Kendall Masuko - A Proven Approach to Selling Your Home

Listing Your Home with the Market ŠDickson Realty 2016, All rights reserved

A Proven Approach To Selling Your Home Kendall Masuko Your Trusted Real Estate Professional

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

My Promise Hello, I want to express how much I appreciate the opportunity to present to you my proven approach to selling your home. I realize that you have a choice when hiring an agent. As your agent, there are many services you can expect me to provide, including: Accurately pricing your home. Through my experience and knowledge of the market, I will price your home to get the highest dollar value possible.

Enhancing the perceived and real value of your home, enabling you to command a higher asking price.

Unmatched marketing including, Broker/Agent tours, professional photography and interactive 3D virtual tour, proper staging, and maximum exposure locally and on the internet through my expertise and the resources of Dickson Realty’s marketing team.

Bringing you qualified buyers within your specific time frame.

Communicating with you regularly with updates on the market and feedback for your showings.

Keeping you informed and involved from the beginning of listing your home to the close of escrow.

Regardless of the price of your home, when you hire me as your Realtor®, both you and your home will be prepared for a successful sale.

Warm Regards,

Kendall Masuko Kendall Masuko, Realtor® Dickson Realty

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Meet the REALTOR®, Kendall

Kendall is all about real estate. His success with sellers, buyers and investors comes from his strong belief that real estate is really about people. When working with Kendall, his focus is always on his clients, their needs, and their goals but understands that the path to a successful deal is the trust and professionalism he brings to everyone in every transaction.

Giving back to his community is a big part of who he is. Kendall is an active Rotarian and sits on the board of the Reno Rotary Club of Midtown.

He also works with the Northern Nevada VA system, organizing fundraisers and spends time with veterans at the VA Sierra Health Care System. Kendall and his wife volunteer with Big Brothers and Big Sisters of Nevada. As a “Big Brother” and “Big Sister”, once a week they spend time with their “Little” in hopes to make a difference in his life.

Outside of real estate, Kendall and his wife, Emily, are outdoor enthusiasts. They believe that there are few places greater than the Sierra Nevada Mountains. If you love the outdoors as much as they do, you might just run into each other hiking on a trail, skiing down a run or fishing on the river. They love calling Northern Nevada their home.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Our Commitment Experience the Dickson Difference…

Dickson Realty was founded more than 45 years ago with a vision: to become a company dedicated to earning the trust of our clients by providing them with the highest possible level of expertise, experience, and customer service. This has been the key to our success. While Dickson Realty measures success by the quality of the transaction rather than the quantity, we are proud to have consistently been named in “The Real Trends 500” and the “RIS Media Big Broker Report” as one of the top firms in the nation.

At Dickson Realty, we pride ourselves on setting high standards. We understand the importance of the trust people place in us. We also recognize that the strength of our company lies in the knowledge and passion of our agents and in the long term relationships we build in serving our clients. Relationships built on trust have made Dickson Realty the market leader in Reno/Sparks, with nearly twice as much market share as our closest competitor, including 35% of the luxury sales in our area.

We bring more… from our understanding of the nuances of neighborhoods, to sophisticated marketing plans for properties, to expert negotiation skills, to extensive relationships and connections that help our clients get the best…and the most. We are the market leader…for good reason.

Listing Your Home with the Market Leader ©Dickson Realty 2016, All rights reserved

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Dickson Realty Designated Top Reno-Tahoe Firm and in the Top 275 Nationwide Dickson Realty Among Top U.S. Real Estate Firms in 2017 REAL Trends 500 List Designated Top Reno-Tahoe Firm and in the Top 210 Nationwide

One of the most trusted and leading sources of real estate information has ranked Dickson Realty the leading real estate brokerage firm in Reno-Tahoe.

REAL Trends, a national publishing and communications company based in Denver, Colo., has Dickson Realty on its prestigious list, the “REAL Trends 500,” an annual study that represents the standard of measuring performance of the nation’s leading realty service firms.

Dickson Realty is the leading Reno-Tahoe firm in the Top 500, and is tabbed the 208th largest real estate firm in the nation by dollar sales volume, and 259th largest real estate firm in the nation by number of transactions.

Now in its 30th year, the study remains the undisputed leading report ranking the performance of the top residential real estate brokerage firms. Firms are ranked by both sales volume and transaction sides. A side is when a real estate firm represents either the buyer or the seller in a real estate transaction. Due to the requirement that all information be independently verified, the REAL Trends 500 remains the trusted source for information about the performance of these firms.

“Being ranked high on this prestigious national list and first in Reno-Tahoe is an honor, and a reflection of our commitment to the communities we serve with the best in real estate,” said Nancy Fennell, president of Dickson Realty. “It is important to give our clients exceptional service with buying and/or selling their home. Dickson Realty agents are experts providing experience and market leadership. The ranking is a true testament to these values.”

REAL Trends reports listed Dickson Realty with 3,061 closed transaction sides and $1,107,709,813 in sales volume in 2016.

by Andrew Reel (April 4, 2017) Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Market Info Reno/Sparks

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Market Info Reno/Sparks

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Market Info Reno/Sparks For over a year now the Reno/Sparks market has been experiencing low inventories. What does that mean?

The National Association of REALTORS considers 5 to 6 months of inventory a healthy or normal market, where neither buyers nor sellers have a distinct advantage. We have studied our Reno/Sparks housing market by price range, and see a strong seller’s market in homes priced below $600,000. This price range make up 92% of the sales in our region. However, in the price ranges above $600,000 we have a greater inventory of available homes, and with that we see a shift to more of a buyer’s market.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Market Info Reno/Sparks

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

The Home Selling Process Steps of selling your home  Choose your Realtor®  Establish

                    

o Needs o Price o When to list your home on the market Prepare your home for sale o Staging ▪ Interior & Exterior, Yard & Curb Appeal Professional Quality Photos SRPD – Seller’s Real Property Disclosure List your home Show your home Receive & Review offers Accept an offer…

Offer is sent to Title and Escrow & Lender (Buyer) Earnest money is sent to Escrow & held in an escrow account Appraisal Title Report Resale Package (Common-Interest Community Only) Prelim and Escrow Instructions Inspections Repairs & Remove Contingencies Re-inspections Final Walkthrough Fund and Sign Closing packages and Title Policies disbursed Reconveyance Obtained (On Record) Close Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Pricing Your Home Right Pricing Your Home for a Successful Sale Pricing you home accurately from the start is the most effective way to ensure a successful sale. Allow me to repeat that - pricing your home accurately from the

start is the most effective way to ensure a successful sale.

No amount of marketing can sell an overpriced home.

Many sellers are tempted to list their home with the agent that quotes the highest price.

Please keep in mind: The agent doesn’t set the price The seller doesn’t set the price The market will set the price or value, for your home Factors that Influence Market Value Supply and Demand Economic Conditions Asking and Selling Prices of Competing Homes Your Home’s Condition Buyer’s Perception of Your Home Factors with Little or No Influence on Market Value The Price the Seller Paid for the House The Seller’s Expected Net Proceeds The Amount Spent on Improvements & Upgrades Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Pricing Your Home Right In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. We strongly believe that telling the homeowner the truth is more important than getting you to like us.

There is no “later.”

Pricing it right from the start eliminates these

challenges.

Sellers

sometimes

think, “If the home doesn’t sell for this price, I can always lower it later.”

However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes. John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, “Listing Price, Time on Market and Ultimate Selling Price” published in Real Estate Economics revealed: “Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.” Additionally, the “I’ll lower the price later” approach can paint a negative image in Buyer’s minds.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Pricing Your Home Right Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.”

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house. Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If you are looking to sell your house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k price range won’t even know your listing is available, let alone come see it!

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Pricing Your Home Right A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house. Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. We will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home. You need an agent that will tell you what you need to know rather than what you want to hear.

This will put you in the best possible position.

Percent of Buyers Who Will View Property Asking price in Relationship to Fair Market Value

% of Prospective Purchasers Who Will Look at Property

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Pricing Your Home Right Professional Appraisal The Most effective method of pricing your home is to perform a professional appraisal.

Benefits of having a professional appraisal: You receive an unbiased, third party opinion of the market value of your home by a trained professional.

You are positioned to quickly recognize and respond to a market offer.

You are positioned to effectively challenge a low lender’s appraisal of your home, maintaining your higher contract price. A lender will consider a wellknown appraiser’s valuation – they will not consider an estimate provided by a real estate agent.

You avoid the common practice of a real estate agent “buying your listing” by suggesting a higher price than can be achieved. Because the agent would then be reluctant to suggest a price reduction early in the marketing process, you lose valuable time during those critical first several weeks on the market.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Home Protection Plan

A home protection plan is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home system components and appliances. For sellers, it can help protect your buyer while helping you to avoid putting money into repairing or replacing items in the home that you’re selling. As a buyer, it puts you in control of your budget with an economical way to help protect against otherwise potentially costly situations.

BENEFITS FOR THE HOME SELLER When you’re selling a home, you want to find ways to make your home more attractive to potential buyers. A home protection plan can make your property stand out simply by giving buyers the boost of confidence they need to make a decision in your favor.

A few compelling reasons to include an American Home Shield® Home Protection Plan on your listing: It may discourage downward price negotiation It can help distinguish properties from other listings It can help boost buyer confidence It can help reduce your liability in post-sale issues Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Home Protection Plan Home Warranty During the listing period of your home, I will have your home covered with a nationally–recognized home warranty from American Home Shield. The benefit to you is that many of the normal day-to-day repairs are covered under this plan while your home is listed.

When you’re selling a home, you want to find ways to make your home more attractive to potential buyers. By advertising a comprehensive warranty for your home, we increase buyer confidence in your home that sets you apart from the competition.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Preparing Your Home for a Successful Sale Showing Service For all of my listings I use a third-party showing service to book all of your showing appointments. This way I will never miss an appointment if I’m not available to answer my phone.

Members can schedule showings and view appointments online or via the MLS 24 hours a day Standardized method of scheduling showings Automated feedback collection system CSS Mobile App for your mobile devices: Android & Apple Allow your sellers to quickly and efficiently approve showings via text message Activity reports for listing & showing agents Interactive mapping features allow members to map out their showing tours Showing notifications alert agents/sellers via email or text message Feedback and showing activity reports that can be shared with sellers via email or online Extended hours of operation increase showings Broker/Manager level reports MLS-wide showing statistics by MLS area, price, zip code, etc.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Preparing Your Home for a Successful Sale Repairs Discovering and repairing problems early in the marketing process places you in control, eliminating the stress of making repairs on the buyer’s schedule. Having your house in move-in condition also helps you avoid delays to closing and it demonstrates to buyers, agents and the buyer’s home inspector that your house has been very well maintained. We want buyers to focus on how they would live in your home, not what they have to repair.

Additionally, your house will stand out from the competition as a better value and command a higher price.

Unless it is an easy fix that you are comfortable repairing on your own with professional results, I would recommend you hire a trusted-professional. The extent at which these repairs are made will directly affect your listing price. You have the ability to command a higher asking price and substantiate it when your home is in top condition.

“In a Maritz Research poll, 63% of buyers responded that they would pay more for a house that is move-in ready.” www.maritzresearch.co

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Preparing Your Home for a Successful Sale Staging Once we have made all the necessary repairs, we will focus on presentation. You will only get one opportunity to make a positive first impression with potential buyers.

Well staged homes look better, photograph better, show better and sell faster than non-staged homes.

Home staging is not decorating. Decorating appeals to the person living in the house. Staging is positioning the home to appeal to the psychological needs of buyers by creating a series of impressions that build an emotional connection to help buyers imagine living in the home.

When a home is staged well, the buyer perceives more value. As a seller intending to maximize the financial return on your home’s sale, it is important to know that staging can have a big impact on your home’s sales price.

Presentation matters! Also, while many agents overlook the presentation of your home and push for price reductions, the problems, whether perceived or real, still exist.

“An AOL Money & Finance poll revealed that 87% of respondents said home presentation makes the difference in most sales…”

AOL Money & Finance Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Preparing Your Home for a Successful Sale Curb Appeal You Only Get One Chance to Make a First Impression!

First impressions are incredibly important, especially when it comes to selling your house. Spending time focusing on curb appeal can help you attract more buyers—and sell your house faster.

Stand out in front of your house. Does it look clean and inviting, or dingy and unloved? It’s called curb appeal for a reason.

Pick up - Remove any junk piles or trash cans that are visible. If you’ve got kids, make sure the toys are all put away. Put away bikes and other equipment you may have leaning against the house.

Clean up - Start with a thorough cleaning of your windows, door and front door area. How do your curtains and blinds look from the outside of the house? Take time to clean up the insides of your home’s window areas that are visible from the curb.

Paint - Is the paint peeling off the shutters or siding? Can you easily notice the front door? Paint is a wonderful thing. It can quickly bring any old object back to life, including shutters and trim on the outside of the house. For a relatively small investment, paint is one of the quickest ways to increase curb appeal. It’s important to do a good job when painting, however.

Splotchy work will be immediately noticeable. If you’re not up to doing the painting yourself, consider hiring an expert to help. Also, choose neutral colors—this gives your house the best chance to sell.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Preparing Your Home for a Successful Sale Curb Appeal (Continued) Repair - Take time to repair missing siding, broken shutters, broken fence panels, and the like. Sidewalks should be swept clean and cleared of obstacles that might trip someone on the way to the front door. Are your garage doors clean? Does the garage door work properly? How does your mailbox look? Does it need to be painted or polished? Any numbers or letters on it should look neat and clean.

Landscaping Tips - One of the best ways to increase curb appeal is to invest in a bit of landscaping. There are some practical things you can do: • Trim back tree limbs and smaller branches that grow out from the base of the tree but are not part of the main trunk.

• Give the shrubbery a good trim, especially if it blocks a window. Let the light in—trim them back or remove them completely.

• Rid your yard of any dead vegetation, whether it’s trees, shrubs, or other plants.

• Add a layer of mulch under shrubs, trees, and in the flower beds to make the yard look cared for. Mulch comes in several varieties and colors. Pick a type that looks good with your house.

• Keep your yard manicured. Mow often when your house is for sale. A little fertilizer followed by watering will make a lovely, green lawn. Get rid of those unsightly crabgrass patches and weeds, too.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Preparing Your Home for a Successful Sale Curb Appeal (Continued) Lighting - Make sure exterior lights are clean and in good working order.

Turn on your lights in the front of your home in the evenings. Potential buyers may drive by at night to see how the house looks, for both curb appeal and safety. If it’s not the holidays, take down any holiday lights.

Entry Way - Make the front porch and walk-way area inviting: • Add a nice mat or new rug. This makes the door-way look more inviting and gives buyers a place to wipe their feet before they come inside.

• Boost curb appeal by making the front walk-way and door-way more colorful. Flowers can be inexpensive and add instant color. If you prefer not to plant them in the ground, consider placing them in pots.

Just a few pots of color in a darkened porch corner, or near the door can make the house look inviting from the curb. Don’t forget to keep them watered! It’s not a good idea to use fake flowers to decorate outside. They fade in the sun and rain, and can look cheap. Stick to the real thing. It’s amazing what a splash of colorful flowers can do.

Don’t neglect your home’s exterior when it comes to curb appeal. It’s a competitive market and anything you can do as a seller to make your house more appealing puts you that much more ahead of everyone else selling their house. *Taken from Idiot’s Guide, “Using Curb Appeal to Sell Your Home” article by Sherry Kinkoph

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Preparing Your Home for a Successful Sale Additional tips to make your home shine!

Open draperies and curtains and let the sun shine in. Turn on all lights in every room. Let the potential buyer see how cheerful you home can be!

Dark rooms do not appeal.

Repairs can make a big difference. Loose knobs, sticking windows, warped cabinet drawers and other minor flaws detract from the home value. Have them fixed. The little things do matter.

Make your closets look bigger. If possible, remove unnecessary clothes and personal belongings. Neat, well-organized closets show better and appear larger. Storage space is important to many potential buyers.

Bathrooms help sell homes. Make this room shine! Fix that faucet or shower head. Repair caulking in sinks and showers. Thoroughly clean all surfaces, cabinets and under sinks. Clean off counter tops. Remove all excess clutter.

The kitchen is often the most important room the house. Make it bright and attractive. Remove appliances from countertops. Clean out refrigerator, ovens and microwave. Organize cabinets and pantry.

Remove clutter and clean under the sink.

No matter how friendly and lovable your pet is, keep them out of the way—preferably out of the house.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Preparing Your Home for a Successful Sale Additional tips to make your home shine! (Continued) Arrange rooms neatly. Remove excess furniture.

Clean out the fireplace.

Remove excess personal items, pictures and religious artifacts.

Never apologize for the appearance of your home. After all, it has been lived in. Let the trained salesperson answer any questions. This is her/his job. The salesperson knows the buyer’s requirements and can better emphasize the features of your home when you’re not present.

A word to the wise. Let your Realtor discuss price, terms, possession and other factors with the buyer. She/he is eminently qualified to bring negotiations to a favorable conclusion.

Use your agent! Show your home to prospective buyers by appointment only through your agent. Your cooperation will be appreciated for safety and security of your home and will help close the sale more quickly.

When showing your home to potential buyers, the goal is for them to imagine themselves living in your home. Too many personal items can make them feel like they are in someone else’s house.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Understanding How Buyers Evaluate Homes The marketing I will do to promote your home has only one purpose; to increase awareness among potential buyers leading to in-person showings.

Once buyers reach your front door, the job of marketing is over.

Your home must now compete with other homes in two specific areas: Features Price If your home has more features that appeal to buyers, or your home is priced lower than comparable homes, your home will stand out as the better value.

Conversely, if your home lacks the features that potential buyers desire, your only option is to compete on the price.

To be effective, your home should stand out as one of the top two to three best values in your immediate market place.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Professional Quality Photography After your home is staged, I will have professional quality photographs taken of your home.

With 98% of buyers using the Internet to search for homes, professional quality photography is essential to any comprehensive marketing plan.

More people will view your home online than will ever walk through your front door.

Getting, and holding their attention online with professional quality

photography is one way to increase the probability of an in-person showing.

“Buyers perceive homes with professional photography to be worth, on average, 12% more than the actual price.”

The Wall Street Journal

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Interactive 3D Virtual Tours Marketing is only as powerful as your message and how you deliver that message. To all my clients, I offer the power of Matterport interactive 3D imaging in addition to professional photography.

Marketing in today’s world is all about the internet. interactive

3D

With an

virtual

tour,

potential buyers have the power to walk through an online open house from the comfort of their computer or mobile device 24 hours a day.

This is something to think about considering the number of people moving from outside of our area. When asked, potential buyers had a sense of familiarity even if they were walking through the front door for the first time.

“The Matterport 3D camera is one of the most effective tools you can use to market any type of real estate…This is by far the most forward thinking idea for marketing your real estate…”

Forbes R.L Adams, March 17 2017 Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Marketing Your Home for a Successful Sale Now that your home is priced accurately and looks great Let’s show it off!

The marketing of your home will reflect an established history of how buyers search for, and purchase homes.

95% of buyers use the Internet during their home search.

Majority of all home sales in Reno are cobrokered. This means there is a listing agent who represents you, the seller, and another agent who represents the buyer of your home. As a result, marketing to Realtors® is our most productive activity.

The most effective way to get the attention of productive agents and buyers is through accurate pricing and great photography.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Internet Marketing Why Does Our Online Presence Matter?

The internet has entirely transformed the way people look to buy a home, and it’s not just millennials shopping online. In 2014, 52% of all home buyers in the US looked for a home online before any other medium, versus just 1% who found their home from a print advertisement.* With 90% of all home buyers searching online at some time during the home buying process, a strong digital presence has never been more vital in real estate.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Internet Marketing I will place your home on hundreds of the world’s leading real estate web sites for unmatched exposure.

Here are just a few of the sites where your home will be found:

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Using the Power of the Internet Dickson Realty works with Buyside.

Buyside brings over 175 years of combined real estate experience to assist brokerages in turning their buyer data into leads, listings, and profits.

We started Buyside because we firmly believe that buyer data is the largest untapped asset within a brokerage and represents the final frontier in the digital transformation today in real estate.

It is a simple, fast, and easy solution that leverages buyer data your company generated, to empower your agents to: • • • •

Generate Seller Leads Dominate Listing Presentations Close More Sales Keep Sellers Loyal & Happy

A simple way to put it, is Buyside helps real estate agents match Sellers and Buyers. It’s like a “dating website” for people in the real estate market.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Email Marketing to Top Brokers and Agents Getting your home in front of the people who are actively searching for their clients and will be selling your home is the best way to market your home for sale.

I will send information about your home to my email list of over 300 top brokers and agents!

Brokers & Agents, I wanted to share with you a fantastic new listing I have in the Northwest. This beautiful, move-in ready home features 3 bedrooms, 2.5 bathrooms, 2 car garage with stunning views of the surrounding mountains.

Built in 2003, and offered at $389,000, this home features a beautifully landscaped, low maintenance yard. The back patio is perfect for entertaining. A must see! If you know anyone that is perfect for this home, please schedule a showing. (775) 324-3241 They will love it!

Mahalo nui loa,

Kendall Masuko Kendall Masuko RealtorÂŽ Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Marketing Within a Market Your home will not only be marketed through universal channels such as the Internet, print advertising, the Multiple Listing Service and signage. I will also market internally to our highly collaborative salesforce here at Dickson Realty.

Each Broker and Agent has a rich source of prospects, investors, buyers and referrals.

Once a week, Dickson Realty office hosts a “Tour of Homes” for all of our Brokers and Agents. I will feature your home on this tour. This gives all the Realtors® in our offices a chance to preview your home. Using this technique of “Marketing within a market” results in the most efficient transaction environment in Reno real estate.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home www.DicksonRealty.com Our website is one of the leading sources of information for buyers in the region, as well as interested persons from outside our region. The number of “unique visitors” for our site continues to increase for information about our region, neighborhoods and to search for homes for sale. Our “Featured Homes” section is also an outstanding marketing tool that our agents can use.

Our site averages more than 40,000 unique visitors a month. The two most popular sections of our site after people hit our home page are Buying (Search) and Property Details. This means that visitors come to our site, search for listings that fit their desires and then drill down into the site for more information.

We are constantly updating our site and we continually make the needed changes to keep drawing visitors to our site through search engines.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Leading Real Estate Companies of the World™ Dickson Realty is a member of the Leading Real Estate Companies of the World™ network, exposing your home to 650 affiliated brokers with over 120,000 real estate professionals all over the world who are looking for homes for clients Dickson Realty is a member of the Leading Real Estate Companies of the World™ network, exposing your home in the Reno-Tahoe region. to 650 affiliated brokers with over 120,000 real estate professionals all over the world who are looking for homes

DICKSON REALT Y

As for anclients affiliate of the prestigious Leading Real Estate Companies of the World in the Reno–Tahoe region. network, we are proud that our organization produced more home sales As an affiliate of the prestigious Leading Real Estate Companies of the World network, we are$272 proud that our volume in 2012 than any national real estate network, nearly billion organization g produced more home sales volume in 2012 than anyy national real estate network, nearlyy $272 billion p representing over one million transactions. Those connections make us a representing over one million transactions. Those connections make us a national and global – not just local – real national and global – not just local – real estate company working on your estate company working on your behalf. behalf.

© Dickson Realty 2013 - All rights reserved.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home RELO® National Home Search

Provides international exposure to Dickson Realty listings.

Designed to drive more potential buyers to DicksonRealty.com from out-of-area buyers who are linked from broker-affiliate web sites.

Makes DicksonRealty.com a one-stop resource for buyers who are searching for a new home on the internet.

Access to over 2 million listings of affiliated RELO® brokers and competitors via nearly 600 affiliate web sites.

Provides cost of living, school, and community information.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Marketing Your Home Dickson Realty vs.

NationalNCHMAR Benchmark DICKS ONRE ALTYVS﹒ NATIONALBE KDATA

When comparing Dickson Realty’s Data website statistics against 500 other similarly sized real estate agencies across the country, our website outperforms in nearly everyagainst category.

This was When comparing Dickson Realty’s website statistics 500 other similarly sizeddata real estate agencies across the country, our website outperforms in nearly every category. This gathered within Google Analytics over a six-month period. data was gathered within Google Analytics over a six-month period.

30%

25%

MORE VISITS TO THE WEBSITE

LONGER TIME ON WEBSITE

The number of people who visit dicksonrealty.com in an average month

The average length of time people stay on dicksonrealty.com in an average month

16%

57%

MORE TRAFFIC FROM DIGITAL ADS

MORE VISITS FROM GOOGLE SEARCH

People coming to dicksonrealty.com through digital ads in an average month

People coming to dicksonrealty.com through Google in an average month

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Title and Escrow Life of an Escrow You have a signed agreement Instructions from Brokers/Agents Order Title Report Prepare Escrow Instructions Review Prelim – Liens, Taxes Prelim and Escrow Instructions to Brokers

Processing Cash Order demands and other releases

New Loan Order demands and other releases Order documents from Attorney, if any

Review file to determine that all conditions have been met and documents are Correct and ready for signatures Inspections – Contingencies released – Additional papers

Figure File Lender to send Buyer CD, 3-day CFPB mandatory review period Receive Loan Package from Lender Appointment with Escrow Officer for signatures from Buyer/Seller and depositing of funds from Buyer Request funds from the Lender. Record and process closing documents Disburse funds and closing packages to parties Title Policies disbursed, Reconveyance obtained

Close File Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Title and Escrow Helpful Reminders for Title and Escrow  Identification – Please bring appropriate identification with you to the escrow company. Your identity will be verified. Use your legal name when filling out documents.

 Power of Attorney - In the event that you wish to use a Power of Attorney, arrangements must be made one to two weeks in advance with the escrow officer and the Power of Attorney must be approved by the buyer’s lender and your title company. These arrangements should be made as early as possible in the transaction.

 Trusts – If your property is held in a trust, inform your REALTOR® and the Title Company in the beginning of the transaction. Coordinate with your REALTOR® and have a copy of the Trust delivered to the Title company for review.

 Transfer of Funds – If you wish to transfer funds or wire transfer funds, arrangement must be made in advance with the escrow officer.

 Contingent Sales – If you are purchasing another property pending the sale of the current property, it is important to disclose this to everyone in the transaction to coordinate the closing process and insure you close on time.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Title and Escrow

Title Information Credit to: Ticor Title Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Title and Escrow Full Disclosure of Property Recent legal decisions and new legislation provide that the seller has the responsibility for revealing to the buyer the true condition of the property. The concept of selling a property “as is”, with the buyer assuming all responsibility to determining the property condition, is not acceptable in the present marketplace. The seller must disclose the known condition of the property to the buyer. This information should be made available to the buyer as soon as possible.

Charm or Irritant?

Having lived in this property, the seller has become accustomed to the peculiar conditions that may have developed. But for the buyer, that peculiarity may be more than a mere inconvenience. It may be an irritant which the buyer cannot tolerate. It is important for the seller to review the condition of the property with the real estate agent and take special note of any problems on the Disclosure Statement. Nevada State requires that the seller provide the buyer with a completed “SRPD - Seller’s Real Property Disclosure Statement”.

All Systems Go A basic assumption in every sale is that the house and systems in the house are functional. For example, the roof will hold out the rain and sun, the hot water heater will provide hot water, and the heater will provide heat. If it is known that any of the systems do not function properly, such facts should be included in the purchase agreement and acknowledged by the buyer.

“As Is” An “as is” purchase is perfectly acceptable, as long as the buyer understands exactly what the “as is” condition entails. Thus, it can be said in the purchase agreement that the buyer accepts the roof and the plumbing and the electrical system in their present condition and acknowledges that they have defects. This acknowledgment provides a defense for the seller if it is claimed he did not disclose the problems.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Service What Else You Can Expect From Me In addition to the services we’ve covered, you can expect me to provide the following: Attentive service. The responsibility of managing the sale of your home is never passed off to other agents or assistants. I will oversee the sale of your home from start to finish.

I will follow up with the Buyer’s agent after every showing to gather valuable feedback.

Regular communications regarding every aspect of my efforts and the results of those efforts. As well as any changes in the market, including new listings, price changes of competing homes, sales and how we should reposition you property to remain competitive.

Assistance negotiating offers and preparing contracts.

Attending the closing to ensure all contracts provisions have been met and that you are fully satisfied with the results of your sale.

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Thank You Thank you for your time and the opportunity to show you how I can help you sell your home. I hope that the information in my Listing Guide has answered your questions and has given you better understand of the home selling process.

Feel free to call me if you have any questions. I look forward to working with you and helping you achieve a successful sale.

Mahalo nui loa,

Kendall Masuko Kendall Masuko, RealtorÂŽ Dickson Realty 1030 Caughlin Crossing Reno, NV 89519 Cell: (775) 815-7428 Office: (775) 284-3075 kmasuko@dicksonrealty.com www.kendallmasuko.com

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Reno NV Utilities Don’t forget to cancel or transfer your Utilities when you move!

Waste Management of Nevada (It usually takes 2 weeks for them to receive the notice of new residence) 1392 E. Commercial Row, Reno, NV 89512 Sales - (775) 329-8822 Customer Service (800) 637-8648 http://www.wm.com/residential/curbside-waste-pickup.jsp Truckee Meadows Water Authority 1355 Capital Blvd, Reno, NV 89502 Customer Service at (775) 834-8080 http://tmwa.com/ NV Energy (Gas & Electric) PO BOX 30065, RENO NV 89520-3065 Customer Service (775) 834-4444 Toll Free (800)962-0399 https://www.nvenergy.com/ Sewer Customer Service Center (located at Reno City Hall) One East First Street, Reno, NV 89501 Customer Service (775) 334-2095 http://www.reno.gov/government/departments/finance/sewer-service

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Glossary A Acceleration clause A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.

Ad valorem Literally “according to value” this term is usually used in reference to real property taxes which are assessed according to value, i.e., ad valorem.

All Inclusive Trust Deed (AITD/WRAP-AROUND) a junior Deed of Trust securing a promissory note, the face amount of which is the sum of the liability secured by prior Trust Deeds plus the cash or equity advanced by the AITD lender.

Adjustment date The date the interest rate changes on an adjustable-rate mortgage.

Amortization The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

Amortization schedule A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

Annual percentage rate (APR) This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount (con’t) Annual percentage rate (APR) (Continued) instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual note rate on your loan.

Appraisal A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

Appraised value An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

Appraiser An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.

Appreciation The increase in the value of a property due to changes in market conditions, inflation, or other causes.

Assessed value The valuation placed on property by a public tax assessor for purposes of taxation.

Assessment The placing of a value on property for the purpose of taxation.

Assessor A public official who establishes the value of a property for taxation purposes.

Asset Items of value owned by an individual. Assets that can be quickly converted into cash are considered "liquid assets." These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Assignee One to whom a transfer of interest is made. For example, the assignor of a Deed of Trust or contract.

Assignment When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.

Assignor One who makes an assignment. For example, the assignor of a Deed of Trust or contract.

Assumption The term applied when a buyer assumes the seller's mortgage.

Attorney in fact One who holds a power of attorney from another allowing them to act on behalf of the grantor.

B Bankruptcy By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a "Chapter 7 No Asset" bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an "A" paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.

Beneficiary In Trust Deed, the lender is designated as the beneficiary; they obtain the benefit of the security.

Beneficiary’s statement A report from the lender, usually in writing, setting forth the terms and conditions of a loan already of record, such as amount still owed, interest rate, monthly payments, etc.

Bill of sale A written document that transfers title to personal property. For example, when selling an automobile to acquire funds which will be used as a source of down payment or for closing

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

costs, the lender will usually require the bill of sale (in addition to other items) to help document this source of funds.

Borrower One who obtains a loan and owes money to a lender.

Buyer One who purchases or acquires property.

Broker Broker has several meanings in different situations. Most Realtors are "agents" who work under a "broker." Some agents are brokers as well, either working form themselves or under another broker. In the mortgage industry, broker usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors.

(See the Home Loan Library that discusses the different types of lenders). As a normal definition, a broker is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.

Buydown Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower's payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.

Buyer’s market A buyer's market is a situation in which supply exceeds demand, giving buyers an advantage over sellers in price negotiations. Buyer's Market is commonly used to describe real estate markets. It applies to a market where there is more property available than there are people who want to buy it. The opposite of a buyer's market is a seller's market.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

C Call option Similar to the acceleration clause.

Cap Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as "caps."

Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.

CC&R’s (See definition for “Restrictions”) Certificate of deposit A time deposit held in a bank which pays a certain amount of interest to the depositor.

Certificate of Reasonable Value (CRV) Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV. Chain of title An analysis of the transfers of title to a piece of property over the years.

Clear title A title that is free of liens or legal questions as to ownership of the property.

Closing This has different meanings in different states. In some states a real estate transaction is not consider "closed" until the documents record at the local recorders office. In others, the "closing" is a meeting where all of the documents are signed and money changes hands.

Closing costs Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-

Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.

Closing statement See Settlement Statement.

Cloud on title Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by deed, release, or court action.

Collateral In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.

Common area assessments In some areas they are called Homeowners Association Fees. They are charges paid to the Homeowners Association by the owners of the individual units in a condominium or planned unit development (PUD) and are generally used to maintain the property and common areas.

Common areas Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project's homeowners' association (or a cooperative project's cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.

Common law An unwritten body of law based on general custom in England and used to an extent in some states.

Community property In some states, especially the southwest, property acquired by a married couple during their marriage is considered to be owned jointly, except under special circumstances. This is an outgrowth of the Spanish and Mexican heritage of the area.

Comparable sales Recent sales of similar properties in nearby areas and used to help determine the market value of a property. Also referred to as "comps."

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Condominium A type of ownership in real property where all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title.

Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership.

Condemnation The exercise of the power of eminent domain by which property is taken for public use upon payment of just compensation. Condemnation can also refer to the condemning of unsafe structures.

Contingency A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

Contingency clause A contract provision that requires a specific event or action to take place in order for the contract to be considered valid. If the party that is to fulfill the requirements of the contingency clause is unable to do so, the other party is released from its obligations. A contingency clause can be considered a type of escape clause for those involved in the contract. It allows one party to cancel a deal if certain requirements are not met, though the party benefiting from the clause has to right to waive it.

Contract An oral or written agreement to do or not to do a certain thing.

Conventional mortgage Refers to home loans other than government loans (VA and FHA).

Conveyance A written document that transfers title to an asset from one person to another. A deed and an assignment.

Cooperative (co-op) A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

County assessor One who sets value of property for taxation purposes.

Creditor A person to whom money is owed.

Credit repository An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.

D Deed The legal document conveying title to a property.

Deed-in-lieu Short for "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.

Deed of Trust Some states, like California, do not record mortgages. Instead, they record a deed of trust which is essentially the same thing.

Default Failure to make the mortgage payment within a specified period of time. For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.

Deficiency judgment A personal judgment in a judicial foreclosure action.

Delinquency Failure to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a "late fee" Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.

Demand/Beneficiary’s demand A statement from a lender showing the amount due on a loan.

Deposit A sum of money given in advance of a larger amount being expected in the future. Often called in real estate as an "earnest money deposit."

Depreciation A decline in the value of property; the opposite of appreciation. Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income. Since this is not a true expense where money is actually paid, lenders will add back depreciation expense for self-employed borrowers and count it as income.

Discount points In the mortgage industry, this term is usually used in only in reference to government loans, meaning FHA and VA loans. Discount points refer to any "points" paid in addition to the one percent loan origination fee. A "point" is one percent of the loan amount.

Down payment The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

E Earnest money deposit A deposit made by the potential home buyer to show that he or she is serious about buying the house.

Easement A right of way giving persons other than the owner access to or over a property.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Effective age An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.

Eminent domain The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.

Encroachment An improvement that intrudes illegally on another's property.

Encumbrance Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

Equity A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

Escrow An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

Escrow account Once you close your purchase transaction, you may have an escrow account or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner's insurance when they come due. The lender pays them with your money instead of you paying them yourself.

Escrow disbursements The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.

Estate The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Examination of title The report on the title of a property from the public records or an abstract of the title.

Exception An interest in real property which is excluded from the conveyance and remains in the grantor or which had been exluded in a prior conveyance.

Exclusive listing A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.

Executor A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. "Executrix" is the feminine form.

F Fair Credit Reporting Act A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.

Fair market value The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.

Federal Housing Administration (FHA) An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.

Fee simple The greatest possible interest a person can have in real estate.

Fee simple estate An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property.

Firm commitment A lender's agreement to make a loan to a specific borrower on a specific property.

Fixture Personal property that becomes real property when attached in a permanent manner to real estate.

Foreclosure The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

G Grantee The person to whom an interest in real property is conveyed.

Grantor The person conveying an interest in real property.

I Impound account An account held in trust by the lender in which the borrower is required to place monthly deposits for taxes, insurance and other purposes

L Land contract An agreement between a buyer and seller of property in which the buyer makes payments toward full ownership (as with a mortgage), but in a land contract, the title or deed is held by the owner until the full payment is made. This type of contract is technically not a legally binding agreement and, therefore, many different types of payment formats can be found.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Lease option An agreement that gives a renter the choice to purchase a property during or at the end of the rental period. As long as the lease option period is in effect, the landlord/seller may not offer the property for sale to anyone else.

Lease to own An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time. More often than not, a portion of the total rental payment goes toward paying down the value of the item leased in the event that the renter wishes to exercise the option.

Lender Someone who makes funds available to another with the expectation that the funds will be repaid, plus any interest and/or fees. A lender can be an individual, or a public or private group.

Lenders may provide funds for a variety of reasons, such as a mortgage, automobile loan or small business loan.

Lessee A lessee is the person who rents land or property from a lessor. The lessee is also known as the "tenant", and must uphold specific obligations as defined in the lease agreement and by law.

Lessor A lessor is the owner of an asset that is leased under an agreement to the lessee. The lessee makes one-time or periodic payments to the lessor in return for the use of the asset.

Legal description Description of real property, as used in legal documents in contrast to a street address by which the property is commonly known. Legal descriptions usually refer to recorded maps, surveys, or other public documents.

Lien A security interest in real or personal property which places the holder in a position prior to the rights of the general creditors of the owner. Examples include trust deeds, mortgages, special assessments, recorded judgments, mechanics lien, taxes, etc.

Lis pendens A notice recorded in the official records of a county to indicate that a lawsuit is pending affecting the lands described in the notice.

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

M Market value The price that real property would reasonably be expected to bring where it to be offered for sale with a reasonable sales effort over a reasonable period of time.

Metes and Bonds A term used in describing the boundary lines of land setting forth all the boundary lines together with their terminal points and angles.

Mortgage A written document executed by the owner of land by which the land is given as security for the payment of a debt or performance of an obligation (rarely used in California)

N Notary A person authorized to perform certain legal formalities, especially to draw up or certify contracts, deeds, and other documents for use in other jurisdictions.

Notarize Have (a document) legalized by a notary.

Note Written evidence of a debt by a borrower that includes a promise of payment in accordance with specified terms. A valuable document which must not be lost even when paid in full. In real property transactions, a note is usually secured by a Deed of Trust.

Notice of completion A notice which should be recorded to indicate completion of work of improvement to real property. A valid notice of completion limits the time for filing valid Mechanics’ liens.

Notice of default Recorded notice that a default has occurred under a Deed of Trust and/or note.

O

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

Offset statement A statement furnished to an escrow from an owner of land subject to an encumbrance (note) as to the balance due. Not to be confused with a beneficiary’s statement. This can also be provided by a tenant regarding their rights of possession.

Open End Deed of Trust A deed of trust which secures additional notes for funds that a lender may advance to a trustor subsequent to the execution of the original loan.

P Payee One who receives payments.

Payor One who makes payments.

Power of Attorney A written authorization to an agent to perform specified acts on behalf of its principal. This may be granted at either a general or limited power.

Preliminary report (also known as a Title Commitment) A report from a title company of the present condition of title made prior to the issuance of a title policy.

Prepayment penalty An agreement to pay a penalty for the payment of a note before it actually becomes due.

Proration The allocation of property taxes, interest, insurance premiums, rental income, etc . between buyer and seller proportionate to time of use.

Q Quit Claim Deed This deed conveys any possible interest of the grantor in said property at the date of the deed without representations of encumbrances on title arising from liens, Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

easements, etc. It is usually used to release an estate or interest less than "fee" interest.

R Real property Land or improvements permanently affixed to land.

Reconveyance The document that is evidence that the Deed of Trust affecting real property has been paid in full and that the lender and the trustee no longer have any interest in the property.

Recordation Filing for record in the office of the county recorder, a very necessary process in dealing with real property.

Request for notice of default A recorded request for notification of a recorded notice for a default on a Deed of Trust.

Reservation Right reserved by the grantor in conveying property, or a right which had previously been reserved.

Restrictions This is often referred to as covenants, conditions, and restrictions (CC&R’s) in regard to a piece of property, setting limitations on its use.

Right of way The right of another to cross over, under or through a parcel of land.

S Seller One who sells property to another.

Seller’s market A seller’s market is a situation in which demand exceeds supply, giving sellers an advantage over buyers in price negotiations. Seller's Market is commonly used to describe real estate Kendall Masuko, REALTOR®, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

markets. It applies to a market where there is more demand than there are people who want to sell their property. The opposite of a seller's market is a buyer's market.

Short Sale (Pay) A short sale is the sale of real property where the fair market sale price is less that the loan balance.

Subject to Usually referred to as the condition of title that exists at the time of acquisition by the buyer, such as subject to a Deed of Trust or record.

Subordination agreement An agreement by which a prior lien is made inferior to an otherwise junior lien.

T Title Evidence of a person’s right to or the extent of his interest in property.

Title insurance Insurance against loss or damage resulting from defects in title to a particular parcel of real property.

Trust deed See Deed of Trust.

Trustor (In a Deed of Trust) The borrower under a Deed of Trust.

V Vendee One who is purchasing property under a land sale contract.

Vendor One who is selling property under a land sale contract.

Vesting Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com

The manner in which the owner of real property holds title. For example, John Jones a single man.

Z Zoning Local government regulations relating to the use of property.

*Definitions copied from Investopedia, Ticor Title, and Google

Kendall Masuko, REALTORÂŽ, Dickson Realty c.775-815-7428 kmasuko@dicksonrealty.com www.KendallMasuko.com