Sedona Real Estate

Buyer Orientation

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The Two Main Reasons  People Buy Homes:

Tax Advantages

Property taxes and qualified home interest are deductible on

Schedule A, for itemized deductions.

Investment Potential & a Guard Against Inflation

The largest investment for most people is their home. Over the past 20 years, investments in homes have far outpaced inflation. Homeowners build equity and, in most states, can borrow against it.

Tax Benefits

Section 1034 of the IRS Code allows a homeowner to transfer the gain from one principal residence to another if the replacement is purchased within two years prior to or following the sale. If the new home costs at least as much as the adjusted selling price of the existing home, it is not necessary to actually re-invest the cash equity from the home being sold to defer paying income tax at that time.

Homeowners over 55 years of age and meeting certain requirements can have up to $125,000 of gain excluded from Federal Income Tax. President Clinton is proposing additional capital gains savings on the sale of a residence with as much as a $500,000 capital gains allowance.

We are a MLS (Multiple Listing Service) Member

As a member of the MLS, I can show you any property. If you should see an ad in the paper or a sign in a yard, call me to find out the information. If you want to see it, I'll show it to you. With our new MLS computer system, I can even show you color photos of listed homes right from my office.

New Homes

I can work with most builders and can get all the information you need to make any decisions, but I will need to accompany you to the property on the initial visit. I can also help you find an architect or designer or a custom home builder to build your dream home on your lot. By letting me help you with builders, you get all the services offered in this presentation and those offered by the builder as well. You'll get more, but you won't pay more for it.

Pre-Approval Program

Many buyers are applying for a loan and obtaining approval before they find the home they want to buy.

Here are the benefits:

• You look at the "right" homes.
• You save money dealing with a comfortable seller who knows that you are pre-qualified.
• You close more quickly.
• You minimize trauma of not knowing whether or not you qualify.

We are a MLS (Multiple Listing Service) Member

As a member of the MLS, I can show you any property. If you should see an ad in the paper or a sign in a yard, call me to find out the information. If you want to see it, I'll show it to you. With our new MLS computer system, I can even show you color photos of listed homes right from my office.

For Sale by Owner   (FSBO)

A homeowner trying to sell his home himself is usually doing so in hopes of saving the commission. Coincidentally, this is the reason a buyer wants to deal directly with a homeowner. Many times a homeowner will work with an agent, even though his home is not listed, if the agent introduces the buyer to the property.

If you should see a FSBO and want the advantages of my services, please let me contact the owner and set the appointment. I can protect your interests and represent you in the transaction.

Property Inspection

You can include a provision in the sales contract that gives you the right to inspect the mechanical, electrical, plumbing and structural portions of the property. This inspection generally costs from $150 - $250 and is at your expense.

There are inspection companies that provide services of this type. You can accompany the inspector to ask questions and receive a written report itemizing any areas of concern. If repairs are needed, you can request the seller to make them in accordance with the provisions of the sales contract.

Home Protection Plan

As an additional benefit, some sellers provide a Home Protection Plan for the buyer. This coverage is good for one year on selected items:

• Central Heating System
• Electric Central Air System
• Interior Plumbing
• Built-in Appliances
• Electric Pool Equipment

If the home you choose does not have a Home Protection Plan, you can aquire the coverage yourself. Plans generally cost from $325 to $425.

Buyer Agency

As part of a mutual agreement, you can elect to create a buyer agency relationship between us that will entitle you to the fiduciary client level services that include:

• Loyalty
• Obedience
• Disclosure
• Confidentiality
• Accounting in dealings

As a buyer's agent, I will represent you and your interests in the purchase of your home. This is different from a typical sub-agency transaction where the buyer is not technically represented.

However, the selling agent has the duty to exercise reasonable skill and care in the performance of the Broker's duties. This is a duty of honest and fair dealing and a duty to disclose all facts known to the broker which materially and adversely affect the consideration to be paid for the property.

A dual agency situation can arise if we have entered into an agency relationship and subsequently we look at a property listed with our company. This situation is accepted under Arizona law with approval of both parties involved.

Dual agency should only be entered into with the written agreement of both buyer and seller.

Agency is a legal relationship and a written agreement should be completed to explain all the duties and responsibilities.

Benefits of Buyer Agency

1. Loyalty

• The real estate agent must act in the best interest of the buyer

2. Obedience

• Must follow the lawful instructions

3. Disclosure of all material facts

• Examples but not limited to:
• Relationships between agent and other parties
• Existence of other offers
• Status of earnest money
• Seller's financial condition
• Property's true worth
• Commission split with other brokers
• Legal effect of important contract provisions

4. Confidentiality

• Any discussions, facts, or information that should not be revealed to others but does not include responsibility of fairness and honesty in dealings with all parties

5. Accounting in dealings

• Reporting of where any money placed in the hands of the broker is kept

6. Reasonable Skill and Care

• Arriving at a reasonable purchase price and advising buyer of such
• Affirmatively discovering material facts and disclosing them to the buyer
• Investigating the material facts related to the sale

Who Pays The Commission?

1. The Seller Usually Does:

The Seller has generally signed a listing agreement with his agent specifying a certain fee to be paid, and many times it has provisions for splitting that fee with the agent who sells the property, regardless of subagency or buyer agency.

2. The Buyer Does (if he chooses to):

The Buyer can pay his agent a commission as set out in their written agreement. If this is the case, it would be inappropriate for the buyer's agent to accept any portion of the fee paid by the seller.

3. Each Party can Pay Their own Agent:

Each party pays their agent as specified in their written agreement.

Useful Phone Numbers

Emergency Numbers

• Police 911
• Fire 911
• Ambulance 911
• Poison Control 1-800-362-0101
• Yavapai County Sheriff 282-1000
• Suicide/Crisis Center 911

Utility Companies

• Telephone Company 1-800-244-1111
• Electric Company 282-7128
• Gas Company 282-3919
• Water Company 282-5555
• Cable TV Sedona 282-7711
• Village of Oak Creek 282-7711

• Time & Temperature KAZM 282-4154
• Marcus J. Lawrence Hospital - Cottonwood 634-5708
• Sedona Medical Center 282-1285
• Bank - Bank One 1-800-877-0608
• Bank - Bank of America 1-800-326-6323

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© 2007 RE/MAX SEDONA - Preferred, REALTORS ® All Rights Reserved
All information herein is deemed to be accurate, but not guaranteed.