Buyer's Guide - Christie's International Real Estate

a guide to Home Buying

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Where We Love is Home There are places to live well, and there are places to belong. Your home provides you the pleasures of both. Finding that special place you want to call home starts with finding an experienced agent who has that understanding.

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YOU TO L I E YOUR BE

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Getting to Know Ulterre

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2. results beyond expectations

Christie’s International Real Estate | ULTERRE is a leading residential and commercial real estate brokerage specializing in Texas properties and quality experiences. With roots that go back to 1766, our company is one of the most esteemed in the industry, with a reputation for depth of knowledge, exemplary service and modern agility. Our associates and staff are recognized experts in all facets of the real estate marketplace, with proven track records, negotiating skills that work and unparalleled service to you. Today we know you have lots of options for finding data on homes for sale, but nothing equals an experienced agent who is on your side and has the in-depth knowledge of what’s happening in the market today. At Christie’s International Real Estate Ulterre, we have the expertise, relationships, and resources to make your home-buying experience truly rewarding and enjoyable. Whether you’re a first-time home buyer or have purchased homes before, we hope you find this tool useful.

1. a place like no other

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craftmanship. It symbolizes our aspiration to bring those qualities to everything we do.

140 WORLDWIDE AFFILIATES

art and music to technology and

49 COUNTRIES

best of human creation, from

32,000 REAL ESTATE BROKERS

250 YEARS OF EXCELLENCE

Christie’s is defined by the very

Known The World Over Christie’s is the world’s leading fine auction art house founded in 1766. Christie’s International Real Estate is its subsidiary and real estate arm. As the only real estate company owned by an auction house, CIRE affiliates have a unique perspective on the industry. We offer incomparable service to a global clientele through our world-class marketing platform, collaboration with auction house colleagues, and our exclusive invitation-only network of the world’s top real estate brokers. ULTERRE offers the tailored, trusted service that Christie’s clients have enjoyed for over 250 years.

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The Home Buying Process 1. CHOOSE AN AGENT. An experienced agent can guide you through each step of the process. Your agent should be someone you trust and respect, and who takes the time to understand your needs.

6. GET YOUR OFFER ACCEPTED. Negotiate all terms of the contract including pricing, financing and closing date (typically 30-60 days). After execution, you’ll deposit earnest money.

2. GET PRE-APPROVED. Talk to a lender to help determine what you can afford. Knowing your budget is critical to a successful homebuying experience. 3. FIND YOUR HOME. The fun part! Your Ulterre agent has custom tools to ensure you see every available property that meets your criteria and to quickly update you with new properties that become available. 4. MAKE AN OFFER. When you find a home, it’s important to act quickly and make an educated offer based on the strategy that you and your Ulterre agent have discussed. 5. NEGOTIATE COUNTEROFFERS. In most transactions, there’s a fair amount of counteroffers. Your agent will draw upon his or her experience and knowledge to provide sound advice during the negotiations. Your agent will also serve as a buffer between you and the seller.

7. ENTER OPTION & INSPECTION PERIOD. Your option period is a negotiated number of days and begins the day after execution. During this time, third party inspections and attorney reviews are conducted. Your earnest money is still refundable. Your option money is non-refundable. 8. MEET WITH MORTGAGE PROVIDER. To secure your financing, you will submit your loan application and provide pay stubs, W2s and bank statements among other documentation. An appraisal will be ordered to confirm the home value. 9. WALK THROUGH AND CLOSING. You and your agent will do a “final walk through” prior to closing to ensure the home is in agreed upon condition. Closing documents and title transfer will be completed through a title company.

THE BUYER’S ADVANTAGE The home buyer’s agent’s commission is usually paid by the seller. This means your representation costs you nothing. We will be with you every step of the way. 6

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The Christie’s Advantage The home buying process has multiple steps and legal requirements. A home seller in almost all cases is represented by a listing agent. You will want an agent that represents you and your interests. Expertise will put you at an advantage.

What Your Ulterre Agent Will Do For You Recommend reputable lenders. Listen to and understand your wish list. Present you with available listings that meet your criteria and schedule tours. Prepare a Comparative Market Analysis (CMA) to frame your offer and negotiation strategies. Draw up the contract that includes your offer price and other terms and conditions. Provide user friendly digital signature tools that allow you to sign contract documents anywhere. Recommend and schedule a home inspector. Assist gathering any estimates or further inspections based on original report.

Monitor all dates and various contingency requirements to ensure they have been met. Recommend service providers for moving, home improvement and repairs. Coordinate and attend your closing. Work closely with you, your lender, attorney and the seller’s agent to make sure everything is in place for a smooth and efficient closing.

Our emphasis on communication, organization and follow-through ensures that deadlines are met, documents are distributed, and every item is in place to make your transaction efficient and seamless.

Our Guiding Principles CONFIDENTIALITY Keeping your information secure is vital to the integrity of all transactions and vital to our reputation as professionals. RESPONSIVENESS Time is of the essence in a real estate transaction. We will expedite the presentation of offers and counteroffers and quickly act upon all opportunities. RESOURCEFULNESS Real estate sales are multi-faceted transactions with complex legal agreements. We examine all angles of a deal to leverage these agreements to your benefit and find strategies and solutions that help you accomplish your objectives. COMMUNICATION We involve you in all aspects of the transaction and communicate your options clearly and candidly. STRENGTH We will do everything in our power to help you negotiate from a position of strength. Our goal is to achieve an outcome that exceeds your expectations. 7

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Welcome to Ulterre.com Begin Your Search Your agent can assist you in setting up a private online Ulterre account that allows you to search for properties just like an agent. You can establish saved searches, pick your favorites and be the first to know when a new property hits the market in your desired neighborhoods or other specified filters.

Our website is easy to navigate and it’s filled with great photography, videos, 3D tours and other content to make your search enjoyable and worthwhile.

Use Any Device – Anywhere – Anytime Our search tools are fully integrated, so your online account works from a PC, laptop, smartphone or tablet. We provide listings from the entire north Texas MLS, so you can search all the properties and get the most accurate, up-to-date and complete property data. Our advanced search options allow you to search by neighborhood, school district or many other options.

The World – At Your Fingertips You’ll have one-stop access to the Christie’s International Real Estate website providing you global listings from 47 countries and content to inform and enhance your home buying experience.

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Finding Your Way Home When you know what you want and what you can qualify for, the fun of looking for a home can begin.

HERE’S WHAT YOU CAN EXPECT TO DO: REVIEW LISTINGS – Your agent will present you with

available listings. Beyond price and property attributes, pay close attention to data like property taxes, any monthly homeowner association dues and how long the property has been on the market.

ULTERRE.COM MARKET REPORT Ulterre’s Market Report features individual reports on neighborhoods and communities. Both buyers and sellers can use the market reports to gain an understanding of pricing, market activity and inventory trends based on recent sales in their targeted areas.

VIEW PROPERTIES – Your agent will schedule showings and

accompany you on appointments. OPEN HOUSES – If you’re attending open houses without

your agent, be sure to mention that you are being represented by your Ulterre agent if you are approached by a listing agent. This will save you from being inundated with calls from other agents trying to represent you. COMPARE PROPERTIES – Provide candid feedback to your

agent after every listing so your agent can take thorough notes and adjust your search parameters in order to present you with alternatives that more closely match what you want.

Market Insight From Local Experts When you find a home that suits your needs, your agent will prepare a Comparative Market Analysis (CMA) to help you formulate your offer. Our agents have historical MLS data and other information that can be very helpful in evaluating properties and formulating the best, most competitive offers. Most importantly, your agent is a local expert and has knowledge and insight that will never be available in online tools or analytical reports. Better information leads to better decisions.

Be An Explorer Adventurers can virtually explore north Texas neighborhoods through rich presentations of imagery, data and content.

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Popular Texas Residential Home Styles

Homes in Texas reflect the state’s cultural history, climate and diverse style. Homes generally have a strong relationship with the outdoors and distinctive landscapes and they generally call for architecture that optimizes shading and ventilation. Here is a guide to the most popular residential styles you’ll find in Texas. Your Ulterre agent knows the neighborhoods where you can find the style that best suits your tastes.

RANCH HOME A ranch style typically is a one-story house, sometimes called the California ranch from its origination there in the 1930s. It emerged as one of the most popular American styles in the 1950s and 60s across the country as suburbia sprawled on bigger lots. The style is characterized by its one-story, pitched-roof construction, built-in garage, wood or brick exterior walls, sliding and picture windows and sliding doors leading to patios.

MODERN Modern house plans predominately feature lots of glass, steel and concrete. Open floor plans are a signature characteristic of this style. From the street, they are dramatic to behold. They generally push the envelope in a visually forward-thinking way. 10

CRAFTSMAN Craftsman homes dominate certain parts of Texas and are a local favorite. The Craftsman house displays the honesty and simplicity of a truly American house.

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Its main features are a low-pitched, gabled roof (often hipped) with a wide overhang and exposed roof rafters. Its porches are either full or partial width, with tapered columns or pedestals that extend to the ground level. A combination of natural materials are used, such as wood and stone, and often a combination of more than one type.

MEDITERRANEAN Characterized by stucco walls, red clay tile roofs with a low pitch, sweeping archways, courtyards and wrought-iron railings, these homes are most common in the Southwest. Their charm adds a romantic appeal that blends Mediterranean, Moorish and Spanish Colonial elements into a single stunning house plan.

COLONIAL The Colonial style is often a rectangular, symmetrical home with bedrooms on the second floor. The double-hung windows usually have many small, equally sized square panes. Interiors have elegant central hallways and elaborate cornices. Pillars and columns are common, often expressed in temple-like entrances with porticos topped by pediments.

TUDOR One architectural tradition that never goes out of style is the Tudor home. The style was popular in the 1920s and 1930s and continues to be a mainstay in suburbs across the United States. Tudor homes are defined by one or more steeply pitched roof gables and stucco and brick facades with distinctive timbering around windows and upper stories. Patterned brick or stone walls are common, as are rounded doorways, multi-paned 11 casement windows, and large stone chimneys.

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We Care About Communication

We Connect The Inspired With The Extraordinary ONGOING COMMUNICATION

At Ulterre, we understand what home means. We take the time to understand what’s important to you and we help you find it. It all works through great communication. There are some simple, but vital things that are important to us: being proactive, speaking candidly and staying in touch.

Long after you’ve bought your home, we are available to provide information and answer questions not only about local real estate but also about regional, national and international properties and all things DFW. Our associate base is an incredible resource when it comes to recommending home repair and maintenance contractors, professional service providers and neighborhood businesses. We are always just a phone call, text or email away. We appreciate your business.

Homebuyers Dictionary Whether you’re buying your first home or starting the homebuying process again, it’s challenging to consider all the things you must know. Homebuying comes with its own language. Here are some key terms you’re likely to hear throughout the homebuying process.

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CONTINGENCIES – Conditions in a sales contract that must

be satisfied before the home sale can occur. Some common contingencies are: appraised value must support the sales price; the house must pass inspection; and the borrower must be approved for a loan. Others may include a check for termites or the sale of the current buyer’s current home. DEED – A document that legally transfers ownership of

real estate.

Learning To Speak The Language ANNUAL INCOME – Money you receive over the course of a year,

whether it’s from wages or salary, alimony or child support, rental payments, commissions, investments or other sources. APPRAISAL – An informed estimate of a home’s value, generally

done by an independent, professional licensed appraiser and typically required and ordered by the lender in conjunction with the mortgage application. CLOSING COSTS – Also known as settlement costs, these are

the costs incurred when getting a mortgage. They might include title and attorney fees, preparation and title search fees, discount points, appraisal fees, title insurance and credit report charges. They are typically 2-5% of your loan amount and are often paid at or just before closing.

DEBT-TO-INCOME RATIO (DTI) – One way to measure your

ability to repay debt, DTI is the comparison of your monthly debt payments to your monthly income before taxes, expressed as a percentage. Many mortgage lenders prefer this figure, including your mortgage payment, to be no higher than 36%. DOWN PAYMENT – The amount of cash you can put toward the

purchase price of a home. Down payments often range from 3 to 20% of the home price. EARNEST MONEY – Funds deposited to the title company within

72 hours of contract execution. Typically 1% of the sales price, this promissory note is refundable during your contingent period(s) and will be applied to your closing costs at the time of closing.

CLOSING – The last step of homebuying, also called the

settlement. You sign all the necessary documents to finalize the sale and take responsibility for the mortgage loan. COMPS – Short for “comparables.” These are recently sold

properties with similar attributes to the home you want, including size, location and amenities. They help you and your agent determine an offer price. They also help an appraiser determine a property’s fair market value.

ESCROW – Funds deposited with a third party and held until a

PREQUALIFICATION – This is a lender estimate in advance of how

specific date is reached and/or a specific condition is met. Some lenders may require borrowers to establish an escrow account at closing comprised of future tax and insurance payments. The loan servicer then makes your property tax and insurance payments on your behalf.

much you can borrow to buy a home, based on financial and other information (such as employment history) that you provide. It is not a commitment to lend, and you will need to submit additional information for review and approval. PITI – An acronym for principal, interest, taxes and insurance.

INSPECTION – A visual and mechanical examination of a home to

identify defects and assess the home’s condition.

Sometimes called your monthly housing expense, it includes your mortgage payment and a portion of your real estate taxes and homeowner’s insurance.

LOAN ESTIMATE (LE) – This is a standard disclosure form

provided by lenders to help you understand key loan terms and estimated costs of a mortgage. All lenders are required to use the same form to make it easy for you to compare and shop for a mortgage.

PMI – An acronym for private mortgage insurance, which protects

the lender against losses if you cannot repay your loan. Your lender may require it if your down payment is less than 20%. TITLE INSURANCE – Insurance that protects against issues, such

LOAN TO VALUE RATIO (LTV) – The total amount of your

mortgage compared to the home’s apprised value, expressed as a percentage. If your down payment is less than 20% of the purchase price, your LTV is above 80%, so you generally pay a higher interest rate on your mortgage and may need to pay private mortgage insurance (PMI).

as a tax lien or other legal claim, that would affect ownership of the property. UNDERWRITING – The lender reviews submitted documents to

verify the borrower’s finances and other factors related to the home, such as the title search and appraisal, then decides to approve or deny the loan.

MORTGAGE POINTS – An amount paid to the lender, typically

at closing, to lower (or buy down) the interest rate if the buyer chooses to do so. One discount point equals one percentage point of the loan amount. For example, 2 points on a $100,000 mortgage cost $2,000. OPTION MONEY – A non-refundable, negotiable amount of money

(typically between $100-$300), that the buyer pays directly to the seller for the “Option Period”. OPTION PERIOD – A negotiable amount of days (typically between

5 to 10) in which time the buyer has the unrestricted right to terminate the contract for any reason. During this time, if the contract is terminated, the buyer forfeits their option money and any cost of completed inspections. If the contract is terminated during the option period, all earnest money will be refunded to the buyer. ORIGINATION FEE – A fee from the lender that covers expenses

of processing a mortgage loan. It is usually a percentage of the amount loaned – often one percent. It can be expressed in the form of points or a flat fee. PREAPPROVAL – A lender’s conditional agreement to lend you a

specific amount of money, made after confirming your financial and other information such as income and assets. Conditions may include a home appraisal and no significant changes to your finances. 1414

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