previously known phone number, can the supposed sender of the email to authenticate the change request - don't can the number on the email.
ALWAYS VERIFY changes in payment instructions and confirm requests for transfer of funds. CAREFULLY EVALUATE any requests for secrecy or pressure to take action quicRly. CALL, DON'T EMAIL: Confirm all wiring instructions by phone before transferring funds. Use the phone number from the title company's website or a business card. BE SUSPICIOUS: It's not common for title companies to change wiring instructions and payment info.
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CONFIRM IT ALL: Ask your bank to confirm not just the account number but also the name on the account before sending a wire. VERIFY IMMEDIATELY: You should call the title company or real estate agent to validate that the funds were received. Detecting that you sent the money to the wrong account withm 24 hours gives you the best chance of recovering your money. FORWARD, DON'T REPLY: When responding to an email, hit forward instead of reply and then start typing in the person's email address. Criminals use email address that are very similar to the real one for a company. By typing in email addresses you will make it easier to discover if a fraudster is after you.
-®-
III
If you suspect fraud, immediately notify the financial institutions and escrow agent involved in the transaction.
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Contact your local law enforcement authorities, and file a complaint with the FBI's Internet Crime Complaint Center.
-®-
Effective 9.6.17 LE I Old Republic Title is providing this information as a free
customer service and makes no warranties or representations as to its accuracy.
Old Republic Title strongly recommends that consumers confer with their title insurer as underwriting requirements vary among companies and further, obtain guidance and advice from qualified professionals, including attorneys specializing in Real Property, Trusts and/or Title Insurance to get more detailed, and current, information as to any particular situation affecting them. Source: ALTA
HOMEWORK DO YOUR DUE DILLIGENCE
COMMUTING: What will your daily commute be like? What are the traffic patterns? EDUCATION: What are the neighborhood schools like? Which of those schools service the house? Which side of a street your house is on could determine which school your child is assigned to. Find out the exact street boundaries, including sides of certain streets. How will your kids get there? What are the bus stops? SHOPPING: What are the stores and small shops like in the area? Where will you get groceries?
DENSITY: WHAT IS THE ZONING IN THE NEIGHBORHOOD AND SURROUNDING AREAS? ARE THERE PLANS OR PROPOSALS TO CHANGE THE ZONING? ARE THERE MANY RENTALS IN THE AREA? ARE THE RENTALS NEXT DOOR OR ON THE SAME BLOCK? HOW ABOUT TOWN HOMES OR OTHER HIGH-DENSITY HOUSING? RENTAL COMPLEXES ARE EASIER TO SPOT BUT TRY AND RESEARCH THE SINGLE FAMILY RENTALS NEAR THE SUBJECT HOME. RESEARCH FUTURE DEVELOPMENTS IF APPLICABLE - TOWN HOMES, CONDO’S, APODMENTS?
SEXUAL OFFENDERS: Are there any registered in the area?
CRIME: Do the research, check with the police, check websites, and ask around. What is the crime rate like where you are purchasing? What are the trends?
PARKING: BOTH FOR YOU, YOUR HOUSEHOLD AND PEOPLE WHO MAY VISIT YOU. DOES YOUR CAR FIT IN THE GARAGE? HOW ABOUT THE DRIVEWAY - IS IT SHARED WITH YOUR NEIGHBOR?
HAZARDOUS ISSUES: Are there any in the area? A dump? A waste transfer station? An electrical substation?
NEED TO KNOW: CLOSING COSTS E The term “closing costs” refers to the various fees and charges a home buyer might incur when purchasing a house using a mortgage loan. Actually, buyers can encounter closing costs whether they pay cash or use a home loan to buy a house. But those who use mortgage financing tend to have more costs on closing day, due to the lender’s fees that are included. Typically closing costs equate to 2-5% of the purchase price of the home you are buying. Some of the CC’s can include: home appraisal fee, mortgage origination fee, mortgage discount points / prepaid interest, prepaid home insurance premium, credit report fee, government recording fees, lender title insurance and escrow closing fee.
NEXT STEPS DESIGN SENSE
WE’VE CLOSED AND MOVED IN...WHAT NEXT? With a background in design, I often work with my clients well beyond the close of their home. Arguably that’s when the real fun begins! From a fresh palette to transform the walls, all the way to finishes & furnishings + everything in between.
WE MIGHT DISCUSS: + LAYOUT + TEXTILES + LIGHTING + STYLING + COLOR CHOICE + LIVABLE + YOU
@YOURNORTHWESTAGENT
YOUR AGENT DIRECTLY REFLECTS YOU AS A BUYER TAKE THIS CHOICE SERIOUSLY. I am driven, have a great attention to detail and am enjoyable to work with. I have an excellent record of exceeding client expectations which has resulted in a healthy referral base. I mentioned earlier my focus on quality over quantity. Part of that mantra is that I choose not work with multiple buyers or sellers with competing profiles at the same time. This is an integral piece of my specific level of service and commitment to my clients. In turn I require a reciprocal commitment to exclusivity. I also touched on my love for design. This innate sense of spatial relation, love for architecture and passion for DOMICILE MATCHMAKING allows me to help (not only my clients if they are on the purchasing side) but on the listing side, allows me to help potential buyers envision how your home might work for them or be re-imagined to better suit their unique set of needs. I DON’T SETTLE FOR THE OBVIOUS PATH, BUT AM ALWAYS EXPLORING THOSE LESS TRAVELED IF IT MIGHT SERVE MY CLIENTS NEEDS AND BRING THEM JUST THAT MUCH CLOSER TO THE SALE OF THEIR HOME.
The relationships I develop with my clientele mimic a small business…being together every step of the way and ultimately in it to win it. It’s this level of engagement that makes the “perfect fit” so important. FOR ME IT’S ABOUT THE RELATIONSHIP AND JOURNEY VS. THE TRANSACTION. I AM SUCCESSFUL THROUGH MY POISED NEGOTIATION, ABILITY TO WORK SEAMLESSLY WITH FELLOW AGENTS AND ULTIMATELY THROUGH CLOSING THE TRANSACTION FOR MY CLIENTS. Another value to my client partnerships is simply, Windermere. There is a level of respect and accreditation that immediately sets a Windermere agent apart. Not only is Windermere the leader in market share in the Pacific Northwest, but they are proud to be #1 in supporting communities throughout the Western US. THE WRE FOUNDATION HAS RAISED OVER 35M TO SUPPORT LOW-INCOME AND HOMELESS FAMILIES THAT ARE IN NEED. WINDERMERE PRIDES ITSELF IN GIVING BACK AND BOASTS 100% AGENT PARTICIPATION IN SUPPORTING THIS MISSION. Windermere has 7,000 agents in 300 offices in 11 states throughout the Western United States. It is the largest real estate company in the Pacific Northwest and largest regional real estate company in the Western United States.
GIVING BACK Corporate Philanthropists
We’re in Good Company
PROUD TO BE IN SUCH AMAZING COMPANY
The Puget Sound Business Journal publishes an annual “Corporate Philanthropists” list ranking the region’s top 25 companies by cash giving in Washington State. In the 2016 list, the Windermere Foundation climbed four places from the previous year to become the 16th largest corporate philanthropist in this region with cash contributions of more than $1.42 million. We’re very proud of this accomplishment and to stand alongside other reputable companies such as Microsoft Corp., The Boeing Co. and Costco Wholesale Corp. We couldn’t have done it without our generous agents whose donations fund the Windermere Foundation.
Corporate Philanthropists
Ranked by cash giving in Washington in 2016 (Company Revenues exceeding $500M)
1 2 3 4
16
$63.53 M $166.18 M
The Boeing Co | Seattle, WA | boeing.com ■❱ 2016 Corporate and foundation giving in Washington ■❱ 2016 Total corporate and foundation cash giving companywide
$26.87 M $125.86 M
Costco Wholesale Corp | Issaquah, WA | costco.com ■❱ 2016 Corporate and foundation giving in Washington ■❱ 2016 Total corporate and foundation cash giving companywide
$7.70 M $34.00 M
JPMorgan Chase & Co | Seattle, WA | jpmorganchase.com ■❱ 2016 Corporate and foundation giving in Washington ■❱ 2016 Total corporate and foundation cash giving companywide
$4.90 M $241.70 M
Paccar Inc. | Bellevue, WA | paccar.com ■❱ 2016 Corporate and foundation giving in Washington ■❱ 2016 Total corporate and foundation cash giving companywide
$4.80 M $7.00 M
The Windermere Foundation | Seattle, WA | windermere.com ■❱ 2016 Corporate and foundation giving in Washington ■❱ 2016 Total corporate and foundation cash giving companywide
$1.42 M $1.92 M
*As published on May 19, 2017 in the Puget Sound Business Journal.
©2018 WINDERMERE SERVICES COMPANY. ALL RIGHTS RESERVED.
5
Microsoft Corp | Redmond, WA | microsoft.com ■❱ 2016 Corporate and foundation giving in Washington ■❱ 2016 Total corporate and foundation cash giving companywide
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IN THE KNOW TERMS TO REMEMBER
LOAN AMOUNT The amount of the mortgage based on the purchase price, minus the down payment. DOWN PAYMENT Cash that the buyer provides the lender as their portion of the purchase price. The down payment is considered the buyer’s equity (or cash investment) in their home. POINTS Fees charged by the lender to offset their interest rate, if it’s below the prevailing market rate. One point equals one percentage point—so one point on a $100,000 loan would be $1,000. APPRAISAL FEE The amount paid for the lender’s appraisal of the property. CREDIT REPORT FEE The fee charged by the lender to obtain a credit report on the buyer. TITLE INSURANCE FEE A one-time premium that a buyer pays for protection against loss or damage in the event of an incorrect search of public records or misinterpretation of title. The title insurance policy also shows what the property is subject to in terms of liens, taxes, encumbrances, deed restrictions and easements.
ESCROW FEE The amount a buyer pays the escrow company or closing agent for preparing papers, accounting for all funds and coordinating the information between all parties involved in the transaction. CLOSING COSTS A general term for all the estimated charges associated with the transfer of ownership of the property. PREPAID INTEREST The amount of interest due on the loan during the time period between closing of escrow and the first mortgage payment, due at the time of closing. PITI The estimated house payment, including principal, interest, taxes and insurance. PRINCIPAL AND INTEREST The loan payment, consisting of the amount to be applied against the balance of the loan, and the interest payment, which is charged for interest on the loan. TOTAL CASH REQUIRED The total amount of cash the buyer will need, including down payment and closing costs. PREMIUM MORTGAGE INSURANCE (PMI) Insurance for the lender, to cover potential losses if the borrower defaults on the loan.
BUYER’S EXPENSE ESTIMATED
PREPARED BY DATE PROPERTY ADDRESS
Sale price
$
Loan amount
$
Real estate taxes
+ $
Hazard insurance
+ $
Mortgage insurance
+ $
Interest insurance
+ $
Title insurance
+ $
Loan service fee (__%)
+ $
Discount points
+ $
Document recording
+ $
Appraisal fee
+ $
Half the escrow fee
+ $
Credit report
+ $
Tax registration fee
+ $
Septic/water inspections
+ $
Miscellaneous
+ $
SUBTOTAL
= $
Down payment
–$
TOTAL BUYER'S EXPENSE
= $
W H AT C A N W E D O ? TO SAY THANK YOU
CLIENTS OFTEN ASK, ‘WHAT CAN WE DO TO SAY THANK YOU?’ Well first off, I want to say THANK YOU for the opportunity. I love my job! OK, to answer the question, it’s easy - tell your friends, colleagues and family. REVIEWS, REFERRALS AND TESTIMONIALS OF YOUR SATISFACTION ARE THE VERY BEST WAY TO LET ME KNOW THAT I AM DELIVERING IN FULL. Results and unsurpassed service are my main objectives when entering any partnership so if I have achieved that level of service then all you have to do is spread the word!
TOGETHER WE CAN CAPTURE WHAT YOU’VE BEEN SEARCHING FOR. I LOOK FORWARD TO WORKING WITH YOU