Walt Cannon Buyer's Packet

Especially Prepared For:A Prospective Buyer

Presented by:Walt Cannon, CRS, GRIBroker AssociatePrudential Kahler REALTORS2401 W. Main StreetRapid City, South Dakota 57702

Office: 605-343-7500home 605-394-8855Cell 605-390-3290Fax 605-343-7686E-mail: [email protected]

Date: November 15, 2012

©2012, BRER Affiliates Inc. An independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudentiallogo and Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictionsworldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.

November 15, 2012

A Prospective Buyer

Dear Buyers:

Thank you very much for giving me the opportunity to help you find your next home. I understand that buying a home is a major decision. My goal is to take you throughthe homefinding process, making it as efficient, stress-free and successful as possible. The purpose of this Homefinding Guide is to help you understand the process offinding and buying a home, to acquaint you with the kinds of housing and financingchoices that are available and to assist you throughout the homebuying process. In order to best serve you, I will need to spend time with you learning more about yourunique needs, both in a home and of your real estate sales professional. My goal is thatyou will be delighted with your homebuying experience. Please feel free to call on meat any time, ask questions and share your concerns with me. Again, thank you for allowing me to help you select your next home.

Very truly yours,

Walt Cannon, CRS, GRIBroker Associate, REALTOR®

How I can help you

I will apply my knowledge and expertise to help you find the righthome. Here is what you can expect from me:

n I will work with you at every stage of the homefinding process, from the initialselection of properties to view, through the presentation of a purchase offer, toobtaining financing and the completion of the transaction.

n Communication is important. We will want to agree to a system of regularcontacts (whether in person, on the phone, by mail, fax or e-mail) so thatyou can be kept informed at all times.

n I will give you reliable information and solid advice so that you can makeinformed decisions. Please don't hesitate to ask questions.

It is my hope that you will be so pleased with my service that you will turn to mefor advice on your future real estate needs and refer me to your friends.

Your needs come firstFinding and buying the right home is a highly personalizedprocess, and it all begins by identifying your needs.

As you think about finding a home, the following worksheets can help me clarifyyour needs. These worksheets explore areas such as:

n The values, interests and priorities you want this move to support.

n The features you are looking for in a home.

n How a neighborhood can best match your needs and lifestyle.

n How the homefindingprocess will need to betailored to fit your plans.

n The support you expectto receive from me.

Walt Cannon, CRS, GRIOffice: 605-343-7500home 605-394-8855Cell 605-390-3290Fax 605-343-7686E-mail: [email protected]

Looking ahead to the homefinding process

The following questions will help identify how finding and buyinga home can be an enjoyable experience for you.

1. How far along are you in the homefindingprocess (just thinking about the possibility ofbuying a home, or definitely committed tomaking a move)? How long have you beenlooking for a home?

2. Why are you contemplating the purchase ofa home at this time?

3. What is your time frame? Is there a definitetime by which you must be settled in yournew home?

4. Who will be included in the homefinding andbuying decisions?

5. Have you ever purchased a home before?If so, how many, and how recently?

6. Thinking of previous homefinding experiences,what were the most positive features of thoseexperiences? If you have never bought a homebefore, what are you looking forward to mostin the experience?

7. Were there any unpleasant features of yourprevious homefinding experiences that youhope to avoid this time? If you are buyingyour first home, are there any problems orconcerns you are worried about?

8. How do you plan to handle the financing ofyour new home? Are you aware of yourfinancing options?

9. What are your expectations of me as your realestate professional? What specific servicesand support do you expect?


Defining your ideal home

The property you buy will be much more than a house; it will beyour home. The following questions can help you describe the thingsthat are most important to you in your ideal home and neighborhood.

1. For some people, "home" means a hub ofsocial activity; for others it might be a place toretreat from the pressures of daily life.What does "home" mean to you?

2. Who will be living in your household? Will youoften have other family members or friendsvisiting for more than a few days at a time?

3. If you will be working outside your home,what would you consider a comfortablecommute (in time or distance)? Will you beworking at home?

4. What are the most important activities forthe members of your household? For example,hobbies, recreation, school, entertaining,religious or cultural activities.

5. What are one or more features you likedmost about homes you have lived inpreviously? This might include style:floorplan, yard, view, and neighborhood.

6. What is something you disliked about thehouse or neighborhood where you have livedpreviously, and that you would want to avoidin your next home?

7. What are the most important "must have"features of your ideal home and neighborhood?Why are they important?


Finding and buying a home

The homefinding process typically includes many of the followingelements. I will be your resource and guide every step of the way.

Initial Consultationn Determine your priorities and needsn Review "agency" choices and select appropriate

working relationshipn Discuss financing options

Finding the Right Homen Sales professional to show you properties based on your criterian Evaluate each property with sales professionaln Choose the right home

Preparing an Offern Review comparable sales to determine offer pricen Review progress of loan pre-approval;

decide on financingn Decide on other terms (inspections, possession date,

personal property, etc.)n Prepare earnest money deposit

Reaching an Agreement with a Sellern Present your offern Negotiation of terms and possible counteroffersn Agreed-upon sales contract with seller

Completing the Settlement Processn Deposit of earnest moneyn Review seller's property disclosuresn Review preliminary title reportn Roof, termite and other inspectionsn Remove any remaining contingenciesn Arrange for homeowners insurancen Arrange for home warrantyn Arrange for moversn Final walk-through of property with sales professionaln Provide balance of down payment and closing costsn Sign documentsn Loan fundingn Recording of titlen Receive keys from sales professionaln MOVE IN!

Obtain Financingn Find a mortgage companyn Consult with a loan officern Pre-qualificationn Complete loan applicationn Obtain loan pre-approvaln Provide requested documentation

n Property appraisaln Loan processingn Final loan approval


How to look at homes

Discovering the right home should be an exciting event. As aPrudential Real Estate professional, my commitment is to makeyour home search as stress-free and efficient for you as possible.

n Identifying up-front what is affordable will save time and frustration in thehomefinding process. It is important to consider the financing options availableand to begin the mortgage pre-approval process as soon as possible.

n From the multitude of properties currently on the market, I will select those thatmost closely meet your unique needs and interests. It is best to preview only afew homes at a time.

n We will schedule time to look at homes and neighborhoods. I will arrangeshowing appointments with the sellers or their brokers.

n If the seller or their real estate professional is at the property when we are there,it would be best for you to limit your conversation with them.

n You can use the Homefinding Worksheets I give you to evaluate each property.

n In order to help me find the right home for you, I will ask you to tell me your thoughts about each property you see — the positivesand the negatives. We will continue to assess your needs and buying criteria.


Submitting an offer

Once you have found the right property, the next step is to makea purchase offer to the seller.

Determine the price you want to offer.

n The price the seller is asking may or may not reflect realistic market value.

n The best way to determine market value is with a Comparative MarketAnalysis (CMA) showing similar properties that sold recently, those thatare currently active on the market and those that failed to sell.

n I will discuss with you an estimate of costs associated with purchasingthis property.

Decide on financing.

n We will review together the status of your loan pre-approval.

n We will work together with your loan officer to explain financing optionsand help you determine the mortgage plan that best fits your requirements.

Decide on other issues that are important to you, such as:

n Items of personal property you want included with the house.

n Warranty, inspections, repairs or other home enhancements by the seller.

n Closing date and possession.

I will present your offer.

n The seller will have three choices: accept your offer as it is presented;reject it completely; or propose adjustments to your offer (counteroffer).

n If there is a counteroffer, you can choose whether to accept it, reject itor counter it.

Once you have reached agreement with the seller, you will have a firmcontract to purchase the home.


Important ways toprotect your interests

There are several ways to help support a trouble-free homepurchase:

n A written property disclosure statement from the seller will reveal anyproblems with the house and the surrounding area that you need to knowabout.

n Professional inspections can reveal structural, roof, termite, and otherproblems with the property that the seller will need to remedy.

n A home warranty can give you peace of mind by providing repair-or-replacecoverage of major home operating systems and appliances.

n A preliminary title report informs you of any problems with the property’stitle and a policy of title insurance protects your rights to the property.

n A walk-through before closing will allow you to make sure all required workhas been taken care of and that the property is ready to become yours.


Walt Cannon Buyer's Packet

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