Home Buyer's Guide - Raul Ruiz

San Antonio • Boerne • Austin

4 Dominion Drive, Bldg 2 • San Antonio, Texas 78257

WHY A BUYER’S AGENT Some people wonder if they should use a real estate agent in the process of buying a new home. Since the listing agent represents the home seller it is in your best interest to find a professional and knowledgeable buyer’s agent who will represent you in the transaction and work to get you the best deal possible.

The agent at an open house or the one you speak to when you see a listing you like is the seller’s agent. Seller’s agents are legally obligated to represent the seller’s best interests.

This includes the right to share any information you (the buyer) give them to the seller. For example, if you tell the seller’s agent that you are pre-qualified for mortgage of $250,000, they can give the seller this information. Also, they are not allowed to disclose information to you that could hinder the seller’s negotiating position. Your buyer’s agent would be able to share with you any information they discover about the seller’s situation.

Your buyer’s agent will help guide you through the home buying process in every way. They will handle all the paperwork involved and that can save you a lot of time.

In addition, buyer’s agents are very knowledgeable about different neighborhoods and markets. They will be able to help you find exactly what you are looking for without you having to do a ton of your own research.

When it comes time for you to make an offer on a home your buyer’s agent will offer advice and help you negotiate a fair price. They will also help you with the closing process and make sure everything is taken care of up until the point that you receive the keys to your new home!

WHY KUPER SOTHEBY’S INTERNATIONAL REALTY It is our mission to be the leader of Luxury Real Estate in Texas by providing service that exceeds expectations, deliver knowledge that surpasses the competition, and present progressive marketing and innovative technology that outperforms the industry demand. Our goals and our people have always been focused on enhancing the quality of life in this, the vibrant heart of Texas. With a deep sense of integrity and a comprehensive knowledge of real estate, we offer each of our clients and customers our total commitment to service.

Kuper Sotheby’s International Realty was formed in 1972 under the strong leadership of Charles Kuper, Jr. and his family. A new strategic partnership was formed in 2012 when Kuper Sotheby’s International Realty merged our San Antonio brokerage with Capital City Sotheby’s International Realty, the local Austin affiliate owned by Doug & Mary Land and Jonathan Creath. In 2014, Kuper Sotheby’s International Realty and Capital City Sotheby’s International Realty merged with Amelia Bullock Realtors in Austin. Founded in 1969

by Amelia Bullock and Barbara Wallace, the company has a strong history of providing service with quality, value and integrity to everyone. Together, the three brokerages have unified ourselves under the Kuper Sotheby’s International Realty brand. This, combined with our relationship with the premier Sotheby’s International Realty brand, affirms our commitment toward providing you a superior level of service, marketing and expertise in San Antonio, Austin, and around the world.

We believe your home is unique and that marketing you home takes an exclusive set of skills. Our agents are the best, world wide and our exclusive global abd local marketing partnerships are designed to create maximum exposure for your home. Kuper Sotheby’s International Realty utilizes all of the resources available to our firm to present your home in an extraordinary and targeted manner. Allow us to share our process of uniting extraordinary lives with extraordinary homes with you.

Raul Ruiz

• 210.387.1038 • www.RuizLuxury.com • raul.ruiz@sothebysrealty.com

A native of San Antonio and expert negotiator, Raul Ruiz is a Realtor with an unmatched drive for success and client satisfaction. In this thriving city with international allure, bilingual Ruiz has delivered a welcoming experience to an extensive range of clients including corporate executive relocations, finding Mexican Nationals a home in Texas and area natives ready to fulfill a dream.

Consistently placed on the Multi-Million Dollar Producer and Top 500 Realtor lists, Ruiz is an agent with the knowledge and drive to become a leader in his industry, representing all areas of San Antonio and its surrounding communities.

His degree in international business and his extensive travels worldwide have added to his expertise in working with a diverse clientele. He is a keen businessman and stays involved in every aspect of his work, developing sales and marketing strategies and staying connected from start to finish in every transaction. Client satisfaction is Ruiz’s top priority and his reputation as a trustworthy and honest agent has gained Ruiz a steady flow of referrals and repeat business.

The dedication Ruiz has for his career is accentuated by his love for his family and community. Ruiz is a member of the Hispanic Chamber of Commerce and the ACTS Community. Together with his wife, Ruiz stays locally connected as they support the local chapters of St. Jude and the Red Cross, as well as the San Antonio Symphony and Orchestra. An avid outdoorsman, Ruiz sees this as a benefit in both business and pleasure as he explores many of the communities he represents thus adding to the expert guidance he brings to every transaction.

Experience, honesty and pure dedication: All qualities you can expect with Raul Ruiz as your agent of choice.

210.387.1038

raul.ruiz@sothebysrealty.com www.RuizLuxury.com

4 Dominion Drive, Bldg 2 • San Antonio, Texas 78257

OBTAIN PRE-APPROVAL It is important to gain pre-approval for a home loan before you even start looking at properties. The lender will carefully review your financial situation, including your credit, income, assets and other information. You will be provided with a preapproval letter stating your borrowing power, or how much home you can afford.

The pre-approval process helps you set a definite and realistic price range for your home search and also proves to sellers that you will be able to follow through with the purchase.

If there are several bids on a home the seller is most likely to choose the one that is not only the best price but also has a buyer with strong financial status attached to it. They would not want to select an offer that may fall through.

NOTE: You are not required to use the lender where you get the pre-approval letter and can still shop around for the best interest rates.

THE HOME SEARCH It should be a fun process searching for your new home. There are several websites online where you can view homes that are available. Also, create a list of features you are looking for in a home and give it to your buyer’s agent. This could include number of beds/baths, square footage, location, pool, etc.

Raul Ruiz

Your agent will have access to the Multiple Listing Service (MLS) and will be able to send you all the homes that fall under your search criteria. They will also have knowledge of quiet listings that are not advertised on MLS or other websites. It is important to look at several homes to get an idea of what you can get for your set budget.

SUBMIT AN OFFER Work with your agent to come up with an offer that reflects the condition of the property and is a fair market price. Your agent will be able to research the comparable homes and help you come up with a smart offer. They may even suggest to put in an offer at full price if the home is priced well and competition is anticipated.

NEGOTIATION & ACCEPTANCE After you submit your offer the seller will have the option to accept, counter or invite to resubmit. This process can be stressful if there are a lot of counter offers back and forth, but trust that your agent will be there to help you every step of the way. Usually with time and patience an agreement on the purchase price and other terms will be made.

Once an offer is accepted you will pay earnest money that will be put into an escrow account. This is a good faith deposit towards the purchase of the home and shows that you intend to follow through with the transaction.

• 210.387.1038 • www.RuizLuxury.com • raul.ruiz@sothebysrealty.com

SECURE A LOAN Now it is time to secure your loan. Go back to the lender who gave you your pre-approval or shop interest rates and go with the best lender that you find.

It will take several weeks for the lender to review your mortgage application and you will be asked for several documents pertaining to your income, debts, credit status and assets. During this process the property will be appraised to determine if they can issue the loan.

NOTE:There will be a set date in the contract for when you need to have your loan secured. If it takes longer just have your agent notify the seller so you can receive a time extension.

PROPERTY INSPECTION When an offer has been accepted you will want to get a home inspection. It is a good idea to personally be at the inspection so you can see first hand what problems the home may have.

The inspector will look at the outside and inside of the home including the roof, siding, windows, plumbing, electrical, HVAC systems, etc. Based on the inspection you can decide to withdraw your offer or ask the seller to help pay for any surprise repairs that are needed. Your agent can give you advice on how to address the repairs.

WALK THROUGH Before you close on the property you will perform a final walk through. You will make sure the home is in the same condition as when you first viewed it, and that there hasn’t been any catastrophic damage and that all the owner’s personal property has been removed.

CLOSING You or your agent will be in touch with the title company and they will let you know exactly what funds and documents to bring to the closing. A HUD sheet (the settlement sheet which includes a list of buyer and seller costs) will be issued to you

4 Dominion Drive, Bldg 2 • San Antonio, Texas 78257

so you can see exactly how much money you need to bring, usually as a certified or cashier’s check.

The closing will most likely take place at the title company’s office. Your attorney and/or agent should be there to answer any of your questions. The closing consists of signing and reviewing a lot of paperwork. Once funding takes place and the deed has been registered you are free to move in to your new place. Congratulations!

EARNEST MONEY You will pay earnest money or a good-faith deposit toward the purchase of the property at the time of acceptance of the contract. The amount is usually $500 to $1000 on homes less that $100,000 and 1% of the price on homes above that. This payment will go towards the purchase of the property at closing.

INSPECTION Although an inspection is optional it is highly recommended that you have one performed on the property. The inspector will check major systems in the home as well as the structure and let you know what problems the house has, if any. You can also get additional inspections including pests, etc. The cost starts at about $300 and goes up depending on the home size.

APPRAISAL Your lender will require an appraisal and it will likely be your responsibility to cover the cost. The home must appraise for at least the amount you are offering to pay for it. If the property appraises for less, you will have to come up with more money down or renegotiate the contract because the lender will usually only loan up to 80% or 90% of the home value. The appraisal cost averages about $400.

REAL ESTATE ATTORNEY If you have any question regarding your purchase contract it is advised for you to hire a real estate attorney to review the contract before you close on the property. They can also represent you at the closing.

The costs for an attorney range from $500-$1,500. Before you hire them ask whether they charge a flat fee or perhour. If it’s per-hour then make sure to get an estimate of the final cost, and be sure to receive a full accounting on your bill.

Raul Ruiz

CLOSING COSTS Closing costs are all the fees you will need to pay in order for the transaction to process and for you to take possession of your new home. These will be paid at closing. The buyer is usually responsible for: Loan Fees & Down Payment: You will pay any fees associated with the type of home mortgage you will be getting and the down payment (usually 3.5% to 20% of the purchase price).

Escrow Account for Property Insurance & Property Taxes: With a loan, you will most likely need to pay to set up an escrow account. Think of this as a mini savings account that the mortgage company is going to use to pay your property taxes and home owners insurance at the end of the year. You will set it up with 14 days worth of interest for the loan, 2 to 3 months of property taxes, and 14 months of home owner’s insurance.

HOA Transfer Fee: If the property has an HOA association there is a fee to transfer the membership over to you, the new owner. This can be paid by the seller also.

You can negotiate for the seller to pay some of these costs for you. An amount is agreed upon and this amount will appear as a credit on the HUD (the settlement sheet which includes a list of buyer and seller costs).

• 210.387.1038 • www.RuizLuxury.com • raul.ruiz@sothebysrealty.com

ASK THE PROS Nobody knows more about a neighborhood than the current residents! The San Antonio forum at City-Data. com is frequented by many local “experts” ready to answer your questions. Because online forums can be anonymous you are sure to get an honest answer about any inquiry you have.

A LIFESTYLE FIT Check out the local amenities in the neighborhood you are interested in and see if it works out with your day to day routine.

Are there restaurants, stores and other services that you enjoy close by? If you use public transit check to see if there are bus stops within close range. Do you commute to work? Is the neighborhood near a freeway so you can get on the road in a reasonable amount of time? Do you like to take walks or jog close to home? Is this a good area for those activities?

Take the time to analyze the area and imagine yourself living there. If you can easily envision yourself enjoying being a resident of the neighborhood then it will most likely be a good fit!

THE SAFE FACTOR There are several resources online you can check for neighborhood crime statistics such as SpotCrime.com or CrimeReports.com You can also call or stop by the local police department and request the crime statistics. Crime reports are public record and should be made available to you upon request.

regarding pets. If any of these rules are deal breakers for you then you will definitely need to continue your home search!

VISIT OFTEN It is easy to fall in love with an area that you have only visited once and at a certain time of day. Try to visit the neighborhood multiple times and at different times of the day. Many issues can present themselves at night that might not be obvious during the day or vice versa.

It also doesn’t hurt to study the neighbor’s homes. If you do buy this home, then you will be living next to these people for the next several years. If they have barking dogs that are consistently barking every time you visit and this really bothers you then you might want to reconsider. If the neighbor’s yard is filled with junk and this annoys you, then imagine how you might feel dealing with it on a daily basis.

These are small details that can be discovered on frequent visits.

DON’T DRIVE, WALK Walk through the streets near the home and see how it feels. You will notice more things walking than just driving by. Do you feel comfortable in the area?

If you see some neighbors out and about you might ask them for their opinion of the neighborhood. You’d be surprised how candid people will be and this could really help you make your decision about the home and neighborhood that goes along with it!

THE RULES If the home is part of a Home Owner’s Association (HOA) you will want to get a copy of the bylaws and study those carefully. Many HOAs have rules you would never even think of.

For example, the HOA might regulate the type of plants you can have in your yard, type of fencing you can put up, whether or not you can posts signs and specific rules

4 Dominion Drive, Bldg 2 • San Antonio, Texas 78257

Tax Certification Fee: The fee to be issued a tax certificate which shows current year’s taxes, the last year the taxes were paid and any delinquencies that need to be collected.

Wire Fee: The cost of distributing funds.

HOA Resale Certificate: The fee required to produce the HOA document showing restrictions, covenants and statement of accounts.

Home Warranty: Repair coverage on the home for usually one year. Read the policy carefully to make sure you understand what it covers.

A Portion of Buyer’s Costs: The buyer may ask the seller to help pay for some of their closing costs. Being open to this might just close the sale.

One of the most confusing parts of the home buying and selling process is understanding the closing costs. There are several fees involved in a real estate transaction beyond just the price of the actual property. Even if you have the full purchase amount in cash, there are still fees to be paid. This section will give you a more detailed idea on how closing costs are actually broken down and what each one means.

SELLER’S COSTS In Texas, it is customary for the seller to pay for the following costs: Owner’s Title Policy: This type of insurance protects the buyer if any disputes arise on the title of the property.

Broker Fees: The fee paid to the listing broker for their services.

This amount is usually taken out of the sales price and is split between the listing broker and the buyer’s broker or subagent.

Escrow Fees: This is what the title company charges to handle the transaction.

BUYER’S COSTS In Texas, it is customary for the buyer to pay for the following costs: Loan Fees: These are lender fees and might include an application fee, origination fee, points, etc.

Down Payment: The amount you need to pay up front as part of your mortgage. Usually 3% to 20% of the sales price.

Escrow Account Set-Up: The cost to set up an escrow account where your property insurance and pre paid taxes will be kept.

Property Insurance: Home owner’s insurance that can be rolled into your loan and paid from an escrow account.

Attorney Fees from the Title Company: The cost for an attorney to prepare and review the documents.

Prorated Property Taxes: If the seller has already paid this year’s property taxes then you must reimburse them for the part of the year you will be owner of the property.

Courier & Express Mail Fees: This would be the costs for documents to be sent to specified locations.

HOA Transfer Fee: The fee to transfer the HOA into the new owner’s name and to provide them with printed copies.

Property Taxes: Property taxes for the time the seller is in the home.

Recording Fees: The cost to file the documents with the county.

Survey Fee: The cost of getting a new survey done if needed.

Raul Ruiz

In a real estate transaction many items and fees can be paid by either party if they both agree to it. This is just a list of what is normally covered by the buyer and seller. Your agent will be able to advise you on the possible negotiation of having certain fees paid for by the other party.

• 210.387.1038 • www.RuizLuxury.com • raul.ruiz@sothebysrealty.com

A complete home inspection is one of the most important steps in the home buying process.

The home buying experience is an emotional one and it is hard to imagine any problems with the dream home you have just decided to purchase. That is why it is crucial to hire a professional home inspector to give a qualified, unbiased report of the state of the home you might see yourself living in for several years.

You want the home you purchase to be safe and free of any problems that could lead to large repair costs in the near future. It is a great idea to be present for the home inspection so you can talk to the home inspector and ask questions when and if they do find any issues. Their input and advice will be very helpful.

You will be given a full report of all the items covered in the inspection and any problems that need to be addressed. If any problems are found you will need to assess the severity of them and come up with ideas of possible solutions. The complete home inspection can actually become a tool for renegotiations of the home price. If a large issue is found often times you can negotiate for the seller to either fix the problem or lower the price enough so it covers the repair cost.

It is best to try to get the seller to handle the larger repairs as this will save you some headache and allows you to move into your home without having to deal with repairs right away. During the inspection you can ask the home inspector any questions you have.Your agent will be able to help you determine what issues need to be addressed and if it is necessary to renegotiate with the seller.

As long as you hire a professional inspector you can either rest easy about your home purchase or address any problems or issues that come up on the report. It is better to know about all the potential problems of the home before you go to closing.

4 Dominion Drive, Bldg 2 • San Antonio, Texas 78257

WHAT INSPECTIONS COVER • • • • • • • • • • •

Heating and cooling systems Electrical systems Plumbing Walls Windows Ceilings Floors Doors Roof Structural components Foundation

Nothing’s worse than closing the deal on your dream home only to have things go horribly wrong during your move-in.

So we’ve compiled a list of common problems people face during the big move and tips on how to avoid them.

CLOSING DELAY Unexpected delays are all too common in the real estate world. While the deal may be done problems can easily occur in the closing process that can set you back hours or days. It’s best to build in a safety net of a day or two after closing before you schedule your movers. And if you plan to do a little updating to your new home, now is the time to do it before it’s filled to the brim with boxes and furniture.

REMEMBER UTILITIES No one wants to move in without air conditioning, especially here in Texas. Make sure you have called your electric, cable, phone, and internet providers at least one to two weeks before your move-in date to ensure ample time for everything to get set up.

PACKING IT ALL UP Packing up an entire house makes you realize just how much stuff you have. This is the perfect opportunity go through just about everything you own and ask yourself if it’s worth keeping. You’ll feel a huge sense of relief seeing a growing “get rid of” pile and knowing you won’t have to stick all of those things away in drawers and under beds only to be seen at the next move. When it comes to the actual packing process, stock up on newspaper and try asking around at grocery stores, wholesale stores, and electronic stores for extra boxes to avoid having to buy your own. Be sure to label every box, big or small, to make unpacking less of a mystery. And don’t trust those burly movers with that antique vase; for fragile items pack them carefully and transport them yourself.

Raul Ruiz

UNPACKING PAINS The sweet relief you’ll feel after finishing packing will be short-lived once you realize now you have to turn around and unpack. To ease that process, get the room dimensions of your home beforehand so you can have a solid idea of where everything will go. You’ll love that sparkling new house even more if it’s literally sparkling, so be sure and clean it thoroughly before the unpacking gets underway. Also create a moving day emergency kit with extra clothes, personal items, tools, garbage bags, sheets, and anything else you can’t live without for a day or two, because moving is a long process and trying to find the one thing you need in a sea of boxes is always impossible.

COMMUNICATION Chances are you and the seller will both have so many other things going on that the simple exchanging of the garage door opener might not happen. So make sure to communicate with the seller and get any necessary remotes, manuals, and warranties for the various systems in the home.

• 210.387.1038 • www.RuizLuxury.com • raul.ruiz@sothebysrealty.com

NOTES

4 Dominion Drive, Bldg 2 • San Antonio, Texas 78257

Central San Antonio 210.822.8602 | North San Antonio 210.698.3100 Hill Country-Boerne 830.816.5260 | Stone Oak 210.490.1200 Visit KuperRealty.com for Austin Locations This material 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. This offering is subject to errors, omissions and changes including price or withdrawal without notice. ©MMVIII Sotheby’s International Realty Affiliates LLC. All Rights Reserved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates LLC. An Equal Opportunity Company. Equal Housing Opportunity . Each Office is Independently Owned and Operated, 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.We are happy to work with them and cooperate fully. SIR15.

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Raul Ruiz

• 210.387.1038 • www.RuizLuxury.com • raul.ruiz@sothebysrealty.com