Seller's Packet - What We Do for You

FOR PROSPECTIVE BUYERS AND SELLERS

Many people who sell their homes are unsure of the role of a realtor in a transaction, and unsure of what a realtor does to earn a commission. We would like to take you step by step through a typical transaction, from initial contact through closing, to enable you to get a better understanding of what goes on during the selling process, and to ensure that you make the best choice when choosing an agent to represent your interests.

T

he Missouri Real Estate Commission requires a licensee to make disclosure of their agency relationship. Therefore, when you enter into discussions regarding a real estate transaction, you should understand what type of legal agency representation can exist between you and the real estate licensee.

In a real state transaction if the licensee is:

The SELLER’S AGENT. The licensee acting as an agent for the seller of real estate or as a subagent for the listing broker shall disclose orally and in writing to the prospective buyer the licensee’s agency relationships.

Oral disclosure shall be made at the time the licensee obtains personal and financial information from the prospective buyer or provides other specific assistance. Written disclosure shall state: (1) the licensee is acting on behalf of the seller of the real estate; (2) the sources(s) of any commission or other payment to be made to the licensee; and (3) information given to the licensee by the buyer may be disclosed to the seller.

The BUYER’S AGENT. When a licensee represents a buyer, the licensee must obtain written authorization from the buyer to act on the buyer’s behalf to advertise for or show property to the buyer. Every written authorization shall contain a description of the type of property sought by the buyer, the commission or fee to be paid, a definite expiration date, the signatures of the buyer and the licensee and the date of authorization.

A licensee acting as an agent for the buyer of real estate shall disclose orally and in writing to the prospective seller or seller’s agent the licensee’s agency relationships. Oral disclosure shall be made to the prospective seller or seller’;s agent not later than the first showing of real estate to the buyer and written disclosure no later than the presentation of an offer to purchase. Oral and written disclosure shall state: (1) the agent is acting on behalf of the buyer of real estate and/ (2) the source(s) of any commission or other payment to be made to the licensee. The licensee shall not accept a commission or any other compensation from the seller without written disclosure to all parties to the transaction.

The DUAL AGENCY. The licensee who acts as an agent for more than one party in a transaction shall immediately disclose the licensee’s relationships orally and in writing to all parties to the transaction. Oral and written disclosure shall state: (1) the licensee is acting as agent for both the buyer and seller of the real estate; (2) the source(s) of any commission or other payment to be made to the licensee. The disclosure shall be signed and dated by all parties to the transaction and the licensee.

Regardless of who a licensee represents, the licensee is required by state law and regulation to promptly tender all written offers and counteroffers. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. If legal or tax advice is desired you should consult with a competent professional.

RE/MAX Boone Realty. Our company cooperates with Seller’s agents, Buyer’s agents, Subagents, and agents acting in a Dual Agency capacity. We believe cooperation allows maximum exposure of property for sellers and to buyers. Whichever agency relationship you accept, the RE/MAX Boone Realty realtor will present and secure the necessary written consent on all appropriate agency agreements, disclosure forms, and answer all questions honestly.

Since 1896 our reputation for professionalism, knowledge and enthusiasm assures our buyers and sellers the finest and most complete service available in the Mid-Missouri Area.

I N I T I A L C O N TA C T As professionals, we like to become completely familiar with your property - both the positive points and the drawbacks. To accomplish this, we take a very thorough inventory of the property, from square footage and carpet color, to the house’s age and unique features. We will ask you a variety of questions and take pages of notes. We try to cover all the bases to make sure that all of your concerns are taken into account, in order to learn as much about your property as possible.

E S TA B L I S H I N G FA I R M A R K E T VA L U E Armed with our observations, your input, prior research, and experience, we then seek to establish a fair market value for your home. We calculate our figures by considering the home’s location, the size of the lot, the size of the dwelling, and the condition of the property. We also scrutinize the price and quantity of similar homes both in the neighborhood and in the total market area, the desirability of your neighborhood, and look at our research to see what buyers of comparable properties have been willing to pay.

We then calculate the replacement costs at present building prices and adjust for depreciation, taking into account the age of the structure and other factors of obsolescence. By combining all these factors in consultation with the owner of the property, we establish a realistic selling price. It is important to note that our fee is usually a percentage of the selling price and is earned only when the property is sold. So it is in our best interest, as well as yours, to get the best possible price for your home. However, overpricing a property is self-defeating - it complicates the selling process in a number of ways.

T H E A RT O F A C C U R AT E P R I C I N G Overpricing is one of the worst things that can occur when you try to sell your home. Other agents will be unwilling to show the home, knowing that it is overpriced and unlikely to sell, which means no commission. Qualified buyers will not be shown the home because often real estate agents know the prices of home in communities, and if your home is a spike in the home prices, it won’t be noticed due to the way agents search for homes on the computer.

Competitive pricing, however, increases agent response by giving them something realistic to sink their teeth into. When agents show the home, they won’t feel that they are showing the home so that others can compare the prices and quality, they feel as if people are looking to buy. The home will also sell faster, which nets you more money.

RECOMMENDING IMPROVEMENTS Once a fair market value has been agreed on, we will recommend improvements that we, as professionals, feel will aid in marketability and possible increase the value of your home. This is a very important part of the process, so please do not be offended if we suggest that the home should be professionally cleaned, painted, or re-floored.

T H E S U S A N H O R A K G RO U P • R E / M A X • CO LU M B I A M O

MARKETING PLAN Yard Sign & Brochure Box Placing a sign in the yard is the best means of advertising available. Prospective buyers driving through your neighborhood are already interested in the area and can see your property firsthand, while viewing price, pictures, floor plans and information in the brochures.

Office Tour It is important for all of the agents in our firm to be familiar with each of our listings. The listing agent will guide other agents through the property so the other agents will be prepared to answer questions posed by potential buyers or agents from cooperating MLS firms.

Multiple Listing Tour A member of the Susan Horak Realty Team will also hold the property open for a period of time on Wednesday morning to encourage other MLS agents to market and show the property. Approximately 350 sub-agents have access to the information concerning the subject property through the MLS computer and listing catalog.

Print Media We advertise our properties on a rotating basis in the RE/MAX real estate section of the Sunday Columbia Missourian newspaper, Columbia’s undisputed print media source for real estate information, as well as other regional newspapers and publications. Susan has the 2 inside cover pages of the Real Estate Book (Columbia & Jefferson City Editions), the essential full-color, monthly magazine for real estate.

Television Advertising Because television is a natural medium for the visually-oriented buyer, we advertise our properties for several hours during the week and weekends on AT&T Media Services-Cable Channel 20. The ads, which combine quality photographs with voice-overs stressing the property’s selling points, are powerful selling tools.

Internet Marketing The SusanHorak.Com website advertises listings in coordination with guidelines from the multiple listing service, using the search engine and information tools of Realtor.Com, the official internet site of the National Association of Realtors.

Open Houses If the seller and agent mutually agree, the property may be held open for the public on Sunday afternoons. Most of the traffic will consist of “lookers”, but we never rule out the possibility of a sale. Holding a home open can provide good exposure indirectly, as visitors sometimes pass the word to friends or co-workers.

T H E S U S A N H O R A K G RO U P • R E / M A X • CO LU M B I A M O As Prescribed by the Missouri Real Estate Commission as of Januar y 1, 1999

This disclosure is to enable you, a prospective buyer, seller, tenant or landlord of real estate, to make an informed choice before working with a real estate licensee. Missouri law allows licensees to work for the interest of one or both parties to the transaction. The law also allows the licensee to work in a neutral position. How the licensee works depends on the type of brokerage service agreements involved. Since the sale or lease of real estate can involve several licensees, it is important that you understand what options are available to you regarding representation and to understand the relationships among the parties to any transaction in which you are involved. Missouri Law requires that if you want representation, you must enter into a written agreement. This may or may not require you to pay a commission. You do not need to enter into a written agreement with a transaction broker unless you intend to compensate this licensee. These agreements vary and you may also want to consider an exclusive or non exclusive type of relationship. If you choose not to be represented by an agent, the licensee working with you may be working for the other party to the transaction.

O T H E R A G E N C Y R E L AT I O N S H I P S Missouri law does not prohibit written agency agreementes which provide for duties exceeding that of a limited agent described in this pamphlet.

Seller’s Limited Agent Landlord’s Limited Agent Buyer’s Limited Agent Tenant’s Limited Agent Sub-Agent

We always attempt to qualify our buyers before we take them to see any properties. Qualifying consists of getting to know them - determining their needs, likes, dislikes, and financial capabilities. A good salesperson does not take buyers through homes without a clear idea of what they are looking for and what they can afford in a home.

Disclosed Dual Agent Designated Agent Transaction Broker

We always try to get feedback from MLS agents and our own agents to see what people like and dislike about the property. Re-evaluation of price, property condition, and marketing strategies often follow.

Networking An average salesperson speaks to at least 10 other agents each day. In the course of conversation, a good agent markets his or her listings subtly yet positively.

D E S I G N AT E D A G E N T

Acts as your specific agent, whether you are a buyer or tenant, or seller or landlord.

When the broker makes this appointment, the other real estate licensees in the company do not represent you.

There are two exceptions with both resulting in dual agency: 1. The agent representing you as a buyer or tenant is also the agent who listed the property you may want to buy or lease.

2. The supervising broker of two designated agents becomes involved in the transaction TRANSACTION BROKER

Does not represent either party, therefore does not advocate in the interest of either party.

A transaction broker is responsible for performing the following: • • • • • • • •

Other Agency Relationship

SUB-AGENT (AGENT OF THE AGENT)

Owes the same obligations and responsibilities as the Seller’s or Landlord’s Limited Agent, or Buyer’s or Tenant’s Limited Agent. Seller or landlords, or buyers or tenants may authorize their agent to offer sub-agency to other firms.

Protect the confidence of both parties.

Exercise reasonable skill and care.

Present all offers in a timely manner.

Keep all parties fully informed.

Account for all the money and property received.

Assist the parties in complying with the terms and conditions of the contract.

Disclose to each party of the transaction any adverse material facts know by the licensee Suggest that the parties obtain expert advice.

A transaction broker shall not disclose: • • • •

Buyer/Tenant will pay more than the purchase or lease price.

Seller/Landlord will accept less than the asking or lease price.

Motivating factors of the parties.

Seller/Buyer will accept financing terms other than those offered.

A transaction broker has no duty to: • Conduct an independent inspection of, or discover any defect in, the property for the benefit of either party.

• Conduct an independent investigation for the buyer’s financial condition.

SELLER’S OR LANDLORD’S LIMITED AGENT

This brokerage authorizes its licensees to act as a:

Potential Buyers are Qualified

Feedback

• C H O I C E S AVA I L A B L E T O YOU IN MISSOURI•

MISSOURI BROKER DISCLOSURE FORM

Duty to perform the terms of the written agreement made with the seller or landlord, to exercise reasonable skill and care for the seller or landlord and to promote the interests of the seller or landlord with the utmost good faith, loyalty and fidelity in the sale, lease, or management of property.

BUYER’S TENANT’S LIMITED AGENT

Duty to perform the terms of the written agreement made with the buyer or tenant, to exercise reasonable skill and care for the buyer or tenant and to promote the interests of the buyer or tenant with the utmost good faith, loyalty and fidelity in the purchase or lease of property.

DISCLOSED DUAL AGENT

With the written consent of all parties, represents both the seller and the buyer or the landlord and the tenant.

A Disclosed Dual Agent may disclose any information to either party that the licensee gains that is material to the transaction.

A dual agent may not disclose information that is considered confidential, such as: • • • • •

Buyer/Tenant will pay more than the purchase price or lease rate.

Seller/Landlord will accept less than the asking price or lease rate.

Either party will agree to financing terms other than those offered.

Motivating factors for any person buying, selling or leasing the property.

Terms of any prior offers or counter offers made by any party.

MOVING CHECKLIST Two Weeks Before Moving

Send a change of address card to the following people and institutions: Post Office Charge card accounts Subscriptions Friends Relatives

N E G O T I AT I N G T H E S A L E

It’s over.

The contracts have been signed, money exchanged, and your life is about to move One Week Before Moving on. Whether you are across the Cancel deliveries of newspapers and other local publications. Begin transferring moving your bank accounts to your new town. Ask your bankers about branches or affiliates country or across town, in the region you are moving to. Transfer all of your memberships in organizations it is important that you such as A.A.A., your church, civic groups, etc., to your new location. take steps to ensure that you can smoothly SEND CHANGE OF ADDRESS CARDS TO: NOTIFY INSURANCE COMPANIES resume living in your Post Office Health new location. To help, Charge Accounts Life we’ve included a helpful Subscriptions Auto list that includes some Friends Home Owners Relatives of the most important School Records for Children things you need to do SET-UP NEW UTILITIES, DISCONNECT OLD, Obtain Legal Records when moving.

Check to see if your Will must GET REFUND FOR ANY DEPOSITS MADE, ADVISE

Make arrangements with a moving company. Call your electric, water, gas, telephone and fuel companies and inform them that you are moving. Begin recovering your deposits and leave an address where your final bills are to be sent. Also start trying to retrieve items you have lent to friends, and return items you have borrowed.

WHERE FINAL BILLS ARE TO BE SENT Water Electric Gas Telephone Fuel Trash Removal

Cancel deliveries Milk Newspapers Magazines Other

Transfer bank accounts: Checking Savings Safe Deposit Box Have Bank recommend affiliate in new city

be rewritten when moving across state lines.

NOTIFY INSURANCE COMPANIES General Practitioner Dentist Optometrist Other Doctors Drug Prescriptions refilled Veterans: Notify your draft board of VA office Leave Keys and any necessary legal papers with your Realtor

TRANSFER MEMBERSHIPS Church Clubs Civic Organizations

Written Purchase Agreements When the offer is written and signed and an earnest money deposit (escrow) is received, we schedule an appointment with the sellers to present the offer. Please keep in mind that we are legally required to deliver all written offers - no matter how ridiculous or offensive. If another firm is involved in the sale, a representative of that firm will probably sit in on the presentation in order to convey your position to the buyers. We review the offer carefully, explaining offered price, financing terms, personal property to be included, contingencies, closing date, approximate net proceeds, and other conditions.

Counter Offers If the initial offer is not acceptable, we might have to return to the buyer with a counter-offer - what you want in terms of price, terms, etc. Keep in mind that any changes made to the contract voids that contract and the buyer is no longer legally bound until a counter offer is accepted.

Firm Contract When the buyer and seller agree on all terms of the purchase offer, we refer to the property as “under contract”. When financing and all other contingencies have been confirmed or removed, we have a “firm contract”. It is important to remember that this is a binding legal document and legal counsel should be consulted if you are unsure of any aspect of that contract. There are good contracts and doubtful contracts. A doubtful contract may have contingencies which must be satisfied before the contract is legally binding, or the buyer’s credit might be shaky. To protect you and our own interest, we may continue to market the property and take back-up contracts from other buyers.

CLOSING THE TRANSACTION Follow-up We process the sales contract, making sure that all terms have been met, earnest money is deposited, all contingencies are taken care of, and the closing agent is notified. We follow up on financing, inspections, possible repairs, and arrange or coordinate the actual closing process including setting the time and date. one to two days before closing, the buyer will complete a final walk-through inspection of the property and all systems and appliances to ensure that everything is operating normally.

Eliminating Last Minute Problems Sometimes the title search will reveal that clear title cannot be conveyed, or possibly a lien against the property will surface, or termites will be discovered, or the walk-through will reveal mechanical problems. Please, don’t panic. Some problems can be eliminated before or at the closing by placing money in escrow, while others are more complicated and the closing will need to be delayed.

Remember to stay calm and allow us to resolve the problem. Solving problems is our job, so please, let us deal with these little emergencies.

WRITTEN PURCHASE AGREEMENTS

W

hen the offer is written and signed an earnest money deposit (escrow) is received, we schedule an appointment with the sellers to present the offer. Please keep in mind that we are legally required to deliver all written offers - no matter how ridiculous or offensive. If another firm is involved in the sale, a representative of that firm will probably sit in on the presentation in order to convey your position to the buyers. We review the offer carefully, explaining offered price, financing terms, personal property to be included, contingencies, closing date, approximate net proceeds, and other conditions

COUNTER OFFERS

If the initial offer is not acceptable, we might have to return to the buyer with a counter-offer - what you want in terms of price, terms, etc. Keep in mind that any changes made to the contract voids that contract and the buyer is no longer legally bound until a counter offer is accepted.

FIRM CONTRACT

When the buyer and seller agree on all terms of the purchase offer, we refer to the property as “under contract”. When financing and all other contingencies have been confirmed or removed, we have a “firm contract”. It is important to remember that this is a binding legal document and legal counsel should be consulted if you are unsure of any aspect of that contract. There are good contacts and doubtful contracts. A doubtful contract may have contingencies, which must be satisfied before the contract is legally binding, or the buyer’s credit might be shaky. To protest you and our own interest, we may continue to market the property and take back-up contracts from other buyers.

CLOSING

THE TRANSACTION

FIRM CONTRACT

We process the sales contract, making sure that all terms have not been met, earnest money is deposited, all contingencies are taken care of, and the closing agent is notified. We follow up on financing, inspections, possible repairs, and arrange or coordinate the actual closing process including setting the time and date. One to two days before closing, the buyer will complete a final walk-through inspection of the property and all systems and appliances to ensure that everything is operating normally.

E L I M I N AT I N G L A S T M I N U T E P R O B L E M S

Sometimes the title search will reveal that clear title cannot be conveyed, or possibly a lien against the property will surface, or termites will be discovered, or the walk-through will reveal mechanical problems. Please , don’t panic. Some problems can be eliminated before or at the closing by placing money in escrow, while others are more complicated and the closing will need to be delayed. Remember to stay calm and allow us to resolve the problem. Solving problems is our job, so please, let us deal with these little emergencies.

Utility Information City of Columbia & Boone County

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Boone County

Boone Electric Cooperative Phone: (800) 225-8143 (573) 441-4181 Office Hours: Lobby, 8:00 - 5:00, Mon - Fri Drive Thru, 7:30 - 5:30, Mon - Fri Office Located at: 1413 Rangeline Street Mailing Address: P.O. Box 797 Columbia, MO 65205 Submit Online: www.booneelectric.com Rural Water Service Consolidated Water Dist. #1 & #2 Phone: (573) 449-0324 Office Located at: 1500 North 7th Street Rural Sewer Service Boone County Regional Sewer District Phone: (573) 443-2774 Located at: 1314 North 7th Street Telephone Service CenturyTel Phone: 1-800-201-4099

City of Columbia

Utilities Customer Service Water, Electric, Sewer & Refuse Collection Phone: (800) 552-7583 (573) 874-7380 Office Hours: 8:00 - 5:00, Mon - Fri Office Located at: 310 E. Walnut Mailing Address: P.O. Box 1676 Columbia, MO 65205 Submit Online: www.GoColumbiaMO.com Natural Gas Ameren U.E. No Longer Maintains a Local Columbia Office. Call (800) 552-7583 for Customer Service or Online at Ameren.com

Water Districts Serving other parts of Boone County

Local Cable/Internet Service Providers Mediacom Cable Service Phone: (573) 443-1535 Located at: 901 N. College Charter Communications Capital Cable Phone: 1-888-871-4485 Located at: 1510 Boone Industrial Dr.

Web Sites to remember: City of Columbia Ameren U.E.: Boone Electric Coop.: Media Com: Charter Communications: The Susan Horak Group:

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www.GoColumbiaMO.com www. Ameren.com www.booneelectric.com columbia.mchsionline.net www.chartercom.com www.SusanHorak.com

Water Dist #1 1339 E. Prathersville Rd. Columbia, MO 65202 442-8036 Water Dist #4 14530 N. Route U Hallsville, MO 65255 696-3511

Centralia District #10

Hallsville District #4

Prathersville District #1

District #7

Water Dist #7 1951 W. Dripping Springs Rd. Columbia, MO 65202 442-8614 Water Dist. #9 8230 N. Rt. Z Columbia, MO 65201 474-9521

Water Dist. #10 22601 March Rd. Centralia, MO 65240 682-5314

Route Z District #9

Ashland