BENEFITS OF HOME OWNERSHIPBENEFITS OF HOME OWNERSHIP•ACCUMULATION OF EQUITY ACCUMULATION OF EQUITY As you pay down your mortgage and your home appreciates in value, you gain equity in your investment. This equity can be a valuable financial tool for the purposes of credit worthiness and financial stability.

•APPRECIATIONAPPRECIATION Many people view their home as a hedge against inflation. As the dollar looses value Real Estate has consistently appreciated in value over time . As your pay check buys less, your home becomes more valuable.

•MORTGAGE INTEREST DEDUCTIONSMORTGAGE INTEREST DEDUCTIONSTax laws heavily favor home owners. Interest, the largest part of your payments, is fully deductible on your tax return. Property taxes paid for a first home or vacation home are also fully deductible. Rent is not deductible.

•CAPITAL GAINS EXCLUSIONCAPITAL GAINS EXCLUSIONAs long as you have lived in your home for at least two years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains taxes when you sell your house.

•EQUITY LOANS EQUITY LOANS Consumers can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical or starting a new business.

•PRIDE OF OWNERSHIPPRIDE OF OWNERSHIPThis is a central reason people buy their first home. Peace of mind knowing that you can decorate any way you like, paint rooms whatever color you prefer, even make architectural improvements. All this with the knowledge that these projects will increase the value of YOUR property while improving your quality of life.

•Agency Relationships (Who’s Who?)Most Realtors you meet, whether at an open house or office, by default, represent the seller of the property. This means they have a duty to the seller to get the most money for the property as possible. All real estate agents are NOT the same and you, as a consumer, should be acutely aware of the legal differences. Listing Agent, Disclosed Dual Agent, Exclusive Buyer Agent; who are they? Who do they represent? What factors should be considered before selecting the appropriate agent to work for me?

•Listing AgentThe Listing agent is hired by the owner to market and sell their property. They represent the seller’s interests and have a fiduciary duty to the seller. Their obligation is to get the most money they can for the property they are listing. All agents have this duty to the seller unless you have an exclusive buyer agent agreement with a particular agent.

FIRST THINGS FIRST•Exclusive Buyer AgentAn exclusive buyer agent is one who is under contract with you to represent you, to the exclusion of all other agents. An exclusive buyer agent has a fiduciary duty to the buyer to attain the property at the lowest price and owes the highest level of loyalty to the buyer.

•Disclosed Dual AgentA dual agent is a real estate agent who has signed a buyer agency agreement with a buyer who wishes to purchase a listing held by that agent. A dual agent must be loyal to both the buyer and the seller. In Texas, it must be agreed to by all parties, in writing.

The appropriate agent to represent you is the one who owes you the highest degree of loyalty and a fiduciary duty. An agent under contract with you, the buyer, assures a level playing field in negotiating and procuring your new home at the best price.

•Agent has a Fiduciary Duty to ClientAgent has a Fiduciary Duty to ClientYour buyer agent has a fiduciary duty to you, the buyer, that means they have a pledge of ;1.Obedience - to carry out all lawful instructions of the client.2. Loyalty – to act in the client’s best interest.3.Confidentiality – to keep client’s information or discussions confidential. This obligation survives the termination of the agency relationship, but does not apply to legally required disclosures such as known physical defects of property. 4.Accountability – To protect and account for all money, documents, or other personal property of the client. 5.Reasonable care & Diligence – to act competently with capability to perform those duties within the scope of license requirements.

•OBLIGATIONS OF THE CLIENTOBLIGATIONS OF THE CLIENTTThe Buyer will work exclusively with the agent during the term of the agreement . When interacting with other agents make them aware you have engaged the services of an exclusive buyer agent. Buyer will provide agent with accurate personal and financial information and cooperation in scheduling and attending showings. Buyer shall pay for all out of pocket expenses, including inspections, surveys, appraisals, title searches, etc. Buyer shall provide any lender’s letter of pre-approval to agent within seven days of receipt. Remember your agent’s area of expertise is Real Estate, they will advise you to seek professional advice in matters outside their area of expertise such as legal, financial or other professional disciplines.

WHAT ARE THE STEPS OF HOME BUYING?WHAT ARE THE STEPS OF HOME BUYING?•GET APPROVED FOR A MORTGAGE•Credit report, FICO score, type of mortgage, shop for the best rates and programs that meet your particular needs. Get pre-approved or pre-qualified before beginning your home search.•DETERMINE YOUR NEEDS Accredited Buyer Representative (ABR®) will conduct an in depth needs assessment to inform them and help you clarify your particular needs. •SEARCH FOR A HOMEYour agent has powerful search tools to help identify and track properties that fit your profile. The Multiple Listing Service, Waller Group Website and other tools are available in order to aid you and your agent in the search for the right property. •DUE DILLIGENCE Your buyer representative will aid you in learning of zoning changes, liens, easements or any other restrictions on the ownership and enjoyment of your property.

•PREPARE OFFER & NEGOTIATION Your agent will prepare a property value study and ask the seller if there are any other offers, deadlines and more.

•CONDUCT HOME INSPECTIONS Your agent will help you take advantage of inspection contingencies in your offer and get through inspections, eliminating surprises that can derail the process.

•FINAL NEGOTIATION AND P&S Your agent will use the inspection report to help you re-negotiate, if necessary

•WALK THROUGH AND CLOSING The final walk trough is typically done within 24 hours of closing. It is an opportunity to check that all contingencies have been met and the property meets your requirements. After final walk through to check your property, your agent will assist in a hassle-free closing.

KEYS TO YOUR NEW HOME!

1. Mandatory Disclosure:The Information About Brokerage Services form is required at the outset of a business relationship between a real estate agent and client. It must be signed by the parties before an agent can discuss a particular property with a consumer. This form spells out the Agency Relationships mentioned earlier. The form stipulates the particular relationship of any given agreement between the parties

. 2. Exclusive Buyer Representation

Agreement:If you decide to work exclusively with a buyer agent to buy your home, this agreement spells out the terms of the agreement including the length of time it is to remain in force, the commission, buyer’s obligation and other critical components of the contract.

3. 1-4 Family Residential Contract:This document, Residential Contract spells out the terms of your offer to the seller for the purchase of the property. Note that a deposit of “earnest monies” is expected at this time, usually between $500-$1000 in the form of a personal check. Also any option money is due at this time.

4. Amendment to Contract FormThe revision to the offer is made on the Amendment to Contract form. It serves as a record of any changes to the original agreement in the contract. This could be a change in the offered price, in order to come to an agreeable price or a conditional change in terms, such as appliances remaining with the property.

5. Third Party Financing Addendum lets all in the transaction know what type of financing the buyer is getting and at approximately what interest rate.  

COMMON PITFALLS WHEN BUYING A HOMECOMMON PITFALLS WHEN BUYING A HOME•BECOME A “CERTIFIED” HOME BUYEROne of the most common mistakes people make is failing to get pre-approved or pre-qualified by a mortgage lender. Seller’s and their agents are often skeptical of a prospective home buyer’s ability to obtain a mortgage when the buyer has not been pre-qualified. An offer from a qualified buyer is taken much more seriously than one from a buyer who has yet to begin the process.

•NARROW YOUR SEARCH TO HOMES YOU CAN AFFORDPutting the bulk of your earnings into your mortgage payment detracts from your quality of life. Plan carefully when buying your home and consider that your mortgage payment is not the only monthly payment associated with your home. Taxes, insurance and other monthly obligations must also be met. The mere fact that you can qualify to purchase a particular property does not mean you can actually afford it.

•DO NOT RUSH THE PROCESSTake your time! Find the right home based on sound criteria. Try to remove emotion from the process as much as you can. Remember, when you enter into a contract for a particular home your chances of rescinding the contract without significant expense, is slim.

•GET A HOME BUYING ADVOCATE & EXPERTEmploying the services of a Realtor makes great sense, since navigating through the home purchase process can be complex and fraught with financial challenges. As the buyer, you should have your own agent who will be fully committed to your best interest. The seller’s agent will always favor the interest of the seller, your buyer representative has the effect of leveling the playing field, making sure your best interests are also represented in the transaction. The commission paid at closing includes the buyer agent’s share, so you should make sure that agent has a fiduciary duty to protect YOUR best interests. •RETAIN THE SERVICES OF AN ATTORNEYThroughout the process legal questions can and will arise. It is a good idea to retain the services of an attorney. Do not rely on your real estate agent or accountant to answer legal questions. You may also want to have your attorney at closing to ensure your rights and privileges are fully protected during and after the closing.•BE DISCRETE When looking at open houses or talking to a seller’s agent, play your cards close to your chest. If you are crazy about the place, do not let on, be reserved. Let your buyer agent, who is looking out for you, know how you feel so they can help you aggressively pursue your goals without weakening your bargaining position.

Nnenna UmehNnenna Umeh““Neighborhood Specialist”Neighborhood Specialist” 5115 McKinney Ave. Dallas, Tx 75205 Office: 214-736-1500 Cell: 972-926-3391 nnenna@loganwaller.com

•Professional AssociationProfessional AssociationTexas Association of RealtorsNational Association of Realtors MetroTex

•EducationEducation-University of Texas at Austin-Bachelors in Business Administration Accounting-University of Texas at Austin-Masters in Professional Accounting-Champion School of Real Estate

• SpecialtySpecialtyFirst Time Home BuyersSellers Representative Specialist