CAPAdvantage:

Preserving Homeowner Equity

---

Capital Valley Realty is proud to introduce CAPAdvantage, an innovative new residential sales program created to respond to today's new market realities.

CAPAdvantage offers sellers the opportunity to save thousands of dollars in real estate commissions and preserve more of their home equity.

It gives buyers peace of mind knowing that the home they are purchasing has been CAPAdvantage Qualified.

A CAPAdvantage home has a unique market distinction that comes from having completed premarket inspections and disclosures when listed for sale.

Sellers: As the Seller of a CAPAdvantage home, you will receive all of the personal attention and customer service provided of our full service real estate firm and at a much lower commission rate.

Buyers: As the Buyer of a CAPAdvantage home, you will have much more information about your prospective home before making an offer because of the seller premarket inspections, disclosures and repairs (if any) that were completed before the home was listed for sale.

Real Estate Agents: CAPAdvantage homes offer real estate agents faster and smoother transactions, less transaction fallout and reduced costs.

Capital Valley Realty is always looking for better, more innovative ways to provide superior service to our clients. CAPAdvantage gives our clients even more control over their real estate sale or purchase by making qualified homes available on the market that reduce seller costs and increase buyer satisfaction.

---

FAQ's

Click on the questions below to view the answers

What is CAPAdvantage?

The CAPAdvantage program from Capital Valley Realty Group (CVRG) is a new way to sell and purchase real estate. It enables the seller the opportunity to save thousands of dollars in real estate commissions and preserve more of their home equity. It further gives the buyer peace of mind knowing that the home they are purchasing has been CAPAdvantage qualified. A CAPAdvantage home has a unique market distinction that comes from having certain inspections, disclosures and possibly some needed repairs completed prior to the property being listed for sale or just thereafter.

What market advantages does the CAPAdvantage program offer me as a seller?

As the seller of a CAPAdvantage qualified home you will receive all of the comprehensive services that you have come to expect from Capital Valley Realty and you will pay less for them. CAPAdvantage sellers pay a commission of 3.5% instead of the standard 5-6% most agents charge to sell properties. With CVRG, a reduced commission rate does not mean reduced services the way it does with discount brokers. You will receive all of the same services that we have always provided our full fee clients.

Additionally, your CAPAdvantage home will be taken through a series of basic inspections designed to find and help you repair or disclose any safety or heath hazards, deferred maintenance, code violations or other items about the property being marketed. CVRG will also require/encourage you to inspect and clear all Section I pest work. By doing these inspections, disclosures and possibly repairs in advance, you give the buyer an incentive to view your home first and there offer price can be based upon greater confidence about the condition and status of the property. This is a clear market advantage for your home.

What market advantages does the CAPAdvantage program offer me as a buyer?

As the buyer of a CAPAdvantage home you will know that the home you are purchasing has been qualified by the seller and the property meeting certain standards. A CAPAdvantage home has already had an important series of inspections completed and the seller has disclosed upfront any other known issues on the property.

In qualified homes, Section I pest work will be completed. Also, any health and safety hazards and code issues will be inspected, repaired and/or disclosed prior to the home being listed. The benefit of these pre-market inspections is that you will know more about the CAPAdvantage home you are viewing than other listings on the market. A one-year home warranty is included in all CAPAdvantage homes.

Does that mean that as a buyer I do not need to have any other inspections done on a CAPAdvantage home?

No. Buyers are still highly encouraged to perform all necessary and needed inspections they would normally conduct during the contract investigation period. The difference with a CAPAdvantage home is that you will have more information upfront when making your offer than you have with other market listings.

How can CVRG offer its complete range of real estate services for such a low commission rate?

The CAPAdvantage program is only available to homes and sellers that qualify. These homes are newer homes and may not be in a short sale or REO. They must be seller owned and occupied. And, the seller must be willing to have inspections done as well as prepare disclosures upfront.

By focusing on a smaller pool of sellers that meet these parameters, the sale of the property will be accelerated. We believe that CAPAdvantage homes will sell faster and at a higher price relative to other properties because more information is being provided upfront versus after both parties agree to a purchase price based on property unknowns to the buyer (and quite possibly to the seller). This is a market advantage that CVRG will pass on to the seller via a lower commission rate.

How is CVRG different from existing brokerages already offering low commissions?

Flat rate and discounted brokerages have been around for a long time. Most people, especially in California, choose not to use them because of the complexity of the real estate transaction and the pay-for-service format. CVRG is committed to superior personal service for each and every client. We will never offer less than our best, high quality services regardless of the commission structure. CAPAdvantage homes will receive the same sales and marketing efforts as our full commission clients nothing less.

Aren't properties already selling at discounted commissions?

Yes, on a case by case basis particularly those selling as bank owned properties. However, most agents are reluctant to reduce their commissions as they don't have the means to provide full-service brokerage at discounted rates. CVRG is one of the first local real estate companies to institute a formal program that supports a discounted commission structure while still providing full-service brokerage.

Won't the buyer want to take advantage of seller's lower commission and make a lower price offer?

We think not. First, CAPAdvantage sellers have a market advantage because the qualification process takes away many of the buyers' upfront concerns prior to an offer being submitted. In addition, this gives the seller the leverage to counter the offer and likely command a higher price regardless of what the commission rate is.

Secondly, the buyer ultimately isn't concerned about what the seller nets just the price they pay relative to other properties on the market. Because the property unknowns/uncertainties have been greatly reduced upfront, the buyer will feel more comfortable writing a higher price offer.

Won't my property sit on the market longer than those paying higher commissions to selling agents?

Probably not. First, CAPAdvantage homes have a distinctive appeal because they have been qualified. They will have a unique distinction that CVRG will market for you, giving your CAPAdvantage home a special market status. Buyers, who are now in command of seeing all listings that come on the market via the internet without the services of an agent, will want to see the best homes-CAPAdvantage homes first. With all the extra services that are included with a CAPAdvantage home, buyers will be more likely to want to see and bid on your home first when priced in comparison to other similar properties (including actives, pendings and solds).

Will agents working with buyers avoid our listing because of the lower commission rate?

An agent should be working for a buyer's best interest! As a buyer if you want to see a home, no reputable agent will want to stop you from seeing it. Good agents want you to have the home that is best for you and will not let a lower commission rate stop them from helping you find it. We believe agents who put their self-interest before that of their clients' simply because of a lower commission rate will work themselves out of the business.

We also believe that there will be lower transaction fallout because of the inspections and disclosures being made upfront thereby saving the agent time and energy. An agent's time is valuable and this program is intended to respect that aspect by being pro-active and streamlining the paperwork process.

Can't the seller provide all disclosure documents during the listing period rather than before the property is listed?

ANo. CVRG needs to review all of the reports and disclosures for completeness and will be attaching the documents to the listing on MLS at the time of going active. Buyers will be directed to ask their agent for the information and agents need to be able to respond to their requests. This process also provides an added convenience to both the seller and the buyer of getting some of the real estate transactional paperwork out of the way so all parties can focus on negotiating the best offer for the property given more information is available to both parties not less.

What if the CVRG listing agent I have is not responsive and doesn't appear to be providing full-service brokerage - what can I do about it as a seller?

When agency and listing agreements are signed by the seller and the brokerage, the listing and client become part of the company brokerage and not the individual agent. Thus, the broker will have the discretion to remove the agent and assign the listing and client to another CVRG agent at anytime. This will make initially assigned agents more accountable for their actions or possibly lack of actions for that matter. No good agent wants to lose a listing that they've worked hard to market. Further, CVRG agents believe in the CAPAdvantage program and are eager to provide full-service brokerage to all clients without distinction.

Why is CVRG doing this?

Capital Valley Realty Group is always looking for better, more innovative ways to provide superior service to our clients. We know our clients are in control of the purchase and sale of real estate more than ever before. We want to embrace that change. CAPAdvantage gives our clients even more control by making specially qualified homes available on the market that reduce seller costs and increase buyer satisfaction.

This is not intended to be an exhaustive list of all questions that may come about from this program. So, you are encouraged to consult with one of our real estate professionals to learn more about this program and how it can benefit you, whether you are a buyer, seller or another agent.