Matthew Rathbun's Virginia GRI Successful Settlement GRI PowerPoint.

1. Matthew Rathbun, Principal Broker
ABR, ABRM, AHWD, ASR, CNE, CSP, e-PRO, GREEN, GRI, QSC, SRS, SRES, RECS

2. 2

3. Buyer
Checklists
And Preparing Home The Problem Communi- The
And
Seller Information Inspections Appraiser Solving cations Settlement
Timelines
Services
Successful Settlements
3
Table of Contents

4. Thinking!
Critical
Use
4

5. 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

6. Tracking the Transaction

8. http://www.sonomaenterprises.com
8

9. www.PatZaby.com

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10. 10

11. 11

12. 12

13. Page 4

14. 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…?

14
Page 4

15. Seller Estimate of Costs
Short Sale Evaluation
Letter to Negotiate
Letter to Obtain Payoff
15

17. Listing Action Plan Checklist
Seller's
Property Address
Date
At the Listing Appointment: (I have explained each of these documents thoroughly to sellers)
Completed and signed Listing Agreement-Seller must receive copy
Have them review the MLS data information, sign, and give them a copy
Signed Property Disclosure or Disclaimer-Seller must receive copy
Signed CMA-Seller has received copy
Signed Estimated Sellers Net Sheet based on Listed Price-Sellers must receive a copy
Signed Mortgage Information Request-Seller must receive copy
Signed Lead Paint Forms if applicable-Seller must receive copy
Signed Home Protection Application or Waiver-Seller has received copy
I have reviewed with the seller the following:
Explain Agency relationships
Explained financing alternatives including discount points, seller assistance with closing costs, pre-paids and owner financing
Explained Marketing Plan
Explained Marketing Guarantee
Explained property tour by office
Explained how the MLS works and how appointments will be made
Obtained key for lock box and explained how the lock box system works
17
Explain and give samples of quot;Tell 20quot;- Just listed, Open House and Just sold flyers

18. Checklist for Processing of Listings
Immediately after listing is signed:
Photos of property
Prepare a personal folder for yourself, with a copy of all of the documents signed by the sellers.
Review the MLS listing agreement and data forms and input.
Add additional forms that may be required in your office.
Copy payoff letter and transmit.
If home owners warranty was accepted-mail and/or fax.
Turn in tour request date to secretary.
Prepare marketing material.Check MLS carefully for accuracy and copy sellers.
Distribute your “Tell 20”
Have a lender prepare financing sheets on the property.
Prepare Feature Sheets-give copy to sellers.
Have (2) extra keys made and check-install lock box with key (1) for office, (1) you personally keep.
Get sign up - make sure it is clean.
Verify septic or sewer, water and/or well, connection fees, schools, etc.
Implement Personalized Marketing Plan by inserting dates, coordinating it with the sellers and your contact
management program or appointment book.
Prepare Home Book.
Prepare display area in home with your marketing materials.
Deliver all of the materials you prepared to seller and explain if they have questions.
Discuss with seller the removal of items not conveying or tag them.
Prepare “Highlight Feature Cards” for items that will convey
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Send Military Housing forms to appropriate military bases, if applicable.

19. Page 7

20. 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)

21. Contract Review Checklist
Make sure names are spelled correctly.
Make sure legal name and address are correct.
Check real and personal property that will convey against the listing agreement and computer printout to ensure conveyances are what they
should be. The purchaser can ask for and the seller can agree to any other item conveying, but they must be made aware of them and avoid
any surprises. VHDA contracts cannot have chattels listed in the contract. They must be addressed through a separate bill of sale.
Check remarks for other items that need to be transferred to the contract, such as quot;storage shed in its as-is conditionquot; or Seller or Buyer is a
licensee.
Review financing-Make sure it is spelled out and adds up.
Earnest Money Deposit- Make sure that deposit is a check, money order or note, not cash (Ask them to get a money order). Make sure that it is
clear who is to hold the earnest money deposit. On VA pre-owned homes most firms request that the $1000 deposit is to be in certified funds,
in the event that closing is within 30 days.
Make sure contract designates who is paying the closing costs, pre-paids, MIP, VA funding fee, etc.
Make sure the type of financing and loan ratios are identified.
21
Who will be handling the settlement? Make sure parties understand mandatory language.

22. Whenever you write a contract

Prior to presenting a contract to another

agent
Prior to presenting a contract to a seller

22
Page 10

23. 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
23
Page 10

24. Articles 1-9 Deal with Client Obligations

 Standard of Practice 1-6
REALTORS® 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 1-8
REALTORS® , 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.
24

25.  Standard of Practice 1-9
The 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 3-2
REALTORS® 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)
25

26.  Standard of Practice 3-6
REALTORS® 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.
26

27.  Standard of Practice 16-16
REALTORS®, 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)
27

28. 28

30. “Meeting
Requirements to
of the
Offer and Present Offers
Minds” Acceptance
Promote the interests of the seller by:
c. Receiving and presenting in a timely manner
written offers and counteroffers to and from the
Performance
seller and purchasers, even when the property is
/ Delivery already subject to a contract of sale; and
Standard of Practice 1-6
Statute of REALTORS® shall submit offers and
counter-offers objectively and as quickly
Frauds as possible. (Adopted 1/93, Amended
Consideration
1/95)
30

32. Countering
Negotiations
6 steps
To
presentation

33. 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.

33
Page 11

34. 34

35.  Best
 Alternative
▪To
▪A
Negotiated
Agreement
35

37. Listing Agent’s Checklist-From Offer to Closing
Listing Agents Responsibility in Preparing to Present Offer:
Obtain all information possible on purchasers in order to humanize them.
Check with selling agent, to see if the buyers have been pre-qualified by agent or lender.
Set an appointment with sellers to present the offer-Do not discuss offer on phone.
Invite Selling agent to go along to present offer (if local custom).
Read everything in the contract thoroughly; pay careful attention to all clauses,
statements, and contingencies.
Develop checklist to protect everyone.
Review personal property portion spelling out what will or will not convey.
Review Financing portion. Type of financing, down payment, MIP, etc.
Check discount points, seller concessions (i.e. pre-paid, closing costs, funding fee, etc.).
Prepare Sellers net sheet based on offer.
Check earnest money deposit, have a copy of check available.
Prepare an updated CMA.
37
Prepare list of Pro’s and Cons of offer prior to presenting offer.

38. Section 2:
Buyer & Seller Services and Checklists
As a result of this session, you will be able to:
methods for providing lists of reputable service
Identify
providers;
and refine checklists for buyers and sellers to use
Utilize
before, during, and after closing.
38

39. Networking with other REALTORS®
Classified Newspaper Ads
Internet
Solicitations (flyers, office visits)
Sales Meeting Presentations
Previous Clients
Educators
39
Pages 20-23

42. Section 3: Preparing Information
Prepare information for all parties to
the transaction including attorneys,
title companies, lenders, appraisers, etc.

43. Section 4:
Home Inspections and Warranties

44. Background and General Scope of Inspections
What does AS-IS mean?
Purpose of the Home Inspection?
Visual Inspection Only?
What isn’t covered?
44
Pages 31,32 and 33

45. 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?
45
Pages 34 - 37

46. 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?
46
Pages 34 - 37

47. 47

48. Mold
Can grow on almost any organic surface if

moisture and oxygen are present
Gradually destroys its host and causes serious

health problems
Produces potent toxins and irritants

EPA has published guidelines for remediation or

clean-up
Number and size of lawsuits is growing

48

49. Underground Storage Tanks
3-5 million underground storage tanks in the US –

about 40% are leaking
Some are currently in use, but others are

abandoned
Clean-up can be expensive

UST owners are required to register tanks and

adhere to requirements that prevent pollution
EPA regulates tanks that contain hazardous

substances or petroleum products that store at
least 10% underground
49

50. Asbestos
Once used in insulation (banned in 1978)

About 20% of nations commercial & public

buildings are contaminated
Inhaling can result in respiratory disease

Highly friable

No safe level of asbestos exposure

Used in residential properties to cover pipes and

ducts
It is fire resistant

Costly to remove

50

51. Lead-Based Paint / Lead Hazards
Lead was used as pigment and dying agent in paint

Present in 75% of private homes before 1978

Can cause brain, kidney, nervous system and red blood

cell damage
Children are most vulnerable

Lead particles can be present in soil and ground water

Banned in 1978

No federal regulation to test in private homes

EPA and HUD require disclosure of known lead-based

paint hazards be attached to contract/ lease
51

52. Radon
Gas created by natural decay of other

radioactive substances
Hazardous when trapped in buildings in

high concentration
Colorless/ tasteless – impossible to

detect without testing
Levels can be reduced by installing

ventilation systems or exhaust fans
Most accurate testing results come from

professionals
52

53. 53

54. Section 5: Working with Appraisers
As a result of this session, you will be
able to successfully communicate, assist
and work with the appraiser.
54

55. 55

56.  Salespersons should share
Information about properties sold
Comparables used
Detailed list of upgrades and features
_______________________
_______________________
_______________________
_______________________
_______________________
56
Page 38

57. Meet the Appraiser at the Property
Point out Special Features
Be Helpful, Not Overbearing
Prepare Your Seller
The Appraisers Viewpoint
57
Page 39

59. BPO
CMA
Appraisal
59

60. Sample Letter of VA Appraisal Appeal – Page 42
Sample Letter of Standard Appraisal Appeal – Page 43

61. You’ll be able to identify potential
challenges in the home buying or home
selling process and describe ways to
resolve them.
61

62. 62

63. Buyer Seller wants Buyer not
wants out out qualified
Buyer too Buyer Loss Repair cost
much debt of Job are too high
Appraisal is
low
Pages 44 and 45 63

64. Section 7:
Communicating to Prevent Problems
Write a plan to keep all parties
to the transaction informed.
Page 47 and 48

65. Walk Thru Addendum

Walk Thru versus Repair Inspections

65

66. Section 8:The Settlement

69. 69

71. Truth-in-Lending
Title Co.
RESPA Vs.
Attorney
Equal Credit Pages 49 & 50
Kickbacks
Reporting 71

72. What Happens
and When
Choosing the
Good Faith Settlement
Estimate Agent
Pages 50 & 51
Title Insurance Title Searches
72

73. Pages 53 - 62 73

74. 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
74

75. 75

76. 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;
76

77. 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

77

78. 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?
78

79. Deed in Lieu of Foreclosure
Workout
Loan Modifications
Agreement
Repayment
Forbearance
Plan
79

80. 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
 80

81. This is a Final Seller Side, not Draft

Should be done by Attorney

Things to have for Attorney

Arrears Sales Price
Taxes (back taxes) Pre-Payment Penalties
Commissions and Admin Forbearance Payments
Etc….
Fees
Liens / Debts
Legal Description
81

82. 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)
82

83. 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?

83

84. 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…84

85. 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

85

86. REALTOR® Institute