John Mommertz Real Estate

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John Mommertz Real Estate
Client Information Booklet
Prepared for
John Mommertz John Mommertz Real Estate Direct
line 619 992-5804 Email address
mommertz_at_sbcglobal.net
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Table of Contents
Section 1 What to Expect and Questions to
Consider Section 2 State of the
Market Section 3 Lender Issues Section 4 My
Role as your Agent Section 5 Buyers
Role Section 6 Copy of Buyer/ Broker
Agreement Section 7 Copy of Contract
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What to Expect
As you begin on this path to buying a home it is
important to know what to expect.

1. It is an emotional ride with ups and downs. You
   will experience excitement and hope as well as
   perhaps frustration or a bit of discouragement.
2. There may be bumps in the road. We will get over
   them together as we move thru the exciting
   process of finding and purchasing your new home.
3. You may get cold feet or feel nervous. Thats
   very typical.
4. You will wonder, Did I pay too much? Together
   we will stay on top of the market to be sure
   all of your decisions are well-informed ones.
5. Most people experience some level of buyers
   remorse. Thats very common.

Just remember- All these feelings are normal and
it is okay to feel them.
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Questions to Consider
As you sit down and start the process of
selecting and buying your home, it is important
for you to consider some basic questions, as
listed below, and to discuss them with each
other and also with me.

1. Why are you currently in the market to purchase a
   new home ?
2. What is the ideal timeframe for you to own and
   occupy your new home?
3. What are the top five features you MUST have in
   your new home?
4. What price range would fit most comfortably in
   your familys budget ?
5. What neighborhoods are you considering and why?

When you think about your home, what do you see?
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Questions to Consider (Cont.)

• 6. What are your concerns about our market?
• 7. What do you see my role being and what are
  your expectations of me as your agent?
• 8. What do you see as your role in the home
  buying process?
• 9. Do you have any other questions that I may
  have missed?

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State of the Market

• There are 3 types of sales in our Real Estate
  Market place today.
• Equity Sales-The seller is able to sell their
  home for more than what is owed against it.
• Short Sales-The seller is not able to sell their
  home for what is owed against it.
• Bank Owned (REO) Sales- The home has been
  foreclosed upon and is now owned by the bank.

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Equity Sales

• The seller has equity in their home. The seller,
  therefore, is the final decision maker on all
  contract points.
• The transaction tends to be more straightforward
  , faster, and typically easier than a short sale
  or a bank owned (REO) sale.
• The response times to offers and counteroffers
  are generally quicker than those with short sale
  or bank owned (REO) offers.
• There is typically more flexibility regarding
  negotiations
• The sellers motivation may be unknown.
  Therefore, they may not NEED to sell.
• The potential for multiple offers is less than
  that with short sales or bank owned (REO) sales.

Typically the easiest for the buyer to get into.
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Short Sales

• 1. Seller still owns the home and is selling the
  home for less than what is owed. The bank must
  approve the price and terms of the offer.
• 2. The process is lengthy. It can take between
  2-6 months.
• Not all listing agents know how to handle the
  short sale process.
• 5. There are often multiple offers.
• 6. As a buyer, you are operating on blind faith
  with no guarantees since the lender, who has the
  final say in the negotiation, may not supply all
  the necessary closing information until a few
  days prior to closing.

Short sales can take longer than other home sales.
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Bank Owned (REO) Sales

• The home has finished the foreclosure process and
  is now owned by the bank. The owner and seller
  is the bank.
• The response time to offers could be 1-2 weeks.
• There are often multiple offers and it is not
  uncommon for them to be well over the listing
  price.
• Banks will often only respond to highest and best
  offers.
• The property is typically priced below current
  market value to generate multiple offers and a
  quick sale.
• Banks shorten time periods in the traditional
  contracts and have passive removal of
  contingencies.
• The property is often in a state of disrepair.
• The bank may offer a credit for some
• repairs.

These are the most sought after properties by
buyers and are usually sold at asking price or
more.
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Other Items to Consider in this Market

• Media- Real estate is local. What is happening
  nationally is not necessarily happening locally.
  Even locally, there are neighborhood nuances.
  Keep this in mind when reading or listening to
  the media.
• Good Deals- What is your definition of a good
  deal? REOs and short sales are already listed
  below market value. If you come in too far
  under asking price, you may lose the home.
• Buyers Market- It is a buyers market in the
  fact that its a great time to buy due to low
  prices and low interest rates. Its not a
  buyers market in which the buyer can be
  demanding and/or not compromise.

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Other Items to Consider (Cont.)
4. Todays Market- San Diego is a hot market for
entry level buyers and investors. With this in
mind, the playing field is beginning to level out
between buyers and sellers, depending on the
neighborhood.. 5. Time is of the Essence-
There are many buyers in the market. If you see
something you like, you need to act, even if it
is the first home I show you. 6. Real Estate
Property Websites- Be cautious- they are not all
created equal. Some contain outdated information
while others do not consider all relevant
information. I have access to accurate and
current information.
The market is always changing
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Lender Considerations

• Down Payment- The amount of cash required by you
  to purchase your home is dependant upon your loan
  type.
• Interest Rates- Vary daily and we can only look
  at current trends. Currently they are edging up.
  Rates are affected by your credit standing, the
  amount of your downpayment, the type of loan you
  are applying for and the value of the home.
• C. Maintain Your Credit Status- Remain current
  on all bills. Do not make any major purchase
  during the home buying process that would affect
  your credit.
• Note Close of escrow is a target date. There is
  no guarantee it will close on that date.

Not all lenders are equal.We will work together
to find a lender.
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Lender Considerations

• D. Appraisal Issues- Many banks are now
  requiring 2 appraisals. One at the beginning of
  escrow and one at the end. Your lender will ask
  you to pay for both appraisals.
• E. Changing Lenders during Escrow- This could
  jeopardize your sale and may cause you to lose
  your deposit.
• Condo Loans vs. Single Family Residence- A condo
  loan takes the HOA fee into consideration.
  Because of this, your lender will qualify you for
  a lower amount than they would for a single
  family home.
• VA and FHA properties have to be in very good
  condition or else they will not appraise. Buyers
  cannot make any improvements during escrow.

Choose a lender based on ability to close the
transaction, not on who has the lowest interest
rate
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My Role

• As we go forward with this process, you can count
  on me for the following
• Honesty
• Advice and Council
• Knowledge and Guidance
• Protecting your interests
• Professional and complete service

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Honesty and Counsel

• Honesty
• Provide honest feedback on the reality of being
  able to match your needs to your price range
  and/or neighborhood.
• Give honest and informed opinions on value - is
  the price youre offering too high or too low
  based on the dictates of the market today.
• You will never be forced to do anything you dont
  want to do. The decision is always yours.
• Advise and Counsel-
• We will discuss and agree on the best negotiation
  strategy to use.
• b. I will advise and counsel you based on
  relevant and current information. Then, the
  final decision is always yours to make.

Its your house. Its your decision.
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Knowledge and Guidance

• Knowing Guiding You through the Process
• The Purchase Agreement- Explain the contract so
  you know and are comfortable with what you are
  signing. I will be happy to provide you with a
  blank copy of the Purchase Agreement for you to
  have reviewed by your legal counsel.
• Negotiating- I will be negotiating many
  different things throughout the process on your
  behalf and in your best interest, per your
  direction.
• The Escrow- Typically takes between 30-45 days.
  We will need to operate in a timely fashion. I
  will be there every step of the way.
• Close of Escrow- This is a target date. We may
  or may not be able to close on time. I will do
  my best to make it happen, but sometimes things
  happen that are beyond our control.
• e. At the Close of Escrow- I will
• be there to present to you the keys
• to your new home and answer
• any questions.

I am your guide on this journey and a resource
when and after you have arrived.
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Protect your Interests

• Protecting your interests are my top priority.
• Use my expert negotiating skills to get you the
  best price and terms as possible.
• Advise you of your options as a buyer
• Inform you of critical dates
• Recommend actions you should take to protect your
  interests
• Provide information to enable you to make the
  best decisions possible.

Your interests are the same as mine.
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Great Service
PLEDGE OF SERVICE FOR LOCATING YOUR NEW
HOME While Searching for Your New Home I will
Keep all aspects of the transaction
confidential. Keep you updated daily about new
listings that come onto the market and meet your
criteria. Communicate regularly with the
frequency and in the manner you choose.
Prepare a buyer information packet including
documents and information specific to your
housing requirements. .
Great service comes when both parties communicate.
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• Pledge of Service (Cont)
• Keep you updated with market information
  that will help you make informed decisions.
• Preview homes daily, if necessary, on your
  behalf.
• Search for property availability in additional
  sources to the local MLS.
• Actively prospect for unidentified sellers on
  your behalf.
• While Preparing the Offer and Negotiating for You
  I will
• Thoroughly explain the various documents
  required for your purchase.
• Provide a written comparable market analysis
  showing comparable properties currently on the
  market and recently sold to assist you in
  determining a fair offering price.
• Present all offers and counter offers in person
  whenever possible.

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• Pledge of Service (Cont)
• Keep you fully aware of your options at all
  times during the negotiation.
• Once your Offer is Accepted I will
• In compliance with the purchase contact, I will
  follow up to assure that escrow has been properly
  opened and title ordered.
• Instruct escrow to notify me of all activity on
  the file and of any missing documentation.
• Deliver and review all documents with you,
  obtain appropriate signatures and return same to
  escrow.
• Monitor transaction for timely completion of all
  contingencies including, but not limited to
  deposits, inspections and loan requirements.

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Monitor status of your loan
process and keep you informed of
same.Anticipate and assist in solving any
special problems associated with your purchase of
the property.Coordinate any other transaction
relating to the sale of this property.Coordinate
closing logistics including final document
signing appointments.Coordinate delivery of
keys/access to property after confirmation of
recording. Personally inform you of
recordation.I look forward to being able to
assist you in the purchase of your new home.
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Your Role as My Buyer
As we go forward with this process of searching
for your home your best interest is my top
priority. In order to achieve your goals, I ask
for your commitment of the following

1. Pre-Approval- Meet with a lender, become educated
   on your options, and fill out the application. If
   you would like me to be in the appointment, I
   will be happy to do so.
2. Honesty- Please be honest with me about anything
   and everything related to your real estate needs.
3. Communication- This is a two-way street . Tell
   me your needs and wants. Share your ideas and
   concerns.
4. Feedback- Provide feedback on your likes and
   dislikes on the homes we see.

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Your Role (Cont.)

• 5. Compromise - It is part of the buying process.
  Understand how and when to do it.
• 6. Loyalty- If you are out looking at open
  houses, please let the agent know you are working
  with me. If you choose to work with me, only
  work with me.
• 7. Buyer/ Broker Agreement- I am paid by
  commission only. I work for you, not my
  commission. If I show you a home, I ask you to
  agree to use me as your agent.

Together we will find your home
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What I am going to ask of you

1. After each showing I will ask you Do you want
   to make an offer on this home?
2. When our job together is done and you are in your
   new home, I will ask you for referrals.

John Mommertz Cell Phone [phone]Fax Phone
619 276-1211 mommertz_at_sbcglobal.net
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Insert Buyer-Broker Agreement

• Sample

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Insert Agency Disclosure

• Sample

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Insert Deposit Receipt

• Sample