buying your home
MATT DAVIS | 603.498.5020 | MATTHEW.DAVIS@KW.COM ALI DAVIS | 617.429.1503 | ALIDAVIS@KW.COM
your home buying process
1.
DETERMINE NEEDS
5.
2.
HOW YOU WILL PURCHASE A HOME
3. 4.
FIND + VIEW HOMES
SUBMIT OFFER / NEGOTIATE
UNDER CONTRACT
6. 7.
DUE DILIGENCE
PRE-CLOSING
8. 9.
SETTLEMENT & CLOSING
HOME OWNERSHIP
your notes
how you will purchase a home PRE-APPROVAL IF FINANCING pre-approval is the amount a lender is willing to potentially lend you based on the
information and documentation you have provided such as income, credit history and current debt levels.
the first step is to find a lender/broker that you feel comfortable with and then it
is essential and we require that you obtain pre-approval before we start your home search.
pre-approval is generally valid for
60-90 day and can be updated by re-verification of information.
once you are pre-approved any offer you make has equal strength to that of a
cash offer and a pre-approval letter is evidence to that.
CASH BUYER if you are planning to pay cash for your home, it is important that you have a proof of funds letter to prove that you have enough liquid cash to purchase the home.
you can get a proof of funds letter from the institution where your money is being
held—typically a bank but also an open credit line or money market account where funds can be accessed quickly.
To be safe, provide whatever institution a week to prepare your proof of funds letter.
finding your ideal home
UNDERSTANDING YOUR WANTS VS. NEEDS fill out the included ‘wishlist’ to assist the process
during our consultation we will sit down and clearly determine your wants,
needs and absolutely what you don’t want. we will discuss what the market offers currently in your price range and establish expectations from there.
90% OF BUYERS SEARCH FOR HOMES ONLINE let us help you to best utilize your screen time
LET YOUR CAR BE YOUR GUIDE -tour potential neighborhoods -get a feel for your target neighborhoods and be sure they fit your criteria
-drive around during various hours of the day to see traffic flow -explore what the areas have to offer and distance to amenities LET US BE YOUR GUIDE - ideally view 5 homes per day - to keep a clear mind - our goal is to find your top 3 homes
make your offer
WHAT DETERMINES THE BEST OFFER the price you offer to pay for your desired home is based on a wide variety of factors. these are specific to the real estate market, your financial situation, and the home value itself.
THE HOME BUYING FACTORS INCLUDE: -market conditions -the physical condition of the house -desirability of the neighborhood -sale prices of comparables (“comps”) in the neighborhood -resale potential -seller motivation as realtors® we have tools and up-to-the-minute information about the local market. we will use our information to give you recommendations on an offer price.
ULTIMATELY THE FINAL OFFER PRICE IS UP TO YOU.
under contract
REAL ESTATE PURCHASE CONTRACT | REPC while most buyers are aware of terms regarding price, closing date, and financial arrangements, there is a tendency to overlook other contractual details. all of
the terms outlined in the contract will be binding, so it’s important to understand what you are agreeing to before signing.
BY SIGNING THE REPC, WHAT EXACTLY ARE YOU AGREEING TO? -the sale price of the property -important dates and times -financial arrangements -what fixtures will be included or excluded from the sale -what the seller’s obligations will be -what the seller’s obligation to maintain the property will be -what the seller is warranting about the property -what the buyer’s inspection rights will be -what will happen should either party not comply with the contract -whether or not the buyer or seller can get out of the contract -what will the parties’ legal rights and attorney fee provisions in the event of a breach of contract. REVIEWING & UNDERSTANDING THE REPC ALLOWS YOU TO: -strengthen your negotiating position -protect yourself from incurring unnecessary costs or problems. -build an understanding of what you will need to do to conclude sale
EARNEST MONEY WHAT IS IT? earnest money is a deposit the home buyer puts down when making an offer to
purchase a home. the purpose is to show the seller that you are earnest (or serious)
about buying their house.
the earnest money deposit demonstrates your good faith in purchasing the home and your level of intent to move forward through closing
WHAT IS STANDARD?
1-4% of the purchase price is average
the more you are able to put forward, the more competitive your offer will be
CAN I LOSE MY DEPOSIT IF I CANCEL THE CONTRACT? if you choose to cancel after certain deadlines have passed you may have to forfeit your earnest money to the seller
WHAT CAN WE DO TO PROTECT YOUR EARNEST MONEY? we will work to protect you and inform you of any risks that you might face we will include the necessary contingencies within our written offer to protect your earnest money.
under contract TITLE REPORT the title report is the most important document to receive when learning about a property and understanding it is essential.
WHAT IS A TITLE REPORT?
the title company compiles the report from a search of county records.
its purpose is to document ownership, vesting, and details regarding anything recorded against the home, such as liens, encroachments, or easements.
COMMON TITLE DEFECTS: -fraud and forgery -liens for unpaid taxes -outstanding mortgages -easements -incorrect notary acknowledgements -improper vesting and incorrect names TAXES & MORTGAGE LIENS -property taxes always show up as the primary lien on a title report. -property ownership cannot be transferred with outstanding property taxes -mortgage liens are generally listed directly below property taxes -when a sale closes, the liens must be paid in the order that they appear on the title report
EASEMENTS -if another owner has access to the property via an easement, it would be recorded on the title report
-this stays on the report until both parties agree lo remove it -the title company can pull the original easement agreement for review
CC&RS -in the case of a condominium or hoa, there are covenants, conditions and restrictions (cc&rs)
recorded against the property
-a new buyer purchases the property subject to the rules and regulations documented in the cc&rs OTHER ITEMS -from time to time there will be items that come up on the title report that aren’t typically there, such as restrictions, historic oversights, planning requirements. -it’s important to go through the title report with a professional to be sure that you know and understand what issues could affect your homeownership
TITLE INSURANCE
a one-time charge which protects your investment against loss arising from flaws and defects already existing in title, for as long as you and your heirs own the property.
due diligence UNLIKE MOST MAJOR PURCHASES, ONCE YOU BUY A HOME, YOU CAN’T RETURN IT IF SOMETHING BREAKS. THAT’S WHY PROPERTY INSPECTIONS ARE CRITICAL TOP HOME INSPECTION ISSUES YOU SHOULD KNOW ABOUT sometimes the notes on a home inspection report are minor (like a blown-out light bulb),
while others are major (such as a leaky roof). that means that there are some issues that,
if a home inspector finds them, are going to be a problem and will need to be dealt with before continuing with the deal. these include :
-structural problems
-termites and other pests -drainage and water issues -mold problems -radon issues
-wiring and electrical issues -plumbing issues -well water issues -asbestos issues -lead paint
-a bad roof that needs replacement keep in mind, these problems do not have to be the end of the deal. but you will want to
request a credit or have the sellers hire a professional to make repairs.
pre-closing NEED TO KNOW : CLOSING COSTS the term closing costs refers to various fees and charges a home buyer might incur when purchasing a house using a loan. buyers paying cash can also
encounter closing costs, however they tend to be much lower. these closing costs can include:
-appraisal fee -mortgage origination fee -mortgage discount points/prepaid interest -prepaid home insurance premium -credit report fee -government recording fees -lender title insurance fee -escrow closing fee -title search fee -transfer tax if you are financing you will receive a closing disclosure at least
3 days before
your closing. you should compare this to your loan estimate document and note any changes. be sure to ask any questions once you look through this.
settlement
& closing
THE FINAL STEP TO HOMEOWNERSHIP! WHO ATTENDS THE CLOSING?
multiple people are involved in real estate sales transactions, especially on closing day. these
- those who are directly involved in the sale and those who are neutral third parties helping to facilitate the transaction. those who are directly involved include buyers, sellers, and their real estate agents. escrow agents and title agents are third parties who facilitate the legal transaction. additionally, loan officers forward paperwork and funds from lenders for the settlement process. some loan officers may even attend the closing. people can roughly be divided into two categories
WHAT HAPPENS ON THE BIG DAY?
there is a lot of paperwork that goes along with this process. the title company will have the
-- they’ll just need to be signed. as the home buyer, you will have a lot more paperwork to sign than the seller. you might sign your name anywhere from ten to thirty times during the closing process. you’ll have to sign mortgage documents, legal disclosures, tax records and more. documents ready to go
HERE ARE SOME SPECIFIC THINGS THAT HAPPEN ON CLOSING DAY: -the buyer (or the buyer’s lender, if financing) will provide a check for the amount owed toward the purchase price of the house. -the seller will sign the deed over to the buyer. this act officially transfers ownership to the buyer. the seller will turn over the keys, as well. -the title company will register the new deed with the appropriate government office. this record will show the buyer as the new homeowner. -the seller will receive any proceeds they earned from the sale, once their mortgage balance and closing costs have been paid off. when all of the documents have been signed, and all funds have been properly distributed, the
deed of ownership will be transferred from seller to buyer. this is when you become a homeowner. the seller will hand you the keys to your new house, and then you’re all done!
words you should know COMPARATIVE MARKET ANALYSIS (CMA): a report on comparable homes in the area that is used to derive an accurate value for homes being considered for purchase.
OFFER:
when a buyer makes a written promise to purchase real estate. it does not become a contract until all terms are
accepted by both seller and buyer.
REAL ESTATE PURCHASE CONTRACT (REPC): is a binding, bilateral agreement between two or more parties.
they
must each have legal capacity to make the purchase, exchange, or other conveyance of the real property .
CLOSING COSTS: fees paid at the end of the transaction either by the seller or buyer or both. they include taxes, insurance and other lender expenses.
CONTINGENT: offer on a home has been accepted but finalized sale is contingent upon certain criteria. typically appraisal, home inspection, or mortgage approval.
HOME INSPECTION: an examination of the property’s condition. usually performed by a qualified home inspector of your choice.
APPRAISAL: property and /or land valuation completed by an appraiser who determines the market value. typically required by lenders.
SETTLEMENT:
the seller and buyer sign all required documents for title transfer and mortgage (if applicable).
EARNEST MONEY: deposit made to a seller showing the buyers good faith in a transaction. typically held in a trust or escrow account.
TITLE: a bundle of rights in a piece of property. the title company will provide you with the preliminary title report to review before accepting the property
CLOSING / RECORDING: the day after signing, the ownership of the property will be transferred to the buyer, this is the day you will receive your keys!
Welcome
e
Home!
who we are
both born and raised in new england, matt and ali found themselves chasing their shared values and interests west and decided on park city to make their roots. here, their growing family - currently consisting of their toddler boy and rescue dog from nuzzles & co - can enjoy the inexhaustible offerings this town and region have to offer while providing the balance in life they are seeking for themselves and their family.
ali davis is a former elementary school teacher turned real estate agent. ali dreamed of becoming a teacher at a young age and knew she had the skill set to help each and every
child she taught be successful and feel important. she uses that same skill set and attitude in real estate where she continues to help, serve, and educate clients with the utmost care.
matt davis is an accomplished real estate and architectural photographer who observes the world through creative eyes, subtle nuances and appreciation for both form and function.
today, as a real estate professional, he is bringing that resourcefulness and intimate
familiarity with the area’s homes to the heart of his buyers, while offering a personalized full service marketing platform to his sellers through visual storytelling and customized outreach of their unique home.
photography say hello to our creative half
matt of matt + ali is also a professional photographer, starting his own real estate + commercial photography company shortly after moving to park city. he also brings 10 years of experience in marketing and branding throughout multiple industries and unique insight into staging and interior design.
what other team can offer this level of experience and skill towards the listing preparation of your home?
we understand inherently how important it is to capture the story of your home through photography in an authentic and compelling fashion.
our goal is to evoke a feeling of
intimacy that will draw buyers in and initiate the first step towards contacting their agent and scheduling a showing.
MATT DAVIS | 603.498.5020 | MATTHEW.DAVIS@KW.COM ALI DAVIS | 617.429.1503 | ALIDAVIS@KW.COM