WeichertOne Source. Many Solutions.

Buying Selling

Mortgage & Closing Services Living

Invite us in. We’ll bring results.®Offices Across

America

®

“How is Weichert, Realtors® different from other Realtors?”Our answer can be summed up in a single word, “service.”Deceptively simple, but true: delivering better service to ourcustomers is “The Weichert Difference.” The desire to make yourreal estate experience as easy and as hassle-free as we possibly canmotivates every single Weichert program and service.

As a company, we take the words “One Source. Many Solutions”on the cover of this booklet very seriously. They represent ourservice commitment to you: We will work as a unified team tomake everything you need available to you in one place – yourlocal Weichert office.

Not only will your Weichert Sales Associate take genuine pride inguiding you through the intricacies of buying or selling a home,but your Gold Services Manager will be your personal link to allthe one-stop shopping services that will save you needless“running around” time and stress.

Because even after success in finding you a great home or gettingyou a great price fades, your memory of a trust-based relationshipand the caring and responsive personal service you consistentlyreceived will remain with you.

As you’re reading this, you’re embarking on a journey. Whetherbuying your first home or selling one to find a new home bettersuited to your life now, the road ahead will lead to many newexperiences along with many important decisions.

This booklet is designed as a guidebook to help demystify thejourney so that you can set out with confidence. It’s brimmingwith helpful information and advice gained over many years onthe trail. We hope it will convince you to depend on our help allalong the way.

If you find that this guidebook makes you more knowledgeableand better prepared for your very important journey, we wouldcertainly appreciate the opportunity to help you reach yourultimate home buying and/or selling destination.

Jim Weichert, president

The Weichert ® Difference

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One source for all your real estate related needs.

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Weichert Gold ® Services

“We take care of everything!”We created Weichert Gold Services* to provide areliable, one-stop source for just about every needrelated to your sale or purchase. From getting amortgage to changing door locks, the WeichertGold Services Manager in your local office will gladly answer your questions and personally assistyou. How’s that for convenience?

Since these services are always available to you, we suggest you keep this booklet handy for future reference.

Financial consultation. Before you begin your home search, a Gold ServicesManager can give you a clearer financial perspectiveand a better picture of what you can afford.

Mortgage credit pre-approvals. It’s advisable to get a mortgage credit approval inadvance. Your Gold Services Manager can give you adecision in minutes in most cases, so you can house shop with confidence. Weichert sellers mayenjoy complimentary pre-approvals both for themselves and their buyers.

Financing of all types. Comparison shop for mortgages all in one place withthe 360 mortgage products offered by WeichertFinancial Services. Want to purchase a home beforeyours sells? Interim or bridge loan financing is available. We also provide home improvement loans,mortgage refinancing, debt consolidation loans, youname it.

Insurance services. Weichert Insurance will help deliver a hassle-freeclosing for you. We’ll work with multiple carriers tomatch a homeowners’ insurance policy to your particular needs. What’s more, we offer a full rangeof insurance coverage, so we can help you protectyour automobile, watercraft and valuable articles.We even offer personal excess liability insurance anda vacant home program, too.

Title insurance. To clear title without delaying your closing/settlement, Weichert Gold Services can put thisessential insurance into place.

Guaranteed closing date. Obtain the “core services” of mortgage financing,homeowners’ insurance, and title insurance from us and our Performance Guarantee – backed by a $5,000**credit – will assure your closing date. You can also enjoy the Performance Guarantee just by selling your home to someone who usesthose 3 Weichert services.

A Weichert Home Protection Plan. This one-year, renewable protection covers specifiedmajor appliances and systems in your home (e.g.,heating, plumbing, electrical) not typically coveredby a homeowners’ insurance policy. Purchased as abuyer incentive, it will cover your home free ofcharge until your buyer takes ownership and for afull 12 months after settlement.

Weichert Home Connections. Just about every service you could need, includingmoving services and locksmith service, can bearranged for you or facilitated. WeichertUtilitiesPlus will let you change, connect, or disconnect your utilities online at your convenience.Among the other services available, usually with special savings, are: home security, cable or satellite TV, heating/air conditioning systems andhome remodeling. If you need a service not listedhere, just ask your Gold Services Manager. Or visitwww.weichertgold.com to view the complete list.

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*Not available in all states; services vary by location. **Subject to change and to certain terms and conditions; $1,000 in participatingWeichert franchised offices.

One source for all it takes to sell your house.

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Getting started

“When should you sell your house - after you buy your next one?”

Generally speaking, under most market conditions, realestate professionals advise listing your present home andshopping for your new home simultaneously. Toconsider your own individual needs and circumstances,though, you should talk to your agent about how fastyou need to sell and how long you should expect it totake in current market conditions.

In a robust real estate market, for example, you canassume your home would be more likely to sell quickly.

In that case, if you have very specific criteria – likelocation, size, views, age, etc. which could lead to atime-consuming home search – you should considerfinding and buying a home first before you sell yourexisting home. If necessary, you can make an offer tobuy that home contingent on selling yours. On theother hand, if you sell first, you can make your saledependent on finding a home to buy.

While seasonality, too, can play a role in deciding whento sell – with spring and fall the most popular seasons toput a home on the market – your agent can help youconsider factors like interest rates and consumerconfidence in the economy. Low interest rates will sendyou buyers year round. Some may be deterred byunpleasant weather conditions, of course, but it’s beenour experience that potential buyers who braveinclement weather tend to be very motivated.

Your Weichert Sales Associate will help you find thesolution that’s right for you.

If you already own a home, it’s a basic question and the answer is as individual as you are.

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Good looks sell

“What does your home look like to a potential buyer?”

First impressions are vitally important. People are always making snap judgments. So create thatgreat first impression with a well-cared-for lawn, aplowed driveway in winter, even just a seasonal doordecoration. Any sprucing up at all, including necessaryrepairs, can really help.

Remove all clutter.Neat closets, basements, and clutter-free rooms allincrease your home’s value by making it more spaciousand appealing. So toss out, give away, and hold thatgarage sale before your house goes on the market.

Keep things light and bright.Fresh paint makes a room seem new. Whether you usevibrant colors or safer, neutral ones, nothing you can do,aside from de-cluttering, delivers a greater return thanpainting. Keep lights on and drapes open, because sunny,well-lit rooms look larger and give visitors a morepositive feeling. Clean windows also help.

Highlight best features.If the jewel of your home is a beautiful view or a charmingfireplace, consider arranging your furnishings or usingcolors to spotlight that feature.

Create special touches.When someone walks through your home, they picturewhat it would be like to live there. An invitingatmosphere, with fresh flowers or scented candles forexample, can fuel their imagination.

Make arrangements for pet care.You may want to keep any dogs or cats in a separate roomor fenced area outside, or request advance notice whenyour house is to be shown. (If noted in your listing, realestate agents act with due caution.)

And, to encourage visits, a lock box.A lock box key storage system on an entrance is a secureway to provide access to active, licensed real estate agentswhen you’re not there. Not having to go to the listing sales agent’s office to obtain and return your key makes itmore convenient to show your home to a greater numberof buyers.

Preparing your home for sale requires an unbiased look at its appeal. Your Weichert Sales

Associate will offer suggestions that add to its value without spending a lot of money.

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“How do you set the right price?”

Pricing a home for an optimal result is both science andart, and Weichert Sales Associates apply considerable studyand skill to this critical professional task. Determining anattractive initial listing price is especially important,because homes almost always gain the most attention intheir first two weeks on the market. As you can see fromthe chart below, pricing greatly affects the number ofbuyers you will attract.

As a starting point, your Weichert Sales Associate willthoroughly research comparable homes in yourneighborhood and town. He or she will advise you ofrecent sale prices and how similar homes are priced now, as well as review homes that didn’t sell and were taken offthe market. Location, property size/features, style, age,physical condition, special features, and recentenhancements will all be considered in assessing yourhome’s value.

To analyze the data, Weichert has developed a unique toolcalled a Price Trend Analysis*. It goes beyond thecapabilities of a typical Comparative Market Analysis(CMA) by projecting local price trends. With our method,your Sales Associate can use the many market influencesthat impact price – including supply of homes versusdemand, how the local economy is faring, and homeappreciation rates – to help you determine the best askingprice for your home.

A pricing strategy that is sensitive to market trends is most likely to achieve the best end result.

Pricing

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The closer to Fair Market Value,

the larger the pool of interested buyers.

Homes priced at Fair Market Value

priced 5% over

priced 10% over

95% 50% 30% 20%

priced 15% over

% of buyers who will be interested

*The Price Trend Analysis is not an appraisal and should not be considered the equivalent of an appraisal.

“How does Weichert, Realtors bring results?”You’ve probably heard that one of the golden rules of realestate is “location, location, location.” Here’s one of ourgolden rules, “marketing, marketing, marketing.” You can’tsell a home, or anything for that matter, if people don’t knowthat it exists. And spreading the word that your home isavailable and a great buy is what we do best.

When you sign on with Weichert, Realtors, youare tapping into a powerful marketing net-work that produces countless calls to ouroffices every day and solid results forour clients. Not to mention themany buyers who come to usthrough referrals or reputation,or because they’ve used aWeichert Sales Associate beforeand trust our know-how.

Weichert marketing and adver-tising is everywhere and takes avariety of forms – from our highlyvisible and recognizable yellow ForSale and Open House signs… to ourextensive advertising in local media, majornewspapers, and through direct mail and neigh-borhood calling…to our leading Web site at weichert.com.

When you list with us, you are also teaming with a family ofcompanies that reaches into every area of real estate. Thatscope gives us even more opportunities for securing buyersfor your home.

A Weichert company assists more than 27,000

relocating employees a year.

Weichert Relocation Resources Inc., our full-service globalrelocation and assignment management firm, is one of theworld’s leading relocation companies. Its ever-expanding

client roster includes some of the largest employers inthe world. As a result, Weichert represents the

transferring employees of more than 500major corporations. These transferees

are a highly sought after segment ofprospective buyers – not only

because they need to buy a newhome quickly, but because theytypically qualify for companybenefits that make it easier forthem to purchase their newhome. In addition, thousands of

“out-of-area” buyers are referredto us through our membership in

the world’s largest network of inde-pendent real estate brokers*. All of

which enables us to bring you qualified,eager buyers from across the country and

around the world.

Your Weichert, Realtors office will make sure your home gets the high level of exposure consistent with producing results.

Bringing you buyers

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*Leading Real Estate Companies of the WorldTM

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“Do browsers on the Internet ever become buyers?”

Our program dedicated to converting Internet shoppersto actual buyers starts with a very aggressive searchengine strategy that sends millions of online shoppersto our Web site for listings. Whatever buyers type in tostart their search, weichert.com will typically be amongtheir top results. Once on our site, they find all thedetail they’re looking for. In fact, research shows thatweichert.com is consistently first or second among allreal estate companies for length of time people spendon our site**. And we prominently feature the quicksearches and maps that will lead them directly to yourlisting.

No other real estate company wins over

online shoppers by speaking to them directly.

That’s the purpose of our truly unique WeichertContact Center. It’s staffed by real estate specialists whoidentify serious potential buyers 7 days a week and keepthem from getting lost in the shuffle. Whether someoneclicks for more information on your home or calls ourtoll-free number, that buyer receives immediate,personal attention. That is, the Contact Center quicklyconnects them by phone to talk with a local WeichertSales Associate who can answer their questions andarrange a visit to your home.

Many online buyers already looking for a home likeyours on weichert.com will receive automatic e-mailnotification as soon as your home becomes available.Scheduled follow-up e-mails will occasionally remindthem that your home fits their search criteria.

strategy

Bringing you buyers

Since 77% of home searches start online*, it’s surprising how often Web-based house-hunters are kept

waiting up to 24 hours. Weichert, Realtors, has a unique strategy to respond in minutes.

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*2005 National Association of Realtors’ buyer survey. **Based on Hitwise Internet user study data.

Our proven results provide strong support for our belief inthe effectiveness of Open Houses. Our commitment to theindustry-leading Weichert Open House Program has turnedit into an especially powerful marketing technique.

To be effective, an Open House Program needs to be a 3-stepprocess. That’s because what’s done beforehand and after arejust as important to selling a home as the Open House itself.At Weichert, our first step is to use every means to drivecustomers to attend. That includes online and traditionaladvertising, direct mail and phone calling and, of course, ourfamiliar signs with their yellow balloons.** During step twoof each Open House, our Sales Associates don’t just “show”the home; they conduct tours, explain its benefits usingdetailed highlight sheets, and emphasize its affordability bypresenting several mortgage options. Step three? We committo following up with the visitors who sign our guest registry,usually with a phone call within 24 hours.

Weichert holds more Open Houses than anyone else,because we know that almost 3 of every 4 homebuyers visitsat least one open house*** and because we understand how to make them work so well for our clients.

3 of every 10 Weichert Open Houses lead directly to a sale.*

“Does an Open House really work?”

Bringing you buyers

attraction

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*Private Survey conducted by Weichert, Realtors. **Where allowed by municipality. ***2005 National Association of REALTORS® Profile of Home Buyers and Sellers.

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“What’s my agent going to do for me?”

Long before a “For Sale” sign is placed outfront, your Weichert Sales Associate will puthis or her neighborhood knowledge to work,devising a complete well- thought-outmarketing plan that will bring results right toyour doorstep.

• In an initial meeting, your Weichert SalesAssociate will measure rooms, take photos,and assess key features of your home. TheAssociate will also ask about anyimprovements you have made, discuss howto make your home more valuable, andencourage you to ask questions and expressyour worries or reservations.

• Your Sales Associate will then do the researchto devise a customized marketing plan thatwill help sell your house for the best price.That presentation may include:

– A Price Trend Analysis, Weichert’suniquely thorough method for projectinglocal market trends in order to help you set the smartestasking price

– Ad copy and a full schedule of marketing activities

– A sample of how your home will be promoted online, on our leading Web site at weichert.com and otherprominent sites

– Promotional materials with photos of your home and its special features – prepared as handouts to prospectivebuyers or for distribution to a custom mailing list

– A discussion of the specific tasks your Associate willperform to keep the process on track from the time youreceive an offer until your successful closing

Throughout the marketing and sale of your home, yourWeichert Sales Associate will make your best interests his orher own. He or she will report to you whenever there’sprogress and remain available to respond to your questionsand concerns. We’re very proud that so many sellers call usback years later when they’re ready to move again, because itdemonstrates the lasting trust engendered by our SalesAssociates’ responsiveness, drive, and clear-cut ability toachieve a timely sale at the best possible price.

At Weichert, Realtors®, we do our homework in order to effectively sell your home.

Deciding on an agent

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“What is a Seller’s Disclosure?” “How can we determine who is a

qualified buyer?”At the time of listing, you will be asked to fill out a Seller’sDisclosure. A Seller’s Disclosure is an important consumerprotection tool that benefits buyers and sellers alike. It isessentially a written statement listing any known defects aswell as any past problems that have been remedied.

The intention is to give the buyer a sense of the condition ofthe house. A Seller Disclosure minimizes misunderstandingsthat could come up later and jeopardize your sale and alsogives you some protection from legal liability, with respect todisclosure items.

It is as important to us as it is toyou that buyers are “ready and able”to purchase.

In addition to utilizing their professional training to ensurethat potential buyers are serious and qualified, our Associatesurge buyers to obtain an actual mortgage credit approvalbefore they start looking for a home. To make that easy forthem to do, a Weichert Gold Services Manager is on hand.*

Ensuring serious buyers

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*Not available in all states.

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“What happens after I receive an offer?”When you receive an offer, you’ll get an excited rush. If theoffer is a little low, however, you may want to counter, andthat’s where the negotiating skills of your Weichert SalesAssociate will come in. Rest assured that Weichert SalesAssociates are extensively schooled in the techniques andcomplex psychology of negotiation and can negotiate onyour behalf with your best interests in mind.

If the buyer counters your counteroffer, your Weichert SalesAssociate can help you set aside the emotions involved andframe your next move. Often introducing an issue other than

price can be a winner for you. For instance, your WeichertSales Associate may suggest to the buyer that while your priceis firm, you will agree to leave behind major appliances thatthe buyer would otherwise have to purchase out-of-pocket.

Your Weichert Sales Associate can help you get favorableterms as well. A flexible or delayed closing date, for example,can give you the time you need to purchase another home.Conversely, an early closing date can have real financialbenefit if you’ve already purchased another home and need toclose quickly to avoid carrying two mortgages.

When you receive an offer, or if more than one offer comesin, you also want to look at how “solid” the offer(s) is. YourWeichert Sales Associate can help you weigh the offer(s) bypointing out such crucial factors as whether the buyer has amortgage pre-approval, how much they’re putting down,whether they have a home to sell, and so on.

Sometimes the most emotionally charged negotiating followsthe various home inspections that come after the contract issigned. “Who pays for what” is strictly a matter ofnegotiation, and your Weichert Sales Associate will help youtake a balanced stance that’s 1) tough enough to protect thehome equity you want to walk away with, yet 2) has enoughcushioning to avoid alienating the buyer and jeopardizing thesale itself.

Reaching an agreement

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Adjustable Mortgage Loans: Mortgage loans under which the interest rate is periodicallyadjusted to more closely coincide with current rates. The amounts and times of adjustmentare agreed to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable RateMortgages (ARMs), Flexible Rate Loans, Variable Rate Loans.

Amortization: Repayment of a debt through monthly installments of principal and interest.The monthly payment is based on a schedule that will allow you to own your home at theend of a specific period (e.g., 15 or 30 years).

Annual Percentage Rate (A.P.R.): The A.P.R. shows the cost of the loan expressed as a yearlyinterest rate. It includes the interest, points, mortgage insurance, and other fees associatedwith the loan. The A.P.R. is disclosed as a requirement of the federal Truth in Lendingstatutes.

Buyer’s Agent: The licensed real estate salesperson who represents the interests of, andnegotiates on behalf of, the buyer of a home or property.

Buydown: A payment to the lender from the seller, buyer, or third party, or some combinationof these, that causes the lender to reduce the interest rate during the early years of the loan.

Cap: In adjustable rate mortgages, the limit on how much the interest rate or monthlypayment can change.

Closing: The final procedure in which documents are executed and/or recorded, and the sale(or loan) is completed.

Closing Statement: The statement which lists the financial settlement between buyer andseller, and also the costs each must pay.

CMA: CMA, or Competitive Market Analysis, is a comparison of homes similar to a seller’shome in terms of size, style, features, and location that have sold recently or are on the market.A CMA is prepared by a real estate agent to help set a home’s listing price; it is not anappraisal.

Contingency: Commonly, a stated event which must occur before a contract is binding. Forexample, a home sale may be contingent upon the buyer obtaining financing.

Deposit: A portion of the down payment given by the buyer to the seller or escrow agent witha written offer to purchase. Shows good faith.

Down payment: Cash portion of the purchase price paid by a buyer from his own funds asopposed to that portion which is financed.

Dual Agent: A licensed real estate salesperson who represents both the buyer and the seller ina transaction at the same time. Also applies to a buyer’s agent (see above) when the seller’sagent works for the same company. In either case, both parties must provide writteninformed consent to Dual Agency.

Escrow: A procedure in which a third (neutral) party holds all funds, documents, etc. necessary to the sale, with instructions from both buyer and seller as to their use and disposition.

FHA Loan: A loan insured by the Federal Housing Administration, a part of theDepartment of Housing and Urban Development. FHA insurance enables lenders to makeloans to borrowers who might not qualify for conventional mortgages.

Gold Services: Weichert, Realtors’ expanding array of one-stop shopping services for real estate-related needs, from pre- to post-move. See full overview in the Gold Services section of this brochure.

Graduated Payment Mortgage: A mortgage initially offering low monthly payments thatincrease at fixed intervals and at a predetermined rate.

Hazard Insurance: Otherwise known as homeowners’ insurance. This is a usualrequirement of a mortgage lender and an advisable safeguard for any homeowner toprotect against loss to the home and its contents.

Index or Rate Index: A measure of interest rate changes used to adjust the interestrate of an Adjustable Mortgage Loan. Example: the change in U.S. Treasury securities(T-bills) with a 1-year maturity, based upon their weekly average yield.

Lien: A legal claim or charge on property as security for payment of a debt or for thedischarge of an obligation.

Loan-to-Value Ratio: The ratio – expressed as a percentage – of the amount of a mortgageloan to the appraised value or selling price of the property.

Lock box: A key storage system placed on a home entrance that is accessible only by active, licensed real estate agents who must abide by a strict set of guidelines when showing a seller’s home.

Margin: In Adjustable Mortgage Loans, the number of percentage points the lender adds tothe index rate to determine the new interest rate at each adjustment.

MLS: MLS stands for Multiple Listing Service, by which member brokers cooperate in thesale of each other’s listings. Sellers may choose not to allow their property into multiplelisting, if they wish.

PITI (Principal, Interest, Taxes, and Insurance): Used to indicate the four major itemsincluded in a monthly mortgage payment.

Points: A fee charged by a lender as a service charge or as an amount needed to make theyield on a mortgage competitive with other types of investments. Each point represents 1%of the loan amount.

Price Trend Analysis: A tool developed and used exclusively by Weichert, Realtors to helpset a home’s listing price by projecting local trends. Used in conjunction with a CMA, orCompetitive Market Analysis. It is not an appraisal.

Principal: Amount of debt, not including interest; the original amount of a loan.

Private Mortgage Insurance: Insurance issued by a private company that limits the potentialloss by a lender in the event of default. Private mortgage insurance is generally required forconventional financing whenever less than 20% is put down.

Second Mortgage: A mortgage which ranks after the first mortgage lien in priority.

Seller’s Agent: The licensed real estate salesperson who helps homeowners list and sell theirhomes. This usually includes help in determining an asking price, attracting buyers,negotiating and closing.

Settlement: Same definition as closing.

Title Insurance: Insurance that protects against claims that arise from arguments aboutownership of the property.

VA Loans: Loans partially guaranteed by the Veteran’s Administration, enabling veterans tobuy a home with little or no downpayment.

“Real Estate has a language all its own.

Here’s some of the terminology you’ll be hearing.”

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Glossary