Embed Size (px)
DESCRIPTION
Â
Citation preview
1
HOME BUYERS HANDBOOK
2
You are about to embark on an exciting process and I’m thrilled to be the one to help you find and secure your future home or investment property.
I am an experienced full-time career broker. I am backed by the best brokerage in the region, the most far-reaching, interconnected luxury real estate brand in the world.
Sotheby’s International Realty has a longstanding tradition of success —for 270 years Sotheby’s has been known as a marketer of the world’s most valuable possessions. Sotheby’s International Realty is synonymous with quality and service.
Marketplace is proud to maintain Sotheby’s unsurpassed standards, treating everyone with exception-al service. Marketplace Sotheby’s International Realty has two offices and boasts an esteemed group of full time professional brokers who understand the unique mindset of clients seeking distinctive homes. Sophisticated, savvy and extensively trained in Eastside markets, these professionals have intimate knowledge of properties in their community.
Clients applaud Marketplace Sotheby’s Realty as the most savvy, discreet, professional, honest broker-age in the Northwest. We respect the business and look forward to creating a great reputation for generations to come.
WELCOME TO MY COMPANY
3
ANDY KEATINGMarketplace
Sotheby’s International Realty16261 Redmond Way 150, Redmond, WA 98052
16812 140th Ave NE Woodinville, WA 98072425.243.9000 | 206.841.8084
All you need to know about Andy Keating is that he delivers results. His expertise and dedication provide
clients with unmatched opportunities. Andy ensures client’s real estate objectives are achieved, helping find their dream home, make strategic investments, or selling their property.
At every point of the home buying and selling process, clients can count on Andy’s outstanding service. Always
a step ahead, he takes great care to keep clients informed and educated. Sellers benefit from his skillful marketing, buyers applaud his visionary ability to see potential in a property, and developers and investors appreciate his insight on real estate investment considerations like planning, land use and zoning, and design. Andy has strong negotiating skills and applies proven strategies to ensuring clients’ goals are consistently met. He values follow through and is dedicated to providing exceptional service.
Andy is accessible, pragmatic, and attentive. His goal is to help you attain yours. Contact Andy for extraordinary
service and help attaining your real estate goals.
WELCOME TO MY COMPANY
4
EXPECTATIONS OF BROKER
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
5
EXPECTATIONS OF BUYER
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
6
IDENTIFYING YOUR PRIORITIESPERSONAL PROFILE
Name(s)________________________________________________________________________
Address:________________________________________________________________________
Phone:_________________________________________________________________________
Email Addresses__________________________________________________________________
Preferred method of communication?__________________________________________________
Children’s Names and Ages:__________________________________________________________
MOTIVATION
Which best describes you: Home Owner 1st Time Buyer Renter
If renting, when does your lease expire?__________________________________________________
If you own, do you need to sell your current home in order to buy your new home?_________________
Reason for Move:__________________________________________________________________
When do you want to move in?________________________________________________________
Is that date flexible? If not, why not? ____________________________________________________
How long have you been looking for a home?______________________________________________
Have you seen any homes you like? Yes No
If yes, why didn’t you buy?____________________________________________________________
Are you looking at homes with any other sales associate? Yes No
What is the best time to look at homes?_________________________________________________
When we find the right home for you, will there be anything that could keep you from buying it? ________
_______________________________________________________________________________
Will anyone else be involved in the buying decision?_________________________________________
Have you met with a loan officer to be approved for a loan?________________________________
What is the loan officer’s name and contact info?___________________________________________
7
PERSONAL PROFILE
Name(s)________________________________________________________________________
Address:________________________________________________________________________
Phone:_________________________________________________________________________
Email Addresses__________________________________________________________________
Preferred method of communication?__________________________________________________
Children’s Names and Ages:__________________________________________________________
MOTIVATION
Which best describes you: Home Owner 1st Time Buyer Renter
If renting, when does your lease expire?__________________________________________________
If you own, do you need to sell your current home in order to buy your new home?_________________
Reason for Move:__________________________________________________________________
When do you want to move in?________________________________________________________
Is that date flexible? If not, why not? ____________________________________________________
How long have you been looking for a home?______________________________________________
Have you seen any homes you like? Yes No
If yes, why didn’t you buy?____________________________________________________________
Are you looking at homes with any other sales associate? Yes No
What is the best time to look at homes?_________________________________________________
When we find the right home for you, will there be anything that could keep you from buying it? ________
_______________________________________________________________________________
Will anyone else be involved in the buying decision?_________________________________________
Have you met with a loan officer to be approved for a loan?________________________________
What is the loan officer’s name and contact info?___________________________________________
HOUSING INFORMATION
How many will be living in your home?________________________________________________
What’s most important to you in a home______________________________________________
Do you have (or anticipate) any hobbies, interests, or lifestyle factors that would affect your housing
needs? ________________________________________________________________________
Is there a school district you prefer?___________________________________________________
What areas would you like to live?____________________________________________________
What area/ city do you and your spouse work?___________________________________________
Is close proximity to work a priority? _________ Is close proximity to school a priority?___________
Is access to public transportation an issue?______________________________________________
What type of home do you prefer? Single-Family Townhouse/ Condo Duplex
What style of home do you prefer? Rambler Victorian Traditional Contemporary
Colonial Tudor Gated Mediterranean Contemporary Ranch
Desired Condition? Move-in ready Some Work Total “fixer-upper”
How many stories? One Two Three Split Level
What Size Garage? One car Two Car Three Car Carport
How many bedrooms?_____________________How many bathrooms?_______________________
Do you need a lot of storage space?___________________________________________________
Desired Square Feet of Home? __________________Desired Lot size/Yard size?_________________
Price Range: _______________to _____________ Age Range:______________to______________
If you can’t find the home/ condo you want for the price you are willing to spend what are you willing to
do?___________________________________________________________________________
Desired features: (Check all that apply)
Laundry Room Pool Fireplace View
Storage Space Vaulted Ceilings Large Master Bedroom Dining Room
Walk-In Closets Air Conditioning Large Kitchen Large Front Yard
Large Back Yard Office Space Breakfast Area Waterfront
IDENTIFYING YOUR PRIORITIES
8
HOW I HELP
Choosing the right broker to guide you through your property purchase is essential. Too often buyers do not get the level of representation they deserve when selecting and purchasing
property. Buyers need a broker who will be unbiased in showing property and negotiate hard on their behalf. A buyer is best served by a broker who acts as the client’s agent and always puts the buyer’s interests first. Helping you purchase a home is only one facet of my job. It’s my job to provide truthful and complete information concerning the market and individual properties so you can make the best purchase decision.
I WILL:
• Explain real estate principles, contracts, and documents
• Refer you to a reputable lender that can help you assess your financial situation and pre-approve
you for a loan.
• Help you determine the types of homes and neighborhoods that most fit your needs
• Arrange tours of homes that meet your criteria
• Provide you with detailed information about homes you’re interested in
• Determine the market value of homes you’re interested in
• Assist you with writing and negotiating a mutually-accepted purchase and sale agreement
• Accompany you to the inspection
• Coordinate necessary steps after inspection
• Work with the escrow company to ensure all needed documents are in order and comleted in a
timely manner
• Using my expertise, navigate you through the complex legal process
SO BY WORKING WITH ME YOU WILL:
• Be more likely to find the home that meets all your criteria
• Decrease the amount of time it takes to find your home
• Understand all the terms, processes, and documents involved
• Have current market information to make informed decisions
• Have a skilled negotiator on your side
• Have peace of mind that all the details are being handled
• Have access to all homes listed for sale in the MLS
9
BUYER FINANCING
Determining how much you can afford before you begin your home search will save you valuable time. If you plan to finance your home purchase, start the mortgage process well before buying
a home, even before the bidding process, with a pre-approval. I also encourage you to check out the loan options that best suit you. Talk to financial institutions, mortgage companies, and/or savings and loan institutions to look at what kinds of loans are available. If you are a first time homebuyer, you may qualify for mortage programs with little money down, low interest rates, or federal programs that give beneficial rates. I can help you located a lender who will assist you in finding a financing package that will best meet your needs. But there are a few steps you should consider beforehand to make the process as smooth as possible.
CREDIT REPORTIt’s important to check your credit report before you see your lender because:• Lenders check this to determine the amount of loan you qualify for• It allows you to correct any mistakes in the report before lenders see it• If there are any blemishes in your report that are not errors, you should be prepared to explain
them to your lender
You are entitled to one free request each year from each of the three credit bureaus. The best way to do this is to go online to AnnualCreditReport.com or another similar service.
CREDIT SCOREYou may want to check your credit score at the same time you check your credit report (usually for a fee). This score influences how much lenders are willing to loan you and at what interest rate.
DOWN PAYMENTMost lenders will give better financing terms to borrowers that can put a 20 percent down payment on the purchase. If you are unable to do so, you will likely be required to purchase Private Mortgage Insurance (PMI) and perhaps pay a higher interest rate.
PREAPPROVALA letter of preapproval from a lender shows that they have checked all your documentation and are prepared to make you a loan. Getting preapproved prior to starting your home search saves you time by:• Keeping you focused on viewing only the homes that are within your budget• Helping you obtain your financing more quickly once you find a house you want to buy• Tells a seller you are a serious buyer, giving you a preference over other potential buyers
10
THE BUYING PROCESS
Buyer
Loan Application
Home Inspection
Loan Approval
Review & Clear Title
Seller’s Agent Seller
1Purchase & Sale
Agreement
2Escrow
5Determine Status
6Closing Statement
& Escrow Instructions
Taxes Mortgages Fees/ Commission
Utilities Liens Homeowners Dues
Insurance Binder
3Title Insurance
4Lender
Title Search
Issue Commitment
Record Documents
Examination
Check Taxes and Legal
Issue Policy
Mortgage Insurance
Underwriter
Verification
Credit Report
Buyer’s Bank
Appraisal
Employment
Payments
Work Orders
7Prepare Legal
Documents
8Oversee Closing/
Papers Signed
9Record &
Disburse Funds
10New Owner
11
THE PROCESS OF OFFERS
OFFERS AND COUNTER OFFERSSo you’ve found a perfect home that fits all your criteria and your price range. Now you’re ready to make an offer! We can discuss what is the best offer to make. I will help you decide and I write up an offer and present it to the seller with your terms and conditions. If your offer is accepted, you will make an earnest money deposit.
EARNEST MONEYEarnest money is a good faith deposit, but not to be confused with a down payment. When a buyer executes a purchase and sale contract, the contract specifies how much money the buyer is initially putting up to secure the contract, to show “good faith,” and how much money all together will be deposited as a down payment (the earnest money is typically credited toward your down payment &/or closing costs).
NEGOTIATIONSNow that you have submitted your offer you will begin the negotiation stage with the seller or their agent. Generally, I will handle this phase and advise you if your offer has been accepted as is, or if the seller has rejected your offer and/or is making a counter offer. Once your negotiation is complete and your final offer is accepted, you will enter into the next phase, which is the contingency phase, then the escrow process.
SOME OF THE FINAL THINGS TO NEGOTIATE IN THE CONTNGENCY PHASE INCLUDE:• Final purchase price• The inspections to be done• Who will pay what closing costs• When the closing date will be and when the transfer of ownership will occur• Special considerations of things to be included or excluded from the purchase• Special considerations such as carpet replacement or roof repair that are not part of an inspection
12
Client Opens Title Order
Order Preliminary Report from Title Department
Address items required by Title Officer per the Preliminary
Report
Preliminary Report received & reviewed
Order demands at client’s request
Preliminary Report received & reviewed
Receive demands, review & notify client
Receive Beneficiary Statement, review terms and notify client
Bills from termite company, roofers, inspection company, home warranty company, etc. are being forwarded to the Escrow Officer at the direction of the client.
Loan documents received from lender
Escrow Officer to prepare policy write-up and forward documents to the
Request loan funds from the lender
Buyers’ & Sellers’ Instructions & documents executed and
returned with funds
Escrow Officer to prepare Buyers’ & Sellers’ Instructions and all pertinent documents
Escrow Officer to call broker or client from terms
Review file to determine that all conditions have been met and all documents are properly executed, notarized & good funds are received from Buyer and from Seller, if applicable.
Loan funds received & deposited into Escrow
Record documents, close file, prepare statements and disburse funds
Delivery of commission and proceeds checks
THE ESCROW PROCESSTHE ESCROW PROCESS
13
THE ESCROW PROCESS
OPENING THE ESCROWAfter the buyer and seller agree to terms of a sale, the sale goes into escrow, which can take several weeks (30-45 days) to reach closing. Escrow can be opened by the buyer or the seller’s real estate agent. The escrow agent and their company act as a neutral third party for serving as custodian for funds and documents, providing a clearing house for payment of demands and performing clerical de-tails for the closing.
WHAT THE ESCROW COMPANY DOESWhen the escrow is opened, an order for a title report/ commitment is placed with the title compa-ny, which shows ownership of a parcel of land and recorded matters that are relative to the property. Then a plan is set for the necessary action and documents required, such as demands for satisfaction of liens, instructions for recording documents and other requirements of the new lender. In most ar-eas, buyers and sellers instructions are prepared for signature from the information gathered.
ESCROW INSTRUCTIONS AND YOUR CLOSINGYour escrow office or real estate agent will contact both you and the seller for an appointment to sign escrow instructions and supporting documents.
Bring a legal form of identification with you, such as a current driver’s license, passport or ID card (miliary or state). At this time you will normally be advised of the amount of money you will need to deposit and/or receive depending on if you are the buyer or seller.
When the instructions from all parties can be fully complied with, escrow is ready to close. At that time all required funds have been receipted in escrow, the documents are recorded, funds disbursed and the policy of the title insurance is issued.
As the buyer, you will be informed about the disbursement of keys by the real estate agent or seller.
REMINDERS• To transfer funds to another escrow or wire to another account at close, make arrangements with
the escrow agent• Power of Attourney- make arrangements early, including approval by the title company and buyers
lender• Natural Disasters - shop for homeowners or flood insurance as soon as your offer is accepted• Your loan payoff will continue to accrue interest to the date of receipt by your lender• After your escrow agent/ holder sends your payoff check to your existing lender you can expect
to get the return of your impound account back direct from your lender within 30-60 days after close.
ESCROW & CLOSING
14
COMMON WAYS OF HOLDING TITLE
Title to real estate may be held by a single individual or entity, known as Co-Ownership. Following is a a brief list of common ways to hold title. Ownership and tenure of title varies by state.
Remember, it is important to distinguish the proper way to hold title to your property. You may want to consult with your attourney or tax advisor for what form suits your particular circumstances and needs.
SOLE OWNERSHIPWhere an individual or entity is the sole and/or separate owner of the realty. 1. Single Individual: A single individual who has not been legally married2. Unmarried Man or Woman: A man or worman who was previously married and is now legally divorced. 3. Married Man or Married Woman, as his/her Sole and Separate Property: A married man or woman who will hold title without a spousal interest (The title company insuring title may specifically require the excluded spouse to relinquish his or her right, title, and interest to the realty by recorded quit-claim deed or other recorded instrument).
CO-OWNERSHIPWhere two or more individuals or entities are the owners of the realty. 4. Community Property: A form of co-ownership by a legally married husband and wife5. Registered Domestic Partnership: A legal union of two persons of the same sex, when registered with the State of Washington6. Joint Tenancy: A form of Co-Ownership by two or more individuals (none of which can be a Cor-poration, Partnership, Limited Liability Company, of Trustees of a Trust) held in equal shares, by a title created by a single transfer, when expressly declared to be a joint tenancy. ON the death of one Co-Tenant the survivor, or survivors, take no new title but hold the entire estate under the original trans-fer, if the joint tenancy has been legally broken. 7. Tenancy in Common: A form of Co-Ownership with two or more other individuals or entities. The interest of each individual or entity may or may not be stated and may not be equal. A Tenant in Common has the right to deal with its interest as it sees fit (sell, hypothecate, lease, gift, etc).
OTHER FORMS OF OWNERSHIPEntities created under state law, such as: 8. Corporation: An artificial entity created under the authority of the laws of a state, usually regarded separate from its shareholders. 9. Partnership: An artificial entity created under the authority of the laws of a state as an association of two or more individuals or entities to carry on, as co-owners, a business for profit. 10. Limited Liability Corporation (L.L.C.s): An artificial entity created under the authority of the laws of a state and can be considered a hybrid of a corporation and partnership. 11. Trust: A confidence in one person to hold and administer for the benefit of another. The legal title to realty is held by the Trustee who manages the realty for the benefit of the Beneficiary pursuant to the terms and conditions of the Trust Agreement.
15
BUYERS GLOSSARY
LOAN AMOUNTThe amount of the mortgage based on the purchase price, minus the down payment
DOWN PAYMENTCash that the buyer provides the lender as their portion of the purchase price. The down payment is considered the buyer’s equity (or cash investment) in their home
POINTSFees charged by the lender to offset their interest rate, if it’s below the prevailing market rate. One point equals one percentage point — so one point on a $100,000 loan would be $1,000
APPRAISAL FEEThe amount paid for the lender’s appraisal of the property
CREDIT REPORT FEEThe fee charged by the lender to obtain a credit report on the buyer
TITLE INSURANCE FEEA one-time premium that a buyer pays for protection against loss or damage in the event of an incorrect search of public records or misinterpretation of title. The title insurance policy also shows what the proerty is subject to in terms of liens, taxes, encumbrances, deed restrictions, and easements
ESCROW FEEThe amount a buyer pays the escrow company or closing agent for preparing papers, accounting for all funds, and coordinating the information between all parties involved in the transaction
CLOSING COSTSA gerenal term for all the estimated charges associated with the transfer of ownership of the property
PREPAID INTERESTThe amount of interest due on the loan during the time period between the closing of escrow and the first mortgage payment, due at the time of closing
PITIThe estimated house payment, including principal, interest, taxes, and insurance
PRINCIPAL AND INTERESTThe loan payment, consisting of the amount to be applied against the balance of the loan, and the interest payment, which is charged for interest on the loan
TOTAL CASH REQUIREDThe total amount of cash the buyer will need, including down payment and closing costs
PRINCIPLE MORTGAGE INSURANCE (PMI)Insurance for the lender, to cover potential losses if the borrower defaults on the loan
16
MOVING CHECKLIST
16
ONE MONTH BEFORE MOVING:
___________ Reserve a rental truck
___________ Acquire moving supplies (boxes, tape, rope, packaging materials)
___________ Make travel arrangements if moving far away
___________ Save moving receipts, some are tax deductible
___________ Put all necessary documents (legal, medical) in a safe place
___________ Notify post office, friends, banks, credit card companies, doctors, dentists, state and federal tax authorities of move
TWO WEEKS BEFORE MOVING
___________ Inform gas, electric, water, cable, and phone of move
___________ Recruit moving day help
___________ Make arrangements for alternative transportation
___________ Arrange to close or transfer your bank account
___________ Assemble a folder of important information about the house for the new owner of your home
___________ Cancel any scheduled delivery services
___________ Confirm travel arrangements for pets and family
___________ Help emtpy the refrigerator by planning meals for the last week of the move and avoid using appliances that will already be packed
___________ Pick up traveler’s checks or cash for “on the road” expenses
___________ Return library books and DVD rentals
17
THE DAY BEFORE MOVING:
___________ Set aside all moving materials that will go with you and not on the moving truck, like legal documents and valuables
___________ Pick up rental truck
___________ Confirm tickets, charge cards, etc.
___________ Defrost refrigerator and freezer
___________ Make sure to have cash, a money order or a certified check to pay the moving truck driver
MOVING DAY:
___________ Make a list of every box and item that is loaded on the moving truck
___________ Inform the mover of where you can be reached
___________ Lock all doors and windows before leaving
___________ Make sure the appliances and water have been turned off
___________ Leave the garage door openers and keys in the house
AFTER MOVING:
___________ Notify senders of mail that you have moved
___________ Register to vote
___________ Contact DMV if you have moved out of state
___________ Contact Department of Sanitation to see when the trash will be picked up
___________Provide new doctors and dentists with medical history of your family
___________ Transfer insurance policies to an agent in the community
___________ Call Chamber of Commerce for help finding schools, cable service, hospitals, police stations, banks, cleaners, fire stations, etc.
MOVING CHECKLIST
18
HOME COMPARISON
HOUSE A HOUSE B HOUSE C HOUSE D
ADDRESS
NEIGHBORHOOD
PRICE
AGE
SQ FOOTAGE
# BEDROOMS# BATHROOMS
GARAGE
ROOF CONDITION
OVERALL CONDITIONAL
OTHER AMENITIES
RATING
19
SEARCH ON THE GO
Marketplace Sotheby’s International Realty partnered with Smarter Agent, the leader in mobile real estate technology, to co-develop the free Sotheby’s International Realty mobile application. SIR
Mobile is leading the charge of the growing mobile marketplace and helping our network own the mobile relationship with your clients and potential clients. Mobile works on all phones and iPads.
20
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
MY NOTES
21
MY NOTES
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
16261 Redmond Way St. 150, Redmond WA 9805216812 140th Ave NE Woodinville WA 98072
425.243.9000 | MarketplaceSIR.com
I M A G I N EH O M E O W N E R S H I P
