Bernal-Smith Group Seller's Guide

YOUR EXCLUSIVE GUIDE TO

SELLING A L U X U RY H O M E

LUCIO BERNAL CRS, CLHMS, CalBRE# 01236217

310.383.2466

Lucio.Bernal@camoves.com

JON M. SMITH CalBRE# 01959566

323.309.6416

Jon.Smith@camoves.com

M E E T BERNA L □ SMIT H G ROUP As luxury experts in Palm Springs, the Bernal-Smith Group offers a wealth of knowledge and expertise that is unsurpassed; you can always trust their service and commitment to you.

Lucio Bernal has served affluent clientele for over 20 years. He offers keen insight into executive and corporate relocation services, and understands and adapts to constant changes in the luxury market. His expertise is why his clients are excited to refer his services to their family, friends, and colleagues. He is a Broker Associate, Coldwell Banker Global Luxury Ambassador, a Luxury Property Specialist, an expert trainer with The Institute for Luxury Home Marketing, and served as President of the Palm Springs Regional Association of REALTORS® after having been named the association’s REALTOR® of the year in 2015.

Jon M. Smith comes from a marketing background. His skills in organization and human relations is what strengthens the Bernal-Smith Group’s success. Jon understands and seeks optimal understanding in all of their client’s needs and expectations. Facilitating transactions and showing property is essential to successful completion of the Bernal-Smith Group's efforts in real estate.

Lucio and Jon also hold great importance to servicing their clients that are in modest to more affordable homes and condos.

They treat all of their clients with extreme care and attention.

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Coldwell Banker Global Luxury Property Specialist Coldwell Banker Global Luxury Ambassador Certified Luxury Home Marketing Specialist – Million Dollar Guild 2017 President of the Palm Springs Regional Association of REALTORS® Certified Residential Specialist, Pricing Strategy Advisor

C O N T E NT S Introduction

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Our Commitment to You

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Define Your Goals

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Price Your Property

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Prepare Your Home

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Market the Home

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Show the Home

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Ask for Feedback

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Negotiate the Offer

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Remove Contingencies

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Close the Deal

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Moving-Out Checklist

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Frequently Asked Questions

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A Home Seller's Glossary

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Your Guide to Selling a Home in the Prestigious Market Selling a luxury home requires calculated finesse, the right connections, exceptional marketing capabilities, and a thorough understanding of the luxury market.

Our exclusive guide is intended to provide a tangible resource in the process of selling your luxury home.

Our guarantee is to commit to the utmost discretion and provide personal concierge services through the process of selling your home.

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SIGNING A LISTING AGREEMENT A listing agreement is a contract between you and your Realtor. It is an agreement that says the agent has the right to list, advertise, and handle the sale of your house. It is important to understand the terms of agreement because you will be bound by them - forming an obligation of time and commitment of responsibilities.

KEY FACTORS:

xx COMMISSION. The amount you’ll pay your agent. xx EXCLUSIVE RIGHT TO SELL. This gives your agent the right to sell your property. xx DURATION. The amount of time the listing agreement is in effect. xx PROTECTION CLAUSE. A clause that protects the agent or broker after the date, preventing you from avoiding payment to your agent should you find a buyer while under contract. xx DUTIES. The agreement lays out the activities the agent is authorized to conduct on your behalf. xx REPRESENTATIONS. The agreement may also require you to verify certain legalities and facts about your home. xx DISPUTE RESOLUTION. Specifies how you will handle disputes that cannot be worked out informally.

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OU R C OMMITMEN T TO YOU It is important to work with Realtors who are not only committed to working with you, but who are also dedicated to finding you the RIGHT home. Your Realtor should be someone you trust and who is protective of your interests. As your Realtors, this is our commitment to you: CONCIERGE To focus on your specific needs and take care of all the small details, so you don't have to.

RESPONSIBILITIES To educate you about the professional responsibilities, including disclosure, loyalty, confidentiality, compliance, and accountability.

VIEWING AND ASSESSING HOMES To view homes with you, provide a comparative analysis, and work with experts who can provide an in-depth analysis and advice.

CONSULTATION AND NEGOTIATION To provide full service consultation, together with expert negotiation on pricing and terms, with management of all documentation.

UNDERSTANDING YOUR REQUIREMENTS To take the time to understand your requirements – location, property type, purpose, your must haves, local amenities – even if your goals changes.

CLOSING To keep you fully informed about all activities that lead to the transaction closing.

RESEARCHING THE MARKET To provide a sophisticated home search that will assist you with previewing homes and to keep you informed as new homes come on the market.

DISCRETION To always keep your interests and privacy secure, so you know that you are working with someone with the utmost discretion.

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D E FI N E YO UR GOAL S Determine Why You Are Selling Everyone has different reasons for selling - as you start to go through this process of discovery, focus on what is important to you and your family.

Here are four important questions to ask yourself: xx Why do you want to move? xx Is there a timeline? xx Are you relocating? xx Are there financial considerations?

Here are three important considerations: xx Is this the right time for you to sell? xx What are the present market conditions and the implications to your sale? xx Does your home’s equity give you an advantage?

Recognize that every market is different and the selling process can be a sprint or a marathon - be prepared for both.

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CHOOSING A TITLE COMPANY In preparation for selling your home, we will want to ensure the title is clear before placing it on the market. If a title is clouded (not clear), appropriate measures will need to be taken to clear it.

REASONS FOR A CLOUDED TITLE: 1.

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Recording Error Fraud Liens Probate Issues Foreclosures

PR I C E YOUR PROPERTY Pricing it Right the First Time While not all homes are the same and your luxury home may have some unique features, it is important that we price your home correctly from the beginning to avoid having to lower the price at a later date. The correct price can be determined by a market evaluation.

Price sets “the opinion of value.� Price it too high against comparable properties and your home may not sell.

Price it too low and you may not achieve the true value of your home.

THE FAIR MARKET VALUE IS INFLUENCED BY: Location Condition and Its Unique Features Buyer Femand Prices of Similar Properties on the Market Recent Sales Availability for Financing

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PR E PA R E YOUR H O ME Let Your Home Win Over Buyers Every home requires at least some version of preparation, whether that is de-cluttering, defining each room's purpose, staging, or major renovations. As your real estate consultants, we will review your home together and we will advise you based on our experience and your needs the proper preparation needed for your home.

HELPFUL TIPS: xx Scrutinize the home. If you were a buyer, would you want to buy this home? You have lived here and know all the pros and cons. Highlight the pros and eliminate the cons. xx Don't forget about the outside.

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M A R K E T T H E H O ME The Keys to Getting Your Home Sold Each home has its own unique story to tell and the marketing should reflect that. Take time and sit down with your Realtors to discuss a marketing plan to successfully market the home. A comprehensive and customized marketing strategy will complement the time, money, and energy that you have invested in your home.

LOCATION

LUXURY ADVERTISING

Understanding your location’s positives and negatives are very significant in the marketing of your home.

Misconceptions, preconceptions, and knowing the nuances of your home can make a significant difference in how a home is marketed, when it’s shown, and how it is positioned.

For luxury homes, local advertising is not sufficient - these unique often specialist appreciated homes need exposure to the elite and discerning. We showcase your home to these affluent buyers through publications such as The Wall Street Journal, Unique Homes, The New York Times, Robb Report, Mansion Global, and more.

NETWORKING AND REFERRALS Realtors will utilize their network and referral systems to create additional sources for potential buyers. Networking with other local, national, and international relocation experts creates a larger database. Local advertising, word-of-mouth, and open houses create referrals from local Coldwell Banker GLOBAL LUXURY homeowners who are the biggest advocates for having their friends and family move into their neighborhood.

Lucio.Bernal@camoves.com

The trusted yard sign is the #1 way to show your home is for sale. It is fast, effective, and easy to spot.

Directional signs help guide people to the home.

Vista Las Palmas Coldwell Banker Residential Brokerage 1081 N Palm Canyon Drive Palm Springs, CA 92262 Each office independently owned and operated.

LUCIO BERNAL CalBRE# 01236217 CLHMS, Million Dollar Guild

310.383.2466

Lucio.Bernal@camoves.com

Each office independently owned and operated.

CalBRE# 01236217 CLHMS, Million Dollar Guild

Each office independently owned and operated.

Jon.Smith@camoves.com

In today’s current market, selling homes is as much an art as it is a science.

Entrust the Bernal-Smith Group with the duty of taking care of all your real estate requirements from the smallest detail to the most important transaction of negotiating your final contract.

YOUR DEDICATED REALTORS ® AND PARTNERS

PALM SPRINGS 310.383.2466

Lucio.Bernal@camoves.com

JON M. SMITH

STUNNING DESERT OASIS

Our goal is to become your preferred REALTORS® of choice. By working with the most innovative real estate brokerage, Coldwell Banker Global Luxury, we can offer you a platform of services that will raise the marketing of your home

CalBRE# 01959566 ILHM Member

323.309.6416

When you choose the Bernal-Smith Group, you also choose to work with one of the most elite and sophisticated brokerages in the world, Coldwell Banker Global Luxury.

39100 VISTA DUNES ROAD

R A N CColdwell HO M I R AGlobal G E ,Luxury C A redefines 9 2 2 7the 0 world of luxury real estate Banker marketing. The prestige of the Coldwell Banker® name, combined with stateof-the-art technology, bespoke marketing strategies, and one of real estate’s most robust global networks encompassing 88,000 independent sales associates in approximately 3,000 offices in 49 countries and territories, culminates in extraordinary representation that crosses oceans, continents, and language barriers. Our Luxury Property Specialists — many of whom rank among the top luxury real estate agents in the world — have a track record of representing some of the most significant properties of all time. Your luxury is our legacy.

CRS, CLHMS, CalBRE# 01236217

310.383.2466

David and Anna

If you are looking to sell, let us help you achieve exceptional results.

Call us today at 310.383.2466 Not intended as a solicitation if your property is already listed by another broker. E&OE. Published by REAL Marketing (REM) | www.REALMarketing4You.com | 858.847.8631 | ©2018

JUST SOLD

Lucio.Bernal@camoves.com

JON M. SMITH CalBRE# 01959566

323.309.6416

Jon.Smith@camoves.com

Presented By The Ber nal-Smith Group prepared especially for

Not intended as a solicitation if your property is already listed by another broker. E&OE. Published by REAL MArketing (REM) | www.REALMarketing4You.com | 858.847.8631 | ©2018

David and Anna Pendergast

The Bernal-Smith Group

negotiated the sale of this home for

100% OF CLIENT ASKING PRICE IN 2 WEEKS!

Call us today 310.383.2466 to achieve these exceptional results.

39100 VISTA DUNES ROAD RANCHO MIRAGE, CA 92270

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J A N U A RY 2 0 1 8 R E A L E S TAT E MARKET REPORT

323.309.6416

Jon.Smith@camoves.com

W W W. V I S TA L A S PA L M A S L I V I N G . C O M

L U X U RY H O M ES d es er v e L U XU RY MA RKET IN GU A RYEXP JAN 2 0 1 8 ER T S R E A L E S TAT E MARKET REPORT

W W W. O L D L A S PA L M A S L I V I N G . C O M

L U X U RY H O M E S d es er v e L UX URY M ARKET IN G EXP ER T S

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can confidently provide an exclusive, unique marketing strategy that comes from their expansive knowledge, experience, and competence in selling and buying homes within this discerning market.

As the only members of the Institute of Luxury Home Marketing in Vista Las Palmas and Palm Springs, and Coldwell Banker’s Global Luxury Property Specialists, they

Your property’s exposure is further assured through Lucio’s position as one of seven Global Luxury Ambassadors for Coldwell Banker and locally through his dedicated service as President of the Regional Association of REALTORS.

chieving the maximum value of your home requires both local and global exposure. Lucio and Jon not only offer exceptional, superior service levels, but unsurpassed marketing exposure and connectivity to affluent clients throughout the world.

FOR WORLD CLASS LIVING IN PALM SPRINGS

LUCIO BERNAL

CalBRE# 01959566 ILHM Member

Jon.Smith@camoves.com

LUCIO BERNAL WORLD CLASS LI VI NG IN

Coldwell Banker Residential Brokerage 1081 N. Palm Canyon Drive Palm Springs, CA 92262

JON M. SMITH CalBRE# 01959566

323.309.6416

to a new level and allow us to exceed your expectations.

-WORLD CLASS LIVING IN PALM SPRINGS-

Old Las Palmas JON M. SMITH

Coldwell Banker Residential Brokerage 1081 N Palm Canyon Drive Palm Springs, CA 92262

Bernal-Smith Group

LUCIO BERNAL CRS, CLHMS, CalBRE# 01236217

310.383.2466

YARD SIGNS AND DIRECTIONAL SIGNAGE

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chieving the maximum of your homeGroup can confidently provide an exclusive, unique marketing Presented

By Thevalue Bernal-Smith requires both local and global exposure. Lucio strategy that comes from their expansive knowledge, and Jon not only offer exceptional, superior experience, and competence in selling and buying homes service levels, but unsurpassed marketing exposure and within this discerning market. connectivity to affluent clients throughout the world.

Your property’s exposure is further assured through Lucio’s As the only members of the Institute of Luxury Home Marketing in Old Las Palmas and Palm Springs, and Coldwell Banker’s Global Luxury Property Specialists, they

Jonathan and Angela-Marie, Please contact us directly for a confidential appointment to review how we can offer you the most effective, locally, and globally targeted marketing plan for your unique and exceptional property.

Call us today at 310.383.2466 or 323.309.6416.

position as one of seven Global Luxury Ambassadors for Coldwell Banker and locally through his dedicated service as President of the Regional Association of REALTORS.

Jonathan and Angela-Marie, Please contact us directly for a confidential appointment to review how we can offer you the most effective, locally, and globally targeted marketing plan for your unique and exceptional property.

Call us today at 310.383.2466 or 323.309.6416.

Presented by The Bernal-Smith Group YOUR OLD LAS PALMAS REAL ESTATE SPECIALISTS

Prepared Especially for Jonathan and Angela-Marie Williams

Presented by The Bernal-Smith Group YOUR VISTA LAS PALMAS REAL ESTATE SPECIALISTS

Prepared Especially for Jonathan and Angela-Marie Williams

PHOTOGRAPHY

VIRTUAL TOURS/ONLINE VIDEO MARKETING

A key element to all marketing is the right photography.

Your home has five seconds to impress and grab attention.

The right photography can give you an extra 20 seconds and a great photo can evoke emotion. This is where they fall in love first. Skilled professionals know how to use composition, color, and lighting to enhance the subject.

Creating a digital experience and footprint is an integral part of advertising in the 21st century.

PROFESSIONAL PRINTED MATERIALS

The power of showcasing your home and its unique features through professional photography and sophisticated marketing materials is crucial to setting your home apart WEB EXPOSURE from the competition. Promotional materials that feature 95% of buyers look at homes online as their first step in the your home and are mailed to your neighbors, potential home buying process. This trend will continue to increase buyers, and other Realtors are some of the most powerful over time. Placing your home online allows the home’s ways to spread the message that your home is for sale. exposure to be seen locally, nationally, and internationally, whether it is on a computer, tablet, or cell phone.

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S H OW T HE H OME Letting Your Home Shine When showing a luxury home there are always special considerations. Most often private and pre-qualified showings are the best course of action to narrow down the field of qualified buyers.

Here are some things to consider when showing your home:

LET YOUR AGENT HANDLE IT A potential buyer is less likely to voice any concerns in front of you. Give them the space to explore and scrutinize. Remember your Realtor is your ally, let us handle any concerns a buyer may have.

BE FLEXIBLE Like many home sellers, home buyers are on a tight schedule. Continue to be flexible, especially if you are still living in the home.

CLIMATE CONTROL Make sure the temperature of the home is comfortable. You want buyers to feel comfortable and not rush the process because they are too hot or too cold.

ANIMAL CARE A pet-friendly home is a great selling point. However, if potential buyers are not animal friendly you don’t want your pet(s) to be a distraction. If you can, remove them from the home temporarily or place them in a contained space.

COMMUNICATE WITH YOUR REALTOR If there are special aspects to the home that you want to be featured and recognized during the viewing of the home, make sure to communicate that clearly to your Realtor.

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A S K FO R FEE DBAC K Knowing is Half the Battle It is never easy hearing negative remarks about your home, but knowing is half the battle. The information provided could be helpful for the next showing. Following a showing, discuss with your consultant to measure your home’s reception and consider recommendations.

REVIEW: xx Are you receiving positive feedback from private showings, Open Houses, or Brokers Opens? Use this feedback to enhance your home’s presentation for future showings. xx Could your home use an incentive to entice more buyers to come for a look? xx Be patient. Be open to feedback and continue to maintain an open dialogue with your consultant.

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N E G O T IAT E T H E O FFER Starting the Process Perhaps the most complex moment in the sales process comes when you get an offer on the home.

An offer can be drafted with or without conditions. An offer without conditions is known as a firm or contingent-free offer. An offer with conditions is known as a conditional offer, once the conditions are satisfied, the buyer or seller will be obligated to purchase or sell the property. If the conditions are not met then the buyer or seller is not obligated to purchase or sell the property.

POINTS TO CONSIDER IN YOUR NEGOTIATIONS: xx The comparative condition of your home xx Length of time on the market xx Desire of buyer xx Location xx Your urgency to sell You can reject or accept the initial offer. If you agree to some points of the offer but not others, you would submit a counter offer. The counter offer may differ from the original offer in respect to price, conditions, closing date, and the like. Offers can be countered back and forth until one party accepts or rejects the offer, ending the negotiations all together.

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RE M OV E C O NT INGE NCI ES Managing the Details Once both parties accept the sales contract and its contingencies, they will start to work towards removing these conditions.

It is important to understand the options available to you should one of the conditions you are responsible for not be removed prior to the contract date. This does not automatically mean that the ‘deal is dead’ – having a Realtor who is a good negotiator and will work with the buyer’s agent to find a solution is key.

Equally, conditions that the buyer needs to address can also be provided with extensions – this is the seller’s choice.

As your consultants, we will advise you on the right course of action based on our knowledge and experience.

Once both parties are satisfied and wish to commit to the purchase and sale of your home, a contingency removal document will be prepared for both parties to sign.

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C L O S E T H E DEAL Finalizing the Details After the contingencies have been removed, it becomes the responsibility of the legal and financial institutions to prepare all the necessary paperwork. Should any issues arise, your consultant will contact you directly.

You will need to inform the Escrow Company how you would like the funds deposited from the sale.

At closing, you will sign all of your legal documents, including paperwork related to the transfer of ownership.

There is usually a representative from the Escrow Company to facilitate the exchange.

When closing is finished, you should not only be prepared to hand over the keys, but any copies of documentation that relate to the property and its amenities. You will receive a copy of the documentation you signed together with a statement of costs. At the end of closing, the deed will be taken and recorded at the county clerk’s office.

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M OV I N G O UT C H E C KLI ST Even if you are hiring professionals to move you out there are still important considerations: Notify current utility companies - advise of new address, shut-off and connection dates, and if necessary, moving equipment: Electric Water/Sewage Trash Gas Telephone Cell Phone Cable/Satellite Internet Insurance - transfer homeowner's insurance to new home File change of address with postal service - start and end dates Notify DMV of new address - driver’s license, registration, tags Notify your bank and credit card companies of your move and that you will be making purchases in a new area Update voter registration Updated medical records - notify doctors, dentists, pharmacists Update employer records Notify children’s school and activities of move Cancel/Update gym memberships and local memberships, if not staying in area Return library books or other things you have borrowed Hire housekeeping and landscaping services to ensure the home is clean before the new buyers arrive Send out “Just Moved” cards to notify family and friends of new address

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FR E QU ENTLY AS K E D QUE ST IO NS WHEN IS THE BEST TIME TO SELL? When you are ready. Every real estate market is different, therefore, the best time to sell a home will be different from community to community. Don’t wait for perfect conditions to sell – they don’t exist.

HOW DO YOU CHOOSE A CONSULTANT? Think of the process as equivalent to giving a job interview. Do they know your local market? Price points? Types of homes? What is their track record for sales in your community? Can they provide testimonials? Ask for references!

HOW LONG DOES THE LISTING AGREEMENT LAST? Every real estate professional will have a preferred length. One thing to keep in mind when asking about the length of a listing agreement is the average days on the market. If the average days on the market in your local real estate are 75, a 90 day listing agreement may not be enough.

HOW MUCH COMMISSION SHOULD YOU PAY? Commission is negotiable, period. The saying “you get what you pay for,” is true when it comes to real estate too.

Choosing a real estate professional based solely on the fact they offer the lowest commission amount is a mistake made by home sellers when choosing a real estate professional to sell their home.

CAN I GET OUT OF A DEAL SHOULD I DECIDE THE PROPERTY OR DEAL ISN’T RIGHT FOR ME? Don’t be afraid to back out of the deal; you have never gone too far until the contingencies have been removed

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A H O M E SEL LE R’S GLOS SARY When selling a home, it’s important to understand some of the key concepts and terms. Throughout the selling process, we will be available to explain any unfamiliar terms you encounter. That said, here is a short list of terms you’ll want to know: Abstract Of Title – A complete historical summary of the public records relating to the legal ownership of a particular property from the time of the first transfer to the present.

Adjustable Rate Mortgage (ARM) – Also known as a variable-rate loan, an ARM is one in which the interest rate changes over time.

Agreement of Sale – Also known as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller and buyer agree to transact under certain terms spelled out in writing and signed by both parties.

Amortization – The process of reducing the principal debt through a schedule of fixed payments at regular intervals of time, with an interest rate specified in a loan document.

Appraisal – An appraiser’s estimate of the market value of a property, based on local market data and the recent sale prices of similar properties.

Counter Offer – An offer, made in response to a previous offer, that rejects all or part of it, while enabling negotiations to continue towards a mutually acceptable sales contract.

Debt-to-Income Ratio – A ratio that measures total debt burden. It is calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income.

Deposit – The amount of money provided from the buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. Your agent can assist you in proposing an appropriate amount for the deposit.

Assessed Value – The value placed on a home by municipal assessors for the purposes of determining property taxes.

Disclosures – Disclosure statements, which can come in a variety of forms, are the buyer’s opportunity to learn as much as they can about the property. Seller disclosures include knowledge of issues with the home. They serve to inform buyers and they can protect the sellers from future legal action. It is the seller’s chance to lay out anything that can negatively affect the value, usefulness, or enjoyment of the property.

Closing – The final steps in the transfer of property ownership. On the Closing Date, as specified by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the final disbursements are paid. Also referred to as the Settlement.

Down Payment – The money paid by the buyer to the lender at the time of the closing. The amount is the difference between the sales price and the mortgage loan. Requirements vary by loan type.

Down payments less than 20% usually require mortgage insurance.

Closing Costs – The costs to complete a real estate transaction, in addition to the price of the home and may include: points, taxes, title insurance, appraisal fees, and legal fees.

Earnest Money – A deposit given by the buyer to bind a purchase offer and which is held in escrow.

If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not fulfill all contract obligations, the deposit may be forfeited.

Closing Date – This is usually the date that the legal ownership of the property transfers from the seller to the buyer.

Conditions or "Subjects" – Items that are usually put in place to protect a party’s interests upon selling or buying the property and refer to things that must occur or be in place before the sale closes. Some of these conditions could be “subject to financing approval,” “subject to the strata council allowing pets,” “subject to the buyer’s house selling,” “subject to seller finding suitable housing,” etc.

Contingency – A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding.

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Conventional Mortgage – One that is not insured or guaranteed by the federal government.

Easements – Legal right of access to use a property by individuals or groups for specific purposes.

Easements may affect property values and are sometimes part of the deed.

Equity – The value of the property, less the loan balance and any outstanding liens or other debts against the property.

Escrow – Funds held by a neutral third party (the escrow agent) until conditions of a contract are met and the funds can be paid out. Escrow accounts are also used by loan services to pay property taxes and homeowners insurance.

Fixed-Rate Mortgage – A type of mortgage loan in which the interest rate does not change during the entire term of the loan.

Home Inspection – Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc.

Home Warranty - Service contract that covers the repair or replacement of home system components and appliances that break down.

Homeowners Insurance – A policy that protects you and the lender from natural disasters and liabilities such as a visitor injury or damage to your personal property.

Inclusions and Exclusions – Specifications within the offer that detail the items to be included or excluded from the purchase of the property. Typical inclusions are appliances, window coverings, fixtures, and decorative pieces.

Lien – A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the Title to your property if you don’t make the mortgage payments.

Market Value – The amount a buyer would pay a seller for a home. An appraised value is an estimate of the current fair market value.

Mortgage Insurance – Purchased by the buyer to protect the lender in the event of default (typically for loans with less than 20% down). Available through a government agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI).

Possession and Adjustment Dates – When the buyer takes possession as specified in contract of purchase sale and adjustments are made for prepaid taxes, maintenance fees, etc. They are usually the same date.

Purchase Contract – A detailed written document which makes an offer to purchase a property, and may be amended several times in the process of negotiations. When signed by all parties involved in the sale, the Purchase Offer becomes a legally-binding sales agreement.* Purchase Price – The amount that the buyer is offering to pay for the property, usually dependent on market conditions and may differ from the seller’s current asking price. There is no “normal” amount or percentage that a price will differ from its asking price, as the final price will be determined by many factors, including the seller’s motivation and how close the asking price is to actual “market value”.

Terms – An offer includes certain “terms”, which specify the total price offered and how the financing will be arranged, such as if you will arrange your own with a financial institution or mortgage broker, or if you wish to take over the seller’s mortgage (assumability).

Title – The right to, and the ownership of, property. A Title or Deed is sometimes used as proof of ownership of land. Clear title refers to a title that has no legal defects.

Title Insurance – Insurance policy that guarantees the accuracy of the title search and protects lenders and homeowners against legal problems with the title.

Title Search – A historical review of all legal documents relating to ownership of a property to determine if there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property.

Truth-In-Lending Act (TILA) – Federal law that requires disclosure of a Truth-In-Lending statement for consumer loans. The statement includes a summary of the total cost of credit. * The Purchase Offer and contract procedures vary by region.

Possession Date – The date, as specified by the sales agreement, that the buyer can move into the property. Generally, it occurs within a couple days of the Closing Date.

Pre-Approval Letter – A letter from a mortgage lender indicating that a buyer qualifies for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer.

Principal – The amount of money borrowed from a lender to buy a home, or the amount of the loan that has not yet been repaid. Does not include the interest paid to borrow.

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NO T E S

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We would like to thank you for giving us the opportunity to present this preview of the marketing services we can offer you and your property.

We'd be pleased to assist you with the sale of your present home and the purchase of your next home, and the next one, because we are not just providing a service, we are building relationships. Please let us know when we can be of service.

Call us before you make any important real estate decisions, you’ll be glad you did.

BERNAL-SMITH GROUP

LUC IO BE R NA L | 310. 383. 2 4 66 | LUC IO. BE R NA L @ C A MOV E S .COM JON M . SM I T H | 32 3. 3 0 9. 6 416 | JON. SM I T H@ C A MOV E S .COM Not intended as a solicitation if your property is already listed by another broker. E&OE. Published by REAL Marketing (REM) | www.REALMarketing4You.com | 858.847.8631 | Š2018