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[email protected]

800-231-0521Monday-Friday

8:30am - 5:00pm EST

And, yes, we actually ANSWER our phones!

Kris Lindahl is a lifelong resident of Minnesota. Throughout his formative years, his athletic involvement fueled his competitive nature. Kris “hated losing,” which is why he believes he has become so successful in negotiating for his clients.

“When I negotiate, I want to win for my clients – I’m not here to lose!” The truth is: Homeowners and homebuyers are looking for an agent who wants to “win” for them. Kris is that guy!

With an education degree from Minnesota State University, Mankato, Kris is a natural teacher who demystifies the home buying and selling process. He has a passion for helping others that ensures his clients a smooth transition from start to finish.

Kris currently resides in Minneapolis with his wife and daughter.

BY KRIS LINDAHL#1 Twin Cities Real Estate Agent

AHOMEOWNER’SGUIDETO SELLING

[email protected]





[email protected]


8:30am - 5:00pm EST








[email protected]

A HO

MEO

WN

ER’S GUIDE TO

SELLING

KRIS LIND

AHL

A Homeowner’s Guide to Selling i

A Homeowner’s

Guide to Selling

Kris Lindahl

ii A Homeowner’s Guide to Selling

Disclaimer

The information contained in this book is for

general guidance on matters of interest only. The

application and impact of laws can vary widely,

based on the specific facts involved. Given the

changing nature of laws, rules and regulations,

there may be omissions or inaccuracies in

information contained in this book.

Accordingly, the information in this book is

provided with the understanding that the author

and publisher are not herein engaged in rendering

legal, accounting, tax, or other professional advice

and services.

As such, it should not be used as a substitute for

consultation with professional accounting, tax, legal

or other competent advisers. Before making any

decision or taking any action, you should consult

with the necessary professionals.

A Homeowner’s Guide to Selling iii

Copyright

Published by: Kris Lindahl.

All rights reserved. No part of this book may be

reproduced or transmitted in any form or by any

means without express written permission of the

author, except for the inclusion of brief quotations

with mention of the author for use in a review of this

book. To request any permission, contact the

author.

iv A Homeowner’s Guide to Selling

About the Author

o, what qualifies me to not only give home

sale advice, but also to write a book on the

subject? Two reasons stand out, overall.

First, I am an active real estate agent, licensed

in Minnesota and

Wisconsin, and I

deal with home sales

on a daily basis. I

have learned the

nuances of the

process by actually

using them during

the course of serving

my clients. I know

enough about the

process to – well – to

fill a book.

Finally, I have received extensive training in not

only helping distressed homeowners, but all

homeowners, hoping to sell their homes for the

most money possible.

Because I was born and raised in the area I have

built an extensive network of local contacts -- a

network that is vital to ensuring we get the most

eyes possible on your home while it's on the

market.

While I don’t find myself all that interesting, and I

don’t like to brag, I do feel the need to let you know

S

A Homeowner’s Guide to Selling v

that I am qualified to not only help you personally

through the home sale process, but to write about it

as well.

With that said, I’ll show you my credentials and

then we’ll get to the real business of this book:

everything you need to know about selling your

house.

Homes for Heroes affiliate

Named among REALTrends/Trulia’s “ Best

Real Estate Agents in America.”

Certified Luxury Home Marketing Specialist

(CLHMS)

Certified Residential Specialist (CRS)

As you read this book, I’ll be sharing (with their

permission) some of my clients’ personal

experiences with the home sale process. I hope to

show you that, while you may be feeling confused

about the process, and maybe even a bit

apprehensive, I'll be with you every step of the way.

Best Regards,

vi A Homeowner’s Guide to Selling

Testimonials

"Kris Lindahl has formed a technology-based real

estate powerhouse in the Twin Cities area of

Minnesota."

REALESTATE.COM

"Kris sold our home and found us the home of our

dreams! He is professional, responsive and "hands

down" the best Realtor we've ever worked with!

Highly recommend!”

Debbra Ricci

"We had our home on the market with another

realtor for several months as we looked to relocate

out of Minneapolis. We simply could not figure out

why we weren't receiving offers. We were frustrated

and out of hope when we first met Kris. From the

moment we first spoke, he lifted our confidence and

assured us that we would not only be able to sell our

home, but sell it quickly. We trusted his expertise and

listed our home with Kris. He sold it 3 days later for

our asking price!! We highly recommend Kris to

anyone that's looking to buy or sell their property. He

will not let you down.

Joshua and Vicki Gedrose

A Homeowner’s Guide to Selling vii

"Thank you so much for all of your hard work. I

would recommend you to everyone. Your expertise is

truly worth noting."

Nick and Hannah H.

"Your team is a well-oiled machine. If someone in

Minnesota is thinking about doing a short sale or any

type of sale and they are unsure where to start the

first thing they should do is call Kris. This guy knows

the ins and outs of the home sale process. Thanks!"

TOM B.

"All I can say is thank you. You were the third

company I talked to about selling my house. Your

professionalism along with your helpfulness

separated you from all other companies. I am glad I

made the decision that I did. You truly cared about my

outcome.”

Shari D.

“Kris came to help us find a home that we had been

struggling for over a year with the process. He was

extremely helpful and motivated. He helped us find

the right home within a month. Additionally with

financing problems that occurred, Kris found us a new

company and ensured we would close asap. We

loved and appreciated all that he gave us, but he still

wanted to help more. Being a teacher, and Kris in the

Homes for Heroes program, he was able to give back

a part of the closing cost. It was a huge gift to our

viii A Homeowner’s Guide to Selling

family. Kris worked very hard and honestly to give our

family a wonderful place to call home. Although we

have no desire to move any time soon, we know we

will call Kris immediately when we are ready!”

Samantha W. Klersy

“Kris sold our home of 37 years with professional

courteous and persistent integrity! He and his team

always answered our concerns promptly and with

great knowledge and understanding! We highly

recommend him!”

JB Holland

“I came across Kris' name on the internet to sell my

home in Blaine, which I soon found out was no

accident. Kris is ten steps ahead the average Realtor

when it comes to using the internet to market both

himself and his listings. The days of selling a home

using an open house are long gone! The house hit the

MLS late on a Monday night with the professional

pictures Kris ordered. Earlier that day, Kris

showcased our house to other agents as a "pre-sale."

Five showings were scheduled on the following day

(Tuesday), and the house sold to the first family that

walked through the house. Kris then took us around

town that following weekend where we found our next

house to buy. Collectively, the transactions didn't

consume much of Kris' time - but I attribute that to his

"system," both on the buy and the sell side. I have

since recommended Kris to multiple friends of mine

A Homeowner’s Guide to Selling ix

and he has taken care of them all in a similar manner.

Kris seems to have the real estate business down to a

science and seems to be pulling further ahead. I won't

hesitate to use or recommend his services in the

future.”

Erik & Emily Takkunen

"My house sold in less than 5 days! Marketing skills

are second to none! There isn't another agent who

has aligned with social media and embraces

technology to assist with home sales than the Kris

Lindahl team! "

Chris Blahna

"I had a very good experience working with Kris- I

would definitely work with him again... He was very

familiar with the sale process and had resources with

numerous loan organizations. This was very helpful in

the speed of everything being processed. Thanks

again!!."

Jason Beckendorf

x A Homeowner’s Guide to Selling

"The three great essentials to

achieving anything worthwhile

are; first, hard work, second,

stick-to-it-iveness, and third,

common sense."

--Thomas Edison

A Homeowner’s Guide to Selling xi

Table of Contents

Chapter 1: Special Situations 1 Selling the luxury home • Selling your home in winter

• Vacant homes

• FSBO • Homes for Heroes

Chapter 2: Getting the House Ready for the

Market 9 Exterior • Interior • Does it stink? • Clean, de-clutter

and stage

• Should I make repairs?

Chapter 3: Hiring a Real Estate Agent 16 How to • Questions to ask

Chapter 4: What to Expect When I List your

House 19 Setting the price • Should I finance the buyer? •

What’s my part in the process?

• Why some homes don’t sell • Open houses

Chapter 5: Entertaining an Offer to Purchase 28 Anatomy of a purchase agreement • Tell all •

Negotiation

Chapter 6: The Escrow Period 34 What happens if the appraisal is low? • What else can

go wrong

• Final steps on the road to closing

Chapter 7: Closing 39 What is a simultaneous closing? • What to expect at

closing

Afterword 41

xii A Homeowner’s Guide to Selling

Some spiffy medallions that prove I’m the expert

(toot! toot!)

Appendix i: Who Pays for What at Closing 42

Appendix ii: Ideas for Winter Curb Appeal 46

Appendix iii: Preparing the Home for the Market

Checklist 47

Appendix iv: Inexpensive DIY Staging Tips 50

Appendix v: The Purchase Agreement 52

Glossary 71

A Homeowner’s Guide to Selling xiii

Introduction

o matter what weighed into the decision to sell

your house, you most likely did not make the

decision lightly. Relocation for a new job, downsizing,

the need for more space, divorce, the death of a

spouse and financial problems are just a few of the

reasons Americans have for selling their homes. Your

reason is, in real estate terms, your “motivation for

selling.”

Sounds a bit impersonal, doesn’t it? After all, this

home is full of memories – both good and bad. Your

home is more than the place you store your things, it’s

where you have celebrated holidays, raised children

and spent time with the people you love most. These

experiences and memories may be difficult to leave

behind, or you may feel relief, depending on your

motivation for selling.

Regardless of your motivation, selling a house –

especially if it’s your first time – can be confusing,

frustrating and time consuming. But it doesn’t have to

be. There is a system -- a step-by-step process -- to

take you from making the decision to sell your home

to the settlement table with less frustration and fewer

bumps in the road.

This system requires that you take no shortcuts

and most of all it demands that you go into the selling

process armed with knowledge, which is exactly why I

decided to write this book.

Buying and selling real estate has remained a

N

xiv A Homeowner’s Guide to Selling

mystery to the general public for too long. Despite

what some of us would have you think, real estate

agents don’t have a magic bag of buying and selling

tricks. All we have is experience gained from assisting

people with selling and purchasing homes on a daily

basis.

This book is my way of sharing this experience

with you. Once you have the knowledge we will make

a formidable team when we place your house on the

market.

So, although your reason for selling may be borne

of tragedy or joy, I am going to ask you to put your

emotions aside for a short time and treat the sale of

your house as a business deal. After all, for most

Americans, their homes are their largest financial

investment as well as the icon of a life lived, of

sanctuary achieved and dreams dashed and realized.

A Homeowner’s Guide to Selling 1

Chapter 1: Special Situations

hile the steps to the successful sale of a home

apply to most homeowners, there are several

situations that require an adjustment to the process.

Let's take a look at some of these.

Selling the Luxury Home

The luxury home selling process differs from that

of selling a typical home in several ways, the most

significant of which is that it generally takes longer to

sell a luxury home. Here are some additional

differences:

The buyer pool is smaller.

The buyers typically have the luxury of

taking their time when making decisions.

Setting an accurate price for a luxury

property may be challenging for real estate

agents that don't typically work in the luxury

home market.

It can be difficult to find accurate comparisons to

determine the listing price for a luxury home. Whether

the house was custom-built with imported materials,

or because of its amenities or location, setting a price

may be a challenge when there are no sold homes

that are comparable. This is where your choice of

agent becomes critical.

The new or part-time agent doesn't have the skills

W

2 A Homeowner’s Guide to Selling

required to properly price the luxury property. These

agents do not have the marketing skills required to

laser-focus the home's marketing to the right pool of

buyers, either.

Most importantly, these agents are often unable to

justify the list price to an appraiser that may find

placing a value on the home equally challenging.

The agent that markets your home needs to

understand that he isn't selling a home, he's selling a

lifestyle. Then, he needs to be aware of what the

typical affluent buyer is seeking and then target that

buyer's "hot buttons" in his marketing materials. All of

this must be done in an elegant, sophisticated and

tasteful manner.

If the buyer isn't paying cash for the home and

needs to obtain a mortgage, be prepared for the

process to slow even more. While the length of the

loan process depends a great deal on the liquidity of

the buyer's assets, there are far more hoops for her to

jump through when obtaining a jumbo mortgage.

Luxury homebuyers can afford to be choosy and

may make some demands that seem outrageous or

insulting to you. Remember: although your home may

be amazing, it reflects your taste and fits your

lifestyle. This may not be the case for the potential

buyer, so try to approach all requests unemotionally.

This home represents a significant financial asset, so

treat the sale of it as a business deal.


Selling in Winter

While its best to avoid selling your home in the

winter, sometimes that just isn't possible. Let's look at

some considerations when selling your home in winter

and, most especially, during the holidays.

Curb appeal in the winter may be difficult to

achieve. While you may think your front landscaping

resembles a Currier and Ives lithograph, potential

buyers may not. There are ways, however, to create

winter curb appeal and you'll find a list in Appendix ii.

The most important task is ensuring that potential

buyers have easy access to the home. Shovel the

sidewalks, entry path and driveway and clear the

snow from decks and patios. If you don't have photos

of your yard in spring, take one now and make notes

on it as to where your bulbs, shrubs and perennials

are planted.

Not everyone participates in the Christian and

Jewish winter holidays, so it's important to not

alienate the few potential buyers in the market at this

time of year. Wreaths, menorah, lights, trees, and

dreidel should all be stored during the marketing

period.

Gifts should be stored either in a secure location

on the property or at a storage facility.

Don't count on the house closing escrow by the

end of the year. The last two weeks of the year

typically find few people at work. This means title

company representatives, lenders and your buyer's

agent may be taking some time off, thus slowing the


process. To avoid frustration, have your agent

schedule the closing for after January first.

The Short Sale

If anything confuses real estate consumers more

than the short sale, I've yet to hear of it. A short sale

is a real estate transaction wherein your lender gives

you permission to sell the house for less than what

you owe on it. It's a great way to avoid foreclosure,

but it's a complicated transaction and, if it’s one you

hope to pursue, it must be started immediately if you

hope to avoid foreclosure.

Hiring the right real estate agent is the most

significant step toward the ultimate success of your

short sale. Now, lest that sound a bit too much like

self-promotion, allow me to explain.

Your lender requires verification that you have

experienced a hardship that makes it impossible for

you to pay your mortgage. The lender wants to see

financial documents, proof of the hardship and more.

A real estate agent knowledgeable about and

experienced in the short sale process will assist you

with preparing the "short sale package" that the

lender requires. Additionally, any misstep in the

process, from listing the house to closing, may derail

the transaction and force you into foreclosure.

This is not a do-it-yourself project, so choose your

agent wisely and allow him or her to guide you

through the process.


Selling the Vacant Home

Many homeowners need to move to the new

home before the old home sells. As you can imagine,

selling an empty house is a bit of a challenge. Not

only are there the insurance, maintenance and

security aspects to consider, but also the appeal to

the potential buyer.

Since studies show that a home that is lived in

sells 40 percent faster and closer to the asking price

than a vacant home, consider the following to

maximize your profit on the sale of the home:

Hire a professional home stager. These

designers bring in everything from furniture

to decorative items and arrange them to

appeal to the masses.

Stage the home yourself. Even if all you do

is hang a shower curtain and matching

towels in the bathroom and a basket of faux

fruit on the kitchen counter, it helps the

home look less vacant. If you feel you lack

that interior designer flair, use some of my

DIY ideas from Appendix iv.

Hire a tenant. While not available in all

areas, temporary tenant agencies have

sprung up across the country, such as

Showhomes. These companies supply

carefully-screened tenants (whom they call

"home managers) who bring their own

furniture when they move in. The manager


is required to maintain the landscaping, pay

all utilities and keep the home immaculately

clean for showings.

Selling the Home Yourself

Hey, why not sell the home yourself and save a

whole bunch of money? Lots of homeowners get this

idea. Some are successful while most, sadly, are not.

If you're thinking of selling the home without the aid of

a real estate broker, consider the following statistics

from the National Association of REALTORS:

In 2013, the typical For Sale by Owner

(FSBO) home sold for $150,000, while the

typical agent-assisted home sold for

$215,000.

The most difficult tasks, according to

FSBOs surveyed, were setting the right

price and figuring out the paperwork.

The most common marketing method was a

yard sign, despite the fact that most home

buyers use the internet in their initial search

for a home.

According to a University of Chicago study,

FSBOs spend more days on the market.

A study published by Northwestern

University claims that FSBOs remain on the

market longer, have a lower probability of

selling, that listing on the MLS helps them

obtain a higher sales price.


Homes for Heroes®

Homes for Heroes is an organization that is near

and dear to my heart. My affiliation with them allows

me to offer rebates and discounts to the heroes that

serve our country and its communities every day.

Firefighters, military personnel, teachers, nurses and

law enforcement officers make our communities a

better place to live. They serve us and it’s only right,

in my opinion that we give back when we can.

Here is what Homes for Heroes offers:

A rebate of 25 percent of my gross

commission whether you buy, sell or both.

Discounted lending fees on purchase or

refinances with a HFH preferred lender.

Discount on Private Home Inspections with

HFH preferred home inspection company.

Discount on closing fee when using HFH

preferred Title Company.

My role in the process is highlighted in the first

offering: you will receive a 25 percent rebate on my

real estate fees when I represent you in the sale or

the purchase of a home.

Let’s take a look at some frequently asked

questions about the Homes for Heroes program:

Q: Who qualifies as a workforce hero?

A: Workforce Heroes include, but are not limited to:

teachers, firefighters, public safety officers, health


care workers, military personnel, and others who

provide services to the public every day. To find out if

you qualify, please contact me at 763-280-7349.

Q: How did this program get started?

A: Homes for Heroes was formed in 2002. Following

the tragedy of September 11, 2001, and bolstered by

a shared admiration for the “Heroes” who selflessly

serve their communities, a group of Minnesota real

estate-related business owners created the innovative

network that we now know as Homes for Heroes.

Q: Will I still get full-service real estate representation in the Home for Heroes program?

A: Absolutely! I offer full service at a discounted rate.

To get started, give me a call.


Chapter 2: Getting the House Ready for the Market

efore you think about hiring a real estate

agent and sticking the for-sale sign in the

lawn, you need to prepare the house for the market.

This is a crucial step in the selling process that

deserves all the time and effort it requires. Clean, de-

cluttered and staged homes sell faster and for more

money. Since selling the house quickly and getting

the most money you can for it is your goal, let's get

started preparing the house for buyers.

Exterior

Do me a favor. Put this book down, walk outside

and cross the street. Take a good, long look at your

house, top to bottom.

If you think it looks perfect you either take

excellent care of the house or you're too attached to it

to see the flaws. If the latter is the case, grab a

neighbor and drag her to the curb and ask for her

honest impressions.

What you, or the neighbor, are seeing is the

house's curb appeal and it's the same thing potential

buyers see when they drive up to the curb in front of

your house. It's your home's first impression.

Think of curb appeal as buyer bait: Is what they

will see from the curb enticing enough to compel them

to look at the home's interior? You'd be surprised how

many buyers I've had in my car who ask me to drive

B


on after simply viewing a home from the outside.

We don't want this to happen with your house. So,

grab a notepad and start taking notes on items that

require your attention. Start at the top of the house

(roof, gutters) and work your way down (window

screens, cobwebs on the porch) until you get to the

soil (dead plants, messy flowerbeds). Then, get to

work fixing or replacing what ends up on your list.

For ideas on how to increase curb appeal, see Appendix ii.

Interior

So, you got the buyers out of the car and into the

house, Congratulations! Is what they'll see enough to

make them want to see more or send them running

back out to the car?

When considering the condition of the interior of

your home remember, first impressions are

everything. Stand at the front door and use all of your

senses to experience the home's entry as a stranger

would.

Odors

How does it smell? We've all been in homes

where we have to catch our breath after the initial

assault of unpleasant odors. If you've grown

accustomed to your home's particular odor, go grab

that neighbor again and get her opinion.

When it comes to odors in the home the biggest

culprits are kids and pets. They both have accidents


and, if not cleaned immediately, the site becomes a

source of odors. To rid the house of kid and pet stink,

consider the following:

Have the carpets professionally cleaned

and deodorized. You may have to do this

twice if odors remain after the first cleaning.

Open all the windows to ventilate the home.

Clean the cat's litter box regularly while the

home is on the market.

Clean the exhaust hood over the stove.

Nasty cooking odors tend to cling to the

grease on the hood's surface and a

thorough cleaning typically removes them.

Since odors cling to fabric, dry clean or

launder all window coverings, throw rugs

and bedspreads.

Avoid the use of commercial room deodorizers.

Although you may find a particular scent heavenly, it

may just be the worst odor a potential buyer has ever

smelled. Fresh flowers help add a light scent to rooms

and small, tucked-out-of-sight bowls of baking soda

help absorb unpleasant odors.

Sounds

Stand in your entry way and listen. Are there

distracting sounds? Does the sound of the neighbor's

Yorkie yapping seem to be the most prominent

sound? Make a note to play soft jazz or classical

music during showings.


Sights

What do you see as you step through the door? If

it's piles of kids' toys or laundry you've got some work

to do. If it's too dark to see anything, make a note to

either purchase new lighting or open all the curtains

and blinds on showing days.

Time for the Heavy Lifting

Once you've made notes on how to keep potential

buyers from running back out to the car, it's time to

ensure that they take their time viewing the rest of the

house. This involves getting rid of a lot of "stuff,"

whether to a storage unit or a charity or via a garage

sale.

Your aim in de-cluttering the house is to make

each room appear as big and bright as possible.

Start with the furniture. If you have nice, large

rooms, oversized furniture isn't likely to be a problem.

Big furniture in small rooms, however, needs to go.

You may miss the 152-inch plasma TV in your 10 by

12 foot living room, but keep in mind that its removal

will make you more money on the sale of the home.

Now, if the same TV is in a media room, you have

yourself a selling point!

The story is the same for oversized bedroom

furniture. Take it to storage and rent smaller items or

repurpose items from other areas of the home.

While you're moving furniture around, it's a good

idea to make sure that each room holds only those

items appropriate to its use. For instance, if the


treadmill is in the bedroom, either create an exercise

room or put the treadmill in storage. If baby items are

strewn around the home office, put them in the baby's

room so that it is clear to buyers that the home office

is truly a home office. (Home offices are big sellers,

so it pays to play them up).

De-Clutter

Once you've opened up the rooms it's time to get

rid of the clutter. Buyers want to be able to see

themselves living in a space and that's difficult to do

when strange faces are peering at them from family

photographs or they're confronted with stacks of

unfamiliar DVDs.

Go through each room and remove anything of a

personal nature. If you have any doubts about what

constitutes "personal," take an hour to tour a local

new home development's model homes. The

professional designers of the interiors of these homes

are staging experts and each item is carefully chosen

to help a potential buyer to see herself living in that

home.

Don't neglect drawers, cupboards and closets

when you're on the hunt for clutter. The roomier these

areas appear, the more attractive they will be to

buyers. (You'll find additional tips on de-cluttering in

Appendix iii.

Clean

If you plan on painting, this is the one step you


can take out of order. Paint the walls before cleaning.

Call me the master of understatement, if you like,

but deep cleaning isn't fun. It's time consuming and

it's hard work, but if you intend on getting maximum

dollars for your house, it must be done. If you simply

don't have the time or energy to clean your house,

hire someone to do it for you.

Since your ultimate goal is to help a buyer picture

himself living in your home, remember that nobody

wants to live in a dirty home. Dirty homes also make

buyers wonder if the home has received routine

maintenance, so your aim in cleaning the house

should be nothing short of making it immaculate. Top-

to-bottom, detailed cleaning is a must. Since kitchens

and bathrooms typically sell homes, pay extra

attention to those two rooms.

Stage

Think back to the model home tour you took. It

sure looked like someone lived there, didn't it? It also

looked like you could move right in and be

comfortable. These feelings are what sell newly-

constructed homes. Interior designers painstakingly

plan how to stage model homes to evoke these

feelings.

Staging works. Study after study has found that

staging a home for sale helps it to sell quicker and for

more money, so the cost of staging a home is

justified.

There are three ways to stage your house:


Hire a professional home stager.

Do it yourself.

Hire a virtual home stager.

If you just don't have the budget to hire a

professional home stager, there are inexpensive

techniques you can use to get roughly the same

mileage for the money. I discuss these techniques in

Appendix iii.

Repair

One of the most frequent questions home sellers

ask me is if they should make repairs before putting

the house on the market. The most frequent answer I

give is: "It depends."

If the repairs remedy a cosmetic defect (holes in

window screens, dripping faucets, broken items) then,

yes, make them.

Whether to undertake larger repairs also

"depends." Remember, you are required to disclose

all known issues to the buyer. If the defect affects the

safety, comfort and enjoyment of the home, the buyer

will most likely ask for its repair or replacement during

the transaction. Since this could slow down the sale,

it's best to make these repairs before placing the

home on the market or while it is on the market.


Chapter 3: Hiring a Real Estate Agent

he house is clean, it's staged and it's ready to

show off to the world. How will you get the

word out about this amazing specimen of a house?

How will you attract qualified buyers?

By choosing the right real estate agent. Now, I

promised at the beginning of this book that I wouldn't

fill it with self-promotion and real estate marketing

jargon and I plan on staying true to my word. The very

real truth, however, is this: not all real estate agents

are alike.

That's true in any profession, right? That's why we

have a Better Business Bureau and numerous

websites containing reviews of companies and

professionals. While there are anywhere from 360 to

450 NBA players during any given season, only a

handful become household names. While typically 70

professional golfers make the PGA Tournament cut,

there's only one Tiger Woods.

A certain amount of passion for and dedication to

a chosen career path that sets some professionals

apart from the pack.

It is the same in the world of real estate. Some

agents work a full-time job and dabble in real estate

on weekends or in their spare time. Others eat, drink

and sleep real estate and wouldn't dream of doing

anything else. This dedication is what makes them

leaders in their markets and it's only natural for

consumers to want the best and brightest in the

T


industry.

When considering who to trust with the sale of

what may be your biggest financial asset, choose

wisely. Since you will be paying the sub-par agent the

same as the expert, why settle for sub-par? Look for

an agent that has the passion and dedication to

exceed your expectations. I hope to be that agent for

you.

How to Hire a Real Estate Agent

Here, in a nutshell, are the steps to take when

attempting to find the ideal agent to list your home:

Obtain referrals -- since you are reading my book,

I assume one of my past clients has referred you to

me. Perhaps you found me via the Internet. Hopefully

you noticed the testimonials written by past clients

toward the front of this book. I'm also happy to share

with you the names and phone numbers of past

clients.

What Questions Should I Ask a Real Estate Agent?

Since marketing your home to the public is the

agent's most important job, seek an agent with proven

marketing skills. You can determine the agent's

marketing acumen by scrutinizing the way the agent

markets his or her real estate business. If the agent

doesn't care enough to market his own business

appropriately, how can you expect him to do any

better when marketing your home.


Ask to see how the agent has marketed homes in

the past. If these marketing pieces sizzle, you've

found a great real estate agent. If they're lackluster or

unappealing, reject the agent.

Ask as well to see printouts of the agent's current

listings from the Multiple Listing Service (MLS). This

database is used by buyer's agents to locate

appropriate homes for their clients. There should be

lots of clear photos that show the house in an

attractive manner. There is no excuse for blurry

photos -- that's just sloppy and if the agent can't find a

way to present your home in its best light -- especially

after all the work you've done to prepare the home for

the market -- he or she doesn't deserve your

business.


Chapter 4: What to Expect When I List your House

look at a listing appointment -- that moment

when I sit in front of a potential client to prove

my mettle -- much as I do a job interview. It's

important to me that my clients understand my

qualifications and my dedication to their needs. Only

then can we form the alliance necessary to quickly

sell your home for top dollar.

I will take lots of photographs of both the interior

and the exterior of the home. These photos will

accompany the listing on the MLS, they'll be posted

on the RE/MAX website, my website and a host of

other major real estate sites.

Setting the Price

Before we discuss how I go about determining an

appropriate list price for your home, a discussion of

market value is in order.

Many homeowners are under the impression that

what their neighbors are asking for their homes

reflects market value. I call the price range of current

listings "Fantasyland," because the price merely

reflects either the listing agent's or homeowner's

opinion of what the home is worth. Until a home

actually sells -- when a willing buyer pays for a home -

- list price is a fantasy and what the homeowner

hopes he will get.

Market value, then, is based entirely on what

I


other homes in the area have sold for during a

specific time period -- typically the past six months.

The first step in determining market value is to

find these homes and then narrow down the field,

according to certain criteria. The overall principle is

comparability. I try to find the homes that are most

comparable to yours in the following areas:

Size

Age

Number of bedrooms

Location

Features

Out of these criteria, location is probably the most

important. I say "probably," because certain features

may take precedence. For example, suppose Joe's

house backs up to a busy street but your house is

situated on a corner lot, well away from the highway.

Given that both houses are roughly the same size and

similar in all other aspects, we can assume that your

home is worth more.

Suppose, however, that Joe added custom

features to the home -- the type that buyers go crazy

over such as granite countertops, wood floors, an

office or theatre room and an island in the kitchen.

These features will increase the value of Joe's home.

Will the additional value be able to trump the location?

In certain markets, it can.

After comparing all of the homes to yours I will

determine a price range in which we should list your


home. Remember, this is a suggestion. You are free

to list the home at whatever price you wish. There is a

real danger in overpricing the home, however, as

you'll see in the upcoming “Why Some Homes Don’t

Sell” section.

The Pros and Cons of Financing the Buyer

One of the items we'll discuss when I first list your

home is whether it's a good idea to offer to finance the

buyer. In other words, you would act as the lender in

the purchase of the home. There are only certain

circumstances under which I advise a client to

consider this.

Not too long ago just about anyone breathing

could obtain a mortgage. Sadly, the lenders' largesse

came back to haunt millions of American homeowners

when the economy tanked and so many lost their

jobs.

Credit standards and underwriting have tightened

in the past few years. Lenders require higher FICO

scores and additional proof of employment. Buyers

are scrutinized far more now than then. Even the

once-very lenient Federal Housing Administration

(FHA) has increased the credit score necessary for

buyers to obtain their lowest interest rates.

In a fast-moving seller's market there is really no

reason to offer financing on the home, other than that

you want to make a little extra money off of it. Even

then, I would caution against it. There are too many

dangers inherent in seller financing, the worst of


which is that you'll be on the hook for the mortgage

payments if the buyer doesn't pay.

The only time I suggest using this tactic is if you

own a hard-to-sell property. These include fixers,

homes in poor locations, homes with incurable

defects (such as the layout) and homes that are

damaged from deferred maintenance issues.

Your part in the process

The two most important jobs of the seller during

the marketing period are to keep the home clean and

to be as accommodating as possible to buyer's

agents who request a showing.

Although you may find it inconvenient to show the

home during the time you usually eat dinner, this may

be the most convenient time for buyers. Showings

don't take that long, so try to accommodate all

requests from buyer's agents.

It's also a good idea to leave the home during the

showing. This allows the potential buyer to relax and

take his or her time to view the home. This holds true

for the open house, as well.

Finally, be mindful of your valuables during the

period the home is on the market. Lock them up or

remove them to a safe deposit box. Although most

folks are honest, there's always an exception and

leaving valuables lying around may just be too

tempting for that person.

The same holds true for prescription medications

and weapons. Lock them away.


Why Some Homes Don't Sell

When a home sits languishing on the market, it's

easy to blame the listing agent and, sometimes, it is

the agent's fault. Most of the time, however, it isn't.

The number one reason that a home doesn't sell

is because of price. Home sellers aren't fooling

anyone when they price their home above what the

market will bear. Buyer's agents know what your

home is worth and, believe me, they will tell their

clients that your home is overpriced.

When a home isn't selling the first thing I do is run

another market analysis. Markets change quickly and

the price we set at the beginning may not be

appropriate under current market conditions. If I find

comparable homes that have recently sold for less

than your asking price, I will ask you to consider

reducing the price.

If price doesn't seem to be the issue, perhaps you

didn't do everything you should have done to prepare

the home. Take an afternoon to tour the competition

to see how your home's condition and appeal

compares. Then, make some changes to the home

that will increase its appeal. Some of these might

include fresh paint, new window coverings, even

something as simple as adding some additional

staging items can boost the home's appeal.

Sometimes when a home isn't selling or

generating attention it might just be the market. Even

in the best seller's market there are slow times. In this

case, your best bet is to assure yourself that we, as a


team, are doing everything we can to market the

home and accommodate showings and consign

ourselves to ride the out this slump.

Marketing, Marketing, Marketing

The whole business of buying and selling

residential real estate changed the day the Internet

came into being, and year after year it continues to

evolve. Because most buyers use the Internet to

search for homes, it is imperative that I get your home

in front of as many eyes as possible.

This is a task I take quite seriously. As an Internet

marketing specialist I rely heavily on my online

expertise to get my client's homes sold. So, expect a

professional and well-thought out marketing blitz

during the time your house is on the market.

The Broker's Open

Getting as many real estate agents as possible to

view your home is second in importance only to

getting as many buyers as possible to tour it. As soon

as your house is entered into the Multiple Listing

Service (MLS) database I'll schedule a Broker's Open

House. These new listing tours are scheduled weekly

and announced through the MLS. Buyer's agents

scour these announcements for listings that may meet

their buyer's needs. Then, the parade begins.

Homeowners are typically not home during a

Broker's Open, and that's probably a good idea. You

may be quite surprised at how quickly they race


through the homes on their lists. When you stop to

think about how many homes an agent views during

his or her career, however, you understand their need

for speed and how effective they are at catching the

home's highlights during their brief visit.

Your job, as usual, is to ensure that the home is in

tip-top shape for the Broker's Open.

My job depends on the current state of the real

estate market. When the inventory of available homes

is tight, your home may be the belle of the ball. In a

market glutted with available homes, on the other

hand, I may have to do a bit of extra work to slow the

agents down as they tour your home. The longer they

stay in the house, the more they will notice and can

pass on to their clients.

There are several ways to slow down fast-moving

real estate agents, the most effective of which is food.

Whether it's pastries and coffee during a morning

Broker's Open or a full lunch spread, which I have

done for high-end sellers (and call it a "reception," not

an open house), when an agent stops to munch, it's a

good thing.

Open House

The traditional weekend open house is one of the

biggest real estate hoaxes ever perpetrated on the

consumer. Open houses rarely contribute to the sale

of a home and there is both anecdotal and statistical

proof of that. Yet, the tradition continues. I don't know

about you, but the first thing that pops into my mind


when I hear something like this is "Who stands to

benefit?" Cynical, yes, but I can also tell you exactly

who stands to benefit: the listing agent, and he or she

benefits in two ways.

First, the open house serves as a way to show the

homeowner that his or her listing agent is working

hard for the commission.

Second, it's the ideal way to find new clients. Do

you honestly believe that the sign-in book the agent

places by the front door is for the seller's benefit? Of

course not. It gives the listing agent a handy list,

complete with contact information, on people looking

for a home to purchase. These are all potential clients

to the listing agent and your house was used as bait

to lure them in.

The New York Times recently interviewed folks

touring some open houses in New York City. “We’re

out dreaming today,” one attendee claimed. He went

on to tell the reporter that he is not anywhere near

ready to buy a home.

Let's take a look at the statistics, provided by the

National Association of Realtors:

Fewer than half of all homebuyers use open

houses in their search for a home. This is

no surprise if you recall what we discussed

earlier. The Internet is the primary method

homebuyers today look for a house to

purchase.

Half of those that attended open houses

rated the event as "not useful."


Less than 1 percent of buyers that attend

open houses actually purchase the home.

The popularity of open houses is also regionally-

dependent. A recent study of over a quarter million

listings in 11 cities shows that open houses are quite

popular in San Francisco and Boston, with 83 percent

and 63 percent -- respectively -- of listing agents

hosting them. Only 5 percent of agents in Phoenix

and 3 percent of Las Vegas agents hold open houses.

In today's fast-moving real estate market, so

dependent on modern technology to market and sell

homes, open houses have become obsolete and the

energy spent hosting them is better used to pursue

marketing methods that actually work.


Chapter 5: Entertaining an Offer to Purchase

hen a buyer decides to make an offer on

the home, his or her real estate agent will

structure the offer on a form known as the “Purchase

Agreement.” You’ll find an example of this form in

Appendix v. Once signed by all parties, the purchase

agreement constitutes a legally binding contract.

Never sign a purchase agreement unless and until

you understand the terms. Every clause within the

agreement has a purpose and it is imperative that you

understand them.

While I am not an attorney and cannot provide

you with legal advice, I will do my best to answer any

questions you may have about the purchase

agreement.

The three most important aspects of the

agreement are:

The offering price.

The amount of the down payment.

The closing date.

The Anatomy of the Purchase Agreement

When we receive the offer, I'll sit down with you to

review it, paying close attention to not only the

aforementioned items but also the following:

Buyer's loan preapproval: The offer to purchase

should be accompanied by a letter of loan pre-

W


approval from the buyer's lender. Without this

document you have no way of knowing if the potential

buyer is even qualified to buy your home.

Contingencies: these are conditions placed on

the offer to purchase. Think of contingencies as if the

buyer is saying "if you do "x", or if "y" comes to pass,

by this date, I will purchase the home. If it doesn't or it

is late, I have the right to walk away from the

purchase with a return of my earnest money deposit."

One common contingency has to do with the

buyer obtaining financing for the home. This

contingency says that the purchase of the home is

contingent on the buyer's ability to obtain a mortgage

in a stated amount, at a stated interest rate and loan

term. The clause will also contain time limits,

specifying how long the buyer has to apply for the

loan (typically within three days of the contract's

execution).

Contingencies, like most items in the purchase

agreement, are negotiable. While it's reasonable for

the buyer to make her purchase contingent on a clean

home inspection, it is unreasonable if she asks for 30

days to complete the inspection. Other contingencies

should be likewise considered carefully, weighing

them against the offering price.

Fixtures and Personal Property: A typical home

purchase includes the land on which the house sits,

the house and anything permanently affixed to the

house or land, such as light fixtures and rose bushes.

If you plan on removing a fixture to take it with you

when you move, do so before you put the home on


the market.

Personal property, on the other hand, includes

anything that is moveable, such as furniture,

children's outdoor play structures and appliances.

Buyers will sometimes ask that certain personal items

be included in the sale.

A counteroffer, which you will find a sample of in

Appendix vi, is the form on which we will submit all

answers to contingencies you do not wish to accept or

will accept if altered. For instance, if the closing date

in unacceptable to you, we will accept the buyer's

offer under the condition that the deal closes by the

time you specify. If the buyer asks for your living room

furniture you can either include it in the sale or submit

a counteroffer stating a higher price to include the

furniture or deny the request altogether.

Earnest Money Deposit: Also known as the

"good faith deposit," the earnest money deposit is

money, often amounting to 1 percent of the purchase

price (but not always), that the buyer offers with the

purchase agreement. Its purpose is to assure you that

he or she is serious about purchasing the home.

This deposit is placed in the broker’s trust

account.

When the transaction closes, the money is

credited back to the buyer.

If the buyer defaults on any of the contract terms,

or decides he or she no longer wants the house, you

are entitled to keep the deposit. Now, it the buyer

cancels for a valid reason, such as expensive repair

requirements uncovered in the home inspection, and


the purchase agreement is subject to the buyer's

approval of the inspection, he or she is entitled to a

return of the deposit.

I look closely at the amount of the earnest money

deposit and will advise you to counter the offer if the

amount is too low.

Addendum

An addendum is a separate document that

clarifies or introduces additional information to the

purchase agreement. Once signed by all parties, it

becomes an integral part of the purchase agreement.

Addenda are used for many things, such as to

detail an owner-financing arrangement or to clarify

that a house is being sold in "as-is" condition. Most

lenders require that a short sale addendum be

included in any purchase agreement submitted.

Amendment

Some real estate transactions go smoothly while

others have repeated bumps in the road to the close

of escrow. When an issue arises, it is typically dealt

with by using an Amendment to the Purchase

Agreement Contract amendments are used any time

the parties need to renegotiate contract terms, such

as changing the closing date or requesting repairs to

problems that turn up in the home inspection.


A Note about the Importance of Disclosure

Seller disclosure is one of the most important

duties you perform when selling your home. Although

it may seem that you're sabotaging the sale by

disclosing known problems, you are actually

protecting yourself from future liability.

So, what needs to be disclosed? Although legally

you are required to disclose any issue that may

materially and adversely affect the buyer's health or

use and enjoyment of the home, I always suggest

disclosing everything, even the minutest issues.

Negotiating

Lowball offers happen. Let's get that out of the

way upfront. Let's also get clear on the fact that by

lowballing the offer, the buyer isn't trying to

intentionally insult you or your house. There are just

some real estate consumers that think they have to

bargain on price to the point of ridiculousness.

There isn't a thing wrong with entertaining these

offers and countering them at a more appropriate

price. It does take time to do so, however and if there

are more attractive offers on the table you may

choose to ignore the lowball offer.

If there are no backup offers you may still wish to

reject the offer. Although I am always 100 percent

sure that the price range I've suggested for my listing

clients is accurate, I'm happy to run the comps again

just to make sure the market hasn't drastically

changed overnight. If it appears that we still have the


data to justify the asking price, and you have the time

to wait for another offer, sometimes a rejection of the

lowball offer is your best bet.

If the offer is acceptable to you, in both price and

terms, you will sign it and I'll send it back to the

buyer's agent. We now have an executed contract

with clearly defined tasks and time limits. It's time to

open escrow.


Chapter 6: The Escrow Period

nce the contract is executed the buyer will

hold up his or her end of the contract by

applying for financing and ordering appropriate

inspections. The lender will examine the home’s title

and send an appraiser to the home.

If there are irregularities in the chain of title,

known as "clouds" on the title, you will need to clear

them before the sale of the home can proceed.

Common clouds on title records include liens and

unpaid mortgage loans from a former owner.

Other items may crop up during the escrow period

and it's important for you to know about them.

Uh-oh, the Appraisal is Low

One of the most devastating problems we might

run up against is a low appraisal. Luckily, there are

several ways of dealing with the situation:

Challenge the Appraisal

Appraisers sometimes make errors. When

confronted with a low appraisal it's important to

ensure that the appraiser had the correct information

about the home. If you paid for the appraisal you can

request a copy of it. Otherwise, we'll need to have the

buyer make the request.

When reviewing the appraisal we'll first look for

errors in the description of your home. Sometimes a

bathroom is left off the appraisal report or the square

O


footage is inaccurate. We'll check to ensure that you

were given credit for improvements that should

increase the home's value.

We will also check the comparable homes the

appraiser used in making the determination of your

home's value, looking for similar errors.

Armed with evidence of an incorrect appraisal,

we can then approach the lender and ask for a review

in light of this additional information. If that doesn't

work, the buyer can ask the lender for a second

appraisal.

Lower the Price of the Home

If it appears that the appraiser is correct in his or

her estimation of the home's value and you want to

complete the transaction, you may want to consider

lowering the price of the home to meet the appraised

value.

Request that the Buyer Meet you Half Way

If you have a motivated buyer, consider lowering

the purchase price halfway and request that the buyer

increase his or her down payment to the same

amount. This way, both buyer and seller compromise.

This tactic doesn't work in slow markets where buyers

have many homes from which to choose.

What Else Can Go Wrong?

The typical home sale has few major problems but


that doesn't mean we shouldn't be prepared for any

that may come up. Aside from a low appraisal, here

are a few other problems that may occur:

Buyer's remorse – If this happens, it

typically happens to a first-time homebuyer.

He may become fearful that he can't afford

the house. He may feel that he settled too

quickly and should have looked at

additional homes. Hopefully the buyer's real

estate agent is savvy enough to help him

through buyer's remorse by reminding him

why he originally felt the home was perfect

for him.

Unacceptable inspection results -- If the

inspection turns up a wood-destroying pest

infestation, such as termites, the home will

need to undergo either tenting or some

other remedy acceptable to the lender.

Most lenders won't approve a loan on a

house with pests. There are other problems

that may be revealed by the inspection that

you, the seller, may have to attend to.

Problems with the buyer's loan -- Just

because the buyer qualified for the loan

when she applied, doesn't necessarily

mean she will still qualify for that loan

before escrow closes. Most lenders do what

is known as a "soft pull," before the close of

escrow. This is a type of credit check that

won't harm the buyer's credit rating but it


will tell the lender if his credit has changed

since he was approved for the loan. If they

find anything that negatively impacts the

buyer's credit rating, the lender may cancel

the loan, thus cancelling escrow.

Issues that pop up during the final walk-

through -- Buyers have an opportunity to

walk through the home once more before

the close of escrow. This typically occurs

three days to even the day before closing.

The final walk-through provides the buyer

the opportunity to ensure that the home is

in the same condition as when she agreed

to purchase it. It is not the time for the

buyer to address new concerns. It's too late

at this point for that.

Buyers are unable to sell their current home

-- I typically advise against accepting an

offer from a buyer that makes an offer

contingent on selling his current home. Of

course there are times, such as during a

slow market, when the seller has no choice

but to accept such an offer. In a seller's

market, however, it usually isn't wise.

To eliminate surprises, sellers should consider the

following:

Eliminate any judgments against your

property. Don't assume that because you

don't mention them, nobody will find out


about them. They will, and taking care of

them before the house is in escrow will

keep the transaction on track

Respond to all requests from the title

company in a timely manner.

Ensure that the home remains in the same

condition as when the buyer agreed to

purchase it.

Once it appears that the escrow will close it's time

to gather up items that the buyer will need to live in

the home and comfortably enjoy its systems and

features. There's nothing worse than finally ending the

home sale process only to be dragged back into it

because the sellers don't know how to work the

sprinkler system. Some of the items you should leave

for the buyers include:

Garage door openers.

Alarm instructions and codes.

Hot tub manual.

Pool manual.

Irrigation system instructions.

Appliance manuals.

Mailbox keys.

It's also nice to leave the business cards of any

repair and maintenance people whose services you

trust. This type of referral works well for the

homeowner and it's a gesture of appreciation to the

repair or maintenance person.


Chapter 7: Closing

losings in Minnesota are performed by title

companies. There was a time when both

parties to the transaction -- the buyer and the seller --

attended closings but that isn't the case now. Today a

lot of the work is done by pre-signing most of the

documents just before closing.

Simultaneous Closing

A simultaneous closing is used to time the close

of the sale of your current house with the close of the

home you are buying. While it sounds ideal, the

process doesn't come without some inherent dangers.

If the first close doesn't occur, which does

happen, you won't have the funds to close on the

second home. If that happens you'll be in default on

the contract for the second home and there goes your

earnest money deposit.

A successful simultaneous closing requires

careful planning and diligence in keeping track of the

myriad of details involved in closing on two real estate

transactions.

Before my clients consider pursuing the

simultaneous close I advise them to examine the

buyers' motivation. Are they in a hurry or do they have

the luxury of taking their time during the home

purchase? How badly do they want the home?

Should you decide to pursue the simultaneous

close, here is what I will do to facilitate it:

C


Make the purchase of the new home

contingent on the successful sale of your

current home. This type of contingency isn't

attractive to sellers, so I'll need to analyze

the current market to ensure this is the right

move.

We will select a realistic closing date.

During the escrow period I will follow up

with you to ensure that you are paying

attention to your duties -- finalizing the

financing of the new home, repairs,

scheduling inspections and reading HOA

documents, if they apply. This way we'll

have all our ducks in a row on closing day.

You'll be expected to pay your portion of the

closing fees from the proceeds of the sale. See

Appendix i for more information on closing fees.


Afterword

I hope that you've enjoyed reading this book as

much as I enjoyed writing it, and that all of your selling

questions are answered.

When you're ready to begin the process, I would

be honored to be the agent who guides you through it.

To get started, call me at 763-607-1415.

I'll get to work right away, creating an analysis of

the market to determine the value of your home. I'll

also get busy creating a bullet-proof marketing plan

that will draw buyers to your home like a magnet.

Finally, you and I will work as a team to get the home

sold quickly and for top dollar.

If, after reading this book, you have additional

questions or concerns, let's talk.

I wish you all the best during this life transition

(which selling a house certainly is!) and hope to be

able to serve your real estate needs.


Appendix i: Who Pays for What at Closing

Abstract

The abstract is a bit like the property’s genealogy.

It shows the names of everyone that has ever held

title to the property and how long he or she owned it.

Sometimes the abstract requires updating, at other

times an entirely new abstract needs to be prepared.

The seller typically pays for this and the cost typically

runs between $75 and $400, depending on whether

you require an update or a new abstract.

Appraisal Fee

The appraisal fee is what the lender charges to

send an appraiser to your home to determine its

value. The buyer pays for the appraisal.

Closing Fee

The closing fee runs between $500 and $800 and

it pays for the closing agent. Who pays for this is

negotiable between buyer and seller.

Credit Report

This is another fee tacked on by the lender and it

runs between $50 and $100. This is paid for by the

buyer.


Deed Preparation

The title company prepares the deed and the

seller pays for it. The typical deed preparation fee is

$60.

Deed Tax

The deed tax is required by Minnesota statutes

and is based on a certain dollar amount per $1,000 of

sales price. Currently, it is $3.30 and it’s paid by the

seller.

Hazard Insurance Reserve

The lender pays hazard insurance premiums from

proceeds it keeps in escrow. The next premium, or a

portion thereof, will be impounded. The buyer pays for

the hazard insurance reserve.

Loan Origination Fee

The loan origination fee is what the lender

charges the buyer to lend him or her money. The

buyer pays this fee.

Miscellaneous Costs & Fees

An estimate of $150 should be considered to

cover other items such as recording fees and

document preparation, as well as allowing for

variations from these other estimates.


Mortgage Insurance

Mortgage Insurance usually is required on

conventional loans greater than 80% of appraised

value. The cost may range from 1/2% to 1% per year

and 14 months premium is often collected in advance.

This is coverage for the lender in case of default. The

premium is paid by the buyer.

Mortgage Registration Tax

Mortgage registration tax is a state tax charged by

the State of Minnesota for giving a mortgage. The tax

amounts to 23¢ per $100 of mortgage amount. This

tax is usually paid by the buyer/borrower.

Plat Sketch

A plat sketch is a sketch of the boundaries of a

piece of real estate used to determine whether

buildings or other improvements are actually located

on the property and that the neighbors' buildings or

improvements do not encroach on the property to be

financed. The cost for a plat sketch (between $60 -

$75) is usually paid by the buyer.

Prepaid Interest

A borrower often must pay interest from the date

of closing to 30 days prior to the first regular mortgage

payment.


Pro-Rated HOA Dues

HOA dues are negotiable but they’re typically

prorated and split between buyer and seller, based on

the date of the transfer of title.

Property Taxes

Property taxes are also negotiable but are

generally divided between the two parties. Since they

are pro-rated, the amount you will be required to pay

depends on the date you close escrow.

Recording Fees

The County Recorder charges a fee to record

documents. Most of the counties in Minnesota charge

$20.00 per document. Who pays these fees depends

on the document.

Title Fees

Title fees are negotiable and include title

insurance, title examination fees, plat drawing fees

and more.


Appendix ii: Ideas for Winter Curb Appeal

Don't let the snow discourage you from showing

off exterior features of the home. Shovel the deck,

clean the grill and leave the hot tub running and open

during showings. Let buyers imagine sinking into the

steamy hot water or plopping burgers on the grill.

Take photos of the home in spring or summer and

display them on the kitchen counter. This way they'll

know what type of plants they can look forward to

when it's not snowing.

Keep the home well-lit to counteract the gloom

outside.

Control the heat level in the home. The warmer it

is inside, compared to the chilly outdoors, the longer

they'll want to remain in the home.

Start a fire in the fireplace before showings.

Homes are typically buckled up tight in the winter,

trapping odors. Consider purchasing a scented

furnace filter or use scented candles throughout the

home.

Offer paper booties at the front door to protect

your carpet and show the buyers that you take pride

in maintaining the home.

Clear the walkways, driveway and front and back

porches of ice and snow.


Appendix iii: Preparing the Home for the Market Checklist

Gather up some large, sturdy boxes – one

for each room of the house.

Label the boxes with the name of the room

they correspond to and go through each

room placing the clutter in the appropriate

box. See page 8 to refresh your memory.

Check your cleaning supplies to make sure

you have what you need and shop for what

you’re missing.

If you’ve decided to hire a cleaning crew,

schedule an appointment.

Organize cupboards, closets and drawers.

Remove everything that isn’t decorative

from bathroom and kitchen counters.

Remove large furniture items.

Take the boxes and furniture to wherever

you’ve decided to store them.

Clean the home thoroughly. Yes, even the

baseboards.

Rearrange the remaining furniture, making

sure each room’s purpose is clearly

recognizable. Tour model homes to get

staging ideas.

Use the Internet for more ideas: Better

Homes and Gardens, HGTV, AETV.

http://www.bhg.com/home-improvement/moving/selling/staging-tricks-from-the-pros/


http://www.hgtv.com/real-estate/30-cant-miss-staging-tips/index.html

http://www.aetv.com/sell-this-house/pictures/tanya-s-tips-17201920/clutter-free-livingroom-17201928#Clutter-free-livingroom


Check all the lighting in the house, buy new

bulbs to replace dead ones and new lamps,

if required.

Go through the attic, basement and garage,

looking for anything you can use in staging.

Shop for decorative pieces, if necessary.

Craigslist.org, garage sales and thrift stores

are great places to find inexpensive

decorative items.

Create focal points by adding colorful

accents.

Wait until everything else is done and

shampoo the carpets and clean wood and

vinyl floors.

Don’t Forget the Exterior:

Spruce up the exterior entry way or porch.

Add pots of colorful flowers.

Groom the lawn and fertilize.

Remove all plant debris from the landscape

beds and spread fresh mulch.

Replace dead or dying plants.

Create a Brag Book

This is a fun project that most homeowners enjoy

doing. Fill a 3-ring binder or other type of notebook

with information about the house. Some of this may

include:

The real estate flyer I create for the home.


If we’re marketing the home in winter, add

photos of the landscape in full bloom.

A list of comparable neighborhood sales.

A community page that lists the area

schools, parks, shopping areas and

anything else that may be of interest.

A list of any improvements and repairs

you’ve made to the house, with copies of

invoices.

A list of the home’s special features.

We’ll leave this on a kitchen counter or by

the front door for buyers too look through.


Appendix iv: Inexpensive DIY Staging Tips

Outdoors (Season-dependent):

Clean up garden beds and consider

planting flowers or colorful foliage plants.

Spread fresh mulch over the beds.

Mow the lawn, trim hedges. In winter, clear

snow and ice from the driveway and

walkways.

Sweep away any cobwebs on the front

porch.

Clean or repaint the front door.

Purchase new house numbers: bigger is

better.

Purchase a new door mat.

Interior

Make closets, cupboards and drawers look

roomier by removing excess linens and

other items you won’t be using. Refold what

is left and stack or arrange everything

neatly.

Pack up almost everything on bookshelves,

leaving only a few books and decorative

items.

Remove personal photos hung on the walls

and replace them with impersonal artwork.


Clear kitchen and bathroom counters of

everything that isn’t ornamental.

Remove large pieces of furniture.

Create lots of light by cleaning windows and

getting rid of heavy drapery. Check all of

your light fixtures to make sure they have

working bulbs. Make sure there is 100 watts

for each 50 square feet of the room.

Paint walls a neutral color.

Replace old faucets and cabinetry drawer

pulls and handles to make kitchens and

bathrooms feel updated.

Shop for decorative accessories at flea

markets, garage sales and second-hand

stores, looking for art work, vases, baskets,

rugs, mirrors, pillows and any other items

you need to stage the home.

Pull furniture away from the walls and

reposition chairs, sofas and coffee tables to

create a conversation area.

Group accessories in threes

Most staged homes have floral

arrangements – keep within your budget by

cutting attractive branches from trees in

your yard

For more staging-on-the-cheap ideas surf

the Internet. Sites like HGTV’s “Get it Sold,”

or “Designed to Sell,” and Better Homes &

Gardens offer some great tips.

http://www.hgtv.com/get-it-sold/show/index.html

http://www.hgtv.com/decorating-basics/12-simple-home-staging-tips/pictures/index.html




Appendix v: The Purchase Agreement

On the following five pages you'll find a

reasonable facsimile of the purchase agreement you

will receive when we receive an offer on your home.


ER 170-1 (8/11)

PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS®,

which disclaims any liability arising out of use or misuse of this form.

© 2011 Minnesota Association of REALTORS®, Edina, MN

1. Date_______________

2. Page 1 of __________

3. RECEIVED OF ____________________________________

4. _________________________________________________

5. the sum of Dollars ($) _______________________________

6. by □CHECK □CASH □NOTE as earnest money to be

deposited upon Final Acceptance of Purchase

------------(Check one.)------------------------

7. Agreement by all parties, on or before the third Business

Day after Final Acceptance, in the trust account of listing

8. broker, unless otherwise agreed to in writing, but to be

returned to Buyer if Purchase

9. Agreement is not accepted by Seller.

10. Said earnest money is part payment for the purchase of the

property located at

11. Street Address: ___________________________________

12. City of ___________________________________________ ,

County of __________________________________________ ,

13. State of Minnesota, legally described as _______________

___________________________________________________

14. ________________________________________________

15. ________________________________________________

16. ________________________________________________

17. including all fixtures on the following property, if any, owned

by Seller and used and located on said property,


18. including but not limited to garden bulbs, plants, shrubs and

trees; storm sash, storm doors, screens and awnings;

19. window shades, blinds, traverse and curtain and drapery

rods; attached lighting fixtures and bulbs; plumbing

20. fixtures, water heater, heating plants (with any burners, non-

fuel tanks, stokers and other equipment used in connection

21. therewith), built-in air-conditioning equipment, electronic air

filter, water softener □OWNED □RENTED □NONE,

-------------------------(Check one.)-------------------------

22. built-in humidifier and dehumidifier, liquid fuel tank(s)

□OWNED □RENTED □NONE and

--------------------------(Check one.)-------------------------------

controls

23. (if the property of Seller), sump pump; attached television

antenna, cable TV jacks and wiring; BUILT-INS: dishwashers,

24. garbage disposals, trash compactors, ovens, cook-top

stoves, microwave ovens, hood fans, intercoms;

25. ATTACHED: carpeting; mirrors; garage door openers and all

controls; smoke detectors; fireplace screens, doors and

26. heatilators; AND the following personal property:

27. ________________________________________________

28. ________________________________________________

29. ________________________________________________

30. all of which property Seller has this day agreed to sell to

Buyer for sum of ($ ) ____________

31. Dollars,

32. which Buyer agrees to pay in the following manner:

33. 1. Cash of ___percent (%) of the sale price, or more in

Buyer’s sole discretion, which includes the earnest

34. money; PLUS

35. 2. Financing of ____percent (%) of the sale price, which will

be the total amount secured against this property

36. to fund this purchase.


37. Such financing shall be (check one)

□a first mortgage; □a contract for deed; or □a first

38. mortgage with subordinate financing, as described in the

attached Addendum:

39. □Conventional □FHA □DVA □Assumption

□Contract for Deed □Other:________.

--------------------------------(Check one.)------------------------ --------------------------

40. The date of closing shall be ___________ , 20___ .


MN:PA-1 (8/11)

ER 170-2 (8/11)

PURCHASE AGREEMENT

41. Page 2 Date _____________

42. Property located at ________________________________

43. This Purchase Agreement □IS □IS NOT subject to a

-------------------------------------------------------------(Check one.)---------------------------------------------

Contingency Addendum for sale of Buyer’s property.

44. (If answer is IS, see attached Addendum.)

45. (If answer is IS NOT, the closing of Buyer’s property, if any,

may still affect Buyer’s ability to obtain financing, if financing

46. is applicable.)

47. This Purchase Agreement □IS IS□ NOT subject to

------------------------------------------------------------(Check one.)----------------------------------------------

cancellation of a previously written purchase agreement

48. dated__________________ , 20____ .

49. (If answer is IS, said cancellation shall be obtained no later

than_______________ , 20___. If

50. said cancellation is not obtained by said date, this Purchase

Agreement is canceled. Buyer and Seller shall immediately

51. sign a Cancellation of Purchase Agreement confirming said

cancellation and directing all earnest money paid

52. hereunder to be refunded to Buyer.)

53. Buyer has been made aware of the availability of property

inspections. Buyer

□Elects □Declines to have a

-------------(Check one.)-------------

54. property inspection performed at Buyer’s expense.

55. This Purchase Agreement □IS □IS NOT subject to an

Inspection Contingency Addendum. -------(Check one.)-------

56. (If answer is IS, see attached Addendum.)


57. DEED/MARKETABLE TITLE: Upon performance by Buyer,

Seller shall deliver a

58. □Warranty Deed or □Other:______________ Deed

joined in by spouse, if any, conveying ------------------(Check one.)----------------

59. marketable title, subject to

60. (a) building and zoning laws, ordinances, and state and

federal regulations;

61. (b) restrictions relating to use or improvement of the property

without effective forfeiture provisions;

62. (c) reservation of any mineral rights by the State of

Minnesota;

63. (d) utility and drainage easements which do not interfere with

existing improvements;

64. (e) rights of tenants as follows (unless specified, not

subject to tenancies):________

65.________________________________________________;

and

66. (f) others (must be specified in writing): ________________

67. ________________________________________________

68. Seller shall pay on the date of closing all real estate taxes

due and payable in all prior years including all penalties and

69. interest.

70. □BUYER SHALL PAY □SELLER SHALL PAY on date of

------------------------------------(Check one.)-----------------------------------------

closing any deferred real estate

71. taxes (e.g., Green Acres) or special assessments, payment

of which is required as a result of the closing of this sale.

72. □BUYER AND SELLER SHALL PRORATE AS OF THE

DATE OF CLOSING □SELLER SHALL PAY ON

-------------------------------------------------------------- (Check one.)------------------------------------------

73. DATE OF CLOSING all installments of special assessments

certified for payment, with the


74. real estate taxes due and payable in the year of closing.

75. □BUYER SHALL ASSUME □SELLER SHALL PAY on

date of closing all other special -------------------------------------------(Check one.)----------------------------------------------

76. assessments levied as of the date of this Purchase

Agreement.

77. □BUYER SHALL ASSUME □SELLER SHALL PROVIDE

FOR PAYMENT OF special ------------------------(Check one.)--------------------

78. assessments pending as of the date of this Purchase

Agreement for improvements that have been ordered by any

assessing authorities. (Seller’s

79. provision for payment shall be by payment into escrow of two

(2) times the estimated amount of the assessments or

80. less, as required by Buyer’s lender.)


PURCHASE AGREEMENT 81. Page 3 Date_______________

82. Property located at ________________________________

83. Buyer shall pay any unpaid special assessments payable in

the year following closing and thereafter, the payment of

84. which is not otherwise herein provided.

85. As of the date of this Purchase Agreement, Seller represents

that Seller □HAS □HAS NOT

------------(Check one.)------------

86. received a notice regarding any new improvement project

from any assessing authorities, the costs of which project may

be assessed

87. against the property. Any such notice received by Seller after

the date of this Purchase Agreement and before closing

88. shall be provided to Buyer immediately. If such notice is

issued after the date of this Purchase Agreement and on

89. or before the date of closing, then the parties may agree in

writing, on or before the date of closing, to pay, provide

90. for the payment of or assume the special assessments. In

the absence of such agreement, either party may declare

91. this Purchase Agreement canceled by written notice to the

other party, or licensee representing or assisting the other

92. party, in which case this Purchase Agreement is canceled. If

either party declares this Purchase Agreement canceled,

93. Buyer and Seller shall immediately sign a Cancellation of

Purchase Agreement confirming said cancellation and

94. directing all earnest money paid hereunder to be refunded to

Buyer.

95. Buyer shall pay □PRORATED FROM DAY OF CLOSING

□12ths OF □ALL □NO real

---------------------------(Check one.)-----------------------------------------

96. estate taxes due and payable in the year 20____ .


97. Seller shall pay □PRORATED TO DAY OF CLOSING

□12ths OF □ALL □NO real

-------------------------(Check one.)-------------------------------------------------------------------

estate taxes due and

98. payable in the year 20_____ . If the closing date is changed,

the real estate taxes paid shall, if prorated, be adjusted

99. to the new closing date. Seller warrants taxes due and

payable in the year 20 shall be □FULL- □PART- □NON-

--------------------------------------------------------------------------(Check one.)------------------

100. homestead classification.

101. If part- or non-homestead classification is checked,

Seller agrees to pay Buyer at closing

$__________________________________

102. toward the non-homestead real estate taxes. Buyer agrees

to pay any remaining balance of non-homestead taxes

103. when they become due and payable. Buyer shall pay real

estate taxes due and payable in the year following closing

104. and thereafter, the payment of which is not otherwise herein

provided. No representations are made concerning the

105. amount of subsequent real estate taxes.

106. POSSESSION: Seller shall deliver possession of the

property no later than___________ after closing.

107. Seller agrees to remove ALL DEBRIS AND ALL

PERSONAL PROPERTY NOT INCLUDED HEREIN from the

property

108. by possession date.

109. PRORATIONS: All interest; unit owners’ association dues;

rents; and charges for city water, city sewer, electricity and

110. natural gas shall be prorated between the parties as of date

of closing. Buyer shall pay Seller for remaining gallons of

111. fuel oil or liquid petroleum gas on the day of closing, at the

rate of the last fill by Seller.

112. TITLE AND EXAMINATION: As quickly as reasonably

possible after Final Acceptance of this Purchase Agreement:


113. (a) Seller shall surrender any abstract of title and a copy of

any owner’s title insurance policy for the property, if

114. in Seller’s possession or control, to Buyer or Buyer’s

designated title service provider; and

115. (b) Buyer shall obtain the title services determined

necessary or desirable by Buyer or Buyer’s lender, including

116. but not limited to title searches, title examinations,

abstracting, a title insurance commitment or an attorney’s

117. title opinion at Buyer’s selection and cost and provide a

copy to Seller.

118. Seller shall use Seller’s best efforts to provide marketable

title by the date of closing. Seller agrees to pay all costs

119. and fees necessary to convey marketable title including

obtaining and recording all required documents, subject to the

120. following:

121. In the event Seller has not provided marketable title by the

date of closing, Seller shall have an additional 30 days to

122. make title marketable, or in the alternative, Buyer may

waive title defects by written notice to Seller. In addition to

123. the 30-day extension, Buyer and Seller may, by mutual

agreement, further extend the closing date. Lacking such

124. extension, either party may declare this Purchase

Agreement canceled by written notice to the other party, or

125. licensee representing or assisting the other party, in which

case this Purchase Agreement is canceled. If either

126. party declares this Purchase Agreement canceled, Buyer

and Seller shall immediately sign a Cancellation of

127. Purchase Agreement confirming said cancellation and

directing all earnest money paid hereunder to be refunded

128. to Buyer.


PURCHASE AGREEMENT 129. Page 4 Date______________

130. Property located at _______________________________

131. SUBDIVISION OF LAND: If this sale constitutes or requires

a subdivision of land owned by Seller, Seller shall pay

132. all subdivision expenses and obtain all necessary

governmental approvals. Seller warrants that the legal

description

133. of the real property to be conveyed has been or shall be

approved for recording as of the date of closing. Seller warrants

134. that the buildings are or shall be constructed entirely within

the boundary lines of the property. Seller warrants that

135. there is a right of access to the property from a public right-

of-way. These warranties shall survive the delivery of the

136. deed or contract for deed.

137. MECHANIC’S LIENS: Seller warrants that prior to the

closing, payment in full will have been made for all labor,

materials,

138. machinery, fixtures or tools furnished within the 120 days

immediately preceding the closing in connection with

139. construction, alteration or repair of any structure on, or

improvement to, the property.

140. NOTICES: Seller warrants that Seller has not received any

notice from any governmental authority as to condemnation

141. proceedings, or violation of any law, ordinance or

regulation. If the property is subject to restrictive covenants,

Seller

142. warrants that Seller has not received any notice from any

person or authority as to a breach of the covenants. Any

143. such notices received by Seller shall be provided to Buyer

immediately.

144. DIMENSIONS: Buyer acknowledges any dimensions,

square footage or acreage of land or improvements provided

145. by Seller or broker may be approximate. Some information

may have been provided by third parties and information

146. may be reliable but not guaranteed. Buyer shall verify the

accuracy of information to Buyer’s satisfaction, if material,


147. at Buyer’s sole cost and expense.

148. ACCESS: Seller agrees to allow reasonable access to the

property for performance of any surveys or inspections

149. agreed to herein.

150. RISK OF LOSS: If there is any loss or damage to the

property between the date hereof and the date of closing for any

151. reason, including fire, vandalism, flood, earthquake or act of

God, the risk of loss shall be on Seller. If the property

152. is destroyed or substantially damaged before the closing

date, this Purchase Agreement is canceled, at Buyer’s option,

153. by written notice to Seller or licensee representing or

assisting Seller. If Buyer cancels this Purchase Agreement,

154. Buyer and Seller shall immediately sign a Cancellation of

Purchase Agreement confirming said cancellation and

155. directing all earnest money paid hereunder to be refunded

to Buyer.

156. TIME OF ESSENCE: Time is of the essence in this

Purchase Agreement.

157. ENTIRE AGREEMENT: This Purchase Agreement, any

attached exhibits and any addenda or amendments signed

158. by the parties shall constitute the entire agreement between

Seller and Buyer and supersedes any other written or

159. oral agreements between Seller and Buyer. This Purchase

Agreement can be modified or canceled only in writing

160. signed by Seller and Buyer or by operation of law. The

parties agree the electronic signature of any party on any

document

161. related to this transaction constitute valid, binding

signatures. All monetary sums are deemed to be United States

162. currency for purposes of this Purchase Agreement. Buyer

or Seller may be required to pay certain closing costs, which

163. may effectively increase the cash outlay at closing or

reduce the proceeds from the sale.

164. FINAL ACCEPTANCE: To be binding, this Purchase

Agreement must be fully executed by both parties and a copy

165. must be delivered.


166. CALCULATION OF DAYS: Any calculation of days begins

on the first day (calendar or Business Days as specified)

167. following the occurrence of the event specified and includes

subsequent days (calendar or Business Days as specified)

168. ending at 11:59 P.M. on the last day.

169. BUSINESS DAYS: “Business Days” are days which are not

Saturdays, Sundays or state or federal holidays unless

170. stated elsewhere by the parties in writing.

171. DEFAULT: If Buyer defaults in any of the agreements

hereunder, Seller may terminate this Purchase Agreement

172. under the provisions of MN Statute 559.21. If either Buyer

or Seller defaults in any of the agreements hereunder or

173. there exists an unfulfilled condition after the date specified

for fulfillment, either party may cancel this Purchase

174. Agreement under MN Statute 559.217, Subd. 3. Whenever

it is provided herein that this Purchase Agreement is

175. canceled, said language shall be deemed a provision

authorizing a Declaratory Cancellation under MN Statute

559.217,

176. Subd. 4.

177. If this Purchase Agreement is not canceled or terminated as

provided hereunder, Buyer or Seller may seek actual

178. damages for breach of this Purchase Agreement or specific

performance of this Purchase Agreement; and, as to

179. specific performance, such action must be commenced

within six (6) months after such right of action arises. MN:PA-4 (8/11)

ER 170-5 (8/11)


PURCHASE AGREEMENT 180. Page 5 Date

181. Property located at . ______________________________

182. NOTICE REGARDING PREDATORY OFFENDER

INFORMATION: Information regarding the predatory

offender

183. registry and persons registered with the predatory

offender registry under MN Statute 243.166 may be obtained

184. by contacting the local law enforcement offices in the

community where the property is located or the Minnesota

185. Department of Corrections at (651) 361-7200, or from

the Department of Corrections web site at

186. www.corr.state.mn.us.

187. HOME PROTECTION/WARRANTY PLAN: Buyer and

Seller are advised to investigate the various home protection/

188. warranty plans available for purchase. Different home

protection/warranty plans have different coverage options,

189. exclusions, limitations and service fees. Most plans exclude

pre-existing conditions. (Check one.)

190. □A Home Protection/Warranty Plan will be obtained and

paid by □BUYER □SELLER to

---------------(Check one.)---------------

191. be issued by at a cost not to exceed

$___________________________________________ .

192. □There will be no Home Protection/Warranty Plan as part

of this Agreement.

193. ENVIRONMENTAL CONCERNS: To the best of Seller’s

knowledge, there are no hazardous substances or underground

194. storage tanks except herein noted: ___________________

195. _______________________________________________

196. _______________________________________________

197. _______________________________________________

198. _______________________________________________


199. _______________________________________________

200. (Check appropriate boxes.)

201. SELLER WARRANTS THAT THE PROPERTY IS EITHER

DIRECTLY OR INDIRECTLY CONNECTED TO:

202. CITY SEWER □YES □NO / CITY WATER □YES □NO

203. SUBSURFACE SEWAGE TREATMENT SYSTEM

204. SELLER CERTIFIES THAT SELLER □DOES □DOES

NOT KNOW OF A SUBSURFACE --------------(Check one.)---------------

SEWAGE TREATMENT

205. SYSTEM ON OR SERVING THE PROPERTY. (If answer is

DOES, and the system does not require a state permit,

206. see Subsurface Sewage Treatment System Disclosure

Statement.)

207. PRIVATE WELL

208. SELLER CERTIFIES THAT SELLER □DOES □DOES

NOT KNOW OF A WELL ON OR --- --------------(Check one)-----------------

SERVING THE

209. PROPERTY. (If answer is DOES and well is located on the

property, see Well Disclosure Statement.)

210. THIS PURCHASE AGREEMENT □IS □IS NOT

SUBJECT TO A SUBSURFACE ---------(Check one.)----------

SEWAGE TREATMENT SYSTEM

211. AND WELL INSPECTION CONTINGENCY ADDENDUM.

(If answer is IS, see attached Addendum.)

212. IF A WELL OR SUBSURFACE SEWAGE TREATMENT

SYSTEM EXISTS ON THE PROPERTY, BUYER HAS

213. RECEIVED A WELL DISCLOSURE STATEMENT

AND/OR A SUBSURFACE SEWAGE TREATMENT SYSTEM

214. DISCLOSURE STATEMENT.



216. Property located at .

217. SELLER WARRANTS THAT CENTRAL AIR-

CONDITIONING, HEATING, PLUMBING AND WIRING

SYSTEMS USED

218. AND LOCATED ON SAID PROPERTY SHALL BE IN

WORKING ORDER ON DATE OF CLOSING, EXCEPT AS

219. NOTED IN THIS PURCHASE AGREEMENT.

220. BUYER HAS THE RIGHT TO A WALK-THROUGH

REVIEW OF THE PROPERTY PRIOR TO CLOSING TO

221. ESTABLISH THAT THE PROPERTY IS IN

SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE

OF

222. THIS PURCHASE AGREEMENT.

223. BUYER HAS HAS NOT RECEIVED A SELLER’S

PROPERTY DISCLOSURE STATEMENT OR A ----------------(Check one.)----------------

224. SELLER’S DISCLOSURE ALTERNATIVES FORM.

225. BUYER HAS RECEIVED THE INSPECTION REPORTS, IF

REQUIRED BY MUNICIPALITY.

226. SELLER AGREES TO NOTIFY BUYER IMMEDIATELY IN

WRITING OF ANY SUBSTANTIVE CHANGES FROM

227. ANY PRIOR REPRESENTATIONS REGARDING THE

PROPERTY.

228. BUYER ACKNOWLEDGES THAT NO ORAL

REPRESENTATIONS HAVE BEEN MADE REGARDING

POSSIBLE

229. PROBLEMS OF WATER IN BASEMENT OR DAMAGE

CAUSED BY WATER ICE OR ICE BUILDUP ON ROOF OF

230. THE PROPERTY.

231. NOTICE

232. is Seller’s Agent Buyer’s Agent Dual Agent Facilitator. (Licensee) ------------------------------------------------------(Check one.)-------------------------------------

233. _______________________________________________ (Real Estate Company Name)

234. is Seller’s Agent Buyer’s Agent Dual Agent Facilitator. (Licensee) --------------------------------------------(Check one.)-----------------------------------------------


235. _______________________________________________ (Real Estate Company Name)

236. THIS NOTICE DOES NOT SATISFY MINNESOTA

STATUTORY AGENCY DISCLOSURE REQUIREMENTS.

237. DUAL AGENCY REPRESENTATION

238. PLEASE CHECK ONE OF THE FOLLOWING

SELECTIONS:

239. Dual Agency representation DOES NOT apply in this

transaction. Do not complete lines 240–256.

240. Dual Agency representation DOES apply in this transaction.

Complete the disclosure in lines 241–256.

241. Broker represents both the Seller(s) and the Buyer(s) of the

property involved in this transaction, which creates a

242. dual agency. This means that Broker and its salespersons

owe fiduciary duties to both Seller(s) and Buyer(s). Because

243. the parties may have conflicting interests, Broker and its

salespersons are prohibited from advocating exclusively for

244. either party. Broker cannot act as a dual agent in this

transaction without the consent of both Seller(s) and Buyer(s).

245. Seller(s) and Buyer(s) acknowledge that

246. (1) confidential information communicated to Broker which

regards price, terms, or motivation to buy or sell will

247. remain confidential unless Seller(s) or Buyer(s) instructs

Broker in writing to disclose this information. Other

248. information will be shared;

249. (2) Broker and its salespersons will not represent the

interest of either party to the detriment of the other; and

250. (3) within the limits of dual agency, Broker and its

salespersons will work diligently to facilitate the mechanics of

251. the sale.

252. With the knowledge and understanding of the explanation

above, Seller(s) and Buyer(s) authorize and instruct Broker

253. and its salesperson to act as dual agents in this transaction.

254. Seller Buyer

255. Seller Buyer

256. Date Date


MN:PA-6 (8/11)

ER 170-7 (8/11)


258. Property located at . ______________________________

259. OTHER:

260.

261.

262. ADDENDA AND PAGE NUMBERING: Attached addenda

are a part of this Purchase Agreement.

263. Enter total number of pages of this Purchase

Agreement, including addenda, on line two (2) of page one

(1).

264. I, the owner of the property, accept this Purchase I agree to

purchase the property for the price and on

265. Agreement and authorize the listing broker to withdraw the

terms and conditions set forth above

266. said property from the market, unless instructed I have

reviewed all pages of this Purchase

267. otherwise in writing. Agreement.

268. I have reviewed all pages of this Purchase Agreement.

269. If checked, this Purchase Agreement is subject to

270. attached Counteroffer Addendum.

271. X X (Seller’s Signature) (Date) (Buyer’s Signature) (Date)

272. X X (Seller’s Printed Name) (Buyer’s Printed Name)

273. X X (Marital Status) (Marital Status)

274. X X (Seller’s Signature) (Date) (Buyer’s Signature) (Date)

275. X X (Seller’s Printed Name) (Buyer’s Printed Name)

276. X X (Marital Status) (Marital Status)

277. FINAL ACCEPTANCE DATE: The date on which the fully

executed Purchase Agreement is delivered.

278.


279. THIS IS A LEGALLY BINDING CONTRACT BETWEEN

BUYER(S) AND SELLER(S).

280. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN

APPROPRIATE PROFESSIONAL.

281. I ACKNOWLEDGE THAT I HAVE RECEIVED AND HAVE

HAD THE OPPORTUNITY TO REVIEW THE ARBITRATION

282. DISCLOSURE AND RESIDENTIAL REAL PROPERTY

ARBITRATION AGREEMENT, WHICH IS AN OPTIONAL,

283. VOLUNTARY AGREEMENT AND IS NOT PART OF THIS

PURCHASE AGREEMENT.

284. SELLER(S) BUYER(S)

285. SELLER(S) BUYER(S) MN:PA-7 (8/11)


Glossary

Addendum – Any time a change is made in the

original purchase contract the party that makes the

change must submit an addendum to the other party.

Some of the changes that may be made include an

extension of the closing date, additional time for

inspections or changes in the purchase price to reflect

the seller's payment for repairs.

Appraisal – The buyer's lender will have the

house appraised by a professional appraiser to

determine its current market value. This ensures the

lender that it is lending the appropriate amount of

money for the home.

Certificate of title: This document ensures that

the seller legally owns the property being sold and

that no other party has claims against it.

CMA (Comparative Market Analysis) – A CMA

is the determination of the home's value by a real

estate agent and is used to determine a fair asking

price. It is similar to the appraisal but does not take

the place of it.

Contingency – When certain conditions must be

met before the buyer is locked into the contract the

buyer's agent will insert these conditions into the

contract. Common contingencies include those for the

sale of the buyer's home, the successful procurement

of financing at certain terms and inspections.

Contingency Release -- When the contingency

requirements are met, both parties to the transaction


will be asked to sign a contingency release form to

acknowledge that fact.

Counter Offer – If you are not in agreement with

the price or terms of the buyer's offer we'll file a form

known as a counter offer, eliminating or changing the

parts of the offer to which you don't agree.

Disclosures – Full disclosure is the seller's most

important duty. Not only is it required by law, but it

protects you as well as the seller.

Earnest Money Deposit – When the buyer

submits an offer to purchase she will also submit a

cashier's check to be set aside as "earnest money."

The amount of money varies, but it is generally 1

percent of the purchase price. The deposit is typically

held either in the listing broker’s trust account or with

the title company until the close of escrow when it will

be applied to the purchase of the home.

Escrow – Escrow is a process that ensures the

purchase funds are distributed and the transfer of the

house is completed. It is overseen by an escrow

company, which is a neutral third party.

Escrow Impounds – Escrow impounds include

pre-paid taxes and insurance. The impounded funds

provide insurance to the lender that taxes and

insurance payments will be made. The lender can

request no more than two months payments.

Final Walk-Through – Although it sounds like

something a man on his way to death row might do,

the final walk-through is performed by the buyer. He

has one last chance to view the house to ensure that

it is in the same condition as when he agreed to


purchase it.

HUD-1 -- Sometimes called the settlement

statement, the HUD-1 is an itemized list of all fees

that the lender is charging.

Title Insurance – An insurance policy that

protects against damages due to defects in the chain

of title.





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A HO

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