PETER'S BUYER PROCESS

1. Gather Requirements
2. Tour properties for a flavor
3. Pre-qualify buyer - what can you afford and who will loan you money?
4. Retour properties….
5. Identify properties of interest
6. SIGNATURE FORM: Sign "Agent Representation Brochure"
7. PREPARE: CMA to establish fair market value of identified properties
8. PREPARE: "Estimated Closing Costs"
9. REVIEW: "Property Disclosure Form"
10. REVIEW: "Lead Based Paint Disclosure Form"
11. REVIEW: "Estimated Utility Costs"
12. REVIEW: Estimated Taxes
13. REVIEW: school district
14. REVIEW: CC&Rs (Codes, Covenants & Restrictions)
15. REVIEW: neighborhood association fees.
16. REVIEW: flood zone.
17. SIGNATURE FORM: Prepare "Transaction Related Service Disclaimer"
18. SIGNATURE FORM: Prepare & sign "Purchase and Sale Agreement" (OFFER)
19. SIGNATURE FORM: For Your Protection: Get a Home Inspection (HUD-92564-CN)
20. PREPARE: Earnest Money Deposit
21. PREPARE: a ledger card - record of the transaction.
22. Contact you regularly with verbal progress reports
23. SIGNATURE FORM: Negotiate the transaction with other agent- offers/counter-offers….
24. Identify transaction related services and schedule:
    1. Inspections
    2. Appraisals
    3. Financing
    4. Title Company
25. Utilities - Switch: Gas, Electric, Water, Sewage, Phone, Cable, Internet, Address with Post Office...
26. Moving - Schedule Movers or Rental Van/Trailer
27. REVIEW: Confirm that all contingencies on sales contract are completed
28. Schedule final walk through for buyers
29. SIGNATURE FORM: Finalize the closing
30. Customer Feedback Survey and Appreciation

COMPARABLE MARKET ANALYSIS (CMA) OR...
WHAT IS A PROPERTY REALLY WORTH?

In the real estate world, we are faced with this difficult question on an almost daily basis. To give you an idea of what is involved in answering this question; I'd like to explain some of the important factors involved in coming to a proper offer price.

When compiling a CMA, I take into consideration properties that (1) have sold, and (2) are currently on the market. Once these have been chosen, I compare these properties with your identified property based on several factors... such as, square footage, lot size, number of bedrooms and baths, age, location, condition, and replacement value (to compete with new construction). After a value range has been determined, I discuss with the buyer offer numbers that may be considered by the seller, depending on certain personal factors and motivation for selling.

There are basically 5 reasons a property sells or a buyer wants to buy...

1. Location*
2. Price
3. Terms*
4. Condition of the property*
5. The agent you select*
   (*You control four of these!!! )

The goal of course here is to get you the best price with the least amount of hassle.

DANGERS OF UNDERCUTTING AN OFFER

• Many potential seller's won't even consider an undercut (extremely low) offer and often wont even make a counteroffer. Therefore, if the buyer is really committed to the property and they want to make another offer, the seller has the upper hand.
• Undercutting tends to dampen the other listing agent's attitude, making it a lower priority to share the offer with their client - in the meantime, other better offers could be coming in ahead of your offer.

TRANSACTION RELATED SERVICES
(Title Companies, Mortgage Brokers, Home Inspectors...)

Throughout our professional relationship, you will be needing the services of other related industries to help in the smooth process of buying or selling real estate.  Below is a list of companies that we have had past success with producing happy customers.  There are many more out there, so you may use one of these or any other company of your choice.

Mortgage Brokers/Banks

D. L. Evans Bank
Dave Christensen
812 E. Clark
(in the RE/MAX building)
Pocatello, ID  83201
ph: 208.232-2601

Patriot Lending Group
Natasha Lattin
146 E. Chubbuck Rd.
Suite C
Chubbuck, ID 83202
ph: 208.233.4084

Capital Home Loans
David Berberich
410 Yellowstone Ave
Pocatello, ID  83201
Ph: (208) 478-6879
Cell: (208) 380-9031

Advantage Plus Fed. Cred. Union
Brian Riley
ph: 208.241.1008

Property Inspectors

National Property Inspections
Ken Patterson
Pocatello, ID
ph: 208.232.2758

Pillar to Post
Ron Hansen
3499 McCaleb Dr.
Pocatello, ID  83201
ph: 208.251.4511

D’s Home Service
Dana Wasserburger
(208) 380-2996
wassiedog@msn.com

Property Specialists
Jared Hatch
604-1567

Title Agencies

Pioneer Title Co.
Stephanie Crowder or
Stacy Kono
email: stacyk@poineertc.com
Web: http://pioneertitleco.com/
135 N. Arthur Ave.
Pocatello, ID  83204
ph: 208.233.9595

Alliance Title
Edwin Thompson
Web: www.alliancetitle.com
2350 Via Caporatti Dr.
Pocatello, ID  83201
ph: 208.406.3089

AmeriTitle
Thaïs Ayre
Email: thaisa@ameri-title.com
Web: www.ameri-title.com
1523 Yellowstone Ave
Pocatello, ID  83201
ph: 208.232-4700

APPRAISAL is the value of a piece of property as determined by a qualified Appraiser who takes many different criteria into consideration to make such a determination.

AMMORTIZATION is how a typical mortgage is paid off - it literally means "to kill off slowly." Generally it represents the life of a loan. Early payments have high interest payments and low principle payments. Later payments have higher principle payments and lower interest payments. Interest payments go down and principle payments go up while the combined monthly payment generally remains constant. This definition illustrates a typical conventional loan structure.

CLOSING is the day that all papers are completed, signed and the money is transferred to the seller, brokerage, and title company. This is not necessarily the day that the buyer gets the keys and can move in - generally this can take place a few days after closing, due to processing of funds.

CLOSING COSTS is the amount of money the buyer will have to come to the table with at closing. These include such fees as loan fee, title insurance, prepaid taxes, prepaid insurance… (minus earnest money).

CMA (COMPARATIVE MARKET ANALYSIS) is the value of a piece of property as determined by a qualified Real Estate Agent who takes many different criteria into consideration to make such a determination. This is not the official value nor is it as comprehensive or precise as an Appraisal.

CONTINGENT a word used to protect both sellers and buyers. For example, a buyer could make a purchase offer 'contingent upon' the sale of their home or 'contingent upon' inspection.

EARNEST MONEY is the amount of money that is offered to the seller when a buyer makes an offer. This is not a down payment and not part of the closing costs - it must be paid to the buyer's or seller's brokerage and deposited into a trust account held by the brokerage. This amount is determined by the buyer and represents a level of commitment to the purchase. It is non-refundable if the buyer breaks the contract, protecting the seller's interests. It is refundable if the seller breaks the contract, protecting the buyer's interests.

EQUITY is the current market value of property minus all liens such as mortgages.

ESCROW is a contract, deed, bond, or other written agreement deposited with a third person, by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition. Generally this is the position of a Title Company in most real estate transactions. They charge a certain percentage to facilitate the transaction and closing.

GOOD FAITH ESTIMATE is generally a free service provided by mortgage lenders to prospective buyers. It outlines all closing costs and monthly payments for a potential purchase.

HOMEOWNER'S EXEMPTION is a deduction on property taxes given by the State to property owners who make the property their "primary residence." This is usually a significant decrease in property taxes. Homeowners Exemption reduces the value used to calculate property taxes by 50 percent of the home, including land, up to a maximum of $70,000!

HOMEOWNER'S INSURANCE is required by mortgage lenders when there is a mortgage on a property. It is also necessary to protect the homeowner's interests in the property and contents thereof in case of disasters such as fire, flood, tornado….

INTEREST is the amount that a bank charges to lend money, generally stated as "APR" or Annual Percentage Rate.

LIENS are debts against property. Mortgages are liens. Taxes in the state of Idaho are liens. Contractors can place liens against properties when money is owed on products or services. All liens must be paid in full before a property can change ownership. Title insurance protects the buyer against any unpaid liens made against their property.

LOAN FEE or LOAN ORIGINATION FEE is the amount you must pay your lender for processing the loan. The loan fee is often expressed as a percentage of the loan amount, and some lenders may include loan discounts (or "points") in the percentage quotation in order to adjust the yield on the loan to prevailing market conditions.

MORTGAGE is actually owned buy the buyer/owner in the state of Idaho. It is the note that states the amount owed and the timeframe, interest and principle left on the loan.

MORTGAGE INSURANCE (PMI) is NOT homeowners insurance. This is the insurance on a mortgage certificate required by the bank when a buyer purchases a home with less than 20% down payment. It covers the bank's interests, not the buyer's OR seller's interests. This cost can be avoided by either putting 20% or more down on a property or first time buyers are generally given an optional structure that raises the interest rate but eliminates mortgage insurance - usually the final number (closing cost and monthly payment) is more cost effective for first time buyers.

PRE-APPROVED LOAN is a buyers greatest bargaining chip during negotiations on property deals. This means that the buyer has a pre-approved maximum loan at a given rate by a legitimate mortgage institution. Sometimes, a buyer may have a lower bid on a piece of property than a competing buyer, but since the buyer has this pre-approval, the seller may choose to accept the lower bid with confidence that there will be few (if any) complications at closing.

PREQUALIFICATION LETTER is a buyer's second greatest bargaining chip (after the "Pre-Approved Loan) during negotiations on property deals. This means that the buyer has been pre-qualified for a maximum loan at a given rate by a legitimate mortgage institution. Sometimes, a buyer may have a lower bid on a piece of property than a competing buyer, but since the buyer has this pre-qualification letter, the seller may choose to accept the lower bid with confidence that there will be few (if any) complications at closing.

PRINCIPLE is the amount of a loan that remains to paid off.

PROPERTY INSPECTION is conducted by qualified inspectors that determine the condition of property which generally includes, windows, structure, roof, foundation, plumbing, electrical…. It is generally in a buyer's best interest have an inspection done before committing to a purchase.

MISCELLANEOUS CHARGES are an allowance for any additional services performed during the escrow period, such as Document Preparation, Notary, Recordation, or Reconveyance.

REAL ESTATE FEE is the commission to be paid by seller to the real estate professional who sold the property. This commission is generally split between the buyer and seller.

RECONVEYANCE FEE is the amount the seller pays to transfer the title of their property to the new owner (buyer).

RECORDING FEE is the amount paid for the registration of title instruments with your county government.

TITLE INSURANCE protection continues until the insured's interest in the property is conveyed or otherwise transferred.

TITLE POLICY is a one time premium that you pay to the title insurance company for protection against loss or damage in the event of an incorrect search of public records and / or misinterpretation of title. In addition to serving as an insured statement of ownership, the title insurance policy also shows what the title on your property is subject to in terms of liens, taxes, encumbrances, deed restrictions, and easements.

CUSTOMER REVIEWS

• Date: 9/04/2009
  Customer: Jim & Jane (Buyer)
  Actual Customer Comments: "Our transaction was really hard to close and you gave 150% and solid advice. You showed very solid patience."
  
  
• Date: 8/31/2009
  Customer: Adam, Stephanie & Family (Buyer)
  Actual Customer Comments: "Working with us from so far away, it was always easy to contact you, and we appreciated your research on our behalf. We were very pleased with you."
  
  
• Date: 1/30/2009
  Customer: Debra (Seller)
  Actual Customer Comments: "I'm so happy that you are my agent. I cannot say enough positive things about you, your dedication, unselfishness and willingness to work for your people!! No matter which way we go Peter, Thank you!"
  
  
• Date: 1/6/2009
  Customer: Susanne (Buyer)
  Actual Customer Comments: "(you were) Always willing to do whatever we needed and nice to spend time with. A very pleasant experience overall. If only you had a magic wand to make any offer accepted... other than that, wouldn't change a thing! Yes, I would you use you to handle future Real Estate transactions for me. Yes, I would recommend you to a friend, colleague or family member"
  
  
• Date: 1/01/2009
  Customer: Troy (Buyer)
  Actual Customer Comments: "You need to also handle the mortgage side of it, since you handled most of that side also. Been a pleasure. Thanks for everything... stop by if you find yourself in the area. Yes, I would you use you to handle future Real Estate transactions for me. Yes, I would you recommend you to a friend, colleague or family member"
  
  
• Date: 11/25/2008
  Customer: Betty (Buyer)
  Actual Customer Comments: "You were great! You kept checking with me to make sure everything was going ok, and you helped me with questions I didn't know I had. You watched out for me! Thank you."
  
  
• Date: 11/04/2008
  Customer: Larry (Buyer)
  Actual Customer Comments: "YES. Both of us felt you did an exceptional job, showing both of us and our son the properties, keeping us informed about what was needed, getting information etc. for us. You were very professional but not snooty, rigid or most of all pushy. When the 1st place fell through (due to repair issues), you just continued on with the next place. You gave us professional opinions & tips that helped greatly. You really went the extra mile. You did such a great job, I can't even think of anything you could have improved on. Your help with the computer was so appreciated. Thanks again."