Buyer Presentation - Best Listing Presentation.com

1. STEPS TO SUCCESS For Buying A Home

2. Buying a home can be one of the most exciting adventures in your life. It can also be one of the most overwhelming if you try to go at it alone. When you are looking at and negotiating on properties listed for sale, the Seller will have a real estate agent working for them. You should also have an exeprienced Realtor® working for you, guiding you and looking out for your best interests. And the best part is that hiring a Realtor® as a buyer, it is basically at no cost to you. In most circumstances, the Buyer’s agent is paid by the Seller from the proceeds of the sale. Introduction

3. Dating back to 1875, the Prudential name, along with the“Rock of Gibraltar” logo, has stood for strength, stability, integrity and trust. Prudential has a worldwide presence with 15 million customers in more than 30 countries. Prudential Real Estate members beneﬁt from this name recognition and are able to leverage the reputation that Prudential has created. When home buyers and sellers see our yard signs and marketing materials, they link the Prudential “Rock®”logo with remarkable service, quality and exceptional value, backed by a name that has been trusted for more than 135 years. • The Prudential name is one of the most recognized brands in the world. • Prudential Financial ranks 74th on the 2008 FORTUNE 500 list of America’s largest corporations and 221st on the 2008 FORTUNE Global 500 list of the world’s largest corporations. Prudential Ranks Fourth on FORTUNE® 2009 World’s Most Admired Companies List. • 1 out of 5 Americans do business with a Prudential Company. • Our powerful network has more than 62,000 sales professionals and 1,940 oﬃces nationwide generating more than $129 billion in annual sales volume. YourCompany – Nationally & Internationally www.YourCompanyRE.com Buying A Home In 7 Steps Introduction A Little About Who We Are

4. John Smith is the owner and broker of Your Company Real Estate, a full service real estate company located in Your City, AA. Commitment, drive, and a track record for providing the highest level of customer care is what sets John part. John graduated with honors from the School of Business at State University In Yourstate in 2001. John joined Prudential North America in 2001 and was, in less than 1 year, named the company’s Top Producer, and was later promoted to Regional Sales Manager. In 2004 John left Prudential North America to start Other Company Real Estate, a full service residential real estate brokerage serving residents of Long Island, NY. John was responsible for day-to-day operations; hiring, training, management, marketing, accounting and client relations. In 2009 shortly after moving to Yourcity, John started Your Company serving buyers and sellers of real estate in Yourcity, while providing the best possible service, and signiﬁcant cost savings. John Smith Licensed Real Estate Broker www.YourCompanyRE.com Buying A Home In 7 Steps Introduction A Little About Who We Are

5. Associate Broker, Accredited Buyer Representative • Full-time Real Estate Professional since 2000 • Yourcity Board of REALTORS® - Board of Directors • Originally from southern Yourstate • Yourcity Resident for over 20 years • Loves Skiing, Hiking, Running, Golf • Extensive Real Estate New Development Experience • Prudential Top 100 (47) Agents Nationally (out of 70,000) • Prudential Top awards – 6th out of 120 Yourcity Agents • Prudential Peak Performers Everest Award • Prudential Chairman Circle Platinum Award • Prudential Chairman Circle Diamond Award • Prudential Peak Performers Everest Award Jane Smith Licensed Real Estate Agent www.YourCompanyRE.com Buying A Home In 7 Steps Introduction A Little About Who We Are

6. Buying A Home in 7 Steps Step 1 - Buying Consultation Step 2 - Loan Pre-Approval Step 3 - Searching for a Home Step 4 - Viewing Homes Step 5 - Develop a Pricing Strategy Step 6 - Writing and Negotiating an Offer Step 7 - Managing the Transaction Through Closing

7. There are 3 types of Agency Relationships between parties in a real estate transaction: • Seller’s Agent - An agent who represents the Seller • Buyer’s Agent - An agent who represents the Buyer • Dual Agency (Limited Agent) - An agent who represents both the Seller and Buyer When you select YourCompany Realty to assist you in finding and purchasing a home, we become your“Buyer’s Agent.” Typically the seller already has an agent representing them, who is working hard for their best interests, not yours. You too should also be represented with an agent who will be working on your behalf and looking out for your best interests. We will help you to find a home, evaluate pricing, negotiate offers, and guide you throughout the entire transaction to ensure a successful closing. The greatest part of hiring a Buyer’s Agent is that in most cases there is no cost to you! We are compensated for our services only when we successfully close on a home for you. When a seller lists their home with a Seller’s Agent, a commission amount for the Seller’s Agent and for the Buyer’s Agent is pre-determined and paid for by the Seller upon the closing of the sale. Working for You as Your Buyer’s Agent www.YourCompanyRE.com Buying A Home In 7 Steps Step 1 Buying Consultation

8. Motivation - Why have you decided to buy a home? Timing - Are you ﬂexible in timing or are we working towards closing before a certain date? Pricing - What is your price range? Have you begun talking with a mortgage professional? Decision Making - Will anyone else (family member, ﬁnancial advisor) be involved in the transaction? Location - What areas of town do you prefer, or are you not yet sure? Home Type - Are you looking for a condominium, townhome, single family residence or land? Home Size - What size of home are you looking for? How many bedrooms, bathrooms, etc? Lot Size - What size of property are you looking for? Floorplan - What is important to you in the layout of a home? Architectural Style - Is there any particular style you prefer - rustic, traditional or contemporary? Amenities - What additional features will you be looking for? (pool, hot tub, clubhouse, golf, etc.) What Exactly Are You Looking For? DETERMINE YOUR NEEDS What is Most Important to You? www.YourCompanyRE.com Buying A Home In 7 Steps Step 1 Buying Consultation

10. How Much Can You Afford? It can be discouraging to find that your salary won't stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It may be better to buy a modest home now and look at purchasing your "dream home" in a few years. A Pre-Approval Adds Strength to Your Offer Once you have been successfully pre-approved for a mortgage with a local lender, you will appear to be a stronger buyer to sellers. When we submit an offer, we will include a written letter of your pre- approval. This demonstrates to the seller that you are indeed a serious and capable buyer. Securing a Pre-Approval for Your Home Loan www.YourCompanyRE.com Buying A Home In 7 Steps Step 2 Loan Pre-Approval

11. There are many variables to consider when choosing a mortgage loan. To figure out what loan program will be best suited for your needs you will need to talk with a local mortgage professional for guidance in weighing the many different options. Your income, job history, and credit rating can determine what programs are available to you. Also other considerations such as how long you plan to be in the home can also be an important factor. As a real estate agent, we cannot answer these important mortgage questions, but we will be sure to help you get to the right mortgage provider to help you with this very important part of the process. Below is a list of mortgage programs and definitions to be familiar with. Interest Rate - What are current interest rates? What rates are you being quoted? Fixed Rate Mortgage - A mortage where the rate remains the same through the life of the loan. Adjustable Rate Mortgage (ARM) - A mortgage where the rate changes based on a financial index. Down Payment - What amount do you have for a down payment? How much will you really need? Origination Fee - A charge levied by a lender for underwriting a loan. Typically 1% of the loan amount. Points - A point equals 1% of a mortgage. Should you pay "discount points" to reduce the loan's interest rate? Mortgage Term - 15, 20, 30 year loan terms. What is best for you? Conventional Mortgage - A fixed-rate, 30-year mortgage that is within the limits set by FNMA & FDMC. Jumbo Mortgage - Exceeds the limits set by FNMA & FDMC. Usually has a slightly higher interest rate. FHA Mortgage - Usually requires less money down, but has tighter guidelines. Can you qualify? Balloon Mortgage - Can be a great option for short term situations, but will you be ready to pay it off at the end? Interest-Only Mortgage - This will give you a lower monthly payment, but is it the best route to go? Pre-Payment Penalty - If you pay the loan off early, or refinance, will there be a penalty or fee? Mortgage Industry Conditions - Any issues with the current mortgage industry that could affect your financing? What Type of Loan is Best? www.YourCompanyRE.com Buying A Home In 7 Steps Step 2 Loan Pre-Approval

12. Just like any major purchase, it is usually worthwhile to shop around for the best deal. It is also important to choose a local lender with long term experience. Below we have a few recommended mortgage professionals we have worked with. Recommended Local Lenders www.YourCompanyRE.com Buying A Home In 7 Steps Step 2 Loan Pre-Approval What is your debt-to-income ratio? This is something that lenders take very seriously. Your overall debt should not be more than 40% of your income, and your housing debt should not be more than 32%. What 32% of your income will buy depends on where you want to live. In rural or downtrodden areas for example, it can buy a very comfortable residence and ample acreage. In highly sought-after urban areas however, it may not even buy a 400 square foot bachelor suite. Jill Smith Wells Fargo Home Mortgage Phone: (444) 555-7777 Email: jill.smith@wellsfargohomemortgage.com Jill Smith Wells Fargo Home Mortgage Phone: (444) 555-7777 Email: jill.smith@wellsfargohomemortgage.com Jill Smith Wells Fargo Home Mortgage Phone: (444) 555-7777 Email: jill.smith@wellsfargohomemortgage.com

13. • Do NOT change jobs, become self-employed or quit your current job! • Do NOT buy a car, truck, boat or RV! • Do NOT use your credit cards excessively or miss payments! • Do NOT transfer balances or open new credit cards! • Do NOT pay oﬀ any credit cards or other revolving debts! • Do NOT spend money set aside for closing costs! • Do NOT withhold debts or liabilities from your loan application! • Do NOT open new credit accounts to buy new furniture, appliances, etc! • Do NOT make any inquiries into your credit! • Do NOT make large deposits or withdrawals from your bank accounts! • Do NOT change banking accounts! • Do NOT co-sign any loans for anyone! Inquire with your lender before considering any of the above. Until You Close on a Mortgage Loan... www.YourCompanyRE.com Buying A Home In 7 Steps Step 2 Loan Pre-Approval

15. As we begin our search we will utilize our many resources and strong network of information to seek out the best opportunities and ﬁnd the home that best suits your needs. • REALTOR® Listings / Multiple Listing Service: The most up-to-date home information resource! • New Home Construction Developments • “Pocket”Listings Our Home Searching Resources www.YourCompanyRE.com Buying A Home In 7 Steps Step 3 Searching for a Home The Value of the Multiple Listing Service As a member of the Board of REALTORS®, we have access to the Multiple Listing Service (MLS). The MLS is an extensive database that contains information on all listed homes in the area. When sellers decide to list their home with an agent, their agent posts all the information for that home into the MLS database. All relevant information on a home is available such as location, size, price, layout, features and photos. As your buyer’s agent we can enter desired information based on your search criteria and the MLS will analyze the database and list all available homes that match your needs.

16. Once we can narrow down your search criteria such as location, city, neighborhoods, number of bedrooms and bathrooms, overall square footage, etc., we can then set up an automated search for you on our MLS. Whenever a new property becomes available you wil receive an email update and will know about it before most other potential buyers. You’ll also receive an update on price reductions as well. No more missing out on great buys! Automated“Hot Sheet”Emails www.YourCompanyRE.com Buying A Home In 7 Steps Step 3 Searching for a Home

17. www.YourCompanyRE.com Buying A Home In 7 Steps Step 3 Searching for a Home Over 90% of home buyers use the internet as a tool when searching for a new home! Now more than ever people are accustomed to using the benefits of technology to better gather information. Many home buyers start with surfing the web, where you can easily and quickly view pricing, details and photos of many homes right from your living room. It is a quick way to educate yourself on the local real estate market. On our website you can also save your favorites to view later and keep track of the homes you want to go see. Our website allows you to easily search in many different ways: • Search by city, community or subdivision • Search by price range • Search by school district • Search by single-family, townhome or condo • Search bank foreclosures and short sales Search for Homes on YourCompany.com

18. Short Sales and Bank Foreclosures www.YourCompanyRE.com Buying A Home In 7 Steps Step 3 Searching for a Home A short sale is a property where the seller owes more to the bank than what the property is worth. For example the home may only be worth $300,000 but the seller owes $350,000. So how do they sell the home? They will need to get special permission form the bank (third party approval) to sell the home for less than what is owed. For a buyer It can be discouraging to wait for this lengthy process. Often a short sale can take months to obtain the approval from the bank, especially if there are mutiple mortgages or additional liens on the property. If you are trying to coordinate a move based on your current home selling or lease ending, this can be a very diﬃcult process to go through. A bank owned or foreclosure property is a property where the owner failed to make the mortgage payments, and the bank completed a foreclosure process and is now the owner fo the home. Banks are not in the business of owning homes so they typically will price the home low to get it sold quickly. But buyer beware, bank owned homes play by diﬀerent rules. These homes are sold“as-is”with no warranties on the condition of the home. Additionally bank owned sales are often sold with limited Title Insurance coverage.

20. Your role and participation in this stage is obviously crucial to our success. You may even find or preview homes on your own (Open Houses) but it is very important to keep us notified and included in the process so we can better assist you to be sure your best interests are are fully met. Determine Neighborhoods Prior to Viewing - We can do an area tour to examine & discuss potential neighborhoods. We encourage you to spend some time driving through desired areas on your own to get the feel of different locations. Clearly Know Your Criteria - Think about what is the right fit for you. We select homes together based on the criteria you give us. We may drive by many other homes on our property tour that may look interesting from the exterior. If it is not on our list, it is most likely because it was priced too high, home size is too small, did not have enough bedrooms, etc. It is best to stay focused on the homes that do meet your needs. Immediately call us if you find a home - In a newspaper or magazine ad, driving by a“For Sale By Owner" sign, or visiting an open house. When approached by other REALTORS® - They will appreciate you letting them know you are working with us. Narrowing Your Search www.YourCompanyRE.com Buying A Home In 7 Steps Step 4 Viewing Homes

21. Now the fun part begins, time to go view some homes. Now that we know what your price range is, and what your wants and needs are, we can schedule to see the homes you are most interested in. Be Mindful of the Appointments Made - It takes a great deal of time to set up a smooth, productive property viewing tour. Please do not be late, and we must stay on track with the timing of all the homes. Many of the homes we will be viewing are primary residences and families must make plans to accomodate our visit. Comfortable Shoes - Most homes will ask us to remove our shoes, so wear easy slip-on/oﬀ shoes. Eat Prior to Tour - You will feel much more alert & productive if you simply eat before our tour. Take Notes - We will supply you with a clipboard, pen and a sheet for each home in the order we plan to view them. Be sure to take descriptive notes on each home - good, bad, etc. After viewing many homes, they all seem to blend together when trying to think back. Share these notes with us, it will help us to better know what you like and do not like. If you have questions on a property, write them down so we can work on getting answers from the seller's agent quickly. Scheduling Viewing Tours www.YourCompanyRE.com Buying A Home In 7 Steps Step 4 Viewing Homes

23. As a member of the Board of REALTORS® we have access to the Multiple Listing Service (MLS). With the MLS we can prepare a report that analyzes values of properties comparable to the one you want. We can also gather background information on the desired property such as how long it has been on the market, pricing changes, or if it has gone through a previous listing period. Using this valuable information, we can assist you in determining a realistic, yet attractive oﬀer price for the desired home. How Does the Seller’s Asking Price Compare to Recent Market Activity? Comparing the Seller’s Pricing to Recent Sold Homes www.YourCompanyRE.com Buying A Home In 7 Steps Step 5 Develop a Pricing Strategy 4 Bedrooms, 5 Bathrooms 3450 Square Feet Asking Price: $455,000 3 Bedrooms, 4 Bathrooms 3230 Square Feet Sold for: $432,000 6 Bedrooms, 4 Bathrooms 4050 Square Feet Sold for: $445,000 4 Bedrooms, 5 Bathrooms 3200 Square Feet Sold for: $437,000

24. Using a Comparative Market Analysis as a Guide A Comparative Market Analysis (CMA) is the strongest tool we use when estimating the potential market value for a home. As a member of the Board of REALTORS® with access to the Multiple Listing Service, we can prepare a report that analyzes comparable homes in your area. Using this valuable information, we can assist you in determining an attractive, yet realistic offer price for the home. A Comparative Market Analysis highlights similar homes in your area that are: Active Listings - Homes that are currently available for sale. We can see what comparable asking prices are, but remember these homes have not yet received an acceptable offer. Under Contract - Homes that have received and accepted an offer and give a good indication of realistic pricing. Sold - Looking at the prices paid for recently sold homes provides the best foundation in determining a home's most accurate market value. Once adjustments are made for square footage and features, we can make a qualified recommendation for the offer price on the home. Expired - Homes that have gone through the duration of a listing period, but failed to sell. Many factors could be responsible such as lack of marketing or the home’s condition, but most often it is simply because the home was priced too high. www.YourCompanyRE.com Buying A Home In 7 Steps Step 5 Develop a Pricing Strategy

26. We will write an offer for your desired home in the form of a Real Estate Purchase Contract (REPC) - a state approved form that is used to present an offer. The REPC is a 6-page contract with many details to carefully fill in. Each section should be thoroughly read and reviewed before any decisions are made. All accepted terms of the REPC must be carried through the life of the contract. The signed, accepted REPC (with all addenda & counteroffers) is a LEGALLY BINDING CONTRACT. Below are some of the items that we will need to pay close attention to: Purchase Price - You want a good buy, but your offer must also be attractive to the Seller. Included Items - What is included - Refrigerator, Washer & Dryer, Hot Tub, Furniture, Artwork, etc? Excluded Items - What is excluded - Refrigerator, Washer & Dryer, Hot Tub, Furniture, Artwork, etc? Water Rights - Do they apply? We may need to employ the services of a Water Lawyer. Earnest Money - This is the initial deposit. The importance of this item is often overlooked. Method of Payment - Will this be a cash sale, traditional mortage or seller financing? How much down payment? Special Assessments - Are there any outstanding or upcoming assesments? Who pays, Buyer or Seller? Possession - When does the property legally change ownership? (You receive keys and move in) Seller Disclosures - What information about the home should you be asking for? Due Diligence Condition - What "outs" will you have? Appraisal Condition - Will the sale be contingent on the home's appraisal amount? Financing Condition - Will the sale be contingent on you securing financing? Additional Earnest Money - Will you be offering an additional deposit to your earnest money? Additional Addenda - Are there any additional terms or addenda to consider? Home Warranty - Will you be asking for a home warranty? Will you ask for the Seller to pay for it? Mediation - If a dispute arises, how are you and the Seller directed to handle it? Seller Disclosure Deadline - What should the deadline date be for the Seller to provide all seller disclosures? Due Diligence Deadline - What should the deadline date be for you to complete due diligence? Financing & Appraisal Deadline - What should the deadline date be for you to cancel based on loan denial? Settlement Deadline - What should the deadline date be for you and the Seller to complete closing? Response Deadline - How long should you allow for the Seller to respond to your offer? After considering all terms... The Seller may Accept, Counteroffer, or Reject the Offer. Writing an Offer: What important factors should you consider? www.YourCompanyRE.com Selling Your Home In 7 Steps Step 6 Writing and Negotiating an Offer

28. Receive the Seller's Disclosures This is the process where the Seller is required to provide information relating to the property. • Seller Property Condition Disclosure - filled out, signed and dated from Seller. • Commitment for the policy of Title Insurance, showing easements, encroachments and liens. • HOA information, budget, minutes, assessments, CC&R's, and survey, water rights if applicable. • Copy of any leases, rental, and property management affecting the property not expiring prior to closing. • Notice of any claims and/or conditions relating to environmental problems & building or zoning code violations. Your Due Diligence (Evaluations and Inspections) – IMPORTANT DATE! This is the time period provided to you as the Buyer to learn, review, inspect and decide if acceptable. • Carefully review all items provided in the Seller's Disclosures. • Schedule any physical condition inspections, tests and evaluations deemed neccessary. • Review the costs, terms and availibility of homeowner's insurance for the property. Your Right to Cancel or Resolve Objections If you determine the Evaluations and Inspections to be unacceptable, you may: • No later than the Due Diligence Deadline, cancel the contract by written notice to Seller. • Or no later than the Due Diligence Deadline, resolve in writing any objections. Remaining Contingencies and Financing In the final steps of the transaction we will coordinate and complete any remaining details. • Is the sale and/or mortgage ontingent upon an appraisal? At what amount did the property appraise? • How is your financing going? Are there any last minute issues for securing your mortgage? • Is the sale contingent upon you selling your previous home? How is that sale going? • Schedule a final pre-settlement walk-through inspection. Settlement (Closing) – DO NOT SHOW UP IN YOUR MOVING VAN! Settlement, and then Closing shall take place only when all of the follwing occur: • Buyer and Seller have signed all documents required by REPC, Title, Lender, etc. • Any monies required to be paid have been deliverd by Buyer and/or Seller. • The proceeds of the new loan have been "funded", then all closing docs are "recorded" at the County Recorder. • Hand off keys, garage door openers, manuals, warranties. • Help you to find a new home in this area or offer relocation assistance. www.YourCompanyRE.com Buying A Home In 7 Steps Step 7 Managing the Transaction Through Closing

29. Lets Get Started! There is so much thought, knowledge and preparation that goes into a successful home-buyer process. We will be your resourceful guide through every step. Lets get started right away and we’ll find your dream home soon.

30. Thank You for Your Business Much of our business is based on referrals from satisfied clients. If you know anyone who could benefit from our services, please let us know how we can be of help!