YHYM.Pamphlet

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Your Home
Your Market
We appreciate the opportunity to provide you various information
concerning real estate and real estate transaction. This was prepared
exclusively for you. The following pages contain descriptions on
maintaining value, Oakland County Market Analysis, mortgage options,
title company checklist, marketing information, realtor interview
questions, copies of required documents, etc.…
All of this information is provided to you as a tool to create transparency
with the aspects of owning real estate.
Please call if you have any questions or would like a comparative analysis
on your unique property.
Chelsea Smith
586.383.1430
csmith@realestateone.com
Scott Merian
586.662.0006
peterisland1@gmail.com
Real Estate One
Office 248.548.9100
Fax 248.399.9429
26236 Woodward Ave
Royal Oak, MI 48067
RealEstateOne.com

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Repairs that add value
Now whether you want to lease or sell there are repairs that will add value and
selling power so your home will become more valuable to those many buyers.
Kitchens and bathrooms have always
had, have, and will continue to have
the highest return. Kitchens and
bathrooms are the areas in a home
where you can tell if the money has
been well spent or not. They’re the
most expensive areas of the home in
terms of construction and they are
where most people spend their time in
the homes.
Basements also have a return.
Finishing a basement is always a better
addition to the homes but cleaning it
up will increase the chances of getting
the home sold at the right price. Many
buyers will hesitate on a home if the
basement has a musky or unclean
appearance.
The basic repairs might add value but
most certainly maintain the value of
the home is refinishing wood floors,
repairing or replacing roofs, gutters,
and windows.

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Remodeling may be a labor of love, but it’s also an investment that can
seriously boost the value of your home. Only by how much? Well, according to
Remodeling magazine’s 2016 Cost vs. Value Report, you’ll recoup an average of
64% of what you paid for a renovation if you sell your home this year.
To arrive at these figures, Remodeling asked consultants in various markets to
estimate the average cost for 30 home improvement projects, from adding a
bathroom to replacing a roof. Then, they asked real estate agents nationwide to
estimate the expected resale value of these renovations so that readers could
compare their out-of-pocket costs to how much money they’d get back when it
came time to sell their home.
So, what projects gets you the most bang for your home renovation buck? It
may not be nearly as sexy (or fun!) as adding a chef’s kitchen or glam bathroom,
but attic insulation gets the top spot. That’s right: Stuff some fiberglass insulation
into the walls of a 35-by-30-foot attic, and you’ll pay an average of $1,268. But
when you sell, you will rake in $116.90 for every $100. For you math-challenged
out there, that’s a recoup of 116.9% of your costs. It’s the only home reno on this
year’s report that redeems more money than you spend!
The next best-paying renovation on the list: manufactured stone veneer,
offering a respectable 92.9% return.
Meanwhile—sorry, luxury tub fans—the home improvement project that
reaps the worst ROI is the addition of a bathroom, at 56.2% (although the “added
value” of an extra bathroom for anyone who’s ever had to wait their turn for one is,
of course, priceless).
Take-home lesson? If you’re looking for a general rule of thumb, it’s that less
is more: Lower-cost projects generally reap bigger returns, with four of the five
projects that cost less than $5,000 ranking among the top five for money back when
you sell.
Check out the best (and worst) returns for home renovations in the two charts
below, including how much you’ll pay and get back if you sell your home this year.

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Preparing Your Home
Exterior
o Repaint the front doorand trim. Repaint
the rest of the house, if needed.
o Move all garbage cans, extra building
materials and gardening supplies, etc. that
are in the garage or shed.
o Check gutters and/or roof for dry rot and
leaks.
o Prune bushes and trees. Remove any
dead trees and shrubs.
o Weed and maintain all planted areas.
o Clear the patio, porch, or decks of all
small items, such as empty planters,
charcoal, toys, etc. sweep all areas and
walkways.
o Check all screens and windows. Repair
or replace if appropriate.
o Replace worn, badly stained or
personalized mats.
o Test all fences, gates, and latches. Repair
or replace any weakened areas.
o Clean the swimming poolor hot tub, if
appropriate.
o Check external structures, patio covers,
gazebos, and sheds. Repair, repaint, or
clean.
o Use driveway cleaner to remove oil stains
from driveway and garage floor.
Interior
o Chipped plaster and pant touched up and
repaired.
o Leaky taps and toilets repaired.
o Burned out light bulbs replaced.
o Squeaky doors oiled.
o Mirrors, fixtures, and taps cleaned and
polished.
o Seals around tubs and basins in good repair.
o Closets and cupboards neat and tidy.
o All torn screens should be repaired or
replaced.
o Avoid repainting the entire house unless
current colors are load or off beat.
o While or light pastels are the easiest to work
with and they make your rooms look larger.
o Countertops neat and polished.
o Appliances cleaned.

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Preparing to Show Your Home
o Open all draperies and window shades during daylight hours.
o Turn on all lights and replace bulbs with high wattage bulbs where needed.
o Open windows one half hour before showing to circulate fresh air.
o Open all doors between rooms to give an inviting feeling.
o Place fresh flowers on kitchen table and/or in the living room.
o If possible, bake cookies or bread to add in an inviting aroma.
o Bathroom should sparkle and towels folded and toilet lid down.
o Replace any items not included in the sale, or tab them appropriately with
“to be replaced with…” or “not included” signs.
o Floors cleaned, garbage containers emptied.
o Closets and cupboards neat and tidy...
o Valuable property out of reach, out of sight, or locked away.
o Pets absent or contained during showings.
o Make beds and have clothes picked up.
o Fireplace lit in cooler weather.
o Air conditioner turned on in warm weather.
o Appliances cleaned.
Help the buyers Mentally
“Move In”
Review your work by “Acting” as the critical buyer. Start at the street, walk
toward the house and then throughout the house analyzing each room. How does
your house looked now? Are you ready for the most critical buyer?

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Questions You Must Ask Yourself
1. Why are you moving?
2. What is your time frame?
3. What do you need out of your home?
4. Can you buy a home without selling you current estate right away?
5. Are there any serious problems with the house?
6. What are other houses in the neighborhood selling for?
7. What should potential buyers know about?
8. Is there a trust, probate, bankruptcy or court order?
9. Has there been a death, marriage, divorce or name change?
10. Have any unrecorded or recently recorded deeds been executed
since purchase?
11. Does anyone else have an interest in the real estate (lease, land
contract, private mortgage, and liens, State or Federal Tax Liens)?
12. Are there recent mortgages (last 6 months)?
13. Has there ever been an equity line of credit?
14. Have there been any contracted home improvements or repairs
within the past year?
15. Are you current on their mortgage payments?

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Do you want to sell or lease?
Based on this market and
information you as
homeowners need to
decide whether or not
you want to sell your
home or lease it.
Leasing is a great option
if you can buy a home
without needing the
money from the sale. By
leasing it will give you a
monthly income and pay
a part of your new
mortgage.
If you don’t want to
hassle with being a
landlord you can hire a
property management
company that will take
care of many things with
a small cut of the rent.
However everything
must be in top condition
throughout the lease.

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Current Market Place
Supply and demand is perhaps one of the most fundamental concepts of economics
and the driving force to our homes value. Now I won’t bore you with an economics
lesson so let’s make this quick. The supply is our home and the homes of every
other neighbor that puts their home on a market. Now demand comes from
everyone who is on the market for a home.
0 1 2 3 4 5 6 7 8 9
The Price is Right
Timing is extremely important in the real estatemarket.

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Oakland County
There is a steady increase in sale prices and a decrease in the days
to close. The overall prediction for 2016 is that the sale price will
continue to increase to meet the demand of the interest rate national rise
of half a percent. The time to close of an accepted offer will stay the
same. The new TRID Laws that were placed in 2016 gives a target
closing date of an accepted offer 45-60 days versus the previous 30-45
days.
Through the graph you see that the optimal time to get the most for
your home and a quick sale happens between November and March.
Then we see a decrease in home values and an increase on time to sell.
There are more sellers on the market during the summer time and so
buyers have their choice and more leverage on negotiations. This goes
back to the concept of supply and demand.

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Realistic Value v Emotional Value
Your property has manyvalues:
1. That of your tax assessor
2. That of your lender
3. That of your insurance company
4. The value to you as an owner
5. The value to the buyer (depending on their needs, their desires and their financial resources)
The market will dictate the best obtainableprice for your home based on:
1. The current financial conditions
2. The current supply of homes on the market
3. The current competition in the selling market
The competitive market analysis can help you select a price by:
1. Analyzing the properties currently on the market.
2. Review the properties recently sold.
3. Examining the properties that didn’t sell.
4. Selecting the optimal price.

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Setting the Right Price
 Realistic pricing will achieve maximum price in a reasonable time.
 Your profit desire is irrelevant; the market determines the price.
 The cost of improvements are almost always more than the added value.
 Houses that remain on the market for a long time become “market worn” and do
not get shown as often.

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Questions You Need Ask Before
Selling
o Do you still have a mortgage? Can your present loan be
assumed? What are the rates and terms?
o How much earnest money deposit do you want?
o Are you willing to pay any of the buyers closing costs?
(Buyers realtor, home inspection, home warranty, etc.…)
o How much are you will to pay?
o How soon can you give occupancy?
o How can you help coordinate settlements on your house with
your buyer’s present home? (Mortgage, liens, etc.…)
o What contingencies are you willing to accept? (Flood,
extended warranty, repairs, home inspection, etc.…)
o What protection(s) do you want in the offer-to-purchase for
yourself and your buyer?
o What current documents, plats, etc., do you have available for
the buyer to review?
o What qualification method do you want to use to help define
your buyer’s financial qualifications?
o How long after an acceptance of a contract, do they have to
secure a mortgage?
o What financial arrangements do you need to make to
coordinate the closing of this home and the purchase of your
next?
o Are you prepared with proper state and federally mandated
disclosure forms?

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Information about Your Home a
Buyer May Request
1. Size of every room in your house?
2. Construction
3. Insulation?
4. Annual property taxes: How Paid?
5. Amenities?
6. Deed restrictions?
7. Inclusions with house?
8. Present zoning?
9. Exclusions from the sale?
10. Type of heating and cooling?
11. Annual costs?
12. Warranties?
13. Improvements?
14. Lot size?

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Home Mortgage
Two Key Benefits of Owning Real Estate
1. Real estate taxes are Deductible.
2. Interest on a mortgage is tax deductible.
There are three key questions should ask themselves as they begin to
go about the process of obtaining mortgage.
1. How long do I plan on living in the home?
2. How much of a monthly payment can I afford?
3. How much of a down payment do I have or want to use?
Different mortgages are
offered for different needs!
What are the most common mortgages available?
1. 30 year Mortgage
2. 15 year mortgage
3. 1 and 3 year adjustable rate mortgage
30 Year Fixed Rate Loan
The interest rate does not vary over the life of the loan. It has equal
monthly payments that include both principle and interest and is fully
amortized to pay off in thirty years.
Advantages
1. Stable and predictable, the monthly payments and interest remain
constant.

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2. No surprises!
3. Helps you in budgeting.
Disadvantages
1. Interest rate is slightly higher, meaning slightly higher payments...
2. Thirty ears is typically the longest period you can finance a home.
Best for buyers who demand stable payments; most appealing when
rates are below 10%.
15 year fixed rate
Best for quickly building home equity and if you can afford the high
monthly payment.
1 and 3 year adjustable rate mortgages
This mortgage provides a thirty year amortized adjustable rate after one
or three years. There is typically an annual cap of 2% and a 6% life-time
cap.
Advantages
1. Lower interest rate (at least initially) then for a fixed rate loan.
2. Lower monthly payments, and lower income needed to qualify
monthly, initially.
3. Advantageous if interest rates decline in the future.
Disadvantages
1. Interest rates are unpredictable.
2. Monthly payments may vary.
Best obtaining a low initial rate for a set amount of years and then
believe they will be selling the home.

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The first step if you’re considering purchasing a
home is to get pre-approved
A rule of thumb for loan qualification.
Many lenders use the following percentages to determine loan
eligibility:
Monthly housing costs (principal, interest, mortgage insurance,
property taxes, association dues, plus homeowner’s insurance) may
not exceed 28% of the borrower’s income.
$1,800/$7,000=25.7%
Rule of thumb: usually qualify for 2 ½ - 3 times gross income.
Total monthly debts (all of the above plus car payments, other loan
payments, minimum payments on credit cards, alimony, child support,
etc.) may not exceed 36% of the borrower’s gross monthly income.
$2,500/$7,000= 35.7%
If you are unsure about your credit status, many lenders will order a
credit report before pre-approving you.)

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Some unique ways to shorten the time period and save
interest on a mortgage.
Prepayment privilege
The age given a borrower to pay all or part of a debt prior to its maturity
30 yr. $150,000 6% interest $899 total monthly payment
If you made an extra $50 payment each month, the loan would pay off in
26.16 years (this saves your $25,654 compared to if you would have
made the minimum payment).
BiSaver
This is a bi weekly payment plan.
In a biweekly payment plan, a borrower makes 26 payments in a year to
the lender as opposed to 12 monthly payments in a conventional loan.
Each payment is, however, only half the size of the regular monthly
payment. In other words, the borrower is making one extra payment
each year.
30 year loans are generally reduced by 8 to 9 years.
15 year loans are generally reduced by 2-3 years.
You can do it yourself for FREE!
Popular with some individuals who get paid every other week. (These
provisions are not standard for every mortgage loan, please contact
your lender.)
Points
Point equals one percent of your mortgage. You have the option of
paying the lender points to obtain a slightly lower interest rate.

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$200,000 loan x 1 % point = $2,000 payment
Popular reasons to refinance in the current market conditions
1. Take advantage of low interest rates (i.e. lowering your payment or
reducing the amount of years you have left on your mortgage.)
2. Convert from adjustable rate mortgage into fixed mortgage.
What programs are available to refinance; if I owe more than my
house is worth.
Homeowner Affordability and Stability Plan.
The plans allow you to refinance and take advantage of the low interest
rate environment. Even if you owe up to 125% of the appraised value.
First thing is to see if your loan is owned by Fannie Mae or Freddie
Mac.
Check:
http://www.fanniemae.com/loanloookup/
or
https://www.freddiemac.com/corporate/
Another Refinance Program
FHA Streamline finance, does not require an appraisal.
Eliminating Mortgage Costs
Depending you are your mortgage program and scenario, some lender
offer a no cost refinance or no-closing costs on a purchase loan.
You pay a slightly higher interest rate but have no closing costs. You
should ask if this option is available and compare the interest rate vs. if
you pay closing costs.

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Credit
3 Credit Bureaus, Experian, Equifax, and Transunion
Make sure your credit file is accurate. Credit files are maintained by
three major bureaus (Experian, Equifax, and Transunion.) You can
request a copy of your credit report by contacting one of these agencies.
Better yet, you can use the web site established by the Federal Trade
Commission to get all three for FREE each year.
www.annualcreditreport.com
Equifax Credit Information
Service, Inc.
TransUnion Experian
P.O. Box 740256
Atlanta, GA 30374
1-800-685-1111
www.Equifax.com
P.O. Box 2000
Chester, PA 19022
1-800-888-4213
www.TransUnion.com
P.O. Box 9701
Allen, TX 75013
1-888-397-3742
www.Experian.com
Disputing incorrect information: To challenge incorrect or outdated information,
each bureau has an online dispute process.
What’s in your Credit Score?
35% is Payment History
30% Amounts Owed
15% is Length of Credit History
10% is Types of Credit Used
National average credit score is 692
Generally in today’s mortgage market, you need a minimum credit score of 640 for
mortgage programs.
Should I close credit cards that I do not use? Yes or No.
Depends, but in scenario above the answer is no.

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Loan Process
What’s next?
Within a few days, you will be receiving a government required form entitled
“Truth in Lending.” Please be aware that government guidelines determine the
calculations shown that the rate shown is your estimated annual percentage rate
(APR) – the interest rate on your loan. Please keep in mind that this initial form is
only an estimate. Changes to your loan program, amount, closing date, etc.…, will
affect your final document.
Typically, within two days of application, your loan is submitted for approval
through a computerized underwriting system. Either Desktop Underwriting (DU) or
Loan Prospector (LP) will approve your loan. If your loan does not meet approval,
you will hear from me with your alternative financing options.
During this period, the Lender will be working to verify all information that you
provided at the time of application, such as employment, income, deposits, etc.…
this provides the underwriting with clean and concise information.
The lender will have done a pre-underwriting review and any documents needed
before underwrite will be requested from you. Please provide within 48 hours.
An appraisal will be requested on the home you are purchasing or refinancing. An
appraisal is required to support the value of the property or purchase price. A
professional appraisal agent will be in contact with the appropriate party to arrange
for the appraisal to be performed. Please be aware that this is not a contractor’s
inspection. If you desire to have a home inspection, your lender will be happy to
refer you to a quality individual.
Once we have received all of the required documentation, your loan request will be
submitted to an underwriter for final approval. Upon review of your file, additional
information may be requested. Please provided this information within 48 hours so

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that your lender will be able to proceed to the best part of the loan process –
closing.
When your loan has been approved and all conditions (it’s requested by the
underwriter) have been cleared, you will be contacted to determine a convenient
time to close your loan. If you are purchasing a home. The seller’s schedule must be
accommodated in regard to scheduling your closing.
One your closing has been scheduled, you will be required to obtain one year of
homeowner’s insurance on the property with a paid receipt. Your insurance agent
may require a few days to prepare your policy, so please obtain your insurance as
soon as possible and notify your lender of your choice of company and agent.
A day or two prior to closing, your lender will notify you of the amount of money
that will need to bring to closing (a cashier’s check made payable to yourself (you
will sign it over the title company at closing). In rare instances, this information
may be delayed based on availability of information from third parties (Title
Company, real estate Company, insurance agent); however, your lender will work
to ensure that you receive all information as soon as possible – usually within 24
hours prior to your closing.
On the day of your closing, you will need to bring your cashier’s check for the
correct sum, your driver’s license or other picture identification, Homeowners
insurance with a paid receipt ( only on purchases) and a flexible writing hand –
you’ll be signing many papers! Your closing will be conducted by a closing
professional at the title company, who will explain each document to you.
Things to avoid and key points when in the process of obtaining a mortgage:
 Avoid moving money around or starting new accounts, any large deposits on
your asset statements will need to be sourced with documentation.
 There is a distinct process for documenting gift funds for the down payment.
(please consult Loan Officer)
 Avoid opening up new debt accounts (i.e. credit cards, car loans, etc.)

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 If your home is currently in a trust, please advise us immediately
Should I Payoff My Mortgage Early?
Two schools of thought on this topic.
1. Your investments are yielding a greater return when you’re paying on your
mortgage.
2. Pay it off. The satisfaction of being Mortgage Debt Free.
The Family Home Loan Experience
Concierge Form
what to expect letter
Donation made in your name
Three minute video of Mortgage Process
List of Top Service providers
receive a special gift
Should I refinancing my home?
What interest rate you’re paying vs. current interest rate?
How much are the closing costs?
What is your break-even point?

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Typical Documents Needed:
1. Last two years Federal Income Tax Returns
(including all schedules and W2’s)
2. Last 30 days paystubs (consecutive)
3. Copy of Homeowners insurance (declaration
page)
4. Last two months Bank and Asset account
statements (i.e. 401k,mutual funds, savings,
etc. statement needs to show name, account
number and date covered, (downloading bank
statements are preferable over screen shots,
including all pages if says 1 of 4 need all 4)
5. Current mortgage statement
6. Copy of drivers license’s

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Where Buyers Find their Homes
A recent survey conducted by the National Association of Realtors illustrates where
buyers find their homes.
Ads don’t sell homes People Do!
However Ads do reach more people!
Internet Real Estate Agent For Sale Sign
Builder Friend Print Ad
Knew Seller Other

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Reaching More Buyers
Extensive network provides the most marketing exposure for your home,
making the difference in the time it takes to sell and the amount you net
from the transaction.
Multiple Listing
Services
Large Natoinal Web Exposure
State's Most Viewed Broker Website
Largest Home Marketing Budget
Innovative Buyer Financing and Incentive Program
Social Networking
Largest Corp. transfer dept.
Company-wide Open Houses
Demographic Marketing
Office Networking Promotions
Largest Past Customer Base
Recognizable Lawn Signs
Direct Mail Promotion
YouTube
Mobile App
Market Research

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Marketing to the World
Every sales associate has access to the Multiple Listing Service and can search the
same database and show the same homes… Having an extensive internet network
that provides the most marketing exposure for your home.
Making the difference in the time it takes to sell
and the amount you net.

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What Happens After the
Contract is signed
There are many details to resolve before the sale can close.
1. Inspections must be completed.
a. House Inspection
b.Radon Inspection
c. Pest Inspection
2. Buyers must obtain a mortgage.
The buyer should be pre-approved and have the first steps
completed before looking for a house. Now the buyer must finalize
that process.
3. House will be appraised by the lending institution on behalf
of the buyer.
4. Make arrangements for interim housing, if necessary.
5. Title Insurance Survey and Deed must be ordered by the
seller.
6. All Contingencies must be removed.
7. Closing and occupancydate established.
8. Make arrangements for movers.
9. Switch utilities and pay off final bills.
10. Sign final papers.
11. Surrenderkeys to buyer.

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What Happens After You Sell
1. Keep copies of all paperwork related to the closing and
settlement. Although it might be tempting to shred the paperwork or
put it in storage, you’ll want to have it handy for April 15. When you
file your taxes, you’ll need documentation for the expenses and
proceeds of the sale. And after you file your return, you’ll want to keep
the paperwork in case you’re audited.
2. Keep proof of improvements and prior purchases. This is for tax
purposes, too. The IRS allows you to add the cost of improvements to
your home’s cost basis during the time you own the home, which is nice
if you have a sizable capital gain. But to use this tax provision, you need
to keep receipts for everything you spent on home improvement.
3. Stay on top of tax laws. Because tax laws constantly change, you’ll
want to keep current to avoid losing money.
4. Put your proceeds in a money market fund. If you sell and then don’t
immediately buy, you’ll need a safe place to put your money. A money
market mutual fund offers safety, a reasonable rate of return, daily
access to your money and check-writing privileges.
5. Choose your next home carefully. Scope out a variety of areas and
housing options that meet your family’s needs.
6. Don’t feel pressured to buy. Take your time purchasing your next
home; rent for a while if you’d like extra time or want to try an area out
first before buying.
7. Reevaluate your personal finances. If your situation changes before
you buy another house – you get a promotion, have a baby, and go

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through a divorce – you’ll need to rethink your finances and how much
you can afford to pay for your new house.
8. Think about what you need from an agent to help you
buy. Carefully consider whether the agent who helped sell your house
can meet your needs when you’re buying. Buying and selling require
different skills. And, if you’re moving to a new area, you may want
someone familiar with the area.
9. Think through your next down payment. Brown and Tyson
recommend putting at least 20 percent down on your next house in
order to qualify for the best mortgage programs. If you can afford more
than 20 percent, consider whether it’s better to put that money in the
down payment or to invest the money elsewhere.
10. Remember to send change-of-address notices. The U.S. Postal
Service recommends you complete your change of address 30 days
before you move

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Do You Need a Realtor?
Buying and selling property involves extensive marketing, negotiating,
paperwork, and market knowledge.
It is also difficult to stay current of state and federal regulations regarding
property transactions as they are frequently changed. Agents also assume the
security risks of dealing with strangers. Agents are trained to avoid security
problems in ways the average homeowner is not.
Licensed agents have the best access to serious, financially qualified buyers.
They can also handle the negotiations, the paperwork, and contracts for you.
Licensed agents receive extensive training that can make the difference between a
completed transaction and one that between a completed transaction and one that
falls apart before closing. Could you handle a problem such as a home inspector’s
suggested repairs or a cloud on the title? These are just two of many things that can
derail a transaction without skillful handling.
Real estate agents or brokers are generally paid through the sales commission
paid by the seller when a transaction closes. Agents will incur the costs of
marketing your home as part of that fee. Agents are members of the National
Association of Realtors®, and have earned the right to be called Realtors®.
This means they subscribe to a strict code of ethics and maintain a higher level
of knowledge in property transactions. They are obligated and committed to
handling your business with thoroughness, integrity, and confidentiality.

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Setting the Fee
The brokerage fee is divided into two parts – the listing fee and the selling
fee. The chart below helps you determine the percentages for the listing
and selling brokers.
Listing Compensation
3-4%
Selling Compensation
4-5%
Providea market analysis
Define the most likely target
buyers
Create a Marketing plan for your
home
Internetmarketing distribution
Promotethe home to the
brokeragecommunity
Targetlocal and metro media
promotion
Follow up with all property
inquires
Review activity results and adjust
marketing plan
Negotiate any offers on your
behalf
Manage the closing process and
postclosing needs
Remain a trusted advisor
Help the buyer define their home
requirements
Providehome and area
information to the buyer
Introducethebuyer to your home
Negotiate on behalf of the buyer
Facilitate the buyer's financing
needs
Manage the closing process and
postclosing needs
Remain a trusted advisor

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Realtor Interview Questions
1. Are you a member of the National Association of Realtors?
REALTORS® must abide by the NAR’s code of ethics. In addition,
each state’s real estate license requires continuing education for agents.
2. How many sales did you complete last year?
3. In what price range do you sell most of your homes?
4. What was the average difference between sales price and list price?
While this depends on your local market conditions, a REALTOR®
who often sells homes well below list price may not be advising sellers
to price their homes correctly or may be inadequately marketing homes.
5. What is your marketing plan for my home? How many websites will
include information about my home? Where will you look for buyers?
6. Do you have advice for me about the condition of my home? Do you
have expertise as a home stager or do you recommend that I hire a
professional stager?
7. Can you recommend contractors and moving companies?
8. How often should I expect to hear from you when my home is on the
market?
9. Will you provide me with regular feedback and updates about potential
buyers?

35
Realtor Document Lists
Sellers Disclosure Exclusive Rights to Sell
Exclusive Rights to Lease Agency Disclosure
Real comp Profile Sheet MI Real Source Profile Sheet
Sellers Disclosure Forms Short Sale
Lead Paint disclosure Forms Short Sale
Lease Forms Acknowledgement Winterizing Form
Homewarrenty Contract or Waiver
Title Company Payoff Request
Form
Title Company Association Dues
Letter if Applicable
Report to IRS Form
Old Title Policy with Certificate of
Credit
Showing Instructions Form
Advertising Form Copy to PRD for Home
Prepare to give all information.
Sellers Disclosure for example doesn’t just inform the buyer
the condition of the home but protects the seller from being
responsible from any unknown problems.

36
Protect Yourself and Your Family
1. Ask qualifying questions over the phone before inviting a stranger in.
- When do you need to be moved into a new home?
- Do you have a home to sell?
- Why are you moving: marriage, divorce, Eviction, etc.?
- What financial resources do you have in place?
2. Never allow anyone in who has simply knocked on your door.
3. Always have a potential buyer make a specific appointment.
4. Always get a name home, cell, and work number so you can verify identity.
5. Call them back at their number to confirm appointment to verify numbers.
6. Always ask to see ID when they arrive for the viewing.
7. Get a license plate number and car description if possible.
8. Always let someone else know about the appointment Date, time, etc.
9. Have all of the lights on prior to the showing to avoid fumbling in the dark.
10.During a showing, always follow your prospective buyer into a room; never lead yourself
into being trapped in a room or basement.
11.Keep a written log of all calls and appointments.
12.Open house can leave you vulnerable. Try to keep an appointment only schedule.
13.If you feel the need to have an open house, always do it with a partner.
14.Only one buyer should be shown the house at a time. If another buyer shows up, please
ask them to wait until the previous buyer is finished before letting them in. If they are
serious, they will understand.
15.Never argue or debate with anyone. Escalated emotions can lead to danger or poor
negotiating.
16.Avoid conversation about your personalcircumstances; divorce, planned vacations,
spouseavailability, etc.
17.If you have pets, put them away prior to inviting the strangers in.
18.Put away all valuables; jewelry, guns, money, etc.
19.Instruct kids to never open the dooror address questions.
Never allow anyone into your home without first being in possession of a mortgage pre-approval letter or proof
of funds if claiming to be a cash buyer. Those who wish you harm will find an easier target. Selling your home
should be a pleasant and satisfying experience. If it doesn’t look or feel right, cancel or postpone until you are
fully comfortable with that person. An excuse to a stranger is better than having to apologize to a loved one!

37
Law Says Sellers Must Disclose
By Law, What Sellers MustDisclose
Governor John Engler signed sellers and agency disclosure
into Law July 12, 1993 at the Michigan Association of
REALTORS® Summer Meetings on Mackinac Island (see
Legal Lines for information on agency disclosure). The
seller’s disclosure law, now known as Act 92, Public acts
of 1993, was effective January 8, 1994. Mandatory seller’s
property condition disclosure is required of all sellers,
whether they are working with a licensed realestate agent
or selling their home on their own.
The law applies to the transfer of any interest in real estate
consisting of not less than one more than four residential
dwelling units, whether by sale, exchange, installment land
contract, lease with an option to purchase, any other option
to purchase, or ground lease coupled with proposed
improvements by the purchaser or tenant, or transfer of
stock or an interest in a residential cooperative.
The written disclosure statement is required to be delivered
to the prospective transferee within the following time
limits: in the case of sale, before the transferor executes a
binding purchase agreement with the prospective
transferee; in the case of a transfer by an installment sale
contract when a binding purchase agreement has not
executed,or in the case of a lease together with an option
to purchase or a ground lease coupled with improvements
by the tenant, before the transferor executes the installment
sales contract with the prospective transferee.
If any disclosure or amendment of any disclosure is
delivered after a binding purchase agreement has been
executed,the purchase agreement can be terminated by
delivering written notice of termination to the transferor or
his/her agent within 72 hours after delivery of the
disclosure statement to the prospective transferee if the
disclosure statement was delivered to the prospective
transferee in person, or no later than 120 hours if the
disclosure statement was delivered by registered mail. A
transferee’s right to terminate the purchase agreement
expires upon the transfer of the subject property or by deed
or installment sales contract.
For additional information concerning Lead-Based Paint
and Lead-Based Paint Hazards Disclosure.
Why Mandatory Disclosure?
Mandatory seller’s property condition disclosure is in
everyone’s best interest. Sellers benefit because by
focusing on the condition of their property, they are less
likely to overlook a defect or material fact, for which they
could later be held liable. Also, this procedure serves as a
checklist for buyers, so their concerns about the property’s
condition are addressed on the spot. And that may even
help speed up the sale.
Standardized disclosures place liability for alleged
misrepresentation about the condition of the property more
squarely on the seller’s shoulders.
Sellers are better protected against claims from unhappy
buyers when the sellers have disclosed the condition of the
property to a buyer. The law shifts the burden to the buyers
to ask questions when they have been notified of a defect.
Michigan now has a much more level playing field
between seller, buyer and REALTOR®.
The REALTORS® Obligation
While the use of property condition disclosure forms does
require sellers to disclose information about their home,
real estate licensees are still obligated to perform all the
duties that are required under state and Federal laws and
regulations and the strict REALTOR® Code of Ethics.

40
Lead Based Paint
Many houses and apartments build before 1978
have paint that contains lead (called lead-based
paint). Lead from paint chips and dust can pose
serious health hazards if not taken care of
properly.
The Residential Lead-Based Hazard Act of 1992
(42 U.S.C. 4852D) went into effect in 1996. This
law requires that individuals receive certain
information before renting, buying or renovating
pre-1978 housing.
Even Purchaser of any interest in residential real
estate on which a residential dwelling was build
prior to 1978 is notified that such property may
present exposure to lead from lead-based paint
that may place young children at risk of
developing lead poisoning. Lead poisoning in
young children may produce permanent
neurological damage, including learning
disabilities, reduced intelligence quotient,
behavioral problems, and impaired memory, Lead
poisoning also poses a particular risk to pregnant
women. The Seller of any interest in residential
property is required to provide the Buyer with
any information on lead-based paint hazards from
risk assessments or inspections in the Seller’s
possession and notify the Buyer of any known
lead-based paint hazards. A risk assessment or
inspection for possible lead-based paint hazards is
recommended prior to purchase.
Checking Your Home for Lead
You can get your home checked for lead
hazards in one or two ways, or both.
o A Paint inspection tells you the lead
content of every painted surface in your
home. It will not tell you whether the
paint is a hazard or how you should
deal with it.
o A risk assessmenttells you if there are
any sources of serious lead exposure
(such as peeling paint and lead dust). It
tells you what actions to take to address
the hazards.
Have qualified professionals do the work.
Trained professionals use a range of methods
when checking your home including:
o Visual inspection of paint condition and
location.
o Lab Tests of paint samples.
o Surface dust tests.
o A portable x-ray fluorescence machine.
Home test kits for lead are available, but the
federal government is still testing their
reliability. These tests should not be the only
method used before doing renovations or to
assure safety.

41
What you can do to protect your family
If you suspect that your house has lead hazards, you can take some
immediate steps to reduce your family’s risk:
o If you rent, notify your landlord of peeling or chipping paint.
o Clean up paint chips immediately.
o Clean floors, window frames, window sills, and other surfaces
weekly. (Use a mop or sponge with warm water and general all-
purpose cleaner or cleaner made specifically for lean. Remember:
Never mix ammonia and bleach products together since they form a
dangerous gas.)
o Thoroughly rinse sponges and mop heads after cleaning dirty or dusty
areas.
o Wash children’s hands often, especially before they eat and before
nap time and bed time.
o Keep play areas clean. Wash bottles, pacifiers, toys, and stuffed
animals regularly.
o Keep children from chewing window sills or other painted surfaces.
o Clean or remove shoes before entering your home to avoid tracking
in lead from soil.
o Make sure children eat nutritious, lo-fat meals high in iron and
calcium, such as spinach and low-fat dairy products. Children with
good diets absorb less lead.

53
Please Contact
Chelsea Smith
586.383.1430
csmith@realestateone.com
Scott Merian
586.662.0006
Perterisland1@gmail.com
Real Estate One
26236 Woodward Ave
Royal Oak, MI 48067
Follow Us
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