Home Buyer Guide 2022

HOME BUYER GUIDE 2022

YOUR HOME BUYING ROAD MAP

WHAT MAKES THIS REALTY OASIS MACHINE HUM? “…surpass the expectations of every client who chooses us…”

W

e operate in a supportive, professional, positive environment that helps each member of our team provide the highest level of service in the real estate industry. This atmosphere allows our team to act on the passion and drive it takes to surpass the expectations of every client who chooses us to help fulfill their home buying or selling goals.

Whether you are looking to sell your property or buy a new home, Realty Oasis offers a dedicated, skilled team of pros with an innovative marketing approach.

Our team of experienced, full-time real estate agents and staff are ready to lead and advise you through the process of buying the perfect home or selling your existing home for the most amount of money in the shortest amount of time.

MARKEIBNER.COM

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YOUR HOME BUYING ROAD MAP

Strategy

• Find a REALTOR®® you can trust • Strategic home buyer consultation • Set up your “Backstage Pass” to the MLS search

Financing

• Mortgage application • Obtain pre-approval letter

Showings

• Concierge home showing specialist • View your favorites • Find your home

Offer & Negotiations

• Market analysis • Write your offer • Negotiations & counter offers

Protection

• Offer accepted • Earnest money/due diligence • Inspections

Closing & Keys In Hand

• • • • •

Appraisal Final underwriting Title work Insurance Utilities in your name

• • • •

Final walk through Close on your home Deed recorded Get your keys

YOUR NEW HOME! This is a road map of what the typical home buyer process looks like.

Our HOME BUYER GUIDE includes more information about each step.

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YOUR STRATEGY STARTS HERE Every decision in a real estate transaction could save or cost home buyers TENS OF

OF DOLLAR$

S

I N UN N ECE SSA RY E X P E N S E S

WE LOOK OUT FOR 80 DIFFERENT VARIABLES INVOLVED IN YOUR

7-STEP HOME BUYING STRATEGY 1. Expert Advice to Setting Your Strategy 2. Funding Your Dream

7 Resources

1 Strategy 2 Fund

3. Selecting Your Home 4. Negotiating Your Terms 5. Protecting Your Home

6 Close

Realty Oasis’ 7 Step Home Buying Strategy

6. Closing on Your Home 7. Your Lifetime Resource

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5 Protect

4 Negotiate

3 Select

EXPERT ADVICE FOR SETTING YOUR STRATEGY Market Intelligence Economic indicators

Inventory of vacant homes

Trends analysis

Rental housing vacancy rates

Interest rates

Builder confidence

Loan programs and qualifications

Shadow inventory

Real estate cycles

Inventory fluctuation

Seasonal advantages

Rent vs. buy trends

Local market conditions

Market stability

Micro markets

Knowledge of co-op agent’s negotiation strategy

National market conditions Absorption analysis Inventory of corporate-owned homes Inventory of short sales

Knowledge of mortgage options Knowledge of insider deals Knowledge of appreciation rates Knowledge of inventory

Inventory of foreclosures

Smart Home Buying Strategy Determine timing & motivation Evaluate needs & wants Out-of-pocket expenses Financing needs & pre-approval Neighborhood & lifestyle Quality of life Set expectations according to market Customized plan

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FUNDING YOUR DREAM Trusted Lenders

Your Home as an Investment

Best rate & terms

Mistakes that cause you to overpay for your home

Close on time No surprises Over deliver vs. Over promise

Mistakes that cause you to overpay for your loan

Get documents on time to the closing attorney

How to accelerate your equity and build wealth with your home purchase

Decisions on Cost

Why choosing the right lender makes all the difference

15-year vs. 30-year mortgage

Equity buyer vs. emotional buyer

Long-term hold Short-term hold Buy first or sell first Rental property 13th payment

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MORTGAGE PRE-APPROVAL How Much Can You Afford? Key Factors to Consider The down payment

Your debt-to-income ratio

The interest rate

The closing costs associated with the transaction

DOWN PAYMENT REQUIREMENTS LOAN TYPE

DOWN PAYMENT

CONVENTIONAL

5%+

You can put as little as 5% down and as much as you want. Anytime you put less than 20% down, you will have to pay some mortgage insurance.

FHA

3–5%

The lowest traditional down payment program; there is additional mortgage insurance.

DOWN PAYMENT ASSISTANCE*

$1,000+

VA

0%

FHA 203k

3–5%

A special product that allows you to wrap into your mortgage the costs of repairs or improvements to the home you buy.

CONTRACT FOR DEED

10%+

An ideal program for those without qualifying credit scores. Interest rates are slightly higher than market rates but it allows for home ownership for those who would otherwise have to rent.

DETAILS

A program for people who qualify with credit and income but do not have enough savings for a down payment.

A special program for military buyers that allows them to put almost nothing down toward the purchase.

*There are many down payment assistance programs available through our preferred vendors, just ask us for more information to find out if you qualify.

Closing Costs You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the closing, unless you are able to include them in your financing. Typically, total closing costs will range between 4–5% of your mortgage amount. In today’s market, it is common to ask for the seller to pay around 2% of the mortgage amount toward your closing costs; this is called “Seller Paid Closing Costs.”

EXAMPLES OF CLOSING COSTS • Prepaid Insurance ($300–$1500) • Prepaid Taxes (up to 6 months)

• Prepaid HOA Fees (when applicable) • Mortgage Origination Fee (2%) • Appraisal Fee ($450)

• Title Fees ($1200–$1500) • Closing Fees (<$1000)

$400,000 - $8,000 = $392,000 YOUR OFFER

(Total amount of your purchase price)

SELLER’S CONTRIBUTIONS (Amount of your closing costs you ask the seller to pay for you)

NET OFFER

(Final amount the seller is actually receiving, viewed as your actual offer)

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SELECTING YOUR HOME Showings

Lifestyle and Neighborhood

Select homes of interest

School rankings

View your favorites

Crime level

Proactively suggest listings that match your needs

Demographics

On call “concierge” Showing Specialist

Right Price — Right Home Property type (condo, townhouse, single family, manufactured, multiunit, investment) Preferred subdivisions

Planned community Parks & playgrounds Privacy of neighborhood/gated community Location of home in neighborhood Proximity to: work, restaurants, recreation, public transportation, major roads, entertainment, etc.

Price range Year built (age of home)

Managing Risk

Bedroom/bathroom/garage needs

Foreclosures/bank owned homes

Square footage

Short Sales

Landscape/lot preference

Vacant homes

Floor plan

City inspections

Amenities ADA disability features Appliances

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TYPES OF HOME SALE TRANSACTIONS Traditional Sale (30–90 Days) These are homes that have a regular seller on the other side of the transaction. They are not “upside down” on their mortgage, meaning they don’t owe more on the home than the home is worth. However, if they do, they have the cash to bring to the table to sell without negotiating with the bank. The response time on your offer from a traditional seller is usually pretty prompt (generally within 24 hours, if not less). The traditional homes are going to reflect the “market value” for a neighborhood and will usually be the highest priced home sales in the market and they are usually going to be in the best condition of any homes on the market.

New Construction (Varies, typically 6–12 months unless already completed) Brand new homes, built to your tastes and warrantied. With new construction, you get exactly what you want.

New construction homes can be already built, in the process of being completed or entirely custom.

Bank Owned Sale (60–120 Days) A bank owned sale is one in which the bank owns the home. Usually the bank will own the home because the seller tried to do a short sale and the bank wouldn’t agree to it, or the seller just decided to let the home go back to the bank by not making their payments. The bank owned transaction is a two party transaction, 1. Buyer 2. Bank. The listing agent is the go-between with the bank and they really help the bank’s asset manager (the decision maker at the bank) make the decisions about the property and about the pricing of the home. Bank owned sales are almost always “As Is” sales. Bank owned purchases are usually priced well below the price of a comparably sized “Traditional Sale,” but they may be in poor condition and will most likely need some sort of work or cleaning done.

FSBO (30–90 DAYS) This is the sale of a home directly by the owner rather than having representation by a real estate professional.

One of the most popular reasons that owners choose to sell their homes without the help of a real estate agent is to avoid paying an agent’s commission. If the owner sells their home to a person that is also not represented by an agent, the owner pays no commission. If the buyer is represented by a real estate agent, that agent may request that the owner pay them a commission (typically 3%) for bringing the buyer to them. The owner can agree to pay or refuse. The seller is not legally obligated to pay the commission. Often times, if the owner refuses, the buyer will compensate their agent on their own. FSBO homeowners will often market their own properties or choose to employ the services of an online marketing company or listing service.

Short Sale (5+ Months) A short sale is a home that is selling for less than the mortgage balance that is owed. This is where the term “short sale” comes from: the home is selling “short” of what is owed. The seller is usually selling the home because they can’t make their payments any longer. The short sale is a three party transaction. There is 1) Seller 2) Buyer and, 3) Bank (or banks) involved in the sale. The process is like a traditional sale in that the seller hires a real estate agent to market the home and get an offer, but once the seller and the buyer agree to a price, the bank then has to make the final decision on if the price is acceptable and if they will release the seller from the obligation of the debt they owe. The bank has to collect all of the seller’s financial records and review the offer and send out a third party to value the property. From there the bank will make a decision on whether or not they will accept the offer, counter the offer, or reject the offer. Short sales can be great deals, but the waiting time involved can be extreme and very hard on a buyer wanting to purchase quickly.

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NEGOTIATING YOUR TERMS Position of Strength Pre-approval in hand Type of financing Negotiating with listing agent Comparable sales to support offer Seller’s purchase price per tax records Property tax assessment review Walk away leverage

Multiple Offer Strategy Zero repair allowance Increased earnest money Escalation Language Closing date

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Seller Concessions and Offer Details Seller contribution to buyer’s closing costs Home warranty Inspection repair costs Closing date Discount/buy-down points Ancillary closing costs Title policy 60 days no payments Contract acceptance Time line Property inspection time line Negotiate repairs

TIPS TO MOVE YOUR OFFER TO THE TOP Common Tactics

Advanced Tactics

First to View the Property In a fast market, being first to see the house shows excitement & Gives you the most time to consider making an offer.

Waive Inspection Complete an inspection as education and due diligence only. Agree to NOT ask the Seller for any repairs. Or limit items requested to safety, roof or foundation.

Leaseback Up to 60 days, for free. Rent backs can also be offered with a fast close, allowing Sellers to get their money quickly but still allows enough time for them to move as a traditional 30–45day contract would.

Cash Option Lender Use a lender that allows you to offer all cash (waives appraisal & loan contingencies) *1.5% service fee is typical for this service.

Appraisal Gap The higher the amount offered, the stronger the offer.

Reputable Lender Most agents have a “preferred” lender. Banks, Credit Unions, or online “Quicken” lenders are seen as unreliable, time consuming and difficult.

Escalation Clause In multiple offer situations, these can be difficult and seen as confusing to Sellers. Although this is a popular option, highest and best offer is preferred.

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Moving Expenses Offer the Sellers a flat amount to be escrowed for moving fees.

Earnest Money Increase the amount of earnest money requested. Offer a specific portion to become non-refundable if a Buyer should cancel.

Agent Fees Offer to pay all or part of the listing fee (up to 3.0%).

Pay for the Sellers Cost Offer to pay title insurance; this is a percentage of the purchase price (a couple to a few thousand dollars). You can also pay for fees such as closing fees, HOA fees, or taxes.

Non-Contingent Offer Sellers will not wait for you to sell your house—especially if it’s not on the market. Instead, consider getting a bridge loan (HELOC, cash out refinance, co-signer, etc.)

Note: Love Letters are not accepted— seen as a Fair Housing Violation.

MAKING AN OFFER Once we’ve found the home you wish to purchase, you’ll need to determine what offer you are willing to make on the home. After all, you are the one making the payments!

Offer Terms Sales price

Personal property

Comparative market analysis (comps)

Other applicable addendum like Common Interest Community Disclosures, Short Sale Contingencies, etc.

Earnest money Financing terms

Seller contribution to YOUR closing costs (if requested)

Inspection period Closing date

Offer Terms Example — Asking the seller to cover a portion of your closing costs.

$400,000 - $8,000 = $392,000 YOUR OFFER

(Total amount of your purchase price)

SELLER’S CONTRIBUTIONS (Amount of your closing costs you ask the seller to pay for you)

NET OFFER

(Final amount the seller is actually receiving, viewed as your actual offer)

A Note about Multiple Offers It is important to remember that the more competition there is for the home, the higher the offer will have to be, sometimes even exceeding the asking price. Remember, be realistic, but it all comes down to market value and solid comparable sales. Make offers you want the other party to sign!

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PROTECTING YOUR HOME Home Inspection

Home Warranty

Eliminate potential surprises Preemptive negotiation strategy

Cover the mechanical systems and major appliances in the home for a year

Identify potential “deal killers”

Can save buyers thousands of dollars

Walk-away leverage

Can be paid for by the seller Can renew after the first year is up

Lifestyle and Amenities Drive time Location of hospitals, restaurants, schools, gyms

Future Home Maintenance Costs Heating and cooling costs Age of appliances Utility costs Home owners association dues Lawn and landscape maintenance

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INSPECTIONS Home Inspections If you are purchasing a resale property, we highly recommend that you have a professional home inspector conduct a thorough inspection. Our Inspector is exceedingly thorough and detailed so as to minimize surprises for you. However, the inspection is not meant to be used to low ball the seller post-price negotiations, as all existing homes have minor imperfections.

The inspection is intended to report on major damage or serious problems that require repair. Your home cannot “pass or fail” an inspection. The inspector’s job is to make you aware of repairs that are recommended or necessary.

THE INSPECTION WILL INCLUDE THE FOLLOWING

Appliances Plumbing Electrical Heating and Air conditioning (depending upon the season) Roof and Attic (if accessible) Foundation General Structure Radon tests are recommended — More than 40% of the homes tested have gas levels exceeding the safe threshold set by the EPA

COMMON PRICES for the home inspector 1500 sq ft and less . . . . . . . . . . . . $350 1500–2000. . . . . . . . . . . . . . . . . . . $450 2000–2500 . . . . . . . . . . . . . . . . . . $500 2500–3000 . . . . . . . . . . . . . . . . . . $550 3000+ . . . . . . . . . . . . . (Call for pricing) Sewer Scope . . . . . . . . . . . . . . . . . . $145 Radon Testing . . . . . . . . . . . . . . . . . $150 Pest Inspections . . . . . . . . . . . . . . . . $95 Thermal Imaging with inspection. . . . . . . . . . . . . FREE (Must request)

without inspection. . . . . . . . . . . $150

Thermal imaging can reveal issues unseen in a standard visual home inspection.

The seller may be willing to negotiate completion of repairs, or you may decide that the home will take too much work and money and rescind the offer during the inspection period.

Your inspection is a contingency to the purchase agreement and needs to be completed and repairs negotiated within the due diligence date on the purchase agreement, usually a 9–10 day period.

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WARRANTIES Previously-Owned Home Warranties When you purchase an existing home, you can purchase warranties that will protect you against most ordinary flaws and breakdowns in major mechanicals and appliances for at least the first year you own the home. The warranty may be offered by or negotiated with the seller, or can be purchased by you, the buyer.

New Home Warranties When you purchase a newly-built home, the builder usually offers a warranty on things such as the quality of design, materials, and workmanship.

Blue Ribbon Warranty See attached.

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CLOSING ON YOUR HOME Home Owner’s Insurance

The Final Details

Highly competitive rates

All documents to lender in timely manner

Impacts your monthly payment

Appraisal

Title Company/Closing Escrow Agent

Lender repairs where applicable

Quality management of process

Closing & settlement review

Manage all parties in transaction

Potential deal killers

Leverage for getting problems resolved

Transfer of utilities

Closing on time

Moving into your new home

Protecting your interests

Inspection items

Transferring ownership of property to you

Walk-through

Clear title

NOTE: Buyer’s agent commission is paid at closing once we find you the right home. Our win is your win!

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WHAT TO EXPECT AT CLOSING Who Will Be There?

You, the buyer(s) Us, Buyer’s Agent Seller(s)—Maybe Listing Agent—Maybe Title Escrow Closer, the party representing the title company and responsible for ensuring the title is transferred to you Your mortgage officer

What Will You Need?

Bring valid government-issued photo ID and a second form of ID showing your name.

Bring a cashier’s check for your cash to close or a wire transfer (your escrow officer will tell you the amount prior to closing)

What Is Expected from You at the Closing?

If financing the property, your lender will require you to sign a document, called a promissory note, as evidence that you are personally responsible for repaying the loan.

You will also sign all title and deed documents putting you as the official homeowner!

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YOUR LIFETIME RESOURCE On-Going Real Estate Support

Raving Fan Club

Post closing questions

Parties

Updated market information

Holiday give-away (ex. Thanksgiving Pie & Valentine’s Day)

Helping your friends and family

Trusted Contractors Handymen Cleaning companies Carpet cleaning Exterior maintenance Painting & remodeling Siding/Windows/Decks

Helpful videos Monthly market snapshot Coupons—Boomerang Quarterly giveaways Moving boxes American Lifestyle Magazine Annual Events—Colorado Garden & Home Show

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WHO WE ARE Realty Oasis was built on the notion that the secret to achieving incredible goals and getting true results is to dominate real estate with a team approach. One part-time agent does not have the capacity to cover every aspect of the real estate process. Realty Oasis has 30 diverse experts excelling at their roles, allowing them to focus on what they do best, at a high level, so our clients receive high level performance and unprecedented results in this industry.

We operate in a supportive, professional, positive environment that helps each member of our team provide the highest level of service in the industry. This atmosphere allows our team to act on the passion and drive it takes to surpass the expectations of every client who chooses us to help fulfill their home buying or selling goals.

Whether you are looking to sell your property or buy a new home, Realty Oasis offers a dedicated, skilled team with an innovative marketing approach.

Our team of experienced, full-time real estate agents and staff are ready to lead and advise you through the process of buying the perfect home or selling your existing home for the most amount of money in the shortest amount of time.

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Meet your Company Mark Eibner Broker/Owner

Alison Eibner Broker/Owner

• Innovator • Contracts • Listing Specialist • Training • Mentoring

• Tech Specialist • Contracts • Listing Specialist • Training • Mentoring

Tina Gadpaille Broker/TM Team

Alex Eibner TM Team

• Transactions • Contracts • Deadlines • Escrow Processor • Training

• Transactions • Deadlines • Systems • Workflow • Tech Specialist

Evin Hughes Client Concierge

Josh Graham Marketing Specialist

• Onboarding • CRM Specialist • Client Touches • Social Media • Writing/Blogging

• Graphic Design • Photos • Digital Marketing • Drone/360 Tours • Signs, Measuring

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WHY REALTY OASIS? One Team, One Plan, One Purpose: Beyond Expectations Go above and beyond Do what we say we will do Deliver prompt communication

VIP BU YER LO YALT Y AGRE Secure the bes EMEN t fin closing T… AS costs. Ha ancing pro YOUR gra and pur BUYE chase neg ve a pre-qualifi m for your R SPEC Provid cation/ap specific situ IALIST e you wit otiations. atio proval S, WE criteria, h certificat n with the WILL • so you regular update lowest e genera Arrange can dri ted to giv interest rat ve by and s from our Ho e and sale-by-o a private sho e you the me Hu determ • wing of nte best com least expensive Discus wner (FSBO any pro ine which pro r Service petitiv of s the bes ) proper perty you per all e advant date, ins ties t stra want to ties you actual the new proper age • pections, tegy for ma . see ly ties want Help you including that ma king an termite/p tch you the new to see. weighted prepare an off est/environm offer as we r home constru • ll ction, ban Presen in your best er with terms ental report as financing ter t the off k owned s, int , provis er on you erest. terms. ions, spe and any que ms, interest , and for • rates, cos stions cial stip r behalf you Recom t to clo ulations, and neg mi mend ext se, pos otiate in amend ght have. inspec session remely ments, your fav tio • exhibits or to hel ALWA ns, appraisal competent affi and add p you sec s, YS be liates tha endum availab warranties, ure the t can s hom le to ans proper wer you eowner haz help with you ty at the ard r hom r questio best pri ns you and title insura e purchase ce and As Ou might r Client including nce.

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•

•

Build and maintain relationships Always solutions, never problems Deliver high performance and positive results

Are You Looking for High Performance?

Continually increase yearly home sales (see graph) Invest in professional development and skills training Obtain specific certifications for working with buyers Seek continuing education classes Present a buyer agency disclosure in writing Set your home buying strategy Full-time Transaction Coordinators Team of Expert Buyer Agents

120

Proactive listing suggestions

homes

Respond promptly Available 7 days/week

75

Weekly Team Meetings Weekly Sales Training Full Time Photo/Video Service

GOAL

homes

for

SOLD

2022

in

Full time Concierge Service

Average agent only sells 6 per year

2021

6-8

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SEE REALTY OASIS AT ITS FINEST! Our Track Record of Success is Undeniable Our single focus at Realty Oasis is providing world-class real estate services to home sellers. It’s what we thrive on and live for. We do everything in our power to make sure you have a great experience. Most agents operating the solo model just can’t manage the transaction the way we can. Ask any agent you are considering working with to let you see testimonials from their happy clients.

We hope you are seriously considering Realty Oasis as your best option. To help you in your decision making, please see these client testimonials and visit our page on Zillow for hundreds

VISIT

www.REALTYOASISRAVINGFANS.com FOR WORDS OF PRAISE FROM

OUR HAPPY CLIENTS

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SEE YOU AT CLOSING

720-608-2613 MarkEibner.com

blue ribbon Home Warranty Locally Owned and Operated Since 1985

Homeowner Rental Property Property Management

Protect your

Investment 24/7

14 months months of of coverage coverage standard standard 14

Why Choose Blue Ribbon?

Blue Ribbon Home Warranty is here when you need us, all day, every day. Our team has you covered with our top-quality, local contractors and award-winning service.

Benefits For Homeowners Protect your budget from common, unforeseen repairs Access to top local contractors Supplements your homeowners insurance Renewable and transferable

Benefits For property managers Protect property owner’s budget Complimentary pre-inspection* Convenient payment plans Billable to owners or property managers

How Does It Work?

Call or go online to file a claim Our friendly service staff will dispatch an approved contractor Low $65 co-pay due at time of service* *Subject to terms and conditions of your contract

303.986.3900

What is covered under a blue ribbon Home Warranty?

COVERED ITEMS Heating System Ductwork Plumbing System Water Heater Built-in Whirlpool Tub Sump Pump Electrical System Garage Door Opener Central Vacuum Ceiling Fan Doorbell (wired) Kitchen & Bathroom Exhaust Fans Refrigerator Oven/Range Dishwasher Over the Range Microwave Garbage Disposal Trash Compactor Washer Dryer Central A/C, Evaporative Cooler, Heat Pump or Whole House Fan Blue Ribbon Premier Upgrade Maintenance Plan 2nd Garage Door Opener 3 Items From Additional Items Menu

SILVER l l l l l l l l l l l

GOLD l l l l l l l l l l l

PLATINUM l l l l l l l l l l l

l

l

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l l l l l l

l l l l l l l l

l l l l l l l l

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Additional or duplicate items available for ALL plans • • • • • • • • • • • • • • • • • • • • • • • • • •

Refrigerator Stove Built-in double oven Over the range microwave Dishwasher Trash compactor Central vacuum Garbage disposal Washer Dryer Garage door opener Gas fireplace Sump pump Roof Well pump Septic tank Sewage ejector pump Pool Hot tub Pool & hot tub with common equipment Heating system Water heater A/C, evaporative cooler or whole house fan Blue Ribbon Premier Upgrade Preventive Maintenance Check & Cleaning Supplemental Coverage

See contract for details

Call for special pricing on multiple unit dwellings blue ribbon is your local Home Warranty Company • • • • • •

14 months of protection Colorado-owned and operated since 1985 High quality service 24/7 year-round Access to trusted local contractors Accredited member of all Better Business Bureaus in Colorado Top 300 Small Businesses in the West

BlueRibbonHomeWarranty.com

blue ribbon Home Warranty

WARRANTY Application

Enrolling is easy!

Call 303.986.3900 or 800.571.0475 Email forms to applications@brhw.com Go online to BlueRibbonHomeWarranty.com

COLORADO OWNED & OPERATED SINCE1985 95 S. Wadsworth Blvd.

Lakewood, CO 80226

1. COMPLETE APPLICATION

Warranty ordered by q Homeowner q Property Manager Other_______________________________________________ Premium to be paid by q Homeowner q Property Manager Other_______________________________________________

HOMEOWNER

Name(s) _____________________________________________ Phone_______________________________________________ Email________________________________________________ Pre-inspection includes all covered systems in the Silver, Gold or Platinum Plan. Mechanical systems and all appliances to be covered must be up and running at time of inspection. A non-refundable fee of $75 will be charged in advance. Inspection may not be available in some areas. This charge will be applied to the warranty premium.

Address of property covered q Vacant _____________________________________________________ City______________________ State_________ ZIP__________ Has this property been bought or sold within the last 30 days? q Yes q No Owner mailing address (if different than covered property) _____________________________________________________ City______________________ State_________ ZIP__________ Property manager (if applicable) Name_______________________________________________ Address______________________________________________ City______________________ State_________ ZIP__________ Phone_______________________________________________ Email________________________________________________

HOW DID YOU HEAR ABOUT US?

q Web page q Friend q Realtor q Lender q Prior Customer q Other______________________________________________

ACCEPTANCE OF COVERAGE

By submission of this application, the applicant agrees to be bound by the terms and limitations of the coverage contract and authorizes homeowner or others to pay total warranty fee to Blue Ribbon Home Warranty, Inc.

Signature_____________________________ Date___________ Signature_____________________________ Date___________

2. SELECT YOUR COVERAGE • •

Select your coverage options to enroll Call, email or go online to BlueRibbonHomeWarranty.com

IMPORTANT: For homeowners not selling or for rental property, coverage begins when payment is received and inspection is completed, Company accepts application and inspection report and issues a contract number. Payment plans require a $75 deposit, followed by 12 or 22 monthly payments.

Single Family Home Silver Plan

q 14 months $375 or q $27.00 per month q 2 years $625 or q $26.75 per month Gold Plan q 14 months $475 or q $35.75 per month q 2 years $795 or q $35.00 per month Platinum Plan* q 14 months $795 or q $64.00 per month q 2 years $1325 or q $60.50 per month

Condo or Town Home Silver Plan

q 14 months $325 or q $22.50 per month q 2 years $545 or q $22.50 per month Gold Plan q 14 months $425 or q $31.50 per month q 2 years $715 or q $31.00 per month Platinum Plan* q 14 months $745 or q $59.50 per month q 2 years $1245 or q $56.75 per month

$______ $______ $______ $______ $______ $______ $______ $______ $______ $______ $______ $______

*Please choose three additional items to be covered Call for pricing on Duplex, Triplex and Fourplex properties or multi-family units

3. ADD ADDITIONAL OPTIONS

Add duplicate systems or items, or choose 3 additional items for the Platinum Plan (hot tub, pool or the combination each count as 2 additional items). Please call for 2-year pricing or to double coverage on kitchen and laundry appliances.

q $125 Heating system q $95 Water Heater q $125 A/C, evaporative cooler or whole house fan q $95 Refrigerator q $50 Stove q $95 Built-in double oven q $50 Dishwasher q $50 OTR microwave oven q $40 Trash compactor q $50 Central vacuum q $40 Garbage disposal q $50 Washer

q q q q q q q q q q q

$50 Dryer $50 Garage door opener $60 Gas fireplace $40 Sump pump $50 Roof $90 Well $50 Septic tank $75 Sewage ejector pump $150 Pool $150 Hot tub $195 Pool & hot tub combo (with common equipment)

q Blue Ribbon Premier Upgrade q $75 or q 2 years $150 $______ q Preventive Maintenance q $75 or q 2 years $150 $______ Check & Cleaning q Supplemental Coverage q $125 or q 2 years $250 $______

If heating system is excluded from Silver, Gold or Platinum Plan, subtract $70 from total cost. Excludes Condominium or Town Home Plan. No other discounts apply.

4. TOTALS

$________ Plan cost $________ Additional options and upgrades $________ Total due We accept Visa, Mastercard and Discover by phone Please make checks payable to Blue Ribbon Home Warranty 1/2019

303.986.3900

Sample contract Homeowner Policy

Blue Ribbon Home Warranty (“Company”) will help repair or replace at Company’s sole option, those systems and appliances that are covered by the terms and conditions of this contract, when they become inoperative due to normal wear and tear mechanical failure. Coverage is available for Homes, Condominiums, Town Houses, Duplex, Triplex, Fourplex, Multi-Family Units, Investment Property, Manufactured and Mobile Homes (manufactured after 1967). Coverage on lease options is available for lessee only. Limitations on coverage, terms and conditions are set forth in this contract.

Homeowner Coverage: Begins when payment is received, inspection is completed, Company accepts application and inspection report and issues a contract number. Company will provide a pre-inspection (see application for details) as long as warranty is paid for. Pre-inspection may not be available in some areas.

Homes, Condominiums, Town Houses, Duplex, Triplex, Fourplex, Multi-Family Units, Investment Properties, plus Manufactured and Mobile Homes (manufactured after 1967) are covered up to 14 months or 2 years.

DECLARATION

1. Covered items must be in place and in good and safe working order at the start of coverage. Unknown pre-existing conditions will be covered if, at the time coverage began, the defects or malfunction would not have been known to the Homeowner or Home Inspector by visual inspection and by operating the system or appliance. Known defect or defects found at the time of the inspection are excluded from coverage until Company receives proof of completed repair. This contract only covers items within the perimeter of the main foundation and/or perimeter of the attached or detached garage and only covers one of each listed item, unless duplicate systems or duplicate appliances have been paid for. Unless an item is listed as being covered, it is excluded.

2. Additional Coverage may be added to contract within the first 30 days if items are in good and safe working order.

3. Company is not liable to perform routine maintenance without the addition of Preventive Maintenance Plan.

4. No warranty or guarantee given by any outside person, firm or corporation shall be binding on Company.

COVERED SYSTEMS

SILVER PLAN

Plumbing: Leaks or breaks in water, waste, vent or gas lines, angle stops, risers, gate valves, shower and tub valves, toilet mechanisms, wax ring seal, stoppage in interior drain, waste and vent lines, permanently installed sump pumps, built-in bathtub whirlpool (drain and fill) motor and pump assemblies, garbage disposal and water heater. When necessary water heater replacement will be with like capacity up to 50 gallons. Excluded: Plumbing fixtures (faucets, sinks, toilets, tubs, showers, enclosures and base pans), urinals, power flush mechanisms, instant water dispensers, electronic controls, touch controls, caulking and grouting, stoppage in incoming water lines, water flow restriction caused by chemical or excessive mineral deposits, insufficient or excessive water pressure, pressure regulators, on demand systems, main sewer line, water softener, septic tanks, sewage ejector pumps, circulating pumps, sprinkler systems, saunas, steam rooms, timers, collapsed pipes, polybutylene lines or abs (manufactured in the mid 1980s) plastic piping, tanks (oil, pressure, expansion, storage or sidearm unit, etc.), sedimentary buildup, hose bibs or blockages caused by foreign matter. Dedicated plumbing associated with excluded items is excluded.

Electrical: Main panel, sub panels, breakers, switches, outlets, wiring, ground fault interrupters, junction boxes, exhaust fans, ceiling fans (excludes remote transmitter and light kits), doorbell

and garage door opener. Excluded: Lighting fixtures, attic fans, intercom, burglar, smoke and fire alarms, chimes, low voltage lighting controls, garage door, springs, tracks, photo eye, transmitter, security touch pad and panels that have lost their UL listing.

Dedicated electrical associated with excluded items is excluded.

Appliances: Oven, range, dishwasher, trash compactor, over the range microwave oven, central vacuum system (motor), refrigerator (including icemaker and dispensing equipment). Note: Built-in double oven will be covered as a typical oven if additional fee has not been paid and it is the only oven. Excluded: Clocks or self-cleaning mechanisms (unless it affects the function of the oven), timers, rotisserie, meat probes, interior lining, door glass, tubs, water reservoirs, refrigerant and refrigerant recapture, ceramic and glass stove tops, sensi-heat burners, refinishing or replacement of counter tops, cabinets, tile and floors, portable dishwashers, countertop microwave ovens, appliance knobs and handles, lights, tracks, removable baskets, lock and key assemblies, springs and hinges, multi-media displays or food spoilage.

Heating Systems: Gas, electrical, electrical perimeter heating, baseboard convectors, hot water system, burners, thermostats, motors, gas valves and relays. Note: Dual pack or Heat pump (air, water or ground geothermal) is covered if plan includes heating and cooling system coverage. Excluded: Portable units, wall units (that are not main source of heat to the home), filters, electronic air cleaners, humidifiers, registers, tanks (oil, pressure, expansion, storage or sidearm unit, etc.), circulating pumps, fill valves, backflow preventers, purging, steam systems, glycol filled systems, stoppages in water lines, water flow restrictions, chemical or mineral deposits, baseboard casings, fireplaces and key valves.

Ductwork: Sheet metal that has become detached at the registers or grills. Excluded: Flue ducts, vent dampers and power vent unit, zone damper systems, registers or grills, collapsed, crushed or improperly sized systems.

GOLD PLAN

Covers all Silver Plan items, plus washer, dryer, one cooling system (ducted air conditioner or evaporative cooler or whole house fan).

PLATINUM PLAN

Covers all Gold Plan items, plus Blue Ribbon Premier Upgrade, Preventive Maintenance Check and Cleaning, a second garage door opener, and three items from additional items list on application (items must be included in sale and in good working order when they are added). Note: Hot tub, pool or the combination, each count as two additional items.

ADDITIONAL COVERAGE

Choose from additional items list on application for pricing or adding “Duplicate and/or Additional” items to a plan.

Washer and/or Dryer: All mechanical parts. Excluded: Plastic mini-tubs, soap dispensers, filter screens, knobs, dials, springs and hinges, venting or lint screens and damage to clothing.

Ducted Air Conditioning System, Evaporative Cooler or Whole House Fan: Compressors, condensers, motors, thermostats and refrigerant leaks. Note: Coverage on the cooling system is contingent upon receipt of Company approved inspection report done while unit is up and running. If Company approved inspection has not been performed, please call Company to schedule inspection (cost $65). Inspections done May through October, weather permitting. Excluded: Refrigerant and refrigerant recapture, conversion, condenser casings, roof jacks, stands, registers, filters, electronic air cleaners, gas air conditioners, window and wall units that are not ducted. Note: If the Company determines that the air conditioning unit must be replaced, the Company will

replace with comparable unit meeting current federal, state and/ or local government efficiency standards.

Roof: Covers leaks only. Excluded: Patio, porches, decks, metal roofs, masonite (hardboard, omni board, woodruff) shingles or cemwood shakes, tiles, asphalt, flashing, skylights, or if roof has deteriorated to such an extent that it can’t be fixed or needs to be replaced.

Gas Fireplace: Gas valve, pilot assembly, thermocouple and blower fan. Excluded: Manufactured logs, glass doors and remotes.

Pool and/or Hot Tub (including Salt Water Pool): All parts of the heating and pumping systems. Pool and/or hot tub (including exterior hot tub) are covered if they use common equipment. If they do not use common equipment, only one or the other is covered, unless an additional fee is paid. Note: Coverage on the hot tub and/or pool is contingent upon receipt of Company approved inspection report done while unit is up and running. If Company approved inspection has not been performed, please call Company to schedule inspection (cost $65). Excluded: Pool sweep motors, lights, liners, filtration system, jets, control switches, computerized control boards and ozonator, fuel storage tanks, built-in or detachable cleaning equipment including pop-up heads, turbo valves or covers.

Well Pump: All parts of well pump used for main dwelling only.

Well must be primary water source to residence. Excluded: Well casings, tanks (pressure, expansion, holding or storage, etc.), gauges, piping, control panels, electrical lines leading to or connecting pressure tanks and main dwelling or re-drilling of wells.

Septic/Dry Refuse Tank (for domestic use only): We will clear main line stoppages that can be cleared through an existing access. If the stoppage is due to septic backup, we will pump the septic tank once during the contract term. Excluded: Broken or collapsed sewer lines, roots, stoppages that prevent the effective use of any sewer machine cable, cost of finding or gaining access to septic tanks, cost of sewer line hookups, disposal of waste, chemical treatment of the septic tank and/or sewer lines, tanks or leach lines, cesspool, any mechanical pump or systems and excavation.

Sewage Ejector Pump/Lift Station: Failure of ejector pump if located within the main dwelling. Excluded: Sewer line and inaccessible pump.

BLUE RIBBON PREMIER UPGRADE - (PUG) (included in Platinum Plan): Appliances: rollers, racks, removable baskets, rotisseries, handle knobs, buckets, lights, lock and key assemblies and shelves. Air conditioning: window unit. Garage Door: hinges, springs and remote. Plumbing: main sewer line cleaning, faucets (chrome), shower heads and arms, toilet tank and bowl (2 pieces white), urinals, power flush mechanisms, hose bibs (excludes freezing), pressure regulators and hot water dispenser.

Heating system: registers and grills. Maximum limit $120 per system per contract period.

PREVENTIVE MAINTENANCE CHECK AND CLEANING (PMC) (included in Platinum Plan): At your request and with the payment of the co-pay per item, we will perform one preventive maintenance check per item during the term of this contract on any of the following covered items: kitchen appliances, laundry appliances, water heater, heating system, cooling system, and garage door opener. Note: Co-pay is not waived on renewals.

SUPPLEMENTAL COVERAGE - (SHC): Additional coverage for boiler: circulating pump and fill valve. Tank-less water heater: all mechanical components. Code upgrades associated with necessary heating system, air conditioner and water heater replacement. Power Vents. Maximum limit: $1400 per contract.

TERMS OF COVERAGE

Service: When service is needed, you must telephone Company directly within three days after the problem is discovered, 303.986.3900 or Toll Free 800.571.0475. Company accepts service calls 7 days a week, 24 hours a day.

1. Service technicians are chosen by Company, in its sole and absolute discretion. Homeowner, Investor or their Tenant agree to pay the $65 co-pay for each service call and are responsible for all charges, if not covered. If technician is not available, the Company may authorize Homeowner, Investor or their Tenant to contact a local technician. Company will reimburse for covered claims with a valid authorization code (minus co-pay) on invoices submitted within 30 days of claim. Homeowner, Investor or their Tenant are responsible for any trip/fuel charges that may be assessed and for missed service calls. Payment should be made to the Company’s service technician at the time the work is performed. Company will have no further responsibility under this contract and will not respond to any new request for service, when any previous bills are outstanding. Failure to pay such fees will result in suspension of coverage until the fees are paid. At that time, coverage will be reinstated, but the contract period will not be extended.

2. Service Guarantee: A service technician will respond within 24 hours of your placed service call to schedule an appointment or the co-pay may be waived. Homeowner, Investor or their Tenant are required to be available for contact, service and to establish necessary appointments. Limitations: Weekends and holidays (weekends and holidays begin at 5 p.m. the previous day).

Non-emergency repairs will be made during normal business hours. If you should request us to perform non-emergency service outside of normal business hours, you will be responsible for payment of additional fees, including overtime. Reasonable efforts will be made to expedite service in emergencies. Company will decide what constitutes an emergency.

3. Any repair or replacement of systems and appliances under this contract is warranted for 30 days. If such system or appliance fails for similar reasons after this time, an additional co-pay will be incurred by the Homeowner, Investor or their Tenant to address the problem. Co-pays and charges will be paid by the Homeowner, Investor or their Tenant in accordance with the service technician’s usual rate schedule existing at the time that services are rendered.

There may be an additional fee charged by the service technician to dispose of old system and appliance after completion of work.

misuse, noise, rust or corrosion, parts not available, discontinued parts, fire, smoke, earthquake, storms, lightning, flood, water, freezing, roots, theft, accidents, war, riots, vandalism, settlement of earth, pest or pet damage, acts of God, conditions beyond Company’s control and any problems caused in any fashion as a result of asbestos or other toxic materials.

4. Company will not upgrade or pay for additional cost or expenses that may be required to complete repairs due to, but not limited to, building or zoning code requirements or violations and connection or disconnection from public utilities. This includes city, county, state, federal and utility regulations and upgrades required by law and cost of permits, if required, at time of service.

5. If Homeowner, Investor, Tenant or other service technician alters, installs, repairs or modifies any system or appliance covered by this contract or damages it in the course of any remodeling, installs, repair or misuse, Company is no longer obligated to provide coverage or service with regard to that item.

6. This contract does not cover systems or appliances that are underground, encased in concrete or otherwise inaccessible.

Company will restore drywall to a rough finish when it is necessary to open walls to complete covered repairs. Company is not responsible for trim, texture, paint, wallpaper, tile, wood, carpet or the like which in any respect may be damaged as a result of the Company’s attempts to repair or replace systems and appliances covered by this contract. Company is not responsible for the costs of finding, gaining or closing access to covered items or for additional charges to remove or install related or non-related equipment to make a covered repair or replacement.

7. Homeowners, Investors and Tenants only remedy for damages from liability claim against the Company, regardless of the form of action, shall not exceed the reasonable market cost for repair or replacement of item in dispute and shall not include consequential, secondary, special, punitive or other damages.

8. Company is not responsible to repair or replace systems and appliances classified by the manufacturer as “commercial” or commercial equipment modified for domestic use, or residential properties used in a commercial venture.

9. Common systems, appliances, areas and facilities are not covered unless the plan is for an approved duplex, triplex or fourplex property and owned by the party named in this contract. Units of five or more must be covered individually.

10. Solar systems, equipment and components, including solar heating and hot water systems and holding tanks, are not covered.

4. Any calls for service must be made within the contract period.

EXCLUSIONS AND LIMITATIONS OF LIABILITY

1. The Company has the sole right to select the technician to perform service, is not liable for service performed without its approval and will not reimburse the policy owner for unauthorized repairs.

2. Company has the sole right to determine whether to correct a malfunction by repair or replacement. Parts and replacements will be with similar quality and efficiency, except as noted in contract.

Company is not responsible for matching dimensions, brand or color of covered items or for repairs arising from manufacturer’s recall of covered items or any items while still under an existing manufacturer’s, distributor’s or other warranty. Company is not responsible for the disposal of any items, including any haul-away fees.

3. This contract does not cover systems or appliances for repairs, upgrading or replacements required as a result of improper installation, inadequate wiring, capacity, lack of efficiency, overloads, power failures, missing parts, failure to clean or maintain, neglect,

11. Electronic or computerized management and appliance management systems are not covered.

12. Maximum coverage shall be up to $2000 for each gas, electrical and hot water heating system, heat pump, dual pack, air conditioner or evaporative cooler, $1600 for electrical system, hot tub or pool, $1000 for each water heater, $750 for each refrigerator, $250 for each icemaker (icemaker repairs also count towards refrigerator maximum), $250 for hood, kitchen or bathroom exhaust fans, $600 for each sewage ejector pump, garage door opener, kitchen or laundry appliance, $1500 for each built-in double oven (double coverage not available on built-in double oven), $1000 for each gas fireplace, $800 for each whirlpool tub, $1200 for each well pump, $500 for septic system pumping , $350 for roof leaks, $250 for lead or galvanized piping, per contract term and $120 for each ceiling fan or drain cleaning. Company reserves the right to issue cash back on any item covered by contract in lieu of repair or replacement. Cash reimbursements are based on our negotiated rates with our suppliers for repairs or replacements. Accounts

receivable and outstanding balances may be deducted from any claims over $100. An administrative fee, up to 8%, will be charged on all monthly billings. Cash reimbursement transactions are valid for 90 days.

13. Foundation or structural elements, including but not limited to walls, concrete, beams or similar structural components and cosmetic defects or design flaws are not covered by this warranty.

14. This contract may be governed by the provisions of the “Colorado Consumer Protection Act” or the “Unfair Practices Act”, Articles 1 and 2 of Title 6, C.R.S. and the homeowner may have a right to civil action under such laws, including obtaining the recourse or penalties specified in such laws. The losing party in any legal dispute involving this contract shall pay the prevailing party’s court costs and attorney fees.

15. Please see Declarations, Covered Systems and Additional Coverage sections for additional limitations.

CANCELLATION AND TRANSFER

1. Company may declare this contract void

i. in the event of fraud or of material misrepresentation by Homeowner, Tenant or Representatives of any fact or circumstance relating to the systems or appliances covered by this contract. ii. premium, co-pay or accounts receivable not paid. Accounts receivable may be turned over to collections if not paid within 60 days. iii. in the event of a threat to harm, or actual harm to the safety or well being of Company, any employee of Company, a Service Contractor, or any property of Company or a Service Contractor.

2. This warranty policy is transferable, agreement remains with the property and may be extended for an additional fee.

3. Homeowner may cancel this policy upon 10 days prior written notice to the Company, and shall be entitled to a pro rata refund of the paid contract fee for the unexpired term, less an administrative fee (10% of the contract price) and any costs or expenses incurred

by Company in providing services to the homeowner, including costs/expenses paid by Company for service calls and parts.

Homeowner shall be liable to pay Company any amounts exceeding the contract price due to costs or expenses incurred by the Company and costs/expenses relating to the warranty services.

Homeowners who pay on a monthly basis for a specific coverage period may cancel this policy upon 10 days written notice to the Company and shall then pay to Company the total monthly payments due up to and including the date of cancellation, plus an administrative fee (10% of the contract price) and any costs or expenses incurred by Company in providing warranty services to the homeowner from the start of the contract term until the date of cancellation, including costs/expenses paid by Company for service calls and parts.

RENEWALS

1. Upon receipt of payment, Company may elect to renew this contract at Company’s option, contract owner will be notified by mail and contracts are for 12 months of coverage.

2. Fourth term of coverage will be provided free, upon property owner’s request, as long as Company has paid no claims for three consecutive terms. New Construction Plans excluded.

3. Homeowner acknowledges that each party or parties have read, understand and agree to the terms and conditions of this contract and acknowledge receipt of an exact copy of this contract.

Terri Lane

By ____________________________________________________________ By ____________________________________________________________ WARRANTY RECIPIENT DATE PRESIDENT DATE

blue ribbon Home Warranty Incorporated

This contact and its contents are subject to copyright and are the exclusive property of Blue Ribbon Home Warranty, Inc. Copying, reproducing, or facsimile is prohibited without prior written authorization of Blue Ribbon Home Warranty, Inc. Prices and terms are subject to change.

Copyright © 1985 - 2019 BRHW, Inc. Blue Ribbon Home Warranty, Inc. All rights reserved.

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