Edward Knox
Associate Development Manager, Broker, REALTOR Coldwell Banker Howard Perry and Walston 9051 Strickland Road, Suite 200 Raleigh NC 27615 www.edwardknoxrealtor.com knoxe@hpw.com 919-389-5086
My Mission Statement: To help my clients transition from where they are to where they want to be.
Vision Statement: To run a business that allows me to help people while providing the lifestyle I desire for my family. 18+ Years Real Estate Experience helping Sellers and Buyers move forward in their lives. Provide Training and Education to new agents joining the company as they start their careers. Head Mentor over the mentor program to ensure processes are being performed correctly for clients. Coldwell Banker International Award Level Winner for 15+ years. Assisted hundreds of Clients in their Real Estate transactions. Full Service Agent Full Team of Lenders, Title, Inspectors, Contractors, Lawyers, Trust Accounts Handle the transaction from start to finish Raleigh Native North Carolina State Graduate 18 years in Manufacturing and Distribution Operations prior to Real Estate. Proven Process for Marketing and Selling homes Access to Agents throughout the United States to assist people moving to or from any City in the Nation. Part of the Relocation and Ecommerce Teams giving access to buyers moving here from other areas.
When Opportunity Knox, Call Edward! I show up to get the job done.
How does Coldwell Banker HPW stack up to the competition??
I am glad you asked. You only have to remember Number One .
Number One National Company Number One Local Company Number One in Volume Number One in Transactions
Number One in Listings Number One in Buyers Number One in Training Number One in Relocation
You deserve Number One treatment, do not sell yourself short.
Do not trust your biggest investment to anyone but Number One !
Options to consider when you List:
Does your Agent offer Staging Options? Does your Agent have Professional Pictures taken? Does your Agent have Drone pictures taken? Does your Agent have a Matterport Virtual Tour made? Does your Agent use Electronic Lockboxes to know who and when people are in your house? Does your Agent have a lender they can call 7 days a week to make sure you have the best buyer and one that is capable to complete the close of your transaction? Does your Agent install a Professional 4x4 post sign or just hammer in a metal sign post? Does your Agent recommend a Flash Pre-Inspection to determine condition of your top 5 functions of the house? Does your Agent have a Title Company to assist in any Title issues that arise throughout the listing to close process? Does your Agent have access to Moving Companies that offer discounts for working with them? Does your agent have a proven Process to get the most buyers interested in your house? Can your agent get your house in front of 800+ agents before it s even listed in the MLS? Does your Agent work by your side throughout the Pre-List to Close Transaction? If you call your Agent do they pick up or is it sent to someone else to handle? Does your agent devote their time and money to this process knowing that they will not be reimbursed if they do not find you the best buyer for your property? Does your Agent give you weekly updates on the progress of your home and is available 7 days a week to discuss issues.
If you said no to any of these you do not have the right Agent for your transaction, and we need to talk. I show up to get the job done.
Do you think it would help you sell your home if you could get up to $30,000 to do cosmetic/staging/landscape issues and contractor updates before listing it? Did I mention it is No Charge, No Interest, and Money Up Front? We have that for our clients. Money is paid back at closing. Our RealVitalize and Punch List Programs offer you that. Please ask me about them, other sellers are.
FIX IT UP WITH NOTHING UP FRONT
HOW IT WORKS
AGENTS USING REALVITALIZE CAN
• Win listings • Sell listings faster • Sell listings for a higher price • Earn on average 10% more dollars in commission* * Based on program data from June 1, 2020 to May 31, 2021. Not a controlled study; correlation does not equal causation. Results not guaranteed and past performance does not guarantee future results.
With your active listing agreement in hand: 1. Enroll in RealVitalize Upload Participation Agreement (seller and broker signed) onto the Online Enrollment Platform. Approval in 1-2 business days. 2. Schedule Projects Angi Project Consultant connects you to service professionals to scope work, provide estimates, and schedule work. 3. Work Gets Completed Work gets completed on time and on budget. Angi guarantees your seller’s satisfaction with work quality. 4. Home Sells, Costs Paid Back When home closes, funds will be removed from settlement proceeds — no interest, markups, or fees.
HPW REALVITALIZE.COM | REALVITALIZE@ HPW. COM
SELLER BENEFITS
SERVICES AVAILABLE
• Staging • Appliance Purchasing & Installation • Carpet Cleaning • Kitchen & Bathroom Upgrades • Handyman Services • Curb Appeal Enhancements • Electrical Upgrades • Carpentry • Drywall & Insulation • Landscaping • Painting • Plumbing • Junk Hauling, Moving, Storage & MUCH MORE!
• Higher market offer • Less time on market • Fewer delays to closing • Streamlined process
• No interest, fees or markups • No liens filed against property
• No credit checks or pre-qualifications • No min or max housing price to enroll • No minimum project cost • Access to Angi’s top-rated local service providers A seller’s RealVitalize budget is set equivalent to the Listing Agent’s commission rate, up to your brokerage’s maximum, with no risk of repayment for the agent.
Structural work not included. Ask your Angi Project Consultant for details.
WHAT AGENTS ARE SAYING
“ I use the RealVitalize program as a deal sealer.” BROOKS BOWMAN, HI “It’s such an easy process for my clients and myself, and it makes me look like a rock star!” SALENA GUTIERREZ, TX “The Angi contractors did an amazing job and definitely helped sell this house.” MICHAEL PARISANO, PA
CONTACT US
To learn more about RealVitalize: HPW REALVITALIZE.COM
HPW REALVITALIZE.COM | REALVITALIZE@ HPW .COM ©2021 Realogy. All Rights Reserved. Execution of a program agreement is required. RealVitalize is not available in all states and available only at participating offices. Void where prohibited by law. Additional terms and conditions apply. Results not guaranteed. Not intended as a solicitation if your property is already listed by another broker. The RealVitalize logo and service mark are owned by Realogy Group LLC. Realogy and its affiliated companies fully support the principles of the Fair Housing Act and the Equal Opportunity Act.
Frequently Asked Questions
No! Your estimate is an online shopping cart. You can add and remove items from the estimate with a few clicks. Do I have to approve all of the work on an estimate? How much does it cost to get an estimate? Estimates are free for our broker network. Otherwise, there is a $49 fee. How long is my estimate good for?
What repairs do you not cover? Currently, we do not complete foundation or roofing repairs – though we can help facilitate the process if you’re completing other repairs with us. How do you qualify your vendors and check their work? How long does it take to get an estimate? background check. Their work is double checked by our superintendents and field managers for quality. Our vendors have been thoroughly screened for skill and experience and have passed a
90 days
Can I still get an estimate if I am out of the service area? Yes. Out of service estimates are available for $49.
For broker partners, we offer next-day turnaround on estimates.
Can I get an estimate on the weekends? Broker partners can receive an estimate on weekends. Do I have to schedule a site visit to get an estimate? No. We can price most items on the inspection report remotely. Do you guarantee your work? Yes, Our work is backed by our one-year warranty. Do you price match? Yes. We will match and beat qualifying quotes from licensed and insured contractors. Can I have additional work done after closing? Yes! We can help with repairs anytime before, during, and after your purchase or sale.
When is payment due?
Do you accept payment by credit card? Is there a service charge? We accept credit cards and there are no service charges. How quickly can you get someone to complete the work? Typically, we can start work within just a few days. Is the agent responsible for scheduling the project? No, We have a dedicated team of Customer Support Managers who schedule and manage your project. When repairs are completed before closing, we waive the deposit (on repairs under $10,000) and give sellers the option to pay at settlement from the closing funds.
partner.punchlistusa.com/hpw
Review CMA
Order Sign, Lockbox
Agree on Listing Price
Pre-Listing Inspection
Prepare House for Marketing Step 2
Listing Agency Step 1
Paint, Repair, Update
Review Net Sheet
Schedule Professional Pictures
Sign Listing Agency
GETTING YOUR HOME SOLD ON YOUR TIMELINE
Enter into MLS and Mass Market Listing
Advise and Negotiate Offers Handle Contract and Paperwork for closing Present and Review Offers
Create Flyers and Brochures and set Open Houses
Public Marketing Step 3
Fulfilling your Dream Step 4
Weekly Updates
Share feedback from Showings
Attend Closing
This form is required for use in all sales transactions, including residential and commercial.
Working With Real Estate Agents Disclosure (For Sellers)
IMPORTANT This form is not a contract. Signing this disclosure only means you have received it.
• In a real estate sales transaction, it is important that you understand whether an agent represents you. • Real estate agents are required to (1) review this form with you at first substantial contact - before asking for or receiving your confidential information and (2) give you a copy of the form after you sign it. This is for your own protection. • Do not share any confidential information with a real estate agent or assume that the agent is acting on your behalf until you have entered into a written agreement with the agent to represent you. Otherwise, the agent can share your confidential information with others.
Note to Agent: Check all relationship types below that may apply to this seller.
Note to Seller: For more information on an agent’s duties and services, refer to the NC Real Estate Commission’s “Questions and Answers on: Working With Real Estate Agents” brochure at ncrec.gov (Publications, Q&A Brochures) or ask an agent for a copy of it. ________ Buyer Agent Working with an Unrepresented Seller (For Sale By Owner, “FSBO”): The agent who gave you this form will not be representing you and has no loyalty to you. The agent will represent only the buyer. Do not share any confidential information with this agent. ________ Seller’s Agency (listing agent): The agent who gave you this form (and the agent’s firm) must enter into a written listing agreement with you before they begin to market your property for sale. If you sign the listing agreement, the listing firm and its agents would then represent you. The buyer would either be represented by an agent affiliated with a different real estate firm or be unrepresented. ________ Dual Agency: Dual agency will occur if your listing firm has a buyer-client who wants to purchase your property. If you agree in a written agency agreement, the real estate firm, and any agent with the same firm (company), would be permitted to represent you and the buyer at the same time. A dual agent’s loyalty would be divided between you and the buyer, but the firm and its agents must treat you and the buyer fairly and equally and cannot help you gain an advantage over the other party. ________ Designated Dual Agency: If you agree in a written agency agreement, the real estate firm would represent both you and the buyer, but the firm would designate one agent to represent you and a different agent to represent the buyer. Each designated agent would be loyal only to their client.
Seller’s Signature
Seller’s Signature
Date
Agent’s Name
Agent’s License No.
Firm Name
REC. 4.27 • 4/6/2021
Questions and Answers on: WORKING WITH REAL ESTATE AGENTS
When buying or selling real estate, you may find it helpful to have a real estate agent assist you. Real estate agents can provide many useful services and work with you in different ways. In some real estate transactions, the agents work only for the seller. In other transactions, the seller and buyer may each have their own agents. And sometimes the same agent or firm works for both the buyer and the seller in the same transaction. It is important for you to know whether an agent is representing you as your agent or simply assisting you while acting as an agent of the other party. Do not share any confidential information with a real estate agent or assume that the agent is acting on your behalf until you have entered into a written agreement with the agent to represent you. Otherwise, the agent can share your confidential information with others and this could hurt your ability to negotiate the best deal for yourself. To assist buyers and sellers in understanding the roles of real estate agents, the Real Estate Commission requires agents in sales transactions to (1) review a “Working With Real Estate Agents Disclosure” with you at first substantial contact - before asking for or receiving your confidential information and (2) give you a copy of the Disclosure form after you sign it. The Disclosure form is for your education and protection and is not a contract. This Q&A brochure assumes that you are a prospective buyer or seller and answers common questions about the various types of agency relationships that may be available to you. It should help you: • decide which relationship you want to have with a real estate agent • give you useful information about the various services real estate agents can provide buyers and sellers • explain how real estate agents are paid IMPORTANT NOTE ABOUT RACIAL EQUALITY AND FAIR HOUSING: The Commission is committed to the principles of excellence, fairness, and respect for all people. It is our goal to ensure that brokerage activities are conducted in fairness to all and to end discrimination in the sale or rental of all real estate. In residential sales and rental transactions, agents must comply with the Fair Housing Act which prohibits discrimination on the basis of the race, color, religion, sex, national origin, handicap, or familial status of any party or prospective party. For more information on the NC Fair Housing Act, you may visit https://www.oah.nc.gov/civil-rights-division/housing-discrimination.
Q: What does the word, "agency," mean? A: The relationship between a real estate agent and the buyer or seller who hires the agent is referred to as an agency relationship, because the real estate agent acts on behalf of (i.e. as an
agent for) the buyer or seller (the “client”). In an agency relationship, the agent has certain duties and responsibilities to their client.
Q: What is an agency agreement? A: An agency agreement is a contract between you and a real estate firm that authorizes the firm and its agents to represent you. The agency agreement between buyers and agents is typically called a “Buyer Agency Agreement”; between sellers and agents, a “Listing Agreement.” Be sure to read and understand the agency agreement before you sign it. If you do not understand it, ask the agent to explain it. If you still do not understand, you may want to consult an attorney before signing the agreement. Your agent must give you a copy of the agreement after you sign it. Q: Is there a "standard" length of time for agency agreements? A: No. The term or length of an agency agreement is negotiable. Real estate agents are allowed to determine their own policies for the lengths of their agency agreements. However, a prospective buyer or seller may request a different length of time than proposed by an agent. If an agreement cannot be reached with the agent, the buyer or seller may seek another real estate agent willing to agree to a different length of time. Every agency agreement must have a definite expiration date. Q: Is there a "standard" fee for real estate agents? A: No. The amount or percentage of an agent's compensation is negotiable. Real estate agents are allowed to determine their own compensation policies. However, a prospective buyer or seller may request a different fee. If an agreement cannot be reached with the agent, the buyer or seller may seek another real estate agent willing to agree to a different fee.
Q&As for SELLERS
Q: I want to sell my property. What do I need to know about working with real estate agents? A: If you own real estate and want to sell it, you may want to “list” your property for sale with a real estate firm. If so, you will sign a written “listing agreement” authorizing the firm and its agents to represent you as your “listing” agent in your dealings with buyers. The real estate firm must enter into a written listing agreement with you before it is allowed to begin marketing or showing your property to prospective buyers or taking any other steps to help you sell your property. The listing firm may ask you to allow agents from other firms to show your property to their buyer-clients. Q: What are a listing agent's duties to a seller? A: The listing firm and its agents must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents during the agency relationship without your permission. But until you sign the listing agreement, you should avoid telling the listing agent anything you would not want a buyer to know. Q: What services might a listing agent provide? A: To help you sell your property, a listing firm and its agents will offer to perform a number of services for you. These may include • helping you price your property • advertising and marketing your property • giving you all required property disclosure forms for you to complete • negotiating for you the best possible price and terms • reviewing all written offers with you and • otherwise promoting your interests. Q: How is the listing firm compensated? A: For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the sales commission or fee and whether you will allow the firm to share its sales commission with agents representing the buyer.
Q: If I list my property with a real estate firm that also represents a buyer who wants to buy my property, what happens then? A: You may permit the listing firm and its agents to represent you and a buyer at the same time. This would mean that the real estate firm and all of its agents would represent you and the buyer equally. This “dual agency relationship” will happen if an agent with your listing firm is working as a buyer’s agent with someone who wants to purchase your property. If you have not already agreed to a dual agency relationship in your listing agreement and this is acceptable to you, your listing agent will ask you to amend your listing agreement to permit the firm to act as agent for both you and the buyer. Any agreement between you and a firm that permits dual agency must be put in writing no later than the time the buyer makes an offer to purchase. Q: What is the risk if I agree to dual agency? A: Dual agency creates a potential conflict of interest for the firm that represents you, since its loyalty is divided between you and the buyer. It is especially important that you have a clear understanding of what your relationship is with the firm and with the firm’s individual agents, since all of them are dual agents. A dual agent must treat buyers and sellers fairly and equally and cannot help one party gain an advantage over the other party. Although each dual agent owes both their buyer and seller client the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party. Q: How can I reduce the risk if dual agency occurs? A: To minimize conflicts of interest, some firms also offer a form of dual agency called “designated dual agency” where one agent in the firm represents only the seller and another agent represents only the buyer. The firm and the firm’s other agents remain in dual agency. This option (when offered by a firm) may allow each “designated agent” to more fully represent each party. Under designated dual agency, each agent designated to represent the seller is prohibited from disclosing (1) that the seller may agree to any price or terms other than those established by the seller, (2) the seller's motivation for selling, or and (3) any information the seller has identified as confidential, unless otherwise required by statute or rule. Q: Can I sell my property without hiring a real estate agent? A: Yes. In that case, you would be an unrepresented seller often referred to as For Sale By Owner or "FSBO." If you are selling your property without hiring an agent, then any agent involved in your transaction would be representing only the buyer. Do not share any confidential information with the buyer’s agent. If the agent for the buyer asks you for
compensation and you are willing to pay that agent, then you should enter into a written agreement that clearly expresses the terms and conditions of your obligation to pay the agent.
Q: What happens if the listing agreement expires? A: If the listing agreement expires after you enter into a contract to sell your property, then the listing agent and firm may continue representing you through the date of the closing and you may be responsible for compensating the listing firm in accordance with the provisions of the listing agreement. If the listing agreement expires without your property going under contract, then the listing agent/firm must immediately stop marketing your property unless you first enter into a new listing agreement with the firm.
Q&As for BUYERS
Q: I want to buy real estate. What do I need to know about working with real estate agents? A: When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer agent). You may be willing for them to represent both you and the seller at the same time (as a dual agent). Or you may agree to let them represent only the seller (seller’s agent or subagent). Some agents will offer you a choice of these services. Others may not. Q: What are a buyer agent's duties to a buyer? A: If the real estate firm and its agents represent you, they must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer agent, they may not give any confidential information about you to sellers or their agents during the agency relationship without your permission. But until you make this agreement with your buyer agent, you should avoid telling the agent anything you would not want a seller to know.
Q: Must a buyer have a written agency agreement with the agent who represents the buyer?
A: To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do for you, you may want to have a written agreement when you first begin working with an agent. However, some firms may be willing to represent and assist you initially as a buyer agent without a written agreement. But if you decide to make an offer to purchase a particular property, the agent must enter into a written agency agreement with you before preparing a written offer or communicating an oral offer. If you do not sign the agency agreement, then the agent can no longer represent and assist you and is no longer required to keep information about you confidential. Q: What services might a buyer agent provide? A: Whether you have a written or unwritten agreement, a buyer agent will perform a number of services for you. These may include helping you • find a suitable property • arrange financing • learn more about the property and • otherwise promote your best interests. If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller. Q: How is a buyer agent compensated? A: A buyer agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing firm first, but require you to pay if the listing firm refuses. Whatever the case, be sure your compensation arrangement with your buyer agent is clearly indicated in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision. Q: What happens if I want to buy a property listed by the same agent or firm that represents me? A: You may permit an agent or firm to represent you and the seller at the same time. This would mean that the real estate firm and all of its agents would represent you and the seller equally. This “dual agency relationship” will happen if you become interested in buying a property listed with your agent’s firm. If you have not already agreed to a dual agency relationship in your (written or oral) buyer agency agreement and this is acceptable to you, then your buyer agent will ask you to amend the buyer agency agreement or sign a separate agreement or document permitting his or her firm to act as agent for both you and the seller. Any agreement between you and an agent that permits dual agency must be put in writing no later than the time you make an offer to purchase.
Q: What is the risk if I agree to dual agency? A: Dual agency creates a potential conflict of interest for the firm that represents you since its loyalty is divided between you and the seller. It is especially important that you have a clear understanding of what your relationship is with the firm and all of its individual agents, since all of them are dual agents. This can best be accomplished by putting the agreement in writing at the earliest possible time and asking any questions that you may have. A dual agent must treat buyers and sellers fairly and equally and cannot help one party gain an advantage over the other party. Although each dual agent owes both their clients the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party. Q: How can I reduce the risk if dual agency occurs? A: To minimize conflicts of interest, some firms also offer a form of dual agency called “designated dual agency” where one agent in the firm represents only the seller and another agent represents only the buyer. The firm and the firm’s other agents remain in dual agency. This option (when offered by a firm) may allow each “designated agent” to more fully represent each party. Under designated dual agency, each agent designated to represent the buyer is prohibited from disclosing (1) that the buyer may agree to any price or terms other than those established by the buyer, (2) the buyer's motivation for buying, or and (3) any information the buyer has identified as confidential, unless otherwise required by statute or rule. Q: What happens if the buyer agency agreement expires? A: If the buyer agency agreement expires after you entered into a contract to purchase a property, then your agent may continue to represent you through the date of the closing and you may be responsible for compensating the firm in accordance with the provisions of the buyer agency agreement. If you are not under contract to buy a property when your buyer agency agreement expires, then your agent must immediately stop representing you unless you first enter into a new buyer agency agreement with the agent. Q: Can I buy real estate without hiring a real estate agent? A: Yes. If the real estate agent or firm that you contact does not offer buyer agency or you do not want them to act as your buyer agent, you can still work with the firm and its agents. However, they will be acting as the seller’s agent (or “subagent”). The agent can still help you find and purchase property and provide many of the same services as a buyer’s agent. The agent must be fair with you and report any “material facts” (defects such as a leaky roof) about properties.
But remember, the agent represents the seller—not you—and therefore must try to obtain for the seller the best possible price and terms for the seller’s property and cannot give you advice on buying the property if it will conflict with the seller’s interests. Furthermore, a seller’s agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are sellers’ agents before they ask you about anything that can help the seller. But until you are sure that an agent represents you and is not a seller’s agent, you should avoid saying anything you do not want a seller to know.
Q: If I am an unrepresented buyer, who pays the real estate agent? A: Unless you agree otherwise, seller’s agents are compensated by the sellers.
Q: Can the real estate agent who represents the seller require me to hire an agent to represent me? A: No. While it may benefit you to hire an agent, there is no law requiring a buyer to hire a real estate agent to buy real estate.
TERMINATION OF AGENCY AGREEMENTS
Q: If I hire a real estate agent or firm to represent me, can I terminate the agency agreement before it expires? A: Maybe. An agency agreement is a contract between a buyer or seller and a real estate firm. Most agency agreements do not contain a provision allowing a buyer or seller to terminate the agreement before it expires without the consent of the other party. Generally, one party cannot terminate the agreement without the consent of the other party. If you and the firm both agree to terminate the agreement, then you both should sign a written agency termination agreement. If the agent asks for compensation in exchange for terminating the agreement, then you can agree or disagree or try to negotiate the amount of compensation. If an agency agreement contains a penalty or fee for early termination, the provision specifying the penalty or fee must be set forth in a clear and conspicuous manner. If you are not able to reach an agreement on the termination of the agency agreement, then you may consult your own attorney or simply wait until the agency agreement expires. The Real Estate Commission does not have the authority to terminate agency agreements or to force a real estate agent to terminate an agreement.
The North Carolina Real Estate Commission P.O. Box 17100 • Raleigh, North Carolina 27619-7100 919/875-3700 • Web Site: www.ncrec.gov REC 3.45 3/5/21
SELLER ADVICE FOR ON-TIME CLOSING and the DUE DILIGENCE OFFER TO PURCHASE
Be Prepared and Be a “Better Seller” There have been dramatic changes in mortgage lending regulations and real estate market conditions! Because those changes affect the selling process when using the standard "Due Diligence” Offer to Purchase and Contract form, Coldwell Banker Howard Perry and Walston has developed this advice to help Sellers better understand what will be necessary to have an on- time closing and understand the nature of the typical sale transaction using that form. The goal is to make you a “Better Seller". Sellers are encouraged to read and review with their listing agent the “Contract to Closing Timeline” and the "Sample" version of the Offer to Purchase and Contract, and any addenda that may be used. Being prepared and realistic, understanding the time under contract that will be required by most Buyers, as well as for yourself, and familiarity with the terms of the contract form that is being used will help make you a Better Seller. This will work to your advantage as discussed below. 1. Timing is everything! Know what is required. Most Buyers will have to obtain a mortgage to purchase your property. Mortgage regulations under the “Dodd-Frank Act” will require that Buyers ultimately receive a Closing Disclosure from their mortgage lender no less than 3 days prior to Settlement. Achieving this will, for a variety of reasons, require any Closing Attorney selected by the Buyer to have all the financial information needed from many sources, including you, no less than 10 days in advance. All expenses related to the transaction, including those paid before Closing, must appear on the Closing Disclosures and Settlement Statement. All parties to the transaction and their agents should work to complete all pre-closing activities approximately 14 days prior to Settlement to allow sufficient time for all that must be done and to report financial information to the Closing Attorney. This will mean, at a minimum, that the time from having an effective contract of sale to closing should be no less than 45 days . Your property needing substantial repairs while under contract, but before closing, or the Buyer’s lack of mortgage pre-approval and/or use of a subsidized or governmental mortgage program will require more time than this. Some of the “Better Seller” strategies outlined below can help reduce the time needed under contract. In any event, careful planning and coordination of the time needed by you and the Buyer should be accomplished before going under contract. 2. Better Sellers completely prepare the Property for sale . Cleaning, de-cluttering and “staging” are very important steps for Sellers. Your listing agent can provide many tips and resources about this. Beyond that, pre-marketing home inspection and repair, if necessary, helps avoid delay and additional costs. Even in a “Seller’s Market”, a pre-marketing home inspection that is shared with prospective buyers can be valuable to attract buyers to pay substantial Due Diligence Fees with less worry about the condition of the property and save Sellers from accusations of failure to disclose defects in the property. As you see in our listing agreement, HPW recommends that Sellers obtain a pre-marketing home inspection and decide, with the help of the listing agent what, if any, repairs should be made and make them before marketing the property. There are several good reasons to do this.
Coldwell Banker Howard Perry and Walston © 2021
Seller Initials Acknowledging Receipt _______ _______
a ) Improve marketability . In addition to the good effects that, cleaning, “staging” and cosmetic improvements might have, Sellers can eliminate Buyer’s objections and improve the marketability of their Property by satisfying the potential Buyer that there are no hidden defects in the condition of the Property before negotiating a contract. Through a pre-marketing inspection and making appropriate repairs and disclosure, Sellers can demonstrate that they either properly corrected all or most defects or that they have disclosed the issues and accounted appropriately for the decision to not correct defects by meaningful adjustment of the purchase price, depending upon market conditions. For Sellers who firmly intend to make no repairs and sell the Property in its “current condition” as provided in the contract form, those potential Buyers who would be dissatisfied with getting a better price and making repairs themselves after Closing can be eliminated early by providing them with this information, rather than finding out after they go under contract and inspect the Property. b) You will inevitably find out what defects exist in your property. We think knowing earlier is best for Sellers. Most Sellers are not aware of the hidden defects that might have developed in their property, particularly in the foundation, basement, attic, roof, drainage or mechanical systems. Almost all Buyers have extensive home inspections conducted that discover these defects and then Buyers may request significant repairs in order to agree to complete the purchase. Once this occurs, many Buyers demand excessive repairs or create unrealistic expectations about how repairs are conducted and by whom, leading to greater expense and delay, as well as frustration. Sometimes the repairs needed, even if the Seller will make them, discourage a Buyer from completing the purchase. By getting most defects discovered and repairs done in advance, Sellers can substantially avoid these issues. Although the Buyer will still have an inspection and some additional defects are usually discovered by a different inspector, they are usually minor and take little time or expense to correct. c) It is easier to determine how much time you will need to Close. The 45 days needed for Closing only works when there will be no significant issues or extensive repairs required from Seller after the Buyer’s typical 21-day Due Diligence Period. Only 8 days has been anticipated for that process after Buyer’s Due Diligence in our timeline. The discovery by Buyers of the need for lengthy or extensive repairs by Sellers can lead to delays in Closing when not adequately anticipated at the time of making the contract. This can lead to the need for an agreed delay in Closing or a possible breach of contract by Seller. If extensive repairs are anticipated, but not performed in pre-marketing, then additional time should be added to the timeline provided. Usually, the additional cost of a pre-marketing inspection is offset by the lack of increased Seller mortgage interest accruing during a longer contract to close time. There is also significant value in avoiding the issues discussed above. d) You are likely to already be doing some work to stage and prepare your house for the market. We recommend the advantages of cleaning, de-cluttering and staging to prepare your house for sale. Sometimes this involves significant work, depending on your routine upkeep. Particularly in a “Buyer’s Market”, why not do all that might be necessary to correct significant defects while this is occurring, rather than doing it twice? 3. Better Sellers price their Property in accordance with current market conditions and can demonstrate their price will appraise. Although extreme “Seller’s Market” conditions motivate aggressive pricing, in most other markets, realistic pricing and your agent’s ability to demonstrate appropriate comparable sales that will ultimately determine the appraised value will be much more important, both to support your expectation of a significant Due Diligence Fee and to improve the reliability of the contract closing. Because the Due Diligence Fee is "non- refundable" except in the event Seller breaches the contract of sale, Buyers will be reluctant to
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pay a large Due Diligence Fee if they are concerned they will find significant, unacceptable defects in the Property or the Property will not appraise adequately to satisfy them or their lender. Realistic pricing and a well-documented CMA can be used to alleviate pricing concerns. 4. Better Sellers obtain a home warranty for themselves and for their Buyer. By obtaining the warranty at the time of listing, the Seller is protected under the warranty until closing for the cost of repair of covered defects. We are told that homes sell faster and at a higher price when Sellers provide a home warranty for Buyers. Additionally, Buyers are reassured about future issues with the condition of covered systems, again reducing objections. If warranties are only obtained by Sellers for Buyers because they negotiate that at the time of contract, then Sellers would potentially bear the same cost at closing without any of the benefit for themselves. 5. Better Sellers carefully consider providing a fully completed and accurate Residential Property and Owners’ Association Disclosure Statement. This form is effectively mandatory, except for exempted transactions such as land sales, new home sales or sales by fiduciaries or lending institutions. Many Sellers fully complete the form, while some are inclined to make “No Representation” for a variety of reasons, including avoiding liability for misstatements. Sellers who are not sure of the answer to any question should make “No Representation”. Your listing agent can assist you in understanding the form, but should not complete this form, as the law requires the owner to complete it. The portion of the form regarding the Owners’ Association is best completed with the assistance of the Association or its management and there may be some fee for that. The information for this form should come from the Seller (not their listing agent) and Sellers who make representations should be careful to provide complete and correct information, as the Buyer will be reassured by reliable information and because the enforceability of the contract can be affected by any material misrepresentation about such matters. 6. Better Sellers provide the means for Buyers to obtain their title insurance at a discount. By making your owner’s title insurance policy (less than 15 years old) available to your listing agent, our affiliated Market Title Company will provide an attractive “savings certificate” for Buyers that will assure them of significant savings on the title insurance they must purchase on your Property. Additionally, this will put the listing agent in the best position to disclose any special aspects of title such as easements and similar features, eliminating surprises during the Due Diligence Period. 7. Better Sellers understand the need for an adequate, but realistic Earnest Money Deposit. Once under the Due Diligence Contract, the Earnest Money Deposit is the only compensation ("liquidated damages") available to Sellers if Buyers default on their obligation to purchase. In light of this, a very large amount might be desirable, but market customs and limits on Buyer finances must be considered. Also, if a substantial Due Diligence Fee (see #8) is paid, buyers may elect to pay little or no Earnest Money Deposit. Sellers should carefully evaluate the amount of the Earnest Money Deposit and the risks they are taking when electing to do business with any Buyer in terms of the likelihood the Buyer will be able to complete the purchase and the length of time needed for Due Diligence and until the Settlement and Closing. The Due Diligence Fee should also be considered in this process. The realistic financial capacity of the Buyer, as well as the occurrence of a “Buyer's Market” or a “Seller's Market”, will also have a significant impact on the amount of Earnest Money and/or Due Diligence Fee Sellers can realistically demand or expect.
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8. Better Sellers set realistic Due Diligence Fees . Due Diligence Fees are not required, but are often negotiated. This fee is intended to compensate the Seller for the time their property is effectively “off the market” when it goes under contract and for the Buyer’s unlimited termination right during the Due Diligence Period. Market conditions and the amount of time the Buyer requires for their Due Diligence Period should be significant factors in Seller's requirement of a fee and the amount. In a “Seller’s Market”, much more substantial Fees are often required and might be offered to compete with other Buyers. A lower fee creates less Buyer objection, as the fee is non-refundable to a Buyer who terminates the contract . A reasonable Due Diligence Period as might be typically allowed for inspections, loan approvals and the like, should not motivate a higher Due Diligence Fee. In addition to consideration of market conditions, when the time needed by a Buyer for their Due Diligence is longer, for example because their ability to obtain needed financing is unclear and will require a lengthy application process or because the Buyer must sell their own property in order to purchase from the Seller, then a substantially higher Due Diligence Fee becomes more reasonable and understandable. In the event a very significant Due Diligence Fee is paid, Sellers should pay attention to the amount of equity they have in the Property and their other expenses of sale, as it could become necessary to pay in some of the Fee to cover liens and expenses at Settlement. 9. Sellers should expect Buyers to conduct extensive inspections and they may find items of concern, even if the Seller has had their own inspection and made repairs. The Offer to Purchase and Contract provides that the Property is being sold in its current condition . Different home inspectors emphasize different aspects of the Property in their work, and it regularly occurs that a few different issues and concerns will arise from a second home inspection, but usually nothing major. The contract form does not require the Seller to make any repairs, but particularly in a “Buyer’s Market”, Buyers expect they will when requested, in order to motivate the buyer to complete the transaction. 10. Sellers should be clear that until the Due Diligence Period has elapsed, the Buyer may terminate the contract without any reason or for any reason and have the Earnest Money Deposit refunded to them. The Due Diligence style contract is much simpler and has far fewer conditions and deadlines for Buyers and Sellers to keep up with than previous forms. Sellers should understand that the Buyer's right of termination lasting until the end of the Due Diligence Period is balanced with there usually being no conditions to the Buyer’s performance once the Due Diligence Period has elapsed, even for something beyond the Buyer’s control. Buyers will typically confirm availability of any necessary financing and conduct appraisals, surveys, inspections and research about the Property during this time. A Due Diligence Fee can be negotiated and becomes the property of the Seller once under contract. Sellers should see the process as one in which the degree of reliance they put on completing the sale should be somewhat limited during the Due Diligence Period and then becomes greatly bolstered by the amount of Earnest Money a defaulting Buyer would forfeit once that time has passed. However, performance by the Buyer is never guaranteed. And this is also different where the FHA/VA Financing Addendum to the contract is used, as it creates an appraisal condition for Buyer that extends until the Closing. Otherwise, the time of greatest uncertainty can be reasonably shortened through the negotiated Due Diligence Period, usually to three to five weeks, after which the Seller is usually assured of at least receiving the Earnest Money (and keeping the Due Diligence Fee) if the Buyer fails to close the transaction.
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11. Reasonable access for the Buyer to the Property by appointment must be provided, even for several different inspectors or consultants. This access includes the obligation to have all existing utilities turned on to enable various inspections until the Closing. 12. The contract specifies the fixtures and other similar items that must convey with the Property. Any specified items that Seller does not want to convey must be excluded from the sale in the sales contract. Additionally, Sellers must “unpair” from their cell phone or other similar device to which they are “paired” all electronic devices that will convey with the Property and return them to factory default settings before Closing. 13. Reasonable delay in Settlement of up to 7 days without any compensation is allowed to Buyers or Sellers for whom it is not possible to complete Settlement at the time agreed, but who are acting in good faith to complete the Closing. Sellers (and Buyers) should be aware of this and make their moving and other plans with knowledge that delays do sometimes occur and are often out of the control of the other party. 14. The Property must be in the same or better condition at Closing as at the time of contract. Additionally, the Seller must remove all of their personal items and furnishings from the Property, as well as any garbage or debris prior to Closing. As a practical matter, this should be accomplished before Settlement for the usual final walk-though inspection by Buyers. 15. Sellers must deliver exclusive possession of the Property to the Buyer at Closing as defined in the Offer to Purchase unless an agreement otherwise has been executed. That includes delivery of all means of access to the Property, such as keys, codes (including security codes), garage door openers, applicable electronic devices, etc. At Coldwell Banker Howard Perry and Walston we believe that you being well-informed about the sales contract and being a Better Seller will make your selling experience smoother and less uncertain. We hope this information will be useful to you.
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OFFER TO PURCHASE AND CONTRACT [Consult “Guidelines” (Form 2G) for guidance in completing this form]
For valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Buyer offers to purchase and Seller upon acceptance agrees to sell and convey the Property on the terms and conditions of this Offer To Purchase and Contract and any addendum or modification made in accordance with its terms (together the “Contract”). 1. TERMS AND DEFINITIONS : The terms listed below shall have the respective meaning given them as set forth adjacent to each term. (a) “ Seller ”: ______________________________________________________________________________________________
(b) “ Buyer ”: ______________________________________________________________________________________________
(c) “ Property ”: The Property shall include all that real estate described below together with all appurtenances thereto including the improvements located thereon and the fixtures and personal property listed in Paragraphs 2 and 3 below.
The Property will will not include a manufactured (mobile) home(s). (If a manufactured home(s) is included, Buyer and Seller should include the Manufactured (Mobile) Home provision in the Additional Provisions Addendum (Standard Form 2A11-T) with this offer.) Street Address: ____________________________________________________________________________________________ City:____________________________________________________________________________ Zip:_____________________ County: ________________________________________________, North Carolina
NOTE: Governmental authority over taxes, zoning, school districts, utilities and mail delivery may differ from address shown.
Legal Description: (Complete ALL applicable) Plat Reference: Lot/Unit______, Block/Section _______, Subdivision/Condominium _____________________________________ _________________________________________, as shown on Plat Book/Slide _______________ at Page(s) ________________ The PIN/PID or other identification number of the Property is: _______________________________________________________ Other description: __________________________________________________________________________________________ Some or all of the Property may be described in Deed Book ___________________________ at Page ________________________ (d) “ Purchase Price ”: $ ____________________________ paid in U.S. Dollars upon the following terms: $ ____________________________ BY DUE DILIGENCE FEE made payable and delivered to Seller by the Effective Date by cash personal check official bank check wire transfer electronic transfer ( specify payment service : _____________________________) $ ____________________________
BY INITIAL EARNEST MONEY DEPOSIT made payable and delivered to Escrow Agent named in Paragraph 1(f) by cash personal check official bank check wire transfer, electronic transfer within five (5) days of the Effective Date of this Contract. BY (ADDITIONAL) EARNEST MONEY DEPOSIT made payable and delivered to Escrow Agent named in Paragraph 1(f) no later than 5 p.m. on __________________, TIME BEING OF THE ESSENCE by cash official bank check wire transfer electronic transfer BYASSUMPTION of the unpaid principal balance and all obligations of Seller on the existing loan(s) secured by a deed of trust on the Property in accordance with the attached Loan Assumption Addendum (Standard Form 2A6-T). BY SELLER FINANCING in accordance with the attached Seller Financing Addendum (Standard Form 2A5-T). BY BUILDING DEPOSIT in accordance with the attached New Construction Addendum (Standard Form 2A3-T). BALANCE of the Purchase Price in cash at Settlement (some or all of which may be paid with the proceeds of a new loan)
$ ____________________________
$ ____________________________
$ ____________________________
$ ____________________________
$ ____________________________
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This form jointly approved by: North Carolina Bar Association ’s Real Property Section North Carolina Association of REALTORS , Inc.
STANDARD FORM 2-T Revised 7/2022 © 7/2022
Buyer ’s initials ______ ______Seller ’s initials ______ ______
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