Buyer Information

Explanations

Seller's Confirmation Level:

This is the maximum price to which the seller has the right to reject the bid. Once the bidding reaches or exceeds this level, the seller must accept the highest bid. This is NOT the price at which the bidding will begin.

Buyer's Premium:

The buyer of a property shall pay a "Buyer's Premium" equal to 10% of the final bid. Said premium shall be added to the final bid to determine the total purchase price.

Example: The high bid is $25,000. Ten percent or $2,500 is added to the high bid to arrive at the total purchase price of $27,500.

Deposit on Sale Day

· Your deposit MUST be in cash or cashier's check. A personal check may be acceptable by prior approval by Harris Wilcox Inc. representative.

· If you choose cashier's check, have it made payable to you.

· Your deposit is nonrefundable if you default on the purchase.

· You MUST have the deposit with you sale day in order to bid.

Agency Disclosure

· Harris Wilcox Inc. is an agent of the seller.

· The documentation used at our sales have been approved as to form by the sellers attorney. Before bidding, we recommend the buyer have his attorney review the purchase offer. Upon signing the purchase offer, the buyer shall acknowledge that either his attorney approved the purchase offer or the buyer waives his attorney's approval.

Financing Options

Auction Supplied Financing:

· Lender will finance property in "as is" condition; no well nor septic testing required unless required by Town or County

· If borrower is going to use bank financing they should be pre-qualified prior to sale.

· Terms vary according to property.

· Adjustable rate mortgages available.

· Fixed rate mortgage sometimes available. Buyer & property must qualify. Additional terms apply.

Buyer Secured Financing:

· Should your lender require repairs, buyer is financially responsible. The property is sold "AS IS".

· Should your lender require instrument survey, buyer may be financially responsible for new survey.

· Tentative closings are usually 4-6 weeks from auction sale date. Lender must be able to accommodate this time frame.

· Buyers are not obligated to use financing available at Harris Wilcox, Inc. auctions. Harris Wilcox, Inc. does not receive financial gain from this financing. It is a third party service provided to expedite the sale.

Real Estate Closing Costs Associated with a Buyer

· 1 year property taxes and homeowners insurance to be escrowed

· Attorneys Fees

· Mortgage application fee & Appraisal Fee

· 5-25% Down payment (varies according to lending institution & mortgage program)

· Deed & Mortgage recording fees

Mortgage Pre-Qualification Requirements

We need to know:

· Buyer's gross annual income or adjusted gross income if self-employed.

· Net income from rental properties.

· Monthly debt obligations (i.e.,: mortgage amounts, car payments & amounts, credit card monthly payments, student loan monthly payments, any other monthly debts, child support, alimony, etc.).

· Total verifiable cash available to buyer (used to calculate down payment and closing cost capabilities).

· Social security number for each applicant (enables Harris Wilcox, Inc. to verify buyer's credit history).

Closing

· Generally 3 to 5 weeks following sale

· Buyer officially takes title to the property

· Buyer's responsible for utility change over

· Keys will be given to buyer at this time

Miscellaneous

The guidelines given within this brochure are considered "general" in nature. Both the property and buyer may require special consideration. If you believe your circumstances warrant such consideration, please notify us and we will willingly analyze your situation.

Mortgage Cost per $1,000 Financed

Interest - Years Financed
Rates - 10 15 20 30

5.50% 10.85 8.17 6.88 5.68

5.75% 10.98 8.30 7.02 5.84

6.00% 11.10 8.44 7.16 6.00

6.25% 11.23 8.57 7.31 6.16

6.50% 11.35 8.71 7.46 6.32

6.75% 11.48 8.85 7.60 6.49

7.00% 11.61 8.99 7.75 6.65

7.25% 11.74 9.13 7.90 6.82

7.50% 11.87 9.27 8.06 6.99

7.75% 12.00 9.41 8.21 7.16

8.00% 12.13 9.56 8.36 7.34

8.25% 12.27 9.70 8.52 7.51

8.50% 12.40 9.85 8.68 7.69

9.00% 12.67 10.14 9.00 8.05

9.50% 12.94 10.44 9.32 8.41

10.00% 13.22 10.75 9.65 8.78

10.50% 13.49 11.05 9.98 9.15

11.00% 13.78 11.37 10.32 9.52

Example:

A $50,000 mortgage amortized for 20 years at 7%:

50 x $7.75 = $387.50/month for principal/interest