Essential Buying Information

1. Essential Buying Information Provided by: Natalie M. Johnson, REALTOR Coldwell Banker Schmitt Real Estate Co. “The Most Trusted Name in Florida Keys Real Estate” 1955 - 2014

2. Thank you for the opportunity to provide the following information to assist you in understanding the process for, and all that is involved in, buying your property in the present Florida Keys real estate market. Coldwell Banker Schmitt’s Competitive Advantage Current Market Conditions The Property Buying Process “Points of Difference”that set CB Schmitt apart from other companies

3. CBSREC Competitive Advantage Company Mission Statement To build on our heritage as the area’s oldest and largest, full-service Real Estate Company providing unparalleled service, with resulting profits to our company, associates, customers and clients, while steadfastly maintaining the highest ethical standards necessary to remain… “The Most Trusted Name in Florida Keys Real Estate” Our “Mission Statement” provides the foundation and guiding principles for management, staff and agents to rely upon in order to achieve ever increasing levels of success for themselves, their customers and their clients. Because these guiding principles constitute the moral fabric of the company, CBSREC will continue its now 58-year heritage of full, unparalleled and highly ethical service to its associates and their clients!

4. Current Market Conditions Florida Keys Real Estate Market

5. Florida Keys Real Estate Market Jan-May 2014 Vs. 2013

6. 3,468 263 248 +6% -21% 2,724 -27% Number Properties Available Vs.Sold – Keys-WideSource: Florida Keys MLS

9. The Home Buying Process Move In! Buyer “Buyer Interview” with CB Schmitt Agent Provide Buyer with Current Market Conditions & “Keys” Property Buying Process” & “Florida Agency Regulations” Settlement Keys & Move In Understand Buyer’s Goals & Requirements Search for & Find YOUR Property! Pre-Settlement Walk-Thru Select Areas & Homes Pre-Qualify with Lender Phone, Water, Electricity to Buyer’s Name Contingencies: * Financing * Home Inspection * Pest Inspection * Sellers Disclosure * Close Open Permits Present Offer with Earnest Money Deposit Negotiations & Acceptance Home Owners Insurance Loan Commitment (Credit, Assets, Survey & Appraisal) Mortgage Approval Select Settlement Company Inspections

10. What Is Important To You In Buying Property? CB Schmitt continues to ask Buyers what is important to them • The five most important • Buyer priorities: • Help finding the right home to purchase • Help with price negotiations • Help with paperwork • Assistance finding & arranging financing • Information on the Sale Price of comparable properties Our “Property Buying Process”is designed to meet those priorities to achieve Your real estate objective.

11. “Property Buying Process” • Our Interactive Interview: • Informs me about your real estate goals & dreams • Informs you about current market conditions and trends • Provides you important information concerning the process for purchasing property in the Keys

12. “Property Buying Process” Please provide me your thoughts on the following: Your criteria for selecting a real estate company: 1. ____________________________________________2. ____________________________________________3. ____________________________________________ Your criteria for selecting a Sales Associate:1. ____________________________________________ 2. ____________________________________________3. ____________________________________________ Your primary buyer needs: 1. ____________________________________________ 2. ____________________________________________ 3. ____________________________________________ Your concerns about purchasing property in the Keys: 1. ____________________________________________2. ____________________________________________3. ____________________________________________

13. “Property Buying Process” • Property Search: • Enter you criteria in the Multiple Listing Service (MLS) • Together we review results and determine the properties to visit • Do ask me about properties you see on the Internet, advertised or with a sign so I can provide you detailed information about them • We will visit properties that are of interest to you • For the “Best Fit”property I will provide: • Buyer’s Real Property Sales Disclosure with information about purchasing in the keys and specific information that addressees: • Status of Open/Expired Permits • Status of County Code Violations • FEMA list status • If the property has a Downstairs Enclosure, whether or not it conforms to FEMA requirements to qualify for Flood Insurance • Sewer system information • Comparative Market Analysis (CMA) • Detailed information for similar properties to assist you in determining an “Offer Price” • Tax Records and Property Record Card • “Closing Cost”– Preliminary estimate

14. “Property Buying Process” • Preparing, Submitting & Negotiating Your Purchase Offer: • Add to your negotiating power by being pre-approved for a mortgage, for that shows sellers and their agents you are serious about buying. • Determine the Terms and Conditions of the Purchase Offer • Complete the FAR/BAR “As Is” Contract For Sale And Purchase, including as appropriate for the property: • Monroe County Local Rider to “As Is” Contract For Sale and Purchase which modifies the State wide contract to address purchasing property in the Florida Keys • Seller’s Disclosure provides you information about the Seller’s knowledge of the property • Buyer’s Inspection Disclosure for the Seller to update specific information about the property • Assist you in preparing responses and counter offers appropriate to your purchase objective • Keep you informed every step of the way to achieving a satisfactory contract to purchase that property

15. “Property Buying Process” • Support You from Contract Acceptance to Closing • Provide & discuss with you the “Critical Dates Checklist” of buyer items to complete prior to taking ownership, such as: • Additional Escrow Deposits • Property Inspections • Loan Approval • Insuring the property prior to closing • Electric and Water placed in your name as of the day of closing • Wiring funds to close • Assist you to complete inspections and determine your course of action depending on the results • Provide you with a list of companies and individuals that can provide expertise and services related to your specific needs • Provide you a “Contact List”of agencies to establish service for your new property and getting settled in the Keys • Together we will conduct a “Walk-Through Inspection” of the property to verify the condition is in accordance with the terms of the contact and completion of any required repairs the day prior to morning of closing

16. The “Points of Difference”that set CB Schmitt apart from other companies • Top reasons Buyers • choose to work with CBSREC: • Our reputation • Market Knowledge • Customer Satisfaction • Personal Contacts • The Coldwell Banker Reputation

17. “Points of Difference” • We are a “Single Agency”Company: • Single Agency means that I am your advocate • I will represent you and your interest above all others including my own • I can provide the full spectrum of representation to you including the fiduciary responsibilities of loyalty, confidentiality and obedience • I will present all offers and counteroffers in a timely manner • I will disclose all known facts that materially affect the value of your property and are not readily observable • We believe this is the type of representation you expect and deserve as we “Stand in Your Shoes” so to speak while getting your property Sold! • Most Other Companies are Transactional Brokerages • They represent both parties, or “The Transaction” • Limits the confidentiality and direct support they can provide to you

18. “Points of Difference” Florida Law of Agency Continued . . . • The Single Agency relationship serves all parties well except when agents of CBSREC represent the seller and the Buyer in the same transaction (in-house sale). • In that instance the law forces the agents to transition from being a Single Agent to a Transaction Broker wherein we provide both parties with fair and honest dealing, skill, care and diligence, accounting and disclosure of all know facts that material affect the value of the property. • This limited form of representation allows the agents to facilitate the transaction by assisting both the Buyer and the Seller, however the agents will not work to represent one party to the detriment of the other. • The benefit is we will be working with a well-trained, experienced, and successful Coldwell Banker Schmitt agent, which facilitates a smooth and orderly process to closing. • To ease this transition CBSREC policy is to ask all Buyers whom we represent as single agents to allow us to provide this form of representation when showing and negotiating an offer on a CBSREC listing.

19. “Points of Difference” Important Documents for Buyers • Buyer’s Real Property Sales Disclosure • Purpose: Provide substantive information about purchasing property in the Florida Keys • Benefit: You understand the unique differences in buying property in the Keys, to assist you in achieving your real estate goals • Deposits & Closing Cost • Square Footage Guidelines • Property Tax Changes Disclosure • Survey, Building Inspections • Open/Expired Permits & Code Violations • Monroe County Requirements for Properties Located in a Coastal Floodplain, Downstairs Enclosure Issues & Non-Conforming Use • Flood Insurance & Congressional changes to the FEMA National Flood Insurance Program • Elevation Certificate & determining Flood Insurance Cost during the Inspection Period • Land Use Disclosures • Vacation Rentals • Concrete Spalling, Lead Based Paint, Radon Gas, Mold & Chinese Defective Drywall • Sewage Systems and Upgrades Disclosure

20. “Points of Difference” Important Documents for Buyers • Buyer’s Services Guarantee • Purpose: A written commitment to perform 22 specific services to fulfill my obligation to assist you in purchasing property in the Keys • Benefit: You know what I will do to assist you in finding and purchasing your property and guarantees my performance will meet your satisfaction • Understanding your needs, desires & goals • Your Agency alternatives & Buyer representation • Financing pre-qualification assistance • CB Schmitt Team search • Property showing and evaluation of properties • Seller’s Disclosure form & Property Inspections • Appraisal contingency & Home Warranty • Estimate of funds required to purchase • Offer preparation, Negotiation Strategy & Presentation of your offer • Property Inspections & Inspection remedies • Closing the sale & Pre-closing Walk-Through • After the sale service & Service Satisfaction Survey • Personal & timely response

21. “Points of Difference” Important Documents for Buyers • Buyer’s Inspection Disclosure • Purpose: to ensure you are aware of your rights for inspections and that you have updated, detailed information from the seller about the history and condition of any property you desire to purchase • Benefit: You are able to make an informed decision about purchasing the property of your choice • Property Research & Evaluation Program • Liens and legal Information provide you important information about properties of interest • Deeds and Permits Research so you have up-to-date information concerning potential issues affecting transfer of ownership for a property of interest • Tax Records provide additional information for a property of interest • Property Data Record Card has the most detailed information about the history of a property • Open and Expired Permits and Code Violations and the impact to a purchaser of that property • Base Flood Elevation for properties of interest to you • Sewage Treatment and Disposal system provide you with current type sewage system and expected type and cost for the required system by 2015

22. More “Points of Difference”that set CB Schmitt apart from other companies

23. Properties I Recently Sold Or Pending under contract

24. Client Ratings of My Services So glad that finally it's over and BIG THANKS again for all your help! I'm trying to convince some people here to invest in the Keys as well and recommend you as the best Realtor to reach this goal. -Daniel "Had a wonderful time with Ms. Natalie Johnson. She made a stressful time easy on everyone and kept me well informed on everything during the whole evolution- Great Job Overall! Thank you!“ - Luke  "Natalie is a rock star!  She worked so hard for us over the year it took to get us into a house.  She goes above and beyond expectations. Can’t say enough about how positive she made the whole process.” - Chris, Hope, Raymond & Joan S.