Property Profile and Market Analysis

James and Kellie 11501 Northpark Ave North, Seattle 98113

Prepared by:John Madrid, Source Real Estate

www.seattleprohomes.com

July 15, 2005

• Seattle native with thorough knowledge of area neighborhoods and market trends

• Over 15 years living in the North Seattle area. Currently in Wallingford.

• Member of National Association of Realtors and Seattle/King County Association of Realtors

• Accredited Buyer’s Representative designation, the benchmark for of excellence in buyer representation

• 10 years of extensive sales, marketing, business development & negotiation experience with Microsoft Corporation

• MBA in Marketing from University of Michigan and BA from University of Washington

• Certificates in Construction Management & Residential Design

• Consultant to University of Washington Business School and Seattle area Fortune 500 companies

• Member of Seattle Works Board of Directors

• Results driven and passionate for both real estate & providing outstanding service

About Source Real Estate

• Since 1991, the professionals at Source Real Estate have helped over 3,000 Northwest families enjoy home ownership

• We are a small, local team of customer focused professionals

• We embrace technology to deliver outstanding value to our customers

• We are dedicated to giving you great, personalized service and saving you money

My Background

• Typical real estate transactions cost 3% for the Listing Agent plus 3% for the Selling (Buyers) Agent

• Many homeowners think this is too much and we agree

• We provide full service but represent you for only 1 ½% Listing Office commission

• We encourage you to pay the typical 3% Selling Office commission for maximum Realtor cooperation

• Your total commission is 4 ½%

• How much can you save? See below for what your savings could be on a variety of sales prices:

How Source Real Estate Will Save You Thousands

Sales Price Typical 3% Listing Office Commission

Source Real Estate Listing Office Commission

Savings

$800,000 $24,000 $12,000 $12,000

$600,000 $18,000 $9,000 $9,000

$400,000 $12,000 $6,000 $6,000

$300,000 $9,000 $4,500 $4,500

• Technology has made it much easier to buy and sell a home, we pass the savings onto you

• In 1997, 18% of buyers used the Internet to search for their home

• In 2003, 65% of buyers used the Internet

• Today, 100% of Realtors used the Internet to search for homes for their clients

• The fundamentals of marketing a home still count

• 86% of buyers work with a Realtor

• 69% of buyers used yard signs in their home search

• 48% of buyers used open houses in their home search

• Buyers use multiple sources of information in their home search

How Are These Savings Possible?

You Get the Best of:• Internet Marketing – your complete listing is posted to the Northwest Multiple Listing Service

(NWMLS) and automatically downloaded to some of the areas top websites including:- Source Real Estate- Coldwell Banker- Windermere- John L Scott- Realtor.com

• Professionally photographed and design full color flyers

• Yard signage

• Broker and Public open houses

• Aggressive marketing to Realtors – I follow-up on every showing

• Help you set the optimal price for your home based on comparable homes recently listed & sold

• Be objective and provide valuable feedback with regard to preparing your home for sale

• Aggressively market your home to both Buyers and real estate agents

• Keep you updated

• Serve as your advocate by qualifying and negotiating with prospective Buyers to make sure you’re getting top dollar

• Negotiate the sales contract on your behalf

• Comply with the disclosures required by law

• Provide an estimate of the closing costs and net proceeds

• Help you prepare for a smooth closing of the transaction

• Assist with Buyer financing, as appropriate

What Else Will I Do For You?

When You List Your Home with Source Real Estate

• 4 “P’s” of how quickly a home sells

• Product = the home itself; # of beds/baths, sf, age, style, condition, etc

• Place = location; proximity to parks, schools, bus lines, shopping/dining, busy streets, etc

• Price = list price; absolute and relative to competition

• Promotion = marketing; MLS, open houses, flyers, follow-up with agents and buyers

• While your agent is primarily responsible for the Promotion piece of the mix, I can advise you on the other elements

• Though a Comparative Market Analysis (CMA) is one of the best tools for determining what a home might sell for, ultimately the marketplace will determine the true value

• 4 Excitement Price Points that will determine sale success:

• Priced above market value and showable = Generates low excitement

• Priced right and not showable = Generates medium excitement

• Priced above market value and not showable = Generates very low excitement

• Priced right and showable generate max excitement

Pricing Plan for Your Home

Time on Market in Weeks

Activity

1 72 3 4 5 6

This graph illustrates the importanceof pricing your home at a realistic pricefrom the very beginning. A property attracts the most excitement and interest from the market when it is first listed. The highest chances of a sale occur when its new to the market.

• Sellers Market = more buyers then available homes

• Well priced homes may receive multiple offers and sometimes above the list price

• Homes are selling fast – sense of urgency driving up average prices

• Interest rates are still at historic lows which means more people can afford more home

• Above conditions are not expected to last indefinitely

• The closing date – When does the Buyer want to take title?

• Date of possession – When does the Buyer want to take possession?

• The earnest money - Look for the largest earnest-money deposit possible; since it is forfeited if the buyer backs out, a large deposit is usually a good indication of a sincere Buyer

• Fixtures and personal property - Check the list of items that the buyer expects to remain with the property and be sure it’s acceptable

• Repairs - Determine what the requested repairs will cost and whether you’re willing to do the work or would rather lower the price by that amount

• Contingencies - See what other factors the Buyer wants met before the contract is final. Inspections, selling a home, obtaining a mortgage, review of the contract by an attorney? Set time limits on contingencies so that they won’t drag on and keep your sale from becoming final.

• Contract expiration date - How long do you have to make a decision on offer?

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2003

Why Now Is A Great Time to Sell

7 Terms to Watch For in a Purchase Contract

• Trim bushes so they don’t block windows and cut down on light

• Add new barking around plantings• Buy a new doormat• Put a pot of bright flowers (or a small

evergreen in winter) on your porch • Put new doorknobs on your doors• Put a fresh coating on your driveway• Edge the grass around walks and trees• Keep your garden tools out of site• Be sure kids put away their toys• Buy a new mailbox• Upgrade the outside lighting

Low Cost Ways to Sell Your Home for More

11 Steps to Preparing for an Open House

• Use warm, incandescent light bulbs for a homey feel

• Polish or replace your house numbers• Clean your gutters• Put out potpourri or burn scented candles• Buy new pillows for the sofa• Buy a flowering plant and put it in a window

you pass by frequently• Make a centerpiece for your table with fruit or

artificial flowers• Replace heavy curtains with sheer ones that

let in more light• Buy new towels, shower and soap• Put a seasonal wreath on your door1

• A clean home is essential; dirt will turn off a prospect faster than anything• Mow your lawn, and be sure toys and yard equipment are put away• Set out potpourri or fresh baked goods for a homey smell• Set the table with pretty dishes and candles• Secure your valuables, jewelry, and money. Although your Source Real Estate agent will be

on site during the open house, it’s impossible to watch everyone all the time. • Turn on all the lights. Even in the daytime, incandescent lights add sparkle• Send your pets to a neighbor or take them outside. If that’s not possible, crate them or confine them to one room (a basement or bath)• Consider removing one or two major pieces of furniture out of every room to create a sense of spaciousness• Put away kitchen appliances and personal bathroom items to show more counter space• Lay a fire in the fireplace or put a basket of flowers there if it’s not in use• Turn on the sprinklers for 30 minutes to make the lawn sparkle

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2003

• Give your forwarding address to the post office, usually 2 to 4 weeks ahead move

• Notify your credit card companies, magazine subscriptions, and bank of the change

of address

• Develop a list of friends, relatives, and business colleagues who need to be notified

of the move

• Arrange to have utilities disconnected at your old home & connected at new one

• Cancel the newspaper

• Check insurance coverage for move. Usually movers only cover what they pack.

• Clean out appliances and prepare them for moving, if applicable

• Note the weight of the goods you’ll have moved, since long-distance moves are usually

billed according to weight.

• Have a “first open” box with the things you’ll need most—toilet paper, soap, trash bags,

scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and

toothpaste.

• Owner’s manuals for items left in the house

• Warranties for any items left in the house

• A list of local service providers—the best dry cleaner, yard service, etc.

• Garage door opener

• Extra sets of house keys

• Code to burglar alarm and phone number of monitoring service if not discontinued

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2003

Moving Tips for Sellers

Items to Be Left for the New Owners

• City of Seattle - www.cityofseattle.net

• Seattle Public Schools - www.seattleschools.org

• Seattle PI – www.seattlepi.com

• Seattle Times – www.seattletimes.com

• Seattle Times School Guide - http://schoolguide.seattletimes.nwsource.com

• Seattle Time Neighborhood Guide - http://classifieds.nwsource.com/realestate

• Seattle Times/PI Un/Subscribe - www.seattletimescompany.com/subscribe

• US Post Office Change of Address - https://moversguide.usps.com

• Gas - Puget Sound Energy 1-888-225-5773

• Electricity – Seattle City Light 206-684-3000

• Garbage/Water/Sewer – Seattle Public Utilities 206- 684-3000

• TV/Internet – Comcast 1-877-824-2288

• TV – Direct TV 1-888-238-7177

• Phone/Internet – Verizon 1- 800-483-3000

• Phone/Internet – Qwest 1-800-244-1111

Useful Links and Numbers