Buyer Handbook A Step-By-Step Guide To The Home Buying Process
WELCOME TO DICKENS MITCHENER When you choose Dickens Mitchener, you are laying the groundwork of a strong foundation by putting your trust in the most talented, experienced, and technologically astute REALTORS® in the Charlotte region. You deserve only the best and when it comes to your experience at Dickens Mitchener, that is exactly what we deliver - 100% of the time. We are known to have set the highest standards for extraordinary customer service as well as always providing our clients with personable expertise. We've spent 30 years perfecting our customized and effective business method to grow relationships in our community that last a lifetime; all while being your best source for residential real estate.
We have two full-service offices located in Eastover and south Charlotte. We proudly opened our second office in South Charlotte in July 2016 to better serve our trusted clients and to meet increased demand in the growing Charlotte region. Between both offices, we are able to span the region and conveniently provide our clients with the unmatchable responsiveness, diligence, and expertise we are known for delivering throughout the many great neighborhoods in our area.
Today, our Dickens Mitchener team is comprised of more than 110+ experienced real estate professionals who have mastered the latest trends of the ever-changing market and are dedicated to making every transaction as seamless as possible. Our agents are full-time experts who set the regions standard for innovative practices, client satisfaction, and outstanding results. We are true neighborhood specialists who have extensive knowledge of the regions most outstanding properties in Charlotte’s most sought-after neighborhoods. When you choose our team, you get access to more than 10,000 resale listings through Canopy Multiple Listing Service as well as an up-to-the-minute database of new listings, home developments, and homes for sale by owner.
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2020 COMPANY STATISTICS DICKENS MITCHENER AT A GLANCE
$780,942,883
$644,391 2020 AVER AGE SALES PRICE
2020 SALES VOLUME
$7,099,480 AGENT PRODUCTIVITY
1,230 2020 TOTAL NUMBER OF
11 UNITS PER AGENTS
TRANSACTIONS
110 I 106
$5M+
$10M+
PRODUCING AGENTS vs. NUMBER OF AGENTS
30 AGENTS
9 AGENTS
$15M+
$20M+
$30M+
4 AGENTS
6 AGENTS
3 AGENTS
Competitor data pulled from the Carolina Multiple Listing Service for Single Family Homes from 1/1/2020 – 12/31/2020
Your Best Source For Residential Real Estate. BONNIE STROUP REALTOR®/BROKER 704.458.2558 bstroup@dickensmitchener.com
ABOUT ME: • Having grown up in Charlotte, NC, Bonnie provides her buyers and sellers with a lifetime of community knowledge. • After graduating from Charlotte Country Day School, she earned degrees in Business Economics and Art History from Wofford College. • She then moved back to the Queen City to pursue a career in direct sales and sales management for a collegiate apparel company. • Six years later, she became a licensed REALTOR®/Broker. • Bonnie grew up in the Eastover neighborhood and now lives in the heart of Myers Park.Her vision was to create a forward-thinking, innovative, and strategic real estate firm based on the latest technologies and shared information. The goal was to simplify the entire process of real estate for both the agents and more importantly for the clients.
FUN FACTS: • Charlotte Observer Rising Star 2018Women in Business Award from the Charlotte Business Journal in 1998 • Active member of The Junior League of Charlotte • Member at Myers Park Presbyterian Church
MILESTONES & MEMBERSHIPS:
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Canopy Multiple Listing Services Canopy REALTOR® Association National Association of REALTORS® North Carolina Association of REALTORS® South Carolina Association of REALTORS® Top Producer 2019 Ambassador's Circle
WHAT YOUR DM BUYERS AGENT CAN DO FOR YOU •
Encourage you to proceed with deliberation and guide you in a thorough study of the home market. When you are ready, you will be well-prepared to act quickly when a home meeting your criteria is identified.
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Offer informed opinions with regard to local market conditions and potential appreciation of properties and areas.
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Give you access to our firm exclusive listings publication; which is a compilation of homes on the market that are exclusively available to clients of Dickens Mitchener.
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Search diligently through all available sources and keep you informed of progress.
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Draw up offer to purchase with your interests in mind, submit offer to listing broker or seller in a timely manner, and keep you up-to-date on progress of negotiations.
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Caution that possession may not be available immediately after closing and that you may need to plan accordingly.
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Clarify the role and activities of attorneys, lender, inspectors, etc.
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Recommend the names of closing attorneys specializing in residential real estate.
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Recommend hazard insurance carriers.
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Recommend lenders.
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When you have found a home you wish to purchase, obtain information about the property including the following where applicable and available:
- Seller's property disclosure
- Verification of square footage for accuracy
- Existing homeowner's warranty
- Flood plain, easements and encroachments
- Property assessment
- Check for future street expansion
- Subdivision/zoning restrictions
- Verify neighborhood fees/assessments
- Well/septic location
- Check real property taxes and assessments
- Underground storage tank
- Verification of lot size through previous survey
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Recommend professional inspectors to cover:
- Structural condition (including, roof line)
- Well and city water potability
- HVAC system
- Septic system
- Electrical system
- Radon
- Plumbing system
- Appliances
- Pool system and liner
- Termites and excessive moisture
- Well capacity - Lead-based paint, asbestos, formaldehyde insulation •
Obtain information of factual data provided by school system.
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Obtain information from authorities on crime in the neighborhood.
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Make and schedule appointments for you to see potential homes in a timely and efficient manner. Your Best Source for Residential Real Estate. Discover more at dickensmitchener.com
THE HOME BUYING PROCESS THE BUYER'S ADVANTAGE As the home buyer, your agent’s commission is paid by the seller of the home in almost all circumstances. This means your representation costs you nothing! CLOSING
PREPARING FOR CLOSING
You will be finalizing your loan, reviewing documents and securing your homeowners insurance policy.
The transfer of funds and ownership. An attorney typically acts as an independent third party to facilitate the closing.
DUE DILIGENCE
You will hire an attorney and inspector. You will order a survey and appraisal.
MEET WITH A REAL ESTATE BROKER
Discuss the type of home you’re looking for, including style, price and location.
GET PRE-APPROVED UNDER CONTRACT
You and the seller have agreed to the price and terms.
congratulations!
You will need pay stubs, W2s and bank statements. Knowing what you can afford is critical to a successful home buying experience.
YOU ARE A NEW HOME OWNER NEGOTIATION AND CONTRACT Your agent will offer advice on best strategies and negotiate.
DEPOSITS Within 5 days of going under contract, you will need to give your agent 2 checks: The Due Diligence fee and the Earnest Money Deposit.
SEARCH FOR HOMES
MAKE AN OFFER
The fun part! Your agent will schedule showings and help you find the perfect home.
Your agent will prepare the offer based on the price and terms you choose.
ADVANCED SEARCH Not all real estate websites are the same. Your real estate professional has tools and systems to ensure you see every available home that meets your criteria.
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DUE DILIGENCE TIMELINE
DUE DILIGENCE PERIOD
CONTRACT DATE
This is your opportunity to conduct inspections, perform surveys, and work with your lender to arrange financing (if applicable).
BUYER'S RIGHT TO TERMINATE
You may terminate your contract during this period for any reason or no reason. If you terminate, you forfeit your due diligence fee only. If you continue to closing, your due diligence fee is credited towards your purchase price.
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AFTER DDP ENDS
DUE DILIGENCE PERIOD end date
After your DDP ends, you may have several days or weeks before closing (depending on the terms of your contract).
TERMINATION AFTER DDP ends
Should you terminate your contract after your due diligence period ends, you will forfeit both your due diligence fee AND your earnest money deposit.
CLOSING DATE
UNDER CONTRACT GUIDE IN ORDER TO PROVIDE YOU WITH THE VERY BEST SERVICE, THE FOLLOWING IS A GUIDE TO LET YOU KNOW WHAT TO EXPECT AS WE MOVE TOWARD CLOSING.
1. Once the contract has been signed and delivered to you: • You should immediately proceed with your loan process and inform me of the lender you have chosen. 2. During the Due Diligence Period we need to: • Hire an attorney immediately. • Perform inspections. • Negotiate repairs with seller. • Have an attorney perform title work and order a survey. • Make sure your loan is clear to close (have them order appraisal at the beginning). • Review any restrictive covenants and bylaws if applicable. • Research flood zone. • Confirm with attorney that we have no zoning issues or easement issues. • Remember, if the deal does not go through after the due diligence period, you will lose your earnest money. 3. 2-3 weeks before closing, we will need to: • Arrange all of your utilities to be connected or transferred into your name on the day of closing (see Convenience List). • You should obtain homeowner's insurance. • Determine if you prefer re-inspections or a walk-through and we can schedule those. • Schedule final walk-through on the day before closing. • Confirm day and time keys will be released to you. 4. Day of closing or day before closing, we will: • Perform a final walk-through of your new home. • Receive and review your closing statement (See Closing Disclosure). • You need to obtain your certified funds for the closing. • All buyers must bring driver's licenses. 5. After closing: Typically you can move right in, but legally you do not own the home until all of the documents have been recorded. Please discuss any moving scheduling with your agent before you make any appointments or arrangements. Every seller and transaction is different, to avoid any stressful situations we need to set moving times in advance.
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APPLYING FOR A LOAN LENDERS REQUIRE THAT YOU COMPLETE SEVERAL FORMS FOR YOUR HOME LOAN APPLICATION. SOME OF THE FORMS NEED TO BE ENTIRELY FILLED OUT, SIGNED AND DATED. OTHERS ONLY NEED TO BE SIGNED AND DATED IN CERTAIN SECTIONS. BELOW IS A LIST OF ITEMS THAT YOUR LENDER WILL/MAY NEED FROM YOU.
W2's/1099 for the past two years (copies)
Last two years' federal tax returns (if self-employeed) (signed copy)
Bank statements for the last two months Pay stubs for last 30 days
Year-to-date profit and loss statement and balance sheet (if self-employed) (signed copies)
Purchase contract (signed copy)
Divorce decree (if applicable) (copy)
Gift letter (If you are having someone help you with the down payment) (copy)
Complete bankruptcy documents (if you have declared bankruptcy in the last ten years) (copies)
Address history for the past two years
Photo I.D.
List of all real estate interests
Employment history for the past two years
How to complete each form: • Complete & sign the Residential Loan Application. This application, called the 1003, gives your lender most of the information they need to get started. • Read & sign the Borrower's Certification and Authorization. This gives your lender permission to receive information about you. They will be able to check your credit, verify your bank or credit union information and current mortgage information (if applicable). • Read & sign the Equal Credit Opportunity Act Notice (ECOA). Signing this form protects you from any discrimination. • Complete & sign the IRS Tax Information Authorization Form. This is only required if your lender asks for full tax returns or if you are self employed.
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BUYING COSTS & FEES BELOW IS A LIST OF TYPICAL BUYING COSTS AND DEFINITIONS. SOME CHARGES MAY NOT APPLY TO YOUR SITUATION. Loan Origination Fee: Usually 1% of the loan amount, charged by the lender for processing the loan documents and the closing documents. Discount Points: If desired to reduce the interest rate, one point is 1% of the loan amount. They are charged by the lender as a yield on a certain interest rate. Credit Report: $15-$75, obtained through a credit reporting agency to ascertain the buyer's debts, payment habits, etc. Appraisal Fee: $400-$800 (homes over $1M- at least $750), varies by loan type and size of property. Charged by the appraiser for an estimate of the value on the home. Termite Letter: Usually $85-$120, required by the lender to be certain the home is free from wood destroying insects and pests. General Home Inspections: $450+, professional evaluation of the condition of the home. Mechanical Inspection: $100-$200 per contractor. If required, checks the operational systems of the house. Structural Inspection: $500+. Does not include roof. If required, checks nonmoving structural aspects of the house. Attorney Fee: $800+. Charged by the closing attorney for checking the title property and closing. Survey: $450 and up. Required by lender to show lot dimensions, easements encroachments, etc. $90+ extra if buyer wishes stakes to be placed in the ground. Recording Fees (Deeds): $25 and up. Charged to record the legal documents that transfer title on the property. Title Insurance: $2/$1000 of sales price. Protects buyer from loss sustained by back taxes, liens or encumbrances. Private Mortgage Insurance: Fees differ depending on percentage of down payment. Required to offset foreclosures on loans with less than 20% down. Homeowners Insurance: Usually 14 months required in escrow. Required to offset foreclosures on loans with less than 20% down payment. Real Property Taxes: Pro-rated at closing. Prepaid Interest: Interest is charged at closing for the day of closing plus any days left in the month of closing. Your Best Source for Residential Real Estate. Discover more at dickensmitchener.com
HOMEBUYER'S GLOSSARY Appraisal: A written analysis of the estimated value of a property prepared by a qualified appraiser. Buyer Agent: Agent who acts solely on the buyer's behalf. The agent has full fudiciary responsibilities, which includes reasonable care, individual loyalty, confidentiality and full disclosure. This means the agent places the buyer's interest above all else. Closing: A meeting at which a sale of a property is finalized by the buyer signing the mortgage documents pay ing closing cost and transfer of the deed to the property. Closing Disclosure: A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made and all cash paid out in the transaction. Competitive Market Analysis (CMA): A comparison of the prices of recently sold homes that are similar to a listing seller's home in terms of location, style and amenities. Contingency: A provision in a contract that requires a certain act to be done or a certain event to occur before the contract becomes binding. Counteroffer: A new offer made in response to an offer received. It has the effect of rejecting the original offer, which cannot be accepted thereafter unless revived by the offeror. Deed: A document which, when properly executed, conveys title of real property. Deed of trust: An instrument used to create a mortgage lien by which the borrower conveys title to a trustee, who hold it as security for the benefit of the note holder (the lender). Disclosure: To make known or public. By law, a seller of real property must disclose facts that affect the value or desirability of the property. Unless exempt, the seller completes and signs specific disclosure forms, including the Residential Property Disclosure Statement, to disclose those material facts. Due Diligence: The due diligence period in a home purchase contract is the time during which the buyer con ducts any and all inspections of the home that she/he chooses. Due Diligence Fee: This is a process in which a buyer will give a non-refundable fee directly to the seller in order to have time to inspect, appraise and do their II due diligence II in determining if they will close on the home. Earnest Money Deposit: A deposit made by the potential homebuyer to show that he/she is serious about buying the house. Fixture: An item of personal property that has been converted to real property by being permanently affixed. Foreclosure: The legal process by which a mortgage lender (mortgagee) or other lien holder obtains a termination of a mortgage borrower (mortgagor)'s equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure). Home Inspection: A thorough inspection that evaluates the structural and mechanical condition of a property.
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HOMEBUYER'S GLOSSARY Home Owners Association (HOA): An organized group of homeowners whose members help to regulate and enforce the rules and standards of their respective communities. HVAC: An acronym for heating, ventilation and air-conditioning. Loan-to-Value Ratio: The relationship between the amount of the mortgage loan and the value of the real es tate being pledged as collateral. Listing Agent: The person(s) who represents the seller in the real estate transaction. Market Value: The most probable price property will bring in a arm's length transaction under normal conditions on the open market. Multiple Listing Service (MLS): A marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of producing ready, willing and able buyers for their properties more quickly than they could on their own. Radon: A naturally occurring inert and radioactive gas formed by the decaying chair of uranium in the earth. It is an odorless, colorless gas and hence, undetectable to the human sense. The particular hazardous chemical can only be detected by correct testing by a professional. Realtor: a person who acts as an agent for the sale and purchase of buildings and land; a real estate agent. Recording: The act of entering or recording documents affecting or conveying interest in real estate in the recorder's office established in each county. Until it is recorded, a deed or mortgage ordinarily is not effective against subsequent purchasers or mortgages. Short Sale: A sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the lien's full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Survey: A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachment and other physical features. Time is of the essence: A phrase in a contract that requires the performance of a certain act within a stated period of time. Title Insurance: A policy insuring the owner or mortgagee against loss by reason of defects in the title to a parcel real estate, other than encumbrances, defects and matters specifically excluded by the policy.
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U PD ATER & R ELO CATION DM IS ELIMINATING YOUR MOVING HEADACHES
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Quickly and easily set up digital services and schedule in-home installations.
Forward mail in one click with a customized, pre-filled USPS form.
Updater makes it easy for transferees to change utilities from their old location to their new home. With a click of a button, it's done! This is just one more way that Dickens Mitchener strives to make your relocation as smooth as possible. No one else in the area is using this technology. We are committed to providing all of the clients with the most up to date technology to make moving easy.
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CONVENIENCE LIST
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LOCAL RESOURCES
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Dickens-Mitchener & Associates, 2330 Randolph Rd Charlotte, NC 28207 Sarah Szczodrowski
704-877-3350
704.342.1022
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STATE OF NORTH CAROLINA MINERAL AND OIL AND GAS RIGHTS MANDATORY DISCLOSURE STATEMENT
Dickens Mitchener & Assoc. Inc, 2330 Randolph Road Charlotte, NC 28207 Dickens Mitchener
7043421000
Dickens-Mitchener & Associates, 2330 Randolph Rd Charlotte, NC 28207 Sarah Szczodrowski
704-877-3350
704.342.1022
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