Ri411 Ppt Presentation Rathbun

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

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.
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.

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)

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.

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

Ri411 Ppt Presentation Rathbun

by Matthew Rathbun on Jul 07, 2009

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Ri411 Ppt Presentation Rathbun — Presentation Transcript