TONI PATILLO. Buyer s Consultation. Homes, Investments, Education & ASSOCIATES

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1 TONI PATILLO Buyer s Consultation

2 Introducing Keller Williams Realty Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at ( Industry leading training and education Most Innovative Real Estate Company Inman News "Highest Satisfaction For Home Buyers Among National Full Service Real Estate Firms, Two Years in a Row! - JD Powers Keller Williams is committed to training & education. This translates to: better fiduciary & legal representation and counsel for our clients greater return on each transaction Impeccable customer service to meet and exceed our clients expectations projected by year-end by National Association of Realtors

3 Market Share by Real Estate Office

4 Our Belief System Win-Win Integrity or no deal do the right thing Commitment Communication Creativity in all things seek first to understand ideas before results Customers Teamwork Trust always come first together everyone achieves more starts with honesty Success results through people

5 Toni Patillo Toni Patillo is always ranked at the top of her profession with over 20 years of experience negotiating, managing, marketing, selling and servicing real estate properties and transactions. - Licensed California Real Estate Broker - Certified Loan Modification Specialist, - Certified Short Sales Specialist - Certified REO Specialist As the Associate Broker of Record for Keller Williams Santa Monica market center, Toni Patillo oversees the negotiations and sales of over 165 sales agents. Her commitment to excellence, providing unparalleled personal service and consistent followthrough, combined with her superior market knowledge, have rewarded her with the respect and acknowledgement of her clients and peers as a true and successful professional. For the last eight years Toni has ranked in the top 3% of all Sales Professionals nationwide within the Prudential & Keller Williams Real Estate Network for her outstanding performance. From Intellectual Property to Real Property, Toni s journey as a highly driven entertainment executive, to owner of a holistic day spa, to entrepreneurial business consultant, to Real Estate Broker proves this woman is on a mission. Specializing in entertainment management, finance and business affairs, Patillo has built businesses for entertainment legends Dick Clark, Berry Gordy (Motown Productions), Suzanne de Passe (de Passe Entertainment) and Beverly Sassoon. Toni is admired and respected for her skills and talent in business building and empowering individuals and companies to reach beyond themselves to achieve extraordinary goals. With her extensive financial, administrative and networking background, combined with her acute understanding of the entrepreneurial aesthetic, Patillo works with some of the most recognized names in the real estate, entertainment & sports industries today. Toni is a member in good standing of the Beverly Hills Board of Realtors, the Southland Regional Association of Realtors, the California Association of Realtors and, the National Association of Realtors.

6 And The Associates Karen Kopittke Licensed Assistant to Associate Broker of Record Jeff Chonis Realtor Associate Jimmi Weaver Transaction Coordinator Melinda Topete American Trust Escrow Escrow Officer Steve Hasani First Liberty Funding Corp. Mortgage Broker Jessica Soltan Fidelity National Title Title Representative

7 Why Toni Patillo & Associates? Your home is most likely the largest investment in your life! My ultimate objective is to make sure you have the best shot at protecting and maximizing your interests as it relates to that investment, especially during these current challenging times. The bank, your lender, has professional negotiators and representatives in place specifically to protect their interest throughout the life of your loan and you deserve and need a professional to represent you as well. Toni Patillo is a licensed California Real Estate Broker, Certified Loan Modification Specialist, Certified Short Sales Specialist and Certified REO Specialist with over 20 years of experience negotiating, managing, marketing, selling and servicing real estate properties and transactions. As the Broker of Record for a successful Westside market center, I oversee the negotiations and sales of over 165 sales agents. I am a communicator: I will consult with you regarding your real estate related financial objectives and hardships and create a comprehensive plan. I keep up to date on a daily basis with ever changing bank policies and government policies. I will give you feedback on all developments both market wise and transactional. I am an expert negotiator: I first offer a sensitive ear to both sides of a transaction and make sure both sides feel that they have been heard, then together we create a resolution. I know how to make the best presentation to the lender on your behalf. I am well versed on the current threshold formula that each bank is working with and know how willing they are to negotiate I will negotiate for better bank concessions to save you money. I am a problem solver, listener, a buffer and a source of calmness and reassurance: With my years of experience, up to the minute training and positive attitude, my forte is breaking down challenges and transforming them into manageable issues. Buying and selling property is as much an emotional experience as a financial one. Most of my clients have found that if they talk through their real estate related anxieties with me, their stress during the transaction feels more manageable.

8 Choosing A Good Agent Chemistry between buyers and agents is important. Take the time to meet agents that are good at their job and make you comfortable. The best way to winnow down your list of potential candidates is to ask friends for referrals. Then carefully screen the agents by asking specific questions about their areas of expertise and experience, especially during the previous year. What You Need To Know Request a list of the agent's transactions over the past year. Does the agent work mostly with buyers or sellers? Get references and phone numbers of recent clients. What is the office like? How many years has the agent been in the business? Is the agent a salesperson or a broker? Is the agent available to work around my schedule? Ask if the agent has enough time to devote to your quest.

9 Working With A Buyer s Agent You talk to friends, look through ads, and peruse the Internet searching for that special relationship. Finally you meet someone compatible! Sound familiar? It may not be that special someone, but having the right real estate agent can make your life a lot easier. As in all good relationships, honest communication, trust, and loyalty are essential in moving forward. (This means on both sides. So here are some tips on getting along with your new best friend: 1. Do some soul searching on the factors that are most important to you in your quest for living space 2. Get pre-approved with a reputable mortgage broker or lending institution. 3. Choose one Real Estate agent to work with. 4. Search the Internet and educate yourself about available properties. 5. Let the agent choose listings for you to see too. 6. Give as much lead time as possible for your agent to set up multiple appointments. 7. Be on time for appointments. 8. Sign contracts promptly when making an offer. 9. Attend home inspections personally unless it's truly unavoidable. 10. Work closely with your real estate team to make sure the transition happens smoothly.

10 How to Find A REO or Short Sale Buyer s Agent If you're a first-time home buyer, you will greatly benefit from hiring a buyer s agent who has experience selling REO and short sale listings. You deserve an agent who will make your interests a priority. In soft or falling real estate markets, many buyer's agents find the bulk of sales comprise bank-owned homes and short sales. If you can find a busy buyer's agent (not an agent who closes 3 or 4 deals a year), most likely this agent will represent a lot of REO and short sale buyers. Here are ways to find and REO / short sale buyer's agent: 1. Referral from Friends, Coworkers or Family to REO - Short Sale Agents 2. Talk to Agents at Open Houses 3. Call an Agent Friend and Ask for an REO - Short Sale Referral 4. Search for REO /Short Sale Agents Online 5. Sort MLS records by REO and Short Sale Agents

11 Frequently Asked Questions How will you tell me about the newest homes/condos available? The Multiple Listing Service website provides up -to -date information for every property on the market. I constantly check the New on Market list so I can be on the lookout for my clients. I will get you this information right away in the way that is most convenient for you, by phone and/or e - mail. Will you inform me of homes/condos from all real estate companies or only Keller Williams Realty? I will keep you informed of all listings. I want to help you find your dream home, which means I need to stay on top of every home that's available in the market. Can you help me find new construction homes/condos? Yes, I can work with most builders and get you the information you need to make a decision. On your first visit with the builder, I will accompany you. By using my services with a new construction home purchase, you will receive the services I offer, as well as those provided by the builder, at no additional cost. How does for sale by owner (FSBO) work? Homeowners trying to sell their home without agent representation are usually doing so in the hopes of saving the commission. If you see a FSBO and want the advantages of my services, let me contact the owner for you and make an appointment. Most times the homeowner will work with an agent, even though their home is not listed, since the agent is introducing a potential buyer to their property. Once my offer is accepted, what should I do? Celebrate and focus on moving into your new home! There will be a good deal of paperwork (escrow, loan, seller disclosures) to review and sign in the early stages of escrow. We will arrange for your physical inspection of the property in the first week. You will want to schedule your move, pack items, and notify businesses of your address change. I have provided you with a moving checklist to help you remember all the details. I will also give you a good faith estimate and HUD statement, which will indicate the amount you will need to close escrow.

12 No matter where you find homes that attract your attention In a local real estate magazine In the Los Angeles Times Via the Internet Other agents FOR SALE sign Other agents OPEN HOUSE From a friend A "For Sale by Owner" sign Other agents exclusive listing I can help you buy ANY of them! Most importantly, I can negotiate any offers for you. If you see a sign, an open house, or even hear about a property, call me first and I will provide you with all the information on that property and make all the necessary arrangements for viewing.

13 The Home Finding Process What we will do to help you through the home buying process... We will work with you to help you get pre -approved for a mortgage if need be. Sellers and their agents know that a pre -approved buyer is serious and prepared to close on a property quickly. Provide immediate access to any new listing that meets your search criteria. your specific home requirements to top producing agents in the area alerting them we have a qualified purchaser. Preview all new listings, Internet listings, Open Houses, and For Sale By Owners that suit your home requirements. Provide a comprehensive market evaluation of all properties you choose to view. Offer step -by -step communication of all processes leading to your transaction closing. Provide consultation and recommendations of your written offer to purchase, with terms approved by you. Negotiate the right price and terms for you.

14 Your Lifestyle Interview A home is about more than the number of bedrooms or bathrooms. It's about how you feel when you're in it. To really pinpoint the type of home you're looking for, consider the following questions: 1. What makes you comfortable in your current home? Is there anything in particular you'd like to duplicate? 2. What is your primary reason for searching for a new home? 3. Do you have children? What are their ages, interests and activities? 4. Do you entertain a lot? What areas of your home will you primarily use to entertain? 5. How long do you expect to live in the home? 6. Do you have any pets that stay in the house or outside? 7. Would you consider yourself to be more casual or formal? 8. When you imagine your dream home, what do you see? What images come to mind?

15 Your Home Wish List 1. House style 2. # of Bedrooms 3. # of Bathrooms 4. Living room 5. Dining room 6. Family room 7. Fireplace 8. Home office 9. Kitchen 10. Basement 11. Garage 12. Lot size 13. Pool 14. Age of property 15. View Creating a list of the desired features and amenities for your new home will help me target the properties that meet your criteria. Please consider the following and record any notes or preferences: Other requirements or comments:

16 The Neighborhood Wish List More than just the home, it's important to think about the type of neighborhood that is right for you. The more I know about your preferred location, the better I can serve you to find the home that ideally suits your needs. Please consider the following and record any notes or preferences: 1. Areas you would enjoy living 2. Specific streets 3. School district(s) 4. Your work location(s) 5. Your favorite shops/conveniences 6. Recreational facilities you enjoy 7. Any additional items to consider when selecting your target neighborhoods

17 In search of a short sale or a foreclosure? We do that as well

18 Top 10 Home Buying Tips For Short Sales A Guide to Understanding Short Sale & Foreclosure Real Estate Modern homebuyers will inevitably come across one or more properties currently classified as a short sale. The entire short sale process hinges on the hope that the bank will take a loss now, approve the sale, and eliminate the costly process of foreclosing, clearing, and reselling a home. Obviously, this is a big hope on behalf of prospective homebuyers as well and they need to understand some things in order to lessen the chance for disappointment of unapproved short sales. This is what they should know: 1. Price is usually set by the agent & seller, not bank 2. Loans owned by 1 bank usually better than 2 3. Lowball offers get slow or no response 4. Agent must check comparables before submitting offer 5. Don t hang your hat on the property 6. Sellers with other properties or too strong of financials may not qualify for short sale and/or may be asked to pay the difference 7. "Approved" prices are quickest 8. Some banks look want strongest buyers, some want strongest offers 9. Repairs are seldom done, credit is more frequent 10. When you get approval, must close on time

19 How To Take Advantage Of A Short Sale By Bonnie Biafore, Interest.com Contributing Editor How low can you go and still expect a lender to approve the deal? Lenders usually will accept offers that net at least 82% (after expenses) of the home's current fair market value, regardless of what the borrower owes, says Tim Harris, co-founder of Harris Real Estate University in Las Vegas. Why would a lender do that? Because it will lose less by allowing a short sale than going through a foreclosure. Taking advantage of a short sale is less risky than buying a foreclosure, because so many repossessed homes need tens of thousands of dollars' worth of repairs. The worst of the bunch have been deliberately vandalized by angry owners just before they were evicted. Here are 4 smart moves for buying a short sale property: Smart move 1. Make sure you're a good candidate for a short sale. Short sales are all about presenting the lender with a deal it can't refuse. Banks and mortgage servicing companies are most likely to approve buyers that: - Have a substantial down payment. - Have been pre-approved for a mortgage. - Place no contingencies on their contract, such as having to sell their current home before proceeding with the purchase. Smart move 2. Hire a real estate agent who's experienced in short sales. You need someone who can steer you away from short sales that aren't likely to succeed.vincent Bindi, a real estate broker for ShortSalesASAP in Orange County, Calif., says your real estate agent should interview the listing agent to determine whether the seller has done everything that's needed to win lender approval. You need to know whether the home has been aggressively marketed -- the bank won't like it if the seller hasn't made a good-faith effort to get a reasonable bid -- and whether the bank has received a broker's price opinion, which it will use to determine the home's market value.

20 How To Take Advantage Of A Short Sale CONTINUED Smart move 3. Offer the right price. Short sales aren't the time or place to do a lot of dickering. Lenders don't have the time or staff to evaluate an endless bunch of bids, each a little higher than the last. If you deliberately Lowball a bank or mortgage company, it will just write you off as a waste of time. You need to come up with a cheap but reasonable offer, which the bank or mortgage company will accept, in one try. Start by estimating the fair market value of the home for yourself, using comps (values of comparable properties that have sold near the home in the past few months). Take the condition of the home into account and reduce your estimate if the home needs repairs. It's a buyer's market, and you don't have to treat a fixer-upper like it's in pristine condition. Calculate 82% of the home's value, throw in a few thousand dollars to cover the lender's cost of doing a short sale (ask your agent what that typically is for your area), and you have a good starting point. Now look at the quality of your comps. If they're straightforward deals, and the homes spent at least three or four months on the market, then you're good to go. But if all of the comps are foreclosures that sold within a few weeks of hitting the market, you've got to assume those were damaged homes being dumped at fire sale prices. You'll have to adjust your offer upward, perhaps all the way to the full fair market value calculated with those comps. Check how close your offer is to the asking price on the home. Remember, the sellers won't get any of the money, so they have no incentive to demand an unreasonable price. They're just trying to find a price you'll pay, and the bank will accept, to relieve them of their debt. If you're close, then you've probably come to the same conclusions as the sellers and their real estate agent. If not, then your agent needs to have another talk with their agent to find out why.

21 How To Take Advantage Of A Short Sale CONTINUED Smart move 4. Be patient. It almost always takes longer to close a short sale, because it takes so long for lenders to review and accept your proposal. We've heard of deals closing in as little as five weeks when the lender has pre-approved the short sale and asking price and you agree to meet that price. But that rarely happens. Most sellers don't seek the lender's approval for a short sale until they have a signed purchase contract in hand. (Here's a step-by-step look at what sellers must do to complete a short sale.) More often than not, it takes two to four months to get a "yes" or "no" from the bank or mortgage servicing company. Although lenders say they're trying to process these requests more quickly, there still aren't enough loss mitigation specialists to deal with the rising demand for short sales, and we're not seeing a big improvement.

22 Mortgage & Loan Process Funding your home purchase 1. Financial pre-qualification or pre-approval Application & interview Buyer provides pertinent documentation, including verification of employment Credit report is requested Appraisal scheduled for current home owned, if any 2. Underwriting Loan package is submitted to underwriter for approval 3. Loan Approval Parties are notified of approval Loan documents are completed and sent to title 4. Title Company Title exam, insurance and title survey conducted Borrower(s) come in to escrow office for final signature(s) 5. Funding Lender reviews the loan package Funds are transferred by wire Why pre-qualify? We recommend our buyers get pre -qualified before beginning their home search. Knowing exactly how much you can comfortably spend on a home reduces the potential frustration of looking at homes beyond your means. At the same time, loan prequalification establishes you as a serious buyer in the eyes of sellers and listing agents. It's all here Keller Williams Realty Santa Monica strives to offer the CORE services that will meet your needs throughout the home buying process. Enjoy the convenience of one -stop shopping through our preferred partners, which meet our rigorous standards in the following areas: Integrity,Experience,Operations, Customer service, Communication

23 The Advantages of Getting A Pre-Approval Letter Pre-approval Letters Give Homebuyers an Edge Real estate experts tell first-time home buyers that it's critical to apply for a loan before shopping for a home, and it's true; this is an essential first step. But do you know that it's far better to be pre-approved for a loan than to be pre-qualified? There are more advantages to gaining pre-approval than you would initially surmise. When the lender hands a borrower a pre-approval letter, it means the borrower can: Save Time by Looking at the Right Homes Spend More Time Examining the Right Homes Gain Confidence & Avoid Disillusionment Increase Bargaining & Negotiating Power Enjoy a Faster Closing Period

24 Shopping For A Lender A very important part of purchasing your home is finding the right lender. Below are some characteristics you should look for when choosing a lender. Also, things to be aware of when choosing a lender. Questions to ask while shopping for your lender... What is his/her reputation within the community? How many loans do they close each year? Is the company well known in the area? How long has the company been in business? Does the lender have access to a wide variety of loan packages? Can the interest rates be locked in and for how long? Things to be aware of when shopping for a lender... Quoted rates over the phone are rarely locked prices. This is one way the lender gets you to come to his office. Rates can be subjected to changes unless they are predetermined for a specific period of time. Interest rates can change daily. A quote you get today may not be available at the same price tomorrow. The interest rate you are quoted over the phone may not be a program that will fit your needs or situation. Many lenders will discount their posted rates for well qualified customers. Preferred Lenders: Put lenders here

25 Making An Offer Once you have found the property you want, we will write a purchase agreement. While much of the agreement is standard, there are a few areas that we can negotiate: The Price What you offer on a property depends on a number of factors, including its condition, length of time on the market, buyer activity, and the urgency of the seller. While some buyers want to make a very low offer, just to see if the seller will accept, this often isn't a smart choice, because the seller may be insulted and decide not to negotiate at all. The Closing Date If you can be flexible on the possession date, and depending on the seller's circumstance, they may be more apt to choose your offer over others. The Terms In addition to price, another important factor in the strength of your offer will be the length and terms of your appraisal, loan and inspection contingencies. I will advise you on the best approach regarding these matters. Additional Considerations Often the seller plans on leaving major appliances in the home, however, which items stay or go is often a matter of negotiation. Typically you will not be present at the offer presentation; we will present it to the listing agent and/or seller. The seller will then do one of the following: Accept the offer Reject the offer Counter the offer with changes By far the most common is the counter offer. In these cases, my experience and negotiating skills become extremely valuable in representing your best interests. When a counter offer is presented, you and I will work together to review each specific area of the counter offer, making sure that we move forward with your goals in mind and ensuring that we negotiate the best possible price and terms on your behalf. Earnest Money Included with your offer, you will write a check, generally in the amount of 3%. This check is held uncashed until your offer is accepted. Then it is deposited to escrow within 3 days of acceptance.

26 After Your Offer Is Accepted This period is known as your contingency period. The actual length is negotiated as part of your offer, but is generally days. The escrow period, in Los Angeles, is generally days. The first 2-3 weeks are the busiest time for you, the buyer. Mainly because you are actively in your due -diligence or investigation process of the property. Steps you will need to be prepared for include: Completing requirements from your lender regarding your loan conditions, (including, but not limited to: documentation of all bank account balances, income/salary verification, tax returns, sources of gifted funds. Completing physical inspection(s)/investigation(s) of the property: For a condo purchase, this may be limited to just the physical or general inspection. For a single family home purchase, additional inspections can include: Foundation, Plumbing, HVAC, Electrical, Drainage, Roof, Mold, Geologic, Chimney, Pool/Spa, & Sewer Requesting a credit and/or repairs from the Seller, negotiations matter as this may affect the property value. Review all of the disclosures from the Seller. Once all matters are satisfied and your contingencies are removed, in writing, we are ready to go!

27 Associate Broker of Record DRE # Ocean Park Blvd., #140 Santa Monica, CA m o f