BUYER HANDBOOK. my purpose. I provide high-end service for the Nashville area home buyer.

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1 BUYER HANDBOOK W E N DY M O N DAY R E A LT O R my purpse I prvide high-end service fr the Nashville area hme buyer. High-end desn t mean the mst expensive. It means delivering the best pssible service based n yur wishes and budget. Every buyer deserves that. Yu can rely n my expertise, training and experience tgether with the supprt f PARKS, the #1 real estate cmpany in Nashville with ver $2 Billin in annual sales and 11 area ffices.

2 cntent 2 THE BUYING PROCESS 3 PRE-APPROVAL 4 HOME SEARCH 5 THE CONTRACT 6 NEGOTIATION 7 INSPECTION 8 APPRAISAL 9 CLOSING CHECKLIST

3 THE BUYING PROCESS 2 prepare PRE-APPROVAL BUYER AGENCY AGREEMENT HOME SEARCH cntract WRITE OFFER NEGOTIATE SATISFY CONTINGENCIES clse SIGN LENDER DISCLOSURE WIRE FUNDS SIGN DOCUMENTS - YOU RE CLOSED!

4 PRE-APPROVAL 3 Sellers need t knw yu are financially ready t buy. A pre-apprval letter must accmpany any ffer yu make. PRE-APPROVAL IS... a letter frm an accredited surce indicating that yu are eligible fr a lan up t a certain amunt. Usually takes less than 24 hurs, yu receive a letter indicating yu ve been pre-apprved. Yu prvide sme r all f the fllwing: YO U R S O C I A L SECURITY # FOR A CREDIT CHECK LAST YEAR S TAX RETURNS LAST YEAR S W2 2 MOST RECENT PAY STUBS 2 MOST RECENT BANK STATEMENTS A PRE-APPROVAL IS NOT... a lan applicatin r guarantee f lan apprval.

5 HOME SEARCH 4 YOU ME EVALUATE HOMES TO SEE HOW THEY FULFILL YOUR WANTS & NEEDS EVALUATE HOMES FOR VALUE COMPARED TO OTHERS AROUND IT Des it have the right amunt f space fr my lifestyle? Is the lcatin right fr me? Is the price right fr my budget? Des price per square ft makes sense? Is the lcatin highly sught after? Is the price apprpriate fr the cnditin f the hme? 4?s t ask in tday s market HOW FAST ARE HOMES SELLING I N O U R LO C A L MARKET? WHAT KIND OF HOMES SELL THE FASTEST? VS. AM I LIKELY TO FACE A MULTIPLE OFFER SITUATION? WHAT S THE L I ST-TO - S A L E S P R I C E RATIO IN THE AREA I WANT TO BUY?

6 THE CONTRACT 5 We use the standard Tennessee Assciatin f Realtrs (TAR) cntract and frms fr yur transactin. There are ver 100 frms available t use during a transactin depending n the nature and cmplexity f the deal, belw are frms used in every transactin. PURCHASE & SALE AGREEMENT A 10 page dcument that is the heart f the cntract. Outlines the terms f the ffer including price, timelines, cntingecies, etc. VENDOR LIST Furnishing referrals fr Vendrs is dne nly as a curtesy and des nt cnstitute any warranty r representatin f the vendr. BUYER REPRESENTATION AGREEMENT Outlines my duties t yu as yur agent. It des nt bligate yu t pay fr my services. The cmmissin n the hme yu purchase will be paid by the seller. COUNTER OFFER Cunters t the riginal ffer will be made n this frm. All terms included in the riginal ffer remain the same except fr changes specified n this frm. CO N F I RMATION OF AGENCY Establishes the representatin fr bth the buyer and seller in the transactin. D I S C L AIMER NOTICE States that the real estate brkers are nt hme inspectrs, termite inspectrs, etc. Recmmends hiring independent, qualified prfessinals fr inspectins. DISCLOSURE OF AFFILIATED BUSINESSES PARKS wns ther real estate related businesses and whether r nt yu chse t use their services we disclse this infrmatin t yu. PROPERTY CONDITION DISCLOSURE Sellers furnish a Prperty Cnditin Disclsure unless the prperty transfer is exempt. The seller cmpletes the frm t the best f their ability. This dcument des nt take the place f a hme inspectin by a licensed inspectr. Yu sign a cpy t acknwledge receipt. REPAIR/REPLACE AMENDMENT Once the hme is inspected, repairs may be requested by the buyer. Once thse repairs have been negtiated and agreed upn, this frm is cmpleted and signed and becmes part f the cntract. GET A HOME INSPECTION AND SURVEY Outlines the varius inspectins available t the buyer as part f yur due diligence and what t expect frm them. It is yur respnsibility t be an infrmed buyer. NOTIFICATION FORM Prvides fficial ntice frm ne party in the transactin t the ther in writing in accrdance with the prvisins f the Purchase and Sale Agreement.

7 NEGOTIATION 6 Nt everyne negtiates fr a living. But I d! I am here t serve as yur negtiatin expert. There are many negtiatin pints in a cntract. The mst bvius is price, but ther factrs cme int play. 3 THINGS TO REMEMBER: TERMS ARE AS IMPORTANT AS PRICE. Des yur clsing date line up with the sellers needs? Are yu well qualified with a reputable lender? Can yu mve thrugh the cntingencies in a timely manner? D yu have the cash fr yu wn clsing csts r d yu need t negtiate thse with the seller? TIME IS OF THE ESSENCE. Respnd t cunterffers in a timely manner. Sellers are lking at hw yu will be t wrk with during the cntract t clse prcess. KNOW WHAT YOU RE DEALING WITH. The side with the mst infrmatin will d better. We d the backgrund research t help yu craft an infrmed ffer and cunter ffer. the flw f negtatins MAKE AN OFFER ON THE TAR PURCHASE & SALE AGREEMENT SELLER ACCEPTS OR COUNTERS USING THE TAR COUNTER FORM BUYER + SELLER AGREE AND SIGN. WE HAVE A BINDING AGREEMENT THE BINDING AGREEMENT DATE (BAD) SETS THE TIMELINE FOR DEADLINES IN THE CONTRACT YOU SUBMIT AN EARNEST MONEY CHECK. IT WILL BE CASHED. IT IS APPLIED TO YOUR COSTS AT CLOSING.

8 INSPECTION 7 The inspectin is yur time t evaluate the hme withut the influence f anyne wh benefits financially frm the purchase. Yur licensed hme inspectr is the unbiased expert n the cnditin f the prperty. 1. Hire a licensed hme inspectr. Meet the inspectr at the end f the inspectin if pssible t review and discuss the inspectin while in the hme. 2. Discuss the inspectin results with the inspectr. This is a critical step. As a licensed REALTOR, I d NOT interpret hme inspectin reprts. Dn t be afraid t ask yur inspectr fr clarificatin r further infrmatin. 3. Get the inspectr s advice n what t request t be repaired. Yu create a list f repair request items and the hme inspectr s input is valuable. 4. Prvide us with a list f items t ask the seller t repair. 5. We prepare a Repair Prpsal and submit it t the seller s agent. 6. The Seller either a) accepts, b) cunters, c) rejects and terminates the cntract. 7. Once yu and the seller have agreed upn a list f repairs, we transfer the list t a Repair Amendment and bth parties sign. an inspectin IS... an inspectin IS NOT... Refer t lines 7-10 f the Tennessee Assciatin f REALTORS (TAR) Get A Hme Inspectin frm. Refer t lines f the Tennessee Assciatin f REALTORS (TAR) Purchase & Sale Agreement. Evaluate the physical cnditin: structure, cnstructin and mechanical systems. Identify items that need t be repaired r replaced. Estimate the remaining useful life f majr systems, equipment, structure and finishes. Buyer waives any bjectins t items f a purely csmetic nature (eg decrative, clr r finish items) disclsed by inspectin. Buyer has n right t require repairs r alteratins purely t meet current building cdes, unless required t d s by gvernmental authrities.

9 APPRAISAL 8 Yur lender must knw whether the huse yu are interested in buying is wrth the amunt yu are willing t spend. They are laning yu the mney, s if yu default they are stuck with the huse. an appraisal IS... A written estimate f a prperty's market value cmpleted by an independent third-party appraiser. The value is based upn a market analysis f recent sales prices fr similar prperties in the area, and the prperty's physical cnditin. yur lan bligatins WITHIN 3 DAYS OF THE BAD YOU MUST: WITHIN 14 DAYS YOU MUST: prvide seller with name and cntact inf fr yur lender make applicatn fr the lan and pay fr the credit reprt. request that the appraisal be rdered and pay fr it secure hme wners insurance ntify lender f intent t prceed and have available funds t clse per lan estimate We must ntify the seller f the lender s name and cntact inf and cnfirmatin f these actins in a timely manner r be in default f the cntact.

10 CLOSING CHECKLIST 9 Prvide additinal dcs requested by lender. Arrange in advance fr utilities t be turned n in yur name n day f clsing. Review & Sign Clsing Disclse 3 days befre clsing. Schedule wire transfer fr clsing funds. D final walk-thrugh. Sign dcuments with the Title Cmpany. YOU BOUGHT A HOUSE! ur partners in clsing LENDER Prepare lan dcuments and submits t underwriting. Be prepared t prvide lender with any additinal required financial dcuments. TITLE COMPANY Prepare & distribute the clsing disclsure. This is the accunting f transactin. Yu must sign t verify that yu have received a cpy 3 days prir t clsing. Prvide wire instructins fr yur clsing csts and dwnpayment. Order title insurance. Title insurance is required by lenders and prtects against title defects. Prepare clsing dcuments and walks yu thrugh signing them.