Pure Gold Realty Home Buyer's Guide

1410 W. 6th Street | Austin, TX 78703 | o: 512 -467-4053 | www.PureGoldRealty.com

Pure Gold Realty’s REALTOR® Partners are by far the best in the business. The training and support we provide our agents enabled us to produce the number one residential real estate sales team in the Austin metro area, as recognized by the Austin Business Journal.

What does that mean for you? A lot of experience on your side of the real estate transaction. Experience alone is not enough to be successful, however. Our entire team is dedicated to continuing education through both real estate seminars and regular in-house training. In addition, the team has earned multiple designations that enable our clients to have the competitive edge they need to be successful!

Pure Gold Realty holds designations in the Council of Residential Specialists; Graduate, REALTOR® Institute; Accredited Buyer Representation; as Successful Relocation Specialists, and as Certified Negotiation Experts. They are graduates of GOLD STANDARD training and attend continuing education every week. All agents stay on top of the local Austin market by viewing and comparing properties on a daily basis. They also continuously study and research industry trends in order to best advise our clients as to what the market may hold in the future. There is simply no better qualified nor better prepared team of residential real estate specialists in Austin!

In 1997, Chad left his native Minnesota for Austin, Texas. The next year, he pursued his real estate license and began selling homes. Early in his real estate career, Chad was introduced to the team concept and realized its benefits.

In his first full year in real estate, Chad sold 67 homes, breaking barriers he never thought possible. He did that by relentlessly serving his clients at the highest level. And that was just the beginning…Chad began building a team, setting higher goals and creating plans that allowed him to achieve those goals. He kept setting his sights higher and within seven years became the number one realtor in Austin, Texas.

At the age of 31, he moved his team from ReMax to Keller Williams. He set a goal to break $100 million in real estate sales. Within two years, Goldwasser walked across the stage at the Keller Williams national awards event as the top agent worldwide for Keller Williams Realty with 543 sales and $123 million in sales volume.

In November 2008, Goldwasser left Keller Williams and formed his own independent brokerage, Goldwasser Real Estate. That year the company grew from 30 agents to more than 70 agents. In 2013 Goldwasser re branded the company to Pure Gold Realty.

Chad first learned about serving others while working in the restaurant business. Today, Chad’s life exemplifies the company’s core values of personal growth, leadership, world class service, teamwork and having fun. Pure Gold Realty is dedicated to giving you the best home buying experience possible.

Home Buyer’s Guide

With many years of experience in real estate, the team of managers assisting in the purchase of your property is among the best! Countless details need special attention during a real estate transaction.

Realistically, no one person can be effective in all areas of real estate, including market research, negotiating, and transaction details.

Our team’s specialized managers focus solely on each phase of the real estate transaction and strive to be the best in the business at what they do. During the purchase of your home, expect to see the results of having these dedicated professionals work with your REALTOR® to handle all aspects of the transaction.

There are three ways in which you can be represented during the purchase of a new home.

Why do people often choose the worst form of representation? Usually because of misinformation about the home buying process. Our goal is to be your Exclusive Buyer Agent and to assist you in making well-educated and informed decisions throughout the home buying process. You can be represented in a real estate transaction in the following ways:

“As always, my Pure Gold Realty agent delivered on key results with selling.

I can’t express my gratitude enough for her ability to navigate the complexity of a sale while insulating us from any possible doubts. We will continue to bring her business because of this. Great work to the Pure Gold Realty team on consistent execution!”

-William Young

The listing agent has a written agreement to manage the sale of the seller’s home and their sole fiduciary duty is to the seller. Some buyer’s don’t realize that they should have their own representative that is looking out for their best interests. What MOST buyers don’t realize is that even if another agent other than the listing agent shows you homes without being in a WRITTEN buyer representation agreement with you, by law they are still acting as a subagent to the seller and NOT YOU! In this situation, the agent must disclose to the Seller any material information they have been told by you.

Pure Gold Realty · www.PureGoldRealty.com

This is how a buyer is represented when they have entered into a written buyer representation agreement with their Exclusive Buyer Agent. In this situation, the agent must act only in the best interest of the Buyer, keep all the Buyer’s material information confidential and must provide the Buyer with any material information they have about the Seller.

“I have now been working for Streetman Homes for almost two years. During that time I have had the opportunity to meet well over 1,000 Realtors. Needless to say, I am always impressed with any agent that I have ever worked with from your organization.

I only hope that I am able to live up to half the expectation that your team deserves when working with me in the future.”

-Ryan Outlaw, Community Sales Manager Streetman Homes

If the home you buy is listed with Pure Gold Realty, then your Buyer’s agent will still be bound by the duty of confidentiality and will not disclose any of your information to the seller or the seller’s agent.

Pure Gold Realty councils its sellers to have their homes in the best condition possible and our marketing and make-ready process is without equal in the industry. As a result, it is common for our Buyers to learn about these great properties before they even hit the market resulting in a sale and creating a win-win for both parties!

An Intermediary Relationship is defined as: when one Brokerage represents both parties in a transaction and assigns individual agents to represent each party exclusively so as to ensure an arms-length transaction and preserve confidentiality. Each party of the transaction will acknowledge this relationship in writing.

Pure Gold Realty can represent you in every buying situation. Our team of Exclusive Buyer Agents will evaluate your home buying needs in our first meeting with you and will then be better prepared to assist you in your home buying search. We are highly skilled in locating the ideal home for you, whether it’s an existing home, a “for sale by owner,” a HUD property, short sale, foreclosure, or even brand new construction!

Once we know your wants and needs based on our initial consultation, we spend time previewing properties that meet your criteria. We can show you homes listed by any brokerage firm in the Austin area, and we are able to help you narrow a list of potentially hundreds of properties because we know our inventory better than any firm in the business. By previewing properties first, we are able to look at several homes in the time it would take both of us to view just one.

Other agents may waste your valuable time driving by showing you homes that don’t meet your needs. Instead, we narrow the list with you and show you only the homes that meet your criteria. The bottom line is we save honor your valuable time. This also results in our clients successfully putting in their offer and acquiring the best property for them, while the competition is still driving in circles!

Home Buyer’s Guide

Despite the many advantages of hiring a qualified brokerage to handle a home sale, we still run across homeowners who wish to sell their home themselves. In fact, many of our listings are people who have tried unsuccessfully to sell their own homes. Because we always seek to give our clients the competitive edge, we maintain awareness of all for sale by owner properties in the Austin area and will be happy to arrange a showing for you. In this transaction, you will continue to be represented by us with our buyer’s representation agreement. It is the seller who loses, as they complete the transaction with no professional representation.

Many Buyers are not aware that the often very friendly salespeople at a new construction sales center/model home work for the builder, and do not represent the Buyer at all during the building process. In fact, most builder salespeople are not even licensed Realtors®. We have extensive knowledge of area builder reputations, floor plans, and lots, as well as schools, neighborhoods, and amenities. As your Exclusive Buyer Agent, we will negotiate the purchase price on your behalf with the builder and assist you in selecting upgrades. We will work throughout the transaction to ensure everything goes smoothly, and be there to advocate for you in the event things are not provided as promised.

Not all REALTORs® are able to sell homes foreclosed upon by the government. Known as “HUD” homes, a consumer MUST use a registered HUD REALTOR® in order to bid on and purchase one of these homes, due to the complexities involved. ALL Pure Gold Realty REALTOR® partners are able to show, bid and assist you in purchasing a HUD home .

A Bank foreclosure occurs when the former owner ceases making payments and the Bank reclaims the property and then offers it for sale to recoup the monies loaned for the home purchase. A short sale, in contrast, is when the former owner approaches their bank, informs them that the current market value is not high enough to wipe out what they owe, and negotiates (often through a REALTOR®) that the bank will retire the loan for less than what the borrower owes. Many consumers are under the impression that a foreclosure or short sale will provide them with the best deal possible. This is not always the case, as often a property that has a stronger equity position will have the ability to negotiate more. When it is the best deal, however, ALL Pure Gold Realty agents can assist you successfully through this often complex and sometimes lengthy process.

The most important thing for you to do before beginning your new home search is to select and meet with a mortgage lender. You can find a list of recommended lenders in the service provider list at the back of this guide. It is important to do this before we begin our search for several reasons: 1. It allows you to determine how much your monthly payment will be.

2. It helps us to determine what price range we should stay within.

3. It gives you an estimate of how much money you will need to have for the down payment and closing costs.

4. After answering just a few questions, the lender can provide us with the prequalification letter necessary to book appointments to see the homes you wish to tour in person!

Pure Gold Realty · www.PureGoldRealty.com

1. Option Fee ($100–$500): Payable to seller at receipt of the contract. This will be credited toward your closing costs.

2. Earnest Money (1% of the sales price of the home): Payable to the title company at receipt of the contract. This will be credited toward your closing costs.

3. Inspection ($300–$500): Payable to the inspector at time of the inspection during the option period.

4. Credit Check and Appraisal ($425): Payable to the lender after the option period expires.

Some Buyers don’t realize that their monthly payment will not only include the principal and interest on the loan they receive from their mortgage company, but that they also can choose to have it include their monthly insurance payment and 1/12 of their annual tax bill for the home. Many loans actually require this or you can choose to pay these bills on an annual basis.

Once you have found the home you wish to purchase, our REALTOR® partners will signal your lender to complete a Good Faith Estimate (also known in the industry as a GFE) for you that will better approximate your closing costs and estimated monthly payment. We seek to take as many of the unknowns out of the equation as possible, so that our clients are happy with their buying decision.

We will go through several steps together while finding and purchasing your home. For many of these we simply handle the task for you, however others may require some work from you. We inform you about every aspect of the transaction, and remind you when there are tasks that you should be working to complete. The chart on the next few pages shows the flow of these tasks so you can better understand the home buying process.

TIME FRAME: Before We Begin Looking The first step in buying a home is to obtain loan pre-qualification. This provides you with the information you need to determine what type of monthly payment you are comfortable with, as well as a letter that will enable your REALTOR® to schedule appointments with Sellers for you to view their homes in person. After you’ve become prequalified, you’ll need to provide some additional documents to the lender so that you can receive a pre-approval. Sellers in our market do not consider offers from Buyers who are not pre-approved and cannot provide a pre-approval letter. We work with several lenders who have proven to offer exceptional customer service and competitive interest rates. A list of recommended lenders can be found in the service provider list at the back of this guide. You may use one of these, or you may choose one of your own. If your situation does not allow you to obtain traditional financing from a lender, Seller financing is also an option.

Three elements are crucial to the purchase of a home: the down payment, closing costs, and qualifying for a mortgage.

Home Buyer’s Guide

Mortgages insured by the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), and those available to U.S. veterans (VA) often require very low or even zero down payments. Ask your lender if you can qualify for one of these loans.

Conventional lenders typically require between a 5%-20% down payment, although a wellqualified lender may be able to find a specialty loan product with a lower down payment. With down payments less than 20%, you will likely have to pay private mortgage insurance, which guarantees the lender will be repaid in case of default.

1. Start early. Begin saving for a down payment as soon as possible. Doing without any “perks” for a short amount of time can really add up.

2. Consider asking family. Family members can “gift” you all or part of your down payment. Later, you can perhaps return the favor! Check with the lender for instructions and restrictions.

3. Convert stocks. Consider selling stock for the down payment. The housing market, especially the Austin Metroplex, is often a better investment.

4. Borrow against your 401(k) or other instrument. The lender can recommend a mini-loan product that allows you to borrow your down payment using your instrument as collateral. Ask lender for details.

5. Sell an asset. If you have a boat, extra car, or even several small items, consider selling them for all or part of the down payment.

No matter what home you buy, there will be closing costs. ALL of our Realtor® partners will attempt to negotiate that the Seller pay all or a portion of these costs. These can include discount points, title insurance, escrow fees, attorney fees, a termite report, recording fees, appraisal fees, document preparation fees, notary fees, and loan underwriting fees. If the Seller is unwilling or unable to pay these costs for you, then they are due in cash at closing, but sometimes they can be folded into the mortgage. Ask your Realtor® for details.

Pure Gold Realty · www.PureGoldRealty.com

“From start to finish, my Pure Gold Realty agent was professional, knowledgeable, helpful, personable and always above board in every respect. It was truly a pleasurable experience thanks to Amy's abilities, knowledge and manner of handling details. I don't think there is any way that either my Pure Gold Realty agent or Pure Gold Realty could have improved upon anything. I would not hesitate to recommend Pure Gold Realty in the future. Thank you for a job well done!”

-Myra Schussler

“My husband and I contacted our Pure Gold Realty agent about finding us a commercial building for my photography studio. She found the perfect location for my business and was there every step of the way to guide us through the process. She contacted us and told us each day what the next step was, sent emails with details and forms, and gave us a list of good companies to use for inspections, repairs and banking needs. She was amazing. We are so thankful she found this building for us. It was the perfect price, the perfect building, the perfect location. She was professional through the whole process and a great encourager along the way with helping us to vision our business there.”

-Karen Jordan Ashley Photography

Primarily, your income minus your monthly debt payments, as well as the interest rate secured, determines the size of the mortgage for which you qualify. The higher the interest rate is, the higher the monthly payment. The higher the monthly payment, the more income you need to qualify for the mortgage. For conventional financing, lenders generally limit the monthly payment to 28% of your gross monthly income. Exceptions can be made depending on individual circumstances. The amount of debt you currently have may also factor in the decision.

Contacting a lender early on in the process is wise strategy. This head start gives you a chance to resolve any problems that are revealed BEFORE you ever start looking at homes. That way you won’t miss out on the perfect property!

TIME FRAME: At Acceptance of Offer Upon acceptance of your offer, it is recommended that have the property inspected, although this is not required. Your Realtor® can arrange for an inspection of the property if you desire.

Regardless of who schedules the inspection, it needs to be completed during the option period.

This is because if something is discovered during the inspection that is outside of the norm for a property of similar age or location, and the seller is not willing to fix or compensate you for it, you may cancel the contract and only forfeit your Option Fee. The enclosed service provider directory offers a list of inspectors licensed by the Texas Real Estate Commission (TREC). The inspection will take two to four hours and you will only need to be present for the last half-hour when the inspector reviews the findings with you. All homes will likely have a long list of minor repairs. However, we are mainly looking for major mechanical or structural defects to the property.

The cost of the inspection varies based on the size and features of the home and will range from $300 to $500. This payment is payable directly to the inspection company, and due upon making the appointment.

TIME FRAME: Immediately Following Inspection After the Inspection, if there are any items that fall outside of what is appropriate for a home of similar age and location, we will negotiate with the Seller to either repair these items or compensate us in whole or part. To make this or any other change to the contract, a contract amendment must be completed. Once an agreement has been reached between the parties, you will waive the remainder of the Option Period and proceed with the transaction.

TIME FRAME: During Option Period In order to close on your new home, you need to arrange for Homeowner’s Hazard Insurance.

You will need to notify your lender of the insurance company you choose, a contact name, and a phone number. The enclosed service provider directory lists names of insurance agents that our clients have used in the past and have been very satisfied with. You may receive a discount by Home Buyer’s Guide

having your car insurance and homeowner’s insurance with the same company, so check with your current insurance agent as well. We recommend that you obtain at least two estimates from different agents, and also have them pull a CLUE report on the property to make you aware of any past claims, and then make a decision.

TIME FRAME: 2 Weeks Prior to Closing You will need to transfer the utilities to your name before moving into your new home. In order to save money on hook-up fees, call ahead and ask the utility companies to transfer the billing to your name upon cancellation by the Seller. In the enclosed service provider list you will find most utility information for Austin and surrounding areas. If you need further information, please call us! We are here to help you!

TIME FRAME: 72 Hours Prior to Closing Obtaining pre-approval for a home loan is just the first step in funding your loan at closing. Many times buyers plan to use monies from stocks or 401(k) retirement plans as down payment on their new home. If you plan to liquidate stocks or 401(k) to supplement your down payment, the money from the sale of these funds must be available in the form of cash in your bank account at least 72 hours prior to closing. Because a withdrawal from a 401(k) can be a complicated and timeconsuming process, we advise you to begin the withdrawal of these funds immediately.

On average, one out of five home mortgage loans goes through a quality control check. The lender does this to ensure that the borrower’s financial status has had no change since the approval of the loan was granted.

No matter how good your financial situation, lenders strongly advise that YOU SHOULD NOT DO ANY OF THE ACTIVITIES in the following list after the date of your loan approval. This COULD RESULT IN THE DENIAL OF YOUR LOAN! This list includes, but is not limited to: applying for new credit * gaining new credit * purchasing appliances * furniture * cars * changing jobs or quitting your job.

An appropriate time to make any of the above financial changes would be AFTER the closing and funding of your new home.

If you have ANY QUESTIONS about your purchase decisions while you are waiting to close on your new home, PLEASE CONSULT YOUR LENDER!

TIME FRAME: Just Prior to Closing Just hours prior to closing, the title company will complete the HUD 1 settlement statement. This is the document that tells us how much money you will need to bring to closing. We will call you with this amount so that you can obtain a cashier’s check from your bank made out to the title company. Bring this check along with your VALID driver’s license or Passport to closing. You may also wire funds directly from your bank to the title company, and in fact, some title companies will only accept wired funds vs certified funds.

TIME FRAME: Day of Closing You will receive keys to your new home from the Seller when the title company receives notice that the loan has funded. You will be able to begin moving in immediately following funding notice. Funding usually happens within a few hours of closing, although any closings not completed by 4:00 pm will usually fund the next day. The closing/signing appointment will take approximately one hour to complete.

Pure Gold Realty · www.PureGoldRealty.com

Home Buyer’s Guide

Electric Austin Energy Pedernales Electric Water/Sanitation City of Austin Utilities Gas Atmos Energy Texas Gas Service Telephone AT&T Cable TV Time Warner Cable

Electric Pedernales Electric Water/Sanitation City of Buda Gas CenterPoint Energy Telephone Verizon Communications Cable TV Time Warner Cable

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Gas Atmos Energy Texas Gas Service Telephone AT&T Cable TV Time Warner Cable

Electric City of Georgetown Water/Sanitation City of Georgetown Gas Atmos Energy Telephone Verizon Communications Cable TV Cox Communications

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Electric TXU Energy Reliant Energy Water/Sanitation City of Pflugerville Gas Atmos Energy Telephone AT&T Cable TV Cox Communications

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Pure Gold Realty 路 www.PureGoldRealty.com

Electric Austin Energy Water/Sanitation ECO Resources Gas Atmos Energy Telephone AT&T Cable TV Time Warner Cable

512-494-9400 512-335-7580 800-460-3030 800-464-7928 512-485-5555 800-418-8848

1410 W. 6th Street | Austin, TX 78703 | o: 512 -467-4053 | www.Pure-Gold-Realty.com