Kathy Smith's Book

Sell & Buy How to...

Kathy Smith

YOUR AGENT FOR LIFE Multi-Million Dollar Producer realtor®, abr, cta, sfr, srs

cell 269.998.2793 ksmith@jaquarealtors.com

Jaqua

414 W. Milham Ave. Realtors Portage, MI 49024

Table of Contents Home Staging

pages

24-37

pages

4-15

pages

Overview of the 16-23 S elling Process

Overview of the Buying Process

2

Make Kathy Smith Your Agent for Life I love what I do! Positive, energetic and highly

motivated professional, I am committed to providing my clients with exceptional customer service. My passion for life and helping others realize their dreams is obvious. As a full time Realtor, I recognize the value of hard work, dedication and putting my clients as top priority. For most, purchasing a home is the largest investment they will ever make. It is my goal not to just sell you a home, but to give you sound advice to insure a wise buying decision. For the past 6 years, my knowledge and understanding of the Real Estate Market, along with outstanding communication skills has resulted in a successful track record and ranking me in the top 5% of the Greater Kalamazoo Board of Realtors.

I have lived in Kalamazoo for 27 years and enjoy sharing all the many opportunities it has to offer family’s relocating to the area. Prior to joining Jaqua Realtors, I successfully co-owned a furniture repair and restoration company. I have 4 adult children, enjoy remodeling investment properties, antique hunting, cooking, and spending time with family and friends. Lately my biggest passion has been flipping homes with my son, a licensed builder.

We love blending our two skills together to create a stunning home.

Integrity... Passion…Results.

It’s in everything I do!

Who has influenced me the most in my life?

My dad is definitely my hero. He was one of a kind with his infectious, boisterous laugh. He was strong, courageous and a perfectionist. My dad’s handicap was not known to everyone. The fact that he was an amputee never deterred him from doing the things he loved. Through his actions he showed us we could overcome anything in this life. His determination and positive attitude has left a mark on me forever. I pray that I pass his legacy on to others through my life’s actions.

3

The Selling Process

Pre-Listing Appointment

Review Agency Disclosure

Agent Tours the Home

Notation of All Features

The Jaqua Difference

Listing Appointment Sign Documents

Agency Disclosure

Listing Agreement

Seller’s Disclosure

Lead-Based Paint Disclosure

Marketing Elements

Yard Sign Installed

Buyer Prospecting

Show Home to Prospects

Professional Photo Session

Ad Copy Drafted

Entered into the MLS

Staging Home

Home Flyer Created

Entered to Websites

Follow Up on All Showings

Title Searched

Conduct Open House

Sales Agreement

Offer Drafted & Presented

Netsheet Reviewed

Loan Preapproval Reviewed

Counter-Offer (If applicable)

Agreement Secured

Inspections

Structural & Mechanical

Pests

Environmental

Well Water and/or Septic

Title Issues

Negotiate Remedies

Loan Commitment

Loan Application

Credit Report

Buyer’s Preapproval

Appraisal

Closing Preparation Closing

Lender Closing Documents Requirements Scheduled Ordered Satisfied

Sign Proceeds Yard Sign Documents

Received

Removed

Change of Address

Cancel Utilities

Cancel Home Insurance

Boundaries & Encroachments Verify Buyer’s Documentation

Final Loan Approval Payoffs Ordered

Closing Figures Reviewed Final Walk-Thru

Exchange of Keys

4

Comparative Market Analysis A comparative market analysis or CMA is an effective tool for estimating your homes’ market value. As a real estate professional, I provide a complimentary CMA to those interested in determining the value of their home under the current market conditions.

A thorough CMA includes a comparison of sold properties, active properties and similar properties in the area.

Sold Listings

Pricing Strategy

Homes that have sold within the past three to six months are your comparable sales. These comparable sales help to indicate your market value.

How much will an eager and willing buyer pay for your home?

Buyers don’t know what you paid for your home, what personal memories you have attached to your home or the improvements you have made.

The price of your home is critical to the selling process.

As your agent, I will incorporate your financial goals, the market value of your home, and other selling objectives into your personal pricing strategy.

5

Comparable Sales Comparable sales are properties that most closely resemble your home.

Factors that affect your home’s market value: Location • Age of construction Square footage • Upgrades & condition

Market conditions are also a factor, such as: • Interest rates • Buyer demand • Price of recently sold homes • State of the economy • Seasonal demand

Factors that have NO effect on your home’s market value: • The original purchase price • Expected cash proceeds from the sale • What others say your property is worth • Money needed to purchase a new home • The mortgage balance on your property “Kathy Smith is just the most fantastic Realtor we have ever worked with. First of all, she helped us find the most amazing home to purchase in only two weeks. Kathy didn’t just point out the positive along the way, she pointed out the necessary fixes with each home we looked at. Secondly, she sold our original home in under one month. She knows what to look for in a house based on your needs and she just works way too hard. Kathy Smith is amazing as a professional Realtor and as a person.”

—The Shermans

6

Marketing Action P lan My approach to selling your home is extensive and significantly different from other real estate agents in the area. I will develop a custom marketing program for your home, highlighting it’s unique and special features that will attract a broader audience.

Objectives: 1. Bring qualified buyers into your home 2. Communicate with you the results of our activity 3. Negotiate the highest dollar value for your home

Suggestions, Guidance & Advice I provide advice and suggestions to make to your home to increase its marketability in today’s market I will keep you up to date on current conditions and trends affecting the home finance market I represent you on all offers and negotiations to achieve the best possible price and terms 7

Discover the Jaqua Difference Marketing Strategy INTERNET MARKETING 87% of buyers utilize the Internet to search for homes. The online presence I provide my listings attracts a high volume of traffic from more than 30 different websites.

PRINT MARKETING A full color resume will be designed to market your home’s best features. Just Listed postcards or Open House invitations can also be prepared to target potential buyers.

PROFESSIONAL PHOTOGRAPHY According to The Wall Street Journal, “listings with better photos command higher asking prices.” A professional photography session will be scheduled for your property.

NEW LISTING PRESENTATION Your listing will be introduced at the weekly sales meeting. Your home features will be highlighted and pictures will be displayed on the screen for agents to view your home.

OPEN HOUSES An Open House will be scheduled at your convenience to increase exposure and receive feedback from potential buyers.

AGENT AVAILABILITY Buyers want information NOW. A licensed Realtor® is available 7 days a week until 9 p.m. at the Portage and Kalamazoo offices, while other companies are closed on weekends and evenings.

8

RELOCATION OPPORTUNITIES The Jaqua firm is an active member of the Leading Real Estate Companies of the World®, a referral network of over 120,000 associates and 650 firms worldwide. As the only member in our region, Jaqua receives buyer referrals from all over the country, giving your home more exposure to relocating buyers. Approximately 30% of buyers are from other communities.

FEEDBACK We are committed to providing you with a full range of feedback to gain important perspective, from follow-ups after showings, to comments from open house guests— Feedback is critical.

PROVEN RESULTS Jaqua Realtors’ overall market share has increased more than any other competing brokers’ as a direct result of our teamwork and innovative marketing.

FAMILY OF SERVICES Over the years, we’ve created and fostered an inhouse Family of Services to include mortgage, title, insurance, property management, staging, moving and home services to meet all the needs of our clients.

“My husband and I totally trust Kathy. She sold a house for us three years ago and has now helped us find a downtown condo to buy. She works hard to give you what you want, offers advice and supports you throughout the process. I recommend her every chance I get.

We really love her!!” - Chris Kindy 9

Marketing Listings • Jaqua listing sign in your front yard • Listing your home on the MLS with descriptive marketing remarks • Distributing home resume using professional photos of your home • Creating postcards utilizing professional graphic designers • Marketing your property on 50 different websites • Announcing your recently listed home at our weekly company sales meetings • Promoting your home to all our agents through email announcements • Promote home on social media • Prospecting every day to find prospective buyers • Contacting agents who have sold/listed a home in your market • Advertising in the Kalamazoo Gazette open houses and local paper as needed “I highly recommend Kathy Smith as a professional agent to sell or purchase your home. My relationship with Kathy is what every home seller dreams of...brief! Kathy had already done her homework with comparable homes, current selling values, etc...she showed up prepared to do the job! I would recommend to anyone wanting a “brief” relationship with a real estate agent to contact Kathy Smith at Jaqua Realtors.”

—Kenneth Berry

10

Preparing Your Home Seemingly simple changes can sometimes make a world of difference.

Here are some valuable and practical suggestions for showing your home at its best!

Exterior

• Trim bushes, keep lawn watered, clear leaves/snow • Pull weeds from cracks in sideways and driveways • Add mulch to flower beds or areas with no grass • Put away bikes, yard tools and garbage cans

• Reseal asphalt driveway, as needed • Wash or paint front door if necessary • Make sure the windows sparkle • Clean or replace light fixtures • Replace the numbers on your house • Add a new welcome mat

11

Interior FIX

Any dripping faucets, burned out lights or anything that implies maintenance.

DE-CLUTTER To make storage and living spaces appear larger and feel more spacious

CLEAN Pay close attention to countertops and appliances making them sparkle, to ensure your home appears appealing and maintained.

DE-PERSONALIZE Take down family photos, refrigerator magnets, or anything that would prevent the buyer from picturing themselves in the home.

CONSIDER LARGE PROJECTS— WISELY This may include new carpet, neutral paint, and/or updates to the kitchen & bathroom(s).

12

Preparing for Showings

“Kathy is great! She not only helped us purchase our first home, but helped us sell it two years later for 51% more than our purchase price! If you’re looking for a knowledgeable, professional, highlymotivated real estate agent who genuinely listens and understands how to position you for success, she is the one. I highly recommend Kathy to anyone looking to buy or sell their home.”

—Mike McMillen

• Turn on all of the lights, even for daytime showings. Light and bright homes show the best!

• For the comfort of both your pets and the buyers, take animals to a friend’s house. Be sure to clean the litter box and clear the yard from pet deposits.

• Avoid stale or unpleasant odors such as pets, smoking, incense or intense air fresheners. Replace these scents with pleasant ones— fresh flowers or home baked cookies. Also, consider cooking foods with strong odors another time, not while you’re trying to sell your home.

• Soft background music is nice, but make sure the TV is off.

“Kathy did it again! She sold our house quickly and worked hard to get us top dollar. We worked with Kathy years ago when we sold and purchased a home and will call her again when the time comes to buy/sell!”

- Jacob & Janette Brown

13

Selling Your Home The selling process is not finished after the sales agreement is signed. Once you accept an offer, I will set up a series of inspections and assist with the many requirements found in a typical sales agreement.

Accepting an Offer You can choose to accept, decline or make a counter offer, all of which sometimes contain clauses and hidden costs. I can help explain the bargaining process and assist you in negotiations, which could include: • Price and terms • Personal property included and/or reserved • Type of financing • Time deadlines, closing & possession dates • Earnest money, seller concessions • Deadlines for loan approval

Closing On Your Home Closing is a meeting where the closing agent determines what payments and credits are owed to the seller, what amount is due from the buyer, and if the title is properly recorded in local records along with any mortgage liens. Most homes close 30 to 45 days after a sales agreement is signed.

During Contracting and Closing, I Will: • Present & Negotiate Offers • Coordinate Home Inspections & Repairs • Coordinate with Lender • Schedule Appraisal(s) • Submit Home Warranty (if any) • Exchange Keys at Closing • Handle Any issues with Buyer

14

Home Selling Process REQUIRED DISCLOSURES: RESIDENTIAL PROPERTIES 1. State of Michigan Seller’s Disclosure Statement 2. Federal Lead-Based Paint Disclosure 3. Jaqua Affiliated Business Disclosure 4. GKAR Agency Disclosure

FINANCING CONSIDERATIONS 1. Pre-approval 2. Appraisal concerns 3. Property condition issues 4. Suitable location for loan program being considered 5. Verifications of credit score, employment, savings, child support if applicable and tax returns

TITLE CONSIDERATIONS

CUSTOMARY INSPECTIONS

1. Order Owner’s Policy

Typically Buyers’ Responsibility:

2. Order Mortgage Policy

1. Home Inspection 2. Pest Inspection 3. Radon Testing 4. Mold, Asbestos, & Environmental Concerns 5. Zoning 6. Survey

Typically Sellers’ Responsibility: 1. Well Construction & Code Compliance 2. Water Quality Testing 3. Septic Location, Sizing, Code Compliance and Operation

3. Confirm any Recording Requirements 4. Check Building & Use Restrictions and/or Deed Restrictions 5. Flood Plain Certification 6. Check Tax & Special Assessment Status 7. Confirm Lender Contact Info, Order Payoffs 8. Rescission of Homestead Tax Credit 9. Order as Required: Deed, Land Contract, etc.

CLOSING CONSIDERATIONS 1. Title Work & Closing 2. Title Insurance Commitment 3. Title Insurance Rate Chart 4. Tax Proration Worksheet 5. HUD-1 6. Inspectors 7. Pre-Approval Letter 8. Personalized Financing Information 9. Estimated Net Proceeds Form

15

S taging Home

16

Home Staging Staging is what you do after you’ve cleaned, decluttered, painted, made minor repairs; it’s all about dressing the house for sale.

It’s about adding the small details: the lipstick, mascara and, for simplicity, a stunning strand of pearls.

Over the years, I have seen home staging payoff big time for many of my sellers. Not all sellers are receptive at first, but when we try it their way and the home doesn’t sell because it’s missing that “oomph”, home staging always seems to turn it around. You can do large scale home staging or small scale, but the important thing is you really should engage some aspect of home staging to sell for top dollar and quickly.

Over Half (58%) of Seller’s Agents believe the staging increased the value of the home 1-20% 17

Staging Consultation I started staging homes in 2010 and have built an inventory of items to stage my listing to SELL SELL.. I provide staging decor, over 120 canvas and furniture to help potential buyers envision life in your home.

I offer a staging consultation to provide advice and assistance to ALL my clients to help prepare their homes for the real estate market. market.

You will have the option to utilize my additional staging services and the possibility to bring in some staging items to help stage your home.

Some services include: • Moving furniture

• Home accessioning

• De-cluttering recommendations

• Finishing touches

• Hanging artwork

• Selecting paint colors

• Beds to stage vacant bedrooms

• Hardware, fixtures and finishing touches

18

25% of Home Sellers are paying and getting their home staged before listing it *National Association of Realtors 2017 Profile of Home Staging Report

Successful Results “My house was on the market with another agent and it sat with little to no interest. I wasn’t living in the property so it was vacant. The other agent had me paint walls and that was it. Kathy came in in December and staged my whole house and in less than a month it was SOLD. I was very impressed with her efficiently and execution.”

- Paul Zak

“We knew we needed to sell fast. We were in the process of buying our home with the contingency that our house sold first. Kathy suggested that we lightly stage the house for showings and photos.

With her help and staging accessories and our furniture it sold in 11 days.”

- Tom Hemmingway

19

What I Do.. .

As your REALTOR® I will come in assess and suggest what needs to be done from minor repairs, declutter, paint, or just simply de-personalize your home, to accessory options, new bedding, or possibly furniture options from my inventory.

“I work for a real estate investment team. Upon completion of the house we knew it we wanted it gone fast. The only was to do that was by staging. Kathy came in saw the vision of our work and executed it perfectly. She came in and made the home feel lived in without the clutter.

In a week the house was sold.”

- Robert Hazel

20

Proven Results..

“I was part of a community where I transitioned the units from apartments to condos. The units weren’t selling very fast until I called Dan Jaqua and requested a high energy go-getter.

Kathy staged and sold 33 units in that community. I got her involved in another community that was struggling to sell and she did it again! “ - Mike Seelye

21

Shorter Days on the Market “My first flip was a big undertaking. I thought I could get by with selling the house empty. I was wrong! I reached out to Kathy and she knocked it out of the park. From couches, to beds, to paintings and tables my once empty house was now full and gorgeous. Shortly after it was staged it sold! Thanks Kathy!”

- Rachel Erny

Over 77% of buyers find it “easer to visualize the property as their future home” when it’s staged. *National Association of Realtors 2017 Profile of Home Staging Report

22

What I Have to Offer I will bring in a vast array of items to spruce up the house. Here is a small sampling of items I often use to dress each room.

• Mirrors

• Area & throw rugs

• Cocktail & end tables

• Plants

• Sofas

• Shower curtains & towels

• Silk flowers

• Accent chairs

• Breakfast set

• Floor & table lamps

• Wall art

• Bedding and beds

“My house never looked better!” I said out loud when Kathy left our house. Our house was listed with another agent who had recommended we take 80% of our possessions and put it in storage and our house stood still on the market. Kathy came into our home worked with what we had plus brought in her very own staging inventory in and sold our house in 3 days. Super thrilled how the power of staging impacted the sale of our house!” - Jason and Alicia Meister

23

Overview of the Home Buying Process Mortgage Pre-approval Obtaining a Mortgage Pre-approval allows you to shop with the comfort and assurance of knowing your pre-approved price range. Also, sellers respond more favorably to offers from pre-approved buyers.

Narrowing the Field We now begin the process of narrowing down the field to the property that most closely matches your priority list. Properties can be viewed initially through the internet, by driving by, or by arranging a private showing.

Selecting a Real Estate Agent Working with the right agent reduces the stress and confusion that often accompanies the purchase of a home. A reputable professional who listens to your needs, makes you feel comfortable and communicates well with you is key.

Open Houses The Jaqua site has the ability to generate an Open House Driving Route, with all MLS listings. Users can select which properties to add to the tour and view an area map complete with turn-by-turn directions. Explore this feature and more at www.jaquarealtors.com.

Client Portal A client portal will be set up for you.

This will allow you to view, through emails, all the homes currently on the market that meet your criteria. It will also update you as new houses enter the market or when a price reduction occurs.

24

The Home Buying Process Get Loan/Bank

Review/Consult Agency disclosure, confirm buyer/ agent relationship

Provide ALL docs bank needs

Show Properties

Find the

Make Offer (by REALTOR®)

(based on your credit, assets and income)

Accepted Offer (by Seller & Buyer)

Appraisal (by Bank)

Mortgage Application Bank

Searching Period

Hire Kathy Smith

Home Inspection (by Lic. Inspector)

Under Contract

Repair Addendum (by Seller & Buyer)

Underwriting (by Bank)

Title Report/Survey (Free/Clean)

Bank Clearance/ Settlement Agency

Possession & Transfer Utilities

25

Find A Qualified Buyers Representative How often do you purchase real estate? Once, twice, three times in your lifetime? So you can hardly be expected to know all the ins and outs of such a major transaction complicated by so many details.

What is a Buyer Representative?

How is My Buyer’s Representative Compensated?

Defined most simply, a buyer’s representative (or buyer’s agent) is an advocate for the buyer - not the seller - in a real estate transaction. Real estate laws and regulations vary from state to state, but buyer’s representatives usually owe full fiduciary (legal) duties, including loyalty and confidentiality, to their buyer-clients and must keep their clients’ best interest in mind throughout the entire transaction.

Many buyers wonder if they’ll pay more if they use a buyer’s rep. In almost every case, home sellers have already agreed to pay a commission to the buyer’s agent. Although buyers seldom pay real estate commissions, this is an important detail you should discuss with your ABR® and clarify in the representation agreement.

Why Choose an Accredited Buyers Representative?

Issues to Discuss When Choosing a Buyers Representative

Not all buyer’s representatives are equal. All REALTORS® (members of the National Association of REALTORS®, or NAR) must subscribe to a strict Code of Ethics, which helps ensure that you are treated honestly.

But all REALTORS® with the ABR® designation has gone a step further, by completing Accredited Buyer’s Representative training, specialized education offered by the Real Estate Buyer’s Agent Council (REBAC).

In addition to knowing the dynamics of the local market, REALTORS® with the ABR® designation understand the special needs of buyers. They have additional knowledge and experience that takes them a step beyond an agent who only concentrates on listing property for sellers. An ABR® can provide you with valued assistance throughout the transaction and help you make informed decisions that will lead to a successful home purchase.

References Can you share the names and contact details for the three past buyer-clients who can provide references?

Knowledge What are your areas of specialized knowledge? What types of housing or neighborhoods do you know best?

26

Assess Your Wants vs Needs

Consider...

Finding a new home can be exciting. But deciding what you truly want and need - and can afford- can be challenging. Making these decisions begins with setting priorities among many different preferences.

Most home buyers invariable face trade-offs.

Your ABR® can play a key role in helping you sort of your options. I can also offer important insights specific to your local market. Be sure to discuss therse and other needs and preferences with your ABR®.

Number of Bedrooms/Bathrooms Total Square Footage Garage or Parking Space for Cars Number of Levels Style of Home Specialty Rooms (home office, hobby space, etc.)

Storage Needs (closets, basement, outdoor shed, etc.)

Commuting Considerations Ideal Price Proximity to Desirable Features (schools, hospitals, etc.)

Lot Characteristics (shape, landscaping, facing direction) Trade-offs (improvements you can make, investment) Resale (how long to do plan to live there, choice of location)

“Kathy found us a great house that looked like it was pending (she could see that the deal was falling thru), so had we not had a REALTOR®, we never would have looked at this house! She helped us look at it thoughtfully and helped us make our best offer...and get the house! We couldn’t be happier with her responsiveness, peppy attitude, and great personality.” - Sarah Steele 27

Searching For Your Home Evaluating a Neighborhood Spending time in a neighborhood can tell you a lot about it, but not everything; you also need to do some research. Ask yourself “What kind of neighborhood do I want to live in?”

Some factors may be more important that others, including: Neighborhood Profile (population, level of commercial development) Household Data (family type, household income, education, occupation) Crime Rate (research these details) Quality of Schools (important for resale, average test scores, graduation rates, spending per student, percents of college-bound students)

Amenities (shopping, transportation, parks, restaurants, cultural institutions, natural resources)

Viewing and Comparing Homes Review your home preferences after viewing several homes to prioritize your needs and wants. Setting up a comparison table with top needs listed first will help you evaluate different properties.

Ideally, a home should “feel right.” I can help refine your search if you are not finding what you want,.

Client Portal I will set up a custom Client Portal based on your search criteria which will email you properties that match your results immediately as they enter the market. Your client search portal is a powerful, search-engine, and is mobile-responsive to provide efficient online house-hunting experience. You will be able to view property details, photos, location on a map, save favorite properties and hide listings.

“Kathy Smith is positive, energetic, knowledgeable, professional and approachable. She first impressed us when we met her at an open house. We had shied away from using a Realtor until we met Kathy.

Talking to Kathy is more like talking to a friend who happens to be in the real estate business. This makes the home buying process feel less daunting—we actually enjoyed the experience. As first time home buyers, we needed as much guidance as possible and because of inexperience, we were demanding clients. Kathy was patient, available, and always happy to show us more homes and answers to more questions. In addition, Kathy’s experience purchasing and remodeling homes brings a unique perspective to searching for a home that not all Realtors have. When we were ready to make offers on homes that didn’t quite meet our objectives, she would point out the pros and cons of every decision. She treated us as long-term clients with honesty and respect. Her ability to tell us “no” even if it meant more work for her made her very valuable to us. We highly recommend Kathy to anyone looking to buy or sell a home.”

-Oliver Howell & Samantha Cook

28

Making an Offer Factors That Affect the Price I can provide a plethora information to help you understand how much a home is worth. Recent sales in the neighborhood, the price of similar homes that are also “for sale,” the length of time the home was been on the market, even the price the seller paid for the home may be available. Sometimes these are extremely important; other times they are less relevant. Ultimately, the matter boils down to whether you decide that this is the best home for your needs and whether you and the seller can agree on a price that you are comfortable with.

Review Disclosures When you have successfully narrowed the field to your top choice(s), I can obtain a copy of the Seller’s Disclosure Statement and the Lead-Based Paint Disclosure Statement for the property. Examine them thoroughly before drafting an offer.

The Sales Agreement This is extensive and very detailed. With my help, we will review each paragraph of your offer to purchase.

Earnest Money The seller often will evaluate the degree of commitment you have in the transaction by the amount of earnest money. The earnest money is applied to your closing costs. (Usually 1% of the sales price) Presenting the Offer I will present your offer to the seller or the seller’s agent who will accept, counter or reject it. When the terms are settled, you and the seller sign the Purchase Agreement—defining the terms of the sale and at this time your earnest check will be deposited.

Multiple Offers If other buyers are interested in the same property, the seller may be comparing your offer to others. Multiple offers do occur, even in slow markets. Do not panic or withdraw your offer. It is possible you have submitted the winning bin. Stay involved for at least one round of negotiations and set your maximum price.

Closing Costs These costs are approximately 4% of the sales price of the home. The buyers are responsible for these costs, unless negotiated in the sales agreement for the sellers to pay.

29

Financial Considerations Determine Your Credit Score Because any mortgage lender will review your credit history, it’s wise to verify your credit rating in the beginning of your home search. Even if you’re sure you have an excellent credit history that you don’t know about. Identifying and resolving any credit problems to improve your credit rating will provide benefits, such as preferred rates from lenders and home insurers.

Acquiring a copy of your credit report is simple.

Three major credit bureaus - Equifax, Experian, and TransUnion - compile consumer credit data. The Fair Credit Reporting Act allows consumers to obtain one free credit report from each of the three major reporting bureaus every 12 months.

To obtain a copy of your report, visit annualcreditreport. com or call 877-322-8228. While you can find many other sources for credit reports, this is the only one authorized by the Federal Trade Commission.

Select a Lender When selecting a lender, your goal is to obtain a mortgage loan with terms that are most favorable to your situation. In order to find the best home loan for you, contact several lenders to discuss what the offer, their rates, closing costs, and other fees. If you already have a mortgage, contact that institution too.

Gather as much information as you can online and through phone calls. Once you’ve done your homework and narrowed your options, it’s best to meet with a lender face-to-face. This allows you to ask specific questions and decide if this is the right lender for you.

Are they offering you attractive financing, as well as service and support in completing your transaction?

Rates and Duration Two of the most important factors in choosing a mortgage are the interest rate and duration. Combined with the amount you borrow, they will largely determine the amount of your monthly payment.

30

Rates and Duration, continued The interest rate is the percentage of the loan amount you are charged to borrow money; the higher the rate, the more you pay. Buy your monthly payment will also hinge on the duration of your mortgage. Paying off the same total loan at the same rate over less time will result in a higher monthly payment. To determine monthly payments for different rates and terms, use the mortgage calculator at REALTOR.com®.

Mortgage rates change, subject to various economic factors. To be more certain of what they will pay, most buyers lock in an interest rate when they apply for their mortgage. A lock means that the rate in the approved application will be valid for a set period of time - during which the deal must be closed - regardless of what market interest rates are at the time of closing.

With fixed-rate mortgage, usually 15- or 30-year terms, you pay the same interest rate over the life of the mortgage. With an adjustable-rate mortgage, or ARM, the interest rate changes after a predetermined number of years.

Pre-Qualification or Pre-Approval Typically you will first pre-qualify for a mortgage, then get pre-approved before you find the specific home you wish to purchase. It’s essential to understand the difference, and to clarify which your lender is providing.

Pre-qualification: An informal determination by a lender or mortgage broker stating the amount of the mortgage you can afford.

Pre-Approval: A guarantee in writing by a lender to grant you a loan up to a specified amount.

There are two advantages of obtaining a loan pre-approval as early as possible in your home buying process: • Sellers will find any offer you make more attractive if you are pre-approved for a mortgage.

• The length of time before closing can be shorter if you’ve secured a mortgage approval prior to signing a contact to purchase a property.

How Much Can I Afford?

Lenders look at a variety of factors when evaluating how much mortgage you can afford for your home, but these two are the most important.

• Your monthly mortgage payment, as a percent of your gross (pretax) income.

• Your total debt load, including your mortgage payment, relative to your gross income.

31

The Logistics Scheduling an Appointment with a Lender The application fee is an out-of-pocket expense used to order the appraisal and credit report. An appraisal is a formal, written estimate of the home’s current market value and is required by your mortgage lender to secure the loan. Generally range from $350–$450.

Wood Destroying Insects In Southwest Michigan there are several types of insects that damage wood and treatment is sometimes necessary. I will help schedule a licensed inspector to check the property carefully for wood destroying insect activity. If a treatment is required, I can help you obtain competitive bids and compare procedures to be sure you are comfortable with the treatment company. Inspections generally range from $60– $120.

Structural/Mechanical Most homes need minor repairs or improvements. To reduce major surprises, I will help you hire a qualified professional to inspect the home. The home inspection provides an in-depth look at the basic systems and helps you to become more familiar with your future home. Inspections generally cost about $350–$600. Discuss the possibility of a home warranty.

Radon Testing The only way to know whether your home has elevated radon levels is to test your home.

There are no physical signs to warn you of the presence of radon, and it cannot be detected with the senses.

Since radon levels can vary significantly from home to home, you can’t use your neighbor’s test results to determine whether or not your home has a problem.

Testing generally ranges from $100–$150.

De-Winterizing/Winterizing Bank owned homes are about $125–$175.

32

Repair Request If you find an unacceptable condition as a result of your inspections, I will help draft a repair addendum to be presented to the seller. Typically this is a Health and Safety issue/request.

Well and Septic The appropriate local health authority should check to make sure you have a system that properly provides acceptable drinking water and that properly discharges wastes. Review the report with the sanitarian if you have any questions or want recommendations for water testing beyond the typical tests for nitrates and bacteria. Usually testing costs about $250–$800 and is paid by the seller, unless the property is bank owned. Environmental Discuss the need for any environmental inspections with your home inspector, the local health sanitarian or other state or local government personnel that may be aware of hazards in your area.

Property Boundaries To identify potential boundary problems and use limitations, you may choose to obtain a copy of a surveyor’s report showing approximate boundaries, recorded easements, setbacks and building locations. Costs usually range from $500–$1500.

The Lender Your Lender processes your mortgage loan application and sends letters of verification to places such as your employer and bank to confirm the information you have provided. When the lender has all the documents necessary to complete your file, it is submitted to the financial institution’s underwriting department for loan approval.

Cash Offers It is recommended that the buyers have an appraisal and purchase home owners insurance, even though it is not required.

33

Protecting Your Investment Final Conditions Often a lender will issue an approval subject to certain conditions being satisfied. Typical examples include paying off a debt, making specific home repairs or improvements, and providing the lender with additional verification reports.

Approval Your lender is now prepared to provide the funds you need to complete your purchase.

Title Work I will coordinate ordering title work (an owner’s policy and a mortgage policy) and, if requested, a Mortgage Report or Survey. Review the title work and restrictions to ensure your intended use of the property is permitted.

Taking Title There are different ways to take title to a property. Discuss options with your attorney and/ or the title company.

Homeowner’s Insurance Research insurance companies’ coverage for a one-year homeowner’s policy—covering the home’s replacement value. The policy and paid receipt must be brought to the closing, or in some cases be provided to the lender prior to closing. To start your escrow account for taxes and insurance, the lender will also need to know the amount of your annual premium as soon as possible.

Generally range from $500–$1200.

“Kathy Smith tirelessly showed us homes off and on over the last 2 years, while we decided whether we would leave our lifelong home, friends and community. When we were ready to make an offer on one of 2 homes Kathy felt and advised the 2nd home would be a better fit for us. Her advice wasn’t for the commission since the 2nd home was listed for less than the first home, however, she was exactly right.

We both are so happy with our new home. Her customers get the benefit of her experience. Kathy Smith 34 exemplifies professionalism.” - Carla Vanbuskirk

The Closing Pre-Closing Walk-Through I will coordinate a walk-through within 72 hours of closing to reassure you that the home you agreed to purchase has not changed.

Transfer utilities into your name Closing The lender puts the closing package together and sends it to the closing office. The Title Company will let us know your final closing costs, usually done the day before closing. You should bring a cashier’s check for the final amount made payable to the Title Company and your drivers licenses to the closing.

Everything you sign at the closing will be explained to you before you sign it.

You may have an attorney present at the closing, or have the documents sent to your attorney for review the day before closing.

If you wish to read and review documents in more detail, I can arrange for you to receive documents in advance. There will not be time at the closing to go over the documents word-by-word. You will receive a copy of everything you have signed at the closing. At the end of the closing, there is a final discussion of the possession date and transfer of utilities—garbage, telephone service, keys, etc.

35

Moving Day You found your home. The contract has been signed and the closing date set. Now, it’s time to move. You should, however, begin planning for moving day will in advance.

Over time, many of us accumulate many things. So you might begin with a general assessment of your possessions, disposing of clothes, furniture, and other things that you no longer want or need. Simply put, the less you move, the less it costs. To reduce some of the cost of moving, consider holding a garage sale or donating items to charity.

Move-in & Enjoy YourNew Home!

Packing Tips • When packing, go room by room • Make a list of what’s in each box • Label all boxes by room • Cushion the bottom and side of boxes first • Pack heavy items in smaller boxes and lighter items in larger boxes • Boxes should not exceed 30 pounds • Use rope and elastic to secure furniture doors and drawers instead of tape, which can damage Never pack: • Combustibles • Jewelry • Flammables • Important Papers • Corrosive liquids • Prescription medicine

36

Home Buying Process REQUIRED DISCLOSURES: RESIDENTIAL PROPERTIES 1. State of Michigan Seller’s Disclosure Statement 2. Federal Lead-Based Paint Disclosure 3. Jaqua Affiliated Business Disclosure

FINANCING CONSIDERATIONS 1. Pre-approval 2. Appraisal concerns 3. Property condition issues 4. Suitable location for loan program being considered 5. Verifications of credit score, employment, savings, child support if applicable and tax returns

4. GKAR Agency Disclosure

TITLE CONSIDERATIONS

CUSTOMARY INSPECTIONS

1. Order Owner’s Policy

Typically Buyers’ Responsibility:

2. Order Mortgage Policy

1. Home Inspection 2. Pest Inspection 3. Radon Testing 4. Mold, Asbestos, & Environmental Concerns 5. Zoning 6. Survey Typically Sellers’ Responsibility: 1. Well Construction & Code Compliance 2. Water Quality Testing 3. Septic Location, Sizing, Code Compliance and Operation

3. Confirm any Recording Requirements 4. Check Building & Use Restrictions and/or Deed Restrictions 5. Flood Plain Certification 6. Check Tax & Special Assessment Status 7. Confirm Lender Contact Info, Order Payoffs 8. Rescission of Homestead Tax Credit 9. Order as Required: Deed, Land Contract, etc.

CLOSING CONSIDERATIONS 1. Title Work & Closing 2. Title Insurance Commitment 3. Title Insurance Rate Chart 4. Tax Proration Worksheet 5. HUD-1 6. Inspectors 7. Pre-Approval Letter 8. Personalized Financing Information 9. Estimated Net Proceeds Form

37

Testimonials “We have worked with other REALTORS® in the past and were extremely impressed by Kathy’s commitment and dedication. We were so impressed, in fact, that we have referred several of our friends to Kathy, one which also purchased a home. So if you’re looking for a REALTOR® that is going to work hard at finding the perfect place for you, Kathy is more than qualified. Just make sure you wear comfortable shoes while out with her, as she will have the appointment filled with as many places as you can stand to look through.”

—Tracy and Ryan Lancaster “We relocated to the Portage area from Illinois and we were blessed to have found such an outstanding REALTOR®. Kathy was terrific from the very first phone call. She listened to our wants and needs and she was available at all hours of the day. Anyone who is looking to buy, sell or relocate locally, Kathy is the perfect choice. Kathy goes above and beyond with the mortgage companies, inspectors, title companies and assists with other necessary arrangements. She is one of a kind and she is in the profession that she was meant to be in. She should be REALTOR® of the year every year.”

—John and Carrie Jackson “We have worked with Kathy Smith twice now. Once to buy a home and then later to sell that same home. Over the years we’ve been married, we have bought and sold many homes and have worked with many different REALTORS® in several states. Kathy is a tireless worker and she works hard to represent her clients. She makes herself available and is willing to go the extra mile no matter what.

In addition, she is extremely knowledgeable about all the paperwork parts of buying and selling houses and if you call her with a question, she is able to quickly access your paperwork and give you a fast answer. She has worked in the Kalamazoo community for many years now and knows the lending institutions and title companies very well. For us, she was a cheerful and dedicated worker and we have no hesitation whatsoever in recommending her.”

—Don and Kelly Tompkins “Thank you so much for everything you did for us helping to find our house! We are so excited and couldn’t have done it without you! We will definitely recommend you to anyone in need of a Realtor and use you again.”

—Laura & John Kreider

38

Streamsong South Portage free standing Farm style or Craftsman exteriors Condominium homes

•

Starting at $286,000 and up

•

Floor plans from 1,270 to 1,906 sq feet with 2/3 bedrooms

•

Options for fireplace, sunroom and finished daylight or walkout lower levels

•

5 star energy rated

•

2 car garage (22x22)

•

Custom build your own or model available

•

Club house with kitchen, large entertaining area with fireplace, wall of architectural glass windows overlooking in-ground swimming pool; two bathrooms and changing areas plus outdoor shower

•

Streamsong is a Streamsong is a 39 acre development with approximately 100 units to be built in 3-4 phases

•

Built by TMR BUILDERS, a SDV Development, LLC

Learn more at streamsongcondominiums.com “I was part of a community where I transitioned the units from apartments to condos. The units weren’t selling very fast until I called Dan Jaqua and requested a high energy go-getter. Kathy staged and sold 33 units in that community. I got her involved in another community that was struggling to sell and she did it again! After seeing her proven track record I knew I wanted her to represent my new endeavor of 101 luxury free-standing condominiums at Streamsong located in South Portage.”

- Mike Seelye

39

Why Kathy?

Kathy’s passion for Real Estate and helping her clients find the home of their dreams has resulted in numerous referrals and ranking her in the top of Greater Kalamazoo Board of REALTORS®, in just 3 short years.

Kathy maintains a strong commitment to continuing education and remains on the Real Estate Industry’s cutting edge. Some of her designations include: Accredited Buyers Representative (ABR) specializing in helping buyers successfully complete a transaction, from negotiating skills to navigating each step of the way until closing Seller Representative Specialist (SRS) assisting sellers through the sale process of listing, negotiating, inspections and closing Certified Tourism Ambassador (CTA) expanding her knowledge of Kalamazoo County and all it has to offer family’s relocating to the area Short Sale and Foreclosure Resources (SFR) in today’s market it is critical to know the ins and outs of short sales and foreclosures

Successful Track Record 2021 Finished #7 | Sold 72 Homes | Over 25 Million in Sales 2020 Finished #14 | Sold 83 Homes | Over 21 Million in Sales 2019 Finished #1 | Sold 88 Homes | Over 23 Million in Sales

Gives Back

Habitat for Humanity’s vision is to build strength, stability and self-reliance in partnership with people and families in need of an affordable home. Kathy donates $100 from every transaction in her clients name and that she matches her clients up to $50 if they donate.

Kathy Smith

cell 269.998.2793 ksmith@jaquarealtors.

2018 Finished #11 | Sold 58 Homes | Over 14 Million in Sales 2017 Finished #8 | Sold 78 Homes | Over 17.8 Million in Sales 2016 Finished #9 | Sold 76 Homes | Over 13 Million In Sales 2015 Finished #11 | Sold 75 Homes | Over 13 Million In Sales

414 W. Milham Ave. Portage, MI 49024