SALES ASSOCIATE INSTRUCTION PAGE

Transcription

1 SALES ASSOCIATE INSTRUCTION PAGE (Detach prior to SSP presentation. Required SSP Training and Certification is located on e-campus.) Follow these procedures for the Sellers Security Plan: 1 2 Verify Property Qualifications by reviewing the Buyout Assessment page. In addition, the house... Must be a single-family primary residence. Condominiums/townhouses qualify. Must have a minimum appraised value of $50,000. Maximum appraised value is based upon local statistics. A property valued in the top 20% of sales per prior 12 month MLS data for town, city or zip code, or exceeding $750,000 does not qualify. Cannot be a mobile home, co-operative, multi-family or investment property; or have an abandoned underground storage tank on the site. The house can be vacant, but must be located in your broker s primary marketplace. Verify Seller Qualifications. Seller must... Have at least 20% gross equity in the property or available funds needed for closing. Agree to a 180 day Exclusive Right to Sell Listing Agreement. Initial list price not to exceed any prior list price. Close on a home purchased through an ERA designated broker by the 180th day. (Exception: Military service member moving into base housing.) Agree to implement the Five-Point Marketing Plan. 3 Prepare and send these documents to ERA Franchise Systems LLC Comparative Market Analysis. Copy of Property Disclosure Statement. Copy of 180 Day From Application Exclusive Right to Sell Listing Agreement. Printout of ERA Referral information page and Referral number. SSP Application and Appraisal Authorization. SSP Transmittal Letter and Broker Agreement. SSP Sales Associate Questionnaire. Buyout Assessment (back of this page) and Move-In Condition Form. Confirmation of ERA Buyer Protection Plan. Maximum Market Value and Absorption Rate Analysis (see last page). To obtain an approved appraiser list, send an to sspappraisers@fnf.com Please include city, state & zip code in your . ERA Franchise Systems LLC Attn: SSP Department 1 Campus Drive, Parsippany, NJ Phone: (800) Fax: (800)

2 BUYOUT ASSESSMENT Any one of the following items may disqualify the property from the program. Please call the SSP Department if further assistance is needed. Final determination will be made after review of the appraisal. INCURABLE PROPERTY RELATED PROBLEMS MARKET RELATED PROBLEMS YES NO YES NO 1. Location concerns * 1. Lack of good comparable sales (busy road, high tension wires, etc.) 2. Competition with new construction 2. Lack of curb appeal 3. Supply and demand ratios 3. Structural defects/eifs * not in balance 4. Incomplete construction 4. Market time exceeding 180 days 5. Non-functional or atypical * 5. Prior listing history floor plan 6. Local economy dominated by 6. Costly improvements adding one employer or industry little or no value 7. Unemployment / local economy 7. Non-conforming style * concerns / foreclosures 8. Non-conforming services 8. Waterfront / resort area 9. Easements or restrictions 9. Absorption ratios exceeding 9 months * (Calculation Formula on last page) 10. Excess acreage 11. Rural location Distance between office and subject property: bedroom /manufactured homes miles (Property must be located within your broker s primary marketplace) 13. Extreme design or style 14. Underground storage tank 15. Steep or shared driveway 16. Staircases (steep, narrow, spiral, too many) Per MLS statistics for the town, city, or zip code, were at least 20% of sales during the past 12 months selling equal to or above subject s anticipated sales price? (Calculation Formula on last page) Yes No* *Properties do not qualify. Please remember that in the event of any net losses incurred by ERA Franchise Systems LLC, the listing office has agreed to pay to ERA Franchise Systems LLC an amount equal to the sum of any net loss, up to 5% of the ERA offer.

3 We Will Sell Your House, Or ERA Will Buy It! Only ERA Real Estate has the Sellers Security Plan.

4 BENEFITS OF USING THE ERA SELLERS SECURITY PLAN Guaranteed Sale & Closing Date You will still have 180 days to receive a higher price than the ERA offer. If ERA Franchise Systems LLC later sells your house for a price higher than the ERA offer amount, 100% of the net profit is returned to you!* If the house is sold for less than what ERA paid you, ERA assumes all losses. Increased Buying Power The ERA offer eliminates the uncertainty of contingency offers. You are in a better negotiating position than other buyers who may still have to sell a home. You have the flexibility to make a move when you want! Increase The Number Of Buyers For Your Home Whether or not you make application now for the plan, by listing with your ERA Broker, prospective buyers can often take advantage of this program in order to sell their home to buy yours! Most other real estate companies can only sell your house to a cash buyer or a homeowner whose current house is sold and ready to close. Your ERA Broker has access to those buyers and more! There are potential buyers who own a house who would like to buy yours but can t because they need to sell their current house first. By listing with your local ERA Broker this program enables them to turn these prospective buyers into qualified buyers for your home. More potential buyers, more potential for a higher sales price. *After deducting holding expenses

5 THE FIVE-POINT MARKETING PLAN Our goal is the same as yours to sell your house as quickly as possible for the best possible price. By agreeing to utilize the SSP Five-Point Marketing Plan, you can help make that happen. Here are the five qualifying requirements: 1 The house must be in move-in condition. 2 A home inspection must be completed and the required repairs made. 3 The property must be pre-qualified for financing through approved SSP vendors. 4 The home must be covered by an ERA Buyer Protection Plan. 5 Strategic pricing and marketing strategies must be implemented. List price no more than 5% above appraised value Lockbox ease of showing Yard sign Even if your house does not receive an offer through the Sellers Security Plan, by implementing this Five-Point Marketing Plan you will help maximize the marketability and sales potential of your house!

6 COMMONLY ASKED QUESTIONS What will ERA Franchise Systems LLC offer for my house? If your home qualifies for the plan, there will be one independent appraisal done by an appraiser selected by you from a list provided by ERA Franchise Systems LLC. The ERA offer will be 90% of the appraised value. What will I be required to do? Agree to implement the Five-Point Marketing Plan. List your house with an ERA Broker for at least 180 days from application, not to exceed any prior list price. Buy another house through a designated ERA Broker. (Not required for military service member moving into base housing.) Am I required to buy a new home listed with an ERA Broker? No. You are only required to purchase your next home through a broker designated by ERA Franchise Systems LLC and close on the property during the 180 day SSP period. Is my house still on the market even if I accept the ERA offer? Yes. That s the beautiful part of the plan. We give you maximum market exposure for you to sell your house at the best price. Am I required to submit an application immediately upon listing my house with ERA? No, one of the benefits of listing with ERA is this program remains an option for you to use at a later date. Also keep in mind that by listing with ERA, this program can be used by a prospective buyer who needs to sell their current home to buy yours!

7 ABOUT THE PROGRAM What expenses will I have? Your cost for participation in the SSP will include the same expenses due in any other home sale, including the sales commission and other closing costs customary in your market area. In addition, other expenses include: An independent appraisal and home inspection. This is to determine if ERA Franchise Systems LLC can provide an offer to you. You will be required to pay the cost of title commitment, survey, home warranty, wood boring insect certification, well and septic test, pool and any environmental inspections (if requested) prior to closing with ERA Franchise Systems LLC. Why is the cost of the appraisal required by the SSP Department more expensive than typical appraisals? Like most other corporate buyout programs, a more lengthy analysis is utilized. Unlike a bank or refinance appraisal where only sales are scrutinized, the guidelines of the buyout appraisal also require the appraiser to measure the impact, if any, of current listings, new construction, REO s and market trends. A third party is employed to provide the approved appraiser list and monitor performance. ERA does not receive any part of the fee.

8 SELLERS SECURITY PLAN TIME LINE Encourage your seller to implement the Five-Point Marketing Plan as soon as possible to maximize impact. Day 1 List your house with an ERA Broker for 180 days from completed application date, not to exceed any prior list price. Complete SSP Application. Implement ERA Buyer Protection Plan. Install lockbox and yard sign. Week 1 Week 3 Paperwork received by SSP Department. SSP Department orders appraisal and home inspection at seller s sole expense. Appraisal and Home Inspection received. Appraisal sent to an approved ERA mortgage company by SSP Department for property to be pre-approved for financing. Day Day 75 Offer made, or notification of no offer. Offer accepted Agree to close on a new home purchased through a broker designated by ERA Franchise Systems LLC by the 180th day. Agree to implement the Five-Point Marketing Plan List price adjusts to no more than 5% above appraisal. Offer declined You have no further obligations under the terms of SSP. Second price adjustment. Price adjustments outlined in Real Estate Sale Contract to gradually adjust towards ERA offer price. Day 120 Third price adjustment. Day 150 Final price adjustment. Up to 180 days Day 180 House may sell to private buyer up to this time. The ERA Franchise Systems LLC Real Estate Sales Contract becomes null and void upon sale to private buyer. Your house is SOLD if you opt to close with ERA Franchise Systems LLC. After 180 days ERA Franchise Systems LLC resells your house 100% of any net profit returned to you! Any loss assumed by ERA Franchise Systems LLC.

9 SSP APPLICATION & APPRAISAL AUTHORIZATION Must be completed by Sales Associate. Date: Property Address: Street City State Zip Seller(s): type or print all name(s) found on title Eligibility Requirements Include: A. House must be a single-family primary residence. House cannot be rented at any time during the SSP process. B. House must have a minimum appraised value of $50,000. Maximum appraised value is based upon local statistics. Properties valued in the top 20% of sales per prior 12 month MLS data for town, city, or zip code, or exceeding $750,000 do not qualify. C. Mobile homes, co-operatives, multi-family and investment properties are not eligible. D. Seller must have at least 20% gross equity in property or available funds needed for closing. Seller must be current on all mortgage payments. E. No employee, family member, relative or independent contractor associated with Realogy, ERA Franchise Systems LLC or its franchises is eligible to participate. F. Seller must implement the Five-Point Marketing Plan. The five qualifying points of the plan include: 1. The house must be in move-in condition. 2. A home inspection must be conducted by an ERA approved inspector and all required repairs completed by seller. 3. The property must be pre-qualified for financing through an approved ERA mortgage company. 4. The home must be covered by an ERA Buyer Protection Plan. 5. Strategic pricing and marketing strategies required by the ERA SSP Department must be implemented. G. Written approval by ERA Franchise Systems LLC after review of the Application, appraisal, and home inspection. Seller s Authorizations: Seller s signature on reverse side confirms the following terms: A. Seller authorizes ERA to furnish the ERA SSP Department with all information (Member Broker) necessary to to process process this application. this application. B. Seller authorizes ERA Franchise Systems LLC, through the SSP Department, to order an appraisal from the company listed below and a home inspection on the referenced home. Seller will select an appraiser from a list of certified appraisers furnished on behalf of ERA Franchise Systems LLC. The cost of the appraisal and home inspection will be paid by the Seller. Seller acknowledges and agrees that their credit card will be charged by the provider of the appraisal and home inspection. In the event of inspection cancellation or a no-show, a fee may be charged. The home inspection company is selected by ERA Franchise Systems LLC. ERA Franchise Systems LLC will have authority to reject homes in its sole discretion. If ERA Franchise Systems LLC tenders an offer, the offer will be 90% of the appraised value. ERA Franchise Systems LLC may order a second appraisal at its sole expense. This appraisal is for informational purposes only. Seller s choice of appraiser (Name and ID #): Alternate choice (Name and ID #): Credit Card (circle one) VISA Mastercard American Express Card # Exp. Date 3 Digit Security Code Cardholder Name Home Telephone # Billing Address (If different from above) The SSP Department must order the appraisal and home inspection. SSP Department Copy

10 Seller agrees to the following: A. To enter into a contract to purchase a primary residence, through an ERA Broker, or broker designated by ERA Franchise Systems LLC, and to close on the new home within 180 days of the date the ERA SSP Department accepts the Application. B. To implement the Five-Point Marketing Plan. C. To execute an Exclusive Right to Sell Listing Agreement effective for a period of 180 days from the date of this Application with the ERA Broker named in this Application. List price will not exceed any prior list price. D. To maintain the Property, utilities, mortgage payments and homeowner s insurance until time of closing of title with ERA Franchise Systems LLC. E. To pay for and provide a new survey and a good and marketable title policy from a title company designated by ERA Franchise Systems LLC. F. In addition to the home inspection required prior to the ERA offer, Seller to provide prior to the ERA closing at Seller s sole cost and expense: 1. Clear Radon Analysis Report. 2. Clear Septic and Well Report. 3. Clear Wood Boring Insect Certification. 4. Certificate of Occupancy on Seller s Property (where applicable). 5. An environmental and pool inspection if required by ERA Franchise Systems LLC. 6. Updated Survey. Seller understands and acknowledges the following: Seller acknowledges that this document is an Application and Appraisal Authorization. THIS APPLICATION IS NOT AN OFFER TO PURCHASE SELLER S PROPERTY. Sellers who have closed on another property, even if purchased through ERA, prior to the receipt of the application by the SSP Department do not qualify. In the event that ERA Franchise Systems LLC, in its sole discretion, makes an offer to purchase, Seller further acknowledges that the complete terms and conditions of any ERA Franchise Systems LLC offer under the Sellers Security Plan will be set forth in a written Real Estate Sale Contract. All documents required by the ERA Franchise Systems LLC. Real Estate Sales Contract must be received 10 business days prior to the closing date. A sample Real Estate Sale Contract is available upon request. In the event ERA Franchise Systems LLC purchases the Property, or the Property sells to a third party, the sales commission is due. Upon resale of the Property, any profit to ERA Franchise Systems LLC on the sale will be remitted to Seller, less expenses and costs specified in the Real Estate Contract. If a third party offer is accepted by Seller, the participating ERA Broker will notify ERA Franchise Systems LLC immediately and ERA Franchise Systems LLC will have no further obligation to make an offer or complete a purchase. Seller acknowledges that ERA Franchise Systems LLC is under no obligation whatsoever to make an offer to purchase and Seller agrees that no home purchase commitment should be based on the Sellers Security Plan unless and until Seller receives and accepts a signed, written Real Estate Sale Contract from ERA Franchise Systems LLC. Seller and Seller s Broker, by signing below, confirm that they have read, understand and accept the terms of the SSP Program. I/We have read and received a copy of this Application, understand the benefits and limitations of the SSP Program, and agree to comply with its terms and conditions. I/We understand that this Application will not be acted upon until accepted by the ERA SSP Department. Seller Signature: Seller Signature: ERA Member-Broker Office: Office Phone No.: ERA Principal Broker Signature: Date Date ERA ID No. Fax No. Date There are two copies of this form. Each copy must be signed individually. The SSP Department must order the appraisal and home inspection. Each ERA Office Independently Owned and Operated.

11 SSP APPLICATION & APPRAISAL AUTHORIZATION Must be completed by Sales Associate. Date: Property Address: Street City State Zip Seller(s): type or print all name(s) found on title Eligibility Requirements Include: A. House must be a single-family primary residence. House cannot be rented at any time during the SSP process. B. House must have a minimum appraised value of $50,000. Maximum appraised value is based upon local statistics. Properties valued in the top 20% of sales per prior 12 month MLS data for town, city, or zip code, or exceeding $750,000 do not qualify. C. Mobile homes, co-operatives, multi-family and investment properties are not eligible. D. Seller must have at least 20% gross equity in property or available funds needed for closing. Seller must be current on all mortgage payments. E. No employee, family member, relative or independent contractor associated with Realogy, ERA Franchise Systems LLC or its franchises is eligible to participate. F. Seller must implement the Five-Point Marketing Plan. The five qualifying points of the plan include: 1. The house must be in move-in condition. 2. A home inspection must be conducted by an ERA approved inspector and all required repairs completed by seller. 3. The property must be pre-qualified for financing through an approved ERA mortgage company. 4. The home must be covered by an ERA Buyer Protection Plan. 5. Strategic pricing and marketing strategies required by the ERA SSP Department must be implemented. G. Written approval by ERA Franchise Systems LLC after review of the Application, appraisal, and home inspection. Seller s Authorizations: Seller s signature on reverse side confirms the following terms: A. Seller authorizes ERA to furnish the ERA SSP Department with all information (Member Broker) necessary to to process process this application. this application. B. Seller authorizes ERA Franchise Systems LLC, through the SSP Department, to order an appraisal from the company listed below and a home inspection on the referenced home. Seller will select an appraiser from a list of certified appraisers furnished on behalf of ERA Franchise Systems LLC. The cost of the appraisal and home inspection will be paid by the Seller. Seller acknowledges and agrees that their credit card will be charged by the provider of the appraisal and home inspection. In the event of inspection cancellation or a no-show, a fee may be charged. The home inspection company is selected by ERA Franchise Systems LLC. ERA Franchise Systems LLC will have authority to reject homes in its sole discretion. If ERA Franchise Systems LLC tenders an offer, the offer will be 90% of the appraised value. ERA Franchise Systems LLC may order a second appraisal at its sole expense. This appraisal is for informational purposes only. Seller s choice of appraiser (Name and ID #): Alternate choice (Name and ID #): Credit Card (circle one) VISA Mastercard American Express Card # Exp. Date 3 Digit Security Code Cardholder Name Home Telephone # Billing Address (If different from above) The SSP Department must order the appraisal and home inspection. Seller s Copy

12 Seller agrees to the following: A. To enter into a contract to purchase a primary residence, through an ERA Broker, or broker designated by ERA Franchise Systems LLC, and to close on the new home within 180 days of the date the ERA SSP Department accepts the Application. B. To implement the Five-Point Marketing Plan. C. To execute an Exclusive Right to Sell Listing Agreement effective for a period of 180 days from the date of this Application with the ERA Broker named in this Application. List price will not exceed any prior list price. D. To maintain the Property, utilities, mortgage payments and homeowner s insurance until time of closing of title with ERA Franchise Systems LLC. E. To pay for and provide a new survey and a good and marketable title policy from a title company designated by ERA Franchise Systems LLC. F. In addition to the home inspection required prior to the ERA offer, Seller to provide prior to the ERA closing at Seller s sole cost and expense: 1. Clear Radon Analysis Report. 2. Clear Septic and Well Report. 3. Clear Wood Boring Insect Certification. 4. Certificate of Occupancy on Seller s Property (where applicable). 5. An environmental and pool inspection if required by ERA Franchise Systems LLC. 6. Updated Survey. Seller understands and acknowledges the following: Seller acknowledges that this document is an Application and Appraisal Authorization. THIS APPLICATION IS NOT AN OFFER TO PURCHASE SELLER S PROPERTY. Sellers who have closed on another property, even if purchased through ERA, prior to the receipt of the application by the SSP Department do not qualify. In the event that ERA Franchise Systems LLC, in its sole discretion, makes an offer to purchase, Seller further acknowledges that the complete terms and conditions of any ERA Franchise Systems LLC offer under the Sellers Security Plan will be set forth in a written Real Estate Sale Contract. All documents required by the ERA Franchise Systems LLC. Real Estate Sales Contract must be received 10 business days prior to the closing date. A sample Real Estate Sale Contract is available upon request. In the event ERA Franchise Systems LLC purchases the Property, or the Property sells to a third party, the sales commission is due. Upon resale of the Property, any profit to ERA Franchise Systems LLC on the sale will be remitted to Seller, less expenses and costs specified in the Real Estate Contract. If a third party offer is accepted by Seller, the participating ERA Broker will notify ERA Franchise Systems LLC immediately and ERA Franchise Systems LLC will have no further obligation to make an offer or complete a purchase. Seller acknowledges that ERA Franchise Systems, LLC is under no obligation whatsoever to make an offer to purchase and Seller agrees that no home purchase commitment should be based on the Sellers Security Plan unless and until Seller receives and accepts a signed, written Real Estate Sale Contract from ERA Franchise Systems LLC. Seller and Seller s Broker, by signing below, confirm that they have read, understand and accept the terms of the SSP Program. I/We have read and received a copy of this Application, understand the benefits and limitations of the SSP Program, and agree to comply with its terms and conditions. I/We understand that this Application will not be acted upon until accepted by the ERA SSP Department. Seller Signature: Seller Signature: ERA Member-Broker Office: Office Phone No.: ERA Principal Broker Signature: Date Date ERA ID No. Fax No. Date There are two copies of this form. Each copy must be signed individually. The SSP Department must order the appraisal and home inspection. Each ERA Office Independently Owned and Operated.

13 SSP SALES ASSOCIATE QUESTIONNAIRE Seller(s) Name(s): Property Address: Current List Price: Vacant/Occupied: Mortgage Balance: Taxes: HOA Monthly Dues: Previous Listing History (Listing offices, dates & prices): Style of House: Age: Length of Ownership: Total # of Rooms: # of Bedrooms: # of Baths: Garage: Type of Heating System (include fuel type): Lot Size: Zoning: Pool/Spa: Septic System/City Sewer: Well/Water by Utility: Property & Market Description: Based upon a day marketing time: Recommended List Price Anticipated Sales Price Features which might adversely affect salability of property: Proposed/Pending Assessments: Negative location factors: Is there any competing new construction within selling area? (describe) What is the average days on market and sale price for this community? Are there any layoffs, environmental issues, or other challenges per the Buyout Assessment form that may impact the future marketing of this property? If yes, please fully describe.

14 MOVE-IN CONDITION Two Criteria: 1. All items listed below must be clean and in marketable condition. 2. Market appeal of these items must meet or surpass typical buyer expectations for area and price range. CLEAN/SALEABLE APPEALING Yes No Yes No Interior walls Exterior walls Doors Trim/Moldings Ceilings Window/Window treatments Floor coverings Light fixtures Range/Hood/Oven Sinks/Faucets/Vanities Cabinets Countertops Tub/Showers Wall tile Commode/Seat Mirrors Pool/Spa Landscaping Other If any items are checked NO please note room, item, improvements needed, and enhancement completion date. Room Item Improvement Needed Enhancement Date

15 SSP TRANSMITTAL LETTER & BROKER AGREEMENT Seller(s): Address: IN ORDER FOR PROCESSING OF APPLICATION, THE FOLLOWING ITEMS MUST BE INCLUDED: Comparative Market Analysis Confirmation of ERA Buyer Protection Plan Copy of Property Disclosure Statement (Not Agency Disclosure) Copy of 180 Day From Application Exclusive Right to Sell Listing Agreement Printout of ERA Referral Network information page and Referral number If local move, provide name of agent SSP Application and Appraisal Authorization (2 pages) SSP Sales Associate Questionnaire Buyout Assessment and Move-In Condition Forms Maximum Market Value and Absorption Rate Analysis (see last page) In the event the Property cannot be sold during the listing period and ERA Franchise Systems LLC purchases it, I agree to assign to ERA Franchise Systems LLC any rights to any commission on the Property. The commission will be shown on the closing statement and deducted from the price ERA Franchise Systems LLC will pay for the purchase of the home. In the event of any net losses incurred by ERA Franchise Systems LLC, I agree to pay to ERA Franchise Systems LLC an amount equal to the sum of any net loss, up to 5% of the ERA offer. Net losses shall include any loss on sale, acquisition and carrying costs. ERA Principal Broker Signature: Date: ERA Sales Associate Signature: Date: Please attach business card and call the SSP Department if within five business days you have not been contacted. Fax or Mail To: ERA/SSP Department 1 Campus Drive Parsippany, NJ Phone: (800) Fax: (800) Each ERA Office Independently Owned and Operated.

16 Sellers Security Plan Maximum Market Value Analysis Employ the following calculations to determine maximum market values. 1. Print all sales from the least to most expensive for the prior twelve months in subject s zip code or MLS area, whichever is geographically smaller. Be sure to remove townhouses and condominiums from your search if the property is a single family house and vice versa. Do not modify your search to reflect the number of bedrooms, baths, pool, etc. 2. From the most expensive sale count down 20% (Example: 200 sales times.20 = 40, count down 40 sales). That sale is your maximum market value not to exceed $750,000. Sellers Security Plan Absorption Rate Analysis Employ the following calculations to determine the current monthy supply of inventory competing with a perspective applicant s house: 1. Ascertain the number of houses sold ten percent above to ten percent below the anticipated sales price of the property during the prior six months in subject s zip code or MLS area, whichever is geographically smaller. Be sure to remove townhouses and condominiums from your search if the property is a single family house and vice versa. Do not modify your search to reflect the number of bedrooms. baths, pool, etc. Divide the number of sales by six to calculate the number of houses selling monthly. 2. Ascertain the number of available listings ten percent above to ten percent below the anticipated sales price of the property in the same geographical area as described above. 3. Divide the number of houses selling monthly into the number of listings which will determine the current monthly supply of inventory. To qualify supply cannot exceed nine months ERA Franchise Systems LLC. All Rights Reserved. ERA is a registered trademark licensed to ERA Franchise Systems LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each ERA Office is Independently Owned and Operated.