Julie Ternes Buyer Presentation

STEPS TO SUCCESSFor Buying A Home

Buying a home can be one of the most exciting adventures in your life.It can also be one of the most overwhelming if you try to go at it

alone.

When you are looking at and negotiating on properties listed for sale, the Seller will have a real estate agent working for them. You should also have an experienced

Realtor® working for you, guiding you and looking out for your best interests. And the best part is that hiring a Realtor® as a buyer, it is basically at no cost to you. In

most circumstances, the Buyer’s agent is paid by the Seller from the proceeds of the sale.

Introduction

www.JulieTernesHomes.com

Buying A HomeIn 7 Steps

Sellstate Alliance Realty has been in the real estate services business in the Colo Spgs real estate markets for many successful years and will be here for many more. This longevity and confidence comes from our real estate services to a great many buyers and sellers, and their recommendations to others that result in repeat and referral business that keeps us productive and successful.

As a full service Colo Spgs real estate team , we work with buyers, sellers and investors in real estate transactions spanning all of the price ranges and property types.

Residential Single Family – Our residential single family services connect buyers with sellers every day, and we do it with professionalism and a total dedication to our clients. This property type is the majority of our market transactions, but by far not the only one in which we have expertise.

Condominiums – While condominiums are residential, they’re a very different market focus, and we have experts in evaluating condos and helping buyers and sellers to cope with the special financing and homeowner concerns for this property type.

Multi–family – Investors are great clients for Sellstate Alliance Realty. Multi–family properties are a very unique market. The detailed return on investment and valuation calculations investors need to evaluate properties for rental are second nature to us.

Commercial – Whether it’s a shopping mall, a small office building or a restaurant space, we’re commercial property specialists. Contact us for your commercial property needs in the Colo Spgs real estate markets.

Vacant Land – Land is a very special property class. We’re the best at it in the Colo Spgs real estate markets.

Sellstate Alliance RealtyBetter Ways To Serve Colorado Buyers & Sellers

IntroductionA Little About Who We Are



Julie brings her passion for homes, marketing, client service and expert negotiation skills to help sellers/buyers receive the best price for their home. She is a full service Realtor. She has well-built networking resources in Real Estate.

Julie is described as someone who loves helping people. She is dedicated, detail oriented and incisive. Julie is focused on customer service and satisfaction with special expertise on marketing. She attributes her success to her hard work, energy, honesty and creativity. Helping her clients to realize a successful and smooth transaction is her ultimate goal. Julie achieves her goal by accomplishing yours with top drawer treatment.

Julie graduated from the University of Central Oklahoma with a Bachelors in Education. Specialization: •Residential Real Estate Sales - Residential Buying and Selling - Relocation •Short Sales

Professional Experience •Very knowledgeable about local Real Estate. •Keen insight in today`s marketing strategies. •Reliable & always willing to help others.

Julie TernesLicensed Real Estate Agent




“Julie is very professional and personable. She stays on top of the entire purchase process and even small details do NOT escape her business radar. She's like a tiger with a piece of meat, once she sinks here teeth in she won't let go. She does whatever is needed to meet her client's interests. My wife and I would recommend her to anyone.”11/14/2014 - Bought a Single Family home in 2014 for approximately $325K in Briargate, Colorado Springs, CO.

“I recently worked with Julie on a foreclosure bank deal. Besides always being available to speak to me, she also was available multiple times to walk the property and grounds and to find answers to any questions posed. She acted as a great liaison to get this deal closed quickly and easily. I would definitely recommend her and hope to work together again in the future.”10/09/2014 - Bought a home in 2014.

“Julie Ternes, was very professional yet, personal. She went above and beyond our expectations in finding a home for us. She made herself available for every concern we had, and answered all of our questions in a timely and professional manner. We would refer her to anyone who wants a realtor who is looking out for their best interests, and that of their family. She advocated for us on so many levels, and made what could of been a stressful experience, pleasant.”10/10/2014 - Bought a Single Family home in 2014 for approximately $100K in East Colorado Springs, Colorado Springs, CO.

What others are saying who are highly likely to recommend


Buying A Home in 7 Steps

Step 1 - Buying Consultation

Step 2 - Loan Pre-Approval

Step 3 - Searching for a Home

Step 4 - Viewing Homes

Step 5 - Develop a Pricing Strategy

Step 6 - Writing and Negotiating an Offer

Step 7 - Managing the Transaction Through Closing



There are 3 types of Agency Relationships between parties in a real estate transaction:

• Seller’s Agent - An agent who represents the Seller• Buyer’s Agent - An agent who represents the Buyer• Dual Agency (Limited Agent) - An agent who represents both the Seller and Buyer

When you select YourCompany Realty to assist you in finding and purchasing a home, we become your “Buyer’s Agent.” Typically the seller already has an agent representing them, who is working hard for their best interests, not yours. You too should also be represented with an agent who will be working on your behalf and looking out for your best interests. We will help you to find a home, evaluate pricing, negotiate offers, and guide you throughout the entire transaction to ensure a successful closing.

The greatest part of hiring a Buyer’s Agent is that in most cases there is no cost to you!We are compensated for our services only when we successfully close on a home for you. When a seller lists their home with a Seller’s Agent, a commission amount for the Seller’s Agent and for the Buyer’s Agent is pre-determined and paid for by the Seller upon the closing of the sale.

Working for You as Your Buyer’s Agent

Step 1Buying Consultation



Motivation - Why have you decided to buy a home?

Timing - Are you flexible in timing or are we working towards closing before a certain

date?

Pricing - What is your price range? Have you begun talking with a mortgage

professional?

Decision Making - Will anyone else (family member, financial advisor) be involved

in the transaction?

Location - What areas of town do you prefer, or are you not yet sure?

Home Type - Are you looking for a condominium, townhome, single family residence

or land?

Home Size - What size of home are you looking for? How many bedrooms,

bathrooms, etc.?

Lot Size - What size of property are you looking for?

Floorplan - What is important to you in the layout of a home?

Architectural Style - Is there any particular style you prefer - rustic, traditional or

contemporary?

Amenities - What additional features will you be looking for? (pool, hot tub,

clubhouse, golf, etc.)

What Exactly Are You Looking For?

DETERMINE YOUR NEEDSWhat is Most Important to You?

Step 1Buying Consultation


Buying A HomeIn 7 Steps How Much Can You Afford?

It can be discouraging to find that your salary won't stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It may be better to buy a modest home now and look at purchasing your "dream home" in a few years.

A Pre-Approval Adds Strength to Your Offer

Once you have been successfully pre-approved for a mortgage with a local lender, you will appear to be a stronger buyer to sellers. When we submit an offer, we will include a written letter of your pre-approval. This demonstrates to the seller that you are indeed a serious and capable buyer.

Securing a Pre-Approval for Your Home Loan

Step 2Loan Pre-Approval



There are many variables to consider when choosing a mortgage loan. To figure out what loan program will be best suited for your needs you will need to talk with a local mortgage professional for guidance in weighing the many different options. Your income, job history, and credit rating can determine what programs are available to you. Also other considerations such as how long you plan to be in the home can also be an important factor. As a real estate agent, we cannot answer these important mortgage questions, but we will be sure to help you get to the right mortgage provider to help you with this very important part of the process. Below is a list of mortgage programs and definitions to be familiar with.

Interest Rate - What are current interest rates? What rates are you being quoted?Fixed Rate Mortgage - A mortgage where the rate remains the same through the life of the loan.Adjustable Rate Mortgage (ARM) - A mortgage where the rate changes based on a financial index.Down Payment - What amount do you have for a down payment? How much will you really need?Origination Fee - A charge levied by a lender for underwriting a loan. Typically 1% of the loan amount.Points - A point equals 1% of a mortgage. Should you pay "discount points" to reduce the loan's interest rate?Mortgage Term - 15, 20, 30 year loan terms. What is best for you?Conventional Mortgage - A fixed-rate, 30-year mortgage that is within the limits set by FNMA & FDMC.Jumbo Mortgage - Exceeds the limits set by FNMA & FDMC. Usually has a slightly higher interest rate.FHA Mortgage - Usually requires less money down, but has tighter guidelines. Can you qualify?Balloon Mortgage - Can be a great option for short term situations, but will you be ready to pay it off at the end?Interest-Only Mortgage - This will give you a lower monthly payment, but is it the best route to go?Pre-Payment Penalty - If you pay the loan off early, or refinance, will there be a penalty or fee?Mortgage Industry Conditions - Any issues with the current mortgage industry that could affect your financing?

What Type of Loan is Best?




Just like any major purchase, it is usually worthwhile to shop around for the best deal. It is also important to choose a local lender with long term experience. Below we have a few recommended mortgage professionals we have worked with.

Recommended Local Lenders


What is your debt-to-income ratio?

This is something that lenders take very seriously. Your overall debt should not be more than 40% of your income, and your housing debt should not be more than 32%. What 32% of your income will buy depends on where you want to live. In rural or downtrodden areas for example, it can buy a very comfortable residence and ample acreage. In highly sought-after urban areas however, it may not even buy a 400 square foot bachelor suite.



• Do NOT change jobs, become self-employed or quit your current

job!

• Do NOT buy a car, truck, boat or RV!

• Do NOT use your credit cards excessively or miss payments!

• Do NOT transfer balances or open new credit cards!

• Do NOT pay off any credit cards or other revolving debts!

• Do NOT spend money set aside for closing costs!

• Do NOT withhold debts or liabilities from your loan application!

• Do NOT open new credit accounts to buy new furniture,

appliances, etc.!

• Do NOT make any inquiries into your credit!

• Do NOT make large deposits or withdrawals from your bank

accounts!

• Do NOT change banking accounts!

• Do NOT co-sign any loans for anyone!

Inquire with your lender before considering any of the above.

Until You Close on a Mortgage Loan...




As we begin our search we will utilize our many resources and strong network of informationto seek out the best opportunities and find the home that best suits your needs.

• REALTOR® Listings / Multiple Listing Service: The most up-to-date home information resource!• New Home Construction Developments• “Pocket” Listings

Our Home Searching Resources

Step 3Searching for a Home The Value of the Multiple Listing Service

As a member of the Board of REALTORS®, we have access to the Multiple Listing Service (MLS).The MLS is an extensive database that contains information on all listed homes in the area. When sellers decide to list their home with an agent, their agent posts all the information for that home into the MLS database. All relevant information on a home is available such as location, size, price, layout, features and photos. As your buyer’s agent we can enter desired information based on your search criteria and the MLS will analyze the database and list all available homes that match your needs.



Once we can narrow down your search criteria such as location, city, neighborhoods, number of bedrooms and bathrooms, overall square footage, etc., we can then set up an automated search for you on our MLS. Whenever a new property becomes available you will receive an email update and will know about it before most other potential buyers. You’ll also receive an update on price reductions as well. No more missing out on great buys!

Automated “Hot Sheet” Emails

Step 3Searching for a Home



Internet 37%


Over 90% of home buyers use the internet as a tool when searching for a new home!Now more than ever people are accustomed to using the benefits of technology to better gather information. Many home buyers start with surfing the web, where you can easily and quickly view pricing, details and photos of many homes right from your living room. It is a quick way to educate yourself on the local real estate market. On our website you can also save your favorites to view later and keep track of the homes you want to go see.

Our website allows you to easily search in many different ways:• Search by city, community or subdivision• Search by price range• Search by school district• Search by single-family, townhome or condo• Search bank foreclosures and short sales

Search for Homes at www.JulieTernesHomes.com

http://www.julieterneshomes.com/



Short Sales and Bank Foreclosures


A short sale is a property where the seller owes more to the bank than what the property is worth. For example the home may only be worth $300,000 but the seller owes $350,000. So how do they sell the home? They will need to get special permission form the bank (third party approval) to sell the home for less than what is owed. For a buyer It can be discouraging to wait for this lengthy process. Often a short sale can take months to obtain the approval from the bank, especially if there are multiple mortgages or additional liens on the property. If you are trying to coordinate a move based on your current home selling or lease ending, this can be a very difficult process to go through.

A bank owned or foreclosure property is a property where the owner failed to make the mortgage payments, and the bank completed a foreclosure process and is now the owner of the home. Banks are not in the business of owning homes so they typically will price the home low to get it sold quickly. But buyer beware, bank owned homes play by different rules. These homes are sold “as-is” with no warranties on the condition of the home. Additionally bank owned sales are often sold with limited Title Insurance coverage.



Your role and participation in this stage is obviously crucial to our success. You may even find or preview homes on your own (Open Houses) but it is very important to keep us notified and included in the process so we can better assist you to be sure your best interests are are fully met.

Determine Neighborhoods Prior to Viewing - We can do an area tour to examine & discuss potential neighborhoods. We encourage you to spend some time driving through desired areas on your own to get the feel of different locations.

Clearly Know Your Criteria - Think about what is the right fit for you. We select homes together based on the criteria you give us. We may drive by many other homes on our property tour that may look interesting from the exterior. If it is not on our list, it is most likely because it was priced too high, home size is too small, did not have enough bedrooms, etc. It is best to stay focused on the homes that do meet your needs.

Immediately call us if you find a home - In a newspaper or magazine ad, driving by a “For Sale By Owner" sign, or visiting an open house.

When approached by other REALTORS® - They will appreciate you letting them know you are working with us.

Narrowing Your Search

Step 4Viewing Homes



Now the fun part begins, time to go view some homes. Now that we know what your price range is, and what your wants and needs are, we can schedule to see the homes you are most interested in.

Be Mindful of the Appointments Made - It takes a great deal of time to set up a smooth, productive property viewing tour. Please do not be late, and we must stay on track with the timing of all the homes. Many of the homes we will be viewing are primary residences and families must make plans to accommodate our visit.

Comfortable Shoes - Most homes will ask us to remove our shoes, so wear easy slip-on/off shoes.

Eat Prior to Tour - You will feel much more alert & productive if you simply eat before our tour.

Take Notes - We will supply you with a clipboard, pen and a sheet for each home in the order we plan to view them. Be sure to take descriptive notes on each home - good, bad, etc. After viewing many homes, they all seem to blend together when trying to think back. Share these notes with us, it will help us to better know what you like and do not like. If you have questions on a property, write them down so we can work on getting answers from the seller's agent quickly.

Scheduling Viewing Tours

Step 4Viewing Homes



As a member of the Board of REALTORS® we have access to the Multiple Listing Service (MLS). With the MLS we can prepare a report that analyzes values of properties comparable to the one you want.We can also gather background information on the desired property such as how long it has been on the market, pricing changes, or if it has gone through a previous listing period. Using this valuable information, we can assist you in determining a realistic, yet attractive offer price for the desired home.

How Does the Seller’s Asking Price Compare to Recent Market Activity?

Comparing the Seller’s Pricing to Recent Sold Homes

Step 5Develop a Pricing Strategy

4 Bedrooms, 5 Bathrooms3450 Square FeetAsking Price: $455,000

3 Bedrooms, 4 Bathrooms

3230 Square FeetSold for: $432,000







Using a Comparative Market Analysis as a Guide

A Comparative Market Analysis (CMA) is the strongest tool we use when estimating the potential market value for a home. As a member of the Board of REALTORS® with access to the Multiple Listing Service, we can prepare a report that analyzes comparable homes in your area. Using this valuable information, we can assist you in determining an attractive, yet realistic offer price for the home.

A Comparative Market Analysis highlights similar homes in your area that are:

Active Listings - Homes that are currently available for sale. We can see what comparable asking prices are, but remember these homes have not yet received an acceptable offer.

Under Contract - Homes that have received and accepted an offerand give a good indication of realistic pricing.Sold - Looking at the prices paid for recently sold homes provides the best foundation in determining a home's most accurate market value. Once adjustments are made for square footage and features, we can make a qualified recommendation for the offer price on the home.

Expired - Homes that have gone through the duration of a listing period, but failed to sell. Many factors could be responsible such as lack of marketing or the home’s condition, but most often it is simply because the home was priced too high.

Step 5Develop a Pricing Strategy



We will write an offer for your desired home in the form of a Real Estate Purchase Contract (REPC) - a state approved form that is used to present an offer. The REPC is a 6-page contract with many details to carefully fill in. Each section should be thoroughly read and reviewed before any decisions are made. All accepted terms of the REPC must be carried through the life of the contract. The signed, accepted REPC (with all addenda & counteroffers) is a LEGALLY BINDING CONTRACT.

Below are some of the items that we will need to pay close attention to:

Purchase Price - You want a good buy, but your offer must also be attractive to the Seller.

Included Items - What is included - Refrigerator, Washer & Dryer, Hot Tub, Furniture, Artwork,

etc.?

Excluded Items - What is excluded - Refrigerator, Washer & Dryer, Hot Tub, Furniture, Artwork,

etc.?

Water Rights - Do they apply? We may need to employ the services of a Water Lawyer.

Earnest Money - This is the initial deposit. The importance of this item is often overlooked.

Method of Payment - Will this be a cash sale, traditional mortgage or seller financing? How

much down payment?

Special Assessments - Are there any outstanding or upcoming assessments? Who pays,

Buyer or Seller?

Possession - When does the property legally change ownership? (You receive keys and move

in)

Seller Disclosures - What information about the home should you be asking for?

Due Diligence Condition - What "outs" will you have?

Appraisal Condition - Will the sale be contingent on the home's appraisal amount?

Financing Condition - Will the sale be contingent on you securing financing?

Additional Earnest Money - Will you be offering an additional deposit to your earnest money?

Additional Addenda - Are there any additional terms or addenda to consider?

Home Warranty - Will you be asking for a home warranty? Will you ask for the Seller to pay for

it?

Mediation - If a dispute arises, how are you and the Seller directed to handle it?

Seller Disclosure Deadline - What should the deadline date be for the Seller to provide all

seller disclosures?

Due Diligence Deadline - What should the deadline date be for you to complete due

diligence?

Financing & Appraisal Deadline - What should the deadline date be for you to cancel based

on loan denial?

Settlement Deadline - What should the deadline date be for you and the Seller to complete

closing?

Response Deadline - How long should you allow for the Seller to respond to your offer?

After considering all terms... The Seller may Accept, Counteroffer, or Reject the Offer.

Writing an Offer: What important factors should you consider?

Step 6Writing and Negotiating an

Offer



Receive the Seller's DisclosuresThis is the process where the Seller is required to provide information relating to the property.

• Seller Property Condition Disclosure - filled out, signed and dated from Seller.

• Commitment for the policy of Title Insurance, showing easements, encroachments and liens.

• HOA information, budget, minutes, assessments, CC&R's, and survey, water rights if applicable.

• Copy of any leases, rental, and property management affecting the property not expiring prior

to closing.

• Notice of any claims and/or conditions relating to environmental problems & building or zoning

code violations.

Your Due Diligence (Evaluations and Inspections) – IMPORTANT DATE!This is the time period provided to you as the Buyer to learn, review, inspect and decide if

acceptable.

• Carefully review all items provided in the Seller's Disclosures.

• Schedule any physical condition inspections, tests and evaluations deemed necessary.

• Review the costs, terms and availability of homeowner's insurance for the property.

Your Right to Cancel or Resolve ObjectionsIf you determine the Evaluations and Inspections to be unacceptable, you may:

• No later than the Due Diligence Deadline, cancel the contract by written notice to Seller.

• Or no later than the Due Diligence Deadline, resolve in writing any objections.

Remaining Contingencies and Financing In the final steps of the transaction we will coordinate and complete any remaining details.

• Is the sale and/or mortgage contingent upon an appraisal? At what amount did the property

appraise?

• How is your financing going? Are there any last minute issues for securing your mortgage?

• Is the sale contingent upon you selling your previous home? How is that sale going?

• Schedule a final pre-settlement walk-through inspection.

Settlement (Closing) – DO NOT SHOW UP IN YOUR MOVING VAN!Settlement, and then Closing shall take place only when all of the following occur:

• Buyer and Seller have signed all documents required by REPC, Title, Lender, etc.

• Any monies required to be paid have been delivered by Buyer and/or Seller.

• The proceeds of the new loan have been "funded", then all closing docs are "recorded" at the

County Recorder.

• Hand off keys, garage door openers, manuals, warranties.

• Help you to find a new home in this area or offer relocation assistance.

Step 7Managing the Transaction

Through Closing

Lets Get Started!

There is so much thought, knowledge and preparation that goes into a successful home-buyer process. We will be your resourceful guide through every step. Lets get started right

away and we’ll find your dream home soon.

Thank You for Your Business

Much of our business is based on referrals from satisfied clients. If you know anyone who could benefit from our services, please let us know

how we can be of help!

Julie TernesSellstate Alliance Realty

9475 Briar Village Point STE 215Colorado Springs, CO [email protected]

Office:(719) 629-6142 #FA100049123

http://www.julieterneshomes.com/

Julie Ternes Buyer Presentation

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