Sign Virginia Electrical Services Contract Myself

Add e signature Boarding and Daycare Contract

this conference will now be recorded this is cheryl vecchio and today's class is a review of how to complete all of the uh contract documents in order to submit an offer to purchase property so all the buyers rep documents and we're starting out today we want to sign in to dot loop we want to pick a property to sell if we have not done so and then we're going to get started because i have a lot to cover so let's talk about let's talk about what really happens in real life so if i am showing properties to my client in real life i have probably when i show properties and let's say i'm showing i'm showing properties that are pretty much alike i mean my client wants a four bedroom house that's two-story and they want a pool okay let's pretend that so if that's the case then when i go to show them those properties let's say i have four houses in jacobs reserve they're all around the same price around the same area i'm probably going to run a cma a quick cma before i go because i want to make sure i know unless you know unless i'm showing in that neighborhood over and over again i really know it i want to make absolutely sure i have a cma with me so i can talk value to my client because what happens to us many many times you're going to be standing in a kitchen and the client's going to look at you and say what do you think i'd offer for this house so you want to under have it especially when you're new and you don't if you don't really just have a clear understanding of that neighborhood you want to run your cma before you go there now um if you haven't done that and whenever a client says to me you know if i if they catch me off guard and they say what do you think i'd offer for this house i say you know what i know the values in this neighborhood runs from ranging from here to here but what i'm going to do is i'm going to go home and i'm going to run a market analysis for you and then we can talk about what to offer and i do that because i really want to make sure that i understand my market and also from an abbey perspective we we are required to have a cma in our hand that we discussed with our client prior to writing that contract so even if the client said hey i want to offer 500 000. and whatever that conversation is you still need to have your cma you still need to work and with your client and uh and chat with them about values and what to offer so i going in my let's pretend world i have run my quick cma and then what i'm going to do my client's going to say to me okay i want to offer 300 000 for this house and so the first thing i'm going to do is i'm going to um i save a copy to a file before i ever start the tax the tax record for this house and the mls the couple reasons i say the mls first of all it's got quite a bit of information i'm going to need secondly it's got in the agent remarks it's got the information any information from the listing agent and then the last thing that i want to save and have record of is the buyer's agent percentage oh my goodness that's one that's two percent i picked an example with two percent never do that um so but i want to look at what the buyer's agent compensation is and you guys we assume that it's three percent because we work with that number so often but remember our commissions are not set and so in this example i selected this example for many other reasons but the example has a buyer's agent compensation of two percent and although we put that percentage of our compensation on our contracts the um the document that's the legal document that says what we're going to earn is in this um on this mls document so save that because that is the percentage that you're going to earn at the time you made the offer so i just print this to a file i just print to pdf and save it and then the other thing i do because i need the tax information the tax records because i need a couple things off the tax record i'm going to make the offer to the person that says owner's name whatever that is i'm going to do that except every once in a while you'll have someone a listing agent there might be something going on with you know a um an executor of a will or a divorce that makes your offer to be to someone other than this person on the tax records and sometimes the agent will tell you in the agent notes okay so be careful about that those are a few things to be careful of when you're going to make an offer so i sit down and i run home after i do my happy dance and tell my family i'm going to write an offer i'm real excited use my little calculator see how much money i'm going to get to take to the shoe store all that's good stuff um then i sit down i pull the mls i pull the tax records and i have all that ready okay so that i can go now to dot loop and start the process of pulling my document so i'm going to go to dot loop now and i'm going to create a loop and remember loop equals transaction so i'm going to create a loop and i'm going to look at my property address and i'm going to do 143 winter sport circle there and it comes up in dot it comes up in dot loot mls and then i'm going to click on it and now remember you guys just a little review when we talked in dot loop class and we said when you're pulling properties in dot loop and you've got the choice between a dot loop uh mls address or a google maps pick the dot loop one it'll help you pull information in and then i'm going to select my template and i'm going to be a buyer's rep so i'm going to select buyers rep hello and i'm not going to upload a photo but so i'm going to say done and just as a review remember that i'm going to view my loop and when i view my loop i'm going to go to view details before i do anything and i'm going to um go down and under my name i'm going to change my role to buying agent and then i'm going to add my buyer and i think i have fred flintstone in here let's see i sell a lot to fred now i don't have him in here i'll add his email no and remember i have a email that i can use as y'all can tell i use this email a lot there we go and i'm going to give fred a role and fred's role is buyer and now let's just and you know i want to put fred's address in there because we don't know if fred's going to live in this house or it's going to be investment property that is no consequence i want to make sure that i have fred's address in here so i'm going to be put him at 1 2 3 rock bed lane and he lives in bedrock texas his address is there we go that's good enough and then i saw i added fred i've got fred in there and then i'm going to go down and notice that uh dot loop because the listing agent tracy uh is part of has a dot loop account we it pulls all her information in also so i'm going to go down and it's got it's my property address is pulled in here up the sales commission rate it says three i get two my words of wisdom from cheryl is that be very careful when you're putting together properties to show if you're going to accept a lower uh rate than you normally would you want to know that up front so i always nowadays you see a lot of 2 and 2.5 in commission rates so what i do is when i'm putting together properties to show i look at that when i'm putting together the property to show so i'm not surprised when they go i love this one and it's like one percent so a lot of time i buyers will put properties in at a lower uh commission rate so i'm going to come down here i don't put everything in here because it follows and things could change so i go down to things that are not going to change like geographic description and remember where i got my geographic description i went to i went to my um tax information and i just copy legal description right there now add legal description and it's block two lot two be sure you get that part back that part correctly and lock two okay and then that's pretty much all i need under detail so i'm gonna hit save and we're a little slow here in the room there we go and [Applause] then i'm going to go back up and i'm going to go back to my loop i've put my details together now i'm going back to my loop and just to make sure i got you know my rule done correctly i'm going to check the iabs and yes i'm in there life is good now one other thing that i forgot to tell you when we're talking about what to pull from the mls very important my apologies but when i am working in the mls before i get started i go to attachments and under attachments i should find if this is a good agent i should find all of the things that i will need in order to complete a good offer so the first thing i'm seeing here is i have a seller's exclusion list i have they've given me the mud um they've given me they've got a disclosure relationship they want me to sign they have um a survey yay they have a survey and they have the seller's disclosure notice so for my client i'm going to download everything i need my client to sign and i'm going to save it so we're just going to do that real fast i'm going to download them and i think i have a file called class let's see we're gonna put it there we go class samples open and i'm gonna just copy these i'm gonna need these so i'm gonna copy them real fast get them water district and i'm going to need let's just say i'm going to need the seller's disclosure i'm eventually i'm trying in the interest of time in class i'm not downloading everything in my real world i would download all of this including the survey because remember i'm going to need my survey to get paid so i might as well do it all now but in the interest of time in class i'm not going to do all that okay so but in the real world i would have saved all of these disclosures to my i make a little file for my clients and i save all those disclosures and probably in the real world i would have already had my clients sign the iabs and a buyer's rep agreement so i know i'm going to want that one for class practices so what would my mom say don't do as i do do as i say do and just for in the interest of time we're not going to download everything but in the real world we would download it so i'm going back to dot loop because i have everything i need i don't want to share my documents yet remember i don't want to share my documents individually because my client's going to get 47 emails and i don't want that to happen we're going to pretend that i just met this client not only and then i'm getting to make an offer but this is our first meeting we looked at one house and they said i want to buy this house it's like a miracle and i can tell you from personal experience that does happen i had it happen to me once i was like i was drinking a sip of water and this man turned to he goes i'll take it i almost spit water on him but and then the other thing that i have to tell you in my personal life when i moved to the woodlands i looked at three houses picked one that and that agent had never met me in her life she probably went home and bought a lottery ticket i didn't realize how rare that was at the time because i wasn't an agent but anyway so this this person i'm going to need to send them an ibs i'm going to need to send them a residential buyer's rep agreement and here at uh at abby we require a residential virus rep agreement right and notice that in a residential buyer's rep agreement everything is pre-filled out if i have all of my clients information and all of my abbey information incorrectly if your abby information isn't coming up it's because something's going on in your profile so when i fill this out the first thing i'm going to do after i've got all the you know name ranking serial number here is i'm going to go down to number three and 3c i'm going to identify the market area and i if i don't know what's going on with people i will put the greater houston area okay but this these people i know that they were interested in uh in properties in the let's say the woodlands conroe area another reason to put the greater houston area is because if this person changes gears on you and recently had a client they were picking between katie and the woodlands and they were doing so based on school information so that's a big stretch and i don't want to lose them because they went to katie so when you put the greater houston area kind of covers you too so and i wanted the terms of the agreement to start today and i usually pick six months from now so when that would be that's just for fun let's just say june and i know that sounds crazy for just someone that hasn't you know hasn't had issues come up because there are many issues as there are transactions and different types of scenarios so that covers you let's say that you start working with the client and they might have a credit issue they didn't know they had and they need to fix it they need a few months to fix it so if you're covered for six months then you can then you're covered they can go fix their credit issue and not find out that their cousin just became an agent and they dump you okay so we don't want that to happen so and remember that when i'm filling out forms and it says for me to sign i go ahead and sign it and i'm moving forward here and i'm going to go down the next place to spill something out is intermediary i'd be sure i'm really sure that i explain the intermediary status to whoever hang on everybody i'm taking a break my hubby just arrived with my electricity you can take on you can take up the mess you want to say hi to my class online don't he doesn't want to say hi to them thank you thanks so the next place i'm going to go down to is intermediary and under intermediary i always check intermediary status and i make absolutely sure i explain intermediary status to people because intermediary status not only has to do with if you do both sides of a deal but it has to do if you and i are in a you know i have a listing and your buyer wants to buy my listing i mean there's nothing that makes me happier than an avi agent to be on the other side of a deal so we want them to understand the intermediary status and how it works the next thing that i'm going to go down and be sure to sign every page nothing's more fun is to turn all your paperwork in to get paid and you forgot a page that's fine so i go down and in this case this is a good example because that contract says two percent remember but i want to make sure this client understands that i can get up to three percent and i fill that out okay it's three percent i want to change that and i always always always make sure that i'm covered on a lease also because you never know when someone's going to have to flip to a lease for whatever reason it's happened to me someone is moving here they're relocating they can't find what they want they give up and go i'm just not buying anything i'm going to lease so i want to be covered and recover money some money it's really sad though instead of my what 10 000 now i'm getting 1500 but it's still you know something so fill it out um and then i'm going to go down to f and um that's not that's an n a i'm sorry and then i'm going to sign protection period we've pre-filled this out for you for 90 days that's a fair protection period that means that if for some reason i showed you a house we you know had that on our radar we were looking at it we were talking about price and then you know our agreement ends and you want to buy it i'm protected that i i'm still your agent that's what that means someone can't take you away from me with those properties that we um we discussed counties filled out harrison montgomery county if you're in walker county or fort bend county you can change that easily i make it inclusive to the counties around me so that's why i do montgomery county harris county or if you're in walker county you might do welcome county san jacinto county or in montgomery county so whatever makes sense in your life and with your client okay um agendas that we need to add to this is information about broker services and i also um i you know also give my clients the general information and notice the buyers and sellers now you guys be very careful here because from a compliance perspective whatever you put in number 16 has to show up in your paperwork when you submit okay so don't be checking boxes and being cool with your client and then not want to submit that paperwork correctly inside because it says it in here if you said that i'm going to to uh provide them the agenda and information on in special flood passive areas then it has to be in your paperwork when you complete your paperwork and here we are again in special provisions i personally have not ever used special provisions it you know when you use special provisions it has to be a specific legal actionable uh and so i think in most cases we have a form for that and so i don't use special provisions very often if someone has an example of when they would please let me know and you guys online i didn't give you most of you've been online with me but i didn't give you my speech about if you have a question please just interrupt me and i try to check chat every once in a while but it's not my strongest uh skill so just interrupt me take yourself off mute and ask questions if you like okay so the next thing i'm going to do is i'm finished with this i'm going to go ahead and sign it before i present it to my buyer and i'm done i'm going to save it and then i'm going to go to the next buyer's form okay one to four let's go to the one to four contract let's get to the meat and potatoes of my contract so i'm going to do again i can add here i sometimes choose not to do that because again when i do that it stays with the transaction okay okay so my first thing i'm going to do and the reason i write in the parties and not make them a party okay i write in the seller on the contract personally i don't make the seller a party in my dot wood transaction and the reason is because if you make them a party they're going to show up as a signature line here okay and you don't want that because we don't ever send anything directly to a seller uh we send it to their agent so the only time i think i would make the set buyer and the seller part of this is if i was representing both and then i'd probably still do two transactions so i just don't mix and mingle them i'm representing the buyer that's the only person that goes in here and when i need their name i type in their name okay so where i find their name is i go back to um i go back to that tax statement where did i put it it snuck off here we go i go back to my tax statement and it's nadja hunter is the seller's name so that's who i'm just exactly as i see it i'm not going to leave anything out if she had a third name i put that in if she had an initial i put that in if she's had junior i put that in whatever it says there i just copy it that's it that's the seller and then remember if i've done this correctly i've pre-populated but you still need to go back and read and make sure what you think populated populated because in this case i don't have a legal description so i'm going to go back wherever i put it there we go i'm going to go back to my tax statement and get my for my legal description so even though and then i'm going to come down to exclusions and we talked a little bit about this um prior yesterday when we're talking about listings here i just put c list now if they didn't give me a list and they are and the listing agent already told me hey that water softener's excluded and i want remember i'm making an offer i want them to love my offer and pick me so this is kind of a pick me pick me thing and one good way to pick me pick me is make this easy on the listing agent be the listing agent's friend yes you represent yourself but you know especially there are agents that have been around a long time and there used to be a thought process in some uh in some circles i guess where in order to to protect your client you need to be adversarial i don't believe that at all i believe that in multiple listings situate in multiple offer situations many times i can talk the listing agent into picking me because i appear to be easy to work with don't you want to work with somebody that's easy to work with so appear to be easy to work with and then and so if they said hey we don't have an exclusion list but the water softener is excluded then i would put it in here in this case remember we had a list so i'm going to say c list so now we get down to the nitty gritty of what i'm offering in this situation let's look at how this is broken out there's a cash portion of the sale if it was an all-cash deal i would be putting my whole offer amount in that deal i would be putting so let's say i'm offering 300 000 then i would be putting 300 000 in that box and i would deselect third-party financing okay that's what i would do in this case we are doing third-party financing and i am um putting i'm gonna make this really easy i'm putting ten percent we're putting ten percent down and we're financing the rest so let's look at what that would be that would be so put the cash portion at thirty thousand okay and then that means that i am financing 270 000 get my math right and by the way in the real world when i'm not teaching a class and trying to get you guys through this i would put this in a calculator even if i know it i put it in a calculator i put it in the calculator when i'm calculating my cash portion and then i put it in a calculator when i'm adding it all together okay so do yourself a favor and get your math right so i'm offering them 300 000 and by the way another place that i would get this information is if i have a client and my client is getting third party um financing i'm going to have a pre-approval letter do not make the mistake of sending the seller their total pre-approved amount this is why you want a partner um lender because you want to go back to the lender and say let's say that they were pre-approved for 350 000. i don't want to send the seller a pre-approval letter for 350 000. i want to send the seller a pre-approval letter for exactly what i'm offering this becomes very important if you're offering less than um your client uh you're offering less than the seller is uh listening for so if this house is on the market it really it's on the market for 302. but as let's say it's on the market for 320 i don't want them to see i can pre-approve for that i want them to see only what i want them to see so i ask my lender to shoot me another pre-approval letter for what i'm offering and if we negotiate another price i go get another pre-approval letter and get that so i need a lender partner that i can go back and forth with so someone asked me yesterday and i don't know if they're on the line but they asked me yesterday where do i put if the seller or the buyer or my client is a relationship to the agent so let's say i saw that this seller was the sister of the agent that's why i would put it here and really you need to disclose that when the lice i disclose it whenever it's somebody that's in my family that's my cousin that's my sister-in-law my sister-in-law brother-in-law are investors they buy rental properties and i do work with them so i i just i don't i don't get any any additional upside for working with them in fact i give them a break but um i put it in here so i disclose if i ever have a family member or the other side has a family member so remember i'm making it easy for them just to sign and go with this yes agent is owner needs to go in there definitely agent is owner okay so i'm going to and also what i do and sometimes it is illegal to put title information anywhere in the um in the uh listing i'm sorry i totally forgot my words in the listing so i need to ask this listing agent hey what what's your preferred title company so so i don't have to rewrite this okay so i asked them what their preferred title company is one percent's going to be 3 000 in earnest money and let's just say somebody i know here and then earnest money is going to go to i'll [Music] i'll go as escrow agent at and then i put the address i forgot his address off hand but one two two happy lane ones i put the address so they know where to take it and if i have an offhand i'll put their phone number in there too because i really i want to make it easy i'm making it easy on everybody where we're going to do this and then be careful because i see agents not reading this if for some reason i've only seen this happen once i don't know why they did it in that situation but they did it they're going to if someone let's say your buyer really wants this property and it's multiple properties i mean multiple offers and maybe your client says i'll give him more than three thousand dollars money i can give him ten thousand earnest money i don't care and so in that case you could say okay we'll deliver another seven thousand dollars to the escrow agent within ten days i would never make it more than ten days by less than ten days or less than your option period but you could add that i've never seen a situation where you need to but in case you need to you can add additional earnest money i would do i would give yourself time to turn that earnest money in so then we want to go down to the title policy as you know seller normally pays title i have seen buyers offer to pay title in the event of it's an investor buying a purchase or it's a multiple offer purchase if you want your client to be picked one of the ways it only cost them a couple thousand is to pay the title insurance so that does happen you can change it if you need to and it's going to be issued remember my title company chicago title so i'm going to put chicago title here and then i'm going to keep going down and i need to let's talk about now we need to talk about the survey so we talked about the title commitment and then we're going to talk about oh by the way we pre what this says up here will not be amended or deleted from the title policy they're they're just saying that if you go back up here and read through this this is just saying that um if there's any mistakes or any uh any covenants or any uh exceptions or any additional shortages in in a survey then the title will not be amended is basically what it's saying which takes time and money so let's go down to the survey so the survey there's three ways this can go in my case my client had my seller had a survey i sometimes forget what class i'm in my seller had a survey so in that case i already see the survey in that case i'm going to select number one and i'm using i usually like say within three days because i'm staring at a survey okay in that case if for some reason they can't come up with a survey or their survey is not accepted then they we're saying the seller will pay for the server so that's number one sometimes your seller will say we don't have a survey and we expect the buyer to pay to buy a survey in that case i would pick number two and i usually give this is a this is an important thing to remember think about dates and this is not the contract class but we really need to think about this before you and i want you to go to michael uses contract classes because he he breaks this down so much that it takes him several classes to get through a wonderful so you will learn something i learned something every time i go but think in time okay you're trying your job is to protect your clients financial interest you don't want them to have to buy a survey until they've gotten through their option period because you don't want this to say within seven days their option period is 10 days we have a problem with the inspection and now we got to pay for a survey and a inspection that we're not going to use because we have to bust out of this okay so be careful not to put your client in financial jeopardy by not lining these dates out so if your client has to purchase a survey i usually make that like if my option period is going to be 10 days i'll make the survey to be purchased in 15. okay because we can set or within 15. so because we can that way we're not purchasing surveys before we even get to through our option negotiations so be very careful when you think about dates for your client don't put them in jeopardy of losing money unnecessarily that's what you want to do you want to line up these dates in your head another way is if we've negotiated and we say hey there's no survey and we expect the client the seller to buy one and then we can check number three and tell them how long they have to buy it and by the way these are dates that you're going to make sure that you have noted on your calendar and make sure these things happen within the time period that they have happened also if you read through number one it also states that they will have a t47 now here's another hint i don't ask for the t47 it's up to title to ask for the t-47 and by the way they're signing on that they're going to give me a survey and a t47 within three days remember yesterday when i said if you're listing a house you get your um seller to get fill out that t-47 before you even get a contract early on and this is why because they have three days to get this done and if they don't provide me with the t-47 it's a way like my client can get out of the contract so i just keep my little mouse shut about the t-47 let title take care of that okay because it is a way later that if it's not if it's not done it's a way for my client to get out of the contract not that i am telling you guys you ought to try to get your clients out of contracts i'm just telling you that if you have an issue if you have a problem these are the kinds of things you can rely on to help you along the way okay so objections most people don't read this but this is this talks about what the what your client is going to use the house for okay and remember this is a one to four family residential contract so what does it imply that the client is going to use the house for residential use so we don't have to put res you'll see it a lot people will put it residential use in there you don't have to put anything in there because unless they're going to have a daycare or unless they need to have their mechanic shop in the back or unless they want to put a giant boat house or anything like that then then you can leave that blank and then i put uh i usually put you know objections within 10 days and that means that they can go and look at all the covenants and the restrictions of the property that they're buying and if they needed it to use and use they needed to use it for the daycare and the covenants say no they can get out of the contract basically that's what all that means and by the way do yourself a favor and just spend some time reading this contract just as it's amazing how people don't read this contract um so now we're going to go down to i'm going to go down all the way down to number seven in my case remember i told you yesterday if you're the listing agent you put those sellers disclosures on the list on the listing so when someone wants to buy that property they see the seller's disclosures they see the survey they see the exclusions they see everything this is why because if i see that seller's disclosures on the listing i'm going to check number one under b so the sellers this the buyer has received the notice if they have not received the notice which i'm going to be honest with you i've never checked this because i i wouldn't make an offer on a house i haven't seen you notice i mean i we're going to see the notice but just in case maybe you see you know there's 47 buyers and you want to be one or you know something's going on it just went on the market they don't have them then i'd choose number two and i would give them no more than three days to produce those disclosures so in my case they have received the notice there are very few reasons why the seller is not required to furnish the notice but if that's the case then number three would apply okay almost always always we end up saying the buyer accepts the property as is now remember we haven't got to the option period part so what this means is after the option period negotiations and everything is done that is supposed to be done the buyer accepts the property as is because remember the option period is an exception period okay if we already know for some reason that the seller has said okay i'm good but um okay i'll i'll replace the roof you know i know there's a big tree falling on the roof and i'll replace them then i would put that in here under number two all right and then the next thing we're going to fill out is number it's on page five and it's of course not seven it's h and it's about residential service contracts i almost almost always um ask for a residential service contract i feel pretty strongly about this and i uh and you want to make sure that you ask for enough to cover the house so be careful in terms of let's say you have a 4 000 square foot house and it has a pool that's about 750 to get the middle of the road um 750ish maybe 800 middle of the road coverage plus pool so be careful about how much you ask for 575 covers the average size house under 3 000 square feet and a pool so you're pretty that's why it's pre-populated but if you need to change that be sure to change it and what this means is that you're asking the seller to purchase a residential service contract of your buyer's choice valuing up to 575 dollars so if they chose something 600 then they would owe 25 and close your buyer would okay and then it says broker fees are paid um that oh they're in a separate written agreement now let's talk about our closing dates these days you guys closings are taking a long time we used to do standard 30 days for everything it was the standard in the whole industry 30 days 30 days 30 days today i would put 45 days on here unless you have a cash buyer but especially if you're talking fha loan va loan appraisers are running late you can always close early but i would put 45 days on here that's my truth today you know sometimes my truth today is my lie tomorrow but um so we're gonna look at our little calendar and we're gonna go what's today today is the 18th so i'm going to go [Music] i'm just going to go ahead and for class purposes we're going to go december 16th possession upon closing and funding or according to a temporary residential lease let's say that we already know that we've already talked to the listing agent and the listing agent said all that's fine but my client can't move out until their house is built so we can't move out until january 15. we can go ahead and close we like that but we need a lease until january 15th then i would put there's a forum for that and so then i would put according to a temporary residential lease and that tells me i need to have that lease now you guys again when you're thinking about how do i get paid when you fill out your back agent portion you gotta include that lease anything on here has to go into back agent okay if it says it in here it says it in back aging so again special provisions if anyone has an example of where they would put special provisions in here i have not done that in my um in my business i i think there's just about a forum for an amendment and an addendum for just about everything you would ask for so i don't have an example of when you would do that i will tell you it has to be fact-based it has to be task oriented and have consideration to be part of a a contract now let's think about settlement and other expenses if you go down to b you will see that says seller shall also pay an amount not to exceed blank to be applied to the following order buyer's expenses with which buyer is prohibited from paying by fha va texas veterans land board or other government loan programs and then to other buyer expenses as allowed by lender what that means is you're asking the seller to contribute to the buyer's closing costs and i have used this very successfully sometimes you know this is not an ask for the moon thing but when i have when i have a buyer client that has a cash flow issue and i have a property that is well within the cops okay well within the cops or let's say i have a property that maybe has been on they like a house that's been on the market for in this market 60 days 60 days to be a long time in this market so then that's when i i could negotiate with the with the seller i could say we're going to pay your asking price but we're going to ask if your seller will contribute two thousand dollars to my buyers closing costs so see that helps them with their cash and it also um keeps i need to make sure i keep my house in appraisable range is what i guess i'm trying to say so you need to consider the whole offer put yourself in the in the seller's shoes is this a good offer to them does this look like something they would accept and so uh and of course you're gonna negotiate from here but i have many times ask a seller to contribute to a buyer's closing costs very successfully and it's very helpful with buyers that are you know close on the cash and by the way um you need to work very closely with your lender there are many many reasons to have lender partners that's why we have jackson henry that's why we have close relationships with our lenders because i i many times call when i'm talking to my lender millennials say cheryl i don't see the cash and i haven't seen the cash when you're doing a offer see if you can get them i think they need about 1500 so see if you can negotiate that in your in your offers so my lender will tell me you know many times if i need to do that and then the other way is you need to make sure that you're not asking for too much because just because the buyer i mean the seller agrees to pay ten thousand dollars in closing costs that doesn't mean the lender can allow it so we need to be careful about how much we're offering a a client or a buyer work with your lenders so in this case we're not asking for anything we're going to leave that black i'm going to go down again i'm going down i've just about i make sure that my buyer i've got my contact information in here and i make sure that i have all the appropriate uh amendments so i need a third party addendum i need a an hoa [Music] i need let me see what else we have i don't need anything else i don't need a temporary lease i'm looking through here it's not an old house i don't need a lead-based paint i think i'm good i think i've got everything here so now let's talk about option periods so termination period my favorite option period is 10 days if i can if i can get a listing agent and a seller to agree my favorite option fee is 200 and my favorite option period is 10 days so um and that's pretty much standard for me and i tell you why i think that if you think about getting in my mind i need to get an inspector out there in this market and sometimes that takes me a couple days i need to get my inspection then i need to get the inspection report back from the inspector that's another 24 hours and then my poor buyer who maybe has never seen one of these before has to absorb this information we have to review it i need to write an amendment i need to get it to my buyer and then our negotiations start so really i think in most cases i've eaten up four or five days and all that so um especially you know you have a good inspector that stays busy so um i shoot for two hundred dollars in ten days every once in a while a seller will push back and ask for more uh option fee but for the most part that's pretty much standard this means that just as a review that your client can for any reason or no reason terminate the contract and get their earnest money back not their option fee okay not their option fee i always explain that to my client it's a fee and that's the fee part and um the earnest money is goes toward their purchase the option fee will go toward their will be credited if you check the option fee will be credited to the sale price at closing we pre-check it for you but it doesn't mean that if you bust out if you don't buy that they'll get their money back because they won't and we have a place to make absolutely sure in my life i always remember i'm the easy to work with agent right so in my life i fill all this out on the listing broker firm side i fill all that out for them and let me show you how to find that so i go back to the listing see i need this listing so i have it right here i go back to the listing just in case you guys haven't done this yet are y'all still alive on there is everyone okay online okay we are thank you cheryl you're welcome okay um so when i go down to my listing it's really really easy to do this and it goes a long way so i just click on tracy's name right there i click on tracy's name and i have her license i have her email address i have her phone number i have everything i need and then i can also go back and click on her brokerage and have all of that information so i complete all of this information for her and make sure that you know we've got everything in there so really when someone gets my package they just have to sign you know just send it to your client have them sign it and all i want is your agreement don't forget don't don't work for free please don't work for free and i need to put my slowly two percent down there there it is so um so i need to fill that in i see more times when people do not fill that in it's kind of scary and i'm finished with this so i'm going to save it any questions about the one to four because that's a lot i don't want to share it yet now i want to talk to you let's talk about what goes with the one to four we are are we good online you guys but we got some okay yes yes okay all right so we're going to go to the third party and i want to talk to you about the third party addendum because i see uh this is booboo land let's talk about this is back to protecting your client so in this case i'm going to pretend that my client has a conventional financing and they're going to get a first mortgage loan in the principal amount of 270 thousand dollars [Music] and there it's due in full in 30 years i just go through here and fill in the blanks the interest rate is not to exceed let's usually i bump up whatever their letter says so if my client said letter says 2.75 i'll say 3 because you never know what happens and i want this to be true and correct 30 days from now and i tell them that you know they go why are you telling why are you telling them i'll pay three percent i'm not i'm saying that for contractual purposes if you can get finance up to three percent we're in okay that's what that means and so because you don't know i mean the interest rate could go up we don't know the future and then you know it's going to be that way for 30 years we don't have arms very often anymore and then the loan estimate the i'm sorry the origination charge is for the loan not to exceed one percent of the loan unless it's guido it should be you know right there within one percent we don't see second mortgages any uh often very often anymore but um you know if that were the case you would complete that if you got a va loan you go down here and complete that or an fha loan you just choose which one you have and complete it your information is on that pre-approval letter that you need now very important down here in number two it says buyer approval and it's pre-populated for 28 days you're going to get some agents especially agents that have been around a long time to push back on that we pre we pre-populate that we used to pre-populate 21 days and if i had a va loan or an fha loan i'd pre-populate for 25 days but loans are taking longer and people think agents think that if you do a one if you fill out the first part that you are protecting the seller you're saying don't worry we're going to get financing within 28 days but that's not true you're giving your buyer 28 days to get financed and if for some reason their financing falls apart in day 25 their earnest money is protected so that's why you want to pay attention to the state and by the way if 28 days passes and your lenders can't make it happen you get an amendment to change that date if you don't have an amendment to change that date and you still don't have appraisals and you still don't have everything the lender needs to get to underwriting change the state so um and then there's this i had this happen to me i was telling doug about the other day i have a listing where the buyer's agent sent to me a uh in her mind they had the buyer has money okay and so in her mind they don't this contract is not subject to buyer obtaining buyer approval she actually checked that i cannot believe this person checked that because basically what she's saying to me is if this falls apart you get to keep the earnest money that's really what's what's happened so be very i don't think i would ever ever ever even if it was true even if your client was sitting on a mountain of money i can't see when i would check that so uh because what you're saying is my client can't get out of this if they're if they're financing fossil fuels so really this is a check for you and it's it's widely i think it's widely ignored because in our life in our industry we just put 21 and 25 days in there and if everything went on fine we just went on i mean you know it was just too routine but there's a lot of opportunity for you to protect your buyer right here in this in number two so um if you have an fha loan there is a provision in here that um and by the way there's another this is kind of redundant because there's another document you're most likely going to yeah the seller is most likely going to have to sign from the from fha and va that basically says our client gets out if um their house doesn't appraise and so you want to put whatever you're buying the house for so if the house and this is 300 000 if this was an fha loan i put 300 000 okay so i'm finished with that i'm going to say questions about the third party financing hey no stump the chump okay what did i say not say all right now in my life here in our buyer's stocks there is an addendum for property subject to mandatory uh i that that is really a seller's document so remember yesterday we talked about this two sellers documents there's the hoa and there's the um the um notice of a mud district i never fill out the notice of a mud district for a seller because that's a way i can get my buyer out of a contract it's a no-no to deliver uh to uh have a listing and not disclose that there's a water district in the case of a hoa if this seller has not been smart enough to put their hoa agreement together i put it together for them and here's what i do so let's just pretend there's an hoa and they did not send me an hoa so i'm going to put bubba's hoa and whatever his number is number okay and then i'm going to put down here i'm going to say that within so many days after the effective date of the contract the seller shall attain pay for and deliver the subdivision information to the buyer i'm going to say within 15 days they were the ones that didn't write it up i you know i would like to help them and then right here i'm going to put that it under c i accept as provided by paragraphs a d and e buyer shall pay any and all association fees and and or other charges associated with the transfer of the property not to exceed okay i don't want to cause attention so i'll put 200 that means i've got my client in for 200 bucks and under e where it says and it's pre-populated for you so that now i'm saying that the seller shall pay the title company costs for obtaining the information so and that could be a lot of money in some hoas so if that listing agent my message to you if you're the listing agent do not let this happen do not let me come along with my buyer and you did not fill out the hoa and put it online so always always always put it online but if your buyer you're representing a buyer and this listing agent has not done that then you want to put fill this out to your clients to your clients benefit and you know hoas and third-party financing addendums things like that there are little pieces of money that can cost your client money and when you're talking about a first-time buyer and a little couple that have saved a little bit of money to buy their first house you know you need to be careful about a little bit here and a little bit there we get very used to those amounts and we don't pay attention to them like we should but we really want to work on our clients behalf remember that's our job here at abby we need to complete we do have which i'm not familiar with because i just found out yesterday so i'm going to be honest with you we do have a and this one's not fixed but there it is okay we do have an agreement with the american home show that you can you can obtain additional funds by using american home shield i do not know the particulars i'm going to be really honest with you i i will find out and make and ask that we send out a notice but now because we have that agreement with american home shield we have to disclose that we have it doesn't mean you have to use american home shield and and i you know make sure your client knows they have choice there they choose the the home warranty group of their choice but if they choose american home shield they have to know we get money and so you'll have to have them fill that out because remember we said that they're going to choose they're going to get a warranty seller we hope to seller buys that and we still need attila we still need to furnish still arrest information that we need to advise them that just by business we're going to have information regarding this transaction in their financial the price of the home and their lender information so this is autumn this is auto populated for them i don't spend a lot of time on it okay now let me make sure i've got everything oh in general information and notice the buyer make sure you sign it made this mistake no you know what i used to say to my kids learn from mistakes they don't have to be your own well in here they can be cheryl's past mistakes and you can learn from them and not do them so and i have forgotten to do this because it's kind of so going down here i need to sign it before i send it to my client going going it tells us everything that bad could happen to them and i'm going to sign it now because i'll forget and here we are okay all right now before i remember from dot loop class we have things that we have signed that we have to sign and send with this packet so i'm going to i want to make sure everyone's okay let me check again are we okay okay all right and remember we have things we saved that we have to um have our client sign and i saved mine to a file so i'm going to put them in here where did i put it i think i put it on your class and here we go and i save them and just as a review your number one your client needs to sign and submit everything that they have provided in requested signatures have your client look at i mean it first of all your client is signing that you provided these and that they understood they read them that's what they're saying so they're not agreeing to anything they're just saying yes we provided and i read them and except for the seller's exclusion list they're agreeing that whatever's on this list will not be included and by the way this one's naked we're going to sign it anyway just for fun not just as a review our buyer what we can do is we can if we have a flat file that we added that we can add a signature this way there's a couple ways to do it my mouse and i aren't getting along see i'm having fun okay let me escape there he is oh yeah i got it okay and then i'm gonna assign i added a signature now i'm gonna assign the field and i know fred needs to sign it so i've got fred there and then i'm going to save that's one way i can do it another way remember i made my um i made my templates with six common signatures that i need you want to share this common signatures that i need so i can go to the seller's disclosure and i can under more uh-huh why isn't this oh i wonder you know what i know what it is i hope that's not what it is under more not having fun oh i lied under file i always lose this under file i can say apply template and it'll ask me what template i want to remember i made myself a template and so there's two sellers disclosures it's this one i want sellers disclosure and then i can so i added his signature and i can uh it's right here can be signed by fred flintstone so it's he's all set to go so he's assigned to fred good so i added my template that i made for myself so that i wouldn't have to go through and copy and paste and copy and paste and copy and paste all those signatures so i save all that now so i've talked to my client along the way i want to stop here because i want to talk about i've talked to my client along the way and as i talked to my client i um i noticed that i want to make sure it was up here i i've told my client okay i'm going to send you the documents to sign so we've been talking he's talked about you know the offer that we're submitting you know what he what he wanted blah blah blah blah time frame all this stuff um now another thing we didn't discuss and it's not one of our pre-completed forms but um i want us i want to stop i'm going to do a commercial break i had one thought now i want to stop and make sure i cover this one of the documents that's not included here but you need to pay attention to if there's there are non-realty items non-realty items would be the refrigerator common non-realty item um my client walks that i had one site that gosh he just wanted these poor people to leave with their toothbrush and never come back so um whatever you know your client wants to include that is really not part of the real estate so that would be a washer and dryer a refrigerator all those things what you need to do is you add a non-realty addendum so let's go back this will get a lot of fun experience finding addendums let's see where is that thing track let's try non-realty yep non-reality items remember when i don't know where the form is i can just kind of go on my easter egg hunt i can go to trek interactive forums and start typing and they'll come up if not i'll go to tar and look in there so okay non-realty items there you go and when i fill this out and i want it to be included i'm going to put nothing here nothing in there and then i'm going to specifically list like if it's a refrigerator i'm going to say refrigerator and kitchen if it's the um if it's um the refrigerator in the garage i'll put the refrigerator in the garage if it's a couch i'll put the couch in the upstairs game room i'm very specific about what those non-realty items are and and and then i just list them out here okay so i'll just put i wouldn't say preaching we're going to hurry kitchen okay so i just wanted to make sure you go over that make sure to remember is there anything non-realty that my client wants to include um i i don't think i've never gone that far i just put where it's located in the house you know and um so um now i'm ready to send this to my client to have them sign i do this in two ways two emails i put all the forms that and the um amendments about 9 minutes but addendum that only i need for abby realty i so i need the tiller for abby realty okay i need the general information for buyer for ad i need the um the iabs and the residential buyer tenant representative agreement that's internal to add i need those things and then i need so those are the disclosures i need to share with my client and then in a separate document i send all the contract related things and the reason i do this is because one of my favorite things about um about dot loop that makes a really nice package is once my clients signs i can take all of those documents and i can and i can download them in easily one document offer a package here you go okay and i can share um with um the other agent so i can just share that those things with the other agent through dot loop so i have some some flexibility and plus it kind of keeps things straight between the client and i about what they're signing because i send them a little email that explains these are the disclosures i have i've done some template emails so that i make sure that i explain things to my clients because i can go in and quickly change my templates but i have an email that i send them that tells them i just forwarded you two emails via doc the first one contains these disclosures i'm required by abby realty and the state of texas to share with you and i list them out so you know ibs general information all that i was not and then the second email i sent you is our offer package and it includes the following and i told them a offer of 300 000 with a loan episode of 70 000 and a closing date of the state and a request for um a home service group so i line it all out so they can not only go over through it but they can look at it okay i always want it's very important to me that my client feels informed and i get a lot of feedback about that by the way a lot of positive feedback about how i inform my clients so um i just find that helpful and i find it helpful to me to keep that segregated and make sure i have it all the other thing it helps me my template because i have my little template to kind of give me a double check that i give them everything okay so those are the other two things once my client signs this i remember i want the other agent to like me so i send an email and it says um and it says on behalf of my clients we are respectfully submitting the attached offer our offer includes and i list the summary of what we're including what we're asking for so that agent they simply look at it and then they can go look at my offer and so and i feed them everything they gave me i give back to them so they gave me a uh um sds they get sds back signed with the contract all one package so that's kind of how that's really how this goes down and i'm looking to make sure i didn't leave out any forms that you need to i think we're good don't forget your buyer's uh checklist transaction check transaction checklist and also you know your buyers walk through and acceptance is going to be taken care of way down so you're going to have other forms that are included you don't need them now but i think that's all i had to tell you about how to submit a buyer's rep package what questions do you have or what did i leave out that you wanted me to talk about cheryl this is chris i have a question yes so whenever you're having to kind of go back and forth during negotiations and then forms need to be re-initialed and re-signed what do you ultimately have to keep in dot loop and and sorry that's my shih tzu in the background snoring but um where do you do all that like where do you make changes to the initialing and all that indulgence going back and forth how i take care of that is i save a copy of the initial off well it depends on so my my client signed it right so i have to save it because they signed it so i save that in a file and then i continue to manipulate that go back and change what i need to change on the one to four and when i change that it's gonna i'll get a notice that says any changes will delete the the uh signature but i just go back and make the change here on the one to four let's say we came back and they said no we want our full price and you need to add back in the 2000 then i would add that back into the price fix the price and resend it to my client to sign because what i would only resend them what i need them i don't send them the whole package again i just send them back what i need them to sign again so that's how i save a copy of what they signed uh on on my file and then in dot loop i change this and keep signed does that answer your question it does thank you and is there anything that needs to be submitted in dot loop or does one of the admins review all the documentation in here or is it just back agent uh they review in back asian i mean they can go to dot loop and i'm thinking that you know if i was your coach and and if i was like trying to help you i might go i mean you're at your coach has access to this but they're really from a a i guess compliance perspective see i don't like that word but uh quality assurance perspective um they are looking at your work in a back agent what you submit to them in backage thank you anyone else anything that we didn't talk about we want to talk about okay i'm passing out the test all right you guys thanks so much i appreciate it and i guess we'll see you second we well no if you have gone to dolla you graduated today from my classes if you've gone to uh last week and for anyone that sat through this and did not go to fast start two and three that's the second week of december so um and we'll be doing that okay guys thanks so much i appreciate it thank you thanks thank you thanks bye you guys have a good day [Music] well okay doug you didn't fall asleep i thought that was really nice of you