Download - Buyer's Guide
BUYER’S GUIDE Buying Your Home With the Expert Help of
Joseline Mucha
Introduction
About Joseline
Community
Windermere
Financing
Good Faith Estimate
The Search Begins
Making an Offer
Crafting a Winning Offer
Contingencies
Numbers to Know
Inspections
Escrow
Title
Pending to Close
Closing & Possession
Closing Costs Defined
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
CONTENTS
INTRODUCTION
Know When It’s The Right Time To Buy One of the most stressful issues home buyers face is the question of when the time is right to buy. My
rule is that you should decide based on your life and what makes sense to you, your family, your
plans and your finances. Then, use the information I give you about what’s going on in the market
to decide how to buy: what kind of home to buy, what sort of loan to use, how much to offer, and
other strategies for executing your home buying plans.
Most avid observers of real estate agree that this is a great time to buy a home. But what factors
need to be considered when deciding whether it is the right time in your life to buy?
Shatter Your Fears With Education & Preparation Humans fear what they don’t understand, and the process of buying a home is complicated
enough that even those who have done it a couple of times often don’t completely understand
every detail. Before we begin, you can make a list of your fears, concerns and issues about buying
that make you nervous. Then, we can discuss those items, point-by-point; you’ll find that many of
them have solutions of which you were simply unaware.
Throughout your home buying experience, when something is not clear, ask questions until it is.
(even if you have to ask the same question a million times!) I want to make sure you are comforta-
ble every step of the way!
Work with the best agent . . . Joseline
Buying a home is not an ordinary business transaction. In an ideal situation, I will learn all sorts of
private financial information, emotional and relationship details about you and your family, and I
want you to be comfortable. By learning these things, I have a better understanding of who you
are and can therefore translate your vision into a home. I promise confidentiality and trust and will
do everything in my power to find you the right home.
If needed, I will hold your hand and patiently explain real estate basics, local standard practices
and how market news applies to you (or not). I have a team of trusted mortgage, inspection and
escrow providers to refer you.
Joseline Mucha 1
ABOUT JOSELINE
Open, Honest & Drive to Succeed
Among being passionate about the product and the service that I provide, I enjoy working with a
diverse group of good people, all presenting their own unique challenges. I continue to work
through these challenges, achieving positive results and fortuitous outcomes. I work from a founda-
tion based on service, loyalty, knowledge, and hard work. Through positive energy and a strong
knowledge of the market I will be the right realtor to represent many clients to come!
Knowledge & Negotiating Skills 1) Price. Knowing the price when listing your home or assisting in a purchase.
2) Negotiating. Knowing how to negotiate and being aware of market conditions and comparables.
3) Inspection. This can be the second round of negotiations. Knowing what is wrong and how much
repairs can cost are a crucial part of the inspection process.
4) Accessibility. I am always a phone call away and respond promptly to all ways of communication.
I Am Your Resource I strive to continue to be a resource to my clients long after they have settled into their homes. I
have strong relationships with business professionals in many different trades and professions, and
can refer you to the newest restaurant openings, bars, and events in your neighborhood. I am here
for you!
Joseline Mucha c. 206.747.7099
o. 206.448.6400
http://http://joseline.mucha.biz/
Joseline Mucha 2
COMMITMENT
Windermere - Helping Homeless Families
My commitment to serving our communities goes beyond providing the best in real estate services.
Since the beginning, through our Windermere Foundation (founded in 1989), I’ve also reached out
to help address one of America’s most pressing problems – homelessness.
Housing is Our Business
Supporting programs that provide housing and related services to help homeless and low-income
families is a natural extension of our business. We assist homeless families by giving funds to a variety
of nonprofit social service programs for emergency and transitional shelter projects, temporary rent
assistance and daycare for families in need. Other activities include underwriting the cost of summer
camp, and basic necessities such as new school shoes, socks and underwear. I believe that building
a child’s self-esteem is an investment in the future of our communities.
Every Transaction Makes a Difference
What makes the Windermere Foundation unique is the way that it is funded. Every time a
Windermere agent sells a home, a portion of the commission goes to the Windermere Foundation.
Salaried employees and managers, as well as the public, make contributions. Since its inception, the
Foundation has contributed millions of dollars to non-profit organizations dedicated to fighting
homelessness, with less than one percent going to administrative costs.
Windermere & Community
Joseline Mucha 3
WINDERMERE
The Best Tools Windermere’s structure allows offices to operate independently while retaining the benefits of being associated with respected brand benefits such as advertising buying power, agent benefits and powerful technology tools. At the same time, I am intimately familiar with my local communities, allowing me to provide knowledgeable and high-caliber real estate services tailored to your needs. As part of the Windermere network, I also take advantage of a variety of programs and innovative services including technology, marketing and education that I put to work in the local market. These innovative tools allow me to serve homebuyers and home sellers in a way that is unique to Winder-mere. “Windermere has always emphasized professionalism. Our associates are the primary component to our success and growth. We’ve worked very hard over the years to build our reputation as a com-pany whose representatives are fair, honest, knowledgeable and genuinely care about their com-munities.” -Geoff Wood, Chief Executive Officer, Windermere Real Estate Windermere.com At the touch of a button, you can view thousands of homes throughout the West via Windermere’s award-winning website, Windermere.com. From here you can effortlessly preview homes for sale, learn about my company and get information to help you make your buying and selling decisions. The easy-to-use site includes homes listed by Windermere as well as other real estate companies. Photo Gallery Allows you to view multiple photos of a home. PropertyPoint An exclusive interactive map search tool now featuring Google Maps. myWindermere A feature, which automatically notifies you via email of new listings that fit your criteria daily or week-ly. You can create multiple searches. Mortgage Calculator Determine if the home is within your price range. Builder Gallery For newly constructed homes, which can assist you in learning about the home, builder and development.
The Best In Seattle
Joseline Mucha 4
FINANCING YOUR DREAM
Getting Pre-Approved
By getting pre-approved, you know exactly how much home you can afford. There is nothing worse
than finding your dream home, only to find out that you cannot qualify for a loan to buy it. A pre-
approval also strengthens your bargaining power when negotiating with a seller.
Determining how much you can afford before you begin your home search will save you valuable
time.
Pre-qualification vs. Pre-Approval Pre-qualifying for a mortgage generally helps you determine how much house you can afford. Re-
member, becoming qualified does not necessarily mean that you will be approved for a loan of that
amount. Pre-approval from your lender means that you have provided them with necessary paper-
work, and they have approved you for an actual loan. Having pre-approval for a home will put you
in a much better negotiating position, because the seller knows you are able to obtain your loan to
purchase their home.
Down Payment Most lenders require a 3.5 to 20 percent down payment.
I can help you locate a lender who will assist you in finding a financing package that best meets
your needs.
Preferred Lenders
If you do not already have a lender, please let me know. I will put you in touch with one of my trust-
ed partners who knows how to get the job done.
The Buying Process
Joseline Mucha 5
GOOD FAITH ESTIMATE
What Is A Good Faith Estimate? The Good Faith Estimate or GFE is a form, which lenders are required to complete and provide to borrowers applying for a mortgage. It is intended to make it easier for borrowers to compare mort-gage offers from different lenders and it is required under Real Estate Settlement Procedures Act (RESPA) rules. There are actually two forms to look at. The first is the Good Faith Estimate itself, and must be provid-ed when you apply for the loan. The second is the Settlement Statement, which breaks down and details all final costs, and is provided before the actual closing. The two forms are designed to allow the borrowers to compare the estimated and final costs to ensure they are either unchanged or that the changes are within the limits allowed by law. Origination Charges On the Good Faith Estimate, the main thing a borrower needs to be concerned with is the section titles “origination charges.” These are all the fees that the lender is charging you for making the loan. All a borrower has to do is compare origination charges to see exactly what different lenders would charge for issuing similar loans. The origination charges section also details any points that are being paid or credited to raise or low-er the mortgage interest rate. This enables borrowers to more accurately compare the true cost of offers from different lenders. Settlement Charges The second main item borrowers need to be concerned about is “settlement charges.” This details all third party costs, such as title insurance and transfer taxes. An optional table that can be filled out by the lender shows how you can raise or lower your interest rate by opting for higher or lower settlement charges, and vise versa. Can Your Rates, Payments, Loan Balance Increase? The Good Faith Estimate also details your initial loan balance, interest rate and monthly payments, and whether any of these can rise during the course of the loan and if so, by how much. It also re-quires disclosure of any prepayment penalties and whether there is a balloon payment on the loan. Finally, the form spells out which charges on the GFE cannot increase at the time of settlement (as detailed on the Settlement Statement). There’s also a “shopping chart” that allows borrowers to compare terms on up to four different mortgages.
The Buying Process
Joseline Mucha 6
THE SEARCH BEGINS
Pre-Approval Letter in Hand
Before we begin searching for homes, you should have already contacted a Mortgage Broker and
received your pre-approval letter. This allows us to narrow down your search to include only those
homes that are within your price range. It makes no sense to look at homes out of your price range
and miss something that is. With letter in hand, we are ready to begin the search for your new digs!
Determining Your Wants and Needs
I have several methods to help you determine your wants and needs. I have found the most effec-
tive method is for everyone who will be living in your home to sit down and fill out a wish list. This
helps you, as a group, to really analyze everyone’s expectations.
The Search Begins
Often, I will preview properties that meet your style, size, price, location requirements and choose
the most suitable properties. Sometimes we discover new listings together. If you are like most buy-
ers you’ll be searching online and visiting open houses whenever you can!
Re-Analyzing Your Wants and Needs
Often times after our first day of looking at homes you will
gain a greater insight on what you want and need in your
new home, and so will I. This allows us to narrow our
search and become more focused on your priorities.
New Properties on the Market In addition to checking the MLS database at least once
a day, I input your information into the MLS, which notifies
me via email when new properties are added that meet
your criteria. As new properties come available I will tour
them with or without you (your choice).
The Buying Process
Joseline Mucha 7
MAKING AN OFFER
Determining Your Offering Price
Once you have found the right house, you will probably feel educated enough to know what is a
good deal and what is a reasonable price. I will also guide you with my knowledge of the market-
place. We will take into account time on market, comparable properties, the condition of the home
and decide what is a fair price to offer. It will always be your decision, but I will help you as much as
I can to ensure you are educated enough to make confident decisions.
Zillow Schmillow
Many buyers look at online sites to get pricing for homes. All these averages don’t matter much if
the properties are not really that similar to the home you’re making an offer on. This is the biggest
drawback to rough-and-dirty web CMA sites like Zillow. They get their essential specs for your
property and the comps from the public records, which are often incorrect. They can’t adjust for a
house that has a huge addition, is in an inferior location or is simply very different from neighboring
homes. Also, if the neighborhood market took a major upswing or downturn three months ago, the
six-month-old sales won’t be nearly as predictive of the value of “your” home. I want my clients to
be aware of the difference.
Writing the Offer Our goal is to get the home on your terms which includes things like closing dates, things to be
included in the sale, price and earnest money. I will explain your contractual rights and responsibili-
ties, talk about different negotiating strategies and give as much advice as I can. The offer will spell
out how much you are willing to pay for the home, what type of financing you will obtain and a myr-
iad of other important details and dates relevant to the purchase of the property.
Remember to Breathe
Once I have presented your offer, the seller’s agent will review it with his or her clients and either ac-
cept it or send back a counteroffer. This can be a trying time for some people, worrying whether or
not their offer will be accepted. I want you to remember to breathe. Know that we have done our
best and will be up to the challenge of negotiating anything that comes our way!
The Buying Process
Joseline Mucha 8
CRAFTING THE WINNING OFFER
Homes Will Always Sell at Market Value Market value is determined by what a buyer is willing to pay. Market value is not a fixed, rigid price, but instead a range of value. This is because no two buyers are alike. While one must have a pool, another will consider a pool a liability. You, the buyer, are the market. In our current real estate environment, there are two distinct categories of buyers. One includes the traditional buyer looking for a good home at a good “value” today, because today is when they are shopping. The second category of buyer is a little less concerned with timing or even suitability of the property and much more concerned with value, not only in the context of value today but in terms of anticipated value tomorrow or next year. Regardless of the category in which you fall, keep in mind that both flavors of buyers are in the same market at any given time. Unless your goal is to accumulate a scrapbook of rejected offers you will one day share with your grandchildren, it is critical to remember that you are offering to purchase a home. A home, unlike a share of stock, a gallon of milk, or a commercial office building, is inherently emotional. So, it is helpful to keep in mind a few do’s and don’ts when creating your offer. Don’t Offend Write a cover letter summarizing why you believe this is the right home for you. On many occasions, I have seen a seller accept a lower offer because they felt a connection with the buyer. Do Be Prepared to Negotiate No buyer wants to think they paid too much, and no seller wants to think he sold out. Expect to go a round or two. “Take it or leave it” offers are rarely met with high-fives and bear-hugs from the seller. In negotiations, everyone wants to feel like they were in control and that they prevailed. Don’t Be Unreasonable There is value, and then there is crazy-talk. If a home is offered for X, and you are willing to pay 10% less than X, do not offer X minus $2 million and then ask the seller to throw in his bedroom furniture and a pony. You will not be taken seriously. Today’s real estate market is teeming with opportunity for the buyers. But, insanely great “deals” are still needles in the proverbial haystack, because the market value will always be determined by what a buyer is willing to pay. I will work with you to make sure your offer is strong and that we have discussed every option to get a great house at a great price!
The Buying Process
Joseline Mucha 9
TAKING CARE OF CONTINGENCIES
Plans A through C
When you’re buying a home, Plan A is always to buy the home on the terms in the original contract.
Plan B is to buy the home after negotiating some of the terms. Plan C is the contingency plan: if
there is an irresolvable flaw in the condition of the home, the home doesn't appraise for the pur-
chase price, or your lender refused to fund your loan for whatever reason, you can back out of the
transaction with no penalty (other than money you’ve spent on inspections) so long as you have the
appropriate contingencies in place.
Home Owners Association aka HOA
If the property is a part of a Home Owners Association, we will have an opportunity to read and ac-
cept the documents pertaining to the association. These documents describe the rules, regulations
and finances pertaining to the association. We want to make sure that everything is in good order
and that there are plans to keep it that way.
Title Commitment The sellers of the property will provide you with an insurance policy. This policy protects you against
loss arising from disputes over ownership of a property. We will have an opportunity to review the
policy and determine if there are any exceptions to the policy that you find objectionable. Your
lender will require you to purchase a separate policy that covers them.
Appraisal Your lender will hire an appraiser to determine if the property is worth the price you are paying.
There are contingencies built into the financing addendum to protect your earnest money if the ap-
praisal is lower than the purchase price.
Inspection Resolution
You have the right to have an inspection of the property prior to closing. I recommend you hire a
professional inspector to help you with this task. If you find any problems with the property, you can
ask the seller to repair them or compensate you for future repairs. Please see the home inspection
article for more on the inspection process and to see my list of trusted providers.
The Buying Process
Joseline Mucha 10
NUMBERS TO KNOW
Purchase Amount The purchase amount is the amount you are paying for the house. It is inclusive of your earnest money. It is inclusive of your down payment. It is not inclusive of your closing costs. Earnest Money When you make an offer by signing a contract, you’ll also pay a deposit called earnest money, usually 2- 5% of the purchase amount, to show that your interest in the house is serious. Paid by the buyer, earnest money is a portion of the purchase amount that is held by the escrow company while the transaction is in process. When the transaction closes, the earnest money is transferred to the seller as a portion of the original purchase amount. It is not an additional fee. Closing Costs Closing costs are not a part of the purchase amount, but rather charges associated with the buyers loan, the transaction itself and prepayment required by the lender such as taxes and hazard insurance. The escrow company collects closing costs at the same time that the down payment is collected. Down Payment The down payment is a portion of the purchase price that the buyer is paying in cash. Down payments can range between 3.5% and 100% and each buyer, working with their lender, deter-mines the best scenario for their particular purchase. How Does This All Work? Upon entering into a contract to purchase a home for $200,000 (purchase amount) with earnest money of $5,000, the buyer’s earnest money check is deposited into the escrow company’s trust account. The buyer’s decide on a mortgage program with a 5% down payment ($10,000) and their closing costs total $3,750. The buyer will also pay prepaid taxes and insurance etc. The mortgage will be for 95% of the purchase amount ($190,000).
Down Payment $10,000 Closing Costs $3,750 Prepaid Taxes & Insurance $1,000 Total $14,750 Earnest Money Credit ($5,000) Additional Amount Collected From Buyers at Closing $9,775 Purchase Amount $200,000 Buyer’s Closing Costs $3,750 Prepaids/Tax & Insurance $1,000 Total Cost to Buyer $204,750
The Buying Process
Joseline Mucha 11
HOME INSPECTION
Benefits
There are many obvious reasons to have an inspection done on a home you are
interested in buying. A home inspection evaluates the structure of the house,
gives you feedback on other systems such as the roof, electrical system, heating,
insulation, doors, windows and plumbing. Yes, home inspections are an added
expense and are usually optional, but they make sure your largest purchase is in
good working order.
No matter how much you like the house—old or new; it’s always a good idea to have an inspection
to avoid a “Money Pit” situation.
The Power of the Inspection Contingency
If your offer to purchase includes an inspection contingency, you can back out of the purchase if
the inspection uncovers more problems than you are willing to take on or if you are unable to come
to agreement with the seller regarding repairs or monetary concessions. The sellers are not obligat-
ed to make any repairs, so be prepared for the possibility of another round of negotiations.
My Cousin’s Brother’s Friend
It’s not a good idea to let family or friends perform the inspections for you. Even though they may
have some expertise, there could be a huge problem if they miss a major issue. Inspectors have in-
surance that is an added protection for you, and it’s far easier to convince a seller to take our re-
quests seriously when the inspector’s name isn’t Uncle Joe.
Hiring an Inspector In addition to checking the licensure, ask about a home inspector’s experience in the building
trades, and current membership in a professional inspection association such as ASHI (American So-
ciety of Home Inspectors) or you can call me and I will put you in touch with one of my trusted
The Buying Process
Joseline Mucha 12
ESCROW
What Is Escrow?
Escrow is a written agreement (or property or money) delivered to a third party or put in trust by one
party to a contract to be returned after fulfillment of some condition.
In Layman’s Terms
Escrow is the process by which property is transferred from one party to another, and where the con-
ditions set forth within the Purchase and Sale Agreement, Loan Commitment and other written in-
structions are satisfied. The escrow process brings together all of the people, paper, money and an-
swers the question—Who gets the money? And who gets the property?
It is important to have a neutral third party involved to assure that everyone’s interests are met. The
costs for the escrow company are generally split between the buyer and the seller equally and are
also a part of the “Closing Costs.”
Escrow Instructions
Escrow instructions define all the conditions that must occur before the transaction can be finalized.
Your escrow instructions specify, in a debit and credit format, the disposition of your purchase funds.
They also provide for title protection for your home.
Who, What, Where, When
Your escrow officer will contact you to make an appointment for you to sign your escrow instructions
and final loan papers. At this time, the escrow officer will also tell you the amount of money you will
need (in addition to your loan funds) to purchase your new home. Your loan funds will be sent di-
rectly to escrow by the lender. You may sign your escrow contract instructions and loan documents
at the escrow company’s office, or some other location that is convenient.
Where Is My Money?
Written evidence of your deposit is generally included in your copy of your purchase contract. Your
funds will then be deposited in your separate escrow or trust account and processed through your
bank.
The Buying Process
Joseline Mucha 13
TITLE
What Is It? For a seller, it is important to prove that they own the property and that there are no liens against it, other than the mortgage. This is done by showing clear title to the buyer. The title to the property can be insured as marketable and the buyer is made aware of title issues that might need to be re-solved prior to closing. This is why it is beneficial for the seller to order a “Preliminary Title Commit-ment.” Upon listing their property, one of the first steps they will do is order this report from the Title Company, who will research ownership of the land back to the time it was owned by the govern-ment. Who Pays For It? Once an offer is received, all parties involved will want to review the Preliminary Title Commitment. There will be two separate title insurance policies purchase. The seller will buy the purchaser a title insurance policy, and the buyer will purchase one for their lender. This is a one time charge and a policy that last as long as the buyer owns the home. The Title Search After your sales contract has been accepted, a title professional will search the public records to look for any problems with the home’s title. This search typically involves a review of land records going back many years. More than 1/3 of all title searches reveal a title problem that title profession-als fix before you go to closing. For instance, a previous owner may have had minor construction done on the property, but never full paid the contractor. Or the previous owner may have failed to pay local or state taxes. The Owner’s Title Policy Owner’s Title Insurance, called an Owner’s Policy, is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and lasts for as long as you or your heirs have an interest in the property. Only an Owner’s Policy fully protects the buyer should a covered title problem arise with the title that was not found during the title search. The Loan Policy aka Lenders Title Insurance Most lenders usually require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property should a problem with title arise. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off.
The Buying Process
Joseline Mucha 14
PENDING TO CLOSE
The Details
Once we make an offer on a home it is my job to make sure your offer is accepted, carefully
executed, that every detail of your transaction is completed, and adheres to the strict time
schedules of your contract.
Timeline
I will be providing you with a Pending-to-Close timeline once
we have mutual acceptance on your home. The timeline
below is a visual display of the important dates of your
contract.
Sample
Transaction Time Table for Mr. & Mrs. Smith
09/23/11 Mutual Acceptance! Congratulations.
09/26/11 Must have written application for financing.
09/28/11 Must have the inspection contingency removed.
10/12/11 Estimated signing date.
10/15/11 Closing and Possession.
The Buying Process
Joseline Mucha 15
CLOSING & POSSESSION
Closing
The “closing” is actually comprised of two separate closings. At the real estate closing you will sign
closing documents relating to the transfer of the property. The loan closing takes place after you
sign the loan documents. Once all documents are signed, the lender disburses the funds to the clos-
ing agent, the seller is paid and title to the home is transferred into your name.
Don’t Be Nervous
Closing makes many first-time buyers nervous because it seems like a procedure where you sign your
life away on a bunch of papers you don’t have time to read. Actually, by the time closing rolls
around, the hardest part is truly over. Closing actually feels a little bit giddy and at the end, you
have the keys to your new house! You will sign your name 487 times, but if you’ve done everything
right up to this point, it will not be stressful. Relax.
Possession
The time and date of possession of the property
is negotiated on the contract. Upon possession,
The Buying Process
Joseline Mucha 16
CLOSING COSTS DEFINED
What Are Closing Costs?
Throughout the shopping phase of buying a home, choosing a lender and settling on a mortgage
program, the words closing costs are tossed around frequently.
Closing costs are an assortment of fees based on the transaction between the seller and the buyer
of a home (fees based on the closing of the transaction, hence the name). They are fees that are
collected by the escrow company at the signing appointment, usually a day or two before the
transaction is recorded.
Who Pays Them?
Some closing costs, such as excise tax on the sale and real estate commissions, are the responsibility
of the seller. Some closing costs, such as the cost of the escrow company, are split between the
buyer and seller. Many of the closing costs are related to the buyers mortgage and these are the
buyer’s responsibility.
One of the largest costs associated with the mortgage is the “loan origination fee” or the fee
charged by the lender to provide the loan. This varies between lenders and is something that should
be considered when shopping for a lender. Some buyers, at times, will elect to pay a separate fee
to “buy down” or lower the interest rate. Lenders can also charge for appraisal, title insurance, cou-
rier fees, etc.
In addition to closing costs, the escrow company will be instructed by the lender to collect “pre-
payment amounts”, also referred to as “pre-paids”. These pre-payments are for such things as real
estate taxes, insurance, etc.
How Much Are They?
The kind and amount of closing costs you will incur will depend on your loan, your lender and the
home you decide to purchase. Upon making your initial loan application, your lender will provide
you with a Good Faith Estimate which will give you a better idea of what to expect.
The Buying Process
Joseline Mucha 17
WRE Form 29 Rev. 08/2012
Page 1 of 1
BUYER AGENCY AGREEMENT
Date: Expiration Date:
Buyer(s):
Broker: Firm: Windermere Real Estate/
Excluded properties or geographic limitations:
1. Agency Agreement. Buyer retains the above‐named Firm and Broker, on Firm’s behalf, to act as Buyer's agent in the purchase of real property. Broker agrees to represent Buyer in accordance with the duties of a buyer's agent as set forth in "The Law of Real Estate Agency" pamphlet, which Buyer has received. Any additional duties must be agreed to in writing.
2. Compensation & Scope of Agency. Buyer retains Broker solely with respect to properties listed by a multiple listing service of which Firm is a member ("Listed Properties"). Broker is only obligated to search for Listed Properties. Buyer agrees to use Broker's services if Buyer purchases a property for which Broker provided real estate brokerage services. In the event Buyer purchases a Listed Property, Broker’s brokerage fee will be the selling office commission paid by Seller or Listing Broker. If Buyer purchases an unlisted property, Buyer agrees to pay a brokerage fee of ______ % of the purchase price (3% if not filled in) at closing, less any commission paid by the seller. If the commission paid by the Seller is equal to or more than the brokerage fee due under this paragraph, then Buyer shall owe no brokerage fee. Buyer consents to Broker and Firm being compensated by both Buyer and Seller (except when law requires otherwise, such as in transactions involving VA financing in which case the seller must pay the full brokerage fee).
3. Termination. Buyer, Broker or Firm may terminate this Agreement at any time by giving written notice. If Firm or Broker terminates this Agreement, Buyer shall be released from any further obligations. If Buyer terminates this Agreement or it expires, then Buyer shall be released from all obligations, except that if Buyer purchases a property within 120 days after termination or expiration, and Buyer’s attention was brought to that property through the efforts of Broker during the term of this Agreement or Broker provided real estate brokerage services for that property during the term of this Agreement, then Buyer agrees either: (1) to use Broker's services in connection with that purchase in accordance with the provisions of paragraph 2; or (2) to pay Firm the brokerage fee that would have been payable or received in connection with the transaction, even if a commission is also paid to another Firm. Buyer agrees not to terminate this Agreement to prevent Firm from receiving a brokerage fee.
4. Distressed Homes. Broker and Firm will not represent or assist Buyer in a transaction that is a “Distressed Home Conveyance” as defined by Chapter 61.34 RCW unless otherwise agreed in writing. A “Distressed Home Conveyance” is a transaction in which Buyer purchases property from a “Distressed Homeowner” as defined by Chapter 61.34 RCW, allows the “Distressed Homeowner” to continue to occupy the property, and promises to convey the property back to the “Distressed Homeowner” or allow the “Distressed Homeowner” to share a portion of the proceeds from a resale of the property.
5. Short Sales. In a short sale transaction, the seller must ask one or more lienholders to accept less than they are owed in order to clear title to the property. Short sales are legally complex transactions that may take longer than an ordinary sale. Buyer agrees to carefully consider benefits and risks of a short sale transaction and to consult legal counsel for legal advice.
6. Bank‐Owned Properties. After a property goes through foreclosure, frequently it is the bank (prior owner’s lender) that ends up owning the property. Banks which then seek to sell the property on the market will often utilize a bank addendum in the purchase and sale agreement which may contain lopsided provisions in favor of the bank. There are benefits and risks in buying bank‐owned properties, and Buyer agrees to carefully consider the circumstances and to consult legal counsel for legal advice.
7. Agency Disclosure, Dual Agency, and Competing Buyers. If Buyer is interested in a property listed by Broker, Buyer authorizes Broker to act as a dual Broker in accordance with the Law of Real Estate Agency. If Buyer purchases a property listed with another real estate licensee associated with Firm, Buyer agrees that the listing Broker will represent the seller, Buyer's Broker will represent Buyer, and that Firm will be a dual Broker in accordance with the Law of Real Estate Agency. If Broker is a dual Broker, Buyer agrees that Broker may write and present additional offers to purchase the property as the Seller's Broker. Buyer acknowledges and agrees that Broker may represent other buyers interested in the same properties. After any buyer represented by Broker signs an offer to purchase a particular property, Broker may inform other buyers about that property, but will not represent any competing buyer with respect to that property during the term of that transaction. If any buyer represented by Broker expresses an interest in such a property, that buyer may be referred to another licensee (including licensees affiliated with Firm) for assistance on that property only. Buyer agrees that Broker may receive compensation for the referral and agrees that such compensation would not be adverse or detrimental to Buyer's interest in the transaction or create a conflict of interest.
8. Attorney Fees. In the event of a fee dispute, the prevailing party shall be entitled to recover a reasonable attorney fee, court costs, and expenses in connection with the fee dispute. BROKER: BUYER ADDRESS: DATE BUYER: DATE PHONE: ( ) ‐ BUYER: DATE EMAIL:
Windermere Real Estate/Wall Street Inc. 2420 2nd Ave Seattle, WA 98121
Joseline Mucha c. 206.747.7099
o. 206.448.6400
http://http://joseline.mucha.biz/
