The Residential Real Estate Sales Process
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Transcript of The Residential Real Estate Sales Process
THE RESIDENTIAL SALEBUSHARI GROUP REAL ESTATE
TEXT
ACCREDITED BUYER’S REPRESENTATIVE
Through REBAC, real estate professionals can hone their skills in representing the needs of home buyers in real estate transactions and earn the coveted Accredited Buyer’s Representative (ABR®) designation. In addition to providing comprehensive training in buyer representation, REBAC helps its members maintain their superior skills and develop their business opportunities through continuing real estate education, updates on issues and trends, marketing tools, membership events, consumer awareness campaigns and more.
HOME PURCHASE OVERVIEW
INITIAL INTERVIEW
PRE-APPROVAL
PREVIEW PROPERTIES
OFFER TO PURCHASE
ACCEPTED OFFER
DUE DILLIGENCE
READY FOR P&S
NEGOTIATIONS
CREDIT CHECK
ISSUES
PURCHASE & SALE
LOAN APPLICATION
APPRAISAL
TITLE & DEED REVIEW
LOAN APPROVAL
CLEAR TO CLOSE
COMMENCEMENT
UNDERWRITING
NEGOTIATIONS
$
$
$
THE SEARCH PHASE THE PURCHASE PHASE
INITIAL INTERVIEW
THE INITIAL INTERVIEW - OVERVIEW
OBJECTIVES ADVANCE THE SALES FUNNEL
QUALIFY THE BUYER: READY, WILLING AND ABLE
SET EXPECTATIONS
ASSESS NEEDS AND WANTS
ESTABLISH RELATIONSHIP
BUILD RAPPORT
ASK FOR REFERRALS
FOR BUSHARI AGENTS ONLY
INITIAL INTERVIEW
MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
WHEN? FIRST FACE TO FACE MEETING
BEFORE DISCUSSING A SPECIFIC PROPERTY
WHY? 70% OF SELLERS SAID AGENT REPRESENTS THEM
70% OF BUYERS SAID AGENT REPRESENTS THEM
CONSUMER PROTECTION
ESTABLISHES THE NATURE OF RELATIONSHIP & FIDUCIARY OBLIGATIONS
INITIAL INTERVIEW
FIDUCIARY OBLIGATIONS
PRINCIPAL CLIENT BROKER OF RECORD
FIDUCIARY DUTIES ARE THE HIGHEST DUTIES RECOGNIZED BY THE LAW. AS A FIDUCIARY, A REAL ESTATE BROKER WILL BE HELD UNDER THE LAW TO OWE CERTAIN SPECIFIC DUTIES TO HIS PRINCIPAL (CLIENT), IN ADDITION TO ANY DUTIES OR OBLIGATIONS SET FORTH IN A LISTING AGREEMENT OR OTHER CONTRACT OF EMPLOYMENT.
AGENT SALESPERSON OWES FIDUCIARY OBLIGATIONS TO PRINCIPAL
YOU BECOME AN AGENT THROUGH THE EXECUTION OF A WRITTEN AGREEMENT, OR BY A COURSE OF CONDUCT!
INITIAL INTERVIEW
FIDUCIARY OBLIGATIONS
“AGENCY” OBEDIENCE
LOYALTY
DISCLOSURE
CONFIDENTIALITY
ACCOUNTING
REASONABLE CARE AND DILIGENCE
EASY TO REMEMBER ACRONYM: OLD CAR
INITIAL INTERVIEW
FIDUCIARY OBLIGATIONS
OBEDIENCE AN AGENT IS OBLIGATED TO OBEY PROMPTLY AND EFFICIENTLY ALL LAWFUL INSTRUCTIONS OF HIS PRINCIPAL.
DOES NOT INCLUDE AN OBLIGATION TO OBEY ANY UNLAWFUL INSTRUCTIONS.
INITIAL INTERVIEW
FIDUCIARY OBLIGATIONS
LOYALTY UNDIVIDED LOYALTY.
ACT AT ALL TIMES SOLELY IN THE BEST INTERESTS OF HIS OR HER PRINCIPAL TO THE EXCLUSION OF ALL OTHER INTERESTS, INCLUDING THE BROKER’S OWN SELF-INTEREST.
AVOIDS CONFLICT OF INTEREST.
CAN ONLY BE LOYAL TO ONE SIDE IN ONE TRANSACTION.
INITIAL INTERVIEW
FIDUCIARY OBLIGATIONS
DISCLOSURE FULL DISCLOSURE.
AN AGENT IS OBLIGATED TO DISCLOSE TO HIS PRINCIPAL ALL RELEVANT AND MATERIAL INFORMATION THAT THE AGENT KNOWS AND THAT PERTAINS TO THE SCOPE OF THE AGENCY.
MUST DISCLOSE TO THE SELLER ANY INFORMATION THAT MIGHT AFFECT THE SELLER’S ABILITY TO OBTAIN THE HIGHEST PRICE AND BEST TERMS IN THE SALE OF HIS PROPERTY.
MUST DISCLOSE TO THE BUYER ANY INFORMATION THAT WOULD AFFECT THE BUYER’S ABILITY TO OBTAIN THE PROPERTY AT THE LOWEST PRICE AND ON THE MOST FAVORABLE TERMS.
MUST DISCLOSE MATERIAL FACTS TO NON-PRINCIPAL.
MATERIAL FACT IS A FACT WHICH EXPRESSION (CONCEALMENT) WOULD REASONABLY RESULT IN A DIFFERENT DECISION
INITIAL INTERVIEW
FIDUCIARY OBLIGATIONS
CONFEDINTIALITY AN AGENT IS OBLIGATED TO SAFEGUARD HIS PRINCIPAL’S CONFIDENCE AND SECRETS.
MUST KEEP CONFIDENTIAL ANY INFORMATION THAT MIGHT WEAKEN HIS PRINCIPAL’S BARGAINING POSITION IF IT WERE REVEALED.
CONFIDENTIALITY IS THE ONLY OBLIGATION THAT DOESN’T END AT THE CLOSING!
INITIAL INTERVIEW
FIDUCIARY OBLIGATIONS
ACCOUNTING AN AGENT IS OBLIGATED TO ACCOUNT FOR ALL MONEY AND PROPERTY BELONGING TO HIS PRINCIPAL THAT IS ENTRUSTED TO HIM.
SAFEGUARD ANY MONEY, DEEDS, OR OTHER DOCUMENTS ENTRUSTED TO HIM THAT RELATE TO HIS CLIENT’S TRANSACTIONS OR AFFAIRS.
PERFORM NET SHEET FOR SELLERS.
CALCULATE MORTGAGE PAYMENTS FOR BUYERS.
CALCULATE RETURN ON INVESTMENT FOR INVESTORS.
INITIAL INTERVIEW
FIDUCIARY OBLIGATIONSREASONABLE CARE
AND DILIGENCE AN AGENT IS OBLIGATED TO USE REASONABLE CARE AND DILIGENCE IN PURSUING THE PRINCIPAL’S AFFAIRS.
STANDARD OF CARE IS OF A COMPETENT REAL ESTATE BROKER.
DUTY TO USE HIS SUPERIOR SKILL AND KNOWLEDGE.
OBLIGATION TO AFFIRMATIVELY DISCOVER FACTS AND INVESTIGATE.
DUTY SIMILAR TO THE DOCTOR’S OR LAWYER’S DUTY TO THEIR CLIENTS.
DUTY TO PROTECT THE CLIENT’S PROPERTY, EVEN WITHOUT THE CLIENT’S PERMISSION.
LACK OF DILIGENCE IS THE MAIN REASON FOR LAW SUITS!
INITIAL INTERVIEW
TYPES OF RELATIONSHIPS
SELLER / BUYER AGENT FIDUCIARY OBLIGATIONS TO SELLER / BUYER (CLIENT)
DUTY TO TREAT ALL PERSONS HONESTLY AND FAIRLY
SKILL AND EXPERTISE
MUST DISCLOSE MATERIAL FACTS
FACILITATOR NO FIDUCIARY OBLIGATIONS (CUSTOMER)
DUTY TO TREAT ALL PERSONS HONESTLY AND FAIRLY
REASONABLE SKILL AND EXPERTISE, ACCOUNTING
INITIAL INTERVIEW
TYPES OF RELATIONSHIPS
DUAL AGENCY OFFICE ALL AGENTS REPRESENTING ALL OFFICE’S CLIENTS
AGENTS HAVE IMPLIED KNOWLEDGE ABOUT ALL TRANSACTIONS
LOW LEVEL OF REPRESENTATION
BROKER OF RECORD HAS IMPLIED KNOWLEDGE
DESIGNATED AGENCY OFFICE BROKER DESIGNATES AGENT TO REPRESENT SPECIFIC CLIENT
OTHER AGENTS DON’T HAVE IMPLIED KNOWLEDGE
HIGH LEVEL OF REPRESENTATION
INITIAL INTERVIEW
TYPES OF RELATIONSHIPS
BROKER OF RECORD
AGENT A AGENT B
SELLERS BUYER SELLERS BUYER
IMPLIED KNOWLEDGE: A LEGAL CONCEPT THAT HOLDS AS A COMMON UNDERSTANDING THAT A MATERIAL FACT OR INFORMATION KNOWN BY A PRINCIPAL HAS BEEN PASSED ON TO AND THEREFORE IS KNOWN BY AN AGENT, AND VICE VERSA.
INITIAL INTERVIEW
TYPES OF RELATIONSHIPS
BROKER OF RECORD
SELLER’S AGENT BUYER’S AGENT
SELLERS BUYER
DUAL AGENCY
INITIAL INTERVIEW
TYPES OF RELATIONSHIPS
BROKER OF RECORD
SELLER’S AGENT BUYER’S AGENT
SELLERS BUYER
DESIGNATED AGENCY
INITIAL INTERVIEW
MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
INITIAL INTERVIEW
MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
INITIAL INTERVIEW
MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
INITIAL INTERVIEW
MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
INITIAL INTERVIEW
MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
INITIAL INTERVIEW
MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
INITIAL INTERVIEW
CONSENT TO DESIGNATED AGENCY
WHEN? FIRST FACE TO FACE MEETING
BEFORE SHOWING AN “IN-HOUSE” LISTING
WHY? GIVE PERMISSION FOR THE OTHER AGENT TO REPRESENT THE OTHER SIDE.
GIVE PERMISSION FOR YOU TO REMAIN THE CLIENT’S AGENT AND TO ACT AS IF THE OTHER AGENT IS FROM ANOTHER OFFICE.
ELEVATES THE RELATIONSHIP WITH YOUR CLIENT
INITIAL INTERVIEW
CONSENT TO DESIGNATED AGENCY
INITIAL INTERVIEW
CONSENT TO DESIGNATED AGENCY
INITIAL INTERVIEW
NOTICE OF DESIGNATED AGENCY
WHEN? AT OR BEFORE AN “IN-HOUSE” PREVIEW
MUST BE SIGNED BY BUYER, SELLER, AND BOTH AGENTS
WHY? WHEN THE CONSENT WAS GIVEN, IT WAS A HYPOTHETICAL SCENARIO, NOW IT’S REAL.
BUYER OR SELLER MUST KNOW THAT THE BROKER OF RECORD WON’T BE ABLE TO REPRESENT THEM IN THIS PARTICULAR TRANSACTION, SHOULD THEY DECIDE TO MOVE FORWARD WITH AN OFFER.
A REMINDER TO THE CLIENT.
INITIAL INTERVIEW
NOTICE OF DESIGNATED AGENCY
INITIAL INTERVIEW
NOTICE OF DESIGNATED AGENCY
INITIAL INTERVIEW
CONSENT TO DUAL AGENCY
WHEN? FIRST FACE TO FACE MEETING
BEFORE SHOWING YOUR LISTING TO YOUR BUYER
WHY? OWING FIDUCIARY OBLIGATIONS TO BOTH PARTIES IS A REAL CONFLICT.
PROTECTS BOTH CLIENTS FROM SHARING UNNECESSARY INFORMATION WITH YOU.
THIS IS ONE OF THE MAIN REASONS FOR BROKERS TO LOSE THEIR LICENSE.
THIS IS A HUGE LEVERAGE AGAINST YOUR COMMISSION.
INITIAL INTERVIEW
CONSENT TO DUAL AGENCY
INITIAL INTERVIEW
CONSENT TO DUAL AGENCY
INITIAL INTERVIEW
NOTICE OF DUAL AGENCY
WHEN? AT OR BEFORE A PREVIEW AT YOUR LISTING, WITH YOUR BUYER
MUST BE SIGNED BY BUYER, SELLER, AND AGENT
WHY? WHEN THE CONSENT WAS GIVEN, IT WAS A HYPOTHETICAL SCENARIO, NOW IT’S REAL.
BUYER OR SELLER MUST KNOW THAT YOU, THEIR AGENT, WON’T BE ABLE TO REPRESENT THEM IN THIS PARTICULAR TRANSACTION, SHOULD THEY DECIDE TO MOVE FORWARD WITH AN OFFER.
A REMINDER TO THE CLIENT.
INITIAL INTERVIEW
NOTICE OF DUAL AGENCY
INITIAL INTERVIEW
NOTICE OF DUAL AGENCY
INITIAL INTERVIEW
BUYER’S REPRESENTATION AGREEMENT
WHEN? AS SOON AS POSSIBLE, IDEALLY AT THE FIRST MEETING
SCOPE OF WORK IS OUTSIDE OF MLS
WHY? MEET THE LEVEL OF COMMITMENT
LIMITS THE AGENT’S RESPONSIBILITIES
TAKE A STEP FURTHER IN THE SALE’S FUNNEL
PREVENT OTHER REALTORS FROM INTERFERING
FOR BUSHARI AGENTS ONLY
INITIAL INTERVIEW
BUYER’S REPRESENTATION AGREEMENT
INITIAL INTERVIEW
BUYER’S REPRESENTATION AGREEMENT
INITIAL INTERVIEW
BUYER’S REPRESENTATION AGREEMENT
INITIAL INTERVIEW
BUYER’S REPRESENTATION AGREEMENT
PRE APPROVAL
PRE APPROVAL
WHEN? BEFORE PREVIEWING PROPERTIES
AS EARLY AS POSSIBLE
WHY?
SHOULD HAVE PRIOR TO PRESENTING AN OFFER
DETERMINE PRICE RANGE
YOU WON’T SHOW PROPERTIES TO UNQUALIFIED BUYERS
MIGHT HAVE TIME TO FIX CREDIT ISSUES
REALTORS MUST VERIFY BUYERS’ PURCHASE ABILITY PRIOR TO SUBMITTING AN OFFER (CODE OF ETHICS VIOLATION)
PRE APPROVAL
PRE APPROVAL VS. PRE QUALIFICATION
PRE APPROVAL ACCURATE ESTIMATE OF WHAT THE BUYER CAN AFFORD
FULL CREDIT CHECK
PRE QUALIFICATION
STRENGTHENS OFFER
INACCURATE ESTIMATE OF BUYER’S PURCHASING POWER
ONLY A VERBAL DISCUSSION
MOST LIKELY TO BE REJECTED BY A SELLER
PREVIEWING PROPERTIES
PREVIEWING PROPERTIES
OBJECTIVES FIND THE RIGHT PROPERTY TO PURCHASE
BUILD RAPPORT
EDUCATE THE BUYERS
GET THE BUYER’S COMMITMENT
GET REFERRALS FROM THE BUYER
FIND LISTINGS OPPORTUNITIES
FOR BUSHARI AGENTS ONLY
PREVIEWING PROPERTIES
PREVIEWING PROPERTIES
WHERE TO LOOK MLS
LINK
FSBO, MAKE ME MOVE
EXPIRED AND CANCELED LISTINGS
DIRECT MAILERS
WORD OF MOUTH (WHEN YOU CALL YOUR COI)
FOR BUSHARI AGENTS ONLY
PREVIEWING PROPERTIES
PREVIEWING PROPERTIES
STEPS FIND THE PROPERTIES
SCHEDULE THE APPOINTMENT WITH THE SELLER’S AGENT
SEND A CONFIRMED SCHEDULE TO THE BUYERS
PRINT THE DESCRIPTIONS AND BRING TO THE MEETING
GET FEEDBACK FROM BUYERS (COMPARE TOP TWO)
ALWAYS BE CLOSING
FOR BUSHARI AGENTS ONLY
OFFER TO PURCHASE
OFFER TO PURCHASE
WHAT IS AN OFFER? BINDING, LEGAL AGREEMENT TO PURCHASE REAL ESTATE
THE INITIATION OF A NEGOTIATION ON A PROPERTY
A WRITTEN AGREEMENT
A TIME SENSITIVE AGREEMENT
IN REAL ESTATE, A CONTRACT MUST BE IN WRITING IN ORDER TO BE BINDING!
OFFER TO PURCHASE
OFFER TO PURCHASE
COMPONENTS DESCRIPTION OF THE PROPERTY
PRICE
TIMING
AMOUNT OF DEPOSITS
CONTINGENCIES
TERMS (CONCESSIONS, MONEY BACK, LEASE BACK)
OFFER TO PURCHASE
STEPS BEFORE MAKING AN OFFER
BUYER’S AGENT CMA
OBTAIN SELLER’S FINANCIAL MOTIVATION
OBTAIN SELLER’S TIME MOTIVATION
EVALUATE BUYER’S NEEDS FOR CONTINGENCIES
SIGN LEAD PAINT DISCLOSURE
PREPARE BUYERS FOR EARNEST MONEY DEPOSITS
FOR BUSHARI AGENTS ONLY
OFFER TO PURCHASE
EARNEST MONEY AND ESCROWWHERE DOES THE
MONEY GO? WHAT IS ESCROW ACCOUNT?
WHO IS THE ESCROW AGENT?
HOW CAN THE EARNEST MONEY BE RELEASED?
WHEN IS EARNEST MONEY DUE?
WHAT IS EARNEST MONEY IS USED FOR?
WHY IS EARNEST MONEY NECESSARY? (BIND A CONTRACT)
MASSACHUSETTS’ LAWS ARE EXTREMELY STRICT REGARDING ESCROW FUNDS AND HOW THE ARE HANDLED.
OFFER TO PURCHASE
OFFER TO PURCHASEWHAT TO THINK
ABOUT? TIMELINE OF THE TRANSACTION
WHAT IS INCLUDED IN THE SALE? (FIXTURES VS. PERSONAL)
WHAT IS EXCLUDED FORM THE SALE?
WHAT CONTINGENCIES WILL THE BUYER NEED?
DOES THE BUYER NEED TO MOVE IN BEFORE THE CLOSING?
DOES THE SELLER NEED TO MOVE OUT AFTER THE CLOSING?
OUR OBJECTIVE IS TO PROTECT THE BUYER’S EARNEST MONEY, AND THEN THE TRANSACTION. THIS IS YOUR TIME TO SHINE!
FOR BUSHARI AGENTS ONLY
OFFER TO PURCHASE
CONTINGENCIESWHAT ARE
CONTINGENCIES? IMPORTANCE OF CONTINGENCIES
BACK DOOR
CAN THE BUYER USE CONTINGENCIES TO GET OUT OF A DEAL?
TYPES OF CONTINGENCIES
SETS THE BOUNDARIES OF THE TRANSACTION
LIMITS FINANCIAL EXPOSURE
OFFER TO PURCHASE
INSPECTION CONTINGENCY
WHY? SETS A LIMIT ON THE BUYERS FINANCIAL EXPOSURE ON REPAIRS
BACK DOOR
CAN THE BUYER USE CONTINGENCIES TO GET OUT OF A DEAL?
MUST BE DONE BY A DULY LICENSED MA INSPECTOR
COSTS $300-$700, PAID AT THE TIME OF INSPECTION
OFFER TO PURCHASE
MORTGAGE CONTINGENCY
WHY? PROTECTS THE EARNEST MONEY
NO FINANCING, NO DEAL
SETS THE EXPECTATIONS
CAN IT BE REMOVED?
OFFER TO PURCHASE
CONDO DOCUMENTS CONTINGENCY
WHY? KNOW WHERE YOU’RE BUYING
REVIEW HOW THE ASSOCIATION IS ESTABLISHED
REVIEW THE ASSOCIATION’S BUDGET
REVIEW THE ASSOCIATION’S MEETING MINUTES
WHAT TO BE AWARE OF? (LAW SUITS, MAJOR REPAIRS, NEIGHBORS)
REVEALS HOW THE ASSOCIATION IS OPERATING
OFFER TO PURCHASE
TRID ADDENDUM
WHY? NEW RESPA - TILA INTEGRATION ACT
AUTOMATIC EXTENSION IF CREDITOR FAILED TO GIVE NOTICE
SETS EXPECTATIONS
NOT A CONTINGENCY
OFFER TO PURCHASE
PROPERTY TRANSFER NOTIFICATION (LEAD PAINT)
WHY? PROTECTS UNBORN AND CHILDREN UNDER 6
PROPERTIES THAT WERE BUILT PRIOR TO 1978
BEFORE AN OFFER IS ACCEPTED
CANNOT BE WAIVED
SELLER’S RESPONSIBILITY
LIABILITY
WHEN?
MASSACHUSETTS’ LAWS ARE EXTREMELY STRICT REGARDING LEAD PAINT LAWS
OTHER CONSIDERATIONS
OFFER TO PURCHASE
OTHER CONSIDERATIONSTHINK OUT OF THE
BOX OPTION TO EXTEND
MOUNTED TV, BUILT IN SPEAKERS
COMMISSION PROTECTION CLAUSES
ACCESS PROVISIONS
SELLING AND BUYING SIMULTANEOUSLY, U&O
NEW CONSTRUCTION
WHEN IN DOUBT, PUT IT IN WRITING - ASSUME NOTHING!
FOR BUSHARI AGENTS ONLY
OFFER TO PURCHASE
WRITING AN OFFER
FORMS AGENCY DISCLOSURE
PRE APPROVAL / PROOF OF FUNDS
OFFER TO PURCHASE
CONTINGENCIES ADDENDUM & CONDO DOCS ADDENDUM
TRID ADDENDUM, ADDITIONAL ADDENDUM
LEAD PAINT DISCLOSURE
DEPOSIT CHECK (MAKE A COPY)
WRITING AN OFFER
OFFER TO PURCHASE REAL ESTATE
WRITING AN OFFER
OFFER TO PURCHASE REAL ESTATE
WRITING AN OFFER
CONTINGENCIES ADDENDUM
WRITING AN OFFER
CONTINGENCIES ADDENDUM
WRITING AN OFFER
CONDOMINIUM DOCUMENTS ADDENDUM
WRITING AN OFFER
TRID ADDENDUM
WRITING AN OFFER
TRID ADDENDUM
WRITING AN OFFER
PROPERTY TRANSFER NOTIFICATION (LEAD PAINT)
WRITING AN OFFER
PROPERTY TRANSFER NOTIFICATION (LEAD PAINT)
DUE DILIGENCE
WHAT IS DUE DILIGENCE?
WHEN? BETWEEN OFFER AND PURCHASE AND SALE AGREEMENT
REASONABLE STEPS TAKEN BY A PERSON IN ORDER TO SATISFY A LEGAL REQUIREMENT, ESPECIALLY IN BUYING OR SELLING SOMETHING.
WHAT? FINANCIAL EXPOSURE LIFESTYLE MEDICAL CONCERNS (SMOKING, ETC.)
YOU MUST KNOW YOUR CLIENT’S NEED WELL IN ORDER TO PROPERLY CONDUCT DUE DILIGENCE
DUE DILIGENCE
INSPECTION
WHAT TO LOOK FOR? STRUCTURAL DEFECTS (FOUNDATION, ROOF, SIDING, ETC.)
ELECTRICAL CONDITION (CODE, GROUND, SAFETY)
PLUMBING (CODE, FIXTURES, LEAKS)
HVAC (TYPE, CONDITION)
APPLIANCES (CONDITION)
ONGOING MAINTENANCE & LEARNING OPPORTUNITY
REAL ESTATE AGENTS MUSTN’T RECOMMEND AGAINST HOME INSPECTION!
FOR BUSHARI AGENTS ONLY
DUE DILIGENCE
CONDO DOCS, BUDGET AND MEETING MINUTES
WHAT TO LOOK FOR? RULES AND REGULATIONS
HIGH EXPENSES
EXPENSES THAT WERE NOT BUDGETED FOR
ASSOCIATION LOANS (USUALLY FOR MAJOR IMPROVEMENTS)
FUTURE ASSESSMENTS (VOTED OR UN-VOTED)
NEIGHBORS’ COMPLAINTS
ALWAYS SEND BUSHARI’S “QUESTIONS TO SELLER / MANAGER” FORM AFTER THE OFFER WAS ACCEPTED
FOR BUSHARI AGENTS ONLY
DUE DILIGENCE
REAL ESTATE ATTORNEY
WHY? ATTORNEY IS CRUCIAL DURING DUE DILIGENCE PHASE
ATTORNEY WILL WRITE THE P&S
THE OTHER SIDE WILL HAVE ONE
MORTGAGE COMPANY WILL REQUIRE ONE ANYWAY
VERY LOW COST
USUALLY FLAT FEE
REAL ESTATE AGENTS MUST NOT RECOMMEND AGAINST THE USE OF A REAL ESTATE ATTORNEY!
FOR BUSHARI AGENTS ONLY
PURCHASE AND SALE
PURCHASE AND SALE AGREEMENT
WHAT? FINAL PRICE AND TERMS
WAIVES CONTINGENCIES (NOT MORTGAGE)
LARGE EARNEST MONEY DEPOSIT
WRITTEN BY AN ATTORNEY
TIME IS OF THE ESSENCE
VERIFY THAT ALL OF THE SPECIAL PROVISIONS WERE ENTERED INTO THE P&S, DON’T TRUST THE ATTORNEY!
FOR BUSHARI AGENTS ONLY
MORTGAGE PROCESS OVERVIEW
PRE-APPROVAL
LOAN APPLICATION
LOAN ESTIMATE
LOAN APPROVAL
CLEAR TO CLOSE
COMMENCEMENT
UNDERWRITING
PHASE DOCUMENTS & TRIGGERSCREDIT CHECK, INITIAL INTERVIEW WITH CREDITOR
NAME, INCOME ADDRESS, VALUE, SSN, LOAN AMOUNT
CREDITOR MUST PROVIDE LOAN ESTIMATE WITHIN 3 BUSINESS DAYS
APPRAISAL, DOCS REVIEW, REQUEST FOR MORE DOCS
CLOSING DISCLOSURE ISSUED & DELIVERED 3 DAYS PRIOR TO COMMENCEMENT
LOAN IS FUNDED
TRANSACTION COMPLETED
FINALIZING THE TRANSACTION
WALKTHROUGH
WHEN? THE DAY OF, OR THE DAY BEFORE THE CLOSING, SOMETIMES EARLIER
VERIFY THAT THE PROPERTY IS IN THE SAME CONDITION
ALL SELLER’S BELONGINGS ARE CLEARED
ALL PUNCH LIST REPAIRS ARE COMPLETE
ALL APPLIANCES WORK
NOTHING IS MISSING (IF PERSONAL ITEMS WERE INCLUDED)
WHAT?
FOR BUSHARI AGENTS ONLY
FINALIZING THE TRANSACTION
COMMENCEMENT
WHERE? REGISTRY OF DEEDS, ATTORNEY’S OFFICE
BE THERE TO SUPPORT THE CLIENT
COLLECT YOUR COMMISSION
REQUEST A CLOSING DISCLOSURE
GIVE A CLOSING GIFT
ASK FOR REFERRALS
WHAT TO DO?
FOR BUSHARI AGENTS ONLY