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Ri411 Ppt Presentation Rathbun Ri411 Ppt Presentation Rathbun Presentation Transcript

  • Welcome to…
    RI 411: Successful Settlement
    Matthew Rathbun, Principal Broker
    ABR, ABRM, AHWD, ASR, CNE, CSP, e-PRO, GREEN, GRI, QSC, SRS, SRES, RECS
  • What is our mission for today?
    Successful Settlements
    Table of Contents
  • Premise
    View slide
  • Section 1: Checklists and Timelines
    As a result of this session, you will be able to:
    • Identify the importance of utilizing and refining checklists to keep you on track. View slide
    • Implement and revise a timeline to track all facets of the transaction to include all responsible parties.
    • Identify the benefits of providing service beyond the basics.
    Page 3
  • Computer Systems
    Tracking the Transaction
  • www.TopProducer.com
  • Active Agent for Outlook
    http://www.sonomaenterprises.com
  • Pat Zaby’s Respond Software
    www.PatZaby.com
  • www.SettlementRoomExpress.com
  • Microsoft Outlook
  • www.RealFutureCRM.com
  • The Sale Begins When the Listing Agreement is Signed
    Successful settlements begin before even encountering the client
    Page 4
  • Setup the Successful Listing
    How should showing access be setup?
    Multiple Systems / combo boxes
    How to Showcase the home
    MLS Advertising
    How to handle offers to purchase
    Office Tours
    Open Houses
    Property Staging and Repairs
    What else…?
    Page 4
  • Evaluating the Seller’s Position
    Seller Estimate of Costs
    Short Sale Evaluation
    Letter to Negotiate
    Letter to Obtain Payoff
  • Timeline Tracking
  • Listing Action Plan – Page 5
  • Checklist of Listing ProcessingPage 6
  • You’ve got an offer…
    …now what?
    When Do You Use theContract Review Checklist?
    Page 7
  • Confidentiality
    Standard of Practice 1-13
    When entering into buyer/tenant agreements, Realtors must advise potential clients of:
    1) Realtors company policies regarding cooperation;
    2) the amount of compensation to be paid by the client
    3) the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties
    4) any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g., listing broker, sub-agent, landlords agent, etc., and
    5) the possibility that sellers or sellers representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties.
    (Adopted 1/93, Renumbered 1/98, Amended 1/06)
    Standard of Practice 1-15
    Realtors, in response to inquiries from buyers or cooperating brokers shall, with the sellers approval, disclose the existence of offers on the property. Where disclosure is authorized, Realtors shall also disclose whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker
    (Adopted 1/03, Amended 1/06)
  • Contract Review ChecklistPages 8 and 9
  • When do you use the Contract Checklist?
    Whenever you write a contract
    Prior to presenting a contract to another agent
    Prior to presenting a contract to a seller
    Page 10
  • Contracts Importance
    Why is it important that contracts are written properly?
    • They are the blueprint for the entire transaction
    • All parties should understand the terms of the contract
    • It may be used in a court of law
    • Spells out the obligations of each party
    • Spells out the timeframes for performance
    Page 10
  • Applications of the Code
    Articles 1-9 Deal with Client Obligations
    Standard of Practice 1-6REALTORS® shall submit offers and counter-offers objectively and as quickly as possible. (Adopted 1/93, Amended 1/95)
    Standard of Practice 1-7 When acting as listing brokers, REALTORS® shall continue to submit to the seller/landlord all offers and counter-offers until closing
    Standard of Practice 1-8REALTORS® , acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing.
  • Applications of the Code
    Standard of Practice 1-9The obligation of REALTORS® to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. REALTORS® shall not knowingly, during or following the termination of professional relationships with their clients:
    Standard of Practice 3-2REALTORS® shall, with respect to offers of compensation to another REALTOR®, timely communicate any change of compensation for cooperative services to the other REALTOR® prior to the time such REALTOR® produces an offer to purchase/lease the property. (Amended 1/94)
  • Applications of the Code
    Standard of Practice 3-6REALTORS® shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation. (Adopted 5/86, Amended 1/04)
    Article 12 REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations.
  • Applications of the Code
    Standard of Practice 16-16REALTORS®, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation. (Amended 1/04)
  • Ernest Money Deposits
    When must deposits be made?
    What is Broker’s Role?
    How can disbursement be made?
    Mutual Consent
    Judicial Order from Court of Competent Jurisdiction
    Broker Discretion
    30 Day notice, certified mail
  • Why is a Properly Written Contract So Important?
  • Contract Considerations
  • How Can I Protect the Consumer as Well as Myself When Writing a Contract?
  • Learn How to Present Offers
  • 6 Steps to Presenting
    1. Hit Highlights – set aside
    2. Present copy to each decision maker
    3. Review entire contract
    4. Answer questions
    5. Accept or Counter (avoid “rejections”)
    6. Give client a copy of what they signed.
    Page 11
  • Negotiations: Why would two hero’s fight?
  • BATNA
    Best
    Alternative
    To
    A
    Negotiated
    Agreement
  • Developing a Checklist for Each Responsible Party
  • Checklist for each Partypages 12 - 19
  • Section 2:
    Buyer & Seller Services and Checklists
    As a result of this session, you will be able to:
    • Identify methods for providing lists of reputable service providers;
    • Utilize and refine checklists for buyers and sellers to use before, during, and after closing.
  • Service Providers
    How to Find a Service Provide Network
    • Networking with other REALTORS®
    • Classified Newspaper Ads
    • Internet
    • Solicitations (flyers, office visits)
    • Sales Meeting Presentations
    • Previous Clients
    • Educators
    Pages 20-23
  • Buyer’s Checklist(To present to your buyer)
  • Seller’s Moving Checklist ( To present to your seller)
  • Section 3: Preparing Information
    Pages 26 - 29
    Prepare information for all parties to
    the transaction including attorneys,
    title companies, lenders, appraisers, etc.
  • Section 4:
    Home Inspections and Warranties
  • Understanding the Home Inspector
    • Background and General Scope of Inspections
    • What does AS-IS mean?
    • Purpose of the Home Inspection?
    • Visual Inspection Only?
    • What isn’t covered?
    Pages 31,32 and 33
  • The Inspection Process
    • Who should be there?
    • Should Seller be present?
    • How can an agent help the process?
    • Opening a can of worms?
    • How long should an inspection take?
    Pages 34 - 37
  • The Inspection Process
    • Why do many different reports?
    • Inspectors interpreting the Sale Contract
    • (walk thru vs. repairs)
    • Can Inspector Specify Solutions?
    • How is the inspection helpful?
    • Instructor Certifications / Licensure?
    Pages 34 - 37
  • Virginia Residential Disclosure
  • Section 5: Working with Appraisers
    As a result of this session, you will be able to successfully communicate, assist and work with the appraiser.
  • URAR – Appraisal Report
  • CommunicationWith the Appraiser
    • Salespersons should share
    • Information about properties sold
    • Comparables used
    • Detailed list of upgrades and features
    • _______________________
    • _______________________
    • _______________________
    • _______________________
    • _______________________
    Page 38
  • Understanding Appraiser’s Needs
    Page 39
  • What does an Appraiser Look for?
    Pages 40 and 41
  • Handling Appraisal Challenges
    Sample Letter of VA Appraisal Appeal – Page 42
    Sample Letter of Standard Appraisal Appeal – Page 43
  • Section 6:Troubleshooting the Transaction
    You’ll be able to identify potential challenges in the home buying or home selling process and describe ways to resolve them.
  • Frequent Issues
  • People and Property Problems
    Pages 44 and 45
  • Section 7:
    Communicating to Prevent Problems
    Write a plan to keep all parties
    to the transaction informed.
    Page 47 and 48
  • The Walk-Thru
    Walk Thru Addendum
    Walk Thru versus Repair Inspections
  • Section 8:The Settlement
  • Truth-in-Lending
  • Dissecting the HUD-1Settlement Statement
  • Surveys
  • Handling Issues at the Table
  • Table Trouble I
    Pages 49 & 50
  • Table Trouble II
    Pages 50 & 51
  • The Settlement Statement – HUD1
    Pages 53 - 62
  • Clouds and Titles
    Joint Tenancy – Ownership reverts to other owners of undivided interest
    Tenancy in Common – Undivided interest that can be sold as a portion of ownership
    Tenancy by the Entirety – Agreement of ownership, typically between spouses
  • Bonus Section: Shortsales
  • Statutory Confidentiality
    54.1-2131 A
    3. Maintain confidentiality of all personal and financial information received from the client during the brokerage relationship and any other information that the client requests during the brokerage relationship be maintained confidential, unless otherwise provided by law or the seller consents in writing to the release of such information;
  • Short Sale Listing – the investigation
    Ask Difficult Questions
    Are you behind? (Should be asked of EVERY client)
    Have you called your Lender
    May I disclose the pursuance of the short sale?
    Can I obtain your pay-off information
    Commissions
    Routine Payment / Payoff Investigation
    Contingent Listing Agreement
  • Short Sale – The investigation
    Get Lender’s Short Sale Packet
    Does the Seller meet the Criteria for a Short-Sale
    Have all Options been explored
    Have they called / visited 995Hope.org?
    Have they spoken to an “investor”?
    Have they signed any documents for “assistance” from anyone other than lender?
  • Options for sellers
  • Tasks for agents to track
    Order Title Work – EARLY
    Follow up with Seller:
    Hardship Letter
    2 months reoccurring bills
    Proof of Assets and Income
    Obtain Draft HUD / Settlement Sheet
    Update CMA – Monthly
    Monthly Phone Call to Lender(s) *maybe more*
    DOCUMENT, DOCUMENT, DOCUMENT
  • HUD / Settlement Sheet
    This is a Final Seller Side, not Draft
    Should be done by Attorney
    Things to have for Attorney
    Arrears
    Taxes (back taxes)
    Commissions and Admin Fees
    Liens / Debts
    Legal Description
    Sales Price
    Pre-Payment Penalties
    Forbearance Payments
    Etc….
  • Tax relief act of 2007
    You’re not a CPA, and neither am I
    Signed December 20, 2007
    Excludes income made from real property sale
    Applies on to primary residence
    Forgives qualified debt for 2007, 2008 and 2009
    Only applies to properties under 2 million (1 million is married filing separately)
  • Offer to purchase agreements
    You CANNOT negotiate commission in terms of the offer to purchase
    Buyer Agency Agreement?
    Buyer required to pay commission?
    Home Inspections
    AS-IS
    Third Party Approvals
    When are you really ratified?
  • Force disclosure in the offer to purchase
    Recommendation to Paragraph 34:
    “As a condition of ratification, the seller obligates themselves to disclose to the purchaser if they are pursing a shortsale, or if they decide during the time period from ratification to closing, to pursue a shortsale. Notice of the Seller to the Purchaser shall be in a timely manner, and the Purchaser will have 3 days to decide to void the contract based on the decision to pursue a Shortsale.”
    Recommendation ONLY: Consult your Broker and legal counsel…
  • Buyer Consideration
    Lender on Board?
    When to Lock-in?
    Due Diligence for Buyer’s Agent
    Interviewing the Listing Agent
    When to walk away
    BPO versus Appraisal
    Distressed Market Areas (95% LTV)
    WikiMLS.com
  • www.VARealtor.com
    REALTOR® Institute