~ Here is where it all begins! ~

Thank you for the opportunity to discuss your real estate needs! I think you’ll find a big difference in the way I conduct business. Buying a home in this market is a cooperative venture that requires thorough communication and teamwork. When we meet, I will clearly explain the idiosyncrasies of buying a home in the Durham-Chapel Hill-Roxboro market, how I represent you, what I do and don’t do, what you should and should not do, and what you can expect during the process. If you have any specific issues you’d like to address, please make note of them now and bring them to my attention at our first meeting. I will make sure that all of your questions are answered to your satisfaction!

Please take a few minutes of your time to review this packet carefully. This Step 1 Kit contains carefully selected materials that begin the process of coaching you and advising you on all of the information you’ll need to be a highly informed buyer, and to help you avoid the most common mistakes that home buyers make. I look forward to our first meeting!

If you need any additional information before we meet, please don’t hesitate to contact me.

At your service,

Joyce Bliss

Keller Williams Preferred Realty

Cell: 919-308-1215

Office: 919-281-3238

Email: joycebliss@kw.com

Website: joycebliss.yourkwagent.com/home

YOU NEED THE PROTECTION AND SERVICE OF A FIDUCIARY!

Fiduciary vs. Functionary

What is a fiduciary? According the American Heritage Dictionary:

n. fi·du·ci·ar·y

One, such as an agent of a principal, that stands in a special relation of trust, confidence, or responsibility in certain obligations to others.

The Issue -

Today, there are changes occurring in the real estate industry. Some companies and agents are offering themselves to the public as simple functionaries. You, the consumer, may risk losing the benefit of having a fiduciary representative! In fact, very few people even know the difference!

What is the difference between a Fiduciary and a Functionary?

FIDUCIARY

1. High level
2. High relationship
3. Accepts high responsibility
4. Advises and consults
5. Owns the result
6. Anticipates needs and interprets data
7. High skill
8. Uses expert judgment and intuition
9. Maximum legal responsibility
10. Involved in decision-making
11. Valuable and Irreplaceable
12. Highly paid

13. Usually makes money for the client

FUNCTIONARY

1. Low level
2. Low relationship
3. Assumes low responsibility
4. Delivers information and directions
5. Does the task
6. Responds to questions and processes data
7. Low skill
8. Follows rules and procedures
9. Minimum legal responsibility
10. Not involved in decision-making
11. Replaceable
12. Minimally paid

13. Usually costs the customer money

As a consumer in a real estate transaction, which do you prefer?

A Fiduciary or a Functionary?

READ THIS NOTICE CAREFULLY!

THIS MAY BE THE MOST IMPORTANT

PART OF THIS PACKAGE. THIS NOTICE

IS FOR YOUR OWN PROTECTION!

Recent changes in North Carolina law resulted in changes that affect the way buyers and sellers are represented by real estate agents. Since the North Carolina Real Estate Commission and the North Carolina legislature know that the typical consumer does not understand these changes, they enacted certain requirements to protect you!

One of the most important things they did was to create a brochure called Working with Real Estate Agents. ALL real estate agents are required by law to present this brochure to a potential client “at first substantial contact”, and there is a wide difference in opinion about when that occurs. I firmly believe that your best interests are served if you are an informed and empowered consumer from day one. If I know something that you should know, you will know it NOW. For this reason, I am including the “Working with Real Estate Agents” brochure immediately following this notice and I want you to read it now. Other real estate agents ARE doing this for you, aren’t they?

The law also requires that we not only provide the brochure, but that we review it with you when we meet. That’s exactly what I will do. In the mean time, PLEASE DO NOT DISCLOSE ANY CONFIDENTIAL INFORMATION ABOUT YOUR REASON FOR BUYING OR YOUR WILLINGNESS TO PAY A CERTAIN PRICE until you have chosen who will represent you in the purchase of your home! Once you have selected a REALTOR® to serve as your Fiduciary and your Exclusive Buyer Agent, you can, and should freely discuss anything since you are protected much like an attorney-client privilege. We will go over this again when we meet in person!

Working With Real Estate Agents

Standard Form No. 520

7/1/2001

WORKING WITH REAL ESTATE AGENTS

NOTE: Effective July 1, 2001, in every real estate sales transaction, a real estate agent shall, at first substantial contact directly with a prospective buyer or seller, provide the prospective buyer or seller with the following information [NC Real Estate Commission Rule 21 NCAC 58A.0104(c)].

When buying or selling real estate, you may find it helpful to have a real estate agent assist you. Real estate agents can provide many useful services and work with you in different ways. In some real estate transactions, the agents work for the seller. In others, the seller and buyer may each have agents. And sometimes the same agents work for both the buyer and the seller. It is important for you to know whether an agent is working for you as your agent or simply working with you while acting as an agent of the other party. This brochure addresses the various types of working relationships that may be available to you. It should help you decide which relationship you want to have with a real estate agent. It will also give you useful information about the various services real estate agents can provide buyers and sellers, and it will help explain how real estate agents are paid.

SELLERS

Seller’s Agent

If you are selling real estate, you may want to “list” your property for sale with a real estate firm. If so, you will sign a “listing agreement” authorizing the firm and its agents to represent you in your dealings with buyers as your seller’s agent. You may also be asked to allow agents from other firms to help find a buyer for your property. Be sure to read and understand the listing agreement before you sign it.

Duties to Seller: The listing firm and its agents must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents without your permission. But until you sign the listing agreement, you should avoid telling the listing agent anything you would not want a buyer to know.

Services and Compensation: To help you sell your property, the listing firm and its agents will offer to perform a number of services for you. These may include • helping you price your property • advertising and marketing your property • giving you all required property disclosure forms for you to complete • negotiating for you the best possible price and terms • reviewing all written offers with you and • otherwise promoting your interests. For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.

Dual Agent

You may even permit the listing firm and its agents to represent you and a buyer at the same time. This “dual agency relationship” is most likely to happen if an agent with your listing firm is working as a buyer’s agent with someone who wants to purchase your property. If this occurs and you have not already

agreed to a dual agency relationship in your listing agreement, your listing agent will ask you to sign a separate agreement or document permitting the agent to act as agent for both you and the buyer.

It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party. Some firms also offer a form of dual agency called “designated agency” where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each “designated agent” to more fully represent each party. If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of what your relationship is with the dual agent and what the agent will be doing for you in the transaction.

BUYERS

When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer’s agent). You may be willing for them to represent both you and the seller at the same time (as a dual agent). Or you may agree to let them represent only the seller (seller’s agent or subagent). Some agents will offer you a choice of these services. Others may not.

Buyer’s Agent

Duties to Buyer: If the real estate firm and its agents represent you, they must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer’s agent, they may not give any confidential information about you to sellers or their agents without your permission. But until you make this agreement with your buyer’s agent, you should avoid telling the agent anything you would not want a seller to know.

Unwritten Agreements: To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do for you, you may want to have a written agreement. However, some firms may be willing to represent and assist you for a time as a buyer’s agent without a written agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written agency agreement. If you do not sign it, the agent can no longer represent and assist you and is no longer required to keep information about you confidential. Furthermore, if you later purchase the property through an agent with another firm, the agent who first showed you the property may seek compensation from the other firm. Be sure to read and understand any agency agreement before you sign it.

Services and Compensation: Whether you have a written or unwritten agreement, a buyer’s agent will perform a number of services for you. These may include helping you • find a suitable property • arrange financing • learn more about the property and • otherwise promote your best interests. If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller.

A buyer’s agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if

the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer’s agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.

Dual Agent

You may permit an agent or firm to represent you and the seller at the same time. This “dual agency relationship” is most likely to happen if you become interested in a property listed with your buyer’s agent

or the agent’s firm. If this occurs and you have not already agreed to a dual agency relationship in your (written or oral) buyer agency agreement, your buyer’s agent will ask you to sign a separate agreement or document permitting him or her to act as agent for both you and the seller. It may be difficult for a dual

agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.

Some firms also offer a form of dual agency called “designated agency” where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each “designated agent” to more fully represent each party. If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of • what your relationship is with the dual agent and • what

the agent will be doing for you in the transaction. This can best be accomplished by putting the agreement in writing at the earliest possible time.

Seller's Agent Working with a Buyer

If the real estate agent or firm that you contact does not offer buyer agency or you do not want them to act as your buyer agent, you can still work with the firm and its agents. However, they will be acting as the seller’s agent (or “subagent”). The agent can still help you find and purchase property and provide many of the same services as a buyer’s agent. The agent must be fair with you and provide you with any “material facts” (such as a leaky roof) about properties. But remember, the agent represents the seller – not you – and therefore must try to obtain for the seller the best possible price and terms for the seller’s property. Furthermore, a seller’s agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are sellers’ agents before you say anything that can help the seller. But until you are sure that an agent is not a seller’s agent, you should avoid saying anything you do not want a seller to know. Sellers’ agents are compensated by the sellers.

WORKING WITH REAL ESTATE AGENTS

This is not a contract

By signing, I acknowledge that the agent named below furnished a copy of this brochure and reviewed it with me.

____________________________________________ ________________________________________

Buyer or Seller Name (Print or Type) Buyer or Seller Name (Print or Type)

____________________________________________ _________________________________________

Buyer or Seller Signature Buyer or Seller Signature

____________________________________________ _________________________________________

Date

____________________________________________

Firm Name

____________________________________________

Agent Name

Disclosure of Seller Subagency

When showing you property and assisting you in the purchase of a property, the above agent and firm will represent the SELLER.

For more information, see “Seller’s Agent Working with a Buyer” in the brochure.

Buyer’s Initials Acknowledging Disclosure: ______________

Agents must retain this acknowledgment for their files.

~ HOME BUYER INTERVIEW ~

Please, use this form to introduce yourself to Joyce Bliss. All information provided is considered proprietary and is maintained in the strictest confidence. This is for OUR use only! My cell number is 919-308-1215.

Date: ___________

Name(s): ______________________________________________

Address: _______________________________________________________________

City: ________________________________ St: _____________ Zip: _____________

Home Phone: __________________________

His Work Phone: ________________________

Her Work Phone: ________________________

His Cell Phone: ________________________

Her Cell Phone: ________________________

Preferred Email Address: _________________________________________________

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

1. Are you working with a Realtor® now? ________. If yes, have you signed “Buyer Agency Agreement” with him/her? _______________.

2. What is your idea of a great Realtor®? ________________________________________________________________ ________________________________________________________________. Have you ever bought or sold a home before? ______________. Was it with a Realtor®? ___________. Please take a moment to tell me how you felt about your experience. (positive, negative, indifferent?) Comments:_______________________________________________________

3. Are you are paying cash? If so, I’ll need a letter on bank letterhead signed by someone with the authority to state that you have sufficient funds on deposit to make a purchase of $XXX. If you’re going to obtain a mortgage, arranging financing is our most important task before we begin! If you have a pre-approval letter from a lender you prefer, I’ll need that before we look at homes! If you don’t already have that letter, let me know now so I can arrange that for you quickly!

4. Please tell me how to reach you and what method of communication you prefer:

Email me at ____________________________________ Call me at work ____ Call me at home _____ Page me _______ What is the best time to call you? ________________________________________________________________

5. How soon do you want to be settled into your new home? __________________ Why are you buying now? ___________________________________________

How long do you THINK you will be staying in this next home? ______________

6. Our home search will take however long it takes, but, if we were lucky enough to find the right home right away, is there anything that would prevent you from buying right away? ______________. If so, what? ______________________

________________________________________________________________. Is there anyone else involved in this decision with you? _________. If so, whom? __________________.

7. Do you need to sell your current home? _______. If so, would you like me to refer you to a Realtor® in your area? ___________. If you are leasing, when does your lease expire? ___________. How much is your rent? ____________.

8. In detail, please try to describe your current home or apartment to me in your own words. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

9. Please describe what you like and dislike most about your current home.

Like:____________________________________________________________________________________________________________________________Dislike:__________________________________________________________________________________________________________________________

10. Are you participating in a corporate relocation? ________. If yes, who is the contact person? ________________________________May I contact them? _______________ How do I reach them? ______________________________

________________________________________________________________

11. Now, in detail, please try to describe your next home to me. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

12. Please describe what will be the most and least important about your new home. Most:____________________________________________________________________________________________________________________________Least:___________________________________________________________________________________________________________________________

13. Where is your workplace located now, or going to be located? Your “significant other’s” workplace (if applicable)? What would you consider to be reasonable for a drive-time to work? ________________________________________________________________

________________________________________________________________

14. Please list your wants and needs for the features listed below: ______________

WANT_________ NEED

# Bedrooms / # Baths ........................... __________ __________

Garage/Carport .................................... __________ __________

Maximum Age of Home ........................ __________ __________

Floorplan or Style .................................. __________ __________

Single Family Home or Condo/Townhome __________ __________

Size or Square Feet .............................. __________ __________

Exterior Construction ............................ __________ __________

Waterfront/Golf Course ......................... __________ __________

Other Feature ........................................ __________ __________

15. Do you have any special needs? (particular house of worship, medical care, special education options, handicap accessible properties, special rooms, office in home, particular neighborhoods, particular schools, etc): ________________________________________________________________________________________________________________________________

16. Is there a particular area of town that you prefer? (i.e.- Area 5, uptown area, Union County, University area)

________________________________________________________________________________________________________________________________

17. What is your target price range? $_________________ to $________________

18. Are there any questions or comments that you feel are important that I have not addressed here that will help me understand your “perfect home”? ________________________________________________________________________________________________________________________________

19. If I do a great job for you, may I use you as a reference in the future? _________

20. What is the date of birth for everyone in your household? I ask for this so that I can honor you on your birthday each year…“if it’s important to you, it’s important to me! ” ________________________________________________________________________________________________________________________________

21. I have access to many vendors that I trust. I can most likely offer you a referral to someone for just about any need you may have. Before you resort to the Yellow Pages, please ask me for a referral!

22. Would you be interested in receiving new listings by email as homes meeting your criteria come on the market? _________________________________

23. I hope you’ll visit me on the web at joycebliss.yourkwagent.com/home because we have placed many very informative links about Durham/Chapel Hill and Roxboro there for your convenience. From listings to demographics, crime statistics to employment opportunities…you’ll find it there. Just go to the above link and click on links at the left side of my main page! If you see a property that you’d like to know more about, just email me us joycebliss@kw.com

~ Here are some of the things we may discuss when we meet ~

(be sure to bring this list with you!)

Your “Home Buyer Kit”

Gathering the Facts

FUNCTIONARY