John Smith

1. Buyer Consultation John Smith

2. Agenda • Communication & Feedback • REOs, Short Sales, Probates; What “As Is” Means • Writing Offers • Agency Agreement • About Me & Pinnacle • Open Houses • How To Get Started • Why NOW is the time to Buy • Current Marketplace • Your Wants & Needs • Meeting with Loan Consultant • Purchase Agreement • Negotiation & Protection

3. Why Buyers Should Buy Now • INTEREST RATES ARE EXTREMELY LOW !!! Compare these rates to the rates over the last 30 years & then ask yourself these questions: “How long will these low rates last?” “Is it more likely that these rates will rise, or get lower in the market to come?” Prudent Buyers are Not Waiting.

4. Why Buyers Should Buy Now • LONG TERM EQUITY GAINS !!! Look at the huge amount of equity homeowners have gained in each of the last four decades!! Are we being short-sighted to think this will not happen again?

5. Why Buyers Should Buy Now • “Waiting to Buy” could be detrimental to your purchasing power & long term cost! PRICES ARE CONSISTENTLY GOING UP.

6. Return on Investment January 2000 – February 2014

7. “The housing market has bottomed. It's not too late to get involved. I still think buying a home is the best investment any individual can make. Affordability is still at an all-time high. Buy a home and, if you can, buy a second home.” John Paulson

8. Demand

9. Housing Affordability Index* *Percent of households who can afford to purchase the median-priced home in the Los Angeles region

10. Historical Interest Rates

11. “I was one of the most negative on housing. I finally came to the conclusion housing looks like a decent place to put money over the next several years … For those of you renting or on the sidelines, I recommend you at least consider getting ‘back in’ and buying a house.” Mark Kiesel, the PIMCO managing director who just purchased a home.

12. HOME MORTGAGE INTEREST RATES (30 YEAR FIXED) % HISTORICALLY CURRENTLY 8.69 4.50 In the FUTURE? Average Mortgage % Rate 1972-2012 Today’s Mortgage % Rate “I don’t think the Fed ultimately would be troubled with a 6.5% mortgage rate.” The annual difference in mortgage payment (P&I) on a $250,000 home loan if rates go from 4.5 to 6.5%. $3,761.52 - Doug Duncan, chief economist at Fannie Mae 6/2013 6.06 Average 6.06 Average 4.78 Average before the financial crisis after the financial crisis

13. “We very much believe we’ve hit bottom.” Ivy Zelman - renowned housing analyst nicknamed ‘Poison Ivy’ for her harsh positions on housing over the last several years.

14. Bears Turn Bull

15. Wants & Needs • Bedrooms, Baths, Pool, Family Room, Backyard, Kitchen, Master Suite, View, Amenities • Let’s Discuss Your Price Range • Let’s Go Over Some Areas & Neighborhoods That Might Be A Good Fit For You.

16. Meeting with Loan Rep • Let’s take a few minutes for you to meet our Loan Consultant. This will be a confidential meeting, and will help you get a better idea of your affordability and the loan process.

17. Purchase Agreement • Here is a copy of the California Association of Realtors ® Residential Purchase Agreement. • Let’s Review: • Page 1 and Page 2 • Liquidated Damages • Arbitration of Disputes • Home Inspection • Contingencies

18. Negotiation • Best Possible Price • Escrow Period • Seller to pay Buyer’s Costs & other Financing Terms • Home Inspection Requests • Contingency Time Periods • Possession Periods • Rent Back or Early Possession • Home Protection Plan – Dollar Amount & Company • Personal Property • Amount of Deposit

19. Protection • Not over-paying for the • home – CMA • Prelim Title Report • Home Inspection • Property Profile • Home Warranty Policy • Help in getting the Best Loan • Requesting Contingencies • Disclosure Issues • Home Inspection Requests • Concerns over method of Termite Repairs • Loan Documents / Terms of the Loan • Purchase Agreement / Counter Offers / Addendums • Asking the Right Questions of the Listing Agent • Protection of your Deposit • Ordering Appraisal • Help in Vendor Choices • Addressing issues of Bankruptcy, Foreclosure, Probate, Divorce • Packing & Moving Issues

20. REOs, Short Sales, & Probates • Advantages & Disadvantages of “As-Is” Properties • What “As-Is” really means. Do buyers get a home inspection on these types of properties? • Short Sales • Special Clauses and Time Periods to be aware of

21. Communication & Feedback • It is very important that you communicate your feedback on each home we see. I want to know your likes and dislikes, and also let me know what you think about the price of each home.

22. Writing Offers • Once you have found the home you wish to purchase, you will need to determine the offer you are willing to make for the home. • It is important to remember that the more competition there is for the home, the higher the offer should be – sometimes even exceeding the asking price. • Make offers you want the other party to sign. Be realistic.

23. Writing Offers • I will present the listing agent with a written offer. • When the seller accepts an offer, it becomes a legal contract. • When you write an offer, you should be prepared to pay an earnest money deposit.

24. Packaging Your Offer • Cover letter with a table of contents • Contact information sheet • Letter about me – your agent • Letter from you to the sellers • Strong pre-approval letter • Proof of credit – fico scores • Agency disclosure • Purchase agreement & addendums • W. P. A.

25. Agency Agreement • Let’s Discuss What Agency Is. • Buyer Brokerage.

26. About Me & Pinnacle • Let me tell you about myself. • Pinnacle – Rated # 1 In Los Angeles County for Number of Sales. • All seven of our offices work together. • We have the top foreclosure agents, top farming agents, top Sphere agents. • Office Exclusives & Pocket Listings. Pinnacle Bulletin Board.

27. Pinnacle is #1 Again

28. Open Houses • WHAT TO SAY & DO WHEN YOU COME ACROSS HOMES ON YOUR OWN: • If you see a home you like on the internet, in the newspaper, or while driving by, call me immediately. Do not contact the other agent. (This will prevent you from being forced to be represented by an agent you do not know well or may represent the seller.) • Call me & be prepared to give me as much information as possible on the interested property, & I will give you complete information. • If you see a house you want to look at, always call me for an appointment.

29. Now We Are Ready to See Some Houses!!