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The Residential Real Estate Sales Process

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Slide show covering the Massachusetts Residential Sale's Process. Real Estate Agent Training by Bushari Real Estate.

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The Residential Real Estate Sales Process

  1. 1. THE RESIDENTIAL SALE BUSHARI GROUP REAL ESTATE
  2. 2. 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.
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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!
  7. 7. INITIAL INTERVIEW FIDUCIARY OBLIGATIONS “AGENCY” OBEDIENCE LOYALTY DISCLOSURE CONFIDENTIALITY ACCOUNTING REASONABLE CARE AND DILIGENCE EASY TO REMEMBER ACRONYM: OLD CAR
  8. 8. 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.
  9. 9. 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.
  10. 10. 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
  11. 11. 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!
  12. 12. 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.
  13. 13. INITIAL INTERVIEW FIDUCIARY OBLIGATIONS REASONABLE 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!
  14. 14. 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
  15. 15. 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
  16. 16. 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.
  17. 17. INITIAL INTERVIEW TYPES OF RELATIONSHIPS BROKER OF RECORD SELLER’S AGENT BUYER’S AGENT SELLERS BUYER DUAL AGENCY
  18. 18. INITIAL INTERVIEW TYPES OF RELATIONSHIPS BROKER OF RECORD SELLER’S AGENT BUYER’S AGENT SELLERS BUYER DESIGNATED AGENCY
  19. 19. INITIAL INTERVIEW MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
  20. 20. INITIAL INTERVIEW MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
  21. 21. INITIAL INTERVIEW MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
  22. 22. INITIAL INTERVIEW MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
  23. 23. INITIAL INTERVIEW MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
  24. 24. INITIAL INTERVIEW MANDATORY CONSUMER LICENSEE RELATIONSHIP DISCLOSURE
  25. 25. 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
  26. 26. INITIAL INTERVIEW CONSENT TO DESIGNATED AGENCY
  27. 27. INITIAL INTERVIEW CONSENT TO DESIGNATED AGENCY
  28. 28. 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.
  29. 29. INITIAL INTERVIEW NOTICE OF DESIGNATED AGENCY
  30. 30. INITIAL INTERVIEW NOTICE OF DESIGNATED AGENCY
  31. 31. 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.
  32. 32. INITIAL INTERVIEW CONSENT TO DUAL AGENCY
  33. 33. INITIAL INTERVIEW CONSENT TO DUAL AGENCY
  34. 34. 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.
  35. 35. INITIAL INTERVIEW NOTICE OF DUAL AGENCY
  36. 36. INITIAL INTERVIEW NOTICE OF DUAL AGENCY
  37. 37. 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
  38. 38. INITIAL INTERVIEW BUYER’S REPRESENTATION AGREEMENT
  39. 39. INITIAL INTERVIEW BUYER’S REPRESENTATION AGREEMENT
  40. 40. INITIAL INTERVIEW BUYER’S REPRESENTATION AGREEMENT
  41. 41. INITIAL INTERVIEW BUYER’S REPRESENTATION AGREEMENT
  42. 42. 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)
  43. 43. 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
  44. 44. 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
  45. 45. 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
  46. 46. 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
  47. 47. 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!
  48. 48. OFFER TO PURCHASE OFFER TO PURCHASE COMPONENTS DESCRIPTION OF THE PROPERTY PRICE TIMING AMOUNT OF DEPOSITS CONTINGENCIES TERMS (CONCESSIONS, MONEY BACK, LEASE BACK)
  49. 49. 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
  50. 50. OFFER TO PURCHASE EARNEST MONEY AND ESCROW WHERE 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.
  51. 51. OFFER TO PURCHASE OFFER TO PURCHASE WHAT 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
  52. 52. OFFER TO PURCHASE CONTINGENCIES WHAT 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
  53. 53. 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
  54. 54. OFFER TO PURCHASE MORTGAGE CONTINGENCY WHY? PROTECTS THE EARNEST MONEY NO FINANCING, NO DEAL SETS THE EXPECTATIONS CAN IT BE REMOVED?
  55. 55. 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
  56. 56. OFFER TO PURCHASE TRID ADDENDUM WHY? NEW RESPA - TILA INTEGRATION ACT AUTOMATIC EXTENSION IF CREDITOR FAILED TO GIVE NOTICE SETS EXPECTATIONS NOT A CONTINGENCY
  57. 57. 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
  58. 58. OFFER TO PURCHASE OTHER CONSIDERATIONS THINK 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
  59. 59. 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)
  60. 60. WRITING AN OFFER OFFER TO PURCHASE REAL ESTATE
  61. 61. WRITING AN OFFER OFFER TO PURCHASE REAL ESTATE
  62. 62. WRITING AN OFFER CONTINGENCIES ADDENDUM
  63. 63. WRITING AN OFFER CONTINGENCIES ADDENDUM
  64. 64. WRITING AN OFFER CONDOMINIUM DOCUMENTS ADDENDUM
  65. 65. WRITING AN OFFER TRID ADDENDUM
  66. 66. WRITING AN OFFER TRID ADDENDUM
  67. 67. WRITING AN OFFER PROPERTY TRANSFER NOTIFICATION (LEAD PAINT)
  68. 68. WRITING AN OFFER PROPERTY TRANSFER NOTIFICATION (LEAD PAINT)
  69. 69. 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
  70. 70. 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
  71. 71. 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
  72. 72. 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
  73. 73. 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
  74. 74. MORTGAGE PROCESS OVERVIEW PRE-APPROVAL LOAN APPLICATION LOAN ESTIMATE LOAN APPROVAL CLEAR TO CLOSE COMMENCEMENT UNDERWRITING PHASE DOCUMENTS & TRIGGERS CREDIT 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
  75. 75. 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
  76. 76. 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

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