Sage Ranch Contract Proposal | KW Forward Living

S A G E R A N C H N E W H O M E P R O J E C T S A L E S P R O P O S A L

OV ER VIEW Sage Ranch, a 138 acres of land in Tehachapi, California is to be subdivided and 1000 home units are to be built on this land.

This planned community will have various phases once the project construction begins. KELLER WILLIAMS is submitting this draft proposal with the focus on listing the project and helping the builder combine all companies resources to get the project homes sold as swiftly as possible, at top dollar and in a seamless sales process throughout.

G OALS

• Agree upon the best working relationship structure and other key items that will ensure the focus and fairness a win-win for all parties in this agreement. is clear in all needed areas and efforts.

• Help ensure thorough any means or people possible we • Make sure an agreed upon system is in place with all get the project approved by the city so building can processes, systems, check lists, job descriptions, begin soon. defined roles, risk reduction, compliance, marketing, communication, customer satisfaction etc. that sets up • Fine tune and structure a listing/marketing agreement the best possible infrastructure for success. that serves all parties in their needs and expectations.

• Have a marketing plan in place that through various • Agree upon any other resources or vendors needed to help insure the project, the experience, financial combined efforts from all parties and possible outside benefits and relationships are maximized. entities, gets the best results possible resulting in good • Take this draft LOI proposal after initial feedback is given sales flow. and KW will create a full and more detailed proposal for • Ensure the agreement has the best structure in place submission and review with Jeff and Stuart. with the need for management, sales agents and staff to support this project fully through the various stages.

• Create an economic model that includes revenue, expenses, commission break down, incentives and

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SPECIFICATIONS 1. Sage Ranch Leadership to provide KW their final plan on project roll out, timing, phases with unit counts and early on pricing model for the units.

2. All appropriate and legal documents will need to be provided to ensure the project is compliant with the city, DRE and any other agencies necessary on this project.

3. Clear and measurable stated goals with metrics will be provided for consideration from Sage management to KW to ensure all needs can be met early in in this proposal and agreement.

MILESTONES IV. City approves the project with new sales values and the desired timelines are set for the next relevant steps.

V. The project receives its final and approved status from BRE with white paper and other needed approval to ensure the project can be legally marketed and deposits taken.

VI. Listing and marketing agreement gets signed and start dates are set.

VII. Pre-marketing plan starts VIII. Project breaks ground IX. Full listing and marketing push begins X. We sell first units and the journey begins.

KEY ITEMS FOR THE PROPOSAL TO DISCUSS AND AGREE UPON BETWEEN KELLER WILLIAMS AND SAGE RANCH MANAGEMENT. 1. We will utilize the standard CAR listing agreement with addendum's for modified and added terms and conditions.

2. Project will be listed and each home will be sold on a commission basis and split between KW the and the broker of the buyers agent for the sale. We have options to maximize the total commissions paid per sale to be discussed and agreed upon.

A. We receive a full 5 percent commission. The listing commission on each unit is 5% with a split to the buyers agent on the transaction. KW will reduce to 4% if the buyer comes in with out an agent and is in dual agency within the Sage

B. The split would be 2 to 2.5% to the buyer's broker and the remaining balance of commission goes to KW to split with the agents or staff servicing the project unless otherwise agreed upon in writing. KW will determine the best splits in the internal operation for the sales team and the operations needed to support the project. A flat rate per sale may be used. Sage ranch and KW to mutually agree based on market conditions and a CMA of the MLS.

Ranch project.

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3. A. KW handles the majority of the marketing

cost. The plan is explained in more detail in the listing presentation provided.

B. The marketing plan and budget to be started within 1 week of signing the agreement or when directed. Marketing plan to be reviewed monthly and adjusted if needed. Sage Ranch picks up partial marketing costs on the project above and beyond what KW provides on seller listings and large projects. If other items are desired beyond the proven KW plan we can mutually agree on effectiveness and cost breakdown. We can use the preferred rates of KW with any vendors applicable.

4. These marketing items to be put in a monthly and quarterly calendar after mutually agreed with timing and frequency.

5. All potential buyers to register electronically or by hand and all names to be used for tracking, accountability and re-target marketing. List to be shard & reviewed weekly with the Sage Ranch and KW team. We have a very robust CRM and tracking system in place.

9. A weekly sales meeting with Sage Ranch will be had with all sales team members, staff, marketing team and broker if needed. A management key contact locally will be designated to help oversee the project and this process. Our manager will work directly with Stuart to co-manage this project and the needed end results desired. Agreed upon job descriptions, roles, authority to be discussed and agreed upon prior to starting the process.

A monthly call will be had with these two key managers and ownership at KW to make sure full support is being provided from the parent entity.

10. Agents to go through any required Sage Ranch

training that makes them more effective for this project. We will have training also ongoing through the sales process and implement as needed with the agents through KW normal training sales modules and other key topics.

11. The project will be fully promoted and marketed to and through all KW channels locally, state wide, nationally and internationally where possible. A separate detailed plan and explanation of this to be added to a calender and we can use Base-camp a 6. KW to use a mix of pre-selected mutually agreed upon agents to represent the project and project management platform to track.. This each listing agent to be interviewed, trained and includes digital media, all Internet channels, PR, direct mail, social media, videos, photography, approved. blogs, events, sales meetings, text marketing and 7. Sage Ranch and KW will mutually agree upon agents and staff to service the project and what many other tools we use to sell homes currently 12. The KW - CRM system with management accounting is the best mix of each. This schedule and the platform to be used and will be mutually agreed upon that roles to be agreed upon. Criteria to be established and followed. it is adequate.

8. KW to work like an ad/marketing agency to

help direct the digital media, ad campaigns, mailers, social media etc. to incorporate all of the KW resources in this mix. Sage Ranch and KW once determined can modify and adjust expenses off the top if needed. All mutually planned and agreed upon.

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13. Project sales office to be open 7 days a week.

The weekends may have a more focused, marketed approach beyond the normal weekly marketing efforts. To be mutually agreed upon.

14. Top notch quality service always provided by the KW team for all encounters at any level.

Agent reviews and report cards will be utilized. Otherwise to be be reported direct to project manager for instant solutions.

15. Events will be planned, organized and planned 6 months out to be mutually agreed upon..

16. A. KW will create a contingency sale program for any buyers who need to sell their home. A legal finder fee of mutual agreement can be paid to Sage Ranch. Normally If the builder is licensed it can be a version of a referral fee.

B. KW ( in a generic way)to be written into CC&R's as the projects preferred resale listing broker. All to be

determined more in future meetings.

17. KW will provide their in house services wherever possible such as Title, Escrow etc.

Details TBD. This is a big item to the company and can benefit all parties. Again this has to be mutually agreed and of mutual benefit.

18. A regular scheduled meeting to be set every 90 days with ownership to discuss the contract terms and conditions to see if any agreed upon modifications need to be considered by either party.

19. All broker and legal issues to be spelled out in the listing agreement. This is a two year agreement with an auto annual renewal thereafter until full project is sold unless mutually agreed upon and cancellation has been initiated. Terms to be mutually agreed upon and spelled out apply in the Listing contract.

20. Stuart and Steve to lead the initial role out of this project until all other parties may be needed and identified agreed upon. Suggest 90 days by either side with cure periods and the spelled out post listing rights and obligations.

21. Any Additional clarification to handled in our face meeting together

We truly appreciate the opportunity and look forward to a very successful relationship moving forward!

- P a u l, St e v e an d th e KW te a m

FROM Steve Rodgers / Paul Morris KELLER WILLIAMS Forward Living 439 N Canon Drive Beverly Hills , California 90210 Version two 6-12-2020

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