Infinity buyers guide by tasindy

TIM SHIELDS SERVING CENTRAL INDIANA FAMILIES

A Buyer’s Guide to Finding Your New Home

INFINITY TEAM Office: (317) 434-4444 • Cell: (317) 787-SOLD (7653) timshields@kw.com • InfinityTeamKW.com

The Infinity Team We are Realtors focused on People First. We believe in building strong relationships built on a solid foundation of trust and great service. It’s what we do BEST! We at The Infinity Team are proud to be affiliated with the Metropolitan Indianapolis Board of Realtors, MIBOR, and its many members. Our team is made up of people that are passionate about Real Estate and follow our mandate to be educators and providers of beneficial information for the clients we represent and the general public, working hard to make a change by improving our environment, and helping others achieve their Real Estate needs, dreams and goals.

InfinityTeamKW.com •

OFFICE:

(317) 434-4444

We want you to be able to call us with regards to anything in life. We have contacts in every industry, such as General Contractors, Mortgage, Attorneys, Insurance, Lawn Care, HVAC, Plumbers, Roofers, and so on. We want you to feel free to use our years of experience and business associations to your advantage. At The Infinity Team, we go to great lengths to make sure that our clients are in great hands. Our biggest goal is to achieve strong personal relationships built on trust and accountability. Sincerely,

David L. Myers Associate Broker dmyers@kw.com CELL: (317) 787-7355

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Tim Shields Associate Broker timshields@kw.com CELL: (317) 787-7653

About Keller Williams Realty TOP TEN REASONS TO WORK WITH THE INFINITY TEAM 1 A strong negotiation: We treat your home sale as importantly as we do our own — we look out for your best interests.

A lot of companies say they function as a family. At Keller Williams Realty, we truly do and this approach guides us everyday in how we conduct our business. We support one another in achieving goals and celebrate the accomplishment of milestones. We treat each other with respect and integrity. We challenge ourselves and our colleagues in a

2 We have extensive experience with custom home builders/ renovators and related trade professionals.

productive, meaningful way. We encourage growth and self-discovery,

3 We use the latest in technology with the ability to do a real estate transaction right from the comfort of your own home.

What does this mean for you? As a Keller Williams/Infinity Real Estate

4 We utilize the latest and best practices on the Web to expose your home to a greater audience of potential buyers. 5 Fully networked: Our affiliation with associates will assist you. 6 Helpful and accessible: We can be easily reached by phone, email and text. 7 Hard working: We have a balance of strong work and family ethics.

and have fun in the process. And we lend a hand whenever it is needed.

Team client you can expect only the best in client care, confidence and trust. We are not only trained to be the best in our industry, our realtors are expected to share their knowledge to create client experiences, second to none.

The Keller Williams Culture KW Cares is a public charity that is the heart of Keller Williams culture

8 Diligent and responsible: We are constantly upgrading our skills to better serve our clients.

in action — finding and serving the higher purpose of business through

9 We value quality service versus quantity, first and foremost.

Williams associates live and work. Helping those in need when disasters

10 Loyal: We are passionate about real estate and making sure that our clients are kept up-to-date on the latest trends.

strike, people are stricken with hard times or sickness. Any individual

charitable giving in the market centers and communities where Keller

can apply when in need. The Infinity Real Estate Team donates $150 from every sale to support this great cause.

KW Red Day Every May, Keller Williams Centers around the world gather together to help communities by volunteering a full day of time to get out and make a difference in the lives of others. Always a fun day, making a difference in the lives of others.

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Understanding the Buyer’s Agent What is a Buyer’s Agent In the past, when a client began to look at homes with a realtor, that agent was obligated to represent the seller as well — even if the realtor had never met the seller. Traditionally, all agents represented sellers, while buyers were left with no real representation. Today, the face of real estate has changed, and buyers have a choice. As an informed consumer, you can now choose to have a buyer’s agent to represent you in the home buying process. Now you, like the seller, can have someone stand by your side and help you negotiate a deal in your best interests.

THE PROCESS OF WHAT THE AGENT DOES We will help you make an offer that is fair. As your buyer’s agent, we will make sure you receive guidance with the following: 1) Is the asking price in line with others in the area? 2) Is the home in good condition or will you have to spend a significant amount of money to make it the way you want it? 3) How long has the home been on the market? 4) Can you actually afford the mortgage, including taxes and insurance? 5) How much do you really want the home? Above all, my job as an Agent is to ensure that you will buy a home that has potential for high resale value. We will also use our experience to help you negotiate a fair purchase agreement. We will work together to go over each item in any counteroffers you receive and to come up with a compromise that you are satisfied with.

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AS THE BUYER, OUR SERVICES ARE PROVIDED AT NO COST TO YOU. In Indiana, the seller pays for the buyer’s representation. This includes properties listed on the BLC, builders, and most for-sale-by-owner homes.

ADVANTAGES TO HAVING A BUYER’S AGENT WHEN BUILDING A HOME In many cases today, consumers who choose to build homes can easily feel like they “have it made.” You can often do all your home-buying transactions in one location. So why do you need a buyer’s agent by your side? A realtor knows the market, the area, and the reputation of builders. A knowledgeable agent can help you with the technical part: l

review all the contracts

explain the details and default clauses,

represent your interests at closing

help you make informed decisions throughout the process: › during lot selection; › when choosing options that will suit your needs, and; › making decisions that will maximize resale value.

And remember, a buyer’s agent is paid by the seller, so all these services are at no cost to you, the buyer!

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Determining What You are Looking for Criteria Finally! This is the fun part — deciding what you are looking for in a home. To get started, think about the areas you’d like to live in, or perhaps the school districts you would consider. Then consider the number of bedrooms and bathrooms, the square footage, lot size, exterior, and garage requirements you have. Finally, think about any other “wish list” kinds of criteria, such as being in a cul-de-sac, on a corner lot, having walk-in closets, a basement, or anything else you’ve been hoping for all along. This will help to narrow down the selection to the houses that will be best suited for your needs.

Needs and Wants With an appreciation of what you need vs. what you want, as well as respect to the price range you can afford: l

Consider your current lifestyle as well as any lifestyle changes you foresee longer term

Select an urban, suburban or rural location that best serves the needs of your evolving lifestyle

Choose neighborhoods in close proximity to the amenities that are most important to you like schools, shopping, entertainment, recreation and transportation

Consider your commute times to work, school, friends and family

Determine the size of home you require, such as the minimum number of bedrooms, as well as any other space requirements, like room for a home office

Understand which home features are most important to you, such as additional bathrooms or a large yard

Decide on a property type that suits your lifestyle, needs and finances whether condo, townhouse, single or multi-family dwelling

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Organizing Your Finances — The Critical First Steps l

Consider the one-time costs associated with a home purchase, including a down payment, legal fees, inspection fees, taxes and moving expenses.

Understand ongoing monthly costs, including mortgage payments, insurance, utilities, property taxes, maintenance and, if applicable, condo fees

Take into account the equity you may have in your current home and the applicable mortgage options available for your next move.

Pre-qualifying for a mortgage gives you the comfort of knowing how much and what your monthly payments will be.

A pre-approval from a mortgage lender protects you against interest rate increases for a given period during your home search.

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Helping You with Your Home Purchase Pre-approved It is important to gain mortgage loan Pre-Approval before beginning your actual home search. There are so many types of mortgage loans available, it would be nearly impossible to list them all here! As your buyer’s agent, we can give you some information on the different mortgages and lenders in our area, and help you choose a lender with a program that works best for you. You can work with your lender to gain pre-approval (or pre-qualification) so that when you find a home you want to make an offer, you will be able to do so without hesitation over the financing. This will let you work within your parameters during the home-buying process. Having pre-approval before writing an offer gives a buyer empowerment over other offers where the buyer has not submitted a pre-approval application. It is something that can and should be done ahead of time to reduce stress later on!

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Finding Your New Home Homes for Sale The Broker Listing Co-op (BLC) is used by most realtors. We can show you any house that is listed through the BLC. It is important for you to realize that we can fulfill your needs as your buyer’s agent and you won’t need to work with another realtor to buy a home, even if that realtor has the home for sale. If you see a home that is For Sale by Owner, it is important for us to treat that like any other home. In order for us to best represent you in negotiation, it is important that we make the first contact with the seller. Remember, as a buyer’s agent, we represent your best interests, and the seller represents his or her interests.

Auto-generated Email Searches We can also help your search via the internet by emailing you listings that meet your criteria. We have an auto-generated program that will send you links via email to homes on the market that you may be interested in. It doesn’t get much easier than that!

Keller Williams Realty, Inc. Mobile

HHHH Our free mobile app is available for iOS and Adroid devices.

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Setting Up Appointments and Looking at Home Once we have narrowed down the available options, it will be time to make some appointments and look at homes. Again, we will do the legwork and accompany you to these homes to help you determine which will best suit your needs. We will set up appointment times, walk the home inside and out with you, and help you remember what you thought about each when it comes time to compare. The National Association of Realtors states that buyers look at an average of nine homes before submitting an offer. We are always happy to show you more or less than this number of homes — the most important factor is that you find exactly the home you are looking for!

The National Association of Realtors states that buyers look at an average of nine homes before submitting an offer.

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Offer and Counteroffer As your buyer’s agent, remember that we are here to help every step of the way. When it comes time to make an offer, it can often be an overload of legal and real estate jargon — so let us help you clarify the process and make it easy to understand. First you will make an offer, which we will help you with, so that it is a fair offer. More than likely, you will receive and possibly make a counteroffer. It is not very common that a buyer’s first offer is accepted. The seller will likely counteroffer, and as your buyer’s agent, we will work with you to negotiate an agreement that will fit your needs. Just remember that during the negotiations, it is important to keep mindful of what you really want and what you can really afford.

Earnest Money When you make an offer of a home, the offer requires a “down payment.” This is called Earnest Money. This earnest money shows the Seller that you are willing to buy the home as long as all the requirements of the contract are met. The Earnest Money amount is usually $500-$1000, or 1% of the purchase price, depending on the home. This amount is a negotiable item in the purchase agreement. We call Earnest Money “cold feet money.” If you decide to not purchase the home for any reason not allowable by the contract, this could result in forfeiture of the Earnest Money.

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Home Warranty One negotiating factor is a home warranty. It is not uncommon for a buyer to ask a seller to provide a one-year home warranty. This is a contractual guarantee that should certain appliances or mechanical systems fail due to normal wear and tear during the coverage period, those items will be repaired or replaced, subject to a small deductible paid by the buyer. As the buyer, you can opt to purchase this warranty, even if it is not provided by the seller.

Closing Costs Closing costs vary from purchase to purchase, and are dependent upon type of mortgage, Buyer’s Assistance Program, lender, and more. As your buyer’s agent, we can provide you a Buyer’s Net Sheet that can help estimate your closing costs. Your lender will provide you with a truth-in-lending statement that will give you a breakdown of all the fees that will be charged at closing.

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After an Accepted Offer Congratulations The Seller has agreed to your Offer! But now there are a few more hurdles (all to your benefit) to cross before Closing, in order to set the process in motion.

Home Inspection The Purchase Agreement that is negotiated is still contingent upon the home passing an optional Home Inspection. As the buyer, you will pay for this inspection to be completed. We can help you choose an inspector if you would like. A home inspection gives you, the Buyer, a more detailed look at the home’s condition before purchase. A qualified inspector will take an in-depth, unbiased look at the home’s: physical structure, construction, and mechanisms; identify items that need to be repaired or replaced; and estimate the remaining life of the major systems, equipment, structure, and finished. The Purchase Agreement is contingent upon the Inspector Report showing either no major defects, or no major defects that the Seller is either unwilling or unable to rectify. I recommend that this be scheduled immediately after the Accepted Offer. I recommend that you be present during the inspection, and the Seller may or may not choose to be present. You are paying for the inspection; don’t hesitate to ask questions so that you fully understand the process.

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Appraisal Your lender will set up an appraisal of the home you wish to purchase. This appraisal is for the lender to: estimate the home’s market value; make sure the home meets FHA minimum property standards; and to make sure the home is marketable.

Insurance Homeowner’s Insurance is usually required if you have a mortgage on a home. Proof of one year’s insurance is required at closing. Fees vary, but the cost is usually $600 for every $100,000 insured. You should contact your Insurance agent (or ask me if you need a recommendation) as soon as your offer is accepted to expedite the closing process.

Title Work Title work allows both you and I to know that there are no other liens or ownership interests in the property after the closing.

Survey The Title Company will order a survey of your home, which is a map of where your house sits on the property. It may show if there are any encroachments from neighboring properties.

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Closing Your home purchase becomes a reality on closing day when ownership is officially transferred to you. Before and on closing day, there are number of tasks to complete of which we can assist in providing recommendations: l

If you are renting, give notice to your landlord and arrange for the return of your deposit

Confirm your home purchase with your mortgage lender and finalize your mortgage details

Hire a legal professional to represent your interests and manage closing documentation

Obtain home insurance and notify your lawyer and mortgage lender of the selected insurer

Arrange for your self-move requirements or obtain estimates from reputable moving companies and book as far in advance as possible

Coordinate cancellations, transfer and change-of-address notification for medial, financial and contracted services, utilities, licenses, subscriptions, memberships, and personal mail

Organize the connection of services and utilities at your new home

Meet with your lawyer on closing day to sign required mortgage and property closing documentation, pay associated balances and fees, and collect the keys to your new home

WHAT TO BRING l

Your photo ID

All funds you will owe at closing

Receipt of paid insurance

And anything else your lender asks you to bring

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WHAT TO EXPECT

What to expect You will be at a table with me, your Buyer’s Agent, the Seller’s Agent, likely the Seller, and a Closing Agent. The Closing Agent will have a stack of papers for you and the Seller to sign. He or she will give you a basic explanation of each paper, but you may take the time to read each one and/or consult with me to make sure you know exactly what you are signing. Before closing, your lender will give you information explaining the closing costs, a “good faith estimate” of how much cash you will need to bring to the closing and a list of documents to bring to closing. I will check with you to make sure you are ready for the big day, but certainly if you don’t have this information from your Lender, it is important that you get it BEFORE closing. Personal checks are not accepted and you will need to have a cashier’s check for funds at closing.

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Possession Key Trade and Accommodating Seller Requests Most often, these details are negotiated within the Purchase Agreement. If possession changes at closing, the Seller will bring the keys with them. However, if possession is not changed at closing, the date of possession was likely previously negotiated, or can be negotiated at that time.

Utility Change-overs You will need to call the utility companies at least one week prior to possession to have the services changed into your name for the first date the home is in your possession. I can relay information to and from the Seller to help you arrange so that there is not a disruption in the services. I will provide you with a list of utilities in time for you to contact them a week prior to possession.

Tax Exemptions You should file your Homestead Credit and Mortgage Tax Exemptions about a month after closing. It takes about that amount of time for the filing and financing information to be entered into the necessary systems. Around the time you make your first house payment, I’ll remind you to file your exemptions.

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Thank You. Thank you for the privilege and opportunity to work with you.

Our Commitment to You

As always, feel free to call me if you have any questions. I look forward to meeting with you and helping you find your new home.

Deciding to buy a home is a big step — one that be an excellent experience with an experienced and knowledgeable agent. As your buyer’s agent, we will be sure to keep your best interests in mind throughout the entire home-buying process. We will

Tim Shields

be with you every step of the way, from determining what you

Associate Broker

are looking for, to figuring out what you can afford, to making an offer at closing, and more. We will help you sort through the homes available, show you the homes that most closely match your criteria, update you on the newest listings, help you find the most current financing options, prepare and present your purchase agreement to the seller, and coordinate a smooth closing and possession of your new home. Most importantly, we will consistently provide excellence service, communication, and enthusiasm in making the purchase of your dream home a greater experience for you.

timshields@kw.com Office: (317) 434-4444 Cell: (317) 787-SOLD (7653) InfinityTeamKW.com

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