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Outer Banks

Real Estate

Winter 2014

Volume 10, Issue 8

Myth: It's a terrible time to

sell.

Truth: When properties are

priced competitively,

OBX homes/condos sell

quickly - regardless of the

market.

We are here to arm you with the facts,

data and insights you need to list your home

so that it sells! Contact me to find out how much your

home is worth in today’s market.

Your Full-time,

Overtime, Anytime

Outer Banks

REALTORS®!

Sun Realty Your

#1 Realty

Company !

You’ve made the decision to sell your Outer Banks house/condo…Now what? In this seller’s guide, the Willey-Lilley Real Estate Team hopes you’ll find helpful material regarding ALL the most important aspects of selling your Outer Banks home/condo.

Preparing your home/condo so it’s attractive to buyers

Strategically setting an asking price

Effectively marketing your home

Showing your home/condo at its best

Negotiating the best possible deal

Completing the transaction That said, with all of the complexities of the current market, this guide can only supplement our help as experienced and trusted REALTOR®s who, when you decide to sell, will be able to provide you with expert consultation at each step of the sales process. The successful marketing of a house/condo is a multi-faceted process that includes nearly every activity involved in getting it sold. The Willey-Lilley Real Estate Team has many services available to provide the edge you need when selling your house/condo. Finding Buyers is just part of our job - but it isn't everything. Effective marketing encompasses just about every topic covered in this Sellers’ Guide – home preparation, pricing, presentation, and even negotiation, as well as strategic advertising and networking. Here's where our experience and expertise contribute significantly to the success of the transaction. If you are you ready to sell your home/condo, then find out what your home/condo is worth. Request our complimentary consultation and find out how to sell quickly! As top producing real estate professionals, we will guide you through the real estate process and get the job done! Give us an opportunity to work for you! Always Expect Success, Hugh “Scooter” Willey hughwilley@sunrealtync.com or 252-489-8491

Future Destination … SOLD!

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Table Of Contents

Meet the Willey-Lilley Team .................................................................................................. 2 Why Should You CHOOSE Us? ........................................................................................... 3 Working with Real Estate Agents .......................................................................................... 4 Preparing Your Home So It’s More Attractive to Buyers ....................................................... 5 A Comparative Market Analysis (CMA) ................................................................................. 6 The Consequences of Overpricing at the Time You List ....................................................... 7 What Conveys? .................................................................................................................... 8 Expenses to Expect when Selling a Home ........................................................................... 8 Seller’s Disclosure ................................................................................................................. 9 Our Listing Process ............................................................................................................. 10 Effectively Marketing your Property for ALL it’s Worth ......................................................... 11 Accessibility and the Lockbox .............................................................................................. 12 An Offer to Purchase ........................................................................................................... 12 Successfully Negotiating the Deal ....................................................................................... 13 Appraisal is the Final Check on Pricing a House/Condo ...................................................... 14 Passing Your Home Inspection ............................................................................................ 15 Signed, Sealed, and Delivered ............................................................................................ 16 The Settlement .................................................................................................................... 17 I need to do a “Short Sale” .................................................................................................. 18 What is a 1031 Tax Exchange? ........................................................................................... 19 Thank You ............................................................................................................................ 20 Testimonials .......................................................................................................................... 21 Appendix A Working with Real Estate Agents ................................................................ 22-25 Appendix B How We Market Your House/Condo for Sale .............................................. 26-27 Appendix C Sample Net Proceeds Sheet ............................................................................ 28 Appendix D North Carolina Residential Property Disclosure .......................................... 29-32 Appendix E Preferred Providers ..................................................................................... 33-34 Appendix F Utility Contact Information ............................................................................ 35-36 Appendix G Short Sale FAQ? ......................................................................................... 37-41 Appendix H Seller’s Checklist ......................................................................................... 42-46 Appendix I Sellers Information .............................................................................................. 47

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Robin, Scooter, Gerri

As the team leader, Hugh “Scooter” Willey kicked off his early career as a licensed NC builder by building and investing in multiple real estate properties throughout the Outer Banks since 1985. This has brought him not only geographic knowledge of the area, but also contact with community leaders and people with vision.

Scooter Willey is a successful realtor who believes that it is important to stay on the cutting edge of real estate education to better serve his clients. His current designations include the Accredited Buyer Representative (ABR), Resort & Second-Home Property Specialist (RSPS), and Short Sale & Foreclosure Resource (SFR). Scooter will show you practical, valuable techniques for investing in a second home or vacation rental property.

For Gerri Willey, the real estate side of her life began in 2006 when she became a licensed realtor, after retiring as a software engineer from Old Dominion University. Scooter and Gerri decided to marry his real estate investment knowledge of the Outer Banks with her strong technology skills. Gerri’s forte is management of their websites, overseeing their real estate marketing, and escrow coordinator

Their friend and colleague, Robin Lilley, is the 3rd member of team and has also attained the SFR designation. For the past six years as a flourishing realtor, Robin has enjoyed helping make other's dreams come true with purchasing property in this idyllic setting. Previously she spent 18 years in the design business, during which, she only had the opportunity to use her second home located in the Outer Banks during summer vacations.

Meet the Willey-Lilley Team

The Willey-Lilley Team is dedicated to providing the finest service available. As a team, they recognize that trust is earned, and they work to continue that tradition every day. The Willey-Lilley real estate team is your “Your Full-time, Overtime, Anytime OBX REALTORs”

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Why Should You CHOOSE Us?

The Willey-Lilley Team puts YOUR interests first – always. As our clients, you have the right to expect us to negotiate the best business deal possible for you and promote your interests above anyone else’s.

We focus on delivering the results that as Seller, you are looking for. We share your goals and aim to deliver the highest attainable price for your property in the shortest marketing time with the least inconvenience. Moreover we handle all the details of your transaction and keep you informed via frequent communication so you always know what’s going on with your home sale.

Our success is measured solely by the outcome of listing your home and the only acceptable outcome for us is SOLD. We are not in the business of listing homes to troll for buyers or other sellers; we are in the business of selling homes – period. If this sounds reasonable to you, then we might be a good match and you may choose to hire us.

We will… • Prepare a detailed Competitive Market Analysis

and update it regularly • Answer the question: “How’s the market and

where’s it going?” • Illustrate the “Absorption Rate” and explain what

it means • Reveal how sales price and marketing time are

inversely related • Show what Buyers have paid for other homes and

which homes they rejected • Explain how competitive homes on the market

impact your sale • Describe the effects of foreclosures on the sale

of your home • Promote your home/condo with an integrated

approach utilizing mobile, internet, and print media • Help find a Buyer for your home/condo • Negotiate for the Seller and deal with the Buyer • Help with ALL paperwork, inspections, and closing

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Working With Real Estate Agents When buying or selling real estate, you may find it helpful to have a real estate agent assist you. Real estate agents can provide many useful services and work with you in different ways. In some real estate transactions, the agents work for the seller. In others, the Seller and Buyer may each have agents. And sometimes the same agents work for both the Buyer and the seller. It is important for you to know whether an agent is working for you as your agent or simply working with you while acting as an agent of the other party. The North Carolina Real Estate Commission publishes a pamphlet titled "Working With Real Estate Agents" that explains the various agency relationships between a Buyer or Seller and their real estate agents. These agency relationships are:

Buyers Agent Sellers Agent Dual Agent Designated Agent

As licensed real estate agents in North Carolina, we are required by the North Carolina Real Estate Commission regulations to explain these various relationships to you and to have the pamphlet (refer to Appendix A) signed by you acknowledging that we discussed it with you before first significant contact.

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Preparing Your Home so it’s more Attractive to Buyers When presenting your home to prospective Buyers, first impressions are crucial. Buyers begin judging your home the moment they see it and, unless they’re looking for a deal on a fixer-upper. A house that "sparkles" on the surface will sell faster than its shabby neighbor, even though both are structurally well-maintained. From experience, REALTORS® also know that a "well-polished" house appeals to more buyers and will sell faster and for a higher price. Additionally, Buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can't see has probably also been maintained. In readying your house for sale, consider:

how much should you spend exterior and curb appeal preparing the interior

In preparing your home for the market, spend as little money as possible. There is a big difference between making minor and inexpensive "polishes" and "touch-ups" to your house, such as putting new knobs on cabinets and a fresh coat of neutral paint in the living room, and doing extensive and costly renovations, like installing a new kitchen. Basic reorganization and maintenance tasks are “must-dos”. While Buyers might not notice such work when it is done, they’re sure to notice when it isn’t. This impression of neglect will make it more difficult for them to comfortably project themselves into your home’s living space. Your REALTOR®, who is familiar with Buyers' expectations in your neighborhood, can advise you specifically on what improvements need to be made. Please refer to Appendix H for a checklist you can use to prepare your home for sale. Plus, don't hesitate to ask us for advice!

There’s no place like home! Remember...The way we sell your home is different from the way you live in your home. When you place your house/condo on the market, it becomes a "product" and no longer a "home".

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A Comparative Market Analysis (CMA)

A Comparative Market Analysis (CMA) is a document, drawn from a local Multiple Listings Service (MLS) database, that presents pricing information, property details, and photos of homes/condos similar to your (termed “comparables”) that recently sold, failed to sell, or are currently on the market in your area. A fair market value can be determined by comparing these similar properties which have recently sold and (in some cases) with similar properties currently on the market. Experience in the industry has proven this “market analysis" approach is more accurate than the "replacement cost" or "potential rental income methods”. After conferring with the listing broker on current market conditions, comparable near-by sales and listings, and available financing, the home seller will set the listing or "asking" price for the house. Please note, that the most common definition of fair market value is "What a ready, and willing, and able Buyer, will pay, at a price a Seller will accept." Today’s Buyers are very sophisticated. Most of the time, they have already been shopping, and when they see your home they'll be comparing both features and price. There's a rule of thumb that says. "A house priced more than 5% over market value discourages offers." Buyers who can afford the price, can get "more house" for their money elsewhere. Buyers who cannot afford the price simply won't look. This is why we often say that, "A house priced right is half sold."

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The Consequences of Overpricing at the Time You List The strategy of overpricing your home when you list, knowing you can reduce the price later, might seem to make sense at first glance. However, it seldom works. In fact, Sellers who overprice their homes – even just 10% above market value – and then reduce the price one or more times often end up getting less than they would have if they priced it realistically from the start. Here’s why:

Fewer Buyers – even if they’re otherwise attracted to your home – will respond to the online and offline marketing of it if they know it’s overpriced.

Few agents will show your home to their Buyers if they know it’s overpriced.

The right Buyers – i.e., looking to buy a home like yours – may never even view it because they’ll confine their search to a lesser price range where yours should be.

You’ll attract the wrong Buyers - i.e., those looking in your price range – who won’t be interested in your home, having viewed other homes truly worth what you’re asking for yours.

An excessive price on your property makes others more attractive - i.e., both those price where yours is, and also those priced where yours should be.

You’ll get fewer – if any – serious offers overall because Buyers may consider doing so a waste of time.

Even if you do get a serious offer, the excessive price can lead to a mortgage rejection for the buyer once the lender has a professional appraisal done on your home.

Reducing the price after Buyers have begun to perceive your home as a stale listing will not generate as much interest as if you’d priced it properly from the start.

All this is why pricing your home realistically right from the beginning – to coincide with its window of maximum market exposure so that you can best leverage Buyer interest and emotions – is important, particularly in a market like this one. If you do so, you’ll not only attract more Buyers, you’ll attract the right Buyers; qualified, motivated, and willing to pay top market value for your home at the very time during the listing when you’re most likely to get it.

How you price your home will directly impact how many Buyers, showings and offers you attract, as well as how easily it sells, as depicted in the Pricing Pyramid Below:

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What Conveys? More on fixtures, personal property, and

those little contractual gray areas. This benign little question is raised at some point during nearly every transaction. The terms "fixture" and "personal property" are key to all of this. A “bill of sale” is used to transfer personal property to a buyer. It includes a detailed description of the property and warranty provisions. In anticipation of a Buyer's offer, the home seller must be ready to supply listing broker with a specific list of the personal property that is included in the real estate property for sale. Examples of items to "convey" may include window treatments, remaining propane gas, washer, dryer, refrigerator, stove, microwave, swimming pool chemicals, blinds, window air conditioners, furniture (99% of the time ALL the furniture – including the dishes convey with a vacation rental property by a “bill of sale”), and etc.

Expenses to Expect when Selling a House/Condo:

-Deed preparation (attorney fee) -Deed stamps & land transfer tax -Prorated share of yearly property taxes, property association dues, & other similar fees -Attorney fees, real estate fees if an agency is involved -Fees associated with loan payoff or transferring funds into a checking account Being prepared for the costs of selling your home can help keep you from becoming frustrated or surprised just at the time you’ve got a lot of other things on your plate. Do a little pre-planning and you’ll be much happier.

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Seller’s Disclosure The seller is bound by law to disclose certain information about their house/condo. Below is a list of disclosures that may be required for listing your property for sale:

Vacation Rental Agreement-This addendum discloses that the home is under contract with a rental firm, and subject to short or long term leasing agreements that must be honored.

NC Residential Property Disclosure-This is required by the state and requires that the homeowner disclose any known defects about the property. The home disclosure must be done by the seller. A real estate agent acting on behalf of the home Seller is not allowed to provide the home disclosure. When filling out a Seller’s disclosure form, the Seller needs to be specific and precise. Refer to Appendix D for a copy of the North Carolina Residential Property Disclosure.

Homeowners Association Disclosure-This discloses that the home is subject to the regulation of a Homeowners’ Association.

Sun Realty Disclosure –This disclosure touches the local issues we have here in Dare and Currituck Counties

Short Sale Addendum- This addendum is needed when a property is subject to a Short Sale, it defines the terms of the short sale.

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Our Listing Process During the listing process will undertake the following steps: Step #1: Understand your situation

Listen to you and make sure we understand what, when, how and why you want to list your house

Understand your needs, your wants and your overall situation

Analyze your situation and try to see what’s the best possible solution for you

Step #2: Property Valuation

Inspect your property and surrounding area for two main purposes: (1) Property Valuation Analysis and (2) sale preparation

Notate the followings: dimensions, interior/exterior features, construction qualities, interior decoration, floor plan, amenities, curve appeal, and neighborhoods

Evaluate each part of your property to see if there’s any room for improvements

We will conduct a comprehensive personal market analysis to establish the most effective asking price

Step #3: Sign listing paperwork

Explain to you the services we have to offer

Show you the listing options

Discuss with you about the listing commission

Answer any questions you may have

Make recommendations on your property to put it in the best condition and get you more money when you sell

Go over with you the listing paperwork and have you sign

Step #5: Home marketing

Once listing paperwork has been signed by both parties (Seller & Listing Broker), we will list your property on the Outer Banks Association of Realtors Multiple Listing Service and implement the Willey-Lilley Marketing Plan to get your house/condo sold.

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Effectively Marketing Your Property for ALL it’s Worth

The successful marketing of a house/condo, like that of any good or service, is a multifaceted process that includes nearly every activity involved in getting it sold. In fact, marketing encompasses just about every topic covered in this Sellers’ Guide – home preparation, pricing, presentation and even negotiation, as well as strategic advertising and networking. All these activities are undertaken with one aim: to maximize your home’s market exposure, and with it the number of showings and offers you get so that you ultimately sell for top market value. An experienced REALTOR® has the knowledge, expertise and resources to implement a plan that will effectively coordinate all of these activities so you do just that. As we’ve seen, strategically preparing and pricing your home are master keys to attracting serious, financially-qualified Buyers. However, in order to maximize the impact of these preparation and pricing strategies, your home needs to be effectively exposed to the marketplace through a variety of advertising media. Currently, the internet (including industry standard real estate websites, social media, blogs, etc.) and direct contact with REALTORS® are far and away the main sources of home information for Buyers (at 90% and 87%, respectively).

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Accessibility and the Lockbox When you are selling your home, you should NOT be present when an agent brings a potential buyer to view the property. Successful marketing means that buyers need to be able to imagine the house as their future home. Nothing puts a damper on that more than having the current owners hanging around. That is one reason why the lockbox is such a key tool for real estate agents. A lockbox is a hollow metal box that attaches to the front doorknob or some secure place nearby. Inside the hollow area is another matchbox sized box that contains the key to the house. When an agent opens the lockbox, that smaller container slides out. Most modern lockboxes have a tiny microprocessor inside. All of the “keys” have a unique identifier so when someone opens the box, the microprocessor inside “registers” the agent who opens it, any agent who opens the box can be identified – as well as the date and time they entered the house. That information can be downloaded by your listing broker and the local MLS Association. This works as a security measure for the homeowner. But the main purpose of the lockbox is that it facilitates the sale of the home. Without a lockbox, the Seller or Sellers’ agent would have to be present when the Buyer came by with their agent, and that does not really help to sell the home. The Sellers could leave the door unlocked, of course, but in today’s security-conscious world, that is not a great idea. One possibility is that the Seller could give a key to their listing agent, but then the listing agent would always have to be present when another agent brought a Buyer to the home. Showings would have to be scheduled tightly and that would be an inconvenience to the listing agent and the Buyer’s agent……and it would be an inconvenience to the Buyer.

The Offer to Purchase:

The offer to purchase is just that, an offer, until all the terms are agreed upon by both Buyer and Seller then signed and dated! The offer will outline the price, date of closing, earnest money put forth, and the time table for the due diligence period. In the market at the Outer Banks, we usually have the Buyer bring a loan pre-approval letter from the bank or a proof of funds statement. When these things are in place and the offer is signed and dated, the offer is ratified (accepted) and you are officially under contract!

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Successfully Negotiating the Deal With rare exception, negotiating the transaction is the most complex part of selling a home. At the same time, it’s the one that can involve the most creativity. That’s why it’s important to have an experienced and savvy REALTOR® who has successfully worked through many different transaction scenarios. What follows is a brief description of the negotiation process and a few strategies for negotiating the best possible deal you can. This includes: keeping in mind your situation, priorities and needs, not giving your situation away to the Buyer and Buyer’s agent, trying to understand and respect the priorities of the Buyer, being creative and, where necessary, willing to compromise to get the deal done. When a Buyer, typically with the help of a REALTOR®, makes an offer on your house/condo they’ll do so using a contract that has been developed by your local real estate association in conjunction with legal counsel. These contracts enable the Buyer to set a sale price, and also include many clauses for specifying various terms of purchase, such as the closing and possession dates, the deposit amount, and a variety of other conditions. The buyer’s REALTOR® will then deliver the offer to us, since we are your REALTOR®’s. We will then present it to you. You should closely review every detail of the offer with us. We will be happy to address all your questions about the offer and the process itself. You can then accept the offer, reject it, or counter it to initiate the negotiation process. Successive counter-offers, with deadlines for responding and meeting various contingencies and special conditions (i.e., a home inspection, the Buyer securing financing), will be exchanged between you and the Buyer until a mutually-satisfactory pending agreement is reached or the negotiations collapse. It’s crucial to keep certain aspects of your selling situation (i.e., your finances, why you’re selling, how urgent you are) as concealed as possible from the Buyer and Buyer’s agent. Remember, it’s the job of the Buyer’s agent to get the best deal they can for their client, so any vulnerability you show could end up compromising your position and costing you thousands of dollars. This is not the same, however, as expressing your priorities very clearly throughout the negotiations. Properly done, the firm statement of your priorities will strengthen your position. It is our responsibility as your REALTOR®’s to make sure the Buyer and Buyer’s agent only know what they’re legally entitled to know and, beyond that, what you want them to know. If, during the negotiations, you can find out more about the Buyer’s priorities you’ll not only improve your position, but you’ll also be able to resolve any obstacles more creatively and sensitively. For instance, if a Buyer is adamant about the sale price – perhaps because they love your property, but they’re at the limits of their available financing – they might be more flexible about the closing date or willing to make concessions about some other terms. There are no “one size fits all” approaches to negotiating, particularly in the current market. In principle, though, the more you know about the Buyer’s priorities, the more you’ll be able to work with them in order to achieve your own priorities.

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Appraisal Is the Final Check on Pricing a House/Condo

In today’s real estate market, pricing a home has become more important and at the same time more difficult. When selling your home, price it too high and no one will even look at it. Price it at the current market level and you still have to deal with the oversupply of homes for sale that exists. And with all the foreclosures and short sales out there, market prices are becoming more and more distorted.

Some neighborhoods are easier than others to get the price right. When I look at comparable properties to do a market analysis, I need enough “normal” arms’ length transactions to support the listing price. If there are distressed home sales in the neighborhood, it’s easy enough to disregard them if there are at least 3 homes that have sold under more traditional circumstances.

The appraiser may not always disregard distressed property sales. The appraiser also may not use the same comparable home sales I used either. If you don’t consider these things, the appraisal can be the unanticipated problem that suddenly appears at the 11th hour.

Because of new rules for how lenders order appraisals, the appraiser might end up being someone who is not so familiar with a given neighborhood. And there is more pressure now to do appraisals that consider prices might be lower in the future, rather than higher. There are lots of reasons that an appraiser, in today’s market, might turn in an appraisal that is lower than the sell price. Sellers should be prepared for this possibility when selling their home/condo.

If you do sell your home at the high end of its price range, be prepared to deal with the possibility of a relatively low appraisal. The standard offer to purchase and contract says that the buyer can terminate the contract and that all earnest monies shall be returned if the home does not appraise at or above the purchase price. In these cases, the Seller may be able to salvage the sale by lowering the price to match the appraisal.

Just remember that the appraisal is typically done a few weeks before closing. Make sure your realtor is aware of when it is completed and if it came in at or above the purchase price. Usually this is one of the last contingencies that must be cleared before closing. Being prepared to quickly offer an alternative price, if you run into appraisal issues, just might keep your deal alive and get you to closing on schedule.

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Passing Your House/Condo Inspection Nearly all Buyers will hire a professional home inspector to take a close look at their new home before closing. Sometimes home inspections are done before the home goes under contract. Home inspections cover numerous systems within the house, but there are a handful of hot-spots that worry buyers the most. Don't wait for inspection day to assess the condition of your home and make necessary home repairs. Small problems can turn into big headaches more quickly than you might imagine, requiring a chunk of cash to fix and perhaps lowering the home's market value. Mildew stains and odors scare buyers, especially now that toxic black mold is such a hot topic. Chances are you won't even get an acceptable offer if mold and mildew are present. Even if the mold in your house is the normal variety, take care of it immediately. Kill the mold and mildew and fix the source of the problem. Buyers and inspectors will look closely at the walls and floors for patches of mildew and signs of dampness. The inspector might use a meter to determine how much moisture is present in these spaces, because moisture deteriorates building materials and attracts insects. Deteriorated shingles or other roof coverings are one of the first things home buyers and home inspectors notice. If the elements underneath the shingles are moist or rotted, you can bet repairs will be requested. Clean the gutters and make sure downspouts are positioned so that water runs away from the house. Flashing around the base of chimneys should be watertight. Mortar and bricks should be in good condition. Fix leaks and clogs long before the home inspection takes place. The inspector will check water pressure by turning on multiple faucets and flushing toilets at the same time. Appliances such as dishwashers and clothes washers will be tested, too. The inspector will check the heating and cooling systems, making sure they work and commenting about their efficiency. The inspector will take a close look at the structure and foundation. All appliances will be checked. The inspection report will include details about smoke detectors. If serious problems exist, and you do not want to make repairs, you can consider lowering the price of the house upfront, with the understanding that the price reflects the problem. Another option is to give the buyers an allowance to make repairs after closing. Before the inspection, do everything you can to get the house in good condition before you attempt to sell it, but don't be discouraged if the inspection report contains negative statements. Home inspectors make note of everything they see. No home is perfect. Read your contract carefully--it probably states which systems should be in good working order at closing. For instance, if the roof is older, but doesn't leak, it is in good working order. If there's a leak, and fixing just the leak is possible, the roof will be in good working order. Your contract may also state that you are under no obligation to make any repairs at all--although the buyers can then likely withdraw from the contract. Don't feel you must comply with unreasonable demands for repairs.

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Signed, sealed and delivered: closing the deal

If you and your Buyer have both efficiently taken care of your respective contractual obligations associated with finalizing the sale, the process of completing the transaction – known variously as the “closing”, “escrow” or “settlement” – will go smoothly with no surprises.

A pending sales agreement nearly always includes contingencies and special conditions that have to be fulfilled by the Buyer and Seller by the closing date, which usually falls 30 to 60 days after both parties, have signed the agreement.

Typical contingencies and conditions may include:

• The Buyer’s securing of financing. • A Title Search – a historical review of all legal documents relating to ownership of the property

to ensure that there are no claims against the title of the property. • The purchasing of Title Insurance in case the records contain errors or there are mistakes in the

review process. • A professional appraisal of the home, requested by the lender to ensure that the home’s actual

value justifies the loan amount. • Any additional contractual promises you have made in connection with buyer incentives, home

improvements, etc. • An independent inspection of the home’s structural and functional condition (foundation, roof,

electrical, heating, plumbing, etc.). • An independent termite inspection. • A final walk-through – the Buyer is given the chance to look at the home to make sure that it’s in

the same condition as when the sale agreement was signed.

It’s important to review the sales agreement with your REALTOR® so you understand your obligations. Any shortfalls or mistakes at this point can be very costly. Your REALTOR® can discuss and remind you of these obligations, as well as help arrange for their fulfillment and prepare you for the closing.

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The Settlement

While different areas handle the final settlement in slightly different ways, generally the closing agent – a third-party professional, often a lawyer, who conducts the proceedings – reviews the sales agreement and does the following:

• Determines the total amount due from the Buyer

and collects the check.

• Determines all the adjustments (e.g. seller prepayment of taxes, utilities, etc.) and ensures that they’re factored into transaction.

• Assures that the transaction costs (closing, legal fees, etc.) are paid.

• Determines the Seller’s payments, credits and adjusted net proceeds.

• Witnesses the Seller’s signing of the property title and all other documentation associated with the transaction.

• Collects the keys and any other necessary items from the Seller.

• Provides the Seller with the net proceeds as well as copies of the documentation pertaining to the sale.

• Ensures that the Buyer’s title is properly recorded in the local records office along with any mortgage liens.

In most cases, the Buyer’s possession date will fall on the same day as the closing date, at which point your former beloved home will have a new owner!

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I Need to do a Short Sale!

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved. But to be technical, here's a more official definition:

A homeowner is 'short' when the amount owed on his/her property is higher than current market value.

A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

Financial Hardship – There is a situation causing you to have trouble affording your mortgage.

Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.

Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

One additional requirement is that the transaction must be at “arms’ length”. This means that the Buyer of a short sale property cannot be, in any way, related to the Seller nor have a business relationship with each other. The buyer must sign an affidavit legally confirming their relationship or lack of.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. We hold the Short Sale and Foreclosure Resource (SFR® Designation) and are ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction. If you have additional questions or feel you may qualify for a short sale, please contact us for a free consultation. Understanding your options now could mean all the difference in the world. Also, refer to Appendix G for additional short sale FAQ and answers.

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What is a 1031 Tax Exchange?

A 1031 tax exchange is used by someone who owns a piece of property, and wants to roll all of the appreciation into a new property. Once an investor has decided to pursue a 1031 Exchange, the process is fairly straightforward and will be carefully facilitated by a Qualified Intermediary (QI). Here is a typical timeline involving an exchange, presented in the traditional order of occurrence.

This information is presented for informational purpose only. Consult a proper professional before making a decision.

1. Investor decides to sell investment property and do an exchange. Investor contacts a Qualified Intermediary (QI).

2. Investment property is put on the market. 3. Offer to purchase investment property is accepted. 4. Escrow for the sale is opened and preliminary title report produced. 5. The QI sends required exchange documents to escrow closer for signing at property closing. 6. Escrow closes with the Intermediary holding proceeds from sale. 7. Within the first 45 days after the close of escrow on the sale of the relinquished property,

investor identifies replacement property as required by law. 8. Within 180 days after the close of escrow on the sale of the relinquished property, investor

closes on replacement property that was identified by them. The exchange is completed. Frequently the most difficult component of a 1031 Exchange is identifying replacement property within the first 45 days following the sale of the relinquished property. The IRS is very strict in not allowing extensions. Many investors therefore carefully think about replacement property alternatives before closing on the relinquished property.

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Thank You We hope that you’ve gotten to know a bit about our strategies and our experience. We’d like to close by telling you a bit about our business philosophy. Many agents think their most important job is satisfying the client. We don’t think that’s correct. We believe that satisfying the client is simply the minimum requirement for staying in business. We work diligently to improve our systems, processes and services to go well beyond the standard level of “service” provided by most agents. Simply put, we want to provide the best service in the industry – period. We want to make you SO COMPLETELY SATISFIED that you listed your home/condo with us that you will comfortably and confidently refer us to your family, friends and coworkers. In fact, we are so confident you’ll be pleased with our service that we guarantee it. If at any time you’re dissatisfied with our performance, fire us. It’s as simple as that! Thanks again - we look forward to meeting with you.

Hugh “Scooter” Willey

Licensed NC Real Estate Broker Accredited Buyer Representative Resort & Second-Home Property Specialist Short Sale and Foreclosure Resource DIRECT LINE: 252-489-8491

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Testimonials We always ask our clients to write or email us, and tell us truthfully how they appreciated our service to them. Their feedback is so important! Here are a few highlights of what people are saying about us... A superb experience by a true "A" team! Scooter, his wife - Gerri and Robin, reflect the good old days of great customer service. Their sense of urgency and sense of purpose was absolutely amazing. There was not one question left unanswered, they truly live to make property ownership dreams come true and there was never a challenge too tough! They have become true friends and we will stay in touch. Allen. June 2013 Scooter and his team have been our agents for four separate transactions on the Outer Banks. He has represented us as buyers and as sellers. His knowledge of the market on the Outer Banks and his service are second to none. I highly recommend him. Robert. July 2012 “Hugh and his team helped me really understand the second home market here at the Outer Banks. I thought I wanted a foreclosure, but it ended up that they were not such a good deal after all. Thank you for steering me in the right direction.” John. April, 2011 “It was our pleasure working with Scooter. He is very professional, detail oriented, prompt in replying e-mails and easily reachable over phone. Thanks to Scooter for his excellent market knowledge and insight. Scooter showed us several properties, prepared a Cash Flow Analysis (CFA) document for all the properties we are interested in and provided rental history too. During the home buying process we changed our mind several times to decide on the property. Scooter did not put pressure on us and waited patiently to make our choice. Scooter, without your help and information you have provided, we would have never bought a beach house in OBX. Thank you” Murali. April, 2011 "You are such an outstanding realtors. Thank you for all you did…” Nancy & Jack E. – July 2010

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APPENDIX A

Working with Real Estate Agents When buying or selling real estate, you may find it helpful to have a real estate agent assist you. Real estate agents can provide many useful services and work with you in different ways. In some real estate transactions, the agents work for the seller. In others, the seller and buyer may each have agents. And sometimes the same agents work for both the buyer and the seller. It is important for you to know whether an agent is working for you as your agent or simply working with you while acting as an agent of the other party. This brochure addresses the various types of working relationships that may be available to you. It should help you decide which relationship you want to have with a real estate agent. It will also give you useful information about the various services real estate agents can provide buyers and sellers, and it will help explain how real estate agents are paid. SELLERS

Seller's Agent If you are selling real estate, you may want to "list" your property for sale with a real estate firm. If so, you will sign a "listing agreement" authorizing the firm and its agents to represent you in your dealings with buyers as your seller's agent. You may also be asked to allow agents from other firms to help find a buyer for your property. Be sure to read and understand the listing agreement before you sign it. Duties to Seller: The listing firm and its agents must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents without your permission. But until you sign the listing agreement, you should avoid telling the listing agent anything you would not want a buyer to know. Services and Compensation: To help you sell your property, the listing firm and its agents will offer to perform a number of services for you. These may include • helping you price your property • advertising and marketing your property • giving you all required property disclosure forms for you to complete • negotiating for you the best possible price and terms • reviewing all written offers with you and • otherwise promoting your interests. For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.

Dual Agent You may even permit the listing firm and its agents to represent you and a buyer at the same time. This "dual agency relationship" is most likely to happen if an agent with your listing firm is working as a buyer's agent with someone who wants to purchase your property. If this occurs and you have not already agreed to a dual agency relationship in your listing agreement, your listing agent will ask you to sign a separate agreement or document permitting the agent to act as agent for both you and the buyer. It may be difficult for a dual agent to advance the interests of both the buyer and seller.

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Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party. Some firms also offer a form a dual agency called "designated agency" where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each "designated agent" to more fully represent each party. If you choose the "dual agency" option, remember that since a dual agent's loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of * what your relationship is with the dual agent and * what the agent will be doing for you in the transaction. BUYERS When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer's agent). You may be willing for them to represent both you and the seller at the same time (as a dual agent). Or you may agree to let them represent only the seller (seller's agent or subagent). Some agents will offer you a choice of these services. Others may not. Buyer's Agent Duties to Buyer: If the real estate firm and its agents represent you, they must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer's agent, they may not give any confidential information about you to sellers or their agents without your permission. But until you make this agreement with your buyer's agent, you should avoid telling the agent anything you would not want a seller to know. Unwritten Agreements: To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do for you, you may want to have a written agreement. However, some firms may be willing to represent and assist you for a time as a buyer's agent without a written agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written agency agreement. If you do not sign it, the agent can no longer represent and assist you and is no longer required to keep information about you confidential. Furthermore, if you later purchase the property through an agent with another firm, the agent who first showed you the property may seek compensation from the other firm. Be sure to read and understand any agency agreement before you sign it. Services and Compensation: Whether you have a written or unwritten agreement, a buyer's agent will perform a number of services for you. These may include helping you • find a suitable property • arrange financing • learn more about the property and • otherwise promote your best interests. If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller. A buyer's agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if the listing agent refuses. Whatever the case, be sure your compensation

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arrangement with your buyer's agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision. Dual Agent You may permit an agent or firm to represent you and the seller at the same time. This "dual agency relationship" is most likely to happen if you become interested in a property listed with your buyer's agent or the agent's firm. If this occurs and you have not already agreed to a dual agency relationship in your (written or oral) buyer agency agreement, your buyer's agent will ask you to sign a separate agreement or document permitting him or her to act as agent for both you and the seller. It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party. Some firms also offer a form of dual agency called "designated agency" where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each "designated agent" to more fully represent each party. If you choose the "dual agency" option, remember that since a dual agent's loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of • what your relationship is with the dual agent and • what the agent will be doing for you in the transaction. This can best be accomplished by putting the agreement in writing at the earliest possible time. Seller's Agent Working With a Buyer If the real estate agent or firm that you contact does not offer buyer agency or you do not want them to act as your buyer agent, you can still work with the firm and its agents. However, they will be acting as the seller's agent (or "subagent"). The agent can still help you find and purchase property and provide many of the same services as a buyer's agent. The agent must be fair with you and provide you with any "material facts" (such as a leaky roof) about properties. But remember, the agent represents the seller - not you - and therefore must try to obtain for the seller the best possible price and terms for the seller's property. Furthermore, a seller's agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are sellers' agents before you say anything that can help the seller. But until you are sure that an agent is not a seller's agent, you should avoid saying anything you do not want a seller to know. Sellers' agents are compensated by the sellers. (Note: This brochure is for informational purposes only and does not constitute a contract for service.) The North Carolina Real Estate Commission P.O. Box 17100 • Raleigh, North Carolina 27619-7100 919/875-3700 • Web Site: www.ncrec.state.nc.us REC 3.45 3/1/11

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WORKING WITH REAL ESTATE AGENTS This is not a contract By signing, I acknowledge that the agent named below furnished a copy of this brochure and reviewed it with me. ______________________________________________ Buyer or Seller Name (Print or Type) ______________________________________________ Buyer or Seller Signature ______________________________________________ Buyer or Seller Name (Print or Type) ______________________________________________ Buyer or Seller Signature ______________________________________________ Date ______________________________________________ Firm Name ______________________________________________ Agent Name Disclosure of Seller Subagency [_]When showing you property and assisting you in the purchase of a property, the above agent and firm will represent the SELLER. For more information, see "Seller's Agent Working with a Buyer" in the brochure. Buyer's Initials Acknowledging Disclosure:_______ Agents must retain this acknowledgment for their files

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APPENDIX B

How We Market Your House/Condo for Sale Not Just 10 Reasons To Hire Us As Your Real Estate Brokers,

BUT… 11 Reasons To Hire Us!

1. Prepare a FREE comparative market analysis (CMA) of your property, to determine what

other comparative properties are selling for in your area. These are some of the same

comparable properties that would be provided to an interested buyer by any realtor

were they to inquire about the relative value of your property.

2. Utilize our affiliation with Sun Realty which is the largest vacation rental and real estate

company on the Outer Banks of North Carolina. They offer us the very best tools of the trade

and the largest database of potential buyers (via their renter/guest database) to support our

efforts to attract buyers to your property.

3. Submit your approved property listing to the Outer Banks Assoc. Realtors (OBAR) MLS with

a virtual tour of your property. Most savvy internet users, using websites like

www.realtor.com, sort the criteria to look at homes with virtual tours first! Some don’t even

look at the property if they don’t have virtual tours! Your property would also be enhanced on

www.realtor.com with showcase banners, featured virtual tour, custom descriptions, and

maximum pictures.

4. Advertise in Homes & Land’s high quality magazine, via Sun Realty’s full page ad. Their

integrated marketing package and targeted direct mail program ensures your home is seen

by active home shoppers everywhere they look.

5. Incorporate 24/7 exposure with the usage of Talking House and smartphone (i.e., iPhone,

Droid) enabled mobile app. With Talking House, home shoppers can listen to a free

recorded message about your property IMMEDIATELY as they drive-by. With this, we

receive notification, because it is capturing their phone number, so that we can always

follow-up. With our smartphone enabled mobile app (www.hughwilley.obxwhere.com ) drive-

bys can view additional MLS listing information pertaining to your property and contact us

immediately for showing inquiries.

6. Maintain 60+ industry leading websites that will feature your property, including my

personal websites www.nagsheadhomes.com and www.outerbankshomes4sale.com . We

INTERNATIONALLY feature your property on www.realtor.com/international.

7. Create lead generation, sales, and brand building through use of mass audience social

platforms, including Twitter, Facebook, YouTube, and LinkedIn, plus you will be pinned on

Pinterest. Additionally, we email and tweet property flyers with MLS #, pictures, and a link

to our unbranded virtual tour to active realtor brokers in the Outer Banks, Elizabeth City, and

Hampton Roads.

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8. Deliver outstanding customer service, because there are three of us that work together. One

of us is always available to answer your questions, help you when you need us, show your

property, or be available for any questions that may arise from other realtors about the sale

of your property. We stay with our clients long after the deal is done. We help them through

the closing process, from the lawyer to the utilities, and with ANY problems that can arise

even after closing.

9. Communicate with you in a timely and efficient manner regarding showings of your property.

We will email you statistics about the number of website hits as a result of our marketing for

your property and quarterly OBX market statistics.

10. Being an investor in Outer Banks real estate since 1985, licensed NC builder, licensed NC

home inspector, and Accredited Buyer Representative, I can offer our expertise and

experience to best market your property in order to maximize its value.

11. Continual review of our effectiveness keeps us on top of our game, with a change in strategy

if necessary. In an effort to get the job done as fast as possible to minimize the amount of

stress on you, we will do ALL we can do to get the sale!

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Appendix C

Sample Seller’s Net Estimate Worksheet In order to be as professional as possible, we feel that it is essential that you, as Seller, be advised as to how much you are should net from the sale of your home at the listed price. It is impossible to be exact in calculating these figures, as there are many variables such as loan balances, attorney fees, repairs, taxes, price reductions, etc. We have, however, included a sample net estimate to depict your net proceeds from the sale of your property if it were sold today.

SALES PRICE $ 169,000.00

Item Amount Real Estate Commission $ 8,450.00 5% Loan Payoff $ - Second Mortgage/Equity Line $ - Land Transfer Tax 1% $ 1,690.00 Revenue Stamps $2/1000 $ 338.00 Known Repairs $ - Attorney's Closing Fees $ 450.00 estimate Pro-rated Property Tax $ 467.00 assuming a Nov 15 closing

Misc Total Expenses $ 11,395.00 $ 169,000.00

Gross Proceeds $ 157,605.00

Property Location:1 Main St

Seller: John Doe

Prepared By: Willey-Lilley Team Date:

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Appendix D

NC Residential Property Disclosure Statement No

Instructions to Property Owners

1.

2.

The Residential Property Disclosure Act (G.S. 47E) ("Disclosure Act") requires owners of residential real estate (single- family homes, individual condominiums, townhouses, and the like, and buildings with up to four dwelling units) to furnish purchasers a Residential Property and Owners' Association Disclosure Statement ("Disclosure Statement"). This form is the only one approved for this purpose. A disclosure statement must be furnished in connection with the sale, exchange, option and sale under a lease with option to purchase where the tenant does not occupy or intend to occupy the dwelling. A disclosure statement is not required for some transactions, including the first sale of a dwelling which has never been inhabited and transactions of residential property made pursuant to a lease with option to purchase where the lessee occupies or intends to occupy the dwelling. For a complete list of exemptions, see G.S. 47E-2.

You must respond to each of the questions on the following pages of this form by filling in the requested information or by placing a check in the appropriate box. In responding to the questions, you are only obligated to disclose information about which you have actual knowledge.

a. If you check "Yes" for any question, you must explain your answer and either describe any problem or attach a report from an attorney, engineer, contractor, pest control operator or other expert or public agency describing it. If you attach a report, you will not be liable for any inaccurate or incomplete information contained in it so long as you were not grossly negligent in obtaining or transmitting the information.

b. If you check "No," you are stating that you have no actual knowledge of any problem. If you check "No" and you know there is a problem, you may be liable for making an intentional misstatement.

c. If you check "No Representation," you are choosing not to disclose the conditions or characteristics of the property, even if you have actual knowledge of them or should have known of them.

d. If you check "Yes" or "No" and something happens to the property to make your Disclosure Statement incorrect or inaccurate (for example, the roof begins to leak), you must promptly give the purchaser a corrected Disclosure Statement or correct the problem.

3.

4.

5.

If you are assisted in the sale of your property by a licensed real estate broker, you are still responsible for completing and delivering the Disclosure Statement to the purchasers; and the broker must disclose any material facts about your property which he or she knows or reasonably should know, regardless of your responses on the Disclosure Statement.

You must give the completed Disclosure Statement to the purchaser no later than the time the purchaser makes an offer to purchase your property. If you do not, the purchaser can, under certain conditions, cancel any resulting contract (See "Note to Purchasers" below). You should give the purchaser a copy of the Disclosure Statement containing your signature and keep a copy signed by the purchaser for your records.

Note to Purchasers: If the owner does not give you a Residential Property and Owners' Association Disclosure Statement by the time you

make your offer to purchase the property, you may under certain conditions cancel any resulting contract with- out penalty to you as the purchaser.

To cancel the contract, you must personally deliver or mail written notice of your decision to cancel to the owner or the owner's agent within

three calendar days following your receipt of the Disclosure Statement, or three calendar days following the date of the contract, whichever

occurs first. However, in no event does the Disclosure Act permit you to cancel a contract after settlement of the transaction or (in the case of a

sale or exchange) after you have occupied the property, whichever occurs first.

In the space below, type or print in ink the address of the property (sufficient to identify it) and your name. Then sign and date.

Property Address: __________________________________________________________________________________

Owner'sName(s):_______________________________________________________________________________________

Owner(s) acknowledge having examined this Disclosure Statement before signing and that all information is true and correct as of the date signed.

Owner Signature:________________________________________________________________ Date _________, ____

Owner Signature:________________________________________________________________ Date _________, ____

Purchaser Signature:______________________________________________________________ Date _________, ____

Purchaser Signature:______________________________________________________________ Date _________, ____

REC 4.22 Page 1 of 4

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The following questions address the characteristics and condition of the property identified above about which the owner

has actual knowledge. Where the question refers to "dwelling," it is intended to refer to the dwelling unit, or units if more than one, to be conveyed with the property. The term "dwelling unit" refers to any structure intended for human habitation.

No

1.

2.

In what year was the dwelling constructed? _______________

Is there any problem, malfunction or defect with the dwelling's foundation, slab, fireplaces/chimneys, floors, windows (including storm windows and screens), doors, ceilings, interior and exterior walls, attached garage,

Y No Representation

□

3.

4.

5.

patio, deck or other structural components including any modifications to them?...........................................

The dwelling's exterior walls are made of what type of material? □ Brick Veneer □ Wood □ Stone □ Vinyl □ Synthetic Stucco □ Composition/Hardboard □ Concrete □ Fiber Cement □ Aluminum □ Asbestos □ Other __________________________________________________________________ (Check all that apply) In what year was the dwelling's roof covering installed?______________ (Approximate if no records are available) Explain if necessary: ___________________________________________________________

Is there any leakage or other problem with the dwelling's roof?.......................................................................

□ □

□ □

□

□

□

□

6. Is there any water seepage, leakage, dampness or standing water in the dwelling's basement, crawl space, or slab? □ □ □

7. Is there any problem, malfunction or defect with the dwelling's electrical system (outlets, wiring, panel, switches, fixtures, generator, etc.)?................................................................................................................... □ □ □

8. Is there any problem, malfunction or defect with the dwelling's plumbing system (pipes, fixtures, water heater, etc.)? □ □ □

9. Is there any problem, malfunction or defect with the dwelling's heating and/or air conditioning?................... □ □

10. What is the dwelling's heat source? □ Furnace □ Heat Pump □ Baseboard □ Other __________________ __________________ (Check all that apply)................................................................................................ Age of system: _______________________________

11. What is the dwelling's cooling source? □ Central Forced Air □ Wall/Window Unit(s) □ Other __________ ___________________________ (Check all that apply) .............................................................................

12. What are the dwelling's fuel sources? □ Electricity □ Natural Gas □ Propane □ Oil □ Other ____________

□

□

□

_____________________________________ (Check all that apply) If the fuel source is stored in a tank, identify whether the tank is □ above ground or □ below ground, and whether the tank is □ leased by seller or □ owned by seller. (Check all that apply)........................................................................................................

13. What is the dwelling's water supply source? □ City/County □ Community System □ Private Well □ Shared Well □ Other _______________________ (Check all that apply)................................................................

14. The dwelling's water pipes are made of what type of material? □ Copper □ Galvanized □ Plastic □ Polybutylene

15. Is there any problem, malfunction or defect with the dwelling's water supply (including water quality, quantity, or water pressure)?..........................................................................................................................................

16. What is the dwelling's sewage disposal system? □ Septic Tank □ Septic Tank with Pump □ Community System □ Connected to City/County System □ City/County System available □ Straight pipe (wastewater does not go into a septic or other sewer system [note: use of this type of system violates state law]) □ Other

17. If the dwelling is serviced by a septic system, do you know how many bedrooms are allowed by the septic system permit?

□ □

□

□

□

□

□

If your answer is "yes," how many bedrooms are allowed? _______________________________________ 18. Is there any problem, malfunction or defect with the dwelling's sewer and/or septic system?...........................

19. Is there any problem, malfunction or defect with the dwelling's central vacuum, pool, hot tub, spa, attic fan, exhaust fan, ceiling fans, sump pump, irrigation system, TV cable wiring or satellite dish, garage door openers, gas logs, or other systems?...............................................................................................................................

20. Is there any problem, malfunction or defect with any appliances that may be included in the conveyance (range/oven, attached microwave, hood/fan, dishwasher, disposal, etc.)?..........................................................

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No Yes No Representation

21. Is there any problem with present infestation of the dwelling, or damage from past infestation of wood

destroying insects or organisms which has not been repaired?.......................................................................... □□ □

22. Is there any problem, malfunction or defect with the drainage, grading or soil stability of the property?.......... □ □ □

23. Are there any structural additions or other structural or mechanical changes to the dwelling(s) to be conveyed with the property?.............................................................................................................................. ............. □□ □

24. Have you been notified by a governmental agency that the property is in violation of any local zoning ordinances, restrictive covenants, or other land-use restrictions, or building codes (including the failure to obtain proper permits for room additions or other changes/improvements)?................................................... □□ □

25. Are there any hazardous or toxic substances, materials, or products (such as asbestos, formaldehyde, radon gas, methane gas, lead-based paint) which exceed government safety standards, any debris (whether buried or covered) or underground storage tanks, or any environmentally hazardous conditions (such as contaminated soil or water, or other environmental contamination) which affect the property?............................................. □□ □

26. Is there any noise, odor, smoke, etc. from commercial, industrial, or military sources which affects the property? □□ □

27. Is the property subject to any utility or other easements, shared driveways, party walls or encroachments from or on adjacent property?.................................................................................................................................. □□ □

28. Is the property the subject of any lawsuits, foreclosures, bankruptcy, leases or rental agreements, judgments, tax liens, proposed assessments, mechanics' liens, materialmens' liens, or notices from any governmental agency that could affect title to the property?........................................................................................................................... □□ □

29. Is the property subject to a flood hazard or is the property located in a federally-designated flood hazard area? □ □ □

30. Does the property abut or adjoin any private road(s) or street(s)?.................................................................... □□ □

31. If there is a private road or street adjoining the property, is there in existence any owners' association or maintenance agreements dealing with the maintenance of the road or street?.................................................................................. □□ □

If you answered "yes" to any of the questions listed above (1-31) please explain (attach additional sheets if necessary): _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________

In lieu of providing a written explanation, you may attach a written report to this Disclosure Statement by a public agency, or by an attorney, engineer, land surveyor, geologist, pest control operator, contractor, home inspector, or other expert, dealing with matters within the scope of that public agency's functions or the expert's license or expertise.

No Yes No Representation

32. To your knowledge, is the property subject to regulation by one or more owners' association(s) or governing □ □ □ documents which impose various mandatory covenants, conditions, and restrictions upon the lot, including, but not limited to obligations to pay regular assessments or dues and special assessments? If your answer is "yes," please provide the information requested below as to each owners' association to which the property is subject [insert N/A into any blank that does not apply]: •(specify name)__________________________________________________ whose regular assessments ("dues") are $______________ per ________________. The name, address, and telephone number of the president of the owners' association or the association manager are_______________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________. •(specify name)_________________________________________________ whose regular assessments ("dues") are $______________ per ________________. The name, address, and telephone number of the president of the owners' association or the association manager are____________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________.

* If you answered "Yes" to question 32 above, you must complete the remainder of this Disclosure Statement. If you answered

"No" or "No Representation" to question 32 above, you do not need to answer the remaining questions on this Disclosure

Statement. Skip to the bottom of the last page and initial and date the page.

Owner Initials and Date______________________________ Owner Initials and Date______________________________

Purchaser Initials and Date____________________________ Purchaser Initials and Date____________________________

Page 3 of 4

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No Yes No Representation

33. Are any fees charged by the association or by the association's management company in connection with the conveyance or transfer of the lot or property to a new owner? If your answer is "yes," please state the amount of the fees:___________________________________________________________________________

___________________________________________________________________________________

34. As of the date this Disclosure Statement is signed, are there any dues, fees, or special assessments which have been duly approved as required by the applicable declaration or bylaws, and that are payable to an association to which the lot is subject? If your answer is "yes," please state the nature and amount of the dues, fees, or special assessments to which the property is subject: ____________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________

35. As of the date this Disclosure Statement is signed, are there any unsatisfied judgments against, or pending lawsuits involving the property or lot to be conveyed? If your answer is "yes," please state the nature of each pending lawsuit, and the amount of each unsatisfied judgment:___________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________

36. As of the date this Disclosure Statement is signed, are there any unsatisfied judgments against, or pending lawsuits involving the planned community or the association to which the property and lot are subject , with the exception of any action filed by the association for the collection of delinquent assessments on lots other than the property and lot to be conveyed? If your answer is "yes," please state the nature of each pending lawsuit, and the amount of each unsatisfied judgment:________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________

37. Which of the following services and amenities are paid for by the owners' association(s) identified above out of the association's regular assessments ("dues")? (Check all that apply).

□□

□□

□□

□□

□

□

□

□

No

Yes No Representation

Management Fees.............................................................................................................. ............................ □ □ □

Exterior Building Maintenance of Property to be Conveyed........................................................................ □ □ □

Exterior Yard/Landscaping Maintenance of Lot to be Conveyed................................................................. □ □ □

Common Areas Maintenance.................................................................................................................. ...... □ □

Trash Removal.............................................................................................................................................. □ □ □

Recreational Amenity Maintenance (specify amenities covered)___________________________

Pest Treatment/Extermination.....................................................................................................................□ □

Street Lights................................................................................................................ .................................. □

Water............................................................................................................................... .............................. □ □ □

Sewer........................................................................................................................ .................................... □ □ □

Storm water Management/Drainage/Ponds.................................................................................................. □ □ □

Internet Service............................................................................................................. ................................ □ □ □

Cable.......................................................................................................................................................... ... □ □ □

Private Road Maintenance............................................................................................................................ □ □ □

Parking Area Maintenance............................................................................................................................ □ □ □

Gate and/or Security...................................................................................................................................... □ □ □

Other: (specify)

Owner Initials and Date______________________________ Owner Initials and Date_________

Purchaser Initials and Date____________________________ Purchaser Initials and Date________

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Appendix E

PREFERRED PROVIDERS

Attorneys Mike Casey Laura ~ Legal Assistant 252-441-3288 (Phone) Starkey Sharp 252-256-7450(phone)

Appraisers Beach Appraisal Lanette Power-Waters 252-449-4980 (Phone) Murphy Appraisal Service 252-255-0091 (Phone) Island Apprasial Jim

252-255-0091

Electrician Brian Orson 252-256-1560 (Phone)

Fireplace Maintenance Shore Fit Fireplaces 252-441-6901

Heating A/C Delta-T Heating A/C Ed Miller 252-256-2436 (Phone)

Home Inspections Randy Foster 252-480-0900 Robert Fincham 252-207-5600

Insurance Companies Weatherly Insurance Agency 252-480-1284 (Phone) Outer Banks Insurance JoAnne 252-441-4077 (Phone)

Lawn Care C-Level Lawn Care Chuck Snead 252-480-2567

Mortgage Companies Movement Mortgage (paid advertising) Daniel Evans 252-202-0866 (Direct)

Wells Fargo Rich Rollason 866-427-0026 (toll free) 252-216-6690 (phone) TowneBank (paid advertising) Jamie LaVier 252-261-1239( Office) 252-489-9137(cell) Prime Lending (Condos) Linda Barber 252-564-3114 (office) 252-256-0885 (cell)

Painting Randy McDaniels 252-202-3927 (Phone) RMF Mechanical & Construction Bob Frank 252-305-9496

Affordable Bill’s Bill Eger 252-489-9555(phone) Jimmy Curtain 252-202-1237

Pool Construction Caribbean Pools Elizabeth Kelley (252)489-6388

Pool Maintenance Caribbean Pools Elizabeth Kelley (252)489-6388

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Repairs (all types) D Brickhouse Construction 252-216-6549 (Mobile Phone) RMF Mechanical & Construction Bob Frank 252-305-9496

Repairs(all types)

Jason James 252-441-3176 home 252-599-2999 cell Affordable Bill’s Bill Eger 252-489-9555

Septic Tank

OBX Environmental Septic Tank Inspections Marcus Felton 252-207-1365 Atlantic Sewage Septic Pumping & Repairs 252-255-2030

Survey & Elevation Certificate

William Jones Land Surveying 252-441-3673 (Phone) Walter Norris, PLS 252-619-1620

Window Replacement CRT Sales & Service 252-441-5102 (Phone) Macko Construction 252-480-6411

Plumber Rob Johnson 252-207-7704 (Phone) Pipeworks 252-202-5753 (Phone)

Tile Specialist Kevin Osman 252-305-8262

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Appendix F

Transfer of Utilities

General: Utility companies require buyer and seller (not real estate agents) to initiate utility transfers. Please note that the utilities should be transferred by the buyer and seller at closing, not cut off by the seller. Transfers should be made effective the day of closing or as soon thereafter as practical. North Carolina Power: (888) 667-3000 Considerable personal as well as credit information is required in order to process application for service. A credit check is run only with the new customer’s permission. A letter of credit from your present utility company will help to expedite processing. To bypass this process, a security deposit of $180.00 can be made eliminating any delay in connection or transfer. A 24 hour notice is required and connection can only be made Monday - Friday. Century Link: (252) 338-9811 Business hours are Monday - Friday, 8:00 am until 6:00 pm. Preliminary credit information will be obtained from your current telephone carrier. Deposit requirement will be based on the information received. Also required will be a relative’s name and phone# or other personal contact. For repair service you can dial (252) 977-7100. www.centurylink.com Water Departments: Nags Head: Call the Water Department at (252) 441-5508 to request service transfer. Deposit is based on the number of bedrooms, (i.e. 3 bedrooms - $75, 4 bedrooms - $100). Sewage for The Villages of Nags Head is provided by Carolina Water & Sewer by calling (800) 638-0262. Kill Devil Hills: NO PHONE CALLS. A letter must be written to...

Water Department P.O. Box 1719 KDH, NC 27948

or faxed to (252) 441-6136 providing the buyer’s name, property address, mailing address and closing date of sale. A 48 hour notice is required and the deposit will be added to the bill. Dare County: (For Roanoke Island, Colington, Kitty Hawk, Duck and Southern Shores.) PLEASE CALL (252) 441-7788 and ask for the amount of the security deposit due. They will need the property address. The buyer will need to complete the following form and send in with the security deposit, http://www.darenc.com/Forms/WtrChngown.pdf. A deposit will also be required.

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Rodanthe, Waves and Salvo customers should call (252) 987-1111 while Avon, Frisco, Buxton and Hatteras customers call (252) 995-5061. Corolla Light, Buck Island, Timbuck II, Monteray Shores: Carolina Water & Sewer should be called at (800) 638-0262. A $27.00 deposit is required.

Ocean Sands: Call Currituck County Water at (252) 232-2769 with 24-48 hour notice. No deposit is required. Villages at Ocean Hills Water: Southern Outer Banks Water Systems Call (252) 232-2769. PO Box 38, Currituck, NC 27929. Pine Island, Currituck Club and Villages at Ocean Hill (Enviro-Tech) Sewer (252) 453-8665 Waste Management (Currituck Beaches Only) (252) 261-5333 Charter Communications: (888) 438-2427 The cable company requires one month’s advance payment prior to connection. This amount varies depending on the package that you choose to receive and any premium channels added.

US Postal Service: If you wish to rent a P.O. Box, you should contact the nearest Post Office. To have a street box erected, call the Post Office for directions and requirements. Local phone #’s are:

Nags Head (252) 441-7387

KDH (252) 441-5666

Kitty Hawk (252) 261-2211

Manteo (252) 473-2534

Duck (252) 261-8555

Corolla (252) 453-2552 Propane:

Synergy Gas (252) 453-8070

Ferrellgas (252) 449-0333

Amerigas (252) 261-7696

Coastal Gas (252) 491-2625

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Appendix G

Short Sale FAQ

Over time we've collected the questions we are most frequently asked by clients who were considering the short sale of their property. Some of these questions are listed below: 1. What is a short sale? A short sale is the process by which homeowners can sell their home for less money than they actually owe on the mortgage(s). This is accomplished by providing proper documentation to the lender(s) to convince them to reduce the mortgage balance to allow the sale. If the sale is approved, the mortgage lender(s) will actually take a loss on the mortgage. If a bank approves the discount of a mortgage, the home can be sold for a price lower than the amount owed without the seller having to come up with cash to cover the shortfall. The mortgage is satisfied and any foreclosure process stops. 2. How does the bank decide what price to put on the property? Every bank has a specific method of deciding how much they'll accept on a short sale. 3. What type of situation is the short sale best for? Most short sales are accomplished on properties heading toward foreclosure. This means the homeowner is at least 3 payments behind, and the foreclosure process has already begun. Recently however, more mortgages that are simply behind or "in default" are considered short sale candidates without actually being in foreclosure. Next, the homeowner typically has no equity or negative equity in the home. In other words, the total balance owed to the lender is equal to, or greater than, the price at which the house can be sold. Lastly, the homeowner must have some type of financial "hardship" which is preventing him from paying the mortgage. 4. Does a homeowner benefit from a short sale? First and foremost, a short sale relieves the stress of being in foreclosure and it allows the homeowner to get rid of their big mortgage payment and move on with their lives. A short sale allows you to stop a foreclosure proceeding and get a fresh start. In our experience, this is the primary benefit to the homeowner. On the credit side, a short sale is arguably the lesser of two evils. Having some late payments, and a foreclosure filed has already done damage to your credit. However, a completed foreclosure generally does more damage than a short sale agreed to by a lender. Obviously, a bankruptcy significantly damages your credit score.

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5. I'm an investor, can I short sale my rental property? Yes, but remember the "hardship" element which must be present. For investors there may also be some income tax issues resulting from mortgage relief. Remember to consult your tax advisor. 6. Does it matter what kind of loan I have? Possibly, in some instances there is a potential risk of a deficiency judgment or a lawsuit on a loan contract, as opposed to judicial foreclosure. Give me a call and we can discuss the specifics of your situation. 7. I am in foreclosure. Is a short sale for me? Each situation is different and must be evaluated individually. The important factors in relation to a short sale are:

a. Property in foreclosure or default b. Personal financial hardship c. Little or no equity in the property d. At least 60 days until eviction date e. The value of the home has declined below the loan amount

If you feel you fit into these criteria, give me a call and we can discuss your specific situation. 8. What if my mortgage is an FHA, HUD or VA mortgage? Short sales can still generally be accomplished on all of these types of mortgages, though each one has different criteria. 9. What options other than a short sale might I have?

a. Cure your mortgage default (bring your payments current); b. Attempt a loan modification that adjusts the terms of your existing loan; c. Refinance your mortgage with another lender; d. Try to sell your home through normal channels; e. Attempt to get your lender to accept a deed in lieu of a foreclosure; and/or f. File for bankruptcy.

10. What is "financial hardship" and why is it so important? "Financial hardship" is a critical part of the short sale equation. No matter what you hear about banks "not being in the business of owning real estate", they DO NOT easily give homeowners a break. They require GOOD REASON to give a discount for a short a sale.The only reason a lender will agree to a short sale is if they determine that a short sale will net them more money than proceeding with the foreclosure. Understanding the homeowner's financial hardship plays a major role in the lender's estimation of whether or not it will be paid in full for the mortgage. Quite simply, lenders will make the borrower pay the shortfall if there is no hardship. Many homeowners try to use a short sale as a "get out of jail free" card to dump a poor investment. Lenders will not allow this, and it is a waste of time to try. If you are employed and have some assets, but you have simply lost value in your home and want to sell, you probably cannot short sale. If you are

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current on your mortgage, it is very difficult to short sale. Lenders need to see that you simply cannot pay them before they will agree to a short sale. 11. Who owns the house after a short sale? The purchaser of the house is the owner after a short sale, just the same as in a normal sale. The mortgage lender is paid off and the previous homeowner moves to a different home. 12. What do I do about my back property taxes when I do a short sale? Just as in a normal home sale, the property taxes are the responsibility of the homeowner until the date the sale is closed. Then they become the responsibility of the buyer. If your property taxes have not been paid this will affect the negotiations between the buyer and the bank, so you must inform me or any buyer of the taxes owed. 13. Do you handle homes in my area? Our focus is Outer Banks of North Carolina. I work with other short sale specialists in North Carolina and can often refer your case to another Real Estate Broker, if I cannot help you. 14. Do you handle duplexes, apartment buildings, condos, or commercial property? We handle residential properties of all types in virtually all price ranges, but I currently do not handle commercial properties. 15. My home is already listed for sale on the MLS, but isn't selling; can I still do a short sale? Yes, you can and it is relatively common. Some lenders even require that a house be listed for sale before approving a short sale in order to show that a discount is necessary. 16. My home is really nice, why is the short sale offer price so low? Sellers often have an emotional attachment to their home and may feel a short sale offer is too low. It is important to remember a few things. First, the seller in a short sale can never receive any money in the transaction. It should therefore be of little concern what price is offered as long as the short sale is done. The only real exception is when the seller has tax liability concerns. (If there is tax liability, a lower sale price means a larger mortgage relief and a greater tax liability.) Otherwise, the price should not matter to the seller. The important factor in a short sale is whether the lender will accept the price offered. Lenders often accept prices for short sales which may be surprising to normal homeowners or Realtors. Discounts of 30% are no longer uncommon. This happens for several reasons:

a. Sellers are often in denial about how bad the market really is for housing and therefore, how far the value has declined. b. Lenders don't like the foreclosure process any more than homeowners do. Lenders incur substantial costs during a foreclosure process that can

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last more than 12 months. They have attorney fees, filing fees, publication fees, lost interest on the money that is tied up, property taxes, insurance, maintenance costs, as well as the potential for vandalism of a vacant home. This is all BEFORE having to try to sell the home as a bank-owned (REO) property and pay sales commissions. A short sale is a way to avoid some or all of these costs. If a lender calculates his cost of eviction at $50,000 for a house, they will often take a $40,000 loss on a short sale instead and be better off for having done so.

17. Who pays the real estate commissions on a short sale? The commissions are paid from the funds the buyer places in escrow and because there is no equity in the house, the lender ultimately is the one paying the entire sales commission. 18. Are short sales guaranteed to work? No. All of the criteria must be met before a bank will even consider a short sale. Even then it isn't easy to convince a bank that the market value of the home is lower than what they are owed. Even if all the paperwork has been correctly completed it can take several weeks, or even months, only to be denied. If the lender does not approve the short sale, no transaction occurs. The Purchase Agreement becomes void and the listing continues. 19. How long does a short sale take? A short sale can take 60 to 120 days or longer to complete. This is very important. The process is complicated and takes a lot of time. So to exercise the short sale option, you must act quickly. If you wait until one week before eviction, no one can help you with a short sale. It is simply impossible. DO NOT WAIT. 20. Why do I have to sign a Borrower's Authorization? The Borrower's Authorization gives the lender permission to speak to your representative about your loan. That's all it does, but it is necessary. An authorization must be filled out for each mortgage and for each Realtor or escrow officer authorized to act on your behalf. 21. I have heard that I could owe income taxes after a short sale, is this true? Possibly, but it's not that simple. There are a number of factors involved. For example, are you an investor or is the property your primary residence. Is the debt on the property "purchase money" or has the home been refinanced. If you're an investor or if the property was refinanced are you insolvent? You can see how the matter can become complex in very short order. You must consult with an attorney or CPA on this issue. However, without getting too complicated, I can provide our experience with this problem.When a lender writes off part of a loan (discounts it) the portion written off is the equivalent of a cash infusion to the owner. This "mortgage relief" is then reported as income to you by means of a 1099C form. Even if you receive a 1099C and declare it as income, there is a good chance you will owe very little tax.This is because there is an IRS rule

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regarding "insolvency" which essentially says if you are insolvent (more liabilities than assets) at the time of the short sale, you don't have to count the 1099C as income (instead you declare it, then obtain the exemption). There is an IRS form to complete to show you are insolvent. See the Internal Revenue Service website at www.irs.gov In December of 2007, President Bush signed a new law into effect providing that for a specified period of time homeowners who satisfy certain requirements will not be taxed on mortgage relief. This bill is called the "Homeowners Debt Forgiveness Act" and it may or may not apply to your situation. Again, please consult a CPA or tax adviser. 20. I am behind on my mortgage payments, but not yet in foreclosure. Can I do a short sale? Yes, this is happening with much greater regularity. Sometimes these are the most attractive short sales for both the buyer and the lender because the buyer can take advantage of the lender's ability to avoid the vast majority of the costs of foreclosure. In these cases, it is more important to have a very clear "hardship" story to explain to the lender why you are unable to make the payments. 21. My house needs a lot of repair; can I still do a short sale? Yes, though it can make the process more difficult because the price must be lower to compensate for the repairs. The key is to show the bank's appraiser all the work that needs to be done. Let me know in advance if this is the case with your home. 22. I have more than 10% equity in my home - can I still do a short sale? Probably not. However, you may be a candidate for a regular sale. 23. Other people are on the deed with me, but they don't want to short sell. Can I still do a short sale? No. All parties listed on the deed or mortgage must sign the short sale purchase agreement. There are no exceptions to this. 24. I have other liens (i.e. mechanics, IRS, court judgments) on my house; can I still do a short sale? Yes, but it gets much more complicated and will take longer. If this is the case with your home, be sure to COMPLETELY list all liens you have. Each lien holder must be negotiated with individually. A short sale in this circumstance will take substantially longer. 25. I have 2 or 3 mortgages on my house. Can I still do a short sale? Yes, each mortgage or line of credit (HELOC) can be negotiated individually. It is important to know which mortgage filed the foreclosure or, if more than one are in foreclosure, which one filed first.

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Appendix H

Sellers Checklist

Sometimes it's difficult to step back and look at your home as a prospective buyer would see it. The checklist below is a tool to help you do just that so that you can concentrate on those items that will bring you the highest reward as a seller.

First Impressions

The first thing a prospective buyer sees is your home from the curb. The

impression it makes at that moment is called "curb appeal." To increase your

home's curb appeal, be sure to do the following: a) Remove any junk or clutter from the yard. b) Have a clean, crisp lawn, a bit of fertilizer makes for a greener lawn c) Trim shrubbery and hedges. d) Wash decks and porches make sure they are stained or painted. e) Clean and paint or stain your front door. f) All exterior lights should be operational. g) Exterior windows should be clean and operational. h) Clean out gutters and downspouts. i) Walkways should be swept and free of snow or ice during winter. j) Make sure the garage door is closed.

Walking Inside Your Home

Make sure you present the interior of your home at its very best. It is not

necessary to do anything expensive, such as remodeling, but there are some

minor activities which may have some major returns. These include: a) Paint - painting often will give you the best return in sale value for your money spent.

b) Flooring - all carpeting needs to be steam cleaned. Any worn, stained or odor-causing carpet should be replaced. Any flooring that is cracked or damaged, should be replaced, if at all possible.

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c) Clutter - get rid of clutter. If something is not needed for your day-to- day life,

store it or discard it.

d) Closets - all closets should be neat, clean, and organized. e) Cleaning - the cleaner your house is, the better. Dusting, washing, waxing, polishing everything will always contribute to a good impression.

f) Lights - clean the fixtures and make sure the bulbs work. g) Windows - replace any cracked windows.

One Room At a Time

a) Entry way : o Clean and polish everything. o Make sure it's well lit. o Make it clutter free.

b) Bedrooms:

o Arrange the furniture for the flow of traffic. o Make sure its clutter free.

c) Living Room/Family Room/Den:

o Arrange the furniture for the flow of traffic, give the illusion of space. o Remove ashes from fireplaces and woodstoves. o Make sure all light switches work. o Clean the drapes o Polish, mop the floors

d) Basement, Garage, Attic

o Remove all junk and clutter (do you detect a theme?) o If the basement is damp or musty, try a dehumidifier. o Make sure these areas are well lit.

e) Kitchens

o Clean the exterior of all appliances, including the stove hood filter. o Clean counter tops and cabinet faces, the shiner, the better. o Clutter free o Remove magnets and messages from the front of the refrigerator. o Clean floor, consider new if it is badly worn. o If you have ceramic tile, make sure the grout is clean, there are

whitening products.

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The Final Touches

Often you will have a few hours’ notice before showing your home. Before the showing there are a few extra things that can be done. These include: a) Keep It Light - whether day or night, a lit house gives a "welcome

home" impression. So turn on all the lights, indoor and outdoor. Open all curtains and drapes to let in maximum light. Your home looks more cheerful and it also prevents harsh shadows.

b) Stay Out of Sight - prospective buyers may feel like intruders if you are home during a showing. Allow the Realtor the opportunity to speak freely with buyers and emphasis your home's best features. If possible, take a walk, visit the library, go shopping or take the kids to the park. If you cannot leave, try to remain out of sight do not and accompany the buyers from room to room.

c) Keep the Scent Pleasant - but don't use scented sprays; they're too obvious and some people find them offensive. For a pleasing fragrance, consider adding a few drops of vanilla extract on a stove burner, or boil water and add some cinnamon. Refrigerator cookies are also quick and easy to bake. All of these items will make your home more attractive to a viewer.

d) The Trash - empty the trash in the kitchen and any other waste baskets before a showing. Garbage does not send a positive message, even small amounts.

e) A Comfortable Temperature - set your thermostat at a comfortable temperature.

f) Mood Music -- Turn off the television and turn soft background-type music.

g) Take Fido or Puss with you - it's best to try and take your pets with you while your home is being shown. If that's not possible, keep them outside. Animals under foot do not help a showing.

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Moving! Everybody hates moving – doesn’t matter if you hjave done it several times, it is never an easy task. Here's some tips you may find helpful

a) Notify the post office of your new forwarding address. b) Cancel subscriptions that would not or cannot be forwarded. c) Change addresses on your bank profile and checks. d) Arrange for utilities and telephone at your new location. e) Plan for needs of children and pets during the move f) Plan for sufficient cash during the move. g) If you're packing and moving yourself - make arrangements with

local moving supply dealers and truck rental agencies. If not, make sure you have a quotation all set up in advance.

h) Start the "weeding out" process for what to keep and what to dump. i) Pack one room at a time. j) Keep the weight of your boxes reasonable. k) Start packing and marking every box according to contents and

room it will go in.

l) If bubble wrap is not available, use towels and blankets to wrap fragile items.

m) If possible, pack audio-video and computer equipment in their original boxes.

Finally…..Do not pack valuables, carry them with you.

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Appendix I

Seller Information

Service Provider and Contact Info

Hazard Insurance

Annual $

Flood Insurance Annual $

Wind Insurance Annual $

Electric Annual $

Water Annual $

Propane Annual $

Telephone/Internet Annual $

Cable/Satellite Annual $

Pest/Termite Annual $

Trash/Sewer Annual $

Maintenance Supplies Annual $

Other Maintenance Annual $

Landscaping Annual $

Pool/Hot Tub Annual $

Rental Company Annual $

Other Rental Fees Annual $

Recycling Service Annual $

Home Owners Association

Annual $