Ten Steps to Buying a Home

Buying a home is probably the biggest financial commitment you’ll evermake. But buying a home isn’t just a dollars-and-cents investment – it’s an investment in your life. To assist you in the process, Edina Realty has all the home buying products and services you need. And best of all, we’ll be with you every step of the way.

Step Choose a Realtor Step Negotiate terms A Realtor can assist you in the homebuying Counteroffers are common in real estate. process. To ensure it is someone you Be prepared to be a little flexible on price, respect and trust, get referrals of names closing date, appliances or repairs. from friends and family. Step Get an inspection Step Get pre-approved This is your best chance to have your Meet with a mortgage consultant and get property’s systems and structure evaluated. pre-approved for a loan. Ask your Realtor to An experienced, outside professional is recommend a loan officer or contact Edina worth every penny. And you may want to add Realty Mortgage for the mortgage consultant a home warranty to cover appliances and nearest you. systems that could break down up to a year after you close. Step Refine your focus Detailing your housing needs, wants and Step Do a walkthrough budget will be helpful for both you and your Shortly before closing, do a final walkthrough Realtor. Ask your agent for worksheets of the house to make sure everything you or online tools to help narrow down your thought was included in the purchase choices. agreement has remained on the property.

Step View properties Step Funds due at closing Start your home search on edinarealty.com. For your security, Edina Realty Title Once you find homes that meet your criteria, recommends a cashier’s check as the tour several of them in person so you can be method of payment for funds necessary at comfortable with what’s on the market. Then closing. Edina Realty Title will send closing make your selection. information within your personal closing site. Edina Realty Title does not require wired Step Make an offer funds and you should never follow wiring If you know you’ve found the right property, instructions sent to you by email. you may need to act fast depending on market conditions. Trust your Realtor to Step Close prepare and present your offer to the seller At closing you will review and sign the in the best possible light. relevant closing papers that will be notarized by your closer, the keys are passed to you and the house is yours!

571 Home Search Made Easy

Edina Realty’s mobile app makes home searching quick and easy

Search smarter n Find homes for sale including up-to-date open house information

n Search for homes with school attendance boundaries and view school ratings

n Learn commute times by inputting an address and view results by time of day and type of transportation used (walk, bus, bike or car)

n View nearby properties with Home Scan

n Automatically estimate your monthly payment including principal and interest, home App for Smartphone insurance, PMI and property taxes. Plus, easily adjust property price, down payment, and Tablet interest rate, loan term and homeowner association dues

Featuring Home Scan The Home Scan feature uses augmented reality to view nearby homes in real time. This makes researching neighborhoods and finding open houses fun and easy.

599 Selling and Buying? Know Your Options

Sometimes the house that once seemed perfect is no longer a great fit – and you decide to sell it and find another home. This is the time to think about which buying and selling option would work best for you.

Options and Opportunities Sell first – buy later. This is a great option if you want to take your time finding a new home. Selling first gives you a clear idea of how much home you can afford. It increases your leverage by eliminating the contingency to sell your house before you close on another. Most important, selling first takes the urgency out of your search, allowing the time you need to find that “just-right” home. Selling first means you must find a temporary place to live while you look for a new home.

Sell and buy – at the same time. It happens every day. Homeowners sell one house and make an offer on another ̶ with the goal of having both transactions close on the same day. It can feel like a crazy dance, but your Timing, price, location experienced REALTOR® will guide you through the closing and inventory can all process on both transactions without missing a step. Your affect your home search. Edina agent knows how to smooth your transition from one home to another. Your REALTOR® is a valuable resource as Buy first – sell later. you evaluate the costs, This is an attractive option for buyers who can afford to make two mortgage payments for a short time. It allows you to benefits and other buy, update or remodel a new home while still living in your variables to find the current one. You put your current house on the market only after you are living in your new home. Be sure to check with option that best fits your your banker to ensure pre-approval of your mortgage without needs and timeline. selling your current home.

544 Finding Your New Home

Somewhere awaits the home of your dreams. All you have to do is find it! Sure, you can look for it on your own, but why? With an experienced REALTOR® at your side, finding the perfect home is easier, faster and a lot more fun.

A Realtor can show you suitable properties, offer valuable An Edina Realty Realtor can… advice and coach you through the entire complex process. ■ Provide knowledge of the market to help you make By entrusting an agent with your home search and openly informed decisions sharing your expectations and needs, you’ll improve both the process and the results. But how do you know whom to ■ Show you properties that meet your needs in style choose? and price ■ Use their expertise and experience to negotiate on Start with the best your behalf Chemistry is important, but so are credentials. Above all, ■ Guide you through each stage of the transaction you’ll want an agent who knows the market and has the resources of a leading real estate firm behind them – a firm ■ Recommend professionals in related fields – loan like Edina Realty. officers, closers, home inspectors and others – to ensure a smooth transaction With nearly 2,500 professionals to choose from, you’re ■ sure to find an Edina Realty Realtor that fits your personal Show you any property – even those listed by style. There’s simply no company better qualified to help another broker you find and buy your new home. ■ Monitor the MLS and Edina Realty Mobile Hotline activity

■ Attend virtual or in-person open houses and drive through selected neighborhoods regularly

■ Network with other agents to obtain leads on properties coming on the market

■ Locate potential builders if new construction is right for you

■ Contact owners of expired listings and “For Sale by Owner” properties

■ Provide information on schools and the community

570 Writing Your Offer

When you find the home that’s right for you, your real estate agent will work diligently on your behalf to write a purchase agreement and negotiate favorable terms.

The Purchase Agreement This is a written legal agreement which, if accepted by both you and the seller, The seller may binds the sale and begins the closing process. Among other items, it includes: accept, reject ■■ The price you are willing to pay for the property ■■ The date of the closing and when you will assume possession or submit a ■■ Who is expected to pay any special assessments and property taxes

counter-offer for ■■ Type of financing package you have chosen you to consider. ■■ A list of items to be included in the sale (appliances and drapes, for example)

The Negotiation Process Once the purchase agreement has been presented to the seller, the seller’s agent will provide the seller’s response to the terms of your offer.

The seller may accept, reject or submit a counter-offer for you to consider. With the counsel of your real estate agent, you then have the option to accept, reject or counter their offer. Once you and the seller reach an agreement, necessary signatures are collected and the transaction moves on to the closing.

The Home Inspection Offers are often written “subject to home inspection,” which means a buyer doesn’t have to commit to purchasing the home until an inspection is completed and the results are reviewed. Once your offer has been accepted, it’s wise to have the home inspected by a professional for an indepth evaluation of the roof, foundation, mechanicals and other features.

581 The Arbitration Advantage

The residential home arbitration system has many advantages for any dispute over $15,000.

Arbitration is convenient Arbitration usually takes place in the home. This permits the parties and the arbitrator to easily view the damages or defects firsthand. The parties also have more flexibility in scheduling arbitration for a time that will work best for everyone. Arbitration is cost effective Arbitration, like a district court action, provides the parties with the remedies of specific performance, rescission and money damages without a limit, but for a lower cost. Even if an attorney is hired to represent a party in arbitration, the total attorney’s fees are generally far lower than compared with hiring an attorney for a district court case.

The residential home Arbitration is timely An arbitration hearing can be scheduled in 8-12 weeks, with arbitration system has only one meeting of the parties and the arbitrator prior to a many advantages. decision being reached in the case. A district court action can take years to complete, with numerous court hearings before the parties even get to trial.

Arbitration is flexible Parties to arbitration have a choice in determining whether they wish to be represented by an attorney and should be advised of this choice. Appearing in district court without an attorney is not advisable. For disputes under $15,000, the arbitration agreement directs the parties to conciliation court, which has a lower filing fee than arbitration for disputes less than $15,000. Parties with questions about arbitration are encouraged to consult with their attorney.

521 Getting an Inspection

This is the time when the home will be evaluated to make sure it meets minimum health and safety standards so that both buyer and seller have a clear understanding of the condition of the home at transfer.

Though no home is perfect, an inspection helps to eliminate surprises for all parties after the closing and ensures that the home meets city requirements. An experienced, outside professional is worth every penny. And you may want to add a home warranty to cover appliances and systems that could break down up to a year after you close.

Let’s look at three different kinds of inspections.

A point-of-sale inspection is required to be performed before listing a home by some local municipalities. This inspection provides prospective buyers with information about the condition of the house and garage, and also helps to eliminate any health and safety concerns.

A seller’s pre-inspection can expose hidden flaws in a property before it goes on the market. A pre-inspection will give the seller a chance to fix any An experienced, outside issues that may deter buyers.While this will not likely professional is worth prevent a buyer from performing their own inspection, it may go a long way towards assuring the buyer of the every penny. property’s overall condition.

A buyer’s inspection is performed after an offer has been accepted on a property. The purchase of a home is often emotional and a buyer’s inspection will give insight into problems before the purchase has been completed. A buyer’s inspection is optional to the purchase agreement but it does protect both buyers and sellers by recording the condition of the property at the time of transfer.The buyer can also require that the acceptance of a purchase agreement be contingent upon a completed inspection.

ERT 572 (2/16) Edina Realty: Everything You Need Under One Roof

Real estate is a complex business, but the process of buying or selling a home shouldn’t be. At Edina Realty, we have exceptional agents and tools to help get the job done right so you can move up, move away or move on with your life.

Power of Networking Behind each Edina Realty REALTOR® is a network of nearly 2,400 agents. This powerful sales force works as a team to bring the right buyers and sellers together. Networking includes tours, weekly sales meetings and NetworkONE – a powerful inter-company networking system.

Moving services: Our Updater partnership If you’re planning a home move, Edina Realty has partnered with Updater to offer free, convenient options to update your address, set up TV and internet, connect utilities, update subscriptions, reserve movers or supplies and much more!

Our Exclusive Programs HomeDocs™ is a web-based online filing system giving buyers and sellers access to their mortgage and title documents, 24/7.

Home Impressions provides sellers with showing feedback from other real estate agents who’ve toured the home.

NetworkONE, a powerful inter-company networking system, allows Edina Realty agents to quickly match buyers with sellers.

Sell My Home is a user-friendly online tool that lets sellers access the latest information on the progress and activity of their listing on edinarealty.com.

535 Our Family of Companies Our Specialty Divisions Edina Realty Mortgage Edina Realty Corporate Services • Over 30 years experience • Manages third-party company and corporate relocations • Competitive rates for transferring employees • Innovative products for purchase, refinance, • Extensive network of brokers both locally and globally investment properties and vacation homes Exceptional Properties Edina Realty Title • Our division that works with customers looking to buy or • Largest full service title company in the Midwest sell a luxury homes. • More than 21 convenient closing locations • Exceptional networking including office tours, weekly sales meetings and NetworkONE – powerful inter-company • No surprises at closing networking system for 2,400 agents

Edina Realty Insurance Lakeshore and Outdoors • Coverage for homeowners, investment properties, • We have agents who specialize in lakeshore property, with autos, umbrella and more local knowledge about everything from lake depth to winter • Dedicated agents work with top rated carriers road clearing and local development. • Complimentary insurance review • Our network allows customers to search for properties in different geographical areas without changing brokers. Edina Realty Warranties • Issued by HSA Home Warranty New Construction • Provides comfort to buyers and sellers • Our experts are made up of a combination from our real estate, mortgage and title companies.

Behind each Edina Realty REALTOR® is a network of nearly 2,400 agents.

535 Edina Realty Home Warranty Provides Convenience

Whether you are a seller or a buyer, avoid the worry and inconvenience of dealing with unexpected home repairs.* We’ve partnered with HSA Home Warranty to offer the best home warranty programs on the market. With an Edina Realty Home Warranty, you’ll get reliable protection backed by exceptional service.

Buyer benefits Seller benefits As a buyer, make sure your new home is covered by a As a seller, a home warranty placed during the listing HSA Home Warranty. If the seller doesn’t provide the period can help reduce many out-of-pocket expenses warranty, take matters into your own hands and purchase sellers often experience from unexpected breakdowns this valuable protection yourself. and repairs.

■ The comfort of being protected. There can be many ■ Coverage while your home is on the market. expenses to cover when moving into a new home. This means if something goes wrong, you can Take comfort in knowing that repairs to a covered continue to concentrate your efforts on selling your system or appliance won’t be one of them. home instead of worrying about repairs.

■ You don’t have to worry Reliable service, 24/7. ■ A powerful marketing tool. Offering a home warranty about calling different vendors for estimates and in the contract is an excellent way to entice buyers and repairs. Just contact us. We’ll arrange for a diagnosis, it sets your home apart from the competition. choosing from our list of qualified home repair professionals.

■ Valuable protection year after year. The good news is that an HSA Home Warranty protects you from the unexpected. The great news is that the warranty is renewable with a monthly payment plan option.

*Subject to terms and conditions

585 Edina Realty Insurance – We’ve Got You Covered Buying a new home is an exciting, yet complicated experience. As you complete all the steps prior to closing, you may wonder which insurance company is right for you.

As an independent insurance agency, Edina Realty Insurance can tailor coverage to meet your specific insurance needs while providing exceptional service. As an affiliate of Edina Realty, we will work hand in hand with your agent, mortgage officer and title professional to ensure coverage is in place for an on-time closing.

Services We consult with you to customize coverage that meets your needs. We are not constrained by the prices or products of a single company. We carefully select top-ranked, nationally recognized carriers based on financial stability, quality services and range of products and prices. We provide discounts and savings for packaged products (home and auto).

We understand that Our products include: individual insurance Homeowners needs vary. Condominium/Townhomes/Renters Automobile Recreational Vehicles and Watercraft Contact us today to get a quote or for more information. Umbrella 651.605.2755 Scheduled Valuables [email protected]

587 What Is Owner’s Title Insurance?

Buying a home is one of the biggest financial commitments you’ll ever make. To protect yourself and your new home, make sure you choose an owner’s title insurance policy – more than 80 percent of Americans do.* For a one-time fee paid at closing, an owner’s policy can protect your property rights for as long as you and your heirs own the property.

Did you know that title issues such as liens, easements or bills left behind by a previous owner may not be discovered until months or years after a property is purchased even with the most diligent search? The title insurance required by your lender protects the lender only. Owner’s title insurance protects you by paying for all attorneys’ fees and court costs in addition to the costs associated with removing the lien or other covered claim from your title.

Here are some of the more common issues that are covered by an owner’s title insurance policy:

■■ Liens due to a prior unsatisfied mortgage or an unpaid charge from a homeowner’s association To learn more about the two ■■ Liens for unpaid taxes, including estate, inheritance, levels of owner’s title insurance income or gift taxes in addition to unpaid real estate taxes available see Owner’s ■■ Errors in public records or reports furnished by tax officials Coverage Comparison (576). ■■ False impersonation of property ownership including forged deed ■■ Undisclosed or missing heirs with ownership in the title

*American Land Title Association

574 (11/15) What is a Title Commitment?

Here are a few insights about this important document.

A Title Commitment is the title company’s promise or “commitment” to issue a title insurance policy for your property after closing. The Title Commitment is based upon a search of historical and current public records and sets forth the steps that must occur before Edina Realty Title issues the title policy that provides you with peace of mind about the ownership of your new home.

The Commitment contains three parts:

Schedule A Schedule B - Section 1 Schedule B- Section 2 reflects informational shows the necessary steps shows other items pertaining items such as: to close, these may include: to your property such as:

■ Name(s) by which you intend ■ Deed from Seller to Buyer ■ Real estate taxes

to take title ■ Mortgage between Buyer ■ Assessments, if any ■ Name of your lender, if any and lender ■ Drainage and utility ■ Sale Price ■ Satisfaction of existing easements, if any ■ mortgages Loan Amount, if any ■ Covenants and restrictions, ■ ■ Name(s) of the Seller as title Clearance of other liens or if any is held issues related to the title ■ Description of the property ■ as it is reflected on the real Other documentation required estate records by State or County

Please review your Title Commitment and contact your closer with any questions.

590 Pathway to Closing

Title – Production TransXpress submitted Invite to Exchange Searches ordered with purchase agreement ? Title Examiner reviews What is a Property Search? property search and Includes prior deed transferring title, prepares title commitment liens, mortgages, judgments (against the property or person selling)

? What is a Title Commitment? Title commitment Provides instructions to clear title is delivered through and to insure first lien position for the Exchange new lender

Title – Pre Closing

Closing instructions Schedules and notifies all Clear any from the lender parties of date, time and defects on title received location through Exchange

Title – Closing

Prepares Closing Settlement statements Documents explained Disclosure form delivered through and signatures Exchange notarized

Title –Post Closing

Submits documents Original lender Disbursement electronically to documents submitted of funds county for recording

Electronic recorded Lenders and owners documents back policies are issued from county through Exchange

580 Pathway to Closing

Edina Realty Title – Your Trusted Closing Advisors From “for sale” to “sold,” our full service and support continue through to the last detail.

Financial Strength and Solid Reputation

■ Edina Realty Title is owned and operated by HomeServices of America Inc., the largest real estate company in the nation and is a Berkshire Hathaway affiliate

■ Several of the highest-rated title insurance companies in the country underwrite for Edina Realty Title

Security

■ Buyers and sellers can safely and securely transmit their personal information through the Edina Realty Title Exchange

Convenient Locations

■ We have 21 office locations throughout Minnesota and western Wisconsin 21 to offer a convenient and professional closing environment office locations

Experience

■ Founded in 1986, Edina Realty Title has closed more than 550,000 real estate transactions

10 ■ Our team members have an average of over 10 years experience to insure years of that your closing is accurate and on time experience

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