buyer orientation for team kipp
TRANSCRIPT
BUYER ORIENTATION
MEET THE TEAM
DAVID KIPP 615.400.0661
ANOTHER PERSONAL SERVICE BY
SHARON KIPP 615.364.2337
!
www.TeamKipp.com Brokers, ABR, CRS, GRI, e-Pro, GREEN, SFR
HOME SEARCH INFORMATIONPLEASE COMPLETE THIS FORM AND RETURN TO US
What things are most important to you in a home? Are schools important? Yes [ ] No [ ] If yes, which ones and why: Where do you want to live? What style home do you prefer? When do you want to move in? How many bedrooms? How many baths? How many living areas? What size garage? Where do you work? When is the best time to look at homes? If we found the right home for you today, would there be anything that could keep you from buying it? Does anyone else have to approve of your purchase? Summary: ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
BUYER ORIENTATIONBUYER’S SERVICE
Before you attempt to buy Real Estate, you should engage a qualified professional Realtor to protect your interests. As Accredited Buyer Representative, David and Sharon have demonstrated that they have the knowledge and experience to protect your best
interests. We also believe these attributes are important:
• Strong Negotiating and Communication Skills • Respect of Fellow REALTORS • Advanced REALTOR Designations • Proven Track Record
• Integrity • Good Old-fashioned Work Ethic • Good Listening Skills • Ability to Provide References
We would be happy to answer any questions you might have about our abilities.
BUYER ORIENTATIONTENNESSEE STATE DISCLOSURE
ç
Tennessee license law requires that every real estate licensee disclose the party whom he/she is representing in a prospective real estate transaction. A Buyer’s Agent represents the
prospective Buyer, owes primary loyalty to the Buyer, and works as an advocate for the best interests of the Buyer. Legally, an agency relationship of this type can not be established
without a written Buyer Agency Agreement. !
The agency agreement authorizes the Buyer Agent to negotiate for a fee paid by the Seller and/or Seller’s agent. Therefore, a Buyer can be represented by a Buyer’s Agent, who will look
out for the Buyer’s best interest at no charge to the Buyer.
BUYER ORIENTATIONBUYER’S SERVICES
Following is an example of services offered to Buyers with whom we have a signed Buyer’s Agency Agreement: !
•Discuss the Laws of Agency. •Consult with you about your housing needs and criteria. •Respond honestly and accurately to all your questions. •Send you a relocation package if requested. •Guide you through the pre-qualification or pre-approval process. •Research the available properties that meet your needs. •Add you to our Buyer Instant Notification Program - We will email or fax you the newest listings that match your criteria. •Provide you with information on listings so that you may drive by before scheduling an appointment, if you wish. •Show you all the available homes that meet your criteria - listed by any broker, for sale by owner, builder/new construction, or even properties not currently listed. •Discuss with you the strengths and weaknesses of a property that may affect its value and future resale. •Review any property disclosure and inspection reports and disclose to you all physical defects of the property that are known to us. !
BUYER ORIENTATIONBUYER’S SERVICES
•Explain the benefits of a Home Warranty. •Recommend and attend appropriate inspections for the property. •Advise you on pricing and terms to offer for a property based on a CMA. •Discuss and prepare an offer for the property you choose to purchase. •Present the offer to the seller and/or seller’s agent promptly. •Negotiate price and terms of any offer and/or counter offers on your behalf •Provide you with information on Inspectors, Mortgage Brokers, Home Warranty Companies, Contractors and Insurance Brokers. •Accompany you on a final walk-through of the property before closing, and assist in dealing with any problems remaining or discovered during the walk-through. •Monitor and inform you of the progress of the contract to purchase, including satisfaction of all contingencies and conditions during the entire transaction. •Assist in selecting a closing attorney and keep you informed of the closing process. •Coordinate utility transfers with seller and/or seller’s agent. •Review closing statement to insure accuracy according to the contract. •Attend the closing and help explain the details. •Maintain strict confidentiality in every aspect of the transaction. •Keep in touch long after the closing.
BUYER ORIENTATIONPEOPLE BUY HOMES TO:
TAX ADVANTAGES INVESTMENT POTENTIAL Property taxesand qualified
home interest are deductible on Schedule A, for itemized
deductions.
The largest investment for most people is their home. In the long run, investments
in homes far outpace inflation. Homeowners build equity and, in most
states, can borrow against it.
BUYER ORIENTATIONTAX BENEFITS
A homeowner can exclude up to $500,000 of capital gain if married, filing jointly or up to $250,000 if single or filing separately. The home must have been the taxpayer’s principal
residence for the previous two years. !
There is no longer an age requirement for taking the capital gains exclusion.
!
Beginning with May 07, 1997, there is no requirement to purchase another home more expensive than the one sold. Homeowners are free to buy up or down with no tax consequences assuming
their gain is less than the allowable amounts.
BUYER ORIENTATION7 REASONS TO BUY A HOME
ç
Tax Deductibility of Mortgage Interest !
Tax Deductibility of Property Taxes !
Appreciation Potential !
Capital Gain Treatment !
Capital Gains Exclusion !
Principal Accumulation !
You can enjoy it - Pride
BUYER ORIENTATIONHOME BUYING PROCESS
PART ONE 1. Initial Interview 2. Show Property 3. Offer Received 4. Negotiate Offer 5. Contract 6. Contract Accepted 7. Earnest Money
PART TWO 1. Mortgage Company 2. Credit Report 3. Under-writing 4. Loan Approval 5. Title Company 6. Title Search 7. Assemble Papers 8. Settlement 9. Possession
BUYER ORIENTATIONWHO PAYS COMMISSION?
The Seller Does • The Seller has generally signed a listing agreement with his agent specifying a certain fee to be paid,
and many times it has provisions for splitting that fee with the agent who sells the property, regardless of subagency or buyer agency.
!
The Buyer Does • The Buyer can pay his agent a commission as set out in their written agreement. If this is the case, it
would be inappropriate for the buyer’s agent to accept any portion of the fee paid by the seller. !
Each Party Pays Their Agent • Each party pays their agent as specified in their written agreement.
BUYER ORIENTATIONMLS MEMBER
!
As a member of the Multiple Listing Service, we can show you any property. !
!
If you should see an ad in the paper or a sign in a yard, call us to find out the information. If you want to see it, we’ll show it to you.
BUYER ORIENTATIONFOR SALE BY OWNER
ç
A homeowner trying to sell his home himself is usually doing so in hopes of saving the commission. Coincidentally, this is the
reason a buyer wants to deal directly with a homeowner. !
Many times a homeowner will work with an agent, even though his home is not listed, if the agent introduces the buyer to the property.
!
If you should see a FSBO and want the advantages of my services, please let me contact the owner and set the appointment.
BUYER ORIENTATIONNEW CONSTRUCTION
ç
!
We can work with most builders and can get all the information you need to make any decisions, but we will
need to accompany you to the property on the initial visit. !
By letting us help you with builders, you get all the services offered in this presentation and those offered by
the builder as well. !
You’ll get more, but you won’t pay more for it. !
BUYER ORIENTATIONPRE-APPROVAL PROGRAM
Many buyers are applying for a loan and obtaining approval before they find the home they want to buy. !
!
Here are the benefits: !
You look at the “right” homes. !
You save money dealing with a comfortable seller. !
You close more quickly. !
You minimize trauma of not knowing whether or not you qualify.
!!!!What Can You Afford?!
In addition to having the cash for the down payment, closing costs and good credit history, the mortgage lender will want your house payment and other debts to conform to accepted qualifying ratios. While 28%/36% are the most common, some loan ratios differ.!
! Column A! ! Column B!Annual income before taxes (gross):! ! $! ! ! ! !Divide by number of months:! ! ! ! ! ; 12!Monthly gross income:! ! ! ! ! ! ! = ! ! = ! ! ! !Many lenders will not allow you to spend!
more than 28% of your monthly gross income!on housing expense: (column B)! ! ! ! ! ! ! ! ! x .28!
Maximum monthly housing expense allowance (column B)! ! ! ! ! =! !! !Many lenders allow 36% of monthly gross income for!
long-term debt:! ! ! ! ! ! ! ! x .36!Long-term monthly expense allowance:! ! ! ! ! =! ! !Figure out your monthly long-term!
obligations below, and subtract it from the allowance:!! child support! $! !! auto loan! +! !! credit cards ! +! !! association fees ! +! !! other! +! !! total long-term obligations: ! =! !Monthly housing expense allowance:! ! ! ! ! =! ! !! !!Record the smaller figure in Column A or B:! ! ! ! ! $! ! !Estimating about 20% for taxes and insurance, leaving!
80% for payment of mortgage (principal & interest):! ! ! ! x .80!Allowable monthly principal & interest expense:! ! ! ! +! ! !Divide by MONTHLY PAYMENT PER THOUSAND DOLLARS from table! ! :! ! !!! ! ! ! ! ! ! ! ! ! =! ! !Multiply by 1000:! ! ! ! ! ! ! ! x 1000!Estimated Affordable Mortgage Amount! ! ! ! ! $! ! !!Rate15 yr.30 yr.Rate15 yr.30 yr.Rate15 yr30 yrRate15 yr30 yr.6.0%8.446.007.75%9.417.169.5%10.448.4111.25%11.539.726.25%8.586.168.00%9.567.349.75%10.608.6011.5%11.699.916.5%8.726.338.25%9.707.5110.0%10.758.7811.75%11.8510.106.75%8.856.498.5%9.857.6910.25%10.918.9712.0%12.0110.297.0%8.996.658.75%9.997.8710.5%11.069.1512.25%12.1710.48! !!!
BUYER ORIENTATIONITEMS NEEDED FOR CREDIT APPLICATION
Employment Addresses for two full years Gross monthly income W-2s, if available Proof of pensions, retirement, disability or Social Security Proof of income from rentals, investments, etc. Proof of child support or alimony paid/received Year to date pay stub
!If self-employed:
Two years 1040 Tax Returns Current year profit and loss statement
!Creditors
Each creditor’s name, address and type of account Account numbers Monthly payments and approximate balances Amount of child care expenses
Banking Names and addresses of saving institutions Account numbers for all accounts Type of accounts and present balances
!Miscellaneous
List of assets in stocks, bonds, land Life insurance cash value (documented if used as cash down payment) If applicant is selling a home, a copy of sales contracts Social Security numbers for all parties Veterans - Certificate of Eligibility & DD-214 Cash or check to pay for application fee
!REALTORS® Copy of sales agreement
BUYER ORIENTATIONPROFESSIONALS YOU’LL NEED
!
Professionals in the categories listed will be needed in the buying process. The following names have been offered because they have been found to be reputable and very competent. Of course, feel free to consult friends or the Yellow Pages for additional suggestions.
Mortgage Lenders
George Margrave Mortgage Investors Group Office: 615.777.4663 Toll Free: 888.836.1935 E: [email protected]
Mary Smith Pinnacle Bank Office: 615.690.4065 Mobile: 615.743.4065 E: [email protected]
Jamie Herron First Tennessee Bank Office: 615.871.1114 Mobile/Text: 615.479.5464 E: [email protected]
Todd Wiggins First Community Mortgage, Inc. Office: 615.620.4705 Mobile: 615.938.7499 E: [email protected]
Shank Kothare‘ State Farm Bank Office: 615.885.8980 Mobile: 615.885.8980 E: [email protected]
Tonya Esquibel Summit Funding, Inc. Office: 615.300.0794 Mobile: 615.308.9859 E: [email protected]
BUYER ORIENTATIONPROFESSIONALS YOU’LL NEED
!
Professionals in the categories listed will be needed in the buying process. The following names have been offered because they have been found to be reputable and very competent. Of course, feel free to consult friends or the
Yellow Pages for additional suggestions.
Insurance Companies
Elaine Payne Allstate Office: 615.338.0018 Fax: 615.822.9419 E: [email protected]
Chase Salas Liberty Mutual Insurance Office: 615.896.5339 Fax: 615.896.7013 E: [email protected]
Steve Williams Elite Insurance Services Office: 615.850.4222 Fax: 615.661.4115
Shank Kothare` State Farm Insurance Office: 615.885.8980 Mobile: 615.885.8980 E: [email protected]
BUYER ORIENTATIONPROPERTY INSPECTION
ç
You can include a provision in the sales contract that gives you the right to inspect the mechanical, electrical, plumbing and structural
portions of the property. !
There are inspection companies that provide services of this type. You can accompany the inspector to ask questions and receive a
written report itemizing any areas of concern. !
If repairs are needed, you can request the seller to make them in accordance with the provisions of the sales contract.
BUYER ORIENTATIONHOME INSPECTORS
This list of Home Inspectors is provided as a courtesy. We do not personally recommend any particular Home Inspector. Our previous clients compiled this list of recommendations. Also feel
free to ask for recommendations from your friends and/or co-workers or consult the Yellow Pages.
Steve Dukic Old Hickory Homes Inspec. 615-804-4663
Steve Traylor A+ Home Inspections 615-791-7433
Jeremy Martin All-Pro Home Inspections 615-337-1277
Houston Pewett Nashville Property Consultants 615-310-1886
Dave Crumpton Inspector Dave 615-887-4187
BUYER ORIENTATIONHOME PROTECTION PLAN
As an additional benefit, some sellers provide a Home Protection Plan for the buyer. This coverage is good for one year on selected items:
!
!
!
!
!
!
!
!
!
!
!
If the home you choose does not have a Home Protection Plan, you can acquire the coverage yourself.
• Central Heating System • Electric Central Air System • Interior Plumbing • Built-in Appliances • Electric Pool Equipment
David & Sharon Kipp!RE/MAX Elite . 278 Franklin Rd, Suite 190, Brentwood, TN 37027!
615-661-4400 office ~ 615-661-4115 fax ~ www.TeamKipp.com! [email protected] or 615.400.0661 ~ [email protected] or 615.549.7967!!
PERSONAL DATA!Married 1983; two children, Jon and Megan, three grandchildren!PROFESSIONAL DESIGNATIONS!DAVID:! BA! -! Boston University, graduated Magna Cum Laude!! JD! -! Vanderbilt University!DAVID & SHARON: ABR -! Accredited Buyer Representative®!
SHARON:! GRI! -! Graduate of REALTORS Institute®!! CRS! -! Certified Residential Specialist®!! e-PRO! ! Certified Real Estate Technology Specialist®!PROFESSIONAL QUALIFICATIONS!Tennessee Real Estate Brokers License!Active members of the National Association of REALTORS®!Active members of the Tennessee Association of REALTORS®!Active members of the Greater Nashville Association of REALTORS®- Million Dollar Sales Associates!DAVID’S BUSINESS EXPERIENCE!
!1995! -! Present! Broker - RE/MAX Elite!!1993! -! 1995! Managing Broker - Dobson & Johnson, Inc.!!1985! -! 1993! Broker - Dobson & Johnson, Inc.!!1981! -! 1985! Private Law Practice - Flynn & Associates!!1980! -! 1981! Private Law Practice - Hooker, Ganier & Neenan!!1977! ! ! Affiliate Broker - Dobson & Johnson, Inc.!SHARON’S BUSINESS EXPERIENCE!
!1995! -! Present! Broker - RE/MAX Elite!!1985! -! 1995! Broker - Dobson & Johnson, Inc.!!1982! -! 1985! Office Manager - Hooker Investments, Ltd.!1981! -! 1982! Executive Secretary - U.P.J.U.!1980! -! 1981! Vice President - HLG Corporation!1975! -! 1980! Assistant to Exec. V.P. - Hollywood Marine, Inc.!OTHER! ! AFFILIATIONS!DAVID:! Metro Property Standards Board: Commissioner / Leukemia Society: Past Celebrity Waiter Fundraising Co-
Chairperson / Boy Scouts of America: Fundraiser / Donelson - Hermitage Chamber of Commerce!SHARON:! Greater Nashville Association of Realtors: Director / Greater Nashville Association of Realtors: Past Professional
Standards Committee Chairperson /1997 Business Woman of the Year: Donelson-Hermitage Chamber of Commerce /Leukemia Society: Celebrity Waiter Co-Chair & Past Director /American Heart Association: Past President & Director /Donelson -Hermitage Chamber of Commerce: Director / American Cancer Society: Past Director / Leadership Donelson-Hermitage : Alumni / Leadership GNAR (Greater Nashville Association of Realtors): Alumni / Evening Exchange Club of Donelson-Hermitage Area: Past President / 2012 Star Spangled Salute Honoree / 2014 Community Service Award ~ RE/MAX Elite / 2014 Community Service Award ~ Greater Nashville Association of Realtors
BUYER ORIENTATIONTESTIMONIALS
‘Our contract negotiation was extremely complex. Multiple offers, deadlines, inspections, contingencies, back up offers and appraisal problems. Having an agent who is also a lawyer made all the difference. Our original transaction closed exactly as planned and on schedule, and we were protected legally every step of the way.”
Baker Walker, Old Hickory !
“By the expert guidance of David and Sharon Kipp we sold our home after it had been listed for only 3 days. They are a professional and attractive couple and we are sure these qualities made a favorable impression upon anyone to whom they showed our home. We followed their advise to the letter, and we received four offers and netted a sale price higher than we expected. If we ever move back to Nashville, rest assured we will look up David and Sharon to find us a new home.
Gary Luttrell, Nashville !
BUYER ORIENTATIONTESTIMONIALS
“My transaction got hopelessly mixed up and complex. I had another Realtor. Sharon Kipp represented the Seller and I was the Buyer. Sharon took over for my Realtor and solved the problem. If she hadn’t taken over, I couldn’t have gotten my house.”
Michael Ensign, Hermitage !
“I told them over the phone exactly what I wanted and how much I could spend. When my wife and I came to town it was obvious they had listened. After seeing the second house of 12 scheduled, my wife said to cancel all the other showings. This is exactly what we want. It was unbelievably easy!”
Pilot Bob Masek, Murfreesboro !
We appreciate your genuine care, concern and thoughtfulness. You went out of your way to be helpful and thorough - your dedication shines!
Penny Sanford, Brentwood!