Compliments of: Real Estate of Winter Park 970-726-2600 info@rewinteraprk.com www.rewinterpark.com
Representing the Best in Real Estate
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Perhaps you've seen our advertising, received a postcard from us, noticed our colorful signs or heard about us from a friend or neighbor. In 2008, our group of top real estate sales agents came together to create a new company emphasizing teamwork, custom service and a strong marketing campaign. Also, part of our company philosophy is giving back to our community by donating not only financially but with the most important thing - our time. In 2010, we sold more real estate than any other company in Grand County - over $72.5 Million! This is about $20M & $40M over the next two closest competitors. We attribute our success to our basic tenants: provide excellent customer service, aggressive marketing strategies and technology and we are all somewhat work-aholics! We also do something that no other company does - work as a team. We don't want to compete with one another, instead we help each other and our clients to create the best real estate experience for everyone! All of our real estate agents are Realtors and abide by the Realtor Code of Ethics.
Maps: Old Town Winter Park, Lakota and the Ski Area Winter Park (Downtown) Fraser Tabernash (Pole Creek & Winter Park Highlands) Granby Area (Innsbruck Val-Moritz, Grand Elk and Granby Ranch) Granby (Downtown) and Hot Sulphur Lake Granby Area Lake Granby & Shadow Mountain Reservoir Area Grand Lake Area
Useful Links: Annual Market Report and other Statistics Resource Guide for Grand County Calendar of Events Pine Beetle Info Rec Center Info
Representing the Best in Real Estate
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Colorado allows a choice for brokerage services. Colorado allows brokers to offer rebates to customers. To see how your state compares go to: http://www.justice.gov/atr/public/real_estate/statesmap.html In Colorado, you do not necessarily need an attorney to complete a real estate transaction, but we do recommend that if you would like legal counsel to please employ an attorney to work with you & your Realtor. Your Realtor can help you find an attorney in Colorado. In Colorado, all real estate agents are required to use standardized real estate forms that attorneys have created for us and they are some of the most thorough real estate contracts in the country! These forms are updated every year or two to comply with changes in regulations and new federal and state laws. To view any of the forms go to the Colorado Division of Regulatory Agencies Real Estate section: http://www.dora.state.co.us/real-estate/contracts/contracts2011.htm. You can also verify real estate licenses, check for disciplinary actions, files complaints and more.
Representing the Best in Real Estate
Before you start looking for a home you should ask yourself a few questions: • Where do you want to live? Do you want to live near a golf course, near the ski slopes, water or wooded? • What kind of home would you like or need? Are you looking for a particular style? It's important to keep in mind your wants vs. needs when searching for a home. • How much house can you afford? Have you consulted a Realtor or mortgage lender to determine the size of the mortgage you would qualify for? Here are a few tips to help you get organized: • Pull a credit report on yourself and make sure the information is accurate. If you find any errors take steps to correct them immediately. • Browse through real estate advertisements in the newspapers & online. This will give you a good feel for the types of homes that are on the market and what they cost. • Visit open houses on the weekend. It doesn't cost anything to look, and looking at a few different homes might give you ideas for things you'd like in a house but haven't considered. • Start saving money - you'll need to have cash on hand for a down payment and closing costs. • Don't incur any additional debt. Pay down your credit cards - and don't apply for any new ones. Don't make any major purchases on credit - buy the furniture or car later. • Your Real Estate of Winter Park Realtor can help you determine how much you can afford, and they can provide you with information on homes that may interest you. Your Realtor will also help you complete all of the necessary forms when it comes time to make an offer.
Representing the Best in Real Estate
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Simply put, you can afford a house that costs as much as the largest monthly mortgage payment you qualify for. A quick way to estimate the size of mortgage you qualify for is to take your gross monthly income (that's before taxes and other deductions) and multiply it by .28.
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Mortgage companies use something called qualifying ratios to determine how much they will lend you. Most mortgage companies use either a 28/36 ratio or a 25/33 ratio. The first number in each pair is the percentage of your gross income that the lender would consider acceptable as a monthly mortgage payment EXAMPLE: $3,000 (monthly income) x 28% = $840/month
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The second number in each pair is used when all debt payments are considered, not just the mortgage. EXAMPLE: $3,000 (monthly income) x 36% = $1,080/month - $250 (car payment) = $830/month
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As you can see, in this example the numbers work out to be almost the same. Obviously if you have more debt you would qualify for less.
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Note: If an income or expense field does not apply to you, please leave it blank. All dollar figures should be entered in a monthly time period (i.e. if you earn $48,000 a year, place 4000 in the Salary field). This utility will give you an estimated mortgage payment you will qualify for. The purpose of this information is to serve as a useful guide. For more exact, personalized information, please contact a certified mortgage representative.
Representing the Best in Real Estate
Once you’re serious about buying a home or piece of land, find a real estate agent. A real estate agent has access to nearly all the homes for sale and can sort through all the data to find what you’re looking for. And, in most cases, our services are FREE to buyers (we’re paid by the seller for helping sell the property). Finding the Right Agent for You • Referrals from friends are a great way to find an agent - probably one of the best. It’s important that you have a good rapport with your agent, so make sure you can envision spending time with this person. (House hunting can be a very emotional experience!). The real estate agent you choose should be enthusiastic about working with you, and should be familiar with the neighborhoods you are interested in.
What’s a Buyer’s Agent • A Buyer Agent is formally “hired” by a buyer to help the buyer find a home, negotiate a contract for it and get the transaction to closing. This involves more than just driving around on a Saturday afternoon looking at homes. • A Buyer Agent contractually agrees to be an advocate for the buyer, to advise, to disclose all material information related to the property, to be reasonably available to the client to show homes and handle other matters, to disclose any confidential information learned about the seller or property and to keep ANY information shared by their client confidential (with a few exceptions). *See the Buyers Agency Agreement & Definitions of Working Relationships at the end of this package.
Representing the Best in Real Estate
Should You Hire a Buyer’s Agent? • We strongly recommend that you NOT sign an Exclusive Buyer Agency Agreement when you first meet an agent. We never ask a new client to commit to us until they are comfortable that we are knowledgeable and responsive, and that we have a good rapport. Be aware that some agents will not work with you at all unless you sign the contract up front. All agents should give you a copy of the Definitions of Working Relationships when they first meet you (See the end of this packet to read this document). • Once you have established that you and the agent work together well, it is usually a good idea to sign an Exclusive Buyer Agency Agreement. • Why? Because house hunting and home buying is hard work, and it’s important that your real estate agent will make a strong commitment to you if you have made a commitment to him or her.
How are Buyer’s Agents Paid? • Many first time buyers are surprised to learn that BUYER AGENT SERVICES ARE FREE TO THEM! In nearly all cases, the agent for the buyer is paid by the seller of the home you purchase. The listing broker negotiates a fee to be paid by the seller. Both agents split their share of the fee with their employing brokers to pay expenses such as support staff, office space, supplies, marketing, etc… • Just so you know, real estate agents are self-employed. We do not have company cars, expense accounts, salaries or draws. Our only income is the fee we receive when a home sells.
Representing the Best in Real Estate
All of our real estate agents are Realtors and abide by the Realtor Code of Ethics. Working with a professional Realtor to buy your home is a good idea for several reasons: • They will analyze your financial situation to help you determine how much you can afford. • They are familiar with the process of buying a home and can explain things to you. • They can easily access information on all properties listed for sale by other sellers in Grand County. • They can set up appointments for you to see homes that interest you. • They will help you complete all the necessary paperwork when it comes time to make an offer. • They will help you arrange financing. • They will be there at closing to answer your questions and make sure everything runs smooth. Choosing a Realtor® • Searching for your mountain dream home can be a time-consuming experience. Working with a professional Realtor will make the process much more efficient. • Since most people spend a fair amount of time with their Realtor, it's important to choose a Realtor you feel comfortable with, and one who is responsive to your needs. The following questions will help you decide if a particular Realtor is right for you: • Do they return your phone calls? • Do they ask you questions to determine what you want/need in a house? • Do they perform a financial analysis to help you determine how much you can afford? • Do they explain things clearly? • Do they suggest financing methods? • Do they seem knowledgeable about the community? • Do you feel comfortable spending time with them?
Representing the Best in Real Estate
Get Pre-qualified NOW (better yet, pre-APPROVED). In today’s uncertain mortgage lending environment, it is critical for buyers to begin the loan approval process before getting serious about hunting for a home. If you are a cash buyer, you may still need to meet with your bank to get a letter that you have sufficient funds.
Finding A Lender • A real estate agent helps you find a house; a lender makes financing the property possible. As soon as you’ve found a real estate agent to work with, ask him/her for names of lenders to interview. Referrals are VERY important or maybe your already have a lender you trust. • We have a list of recommended lenders that our clients have worked with in the past that we are happy to provide to you. • Your lender will establish a confidential relationship with you, so make sure you’re comfortable with him or her. Ask for a good faith estimate from a few lenders to compare their fees and expenses. Again, responsiveness is important! • Be prepared for the lender to ask for A LOT of personal information from you, from pay stubs, to tax returns, to savings account statements, to 401(k) statements to divorce documents. You might get frustrated during this process, but remember your ultimate goal…
Representing the Best in Real Estate
Summit Mortgage Group Walt Lipinski 303.791.4567 summimtggroup@comcast.net
Cherry Creek Mortgage/Denver Todd Pruitt 303.331.4456 tpruitt@ccmclending.com
Distinctive Home Lending Jennifer Duensing-Crosbie VP 303.221.7100 x110/303.887.9993 jennifer@distinctivehomelending.com www.distinctivehomelending.com
US Bank/Granby Anne Burks 970.887.3361/970.887.7340 anne.burks@usbank.com www.usbank.com
Wells Fargo/Winter Park Chris Rue 970.726.2007/303.880.5349 christine.rue@wellsfargo.com www.wellsfargo.com/mortgage
CO State Bank & Trust Mortgage Group Darlena Marmins 970.668.2200 dmarmins@csbt.com
Cornerstone Mortgage/Steamboat Jeff Chapman 970.726.5501/970.846.4774 jchapman@houselaon.com www.houseloan.com Grand Mountain Bank/Construction Loans Carolyn Rosenberg 970.887.1221 crosenberg@grandmountainbank.com America’s Mortgage/Broomfield Phil Kennedy 720.887.6844/303.641.7307 www.philkennedy.com
Cherry Creek Mortgage Company/Greenwood Village Tom Schreiner 720.290.1900 tschreiner@ccmclending.com Lake Dillon Mortgage Services, Inc. Kevin Doyle 303.339.5156/888.722.4749
Vectra Bank/Denver Tammy Fulco 303.710.0106 tammy.fulco@vectrabank.com *These names are only recommendations. We do not warranty or represent any of these businesses or services.
Representing the Best in Real Estate
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Spend some quality time with your real estate agent discussing your “must haves”, your “would really like to haves” and your “absolute no-no’s.” Your agent will tell you up-front if you are being realistic or not. There seems to be an unwritten law that your perfect house will stretch your comfort level a bit, so be prepared to either compromise on your “must haves,” or spend a little more than you’d like. Many first time buyers find that they adjust their expectations quickly and they discover that they are happy with a home that does not meet all of their wants and needs. Keep this in mind while you’re viewing properties.
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A real estate agent makes looking for a house easy and hopefully fun. You’ll set up a time to get together (2 - 4 hours) and decide ahead of time which available houses you want to see. Your real estate agent will set appointments to “show” the houses to you and hopefully the sellers will leave during your showing to give you privacy.
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New listings come on the market every day; your real estate agent should be updating you several times a week. We can set you up to receive automatic emails with new listing that fit your criteria and “portal” access so you can login anytime to see what’s currently active and keep track of what you like. Ask us about this if you are interested.
Representing the Best in Real Estate
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You and your real estate agent will write an offer to purchase the house, known as the Contract to Buy and Sell Real Estate. The contract will outline the terms of your offer (price, financing, closing date, etc.). Your agent should spend some time going over the contract with you. You will need to write an earnest money check to present with the offer. And yes, it will be cashed and held in a trust account if your offer is accepted. Your real estate agent will immediately present your offer to the seller’s agent. Typically, the seller has 24 - 48 hours to think it over and respond. During this period, you may rescind your offer at any time. Be aware that there is no first-come-first-served law - the seller can entertain other offers that come in after yours, prior to acceptance of yours. Then you wait...it’s harder than you think! By the deadline, the seller will do one of four things: – – – –
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Accept your offer as written (yahoo!) “Counter” your offer with changes (to price, terms, dates, etc.) THEY CAN COUNTER AFTER THE DEADLINE Reject your offer Ignore your offer (yes, this is rude, but they don’t have to respond)
Your real estate agent will advise you on a plan of action in each of the above scenarios. Let’s assume your offer was accepted (you are now Under Contract). The next few weeks will be busy, so be prepared to be distracted. You will need to have some flexibility in your schedule for the inspection and a meeting with your lender.
Representing the Best in Real Estate
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Your agent will provide you with Home Owners Association documents. It is important for you to review these documents. If you have any questions, your agent can contact the HOA for you.
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You will also receive a few disclosures from the Seller, depending on the property, you may receive Seller’s Property Disclosure, Square Footage Disclosure and/or Lead Based Paint Disclosure. If the Seller is a bank or the property is being sold “as is,” you may not receive any disclosures. It is important to review these disclosures, as they may give you hints about the condition of the property and help when you do your inspection.
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At this time you will also have to sign Closing Instructions and a Source of Water Addendum.
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The Source of Water is important in Colorado because most of our water is promised to down stream cities like Denver, Vegas, Phoenix, etc. If the property has a well, you and your agent will have to investigate and may have to get the well inspected.
Representing the Best in Real Estate
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The next step is to professionally inspect the house. Your real estate agent will probably recommend a few good inspectors for you to hire, but the final decision is yours. The purpose of the inspection is to: 1. 2.
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Inspect the major systems in the house (heating, roof, electrical, plumbing, structural) to discover serious problems Educate yourself about maintaining a home.
The inspection will take 1 to 4 hours and you should try to be present. The cost of the inspection is your responsibility. An inspection is NOT a warranty of anything and inspectors are not usually experts in any one area. If a major system in the home looks suspicious to the inspector, he may recommend further investigation on your part (e.g., a roof, electrical or furnace certification). It will be your decision to pay or not to pay for further inspections or certifications. After the inspection, you have the right to ask the seller to fix major problems. Sometimes (depending on your financing), you can ask for an allowance to fix something yourself. The seller can agree to your request, counter back or reject your request. As long as you are reasonable, the inspection process does not have to be a difficult negotiation. Try not to overwhelm the seller with a laundry list of minor repairs. REMEMBER, the purpose of the inspection is to identify serious problems. Leaky faucets, cracked tile, or ugly carpet are not items that should scare you away from purchasing a home, nor are they items that you should expect the seller to fix. Your real estate agent will help you through the inspection.
Representing the Best in Real Estate
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Your lender or title company may require some sort of Survey if you are purchasing real estate that includes land. Or maybe you would like a survey of the property. To find someone to do your survey ask your agent for some recommendations, but ultimately the choice is yours. There are may different types of surveys, you and your agent can discuss which is right for you. Here are a few common ones: –
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ALTA Survey or Extended Title Insurance Coverage Survey - A survey made for the purpose of supplying a title company and lender with survey and location data necessary for the issuing of title and/or mortgage insurance. A detailed map is required to be done to “ALTA” specifications. The acronym "ALTA" stands for American Land Title Association. Specifications of this type of Survey include (but are not limited to) determining property lines, location of improvements, identifying all easements, utilities and other conditions affecting the property. ALTA surveys are very comprehensive surveys and typically cost thousands of dollars and take weeks to complete. Any ALTA Land Survey must meet the "Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys" as adopted by the American Land Title Association, the American Congress on Surveying and Mapping, and the National Society of Professional Surveyors. The Alta Survey is most often performed on commercial properties. Topographic Survey - A Land Survey locating natural and man made features such as buildings, improvements, fences, elevations, land contours, trees, streams, etc. This type of survey may be required by a government agency, or may be used by Engineers and/or Architects for the design of improvements or developments on a site. Plot Plan Survey, (aka Site Plan Survey or Lot Survey) - A combination of boundary and topographic surveys for preparation of a site plan to be used for designing improvements or developments, and obtaining government building permits. Improvement Location Certificate (ILC) - Used to find encroachments onto and off of the subject property and to identify boundary problems regarding fences, structures, driveways, etc. It should provide the buyer with a scaled drawing which would depict these problems and any easements that might cross the property.
Representing the Best in Real Estate
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After the Inspection & Survey, the next hurdle is the appraisal of the home. The purpose of the appraisal is to prove to you and your lender that the house is worth what you have agreed to pay for it. Usually, the appraisal will indicate a value very close to the purchase price.
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In the event that the house “appraises” low, (e.g., you are under contract at $205,000 and the appraisal comes in at $195,000), the seller is in a sticky situation. The lender will only lend on the appraised value.
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There are three ways to resolve this problem: – the seller can agree to a reduced price, – the buyer (you) can pay the difference between the appraised value and purchase price (ugh!) – you can terminate the Contract to Buy & Sell Real Estate
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Your real estate agent will help advise you in this situation.
Representing the Best in Real Estate
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Usually at this point, all that’s left to worry about is loan approval for you. You should have been in frequent contact with your lender, who updates your real estate agent on the status of the approval.
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Loan approval means that you have provided all of the documentation required by the lender and that the lender is satisfied that you have the resources to purchase and make mortgage payments on your home.
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Take some time to review all of the loan documents, especially the HUD – a form required by law that outlines the terms of the loan and is a complete settlement statement that includes where every cent of your loan is going and to whom. It will also show you exactly how much you need to bring to closing. There may be a few revisions of the HUD that you will have to review.
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Your Lender and your Realtor will help answer any questions you may have.
Representing the Best in Real Estate
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It’s now time for “closing.” Closing is when ownership of the property changes hands and you become a homeowner. Closing protocol varies significantly around the country. You may actually meet the seller and sign your paperwork together, or you may sign separately. Either way, the actual closing is usually rather anti-climactic; you pretty much just sit at a table and sign dozens of documents. Because we have a lot of out of state buyers and sellers, many have the Closing Documents mailed to them several days before the closing date, then they sign & notarize and mail them back. Make sure you have any funds required at closing wired or available in the form of a cashiers check. The funds must be there upon closing or you could be in default. Final Walk-Thru – typically there’s a final walk thru with the buyers and their agent the morning of the closing date to make sure the home is in the condition you expect and sometimes to make sure all the furniture is in the unit that both parties agreed upon.
Possession • Depending on your contract with the seller, you will either get possession of your new home immediately after closing, a few days later, or if there’s a renter in the unit, after their rental agreement ends. Your real estate agent will help you transfer the utilities into your name.
Representing the Best in Real Estate
More knowledge. Better experience. When you choose Real Estate of Winter Park (REWP) you are working with a team of consistent top producers in the Winter Park market. No rookies here. Each of our Winter Park Real Estate Agents, broker/owners is a proven professional with at least nine years experience in the real estate industry. You can be confident knowing that you are receiving the expertise you need to make informed and successful decisions. Our team approach serves you better. Our unique broker/owner approach puts your needs first by eliminating the inter-office competition that is often present in traditional real estate companies. As you work one-on-one with your REWP agent, our entire team is standing by to support you every step of the way. Our tools give your more choices. We help you shop all Grand County property listings – not just the ones listed by our agents – through the Multiple Listing Service (MLS). Find desirable properties in the area with our user-friendly search system, then contact us for more information and a showing! Powerful marketing that gets results. With a combined 130+ years of success in the real estate industry, REWP brokers have the knowledge, experience, and CONTACTS to market your property more effectively. Whether we're reaching out to thousands of qualified leads in our company-wide database, highlighting your property on our vast marketing network, or featuring your property on our state-of-the-art website, our marketing program gets the results you want. We give back to the Winter Park community. We love Winter Park and Fraser Valley. As long-time residents of this area, our agents are committed to preserving Grand County as a great place to live and visit. Not only do we contribute extensively to the community as individuals; as a group we are active members and sponsors of many local organizations including the Grand County Blues Society, The Grand Foundation, The Shining Stars Foundation, and the Colorado Association of Realtors® Housing Opportunity Foundation (CARHOF).
Representing the Best in Real Estate