Market Update Seminar A complimentary service of Weichert, Realtors

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Market Update Seminar A complimentary
service of Weichert, Realtors

• Its Your Move
• Why wait?

Each WEICHERT franchised office is independently
owned and operated.
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Have You Been Waiting?

• Waiting for someone else to take the lead?
• Waiting for just the right time?
• Waiting for someone to help you make the right
  decisions

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You Have Questions

• Is now the right time to sell my home?
• How do I know how much my home is worth?
• How much house can I really afford?

• What will a real estate agent do for me?
• What will a real estate company do for me?

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and We Have Answers

• Whether you have ever owned a home
• Whether you are planning on selling, buying, or
  both

• Were here to answer the questions on your mind.

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Is Real Estate a Smart Investment?

• Yes!
• Over the last 35 years, home prices nationally
  have appreciated by an average of 6 per year.

Source National Association of Realtors
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What does that mean for you?

• If youve owned your home for several years,
  your gains in value most likely far exceed any
  possible value decreases in the recent past.

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Is now the right time to sell a home?
(Manager name, title, and office)
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Your Home vs. the Home Youll Purchase

• If the value of the home you purchase when you
  move up has adjusted the same percentage as the
  home youve sold, your move is now more
  affordable.
• Lets look at an example

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The Numbers Tell the Story
Your Current Home Your New Home Cost of Upgrade
Past 300,000 500,000 200,000
Current 270,000 450,000 180,000
Difference -10 -10 20,000 savings

• To move up from a 300,000 home to a 500,000
  home requires an investment of 200,000.
• If each homes value adjusts by 10, the required
  investment is only 180,000.
• You save 20,000.

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Consider This

• Recent trends show that housing prices are
  stabilizing.
• What if theyve already hit bottom and start to
  go back up?
• And what if rates start climbing at the same
  time?
• Thats like leaving money on the table.

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If you wait a year to buy this house,
you might miss out on the home of your
dreams!
Assuming a 1 increase in interest rates

• Todays rate
• 200,000
• 5 down
• 5 interest rate
• Payment
• 1,019.96

• 1 increase in rate
• 200,000
• 5 down
• 6 interest rate
• Payment
• 1,139.15

119 difference per month or nearly 43,000
over 30 years
The interest rate assumption is based on a
30-year fixed rate mortgage.
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If you wait a year to buy this house,
you might miss out on the home of your
dreams!
Assuming a 5 rebound in home prices

• Todays price
• 200,000
• 5 down
• 5 interest rate
• Payment
• 1,019.96

• 5 increase in price
• 210,000
• 5 down
• 6 interest rate
• Payment
• 1,196.10

176 difference per month or more than 63,000
over 30 years
The interest rate assumption is based on a
30-year fixed rate mortgage.
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If you wait a year to buy this house,
you might miss out on the home of your
dreams!
Assuming a 10 rebound in home prices

• Todays price
• 250,000
• 5 down
• 5 interest rate
• Payment
• 1,274.95

• 10 increase in price
• 275,000
• 5 down
• 6 interest rate
• Payment
• 1,566.33

291 difference per month or nearly 105,000
over 30 years
The interest rate assumption is based on a
30-year fixed rate mortgage.
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How much can I afford to spend on my new home?
(GSM name, title, office)
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Changes are Coming

• Indications are that in the near future, many
  people may find it more difficult to qualify for
  mortgage financing, because theyll need
• Larger down payments
• Higher income relative to debt
• Stronger credit histories
• In addition, many experts predict that interest
  rates are much more likely to increase than
  decrease in the near future.

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Good News for YOU!

• Buyers are eager to take advantage of the
  historically low interest rates.
• What does that mean for you?

• Motivated buyers!

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Interest Rates Remain Low
Average Annual Rate (30-year fixed-rate mortgage)
Source  Freddie Mac.  The 2014 figure is
computed using the average rate for January 2014
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The Effect of Interest Rates on Buying Power
Source Weichert Financial Services,. Based on a
30-year fixed rate mortgage, including 20 down
payment.
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The Effect of Interest Rates on Buying Power
Source Weichert Financial Services Based on a
30-year fixed rate mortgage, including 10 down
payment.
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The Effect of Interest Rates on Buying Power
Source Weichert Financial Services,. Based on a
30-year fixed rate mortgage, including 20 down
payment.
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The Effect of Interest Rates on Buying Power
Source Weichert Financial Services, Based on a
30-year fixed rate mortgage, including 10 down
payment.
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The Effect of Interest Rates on Buying Power
Source Weichert Financial Services. Based on a
30-year fixed rate mortgage, including 20 down
payment.
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The Effect of Interest Rates on Buying Power
What can I buy for 2,000 a month?
Source Weichert Financial Services, Based on a
30-year fixed rate mortgage, including 10 down
payment.
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The Effect of Interest Rates on Buying Power
Source Weichert Financial Services, Based on a
30-year fixed rate mortgage, including 20 down
payment.
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The Effect of Interest Rates on Buying Power
Source Weichert Financial Services, Based on a
30-year fixed rate mortgage, including 10 down
payment.
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Special First Time Home Buyer Programs

• Various low down payment programs are still
  available!
• State bond programs
• FHA
• VA

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How will I know my buyers are qualified?

• There is a difference between pre-qualification,
  pre-approval, and Credit Approval Guarantee
• Weichert Financial Services offers Buyer
  Validation
• Protect yourself Have a WFS Gold Services
  Manager validate your buyers ability to purchase
  your home.

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What will my real estate agent do for me?
Manager or Sales Associate (name, title, office)
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What Will my Real Estate Agent Do for Me?

• Your agent is your advocate, simplifying and
  guiding you through the complex process of
  selling and purchasing a home.

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A Brief Overview of the Process

• Your Weichert agent will work with you through a
  few easy steps designed to put you on the move
• Establish your current homes value
• Market and sell your home to a qualified
  purchaser
• Establish your buying power
• Find your dream home
• Move in!

• Your Weichert Associate will share this
  step-by-step map with you.

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SellingYour Weichert Sales Associate will

1. Prepare a Price Trend Analysis to help you
   determine the appropriate listing price for your
   home.
2. Explain whats involved in listing and selling
   your home.
3. Describe the marketing tools that will be used to
   find the right buyer for your home.
4. Be a resource for all your real estate needs.

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We know the best way to evaluate pricing

• Our exclusive Enhanced Price Trend Analysis is a
  unique method for helping to determine the
  listing price for the house youre selling.

• It will also help you decide how much to offer
  for the home you want to purchase.

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In XXX County

• 20xx
• XX homes sold
• XX median home price

• 20xx
• XX homes sold
• XX median home price

• 20xx
• XX homes sold
• XX median home price

Source MLS
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In XX Township

• XXX listings on the market currently
• Median sales price is XXX
• Average home stays on the market for X months

Source Multiple Listing Service, as of XXX DATE
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Houses Priced Right are Selling Fast

• You should know . . .
• Recent sales in the area indicate that selling
  your current home and buying your dream home
  may still require you to act promptly.

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BuyingYour Weichert Sales Associate will

1. Use the Multiple Listing Service to show you
   homes matching your criteria.
2. Explain whats involved in making an offer.
3. Analyze market data to help you determine an
   offer price.
4. Be a resource for all your real estate needs.

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Your Agent will Help Find Your Home

• Your Weichert Sales Associate
• Will keep you informed of available homes that
  meet your criteria
• Has access to ALL the listings
• Will set up appointments to view homes

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Your Real Estate Agent Will

• Present your offer in person
• Negotiate all the terms of the offer in your best
  interests

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Establish Your Buying Power

• Youll find value in meeting with our local
  qualified Weichert Gold Services Manager.
• Face-to-face, personalized service
• Mortgage credit decision, usually in minutes
• Hundreds of loan products to meet your unique
  qualifications
• Weichert Financial Services is one of the top 30
  credible, safe mortgage providers in the United
  States.

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Working With Your Gold Services Manager

• Your Gold Services Manager will provide you with
  referrals to our Weichert affiliated companies
  for your insurance needs at no added cost to you.
  
• A Gold Services Coordinator will assist you with
  your move-related and home ownership needs.
• Nearly 90 of our customers would refer us to
  friends and family.

Based on a private survey conducted by Weichert,
Realtors
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What will a real estate company do for me?
Manager or Sales Associate (name, title, office)
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Making Your Sale and Purchase as Smooth as
Possible

• Buying a home involves the careful coordination
  of many people.
• Choosing a real estate team you can count on can
  make the process smoother and easier.

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Your Weichert Team

• Like trusted friends, your Weichert Sales
  Associate, Gold Services Manager, and the
  Weichert Family of Companies will be with you
  every step of the way!

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The Weichert Difference

• A full-service team of real estate professionals,
  focused on providing personalized service.
• One-stop shopping to make your experience as easy
  and hassle-free as possible.
• The support and expertise of the entire Weichert
  Family of Companies working for you.

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Its Time to Sell and Move On

• Optimize your selling opportunity
• Buyers are still plentiful and motivated by
• Affordable interest rates
• Attractive financing options
• Why wait? NOW is the time to sell!

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Its Time to Move On and Buy

• Mortgage rates are low and payments are
  affordable.
• Homes are more attractively priced than they have
  been in years.
• Why wait? NOW is the time to buy!

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Todays Buying Power

• Historically low interest rates
• Attractive home prices
• Many financing solutions available
• ____________________________________
• The best home buying opportunity in years

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Were Here to Help

• What questions can we answer for you to get you
  started?

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There has never been a better time to let
Weichert help you make your move!

• Lets get started
• Schedule your consultation today!

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Grab the Opportunity

• Reasons to act NOW!
• Financing solutions still available
• Historically low interest rates
• Real estate supply and price points
• Your best opportunity in years EVER!

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Good Luck with Your New Home!