• What will coming home to your own • home look like? What is important to you? • Let’s take a moment to dream a little:

• Will it be a single family, townhome or condo?

• What color would you paint it? Will it have a large kitchen? • What about a yard? Is there room for an office or for guests?

• Would you have a pet?

• Think of a few words to describe what having a home of your own means to you.

• Let’s take a few moments to share our thoughts aloud.

• Today we’ll talk about some common fears and helpful facts about buying a home.

• We’ll discuss simple steps • to buying your first home

• We’ll show you how a Buyers agent, working for YOU, can help make the process of finding, financing, negotiating and ultimately owning your very own home, one that is simple, easy to understand and accomplish.

• Fear: I can’t afford to buy a home right now.

• Fact: Actually, you can’t afford not to buy a home right now.

• Fear: I don’t have the money for the down payment.

• Fact: There are a variety of down payment options available to you and there are many available sources of grants, both local and national, to help right NOW!

The Federal government is giving up to $8,000.00 to new home buyers.

New $8000 Tax Credit• According to the new legislation, a first time home buyer is defined

as someone who has not owned a principle residence in the past three years. Those three years are counted up to the date you take possession of the house you buy in 2009. This means that even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t purchased a primary residence since 2006.

• The same goes for married tax payers - they must both be first time home buyers. For non-married joint buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence in the past three years.

The main restriction is that the credit is only for those who buy a home as their primary residence.

The tax credit is equal to 10% of the purchase price of the home, up to $8,000. The amount of the credit you can qualify for is related to how much money you earn. Here’s how the credit is scaled:

• Single home buyers earning 95K or less qualify.

• If you make 75K or less, you qualify for 100% of the $8000.

• If you make halfway, 85K, you qualify for 50% or $4000.

• The credit phases out gradually between 75K and 95K of income. For example, if you make halfway between the income limits, 85K, you qualify for up to half of the credit.

• The same rate applies for married couples and joint buyers whose incomes limits are doubled to $150,000 to $170,000.

This credit DOES NOT have to be paid back,

and

It’s refundable, so if you have already paid all your taxes in advance, you will get the money back from the IRS, once you file.

Housing affordability now stands at its best level since 1971.

and Mortgage rates are among the lowest in 50 years!

Easy Steps to Home Ownership

Find YOUR RealtorGet Pre-Approved for your loanSearch for homes (with the help of your

agent)Make an offerExecute the contractPerform any inspectionsClose on the sale and move in!

Decide to Buy• Financial net worth comparison,

according to the U.S. Federal Reserve Board of Consumer Finance:– Average net worth of renters = $4,000– Average net worth of home owners =

$184,400

• A home is the largest financial asset most people have due to equity and appreciation over time.

– Average annual appreciation rate nationally is 5 to 6 percent since 1977. (Note: Local appreciation rates vary greatly.)

– At 3% annual appreciation, a home purchased for $150,000 would grow to $364,000 in 30 years.

– Even at 1.5% annual appreciation, this same home would still grow to $234,462 in 30 years.

•

Deciding to buy is also a rational decision• “Home is where your wealth is.”

– Grow wealth via equity buildup, debt pay down, and value appreciation.

– You can take advantage of tax-deductible benefits such as property and mortgage interest write-offs.

– A home is an investment that creates opportunities.

• In a few years, you can use your equity to trade up to a better home.

• Why pay rent when you can own?

– If you took out a 30-year fixed-rate mortgage for $150,000 and made monthly mortgage payments of $900…

• You’d pay $324,000 in mortgage and interest payments over the life of the loan.

• And after 30 years you’d own a home with an appreciated value potential of $364,000 (at 3% annual appreciation).

• Keep in mind: Appreciation rates vary greatly based on local conditions.

• Compare that to paying $800 per month in rent over 30 years…

• Even if your landlord improbably never raised rent, you would still spend $288,000 and own nothing!

Work with your Realtor

• Real estate agents perform 7 main roles:1. Educate you about the market2. Analyze your wants and needs3. Find homes that fit your criteria4. Coordinate the work of other needed

professionals5. Negotiate on your behalf6. Review paperwork and deadlines7. Solve any problems that may arise

In buying a home the use of a REALTOR®’s knowledge can guide you through the complexities and can help you avoid delays or costly mistakes. Keep in mind that most people buy and sell only a few homes in their lifetime – REALTORS® do it everyday.

• Advantages of a buyer’s representation agreement:– Sets mutual expectations in writing between

you and your agent.

– Commits your agent to getting you into the home you want, while you commit to working exclusively with your agent.

– Don’t you want someone working exclusively on your behalf?

AND…..Most agents work 4 FREE, for you, the BUYER

HOW DOES MY REAL ESTATE AGENT GET PAID?

Real Estate agents are typically paid by the seller at closing.

Even though the seller is paying our commission, (commission for the listing agent/employee and the selling agent)buyers agents DO NOT work FOR the seller.

By signing a Buyer Representation agreement, you know that your agent is working on YOUR behalf.

Did you know that agents do not get paid AT ALL until they sell a property?

Agents don’t get paid for the hours of research, answering the phone, meeting clients, showing property, writing offers, or even all of the work that goes into making sure a contract gets to the closing table.

If it doesn’t close – they don’t get paid at all.

In a typical scenario:

The listing agent negotiates a total commission with the seller. A portion of that full commission amount is set aside for the agent who brings the buyer, and is written into the listing agreement as such.

Listing agents depend on buyers agents to bring clients to them, for all of their listings just as in the case of new home builders, the sales price has been set with the full commission built in (commission for the listing agent/employee and the selling agent). Since listing agents and builders depend on buyers agents bringing their clients to them they want to continue that valuable relationship and won’t ‘cut’ the price if you are not represented.

Can you imagine putting in hour after hour, week after week and month after month without ever receiving a paycheck?

NO one gets paid until a home is SOLD and title is transferred.

Realtors value the relationship they build with YOU and appreciate your cooperation and support.

What you can expect from YOUR buyer’s agent:

Before the home search begins, your real estate agent will want to know as much as possible about the features and amenities you desire.

• Assist in determining how much you can afford and help you get prequalified or preapproved for a loan.

• Simplify your search by helping you define what’s really important in your home and neighborhood

• Keep you abreast of local market conditions, so you can make informed decisions.

• Gather in-depth detail on each home and schedule appointments for you to see homes

• Show you only the homes that meet your criteria!

• Work with you in drafting an appropriate offer and serve as your representative when presenting it to the seller.

• Negotiate a contract that considers your goals and leads to a successful closing.

• Personally refer you to proven service providers, such as inspectors, appraisers, title companies, warranty providers, insurance agencies, attorneys, carpenters, movers and more.

• Assist you with the scheduling of inspections, closing, and document review!

• Respond to and resolve all issues quickly and timely!

• Provide you with post-closing information, consulting services and assist you with all future real estate needs!

What your agent needs from YOUKeep all appointments or call to cancel in a timely manner!

Meet with loan consultant in a timely manner after initial meeting! (If applicable)

Respond to calls from mortgage, title, inspection, and other companies involved in the process!

Loyalty – Disclose to all “New Home” builders and other real estate agents that you are happily represented!

Not to make large purchases or incur debt without first consulting with loan consultant!

Have fun and enjoy the process

Mortgage Information

Secure Financing• Seven steps to financing a home:

1. Choose a Mortgage Company that will office you the best overall mortgage terms for you. You will want a loan officer or mortgage broker who is diligent and on top of things. He is just as important in getting you to close.

2. Make a loan application and get preapproved.3. Determine what you want to pay and select a loan

option.4. Go Shopping with your agent and find YOUR next home5. Submit to the lender an accepted purchase offer

contract.6. Get an appraisal and title commitment.7. Go to the closing table – with downpayment and other

expenses. Mortgage company will provide funding for the balance of the amount.

Secure Financing

• Know your mortgage options.– Three basic factors:1. Down payment2. Interest rate3. Term

Secure Financing• Understanding your monthly

payment:– Principal– Interest– Taxes– Insurance– Together, these four elements are commonly

referred to as PITI.

Secure Financing

• Prequalification vs. preapproval– Prequalification is simply a rough

estimate of how much you can borrow.– Preapproval involves a formal

application process and provides you with a formal commitment from a lender stating how much you can borrow and at what rate.

Secure Financing• Deciding among your mortgage options:• If you want…

– A low monthly payment – put more money down or purchase a more affordable home.

– A low down payment – secure a second mortgage or an “80-15-5” piggyback.

– To build equity quickly – make voluntary prepayments.

– To minimize risk – take a 30-year fixed-rate program with 20 percent down.

Financing• The suitcase principle

– Your lender decides what you can borrow, but you decide what you can afford.

– In your preapproval letter, make sure the monthly payment includes taxes, home owners insurance and association dues (if applicable) and is an amount you’re comfortable paying each month.

– It’s best to spend no more than a third of your gross monthly income on your home payment.

Finding Your Home• Define your home criteria—analyze your

values, needs, and wants…..don’t worry…..your agent will help!

Make an Offer• Three components of an offer

– Price—offer must reflect current market value of the home.

– Terms—basic categories address timing and financial considerations.

– Contingencies—often referred to as “conditions” that allow you to opt out of a deal if the home has a problem.

Your agent will work with you to determine a ‘fair’ price for your next home based on current and local market conditions.

Pinellas County statistics:

GREAT, you have been pre approved for financing, found YOUR new home and with the help of YOUR agent, negotiated a successful contract, and you are on your way to home ownership!

BUT, the job isn’t done YET!

Rest assured, you will not be alone or abandoned, you will have the benefit of your agent’s expertise ALL the way!

What’s next?

• Property inspection—exposes any structural or hidden issues.

• Home owner’s insurance policy—protects against loss or damage.

Close• Preclosing responsibilities include:

– Appraisal, survey, title search, and title insurance.

– Keeping yourself mortgage worthy!– Doing a final walk-through of home.– Getting your settlement statement, certified

funds, evidence of insurance, and transfer of clear title.

– ….and of course, the KEYS to YOUR new home!

Now that you are a home owner, Protect Your Investment

Make sure to keep all the major systems in your home clean and in good repair. A home warranty purchased at closing can really save $$ and provide peace of mind for homeowners.

Don’t forget the outside…..

Fresh paint will not only add to your home’s curb appeal, but will add years to the life of your home, while keeping moisture and bugs out.

Depend on your Realtor to help you determine the BEST projects to do around your home for resale value $$$$

A sampling of Our local market offerings

Let’s take a look at some of our local market listings right here.

SqFt Heated: 1,308 , 4beds, 1 bath $79,000Completely Remodeled 4 bedroom block home.

49th Street, St. Petersburg -$119,900 Beds: 2 Baths: 1/0 SqFt Heated: 973 CHARM, CHARM, CHARM! THIS HOME IS NOT A DRIVE BY!! YOU WILL BE SO GLAD YOU TOOK THE TIME TO SEE THIS WONDERFUL STARTER OR RETIREE HOME!! 2 bedroom BLOCK home with a bonus room which can be a 3rd bedroom, office or den! Lots of storage! Move in ready with gleaming hardwood floors, neutral colors thru out with all white kitchen and ceramic tile!

Thank YOU so much for attending!

We hope it was informative.

We have agents here that can answer any of your questions and invite you to stay to get all of your questions answered.