Buyer's Guide 2013 for Maria Morton's clients

1. Buyer’s Guide 2013
by Maria Morton

2. Buying your next home in KC
We’ll go through the basics
and legal disclosures today
so that you understand how
the process works.
I’ll be there to answer your
questions and make sure
everything is done right so
that your Closing is as
smooth and easy as
possible.

3. Market Condition
Supply and demand define the cycle the market is in now.
Low Demand Supply High
Low Supply Demand High
Home Values
Greater than a 6 month supply of inventory indicates a Buyer’s Market;
Less than a 6 month supply of inventory indicates a Seller’s Market.

4. The Absorption Rate
For Sale
Sold
Low supply + High Demand
= High Absorption Rate
= More Competition
+ High Supply + Low Demand
= Slow Absorption Rate
= Less Competition

5. Who Are Buyers?
53% of first-time buyers
were 25-34 years old while
most repeat buyers were 35-
54 years old.
34% of homebuyers in
2012 were under 35 years old.
47% of all homes
purchased in 2012 were
bought by first-time buyers.
*from NAR study

6. Where do buyers learn about the home they
purchase?
Buyers Find
Internet
Real Estate Agents
Yard Signs
Friends & Relatives
Home Builders
Newspaper &
Magazines
Seller Direct
2%2%
5%
6%
12%
36%
36%

7. Action in our area over the last 24 hours.
Dynamic.

8. 93% of first-time
buyers began their
search on the internet
before contacting a real
estate professional.
87% of repeat buyers
began their search on
the internet before
contacting a real estate
professional.
*NAR study

9. Foreclosures Short Sales REO’s Bank Owned Corporate Owned HUD homes FNMA
Freddie Mac For Sale By Owners Lease to Own Lease w/option Owner financing
All MLS listings & Not yet listed homes for sale go in the sorting hat
Your agent uses
professional software
and connections to
identify homes that
meet your needs &
wants.
You and your agent
eliminate all the
homes that do not
meet your criteria.
You go see the homes
that will work for you
in your life.
Save Time

10. Showing appointments are
arranged through CSS.
Wear comfortable clothes
and slip-on shoes as we
may need to take our shoes
off in some homes.
Please remember that
other people are arranging
their lives around your
schedule so timeliness is
important.
*Sellers expect buyers to be
qualified before seeing
their home.

11. Rolling Top 3
After each home we
see IRL, rate it #1, #2,
or #3 while it’s fresh
in your mind.
At the end of the day,
you’ll know exactly
which home you
really feel most
comfortable.

12. When you find the home you love, you can ‘think about it’ or you can act quickly.
Remember that if you like it better than any other home you’ve seen, someone
else may too. Try to avoid multiple offer scenarios if at all possible.

13. Open Houses
If you decide to visit homes
without your agent, be sure to
tell the agent at the Opens that
you are being represented by
your own agent. Ask your
agent to give you a stack of
their cards for you to give to
the other agents.
This saves you from being
overwhelmed with other
agents trying to represent you
and makes it easier to sign-in
at each Open you attend.

14. Making an Offer
In the 5,000 square miles covered by Heartland Multiple Listing
Service (MLS), an
Offer To Purchase Real Estate consists of:
1. Real Estate Contract & all applicable addenda
2. Earnest Money Deposit (EMD)
3. Proof of Funds in the form of a Letter of Pre-Approval
from a reputable lender OR a Letter of Guaranteed Funds
from your banker or trustee.

15. 10 Year Price History in Brookside & Waldo
Determining what price and terms to offer:
Your agent will help you build your initial offer
based on comparable sales data, competing
listing activity, and current market conditions.

16. Terms in the
Contract may
include
Price
Closing Date
Inspection Period
Financing
Mortgage Contingency
Earnest Money
Home Warranty
Closing Costs
Buyers often focus
only on price but there
is a bigger picture to
consider when writing
your offer.

17. Lead Based Paint Addendum
Prior to 1978, all paint was
manufactured with lead.
Lead, if ingested, has been
shown to cause brain
damage, learning disabilities,
and other health problems.
A Lead Based Paint
Addendum is required to be
part of the contract on all
homes built before 1978.
Your agent will provide you
with a Lead Based Paint
Booklet.

18. Agency Agreements
Sellers contract an agent to help them by signing a Listing
Agreement. Buyers contract an agent to help them by signing a
Buyer’s Agency Agreement.
Caveat Emptor—’Buyer Beware’ In
the 1990’s Consumer Advocacy
Groups finally won the long hard
battle convincing the US Congress
that buyers of real estate deserved
the same rights of representation
that sellers have always enjoyed.
This resulted in the creation of
Buyer’s Agency so that today both
buyers & sellers have the right to
representation.

19. Seller’s Agent: represents the Seller. This agreement is put in place before the home is
listed for sale. List price, selling terms, and commission are determined between the
seller & their agent. The Listing Agent (Seller’s Agent) promises, in writing, to
represent and promote the best interests of the Seller.
Buyer’s Agent: represents the Buyer.
The Buyer’s Agent promises, in
writing, to represent the best
interests of the Buyer, protect their
confidential information, give their
best professional advice and opinion,
and deliver earnest monies on time.
Transaction Broker: is when an Agent represents both parties before the Buyer
decides to buy the Seller’s home. (Unusual) With both parties written agreement, the
Agent can convert to Transaction Broker. This means that the Agent is responsible for
managing the transaction but may no longer offer advice and opinion to either party.
Designated Agency: applies to Seller or Buyer. Should something happen to the Agent
in the middle of her client’s transaction, the Agent’s Broker would appoint another
Agent to complete the transaction.

20. Commission is determined
by the Listing Agent &
Seller. The Listing Agent
offers a percentage of that
commission to the
Cooperating Buyer’s Agent
– aka Co-Op. After Closing,
the percentage commission
is paid to the Buyer’s Broker
& Agent out of the Seller’s
funds.
Better Homes & Gardens
Real Estate - Kansas City
Homes charges a Broker’s
Administration Charge of
$210/side/transaction. This
is paid out of the Buyer’s
funds at Closing.
Commission

21. NegotiationsA knowledgeable, experienced
agent is invaluable during
negotiations. You not only have
the advantage of her sound advice
and counsel, you have a buffer
between yourself and the
seller/seller’s agent should
tensions rise. Your agent
negotiates with your best interests
in mind.
Round one begins when you make
your offer. There may be additional
negotiations after the inspections.
It is not unusual for sellers to
become emotional after
inspections so there is a waiting
period built into the contract.
When all parties come to
agreement, the waiting period can
be waived.

22. Inspection Period
Begins at one minute after
midnight once all parties
have signed the contract.
Your agent will help you
arrange inspections including
Whole House, Termite, and
other inspections as
indicated.
Depending on the home, you
may wish to get a chimney,
radon, drain line, structural,
or other inspection.
Your agent will coordinate all
inspections.

23. Resolution of Unacceptable Conditions
We can use anything noted
on the Inspectors’ written
reports to ask the seller to fix
any major, minor, or safety
issues.
No home is perfect but you
want to be sure the home is
without major defects before
moving forward toward
Closing.
Remember that you can ask
for anything but the more
you ask for, the more likely is
the seller to say no.

24. Resolved & Moving Forward
Once the seller & buyer agree on the Resolution, the Title Company and
Lender (if the buyer is using a mortgage) can begin their work.
The Title Company will run
the title checks and begin
preparing Closing documents.
The Lender will order an
appraisal.
The Agents will send
copies of the contract to
everyone who needs
one.
If the home appraises
out, the Lender will
begin final loan
approval process and
send to Underwriter.
Your Agent will monitor
progress over the next
few weeks so that you
can close on time.
If your Agent, Closer, or Lender requests
documents from you during this time,
it’s very important that you get them
what they need ASAP.

25. Closing
In Missouri & Kansas, buyers and
sellers close separately.
This may be different from your
experience in another location.
A day or three before Closing, you
and your agent will receive &
review the HUD-1 Final Settlement
Statement. This will have the final
numbers for you.
After you’ve signed all the
documents and given your check,
change in title will be recorded
with the County Recorder.
Your agent will give you the keys to
your new home and you move in!

27. So, of all the agents in KC, why choose to work with Maria Morton?
Maria is dedicated to guiding her clients smoothly through the process, providing all
the information you need to make wise decisions. She is an excellent educator,
advocate, advisor, confidénte, negotiator, and transaction manager. Maria actively
listens to her clients so that she understands their needs, wants, and fears before
helping them attain their goals.
One of her clients said “She could have sold me anything but she didn’t; she was
watching out for my best interests – the way it should be!”.

28. Tools for you
Scan the QR Code with the
QR code reader app on your
phone.
See homes for sale as
you’re standing in front of
them.
Proprietary local software
updated directly from the
MLS every 10 minutes.