Helping you
find Home
Buyers’ Guide
PRESENTED BY CARLY DORENDORF
“
Carly closed the deal for our dream home! She was very resourceful, knowledgeable, attentive and friendly. Oh and did I mention that she was 9 months pregnant during all this! Her dedication to her clients is amazing. We would definitely recommend her for all your real estate needs. Thank you, Carly, for everything! The Riedels Purchased a Home in 2021
”
Carly Dorendorf REALTOR® | DRE #01955730 Pacific Sotheby’s International Realty
Welcome Home We take great pleasure in discovering and bringing to life all the things that make a home unique. Our considerable experience, resources and global connections artfully unite these special places with those who will cherish them as we do. Pacific Sotheby’s International Realty’s team of local experts makes every move seamless by providing the latest market data, local insights, and exceptional service.
Elevated Service Purchasing a home is one of the most important financial transactions of your life. You are not only choosing a new place to live but making a substantial investment and creating a significant asset. Your Advisor will provide you with the support, market knowledge and strategic skills they have honed throughout their careers to help you successfully navigate the competitive market.
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Your Step-by-Step Guide to
The Home Buying Process 1
Find the right Realtor
2
Obtain a Loan Pre-Approval
3
Begin Searching for a Home
4 5
Make an Offer
Offer Presented to Seller
6
Offer is Accepted
7
Escrow Opens
8
Closing
The Home Buying Process
1
FIND THE RIGHT REALTOR Buying a home is a complex process. An experienced real estate agent will assist you through the search, analyzing comparable homes sold, making an offer, the inspection, repairs and the appraisal process.
2
The seller’s real estate broker pays your agent/broker’s commission. If you don’t use your own agent, the seller’s broker keeps the commission.
Ask your real estate agent for a referral to a trusted lender. Having a great lender can make a huge difference in how smooth the purchase will be.
Having real estate broker/agent works in your best interest.
5
Your Realtor will submit your offer, along with your mortgage pre-approval to the listing agent. The listing agent will present the offer to the seller. It can sometimes take a few days for the seller to respond to the offer. • Offer may be negotiated. • Counter-offer could be sent. • Multiple offers may be received. • Seller can send a multiple counter-offer to the best offers.
Obtaining a pre-approval for a mortgage is the next step towards achieving your home-buying goal. Knowing what price point you qualify for is critical. You will also have a better idea of what your mortgage payment will look like. When you are ready to submit an offer on a home, the listing agent and seller will want a copy of the pre-approval to be confident you can complete the purchase.
A Realtor will also help you find the best value, neighborhood and quality for your budget and requirements.
OFFER PRESENTED TO SELLER
OBTAIN A LOAN PRE-APPROVAL
6
OFFER IS ACCEPTED Your offer is accepted once all parties, buyer and seller, have signed the offer. It then becomes a legally binding agreement. The day your offer is accepted is considered “Day 0” for all the timelines in the contract. A copy of the offer/purchase agreement is then sent to the escrow company.
3
BEGIN SEARCHING FOR A HOME Start your home search! Your Realtor should set you up on a search through the MLS that meets your home criteria. Your agent will help identify homes that have potential. Many buyers also choose to look on third-party sites like Zillow. Your Realtor will arrange showings for the homes you like and accompany you to the houses. Having your trusted agent with you when viewing the home will help build a great relationship and help your Realtor understand what type of home you are looking for.
4
MAKE AN OFFER Once you have found a home you want to make an offer on, your Realtor will walk you through the purchase agreement. Writing an offer with all the terms you want and that will be appealing to the seller is where the expertise of your agent is vital. Feeling confident in the offer and knowing what is in the offer is important.
Your Realtor will also help identify pros and cons based on knowledge and expertise.
7
ESCROW OPENS Escrow is a neutral third party to the transaction, ensuring that the purchase contract is executed. Escrow also handles the monetary aspects of the transaction. This process typically takes between 30-45 days. • You will submit your earnest money deposit. • Seller will provide disclosures. • Your agent will help arrange a home inspection. • Title will provide a title report. • The loan will be processed and the appraisal will be done.
8
CLOSING The lender will provide a final loan approval. You will sign all the loan documents. Once the loan funds and the new title records, escrow will be closed and you will own your new Home!
Why
Buy?
According to the National Association of REALTORS®, the primary reason buyers cite for purchasing a home is simply the desire to own, followed closely by the desire for more space and a change in the family situation. What are your goals for buying a home? You might want a better home and neighborhood. You might want a different kind of living experience, such as moving from an apartment to a single-family home with a private garage and yard. Your family may be growing, so you have to think about school districts and proximity to parks and other recreation. If you’re not certain, you might think about what would change about your situation if you became a homeowner. You’ll definitely be more established. If you’re like most homebuyers, you expect to stay in your new home about 10 years.
Equity When you own your home you will be able to build equity for yourself, instead of for someone else. Part of every payment you make goes towards paying down your mortgage. Then there’s inflation, the general increases of prices over time. Paying down your loan and inflation will ideally allow you to make a profit when selling. Affordability may also be an important factor for you. Recently, interest rates for mortgage loans have been historically low. Rents are rising, making ownership more affordable than renting in many areas. When you buy, make your goals long-term. Choose the home you think will serve your household’s needs the best for the longest period of time, as it’s been proven that the longer you own a home, the more equity you’ll build.
Your
Wish List AffordabIlity Your monthly mortgage payments should be comfortable for you. It is also important to consider the monthly expenses that can be associated with owning a home.
Location Where would you ideally like to live? Consider your lifestyle, commute and the neighborhood attributes that you would want.
Features Make a list of must-have features so you can narrow your home search. How many bedrooms would you ideally like to have? Would a large or small yard suit you best? Is a home that is highly updated important to you? Or are you willing to make some updates?
Expectations There’s no perfect home. You may want all the latest amenities of a new home, but even new homes may require some sacrifices. Many sellers don’t do much updating prior to listing their home for sale. If you’re shopping for an older home, expect to do some cosmetic work. Homes that need updating are typically priced below homes that are up to the minute and move-in ready when comparing similar homes in the same area. This could be to your financial advantage. Try to look beyond outdated fixtures and focus instead on the layout, location and potential. Ignore the seller’s tastes and imagine each room clean and clear of clutter and with your own things in them.
EARNEST MONEY DEPOSIT
CONTINGENCY
These funds are a part of the offer and need to be in the escrow holder’s account within 3 business days after the offer is accepted. These funds are a part of the down payment.
A contingency is a clause in a contract that sets the conditions under which the contract can be voided and the deposit returned to the buyer. Contingencies are negotiable. If you believe you need more or less time for a particular contingency, you can write that into your offer.
DISCLOSURE Most states require sellers to complete a form that tells buyers what they know about their property. California sellers must disclose anything that affects the ‘value and desirability’ of the property.
TITLE An Owner’s Policy fully protects the buyer should a covered title problem arise with the title. The Owner’s Policy protects you for as long as you or your heirs have an interest in the property.
LOAN POLICY Most lenders require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan and it only protects the lender’s interests in the property should a problem with the title arise.
ESCROW Escrow is handled by a title company or an escrow company. The escrow company will pay off all the liens on the property after settlement and will record the transaction at the local county recorder’s office.
GOOD-FAITH ESTIMATE The good-faith estimate has a twofold purpose. It gives buyers a snapshot of their estimated costs for closing services, the down payment and prepaid items like homeowner’s association dues, homeowner’s insurance and property taxes. In addition, buyers can use the estimate to hold their lenders to the amount promised in certain categories of costs.
Next Steps: Making an Offer THE ABILITY TO MOVE QUICKLY WILL BE YOUR BIGGEST ADVANTAGE. Once you have found the property you want, we will write a purchase agreement. While much of the offer is standard, there are a few areas we can negotiate:
PRICE What you offer on a property depends on a number of factors, including its condition, length of time on the market, buyer activity and the urgency of the seller.
DUE DILIGENCE PERIOD Conducting your inspections expeditiously shows seriousness and increases your odds of acceptance.
MOVE IN DATE If you can be flexible on the possession date, the seller will be more apt to accept your offer over others
OFFER DETAILS: INCLUSIONS EXCLUSIONS Often the seller plans on leaving major appliances in the home; however, which items stay or go is often a matter of negotiation. Typically you will not be present at the offer presentation. We will present it to the listing agent and/ or seller. The seller will then do one of the following: Accept the offer | Reject the offer | Counter the offer By far the most common of these is the counteroffer. If a counteroffer is presented, you and I will work together to review each specific area of it, making sure that we move forward with your goals in mind and ensuring that we negotiate the best possible price and terms on your behalf.
Explore neighborhoods and communities Get financials in order Get pre-qualified Browse for homes
US
YOU
Roles in the Buying Process Search for homes Private property tours Fine-tune our search based on changed goals Discover new neighborhoods
Attend open houses Communicate feedback Timely signing of documents Ask me questions Home searching Send me properties Sign the Buyer Broker Agreement Home credit responsibilities Ask questions!
Review inspections and due diligence Collaborate
ME
Provide community knowledge Network with peers Listen to you, advocate for you and protect your interests Touch base with lender Search for exclusives, coming soons, and premarket properties Answer your questions Present curated property selections Personal home tours Virtual tours and walk throughs Close communication with listing agent Provide value via brand and expertise Strategically construct your offer based on the current landscape to win the deal!
Get a
Home Inspection A home inspection is designed to give buyers a better understanding of the systems and overall condition of the home they’re buying – otherwise, you’d have to rely on your own knowledge and experience. A home inspection should point out questionable conditions and/or potential safety-related concerns in the home you want to buy.
What Does the Home Inspection Cover? • Exterior, porch and deck • Foundation and walls • Chimneys and roofs • Windows, doors and attics • Electrical components and plumbing • Central heating and air conditioning • Basement/crawlspaces and garage
Be Present for the Home Inspection. Walk through the home with the inspector so they can point out conditions to you that will go into the written report you will receive. Make your own notes so you can discuss the findings with your real estate agent.
Hire a Licensed Home Inspector. Make sure your home inspector is an expert and is a member of a professional organization. Ask for credentials. Once the inspector gives you the written report, you can make informed decisions about what needs repair, and whether you feel comfortable moving forward with the purchase.
About
Carly Dorendorf
“
As a native San Diegan I cannot imagine a better place to call HOME. Having a home to love and enjoy is truly priceless. I feel that HOME is the place you get to be the truest version of yourself. It’s a safe place and a representation of your lifestyle. I also believe in the value of owning real estate. It is historically one of the safest and most profitable investments you can make. Helping people on their real estate journey has been my greatest honor. I look forward to helping you find HOME.
”
“
Carly is an amazing real estate agent! She is knowledgeable, kind, and trustworthy. We were not the easiest clients to deal with, as we had a very long list of wants for our new home, and Carly was incredibly patient with us. She never once made us feel like the hassle we know we were. She truly went above and beyond for us and helped us to find the absolute perfect home for us! We trusted her every step of the way and were so impressed by her knowledge and expertise. We could not be more pleased with the home she helped us find and we are so grateful to have had such an incredible real estate agent working for us.
”
Rapoza Family Bought a Home in Ramona 2019
Frequently Asked
Questions
HOW MUCH MONEY DO I NEED TO BUY A HOME? Depending on the type of mortgage loan, you need between 3.5%-20% down. Additionally, you will need money left over as “reserves.”
HOW LONG WILL IT TAKE TO FIND A HOME? It can take up to several months to find the right home. Market conditions, inventory, price point and requirements will all be factors.
WHAT ARE CLOSING COSTS? In addition to a down payment, you will need funds for closing costs. Closing costs include, but are not limited to, escrow fees, lender fees, funding an impound account and other transactional fees. Your mortgage lender can help give a better estimation of these costs.
© 2022 Pacific Sotheby’s International Realty DRE# 01767484. All rights reserved. The information set forth on this site is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. Pacific Sotheby’s International Realty fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each franchise is independently owned and operated. Sotheby’s International Realty® and the Sotheby’s International Realty Logo are service marks licensed to Sotheby’s International Realty Affiliates LLC and used with its consent.