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Seller’s Hand Book

Table of Contents Pages

♦ Unconditional Guarantee........................................ ♦ The Home Selling Process ....................................... ♦ Pricing—Revisited ................................................... ♦ Condition................................................................. ♦ 91 Ways to Sell Your Home Faster .......................... ♦ Important Points When Showing ............................ ♦ Moving Checklist ..................................................... ♦ Glossary of Terms....................................................

1 2-6 7-9 10-11 12-23 24-25 26-28 29-34

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6444 Fairway Ave. SE Salem, OR 97406

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Unconditional Guarantee

Thank you for listing your home with us! Rest assured we will devote the efforts of our entire staff and sales force to finding a qualified buyer for you home. We will keep you informed all along the way. Don’t hesitate to call if you have any questions. If for any reason The Salem Real Estate Group does not provide 100% satisfactory service, just let us know, and we promise to remedy the situation as soon as possible. If you are still not satisfied, we will release you from the listing agreement with no further obligation. We’re so sure that you’ll not only be just satisfied but actually delighted . . .

Dewey Whitton - Realtor, Principal Broker CDPE, CRS, GRI

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The Home Selling Process

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Home Selling Process We have designed this document to assist you with the sale of your home. We understand the many questions and concerns of home sellers and how this information will be helpful throughout the transaction. We assure you that it is our goal to provide you with the most professional and informative service available. Dave and Dewey are always just a call away when you have question. Consultation to analyze needs Establish a working relationship Prepare your home for sale

Proactive marketing by The Salem Real Estate Group Show property to buyers Offer presentation

Earnest money

Acceptance of Contract

Inspections

Mortgage Application

Credit Report

Rejection

Underwriting

Remove contingencies Appraisal

Verifications

Conditions

Loan approval Title Company

Title exam, insurance, title survey

Assemble documents Closing (Transfer of Title) Moving Day!

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How You Control the Sale of Your Home There are four reasons a property sells: Location You have no control over the location of your home, but its location helps determine value.

Price You control this. The right price can only be determined by a well-researched market evaluation. As a homeseller, you should get a written or computerized market analysis comparing your home to similar properties in the area that have recently sold and those currently on the market.

Condition You control this also. Your home’s condition is vital to a sale. A clean, well-maintained home enjoys a competitive edge over all the other homes on the market. You’ll sell faster and at a higher price if you “stage” your home to enhance its appeal.

REALTOR®

The REALTOR® advises you on market conditions, pricing and staging recommendations, contracting, financing, title work, appraising and closing activities. Just as you insist on an experienced well-prepared doctor to treat your family, you want a REALTOR® with a proven track record who does their homework representing you in the sale of your home. Check out what Dewey’s past clients are saying about her services: http://www.zillow.com/profile/Dewey-Whitton/Reviews/

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The Showing Activity Graph

Activity Level

The graph below shows the relationship of the amount of activity to the time the property is on the market.

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Weeks on Market

The majority of prospect activity on a new listing occurs in the early period of marketing. This happens because real estate agents maintain an inventory of active prospects that have been cultivated over time. When a home is newly listed, agents arrange for them to see it. Once this active group has seen the property, showing activity decreases to only those buyers new to the market. For this reason it is important that sellers have their home in the best condition and at the best price at first exposure to the market.

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After Accepting an Offer on Your Home: Many buyers choose to have Home Inspections, at their expense, when purchasing their new home. In fact, many offers are subject to having a home inspection. By having a home inspection, the home’s vital systems are checked. A home inspection allows you to sell your home with confidence. Dave and Dewey will help you coordinate the inspection within 10 business days after a contract on your home has been accepted.

Items on your inspection report will include: FOUNDATIONS, BASEMENTS, AND STRUCTURES Basement floor and walls, proper drainage and ventilation, evidence of water seepage. EXTERIOR SIDING, WINDOWS, DOORS Exterior walls, windows, and doors; porches, decks, and balconies; garage. ROOF Roof type and material, condition of gutters and downspouts. INTERIOR PLUMBING SYSTEM Hot and cold water system; the waste system and sewage disposal; water pressure and flow; and hot water equipment. ELECTRICAL SYSTEM Type of service, the number of circuits, type of protection, outlet grounding, and the load balance. CENTRAL HEATING SYSTEM Energy source, type of cooling equipment, capacity, and distribution. INTERIOR WALLS, CEILINGS, FLOORS, WINDOWS AND DOORS Walls, floors, ceilings, stairways, cabinets, and countertops. ATTIC Structural, insulation, and ventilation information. FIREPLACE Notes about the chimney, damper, and masonry GARAGE Doors, walls, floor, opener. APPLIANCES Includes a wide range of built-in and other home appliances, smoke detectors, and television/cable hookups. LOT AND LANDSCAPING Ground slope away from foundation, condition of walks, steps, and driveway.

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Pricing—Revisited

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A quick review of what we discussed about Pricing Statements frequently heard from sellers that really have nothing to do with the home’s value “Another agent said it was worth more.” “People always offer less than asking price.” “The buyers can always make an offer.” “My neighbor was able to get his price.”

Other factors that do not affect value: ♦ ♦ ♦

Your Original Purchase Price: Chances are you paid market value. Markets change and today we have to deal with the current market conditions which may have changed significantly. Over Improvements: Improvements should be made for enjoyment, not resale. You cannot add an item to a home, select it to your style, use it, then expect a buyer to pay the original cost. The Owner’s Need for Money: The owner’s need for money or the fact that the owner is moving to a more expensive area where he/she will have to pay more for a home has nothing to do with the home’s current market value.

The Cost to Rebuild it Today

The Seller’s Personal Attachment to the Property

Certain Types of Improvements

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Dangers of Overpricing Your Home (Overpricing Can Be Costly)

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Dangers of Overpricing Your Home (Continued) ♦ You will lose the excitement that a new listing generates: Real estate agents are working with buyers who have seen what is currently on the market and are waiting for something new to be listed. Therefore, the most activity will take place in the first 30 days of a listing. Your home will probably receive its highest and best offers during this time. After that initial period, the only people to look at your home will be new buyers in the marketplace.

♦ You will lose the most qualified prospects: Buyers won’t be able to “make an offer” because they probably won’t see your property. They will view the properties that are priced within their purchase power range, knowing that they cannot afford anything above their price range.

♦ Overpricing helps sell other, more competively priced homes

first: Your home may be used to demonstrate the good value of other properties. Your objective should be to enter the market in a position that will attract prospects, not drive them away.

♦ Your home may become stale on the market: Prospects may wonder why it has been on the market so long or if something is wrong with the property, even after you lower the price. You may even have to settle for less than market value. A house takes on a reputation surprisingly fast, so don’t wear out your welcome on the market.

♦ You lose a strong negotiating position when your house is on

the market a long time, both financially and mentally: Prospects will not “rush” to make an offer on an overpriced property, and you may feel compelled to accept less when they finally do.

♦ If you do get an offer, the contract may fall through because

of appraisal problems: The lender must justify the price to the market.

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Condition

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Some Thoughts on Condition Of all the things homeowners control when selling their home, the condition of the property is one of the most important. A crucial part of marketing any product is the presentation of the product. Corporations and retail businesses understand this concept and pay millions of dollars each year to advertising and marketing consultants to get the best advice possible. The same is true for real property. In order to compete effectively with other sellers, home-owners must present their homes to the marketplace in an attractive, desirable condition. When you bought your home, you probably comparison shopped. Well, buyers are still doing that today. According to the National Association of REALTORS®, the average purchaser looks at 10 to 20 properties prior to purchasing a home. Regardless of how many properties are on the market, available buyers will always seek the best priced property that is in the best condition.

♦ Think Like a Buyer: You are not just selling a house. You are selling shelter, life-style, and dreams. People always want the best for themselves, and your home should represent the buyer’s answer to this goal. Put yourself in the buyer’s shoes! Remember, they arrive at your front door wanting to find the right home. Don’t make them search somewhere else for it. If you have done your homework, every room in your home will create a desire for the buyer to stay.

♦ Start Making a List: Walk outside and take a look at the property through the critical eyes of a buyer. Is there anything that needs painting, repairing, looks worn, or is outdated? Start writing these items down on your list. Walk through the interior and do the same things. Ask for the assistance of everyone in your family. After all, a shorter sales time will benefit everybody in the family.

♦ Do Everything Before Putting Your Home on the Market: Complete all of your repairs, improvements, and enhancements prior to your first showing. Remember, your best showings come early in the listing period. Be ready!

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6444 Fairway Ave. SE Salem, OR 97406

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91 Ways to Sell Your Home Faster and for More Money! The following pages will guide you step by step through the process of preparing your home for sale to achieve the highest possible sale price in the least amount of time. Our concentration will be in six areas:

♦Repairs ♦Cleaning ♦Neutralizing ♦Space Management ♦Atmosphere ♦Staging

Repairs 1.

The rule of thumb is, if something needs repair, fix it! There are probably many things in your home that you have simply become used to over time . . . things that you have been promising yourself that you will attend to. Well, now is the time. The buyer will mentally add up the cost of repairing all those minor flaws and end up with an amount that is generally much higher than what it would cost you to do the repairs. You might be saying to yourself, “These repairs aren’t any big deal.” But the buyer is thinking, “If the owners didn’t care for these little items, then what about the roof and the furnace?” Needed small repairs and perceived owner neglect will either lower the purchase price or lengthen the time required to sell.

2.

Check all walls for peeling paint and loose wall paper.

3.

Large repairs: In today’s climate of open disclosure and vigilant professional home inspections, the rule is “Treat a buyer as you would yourself.” Repair any problems with major systems or offer an allowance for the buyer to make repairs after closing. Always disclose anything that you know about the property. Having been a consumer yourself, you know that buyers will more readily make a purchase decision with someone whom they can trust.

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91 Ways to Sell Faster and for More Money (continued)

Cleaning 4.

Every area of the home must sparkle and shine! Each hour spent will be well worth it. Would you rather buy a clean car, or a dirty one? Would you hurry to buy a pair of shoes with mud on them?

5.

Clean all windows, inside and out. This helps make the house sparkle.

6.

Clean all wall-to-wall carpeting and area rugs. Clean and polish linoleum, tile and wooden floors.

7.

Clean and polish all woodwork if necessary. Pay particular attention to the kitchen and bath cabinets.

8.

Clean and polish all light fixtures.

Neutralizing 9.

Be cautious about selecting colors when painting or replacing carpeting. Your objective here is to make your home appeal to the largest possible buying segment. Ask yourself, “How many of the available buyers would be able to move into your house with their furniture and not have to replace the carpeting?” Position your home on the market to be as livable to as many people as possible, and allow the buyer to mentally picture the home as theirs.

10.

Forget your personal taste . . . the “market” is always demand driven! The average buyer will have a hard time looking beyond blue carpeting and bold wallpaper. Consider replacing unusual or bold colors with neutral tones. Two coats of white paint may be the best investment you ever made.

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91 Ways to Sell Faster and for More Money (continued)

Space Management This involves creating the illusion of more space.

11.

Arrange furniture to give the rooms as spacious a feeling as possible. Consider removing furniture from rooms that are crowded. If necessary, store large items.

12.

Pack up collectibles . . . both to protect them, and to give the room a more spacious feel. Leave just enough accessories to give the home a personal touch. Dispose of unneeded items.

13.

Remove all clutter and make it a habit to pick up clothing, shoes, and personal possessions each day for possible showings.

14.

Empty closets of off-season clothing and pack for the move. Organize them to demonstrate the most efficient use of space. Leave as few items on the floor or shelves as possible.

15.

Use light to create a sense of space. All drapes should be open. Turn on all of the lights throughout the home before a showing, and be sure to replace any burned out light bulbs.

Atmosphere When placing yourself in the potential buyer’s shoes, you will want to consider the overall atmosphere of your home. Keep in mind your sense of smell as you go through the check list. Create the atmosphere of your home as a shelter, a place that is safe and warm, and in good condition.

16.

A clean smelling house creates a positive image in the buyer’s mind. Be aware of any odors from cooking, cigarettes, pets, etc., that may have adverse effects on potential buyers. Remember that some people are much more sensitive to odors than others. Smokers rarely notice the odor of tobacco that fills their homes, and pet owners may be oblivious to objectionable doggy odor.

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91 Ways to Sell Faster and for More Money (continued) 17.

You can use products like carpet deodorizers, air fresheners, and room deodorizers; but the best strategy is to remove the source of the smell rather than cover it up.

18.

Unfortunately, often the only way to remove the smell of pet urine from flooring is to rip up the carpeting and padding and replace them. If this is preventing the sale of your home, don’t hesitate to make this investment.

19.

If smoking and cooking odors have permeated your home, have your carpets and furniture cleaned, and air out or dry-clean your drapes.

20.

Mildew odors are another no-no. Don’t allow wet towels to accumulate in hampers or dirty laundry to pile up in closets.

21.

Once offensive odors are removed, consider adding delightful ones. Recent studies have shown that humans have strong, positive responses to certain smells. Cinnamon, fresh flowers, breads baking in the oven are all excellent ways to enhance your property for sale.

Staging This part of preparing your home for sale is the most fun and involves the use of color, lighting, and accessories to emphasize the best features of your home.

22.

Hire a professional Stager. National Statistics show that professionally staged homes sell faster and for more money. They have different levels of service to choose from. You may find it’s not as expensive as you think.

23.

If you can’t hire a professional, study magazine ads or furniture showrooms to see how small details can make rooms more attractive and appealing. The effect of a vase of flowers, an open book on the coffee table, a basket of birch logs by the fireplace, etc., can make the difference in a room.

24.

The use of a brightly colored pillow in a wing chair or a throw blanket on a couch can add dimension to a sterile room.

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91 Ways to Sell Faster and for More Money (continued) 25.

Soften potentially offending views, but always let light into your rooms. Replace heavy curtains with sheer white panels. Never apologize for things you cannot change. The buyer will either decide to accept or reject the property regardless of the words you say. Just present the home in the best way possible with complete honesty.

26.

Go through your photo albums and select pictures of your house and yard during all seasons. If hung at eye level in a well-lighted area, the pictures will speak for themselves and give you yet another selling edge.

27.

Take advantage of natural light as much as possible by cleaning windows, opening shades and drapes, etc. Add lamps and lighting where necessary. Be sure that all fixtures are clean and have functioning bulbs.

The Exterior: Check your home for any needed maintenance just as a buyer would. Repaint or touch up as necessary. You can’t make a better investment when you are selling your house! Don’t let the outside turn buyers off before the inside turns them on. 28.

Color has the power to attract. A tub of geraniums, a pot of petunias, or a basket of impatiens on the front steps is a welcoming touch.

29.

If you are selling during the winter months, consider using a wreath of dried flowers on the front door.

30.

If you have a porch or deck, set the stage with pots of flowers and attractively arranged furniture.

31.

Check to see that all doors and windows are in good working order. Give special attention to your home’s exterior doors and front entry. Clean and paint doors if necessary. Remember, first impressions are likely to color the remainder of the house tour.

32.

Wash all windows and replace any broken or cracked window panes.

33.

Screens should be free of any tears or holes.

34.

Inspect all locks to ensure that they are functioning properly.

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91 Ways to Sell Faster and for More Money (continued)

35.

Check for loose or missing shingles.

36.

Invest in a new doormat that says “Welcome.”

The Yard 37.

Make sure the yard is neatly mowed, raked and edged.

38.

Prune and shape shrubbery and trees to compliment your house.

39.

Consider adding seasonal flowers along the walks or in the planting areas. Plop the plants into a well-placed wheelbarrow, an old-fashioned washtub, or what have you. Such standbys as nasturtiums, petunias, impatiens, and verbena are easy to maintain if you only remember to water them regularly. Try a row of sweet smelling alyssum to line a short sidewalk or pop in some perky dwarf marigolds to form a cheerful oasis of color in your yard.

40.

It is important to devote at least one area of your yard to outdoor living. Buyers will still recognize a scene set with picnic table and chairs and respond positively to it. Cover your picnic table with a fringed, red-and-white checked cloth, set out some plastic plates and glasses, bring out the barbecuing equipment, and buyers will almost smell the hot dogs cooking!

The Driveway 41.

The driveway is no place for children’s toys. Not only are such things dangerous, but the clutter is unsightly.

42.

The surface of your driveway should be beyond reproach; after all, it’s one of the first things a buyer will see when he drives up. Sweep and wash the driveway and walks to remove debris, dirt and stains. Repair and patch any cracks, edge the sides and pull up any weeds.

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91 Ways to Sell Faster and for More Money (continued)

Room-by-Room Analysis The Front Entry: Whether a gracious proportioned center-hall or a small space just large enough for a coat rack and a tiny table, this part of your home deserves your particular attention.

43.

Study your entry hall and ask yourself what kind of impression it makes of your home. Dried flowers or a small plant can make a striking focal point on a hall table any time of the year.

44.

Virtually any entry hall will benefit from a well-placed mirror to enlarge the area.

45.

Your entry hall’s flooring will be observed carefully by the prospective buyer. Make sure the surface is spotless and add a small rug to protect the area during showings.

46.

The entry hall closet is the first one inspected. Make it appear roomy. Add a few extra hangers. Hang a bag of cedar chips or a pomander ball to give a pleasant, fresh scent. Remove all off-season clothing.

Living Areas: Think of these areas as if they were furniture showrooms. Your job is to make each room generate a positive response. Add touches that make a room look truly inviting. 47.

Sweep and clean the fireplace. Place a few logs on the grate to create an attractive appearance. You are welcome to have a fire going for showings during the winter months. . . it creates a great atmosphere.

48.

Place something colorful on the mantel, but don’t make it look like a country craft store.

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91 Ways to Sell Faster and for More Money (continued) 49.

Improve the traffic flow by removing excess furniture. Have easy traffic flow patterns. Be sure that all doors open fully and easily.

50.

Draw attention to exposed beams or a cathedral ceiling with special lighting. Be sure to remove any cobwebs and dust.

51.

Remove oversized television sets if they dominate the room. If necessary, substitute with a smaller one until you move.

The Dining Room: Avoid going overboard. To be effective, any stage setting that you create should reflect the character of your entire home appropriately.

52.

Set the scene by setting the table with an attractive arrangement. Add fresh or silk flowers as a centerpiece.

53.

Visually enlarge a small dining area. If your dining table has extra leaves, take one or two out. Consider placing your dining table against the wall. Remove any extra “company” chairs. Consider putting oversized pieces in storage until your house is sold.

The Kitchen: Pay particular attention to your kitchen. This room continues to be the “heart of the home.” A pleasant, working kitchen is near the top of most buyers’ list of priorities and is a room that buyers always scrutinize closely.

54.

Avoid clutter! Clean counters of small appliances and store whenever possible to maximize the appearance of work space.

55.

Check the counter top around your sink, and remove any detergent or cleanser, etc., that may be cluttering the area.

56.

Sinks, cabinets, and counter tops should be clean and fresh.

57.

All appliances should be absolutely clean, bright, sparkling and shiny!

58.

Clean off the top of the refrigerator! If you must use that space for storage, use baskets and bowls to camouflage the items kept there.

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91 Ways to Sell Faster and for More Money (continued) 59.

Set the scene with an open cookbook, a basket filled with fruit, a basket of silk flowers, or a ceramic mixing bowl and wire whisk.

60.

Create the aromas associated with happy homes! Bake some cookies from premixed, refrigerated cookie dough, start baking a loaf of refrigerated bread dough, or pop a frozen apple pie in the oven.

61.

In the heat of summer, place a bowl of lemons or limes on the counter to provide a fresh and pleasant aroma.

62.

Clean and organize all storage space. lf your cabinets, drawers, and closets are crowded and overflowing, buyers assume that your storage space is inadequate. Give away items you don’t use, storing seldom-used items elsewhere, and reorganize the shelves. Neat, organized shelves and drawers look larger and more adequate for prospective buyer’s needs.

63.

Large, cheerful kitchen windows are an advantage and should be highlighted as a special feature of your home. Take a critical look at the window treatment . . . is it clean, sharp and up-to-date? Do the curtains need washing or the blinds need cleaning? Would the window area look better without any window treatment?

64.

If you have a counter top eating area, set two attractive place settings with coordinating napkins and placemats, and place cushions on the stools.

65.

Set the table for an informal meal with bright placemats and a generous bowl of fruit as a centerpiece.

Laundry Room: A separate laundry room is a true asset and is one of the most frequent requests that buyers make during a home search. Don’t hide this treasure behind closed doors. Spruce up the room and open the door proudly for inspection.

66.

Add a fresh coat of paint or put up a cheerful wallpaper.

67.

Organize all closets and storage space.

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91 Ways to Sell Faster and for More Money (continued) 68.

Remove all dirty laundry. Keep current with your laundry or store all dirty laundry in a closed container (maybe even hermetically sealed and welded shut).

69.

Clean and polish the washer and dryer.

70.

Consider adding an attractive, coordinated throw rug.

Stairways: Stairways should provide an attractive transition from one level of your home to another.

71. Make certain the stairs are safe!

Stair lighting should be more than adequate, stairs must be clutter free, stair railings tight and secure, and runners or carpeting tacked securely. Remove any items from the surface of the stairs and store elsewhere. Check the condition of the walls, and paint or re-wallpaper if necessary.

72.

If the stairs are a focal point of the main living areas, carefully choose accents to improve the visual appeal. If you have a wide, gracious staircase, emphasize this feature by hanging a few pictures along the wall. Draw attention to a handsome lighting fixture by polishing the brass and dusting each small light bulb or crystal prism.

Bedrooms: Imagine for a moment that you’re in the “bed-and-breakfast” business. How would you change your home’s bedrooms to appeal to a paying lodger? Naturally, you’d make up the beds with your prettiest sheets and comforters. Maybe you’d add a vase of flowers on the dressing table or a cozy armchair in the corner. Every bedroom in your home should invite prospective buyers to settle right in.

73.

Large master bedrooms are particularly popular among today’s home buyers. Make your bedroom larger. Paint the room a light color, remove one of the bureaus if the room is crowded, and minimize clutter to maximize spaciousness. Aim for a restful, subdued look.

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91 Ways to Sell Faster and for More Money (continued)

74.

A private bathroom off the master bedroom is a real sales plus. Decorate to coordinate with the color scheme of your bedroom, creating the “suite” effect.

75.

Virtually all buyers are looking for a house with plenty of closet space. Try to make what you have appear generous and well planned. Remove and store all out of season clothing. Remove any items from the floor area. This will make a closet seem more spacious. Arrange all shelves to maximize the use of space.

76.

Make sure all articles in the closet are fresh and clean smelling. When prospective buyers open your closet door, they should be greeted with a whiff of fresh smelling air.

77.

Make sure all closet lights have adequate wattage and are operating. Add battery operated lights to those closets that lack them. Lighted closets look bigger, are more attractive, and allow buyers to inspect the interiors easily.

78.

Take the time to explain the importance of marketing to your children. Encourage them to participate in preparing your home for showing, particularly the principle of appealing to the widest possible market segment. Ask your children’s cooperation in making their beds and picking up their rooms prior to showings. Consider promising a special reward if they willingly participate in your house selling goals.

79.

Have them pack up any items that are not currently in use and dispose of unused possessions.

80.

Remove any crowded, unusual, or personal wall hangings such as posters and store them until your home is sold.

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91 Ways to Sell Faster and for More Money (continued) Bathrooms: Wise sellers take special pains with preparing their bathrooms for scrutiny by strangers. The bathroom is a room after all, and a very personal one. Prospects will inspect yours carefully, so be sure it is immaculate. Cleanliness is the key! Make sure that all surfaces are spotless.

81.

Replace worn or dirty shower curtains, clean and repair caulking, and remove non-skid bath decals that are in poor condition.

82.

Clear off countertops and store all personal care products out of sight.

83.

Repair any faucets that leak or do not function properly. Clean off mineral deposits with vinegar or commercial products.

84.

Clean and organize all cabinets and drawers. Don’t forget the medicine cabinet: dispose of old prescriptions, and polish the shelves. The same goes for the storage cabinet under the sink.

85.

Remember to appeal to a wide range of buyers. Play down dominant colors with contrasting neutral colored towels and accessories. If your bathroom is mostly white or neutral, add a few cheerful accents of color: use towels in the popular new shades. Don’t hesitate to buy a few new towels and a rug . . . you’ll be taking them with you to your new home.

86.

Scrub and wax an old floor. Cover the largest area you can with a freshly washed scatter rug.

87.

Decorate and personalize to create a pleasing, individual look. Consider bringing out your best towels and perfumed guest soaps. Add a plant for color and freshness.

88.

A gentle hint of fragrance in the air is fine, but keep it subtle.

Garage 89.

Sweep and wash the floor to remove dirt and stains. Organize tools, garden equipment, bicycles, etc. A clean, organized garage appears larger.

90.

If the area is dark, add more light. If it is small and accommodates only one car, remove your car before buyers visit. An empty garage always looks larger. If you have a two car garage with very little extra room, remove one of your cars so that buyers can make their inspection in comfort.

91.

Get rid of anything that you don’t plan to move to your new home. Place remaining stored material neatly in boxes, and position away from walls.

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6444 Fairway Ave. SE Salem, OR 97406

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Important Points to Remember When Showing Your Home!! ♦ Increase your chances. The more people who see your home, the more likely you are to sell it quickly. Yes, it’s inconvenient to show your home at dinner time, but if the people buy your home, isn’t it worth it?

♦ There shouldn’t be any major housecleaning at this point. The kinds of tasks you ought to be concerned with now are simple ones; making the beds, stuffing last night’s dirty pans in the dishwasher, picking up loose newspapers, etc. Even young children can participate by “cleaning” their rooms.

♦ If the season is appropriate, open the windows in each room and let in some fresh air. Stale air isn’t appealing, particularly in a home with smokers or pets.

♦ Keep your thermostat at a comfortable setting. ♦ Turn on all the lights for every showing before prospective buyers arrive. This also gives you an opportunity to select the lighting effects you want for each room. No area of your home should be dark.

♦ Turn off the television and turn on light, background music. ♦ Arrange for pets and children to be at a neighbors. Perhaps it’s unfair to lump children with pets, but young children can distract buyers from their purpose. Keep pets away from buyers.

♦ Don’t try to “sell” the house with words! By this time you have prepared the house for sale; let it sell itself. Buyers buy on emotion—theirs, not yours! Keep the emotions under control.

♦ “Depersonalize” the house as much as possible. Take down any extra family pictures that are hanging on the walls or displayed on the shelves. They will often distract the buyers attention from what is most important ... the house!

♦ Most importantly, please leave the home during all showings. It is uncomfortable and difficult for buyers to view the home when owners are present. Oftentimes, they will rush through the home and not give it the proper attention your home deserves. It is also hard for the buyers to “picture themselves” living in the home when the sellers are present.

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Notice to Sellers Keep in mind that BUYERS want to obtain the LOWEST PRICE and BEST TERMS for themselves. We recommend that you refrain from discussing the following types of information with any BUYERS or real estate agents, regardless of whom they represent, other than your own listing agent.

♦Reason for selling. ♦Motivation/urgency to sell. ♦Willingness to consider an offer less than the listing price. ♦Terms under which you would sell. ♦Relocation, timing, benefits of policies ... if applicable.

♦Items of personal property which you “might” be willing to include in a sale.

♦Any confidential information that would serve to disclose your negotiating strategy.

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6444 Fairway Ave. SE Salem, OR 97406

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Moving Checklist

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6444 Fairway Ave. SE Salem, OR 97406

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Moving Checklist ... For Long Distance Moves! PLAN AHEAD BY:

Deciding what to move and what not to move. Possibly plan a garage sale! Getting estimates from several moving companies or truck rental companies, depending on how you plan to make the move.

Planning your travel itinerary and making transportation and lodging reservations in advance. (Leave a copy with a friend or relative.)

Transferring your bank accounts. They will be happy to open your accounts by mail. Contacting your local credit bureau to find out if they are on the same system your new home town subscribes to; if not, they will be able to transfer your credit file.

Requesting records from doctors and dentists, including eye glass prescriptions, dental x-rays and vaccinations.

Obtaining your childrens’ school records to make for an easier transfer. Drawing up a floor plan of where your furniture should be placed.

This will help avoid confusion for you

and your movers.

Paying existing bills and closing out local charge accounts. Recording expenses incurred during your house-hunting trips. You will also want to save your moving expense receipts (if the move is employment-related) for tax deductions.

Dewey’s Moving Checklist ... For Local Moves! PLAN AHEAD BY:

Deciding what to move and what not to move. Possibly plan a garage sale (extra cash & less to move). Getting estimates from several moving companies, or truck rental companies if you’re moving yourself. Be sure to obtain a hand truck (appliance dolly) if you’re moving yourself.

Arranging transfer of children’s school records if applicable. Drawing up a floor plan of where your furniture should be placed to avoid confusion for you and/or your movers.

Arranging any special movers, such as for an expensive piano, or such as is necessary to break down and move a pool table or above-ground swimming pool.

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6444 Fairway Ave. SE Salem, OR 97406

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Don’t Forget To: Cancel or transfer deliveries, newspaper, garbage collection, etc. Coordinate the transfer of gas, electric, (water & sewer when not handled by title company.) with the next occupant of your old home, as well as with the previous owner of your new home, so as to avoid lapses in sevice and extra re-start expenses.

Check

on personal items that might be at the photo shop, bank safe deposit box, a neighbor’s house, on lay-away or in the repair shop (i.e., shoe repair, jewelry store, small appliance repair or dressmaker).

Make arrangements for transporting your plants and pets. Save the phone book from your former city residence for tying up loose ends or for future correspondence.

Transfer insurance policies or arrange for new policies. Gather all valuables, jewelry, important papers (birth certificates, deeds, documents) to take with you personally.

Have the car serviced for the trip. Pack an arrival kit of necessities just in case you arrive before the mover. Get refunds from your present utility and phone companies and arrange for service at your new home.

Purchase moving insurance. Your mover’s liability for lost or damaged goods will not equal their replacement cost.

Appraise valuable items, such as antiques, art pieces, etc. Check with your attorney about your will if crossing state lines. Ask for professional referrals if available (i.e. doctor, accountant, etc.) Change

these addresses: Post Office, charge accounts, subscriptions (at least four weeks in advance), relatives and friends, national and alumni organizations, church, mail order clubs (books, tapes, catalogues), firms with which you have time payments, past employer in order to receive your W-2 form.

Save your old address labels to speed up your change of address forms.

FindSalemHomes.com The Salem Real Estate Group, Inc

6444 Fairway Ave. SE Salem, OR 97406

503-949-3623


FindSalemHomes.com The Salem Real Estate Group, Inc

6444 Fairway Ave. SE Salem, OR 97406

503-949-3623


Glossary of Terms

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6444 Fairway Ave. SE Salem, OR 97406

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Glossary of Terms Abstract of Title: A summary of the public records relating to the ownership of a particular piece of land. It represents a short legal history of an individual piece of property, and traces the ownership of that property from the time of the first recorded transfer to present. Acceptance: Consent to an offer to enter into contract. Adjustable-rate mortgage (ARM): A mortgage that allows the interest rate to be changed periodically. Agency: A legal relationship in which an owner-principal engages a broker-agent in the sale of property or a buyer-principal engages a broker-agent in the purchase of property. American Society of Home Inspectors (ASHI): A professional trade association that provides training and education in home inspections. Members must meet qualification requirements to join. Amortization: The gradual repayment of a mortgage by periodic installments. Annual percentage rate (APR): The total finance charge (interest, loan fees, points) expressed as a percentage of the mortgage amount. Appraisal: An evaluation of a piece of property to determine its value. Appreciation: Increase in value due to any cause. Asbestos: A mineral fiber used in some building materials such as flooring, siding, insulation and roofing. It is presently banned for most uses in real property. Assessed value: The valuation placed on property by a public tax assessor as the basis of property taxes. Assumption of mortgage: An agreement whereby the buyer assumes responsibility for a mortgage owed by the seller. Balloon mortgage: A mortgage where the amount financed is not fully amortized over the period of the loan. When the loan becomes due, a large sum or “balloon” payment is required to satisfy the mortgage. Bridge loan: A short-term mortgage made until a longer-term loan can be made; it’s sometimes used when a person needs money to build or purchase a home before the present one has been sold. Broker: A person licensed by a state real estate commission to act independently in conducting a real estate brokerage business. Although requirements vary from state to state, an individual must usually have at least one year of experience in the industry and pass an examination to earn a broker’s license. Building codes: State and local laws that regulate the construction of new property and the rehabilitation of existing property.

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Cap: The maximum amount an interest rate or monthly payment can change, either at adjustment time or over the life of the mortgage. Closing: The final step in the sale and transfer of ownership of a property. The title is transferred from the seller to the buyer; the buyer signs the mortgage and pays costs of settlement; any money due the seller and purchaser are paid. Closing costs: Fees and expenses, not including the price of the home, payable by the seller and the buyer at the closing (e.g., brokerage commissions, title insurance premiums, and inspection, appraisal, recording, and attorney’s fees). Closing Statement: A financial statement rendered to the buyer and seller at the time of transfer of ownership, giving an account of all funds received or expended. Cloud on the title: Any condition which affects the clear title to real property. Commercial bank: A financial institution authorized to provide a variety of financial services, including consumer and business loans (generally short-term), checking services, credit cards, and savings accounts. Comparables: Properties similar in size and character to the one being bought or sold. Condominium: Ownership of a unit only, rather than of the entire building with the land. Consideration: Anything of value to induce another to enter into a contract (i.e. money, services, a promise). Contingency: A condition that must be satisfied before a contract is binding. Contract: An agreement to do or not to do a certain thing. Conventional mortgage: A fixed rate, fixed-term mortgage not insured by the federal government. Deed: A legal document conveying title to a property. Deed (quit claim): A deed that transfers only that title or right to a property that the holder of that title has at the time of the transfer. It does not warrant or guarantee a clear title. Department of Housing and Urban Development (HUD): A U.S. Government agency established to implement certain federal housing and community development programs. Disclosure laws: State and federal regulations which require sellers to disclose such conditions as whether a house is located in a flood plain or whether there are known defects in or affecting the property. Earnest money: A portion of a down payment given to the seller by a potential buyer indicating the buyer’s intent to complete the purchase of the property. Easement: A right to use the land of another.

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6444 Fairway Ave. SE Salem, OR 97406

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Encroachment: A condition that limits the interest in a title to property such as a mortgage, deed restrictions, easements, unpaid taxes, etc. Equity: The value of real estate over and above the liens against it. It is obtained by subtracting the total liens from the value. Equity mortgage: A mortgage based on the borrowers’ equity in their home rather than on their credit worthiness. Escrow: The placement of money or documents with a third party for safekeeping pending the fulfillment or performance of a specified act or condition. Federal Housing Administration (FHA): An agency within the Department of Housing and Urban Development (HUD) that administers loan guarantee programs and loan insurance programs to make more housing available. Fannie Mae: Nickname for Federal National Mortgage Corp. (FNMA), a tax paying corporation created by Congress to support the secondary mortgages insured by FHA or guaranteed by VA, as well as conventional home mortgages. FHA Insured mortgage: A mortgage under which the Federal Housing Administration insures loans made, according to its regulation, by approved lenders. Fixed rate mortgage: A loan that fixes the interst rate at a prescribed rate for the duration of the loan. Foreclosure: Procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default. Freddie Mac: Nickname for Federal Home Loan Mortgage Corp. (FHLMC), a federally controlled and operated corporation to support the secondary mortgage market. It purchases and sells residential conventional home mortgages. Graduated-payment mortgage: A mortgage that starts with low monthly payments and increases at a predetermined rate. Growing-equity mortgage: A mortgage loan in which the monthly payments increase by a specific amount each year, with the “Overpayments” applied to the principal. Installment debts: Long-term debts that usually extend for more than one month. Investor: The holder of a mortgage or the permanent lender for whom the mortgage maker services the loan. Any person or institution that invests in mortgages. Joint & Survivorship Deed: (Also known as “Warranty deed creating tenants in common with right of survivorship”) Upon death of one of the owners, title to the interest transfers “by contract” to survivors. Lease purchase agreement: Buyer makes a deposit for the future purchase of a property with the right to lease the property in the interim. Lien: A legal claim against a property that must be paid when the property is sold.

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6444 Fairway Ave. SE Salem, OR 97406

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Loan-to-value ratio: The relationship between the amount of a home mortgage and the total value of the property. Lenders may limit their maximum mortgage to 80-95 percent of value. Lock-in-rate: A commitment made by lenders on a mortgage loan to “lock in” a civilian rate pending mortgage approval. Lock-in periods vary. Market value: The highest price a buyer will pay for a property and the lowest price the seller will accept. Mortgage: One type of document used to make property the security for the payment of a loan. Mortgage broker: An individual or company that obtains mortgages for others by finding lending institutions, insurance companies, or private sources to lend the money; may also make collections and handle disbursements. Mortgagee: The lender of money or the receiver of the mortgage. Mortgagor: The borrower of money of the giver of the mortgage document. Negative amortization: An increase in the outstanding balance of a mortgage resulting from the failure of periodic debt service payments to cover required interest charges on the loan. Note: A written promise to pay a certain amount of money. Origination fee: A fee or charge for work involved in the evaluation, preparation and submission of a proposed mortgage loan. Pre-payment penalty: A fee paid to the mortgagee for paying the mortgage before it becomes due. Also known as pre-payment fee or reinvestment fee. Private mortgage insurance (PMI): Insurance issued to a lender by a private company to protect the lender against loss on a defaulted mortgage loan. Its use is usually limited to loans with high loan-tovalue ratios. The borrower pays the premiums. Promissory note: A written contract containing a promise to pay a definite amount of money at a definite future time. Radon: A colorless, odorless gas formed by the breakdown of uranium in subsoils. It can enter a house through cracks in the foundation or in water and is considered to be a health hazard. REALTOR® and REALTOR®-Associate: Registered collective membership marks that identify real estate professionals who are members of the National Association of REALTORS® and who subscribe to its strict Code of Ethics. Rent with option: A contract which gives one the right to lease property at a certain sum with the option to purchase at a future date. Savings and loan association (S&Ls): Depository institutions that specialize in originating, servicing, and holding mortgage loans, primarily on owner-occupied residential property.

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6444 Fairway Ave. SE Salem, OR 97406

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Savings bank: A financial institution organized to hold individual depositors’ funds in interest-bearing accounts and to make long-term investments, such as home mortgage loans. Second mortgage/Second deed of trust/Junior mortgage or Junior lien: An additional loan imposed on a property with a first mortgage. Generally a higher interest rate and shorter term than a “first” mortgage. Severalty ownership: Ownership by one person only. Sole ownership. Shared equity mortgage: A home loan in which an investor is granted a share of the equity, thereby allowing the investor to participate in the proceeds from resale. Survey: The process by which a parcel of land is measured and its area ascertained. Tenancy in common: Ownership by two or more persons who hold an undivided interest without right of survivorship. (In the event of the death of one owner, his/her share will pass to his/her heirs.) Title: A document that’s evidence of ownership. Title defect: An outstanding claim or encumbrance on property that affects marketability. Title insurance: Protection for lenders and homeowners against financial loss resulting from legal defects in the title. Veterans Administration (VA): A government agency that provides services for eligible veterans of the armed forces. Among other programs, it guarantees mortgage loans made by private lenders to veterans. Variance: A special suspension of zoning laws to allow the use of property in a manner not in accord with existing laws. Zoning restrictions: Local municipal ordinances that classify property according to specific uses such a single family, residential, commercial, industrial, multi-family, etc.

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6444 Fairway Ave. SE Salem, OR 97406

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Salem Real Estate Group - Home Seller's Hand Book