Danielle Martinez - Buyer's Guide

— The Complete Guide to —

Buying a Home

BY DANIELLE

MARTINEZ

About Danielle Martinez

EXPERIENCE/AWARDS

• 1997 – Earned Real Estate License

• 1998 – Lawyers Title Assistant to Escrow Officers

• 1999-2005 – Century 21

• 2005-2010, 2013-Present – RE/MAX Professionals

• 2008 – Completed Glendale University 101

• 2009 – Recipient of City of Glendale Spark Award for Neighborhood Leadership

• 2010-2012 – Arizona Residential Realty Listing Manager

• 2010 – Earned Certificate of Appreciation by the City of Glendale Police Department for serving as a Neighborhood Watch Captain

• 2010 – Earned Real Estate Broker’s License

• 2015-2018 – Served on the Arizona Association of REALTORS® Grievance Committee

AREAS OF EXPERTISE

• Team Lead – DM Home Team

• Seller’s Agent

• Buyer’s Agent

• Traditional Sales

• Short Sale

• REO / Foreclosure

• Investment / Second home

• New Agent Mentor and Trainer

• 2015, 2017, 2019, 2020, 2021, 2022, 2023 – West and Southwest REALTORS® of the Valley President’s Roundtable and Sales Award

• 2007, 2008, 2009, 2015 – RE/MAX Professionals Executive Club ($50k-$100k in commissions earned)

• 2014, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 – RE/MAX Professionals 100% Club ($100k+ in commissions earned)

• 2019 – Recipient of the Sergio Horcos Memorial Spirit of Service Award for Outstanding Citizenship & Community Service

• 2019 – Recipient of RE/MAX Hall of Fame ($1 million in gross commissions earned)

• 2023 – Graduate of the City of Glendale Citizen's Police Academy and Recipient of the "Drive It Like You Stole It" Award for Fastest Time on a Training Course in a Police Cruiser

DESIGNATIONS/CERTIFICATES

• ABR – Accredited Buyer Representative

• BAP – Buyer Agency Professional

• CDPE – Certified Distressed Property Expert

• CNE – Certified Negotiation Expert

• CRS – Certified Residential Specialist

• CSSN – Certified Short Sale Negotiator

• GRI – Graduate Real Estate Institute

• Residential Real Estate Divorce Specialist

Kind Words From Past Clients

“Danielle was so wonderful during the entire home buying process. She really made the extra effort to make sure we were happy from start to finish. She was knowledgeable, helpful, and understanding of our needs. I would highly recommend her to anyone looking to purchase a home!”

JOE AND JANA MATARAZZO

“Danielle Martinez is absolutely the most skilled and trustworthy Realtor we've ever worked with. She is very personable and knowledgeable and truly treated us like family. Yet she was very professional, especially with regard to dealing with negotiations and other Realtors. We were very enthusiastically referred to her through friends who had the same wonderful experience with Danielle. We will most certainly recommend her to our family and friends too.”

GAVIN AND VALERIE AHERN

“We wouldn’t want anyone else leading our home buying team! Danielle was there for all the ups and downs of our home buying process, and we couldn’t have done it without her. We started and stopped our home search many times, and she stuck with us through all our craziness. She is so caring and kind and genuinely wants the best for you and your family. We are so happy in our new home, and we could not be more grateful for her help throughout this process. We will always be customers and recommend her!”

GRIFFIN

AND KRISTEN ALEXANDER

1. Define Your Goals

2. Research Your Options

3. Make Your Plans

4. Select a REALTOR®

5. Get Pre-Approved

6. Look For a Property

7. Negotiate an Offer

8. Remove Contingencies

9. Prepare For Closing

10. Move In

Welcome to Buying a Home

The decision to buy a new home is an exciting one. My number one goal is to make your experience enjoyable as we search for your new home, prepare for the closing, and then celebrate Move-In Day.

Purchasing a home is a very important decision, possibly one of the most important financial decisions of your life. I would like to help you by providing honest, accurate information, so you can make informed decisions. This booklet will give you an idea of what to expect during each phase of your transaction and is also a useful reference guide even after the transaction is closed.

The Home Buying Process

THE FIRST STEP

FIND A REALTOR ® YOU CAN TRUST

LOAN PRE-APPROVAL

THE HOME SEARCH

YOUR OFFER

THE CONTRACT

INSPECTIONS

Find an experienced REALTOR® who you can trust, then sign a Buyer Broker Agreement. This guarantees, by Arizona state statute, that your needs are met professionally and represented throughout the entire process of buying your home.

GETTING PRE-QUALIFIED

Knowing what you can afford prior to the home search allows you to plan accordingly and avoid disappointment.

Look at homes that meet your wants and needs. I am available to help you find your dream home.

THIS IS A BIG STEP

When you find your dream home, you should present a competitive offer immediately. My extensive experience in contract negotiations will help get you a fair market price — a transaction in your best interest.

When the seller accepts your offer, you go Under Contract. I will make sure every detail is handled accurately and immediately so that your home closes properly and on time.

THE HOME STRETCH

Final details are handled and inspections are performed to ensure the property is perfect for you. Contract details are further negotiated, and we head to closing!

The loan is processed and approved.

NOW IT'S YOURS

Bring your cashier’s check to Closing — the next steps you take will be over the threshold of your new home!

Define Your Goals 1

DETERMINE WHY YOU ARE BUYING A HOME

Is it a permanent place for you and your family, an investment, or a second home? Whatever the reason, it is important that you buy with an eye on the resale investment potential.

Why has buying a home also become such an investment opportunity?

• Over the last 25 years, the average price of a home has risen substantially.

• Land has become a decreasing resource, especially in and around major city and cultural hubs, which has created the demand.

• Housing is typically considered to be a stable investment, offering a good rate of return.

• Low interest rates over the last 10 years have made mortgages affordable.

• Money that pays a mortgage turns into equity that can be used to finance other opportunities.

• Demographics and immigration have always been major factors in influencing investment opportunities.

• It is not always necessary to sell your home just because you are moving; depending on the equity created, it may be possible to offset the remaining mortgage by renting out the property.

Investing your time to understand your local market and its influences could pay large dividends.

Research Your Options 2

DETERMINE WHAT YOU CAN AFFORD AND WHERE

Buying and financing a home are closely related, so it is very important to review your current financial situation to understand how much you can afford.

There are three key components that determine the start of all searches:

• LOCATION – Where do you want to live?

• TYPE – What type of home do you want?

• PRICE – What can you afford?

Only you can determine the importance of each. Once you start to research your options, you will soon know if your expectations are realistic.

LOCATION, LOCATION, LOCATION

Why does location matter so much? For starters, you can’t move a home — at least not easily or inexpensively. When you buy a home in a good location, it is usually a solid long-term investment.

Perhaps more than ever, location is the key factor in driving price increases. In a strong housing market, homes in particularly desirable areas are more likely to see above average price increases. In weak housing markets, these homes tend to retain their value better.

Choosing the Right Neighborhood

Neighborhoods have different characteristics designed to best suit single people, growing families, two-career couples, or retirees. Do some research to determine if a neighborhood is a match for your lifestyle and personality.

SCOUT THE NEIGHBORHOOD – IN PERSON!

Talk to people who live there. Drive through the entire area at different times of the day: morning, afternoon, evening, and late at night, as well as during the week and on weekends. Look carefully at how well other homes in the area are being maintained; are they painted, are the yards well cared for, are parked cars in good condition, etc.

NEIGHBORHOOD FACTORS TO CONSIDER

• Access to major thoroughfares, highways, and shopping

• Traffic patterns around the area during different times of the day and commute to work

• Noise created by commerce, roads, railways, public areas, schools, etc.

• Smells in the air related to nearby commerce or agriculture.

• Research soil and water

• Proximity to parks, churches, recreation centers, shopping, theaters, restaurants, public transportation, schools, etc.

• Does the neighborhood belong to a Homeowner’s Association (HOA)? HOA's generally have a monthly or annual fee

Make Your Plans 3

After answering the following questions, you will be in a great position to research your housing and mortgage options as well as create the appropriate action plan and timeline for moving forward.

SET YOUR PRIORITIES

• What do you want from a home?

• What does your family want from a home?

• Do you want a turnkey home, or would you prefer to renovate?

• What are your top five ‘must-haves?’

• What are your top five ‘would-likes?'

• Are you pre-approved for a mortgage?

• What can you afford on a monthly basis?

• When is the ideal time to move?

Select A REALTOR ® 4

WHY CHOOSE DANIELLE AS YOUR REALTOR?

I am a member of the National Association of REALTORS® (NAR) and must abide by a Code of Ethics and Standards of Practice enforced by the NAR. As a professional REALTOR®, I am your best resource when buying a home.

• I will provide you with stellar customer service during the entire process, which includes taking the time to understand your wants, needs, and expectations, promptly return your calls and emails, and being honest with you at all times.

• I know the housing market inside and out and can help you avoid many “wild goose chases.”

• I can help you with any house, even if it is listed elsewhere or is for sale by owner.

• I know the best lenders in the area. I can help you get pre-qualified for a mortgage, discuss down payments, closing costs, and monthly payment options.

• I am an excellent source for information about the community, schools, churches, shopping, transportation, plus tips on the house inspection and pricing.

• I am experienced at presenting your offer to the seller's agent and can help you through the process of negotiating the best deal. I bring objectivity to the buying transaction and can point out advantages and disadvantages of a particular property.

• Working with me will save you endless amounts of time, money, and frustration.

The BEST thing is that you get access to my 27+ years of experience and knowledge. It does make a difference in who you hire to not only represent you, but protect your interests and fight for you. Inexperienced agents can cost you the home of your dreams, thousands of dollars, and many headaches along the way. I promise to give you 100% of my time and energy and make your home buying process a truly enjoyable experience.

The Benefits of a Buyer Broker Agreement

When you sign the agreement, you are simply agreeing to hire a personal representative who, by law, must represent your best interests to the best of his/her ability. Compensation to a Buyer Broker is negotiated between you and your agent, and can be paid out of pocket by you or through concessions offered by the seller.

YOUR INTERESTS ARE PROFESSIONALLY REPRESENTED

Enlisting the services of a professional Buyer Broker is similar to using an accountant to help you with your taxes or a doctor to consult for your health. If you had the time to devote to learning all you need to know about accounting or medicine, you could do these services yourself. But who has the time?

YOU WILL GET A GREAT HOME QUICKLY AND CONVENIENTLY

The advantage to signing a Buyer Broker Agreement is that you will have a professional working to find and secure the perfect home for you when you need it. It is nearly impossible to find a home that meets your needs, get a contract negotiated, and close the transaction without an experienced agent. When you tour homes with your Buyer Broker, you will know that the homes already meet your criteria and price range.

YOU GET A PERSONAL SPECIALIST WHO KNOWS YOUR NEEDS

Your Buyer Broker gets to know your real estate needs and concerns through a relationship built on open communication. By touring homes with them, they get a good idea of your feedback and concerns about each home.

105 Ways

Agents

Who

are REALTORS ® are

Worth Every Penny of Their Compensation

Here’s a look at all the things, big and small — that a REALTOR® may do to help clients when buying a home.

COUNSELING SESSION ACTIVITIES

1. Prepare the buyer for executing a buyer representation agreement

2. Explain agency relationships to the buyer and get state required legal consent to represent, if needed

3. Inform the buyer of working relationship based on state law, the REALTORS® Code of Ethics, and the broker’s business policies

BUILDING A RELATIONSHIP

4. Learn the buyer’s wants and non-negotiable needs

5. Understand the buyer’s budget and what will be needed financially

6. Help the buyer understand what property their chosen budget will buy

7. Have the buyer fill out a homebuyer’s checklist

8. Assist the buyer in examining how much they can afford to spend

9. Provide quality lender resources

10. Partner with the buyer to locate suitable properties for consideration

11. Match the buyer’s needs with available property

12. Constantly re-evaluate buyer’s needs and refocus property showings to fit those needs

13. After ensuring the buyer understands what is done for them, how it is done, and the benefit to them, obtain signatures on the buyer representation agreement

14. Explain how compensation is paid, who pays it, and what the buyer’s options are for paying it

EDUCATING THE BUYER

15. Communicate the working relationship based on state law, the REALTORS® Code of Ethics, and the broker’s business policies

16. Explain Federal and State Fair Housing laws

17. Explain what to look for in applicable property disclosures

18. Reassure the buyer that their personal information will remain confidential

19. Inform the buyer that you will always disclose all known material defects

20. In accordance with state law, provide information on checking the sex-offender registry and crime statistics for the neighborhood

21. Discuss available resources that the buyer can check to learn more about prospective neighborhoods

PREPARING THE BUYER

22. Explain the timeline for house hunting, mortgage approval, and closing

23. Explain the local market and how it impacts the buyer

24. Show statistics on what percentage of list price sellers in the area are currently receiving

25. Inform the buyer on what home features are popular

26. Identify current average days on market

27. Share the dangers of using the price per square foot to figure home values

28. Explain the concept of absorption rate and how it impacts the buying process

29. Indicate current listing months of market inventory

30. Share estimated potential out-of-pocket costs to complete the transaction

31. Assist the buyer in analyzing the loan estimates

32. Qualify the buyer for financial ability to purchase

33. Help the buyer account for the complete costs of homeownership

34. Prepare lender for listing agent calls

35. Assist in comparing different financing options

36. Help the buyer select only those homes that fit their needs for viewing

37. Show homes that fit the buyer’s must-haves

38. Caution the buyer on posting information to social media

39. Review the sample sales contract so the buyer is prepared when it comes time to make an offer

SHOWING PROPERTIES

40. Schedule showings and provide access to all listed properties as soon as they become available in their local MLS broker marketplaces

41. Educate the buyer on the immediacy of new listings appearing in their local MLS broker marketplaces and the lag time for them to appear on some websites

42. Collaborate with the buyer on properties they may have learned about through their sphere contacts

43. Research and assist on all unlisted properties the buyer wishes to see

44. Preview properties prior to showing if needed

45. Network with other agents to source properties not yet in their local MLS broker marketplaces

46. Contact homeowners in focus areas to see if they are considering selling

47. Set up an automated email alert system through their local MLS broker marketplaces that immediately notifies the buyer of properties that fit discussed requirements

48. Arrange a tour of areas, schools, and points of interest

49. Provide resources containing neighborhood information on municipal services, schools, etc.

50. Inform the buyer of negative aspects nearby that may result in issues that could impact value

51. Collect and share any other vital information on available homes, remembering to follow all fair housing laws at all times

52. Check applicable zoning and building restrictions

53. Help the buyer decipher public property and tax information

54. Collect and share pertinent data on values, taxes, utility costs, etc.

55. Compare each property shown to the buyer’s wants and needs list and remind them of what they were looking for

56. Help the buyer narrow the search until the buyer identifies top choices

NEGOTIATING OFFERS

57. Assist the buyer in getting the best property at the best price

58. Suggest that the buyer learn more about the neighborhood prior to making an offer

59. Prepare a comparative market analysis (CMA) in advance of making an offer

60. Prepare the buyer to have the most attractive offer in the current marketplace

61. Explain common contract contingencies and include approved protective clauses in the purchase offer

62. Ensure that the buyer receives and understands all state and federally required disclosure forms

63. Prioritize contract negotiation goals with the buyer

64. Help create a negotiating strategy

65. Use strategies such as an escalation clause to maintain a competitive offer

66. Prepare the buyer for a multiple offer situation and develop negotiation strategies

67. Write an offer that has a reasonable chance of being accepted

68. Recommend optional contingencies and explain the pros and cons of using them

69. Provide information on purchasing incentives that may be available

70. Discuss financing alternatives

71. Negotiate the buyer’s offers to arrive at the best price and terms

72. Utilize hyper-local expertise and strong communication skills to assist the buyer in being the successful offer

ADVOCATING FOR THE BUYER AND FACILITATING THE CLOSE

73. Advocate for the buyer throughout the entire process

74. Encourage the buyer to fully investigate their options in terms of a home inspector, title company, appraiser, mortgage lender, and other services

75. Present a list of the types of required and optional inspections such as environmental, roofing, and mold

76. Review and discuss home inspection concerns

77. Negotiate repair requests from home inspection

78. Guide the buyer on meeting all contract deadlines

79. Assist in coordinating communications

80. Advise the buyer to review the settlement statement

81. Inform clients that they need to transfer utilities to the new residence

82. Schedule final walk through

83. Accompany the buyer on the walk through

84. Assist the buyer in questioning the appraisal report if it affects the financing

85. Confirm clear-to-close with the lender

86. Ensure all parties have all forms and information needed to close the sale

87. Let the buyer know where the closing will be held

88. Confirm the closing date and time, and notify parties if there are changes

89. Gather all required forms and documents for closing

90. Explain flood insurance to the buyer

91. Explain title insurance to the buyer and refer to qualified insurance broker

92. Order any surveys needed

93. Order the appraisal

94. Order the title search

95. Confirm the status of the loan funding

96. Check addendums and alterations for agreed terms

97. Review the buyer’s closing statement for accuracy

98. Explain wire fraud risks and remind clients to verify all wiring instructions before transferring funds

99. Double-check all tax, homeowners’ association dues, utility, and applicable prorations, if relevant

100. Request final closing figures from the closing agent (often an attorney or title company)

101. Receive and review closing figures to ensure accuracy

102. Receive and carefully review title insurance commitment with the buyer

103. Advise the buyer to re-key their locks and to consider a one-time cleaning service or landscaping before moving day

104. Review documents with the closing agent (attorney)

105. Support the buyer in any final closing activities

Get Pre-Approved 5

No matter your prior experience, circumstance, or reason for buying, it is always in your best interest to be pre-qualified for a loan before starting to search for a home. The current rates, approval, and unexpected challenges should be addressed before you have a serious intention of buying.

The pre-approval process involves meeting with a lender and authorizing them to examine your current financial situation and credit history, which results in the amount and rate that you will be able to borrow.

BENEFITS OF PRE-QUALIFICATION

• Knowing what you can afford enables you to plan accordingly – it allows you to understand how much you will be lent and how much you can actually afford to pay each month.

• As a qualified buyer, you will be taken more seriously when you make an offer on a home.

• You are able to take the time to understand the short and long-term implications, allowing you to make informed decisions and research your options.

Predicting Your Monthly Payment

PRINCIPAL AND INTEREST

For a simple calculator to determine the principal and interest on your loan, visit my website, www.DanielleMHomes.com. If you are considering an FHA loan, it is recommended you consult with your loan officer, as rates vary and are subject to change.

PROPERTY TAX

All property owners must pay general real estate taxes. These taxes are also called ad valorem taxes because the amount of the tax varies, according to the value of your property. General real estate is levied for the operations of various governmental agencies and municipalities. Other taxing bodies may include school districts, drainage, water, sanitary, and recreation districts.

*Property tax rates vary widely across the metro area and can also vary significantly within each individual city. Please ask me for actual tax rates when considering a specific neighborhood.

INSURANCE

Hazard Insurance covering your home for its value is required by your mortgage lender. You are at liberty to choose any insurance company and agent you wish. Ask your agent for an insurance coverage quote.

HOME OWNERS ASSOCIATION (HOA)

Consider the monthly cost of the HOA. Depending on the level of service offered, the HOA monthly rates can range from $50 to several hundred dollars per month.

What to Expect When Completing a Purchase

MORTGAGE INSURANCE AND FEES

• A fee for running your credit report

• Loan Origination fee – charge for processing the loan paperwork

• Appraisal Fee

• Underwriting Fee – cost of evaluating a mortgage loan application

• Survey Fee – covers the cost of verifying property lines

ADDITIONAL COSTS

• Recording Fee – 'paid to the county in exchange for recording the new land records

• Escrow Deposit – may pay for a few months’ property taxes and Private Mortgage Insurance (PMI)

• Buyer Broker Compensation

TITLE FEES

• Title Insurance – insurance policy protecting lenders and homeowners against legal problems with the title

• Title Search – a historical review of all legal documents relating to ownership of a property to determine if there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property

• Escrow Fees

• Notary Fees

INSPECTION FEES

• Home Inspection Fee

• Structural Inspection Fee

• Termite Inspection Fee

• Home Warranty

7 Steps to the Loan Process

1. APPLICATION AND INTERVIEW

• Types of mortgages are reviewed in line with your requirements

• Interest rates and terms are discussed

• Credit report is requested

• Personal information is verified

2. APPRAISAL

• Lender orders an Appraisal on the home

• The Appraisal is completed and submitted for review

• Negotiations with the seller continue if the appraised value is less than the contract price or there are lender-required repairs found

3. UNDERWRITING

• The mortgage package is submitted to an underwriter for approval

4. TITLE COMPANY

• Title is examined

• Title insurance and survey are conducted

5. LOAN APPROVAL

• Parties are notified of the approval

• Loan documents are completed and sent to the Title Company

• Borrowers to sign documentation

6. FUNDING

• Lender reviews the loan package

• Funds are transferred

7. RECORDING

• Once loan funds are received by the Title Company, the Deed to transfer title is recorded

• The sale is officially “closed” and you are now the new homeowner!

Look For A Property 6

THE INTERNET

95% of all buyers use the internet to start their search for homes — typically taking an average of 12 weeks to research the possibilities they believe their budget can match.

PRINT MEDIA

Magazines and printed publications still provide a platform that features homes. Not every home is listed on the internet, and sometimes your search can miss that hidden gem, because it is not online.

PROPERTY VISITS

Visit open houses and new home developments; you can learn a lot by seeing what is on the market.

YOUR REALTOR ®

When you work with me, I will assist you with narrowing your search by reviewing your ‘must-haves’ and ‘would-likes’ — making recommendations based on my experience and local knowledge. I have access to:

• Previewing new properties at REALTOR® open houses.

• Technology that automatically sends you new home matches immediately — so you never miss a new listing.

• Working within my network to find new properties not even listed yet.

• Every home in your preferred community, including “for sale by owner,” discounted brokerages, expired listings, and homes not actually on the market but that may suit your wants and needs.

• Emailing specific home requirements to agents in the area, so they know that you are a qualified purchaser.

Building a House Hunting Checklist

In the hunt for a perfect home, it’s easy to forget the important priorities when you see a stunning feature or are overwhelmed by all the choices and homes you have visited. Use this checklist to help you stay organized and focused on the important criteria during your search.

• Make a comparison chart for when you start viewing:

F Overall size

F Positioning of the living spaces

F General size of rooms

F Kitchen style and appliances

F Bedrooms

F Bathrooms

F En-suites

F Garage space(s)

F Backyard

F Landscaping

F Condition of roof/exterior

F Storage space

F Natural light

• Do you feel an emotional connection to the home?

• How long has the house been on the market?

F Is it priced to sell?

F Compare its price to others sold on the market

F What is the resale potential?

• Take a tour of the home and do a second walk-through without emotion. Become the inspector and look beyond the surface:

F Will your furniture fit?

F Floor plans are a great way to see the flow and how changes can be made. Not available? Measure and draw your own.

F Check out the true storage space — open cupboards, doors, attics, basements, and storage cabinets.

F Lift up rugs and investigate for damage on the floor, under furniture, in the back of cupboards, etc. Look at every detail from floor to ceiling, including window trims, under sinks, bathroom tiles, etc.

F Look outside — understand the landscaping and the layout of nearby homes, traffic, parking, noise, etc.

F View the property at different times of the day.

F Take a moment to envision how you would use the space — does it fit your every day needs?

F Who are your neighbors?

Negotiate An Offer 7

When you have found the right home, it is time to prepare and draft an offer of purchase. This offer protects and represents your interests, while remaining legally binding on final acceptance. There are many components to an offer, and I will explain the entire process so that you are comfortable with the steps involved.

An offer can be drafted with or without conditions; an offer without conditions is known as a firm or subject-free offer, and one with conditions is known as a conditional offer and, in effect, protects one party with the placement of certain conditions on the purchase.

POINTS TO CONSIDER IN YOUR NEGOTIATIONS:

• The condition of the home

• Length of time it’s been on the market

• Buyer activity

• Location

• Urgency of the seller

The seller may accept your initial offer, reject your offer, or present a counter offer. The counter offer may differ from your original offer with respect to price, conditions, the closing date, or any other items. Offers can be countered back and forth between the parties until one of you accepts or rejects, ending the negotiations altogether.

Typical Conditions to Include

FINANCIAL TERMS

• Mortgage approval

• Seller pays a fixed percentage or dollar fee towards closing costs

• Seller pays towards specific closing fees (Title Search)

HOME INSPECTION

• Full access and inspection by a certified inspector

• Electrical, plumbing, HVAC, roofing, and structural components should all be investigated thoroughly

• Costs paid by seller for any repairs over a specific amount

• Certain repairs to be completed and approved before purchase

CLOSING DATE

• Typically dated to give you and the seller the time required to complete the purchase transaction

• Related to the sale of your present property or the remaining term of your rental lease

• Subject to the seller’s flexibility to move

HOME INSURANCE

• Most mortgage companies require this prior to approval

TITLE SEARCH

• Ensure that the Property Title is in the name of the seller or seller's trust

• Free from any claims against it, either liens or ownership

• Is there any ‘right of use’ on the property

Choosing a Good Inspection Company

IS AN INSPECTION NECESSARY?

You have the right to request an inspection of any property you are thinking of purchasing by a professional inspector of your choice. Many of the more severe and expensive problems (mechanical, electrical, structural, and plumbing) are not noticeable to the untrained eye. If repairs are needed, we can negotiate these in your contract offer. A professionally conducted home inspection followed by a written evaluation is becoming standard procedure in home buying because of increased buyer awareness.

ARE INSPECTORS LICENSED?

Inspectors are not required to be licensed in Arizona. However, many are members of the American Society of Home Inspectors (ASHI) and adhere to their Standards of Practice. You should always hire an experienced inspector with an affiliation to ASHI — if you are unsure where to look, I can provide inspector recommendations.

WHAT DOES AN INSPECTION ENTAIL?

The process consists of a physical inspection of the home with the purchaser present, followed by a written report detailing the findings. They report on the general condition of the home’s electrical, heating, and air systems, interior plumbing, roof, visible insulation, walls, ceilings, floors, windows, doors, foundation, and visible structure. It is intended to report on major damage or serious problems that require immediate repair for the well-being of the home, and that might require a significant expense.

Remove Contingencies

Once both parties accept the sales contract and its contingencies, they will start to work towards removing these conditions and set a specific time frame to do so.

I will advise you on what contingencies you can remove, based on the results, once the appropriate due diligence has been completed. Ideally, both parties should have been able to negotiate a reasonable time to remove these conditions.

It is important to understand the options available to you should one of your conditions not be removable prior to the contract date. This does not automatically mean that the ‘deal is dead’ — my experience and negotiation skills and ability to work with the seller’s agent to find a solution are key. Equally, conditions that the seller needs to address can also be provided with extensions — this is particularly important if a problem is found during the home inspection.

Once all contract contingencies are removed. It’s time to prepare for the CLOSING!

Prepare For Closing 9

After all the contingencies have been removed, it becomes the responsibility of the financial institutions to prepare all the necessary paperwork. I will contact you if there are any issues at this stage.

Closing day marks the end of your home buying process. The following items should be brought to the signing appointment:

• A Cashier’s Check for closing costs and down payment — make the check payable to the title company

• Photo ID

• Social Security number

• If you prefer to wire your closing funds, the Title Company will make arrangements with your banking institution to have that done prior to closing.

At your signing appointment, you will sign all your legal documents, including paperwork relating to your mortgage and the transfer of ownership of the property. A title company representative typically facilitates the closing, ensuring all documents are properly signed and executed and all funds dispersed. If you are obtaining a loan, your loan documents will be sent back to your lender for final review and then they will fund the loan. When all the funds have been received by the Title Company, they will record the sale (i.e. transfer of title). This is considered the official “closing.”

When this is completed, we will make arrangements for you to get the keys to the property. You will also receive a copy of the documentation that relates to the property, including a statement of costs, a statement outlining your mortgage terms, your mortgage note, and a copy of your deed of trust.

TIP:

Be available for a walk-through prior to closing to ensure the home is in the condition per the contract agreement and all inspection repairs are completed.

Move In 10

Moving into a new home is an exciting time, but it can also be stressful. Whether you are doing it yourself, asking friends for a little help, or hiring professionals, this moving guide will provide you some great insight.

SEND OUT CHANGE OF ADDRESS NOTICES

The post office will forward your mail for 30 days; however, they do expect that you are sending notices to everyone who sends you mail. Be sure to notify:

• Post office

• Friends and relatives

• Magazine and mail order subscriptions

• Professional organizations

• Clubs, social or civic organizations with mailings

• Charge accounts, insurance carriers, and creditors

• Department of Motor Vehicles

• Voter Registration officials

DON’T FORGET YOUR FURRY FRIENDS

Don't transport your pets farther than they've safely traveled in the past without consulting your veterinarian. To transport animals by air, you need an airline-approved animal carrier. A moving company can inform you of any state regulations for pet entry, vaccination, or quarantine procedures. Ask about regulations, licenses, tags, etc. Don't forget to obtain a copy of your pet’s medical records.

TRANSFER OR CANCEL HOME SERVICES

• Electricity

• Gas

• Telephone

• Cable/Internet

• Trash

• Amazon and all other eCommerce providers

• Newspaper

• Cleaning Service

• Landscaping Service

KEEP DETAILED RECORDS

Keep records of all expenses if your move is job related. Many expenses, including house hunting trips, are tax deductible. If your move is 35 miles or more, you can deduct your family’s travel expenses, the cost of transporting furniture, household goods and personal belongings, food, and hotel bills for up to 30 days in the new city if you have to wait to move into your new home, and the costs associated with selling your old home or leasing your new home.

LONG DISTANCE MOVES

Ask your bank about electronically transferring your funds to a bank in your new location. Discuss branch options, and arrange for check cashing in your new area. Be sure to close out your safety deposit box.

Upon Closing

• Ask your insurance agent to transfer coverage to your new home. Make sure all coverage (life, health, automobile, personal belongings, etc.) is in force while you are en route.

• Schedule a moving company to assist you, or begin notifying people who are helping you of your planned move date.

• Start depleting your store of canned and frozen foods. Defrost your freezer, and use charcoal to dispel odors.

On Moving Day

• Carry enough cash or traveler’s checks to cover the cost of moving services and expenses until you make banking connections in the new city.

• Carry jewelry and documents yourself, or use registered mail.

• Check closets, drawers, and shelves to be sure they are empty.

• Leave all old keys needed by the new tenant or owner with your REALTOR® or a neighbor.

• Have your new address recorded on your driver’s license/apply for state driver’s license (if applicable).

• Register your car within five days after arrival in a new state, or a penalty may have to paid when getting new license plates.

• Register children in school.

• Arrange for medical services: doctor, dentist, etc.

WHEN

Frequently Asked Questions

IS THE BEST TIME TO BUY?

When you find the right home. Don’t wait for perfect conditions to buy — they don’t exist.

WHEN IS THE BEST TIME TO GET A MORTGAGE?

Get pre-qualified before you start searching — this will help immensely and prevent disappointment.

HOW DO I CHOOSE A REALTOR ® ?

Think of the process as equivalent to giving a job interview — do they know your local market, price points, and types of homes? Ask for references!

HOW DO I FIND THE PERFECT HOME?

Prioritizing and compromising are necessary elements. Compile a list of ‘must-haves’ and then a list of ‘would-likes’ — you will never find the right home otherwise.

HOW DO I KNOW WHEN IT’S RIGHT TO PRESENT AN OFFER?

Don’t be afraid to write an offer — there is no commitment until all contingencies have been removed. However, don’t write an unrealistic offer. Offer what the property is worth to you; otherwise, you may be helping someone else’s offer look good!

WHOSE OPINION SHOULD I TRUST WHEN BUYING A HOME?

Trust personal instinct and trusted advisors. Do what feels right — too much stress indicates it’s time to walk away.

Home Buyer’s Glossary

When buying a home, it’s important to understand some of the key concepts and terms. Throughout the purchase process, I will be available to explain any unfamiliar terms you encounter. That said, here is a short list of terms you’ll want to know:

Adjustable Rate Mortgage (ARM) – Also known as a variable-rate loan, an ARM is one in which the interest rate changes over time.

Amortization – The process of reducing the principal debt through a schedule of fixed payments at regular intervals of time, with an interest rate specified in a loan document.

Appraisal – An appraiser’s estimate of the market value of a property based on local market data and the recent sale prices of similar properties.

Assessed Value – The value placed on a home by municipal assessors for the purposes of determining property taxes.

Closing – The final steps in the transfer of property ownership. On the Closing Date, as specified by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the final disbursements are paid. Also referred to as the Settlement.

Closing Costs – The costs to complete a real estate transaction in addition to the price of the home; may include: points, taxes, title insurance, appraisal fees and legal fees.

Closing Date – This is usually the date that the legal ownership of the property transfers from the seller to the buyer.

Conditions or "Subjects" – Items that are usually put in place to protect a party’s interests upon selling or buying the property and refer to

things that must occur or be in place before the sale closes. Some of these conditions could be “subject to financing approval,” “subject to the buyer’s house selling,” “subject to seller finding suitable housing,” etc.

Contingency – A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding.

Counter Offer – An offer made in response to a previous offer that rejects all or part of it, while enabling negotiations to continue towards a mutually-acceptable sales contract.

Conventional Mortgage – One that is not insured or guaranteed by the federal government.

Debt-to-Income Ratio – A ratio that measures total debt burden. It is calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income.

Disclosures – Disclosure statements, which can come in a variety of forms, are the buyer’s opportunity to learn as much as they can about the property. Seller disclosures provide knowledge of issues with the home. They serve to inform buyers, and they can protect the sellers from future legal action. It is the seller’s chance to lay out anything that can negatively affect the value, usefulness, or enjoyment of the property.

Down Payment – The money paid by the buyer to the lender at the time of the closing. The amount

is the difference between the sales price and the mortgage loan. Requirements vary by loan type. Down payments less than 20% usually require mortgage insurance.

Earnest Money – The amount of money provided from the buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. Your agent can assist you in proposing a certain and appropriate amount for the deposit.

Easements – Legal right of access to use a property by individuals or groups for specific purposes. Easements may affect property values and are sometimes part of the deed.

Equity – The value of the property, less the loan balance and any outstanding liens or other debts against the property.

Escrow – Funds held by a neutral third party (the escrow agent) until conditions of a contract are met and the funds can be paid out. Escrow accounts are also used by loan services to pay property taxes and homeowners insurance.

Fixed-Rate Mortgage – A type of mortgage loan in which the interest rate does not change during the entire term of the loan.

Home Inspection – Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc.

Home Warranty - Service contract that covers the repair or replacement of home system components and appliances that break down.

Homeowners Insurance – A policy that protects you and the lender from natural disasters and liabilities such as a visitor injury or damage to your personal property.

Inclusions and Exclusions – Specifications within the offer that detail the items to be included or excluded from the purchase of the property. Typical inclusions are appliances, window coverings, fixtures, and decorative pieces.

Lien – A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the Title to your property if you don’t make the mortgage payments.

Market Value – The amount a buyer would pay a seller for a home. An appraised value is an estimate of the current fair market value.

Mortgage Insurance – Purchased by the buyer to protect the lender in the event of default (typically for loans with less than 20% down). Available through a government agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI).

Possession Date – The date, as specified by the sales agreement, that the buyer can move into the property. Generally, it occurs within a couple days of the Closing Date.

Post Closing Occupancy Agreement – An agreement allowing a seller to continue to live in his home after settlement, under an arrangement where the seller is essentially renting the home back from the new purchaser.

Pre-Approval Letter – A letter from a mortgage lender indicating that a buyer qualifies for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer.

Principal – The amount of money borrowed from a lender to buy a home, or the amount of the loan that has not yet been repaid. Does not include the interest paid to borrow.

Purchase Contract – Also known as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller and buyer agree to transact under certain terms spelled out in writing and signed by both parties.

Purchase Price – The amount that the buyer is offering to pay for the property, usually dependent on market conditions and may differ from the seller’s current asking price. There is no “normal” amount or percentage that a price will differ from its asking price as the final price will be determined by many factors, including the seller’s motivation and how close the asking price is to actual “market value.”

Terms – An offer includes certain “terms,” which specify the total price offered and how the

financing will be arranged, such as if you will arrange your own with a financial institution or mortgage broker.

Title – The right to, and the ownership of, property. A Title or Deed is sometimes used as proof of ownership of land. Clear title refers to a title that has no legal defects.

Title Insurance – Insurance policy that guarantees the accuracy of the title search and protects lenders and homeowners against legal problems with the title.

Truth-In-Lending Act (TILA) – Federal law that requires disclosure of a Truth-In-Lending statement for consumer loans. The statement includes a summary of the total cost of credit.

Title Search – A historical review of all legal documents relating to ownership of a property to determine if there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property.

Thank you for considering me to help you with your home purchase. I know you have options to work with other REALTORS® and I appreciate the opportunity to earn your trust. Whether this is your first home, your move-up home, or your retirement home, I am excited to be on this journey with you. My favorite part of being a REALTOR® is building relationships that last over time. Even after you unpack your last box, you can feel confident in knowing that you have an advocate and valuable resource in your corner. Thank you again for your business!