Julie Ternes Homes - Home Buyer Presentation

S T E P S TO S U C C E S S

For 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 Home

In 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 Realty

Better Ways To Serve Colorado Buyers & Sellers

IntroductionA Little About Who We Are


Buying A Home

In 7 Steps

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 Ternes

Licensed Real Estate Agent



Buying A Home

In 7 Steps

“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


Buying A Home

In 7 Steps

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


Buying A Home

In 7 Steps

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 NEEDS

What is Most Important to You?

Step 1Buying Consultation


Buying A Home

In 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


Buying A Home

In 7 Steps

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?



Buying A Home

In 7 Steps

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.


Buying A Home

In 7 Steps

• 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...



Buying A Home

In 7 Steps

As we begin our search we will utilize our many resources and strong network of information

to 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.


Buying A Home

In 7 Steps

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



Buying A Home

In 7 Steps

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/


Buying A Home

In 7 Steps

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.


Buying A Home

In 7 Steps

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


Buying A Home

In 7 Steps

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


Buying A Home

In 7 Steps

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

Bathrooms

3450 Square Feet

Asking Price: $455,000

3 Bedrooms, 4

Bathrooms

3230 Square Feet

Sold for: $432,000

6 Bedrooms, 4

Bathrooms

4050 Square Feet

Sold for: $445,000

4 Bedrooms, 5

Bathrooms

3200 Square Feet

Sold for: $437,000


Buying A Home

In 7 Steps

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 offer

and 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


Buying A Home

In 7 Steps

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


Buying A Home

In 7 Steps

Receive the Seller's Disclosures

This 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 Objections

If 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 Ternes

Sellstate Alliance Realty

9475 Briar Village Point STE 215

Colorado Springs, CO 80920


[email protected]

Office:(719) 629-6142 #FA100049123

http://www.julieterneshomes.com/

Julie Ternes Homes - Home Buyer Presentation

Real Estate

Transcript of Julie Ternes Homes - Home Buyer Presentation