YOUR EXCLUSIVE GUIDE TO


BUYING A LUXURY HOME


JOHN GRANDT
RENE | LICENSE #FA100074635
720.351.8488
MEET JOHN GRANDT | REF REALTY As a luxury expert in the Denver metro area, John Grandt, a Luxury Property Specialist with Coldwell Banker Global Luxury offers a wealth of knowledge and expertise that is unsurpassed; you can always trust his service and commitment to you.
John Grandt has served his clients since stepping off the ice as a Linesmen in the National Hockey League. Many of the skills he developed as a professional referee have translated to the real estate world including attention to detail, hard work, empathy and a strong foundation. These critical skills he brings to the real estate industry make a difference in outcomes and help clients get the results they expect. As a Denver native, he offers a keen insight into the rapidly changing real estate market. His expertise and high-level negotiation skills are why his clients are excited to refer his services to to their family, friends and colleagues. He is a Broker Associate, Coldwell Banker Global Luxury Property Specialist, Certified Luxury Home Marketing Specialist and Certified Real Estate Negotiation Expert.
John lives in Broomfield where he is currently an active member of the community. He frequently hosts educational seminars to teach residents how to maintain and increase the value of their homes.
• • • • •
Coldwell Banker Global Luxury Property Specialist
Certified Luxury Home Marketing Specialist
Certified Real Estate Negotiation Expert
Colorado Native
Former Linesmen with the National Hockey League
CONTENTS Introduction
1
Our Commitment To You
3
Understanding Your Requirements
4
Researching Your Options
7
Custom Build Or Resale?
8
Get Pre-Approved
11
Look For A Property
12
The Evaluation Process
15
Presenting Your Offer
16
Remove Contingencies
19
Prepare For Closing
20
Move In
23
Frequently Asked Questions
25
A Home Buyers Glossary
26
Your Guide To Buying A Home In The Luxury Market Purchasing a luxury home requires sophisticated representation, including but not limited to, experience, market knowledge, professionalism, dedicated service and most importantly, the ability to discern and negotiate the right property on behalf of your client. My exclusive guide is intended to provide a tangible resource in the process of buying a luxury home. My guarantee is to commit to the utmost discretion and provide personal concierge services throughout the process of finding your new property.
MY COMMITMENT TO YOU It is important to work with a Realtor who are not only committed to working with you, but who are also dedicated to finding you the RIGHT home. Your Realtor should be someone you trust and who is protective of your interests. As your Realtor, this is my commitment to you.
CONCIERGE To focus on your specific needs and take care of all the small details, so you don’t have to.
RESPONSIBILITIES To educate you about the professional responsibilities, including disclosure, loyalty, confidentiality, compliance and accountability.
UNDERSTANDING YOUR REQUIREMENTS To take the time to understand your requirements location, property type, purpose, your must haves, local amenities - even if your goals change.
RESEARCHING THE MARKET To provide a sophisticated home search that will assist you with previewing homes and to keep you informed as new homes come on the market.
VIEWING AND ASSESSING HOMES To view homes with you, provide a comparative analysis, and work with experts who can provide an indepth analysis and advice.
CONSULTATION AND NEGOTIATION To provide full service consultation, together with expert negotiation on pricing and terms, with management of all documentation
CLOSING To keep you fully informed about all activities that lead to the transaction closing.
DISCRETION To always keep your interests and privacy secure, so you know that you are working with someone with the utmost discretion.
UNDERSTANDING YOUR REQUIREMENTS Establishing Your Preferences And Expectations Traditionally, people purchase a property as a main residence. Understanding that your reason for buying a home may be dierent, it is important that I know your exact goals, along with your preferences and expectations.
PURPOSE What will be the homes primary purpose? Vacation home, a home closer to work?
LOCATION Are you looking at a specific area? City, rural, gated community, convenient location, privacy?
TYPE Is there a specific type of home that you are looking for? House, condo, lots of land, no land?
LIFESTYLE What is the lifestyle you are looking to lead and how can I help you achieve it?
RESEARCHING YOUR OPTIONS Market Value vs. Market Price As your real estate consultant, I will make not of all of your considerations and desires and begin researching the market to find your perfect home.
Regardless of your desired location, property type, or purpose, a critical part of a home search is to research the value of the homes currently on the market.
The current selling price of a home does not mean that a property is “worth” that amount to you - market conditions and what a buyer is willing to pay for a property affect the true value of the home at any moment.
When deciding the value of any property, the following criteria should be considered.
• Location of the property
• Condition of the property
• Buyer demand
• Current prices of similar properties
• Recent sales of competitive properties
• Availability of financing and funds
CUSTOM BUILD OR RESALE Determine Your Best Option As a discerning buyer, it can often be difficult to find your exact requirements when searching the market. Another option that should be investigated is the option to build your custom home.
LOCATION If location is the most important priority in your search, but the ideal home is not available, my insider knowledge of the area will assist you in purchasing a tear-down or empty lot.
BUILDERS As part of my service, I offer local, accredited architects and builders - my ultimate goal is to ensure that you have both confidence and trust in my recommendations.
IT’S ALL IN THE DETAILS My service offers you all the right connections from interior designers to landscape architects, surveyors to appraisers, and mortgage advisers to international banking services. If you decide to renovate or build a new home, allow me to assist you.
GET PRE-APPROVED Financial Considerations Luxury home sellers are only looking for serious and qualified buyers - whether you require a mortgage or not, it is always recommended to have your financial pre-approval ready to present.
PRE-QUALIFY VS. PRE-APPROVAL A pre-qualification letter provided general information on your finances, whereas a pre-approval letter requires extensive documentation and verification of your finances. It will state the amount you are pre-approved for and includes much more rigorous financial information.
BE PREPARED I will provide you with a comprehensive list of the items that are required when you wish to submit an oer rules, regulations and requirements vary.
LOOK FOR A PROPERTY Time To Find Your Dream Home With your requirements in mind, allow me to search for your dream home.
While the majority of home buyers start their search on the internet, many high-end properties aren’t officially listed on the MLS or major search engines. As your consultant, I will:
• Tap into my network of recommended Realtors and Brokers, who specialize in the local, high-end market.
• Research the local market so I can advise on schools, nuances to neighborhoods, as well as the property specifics.
• Utilize technology that automatically sends home matches.
• Access global networks to find properties not listed.
PROPERTY VISITS Zero in on top picks by seeing properties in person because many sellers, protective of their privacy, refrain from putting extensive photos of their homes on the internet.
THE EVALUATION PROCESS Narrowing Down The Prospects Evaluating a luxury home is more complicated than a typical home; its unique features and aspects need to be thoroughly reviewed, as it is these very qualities that often make a home distinctively luxurious.
AS YOUR REAL ESTATE CONSULTANT, I WILL: • Schedule very detailed property tours to ensure you are able to appreciate aspects such as construction methods.
• Each state has its requirements for seller’s disclosures and I will ensure you have full knowledge and understanding, so you can make an informed decision.
• Examine comparable properties - despite luxury homes being unique, it is still important that we review homes of similar stature to ensure we have a good basis on which to negotiate.
PRESENTING YOUR OFFER Starting The Process As your consultant, it is my duty to provide you with the best information and advice so you can make an informed decision. As your negotiator, I will utilize my experience and expertise to negotiate on your behalf.
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, which 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 in 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.
A FEW REMINDERS The complexity and scale of buying a luxury home raises the stakes. Experts such as tax and financial planners, bankers and attorneys should be consulted up front and often will be directly involved in the transaction.
• Never skip the inspection process; you always want to know what you are buying.
• Make sure inspections and repairs are made in a timely manner.
• While not required in every state or buying circumstance, a good local real estate attorney can save you a lot of headaches.
• Be prepared for closing costs. As your real estate consultant, I will advise you on what is expected for you to pay for - expenses at closing like transfer tax, attorney’s fees, title insurance, etc.
REMOVE CONTINGENCIES Managing The Details Once both parties accept the sales contract and its contingencies, they will start the work of removing these conditions.
It is important for you to understand the options available to you should one of the conditions you are responsible for not be removed prior to the contract date. This does not automatically mean that the “deal is dead” - as your consultant, I will work with the seller’s agent to find a solution.
Equally, conditions that the seller needs to address can also be provided with extensions - this is particularly important when a problem is found with the home inspection.
As your consultant, I will advise you on the right course of action based on my knowledge and experience.
Once you are satisfied and wish to commit to purchasing the home, a contingency removal document will be prepared for both parties to sign.
PREPARE FOR CLOSING Finalizing The Details After all the contingencies have been removed, it becomes the responsibility of the legal and and financial institutions to prepare all of the necessary paperwork. Should there be any issues, I will contact you.
Closing day marks the end of your home buying process. I will provide you with a comprehensive list of personal and financial requirements prior to this date.
At closing, you or your legal representative will sign all your documentation.
When closing is finished, I will give you the keys to the property and any 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. At the end of closing, the deed will be taken and recorded at the county clerk’s oďŹƒce. It will be sent to you after processing. I will also make arrangements to see the home the day before closing to ensure the home is in the condition per the contract agreement.
MOVE IN The Moving Details Moving into your new home can be an exciting time, but it can also be stressful. As your consultant, I will be there to help coordinate all the final moving details.
AS YOUR CONSULTANT, I WILL: • Locate and oversee a moving company that will be responsible for moving your belongings.
• Order any moving supplies that are needed for the moving process.
• Prepare a detailed map and directions for your movers, including a cell phone number where we can be reached on moving day.
• Be present when the truck is being loaded and unloaded just in case your movers have questions.
• Arrange for cleaners for the new home and the old home. Even if the previous owner hires a cleaner, that extra touch before you arrive makes your new home feel fresh and ready.
YOU WILL WANT TO: • Clearly label each box on the outside, with a quick checklist of the items inside - this makes unpacking so much easier.
• Make a list of the items that need extra attention during moving. Label boxes as fragile, as needed.
• Change your address - post office, banks, cable, internet, phone, insurance company, utility company, credit card company, doctors, dentists and any subscriptions you may have.
• Pack a travel bag with the items your family may need on moving day such as toothbrushes, a change of clothing, medication, hair brushes, soap, toilet paper, etc.
FREQUENTLY ASKED QUESTIONS WHEN IS THE BEST TIME TO BUY? When you have found the right home. Don’t wait for perfect conditions to buy - they don’t exist.
HOW DO I CHOOSE A REAL ESTATE PROFESSIONAL? Ask if they know the local market, can they give you references, etc. 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 to finding the right home. 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 you remove all the contingencies. However, don’t write an unrealistic offer. Offer instead what the property is worth to you, otherwise you may be helping someone else’s offer look good.
CAN I GET OUT OF A DEAL SHOULD I DECIDE THE PROPERTY OR DEAL ISN’T RIGHT FOR ME? Don’t be afraid to back out of the deal; you have never gone too far until the contingencies have been removed.
A 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. With that said, here is a short list of terms you’ll want to know.
Abstract of Title - A complete historical summary of the public records relating to the legal ownership of a particular property from the time of the first transfer to the present.
Closing Date - This is usually the date that the legal ownership of the property transfers from the seller to the buyer.
Adjustable Rate Mortgage (ARM) - Also known as a variable-rate loan, an ARM is one where the interest rate changes over time.
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.
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 the loan documents.
Appraisal - An appraiser’s estimate of the market value of a property, based on local market data and recent sale prices of similar properties.
Assessed Value - The value placed on a home by municipal assessors for the purpose 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.
Closing Costs - The costs to complete a real estate transaction in addition to the price of the home and may include: points, taxes, title insurance, appraisal fees and legal fees.
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.
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 buyers opportunity to learn as much as they can about the property. Seller disclosures include knowledge of issues with the home. They serve to inform buyers and they can protect the sellers from future legal action. It is the sellers chance to lay out anything that can negatively affect the value, usefulness or enjoyment of the property.
Earnest Money - A deposit given by the buyers to bind a purchase offer and which is held in escrow. If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not fulfill all contract obligations, the deposit may be forfeited.
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.
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 date. With a mortgage, the lender has the right to take the Title to your property if you don’t make the mortgage payments.
Mortgage Insurance - Purchased by the buyers to protect the lender in the event of default. Available through a government agency like the Federal Housing Administration (FHA) or private mortgage insurers (PMI).
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 a buyer is serious.
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.
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.
Title Search - A historical review of all legal documents relating to ownership of a property to determine of there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property.
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.
NOTES ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________
I would like to thank you for giving me the opportunity to present this preview of the home buying process. I’d be delighted to assist you with the sale of your current home and the purchase of your next home, and the next one, because I am not just providing a service, I am building relationships. Please let me know when I can be of service. Call me before making any important real estate decisions, you’ll be glad you did.
JOHN GRANDT | REF REALTY COLDWELL BANKER GLOBAL LUXURY 720.351.8488 | JOHN@REFREALTY.NET | WWW.REFREALTY.NET