Caryn weiss buyers guide by Marketplace Sotheby's International Realty

HOME BUYERS HANDBOOK

WELCOME TO MY COMPANY

ou 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 exceptional 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 brokerage in the Northwest. We respect the business and look forward to creating a great reputation for generations to come.

C B

aryn Weiss is a top tier broker, dedicated to excellence in all she does.

orn and Raised in the Pacific Northwest, Caryn has lived on the Eastside for over 35 years. She has a thorough knowledge of Eastside neighborhoods and can offer expert advice on everything from real estate values to school districts. Caryn’s lifetime of area knowledge is worth its weight in gold.

skilled interior designer with a degree, Caryn offers valuable insight on staging homes for market as well as home renovation and design.

aryn’s success in real estate stems from her personal philosophy that every client is a friend for life. In everything she does, she strives to exceed all expectations, be the ultimate real estate professional, and provide the best possible customer service. She is committed to a standard of quality a step above the rest.

ontact Caryn for help with new construction, condominimums, lake/ beach property, and luxury homes.

CARYN WEISS

Marketplace Sotheby’s International Realty 16261 Redmond Way 150, Redmond, WA 98052 16812 140th Ave NE Woodinville, WA 98072 425.243.9000 | 425.444.5959 Caryn.Weiss@SothebysRealty.com MarketplaceSothebysRealty.com

EXPECTATIONS OF BROKER ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 4

EXPECTATIONS OF BUYER ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 5

IDENTIFYING YOUR PRIORITIES 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

If yes, why didn’t you buy?____________________________________________________________ Are you looking at homes with any other sales associate? Yes

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?___________________________________________

IDENTIFYING YOUR PRIORITIES 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 What style of home do you prefer? Rambler Colonial

Tudor

Gated

Desired Condition? Move-in ready How many stories? One

Victorian

Traditional

Mediterranean Some Work

Two

What Size Garage? One car

Townhouse/ Condo

Three

Two Car

Contemporary

Duplex Contemporary Ranch

Total “fixer-upper” Split Level

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

HOW I HELP

hoosing 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

BUYER FINANCING

etermining 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 REPORT It’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 SCORE You 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 PAYMENT Most 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. PREAPPROVAL A 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

THE BUYING PROCESS 1

Purchase & Sale Agreement

Buyer

Seller’s Agent

Seller

Loan Application

Taxes

Mortgages

Fees/ Commission

Home Inspection

Utilities

Liens

H o m e ow n e r s Dues

Loan Approval

Determine Status

Review & Clear Title

Escrow

Insurance Binder

Closing Statement & Escrow Instructions

Title Insurance

Lender

Title Search

Mortgage Insurance

Issue Commitment

Underwriter

Record Documents

Verification

Examination

Credit Report

Check Taxes and Legal

Buyer’s Bank

Issue Policy

Appraisal

Prepare Legal Documents

Oversee Closing/ Papers Signed

Record & Disburse Funds

Work Orders

Employment

New Owner

Payments 10

THE PROCESS OF OFFERS OFFERS AND COUNTER OFFERS So 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 MONEY Earnest 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). NEGOTIATIONS Now 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

THE ESCROW PROCESS

Client Opens Title Order

Order Preliminary Report from Title Department

Preliminary Report received & reviewed

Address items required by Title Officer per the Preliminary Report

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 Buyers’ & Sellers’ Instructions and all pertinent documents

Escrow Officer to call broker or client from terms

Buyers’ & Sellers’ Instructions & documents executed and returned with funds

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. Escrow Officer to prepare policy writeup and forward documents to the

Request loan funds from the lender

Loan funds received & deposited into Escrow

Record documents, close file, prepare statements and disburse funds

Delivery of commission and proceeds checks 12

ESCROW & CLOSING OPENING THE ESCROW After 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 details for the closing. WHAT THE ESCROW COMPANY DOES When the escrow is opened, an order for a title report/ commitment is placed with the title company, 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 areas, buyers and sellers instructions are prepared for signature from the information gathered. ESCROW INSTRUCTIONS AND YOUR CLOSING Your 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.

COMMON WAYS OF HOLDING TITLE

itle 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 OWNERSHIP Where 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 married 2. 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-OWNERSHIP Where 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 wife 5. Registered Domestic Partnership: A legal union of two persons of the same sex, when registered with the State of Washington 6. Joint Tenancy: A form of Co-Ownership by two or more individuals (none of which can be a Corporation, 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 CoTenant the survivor, or survivors, take no new title but hold the entire estate under the original transfer, 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 OWNERSHIP Entities 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.

BUYERS GLOSSARY LOAN AMOUNT The amount of the mortgage based on the purchase price, minus the down payment DOWN PAYMENT Cash 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 POINTS Fees 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 FEE The amount paid for the lender’s appraisal of the property CREDIT REPORT FEE The fee charged by the lender to obtain a credit report on the buyer TITLE INSURANCE FEE A 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 FEE The 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 COSTS A gerenal term for all the estimated charges associated with the transfer of ownership of the property PREPAID INTEREST The 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 PITI The estimated house payment, including principal, interest, taxes, and insurance PRINCIPAL AND INTEREST The 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 REQUIRED The 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 15

MOVING CHECKLIST 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

MOVING CHECKLIST 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.

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

SEARCH ON THE GO

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16261 Redmond Way St. 150, Redmond WA 98052 16812 140th Ave NE Woodinville WA 98072 425.243.9000 | MarketplaceSIR.com