A Home Buyer?s Guide
BOUTIQUE SERVICE | GLOBAL REACH
Hi, this is Gayle Quill, your resident REALTOR®.
Buying a home is one of the most exciting? and personal? journeys you?ll ever take. That?s why I?m here to guide you every step of the way. As a dedicated real estate agent, I specialize in helping buyers not just find a house, but discover a place they can truly call home
Whether you?re a first-time buyer or upgrading to your forever home, I listen closely to your needs, preferences, and lifestyle to match you with the perfect property I believe your dream home isn? t just about square footage or finishes? it?s about how it makes you feel the moment you walk through the door.
Let?s turn your dream into an address
About Keller Williams
A company culture that nurtures excellence
It?s not the brokerage that helps you to find your ideal home, it?s the agent.
Keller Williams has consciously created a company culture that attracts, trains, and nurtures the best real estate agents in the world so they will be able to better serve you.
Our company culture has been studied in depth by Stanford University and they found that: ?Keller Williams is? a company with a unique economic and cultural model, embracing organizational concepts such as profit sharing, shared decision making, open books, and extensive employee training.?
Training Magazine recognized Keller Williams as the world leader in training for a third consecutive year
Keller Williams is proud to be a client focused organization that fosters integrity and teamwork, rewards innovation and works to create win-win outcomes
We are thrilled that you are considering Keller Williams as your choice to help you buy what may be your biggest, and most important asset, your new home
Why Buy with Keller Williams?
We help you reach your goals
Teamwork:
Keller Williams Realty model was designed to reward agents for working together with the idea that we are all more successful if we strive toward a common goal, rather than individual interests. I?m confident that every Keller Williams professional will serve you in the best way possible
Reliability:
Founded on the principles of trust and honesty, Keller Williams Realty emphasizes the importance of integrity and putting the client?s needs first. My success is ultimately determined by the legacy I leave with each client I have the opportunity to serve
Technology:
Leading-edge tech tools and training give us the advantage in effectively finding the perfect home for you.
Track Record:
I?m proud to work with the largest real estate company in the world by agent count When service is consistently superior, word spreads fast
Knowledge:
Keller Williams Realty supports every agent in staying ahead of real estate industry trends through its comprehensive, cutting-edge training curriculum and research resources.
The largest independent real estate franchise
- A network of over 191,000 real estate consultants with a projected growth of 300,000
- 1,100 offices in the United States and Canada (50)major markets
- Excellence in cutting-edge real estate training, real estate coaching and real estate education
- Named ?Most Innovative Real Estate Company?by Inman News
Buyer
Our winning strategy
Reliability:
Founded on the principles of trust and honesty, Keller Williams Realty emphasizes the importance of integrity and putting the client?s needs first My success is ultimately determined by the legacy I leave with each client I have the opportunity to serve.
Search Analysis
Beyond the MLS and previewing homes online, finding your ideal home is also about leveraging relationships
As your Realtor®, I utilize my extensive network and access to off-MLS (pocket) listings on your behalf To streamline the process, I preview homes on your behalf, in addition to touring homes and neighborhoods with you I will always keep you well informed of new homes that come on the market
Negotiate
Negotiating terms for the purchase of what may be your largest personal asset requires a professional who has your best interests in mind After listening to your needs, I will vigorously negotiate the price, contingencies such as inspections, appraisals and financing, as well as the best time to close escrow.
Make a Winning Offer
The Bay Area housing market is ultracompetitive which is why you need a seasoned professional to give you a competitive advantage and help you to win the bid on your ideal home. We will carefully consider if the home is accurately priced for the size, location, and neighborhood comparative sales As your consultant, I will advise you on how to best position your offer for quick acceptance, the amount of your down payment and whether you be should be fully pre-approved prior to bidding
Coordinate
Congratulations! Your offer was accepted and now the race begins. The closing of your home is urgent and time sensitive with many steps to completion
A unique feature of Keller Williams is that our culture promotes teamwork. Everyone at the KW office has a vested interest in helping you close the purchase of your home as smoothly and efficiently as possible. As your agent and project manager, my team and I will be there with you through the end of the closing process. We will coordinate the inspections, escrow, and title search, helping you prepare for the closing of your new home
Pre-Qualification vs. Pre-Approval
There is a difference
Pre-Qualification or Pre-Approval:
Knowing how much you qualify for is an important first step before starting your home search. Understanding the price range you and your agent should focus on, your down payment options, as well as monthly mortgage payments ahead of time, will help you to find and close on your ideal home quickly.
Pre-Qualification
provides you with a general estimate of how much you can expect to borrow. It?s easy and can be done over the phone or online You provide the mortgage company or bank with information such as your income, debt, and employment information. In return you will be given a loan estimate
Pre-Approval
Will give you the exact amount you qualify for and provides other advantages for making offers in a competitive market
With a pre-approval, the lender takes an extensive look at your financial picture, including two years of your W-2s and tax returns, a credit check, debt/income ratio and how much you have for a down payment
Being a pre-approved buyer lets the seller know that you are in a position to buy now, which can give you a distinct advantage when there are multiple offers on a home
Not all loan packages are the same Going through the pre-approval process is a winwin situation that helps the lender create a loan package that fits your needs.
The Loan Process
A series of steps to reach the finish line
Pre-Approval:
You will be asked to provide personal information such as your Social Security number, income, assets, debts, credit information and the specifics on the type of property you wish to purchase.
Full Application:
During the application process the lender will update any information and documentation that has already been submitted
Processing:
Your mortgage package will be reviewed and completed by the processor
Loan Submission:
Once the processor has completed the loan package, it is submitted to the underwriter for approval
Loan Approval:
All parties are notified of the approval and loan documents are completed and sent to both the title and escrow companies.
Title:
The title company ensures that the property title is clear and legitimate Once this process is complete, title insurance is issued for the property.
Funding:
Once you have signed the loan documentation, your lender reviews the loan package, and upon approval, funds are wire-transferred to the title company
Recordation:
When the title company receives the funds, they are released to the seller, less taxes and fees and you are recorded as the owner of your new home.
Writing an Offer
What it takes to win
Here are some general guidelines for writing a strong offer:
1 Review the relevant sales and market conditions prior to making an offer Factors to consider include the condition of the home, length of time on the market, competition and urgency of the seller
2 Give yourself room to compete Ideally, you will want to find homes that are below your maximum so you have room to negotiate on price, the need should arise.
3.While it is important to offer a price that is attractive to the seller, they will often consider other elements before acceptance. How much money you put down on the property, and any contingencies or financing terms are just a few factors that may make the difference.
4.After your offer has been written, your agent will meet with the seller?s agent to negotiate on your behalf The seller may accept, reject or counter the offer with changes.
5 You will be notified immediately of the outcome Should the seller counter, your agent will work with you to review each specific request and move the contract forward to closure
Know What You Are Buying
Your opportunity to find out exactly what you?re buying
Inspections are an important part of the buying process and allow you to fully understand any issues or challenges with the property before closing the transaction.
If the seller has not provided an inspection ahead of time, you may decide to write your offer with an inspection contingency This is one of the more common contingencies that buyers use.
A contingency means that you will only go through with the purchase if certain conditions are met. Home inspections should be only done by a certified home inspector, and they are usually paid for by the buyer
Often, a seller will have inspections completed prior to placing their home on the market to remove the ?contingency?from the buyers bid. Ultimately, it is the buyer?s responsibility to assess the condition of the property
Pest Inspections
Pest inspections are also done by a licensed inspector who will look for wooddestroying organisms, including termites and fungi (?dry rot?). Pest reports classify conditions as Section 1 or Section 2 items As with the home inspection, the buyer pays for the pest inspection, however the inspector is responsible to deliver an unbiased report, regardless of whether they favor the buyer or the seller
Section 1:
Conditions demonstrating active infections or conditions damaging the property
Active termites, beetles, or wood rot are examples of Section 1 items
Section 2:
Conditions not currently causing damage but likely too, if left unattended A typical Section 2 item is a plumbing leak where moisture has not yet caused fungus decay.
If damage is found in the property, such as a crack in the foundation or a roof that needs to be replaced, you may be able to negotiate with the seller on remediation options.
The Escrow Process
Your opportunity to find out exactly what you?re buying
In a real estate transaction, escrow is an independent third party that holds important documents and funds. When opening escrow, the buyer and seller determine the terms and conditions for the transfer of ownership of the property via the purchase contract Escrow ensures that all mutually agreed upon terms and conditions are met prior to the transfer of ownership and distribution of funds.
Escrow protects both you and the seller by managing the following tasks:
- Holding buyer?s good-faith deposit (typically 3% of the purchase price).
- Disclosing escrow and title fees to the buyer?s lender
- Calculating prorated taxes and HOA fees.
- Providing a title report and title insurance
- Ensuring that state and local transaction laws and rules are followed.
- Obtaining all necessary and notarized signatures from all parties.
- Ensuring the paperwork is legal and binding
- Recording the transfer documents and insuring their accuracy.
- Receiving the down payment from the buyer
- Receiving funds from the buyer?s lender.
- Paying liens, overdue tax, and HOA dues
- Distributing proceeds to the seller
Who Pays What?
Buyer and seller fees
Many fees are negotiable; however, there are some fees that you and the seller are required to pay.
Buyer typically pays:
- Inspections
- Their share of escrow fees from the title company
- Loan fees required by your lender
- Title insurance premium
- Fire and hazard insurance premium
Seller typically pays:
- Real Estate commissions
- Any judgments or tax liens
- Any unpaid homeowner?s dues
- Transfer taxes
- Delinquent property taxes
- Their share of escrow fees from the title company
Closing Costs
What you need to know
Closing costs are fees paid by the buyer and the seller at the close of your home
During the escrow process you will have received a Good Faith Estimate which includes your closing costs and settlement charges
Typically, closing costs are 1-2% of the purchase price of your home. A few days prior to closing, your lender will give you a detailed breakdown in the Closing Disclosure Statement.
What?s Included?
Closing costs include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees, initial deposit for your escrow account, home owners insurance and credit report charges
In addition, there are nonrecurring costs and pre-paid costs. Nonrecurring costs are one-time fees associated with buying a property or getting a loan Prepaid costs are those that recur over time, such as property taxes and homeowner?s insurance.
About Property Taxes
What you need to know
How is real property assessed?
Real property is assessed upon change of ownership and, in certain circumstances, the construction of improvements. The new assessed value is equivalent to the purchase price and is subject to being increased by as much as 2% each year
How are property taxes billed?
Property taxes are billed annually and paid in two equal installments You can also have your taxes impounded monthly. An impound account is managed by your mortgage company As the homeowner you pay for property taxes and insurance along with your mortgage payment When your property taxes are due, the mortgage company sends the money to the tax collector or insurance company.
When are property taxes due?
The fiscal year runs from July 1 thru June 30
The first installment is due November 1 and it is late December 10. The second installment is due February 1 and it?s late April 10. You can remember these dates with this mnemonic device: No Darn Fooling Around = November it?s due, December it?s late February it?s due, April it?s late
When do I start paying my property taxes?
After change of ownership, a supplemental tax bill may be issued to collect taxes owing for the current tax year based on the difference between the previous and the new assessed values of the real property The seller is responsible for the payment of taxes due prior to close of escrow, and the buyer is responsible for the payment of taxes due after close of escrow, including any supplemental tax bill
How is the base property tax rate set?
Under Proposition 13, passed by California voters in 1976, the base property tax rate is set at 1% of the full cash (or assessed) value of real property.
What are Mello-Roos?
Real property can be subject to continuing tax levies under the Mello-Roos Act Such levies are used to finance certain designated public services and capital facilities. Among the services and facilities typically financed through ?Mello-Roos districts?are police and fire protection services, ambulance and paramedic services, parks, elementary and secondary schools, libraries, museums, and cultural facilities
Common Forms of Ownership
How you hold title has important tax and inheritance implications If you are unsure which is the best for you, please consult your Attorney, CPA or Financial Planner The comparison chart below is provided for information only
It should not be used to determine how you hold title. We strongly recommend that you seek professional counsel to determine the legal and tax consequences of how title is vested.
Purchaser?s Status Purchaser can only acquire whole title of community; cannot acquire a part of t
Death On co-owner?s death 1/2 belongs to survivor in severalty 1/2 goes by w ll to descendant?s dev see or by success on to survivor
Successor?s Status If passing by w ll, tenancy in common between devisee and surviving resu ts
Conveyance by one co-owner without the others breaks the oint tenancy
Purchaser will become a tenant in common with other co-owners in the property as to the purchaser?s interest Other owners may remain joint tenants
On co-owner?s death h s/her interest ends and cannot be disposed of by will Surv vor owns the property by survivorship
Each co-owner?s nterest may be conveyed separately by ts owner
Purchaser w l become a tenant in common with other co-owners n the property
On co-owner?s death his/her interest passes by w l to devisee or heirs No surv vorship right
Last survivor owns property Devisee or he rs become tenants in common
Purchaser acquires interest that partnership owned
Purchaser acquires interest that partnership owned
On partner?s death his/ her partnership interest passes to the surviving partner pending liquidation of the partnership Share of deceased partner then goes to his/her estate
Heirs or devisee have rights in partnership nterest but not spec fic property
Designated part es with the trust agreement authorize the trustee to convey property Also a beneficiary?s interest in the trust may be transferred
Apurchaser may obta n a beneficia interest by assignment or may obtain legal and equitable title from the trust
Successor benef ciaries may be named in the trust agreement e iminating the need for probate
Right of survivorship may be terminated pursuant to the same procedures by which a oint tenancy may be severed
Purchaser can on y acqu re whole title of community; cannot acqu re a part of it
Upon the death of a spouse, his/her interest passes to the surv ving spouse, w thout administration, subject to the same procedures as property held in oint tenancy
Defined by the trust agreement, generally the successor becomes the beneficiary
Frequently Asked Questions
How will you tell me about the newest homes available?
The Multiple Listing Service Website provides up-to- date information for nearly every home on the market I constantly check the New on Market list and will send you the latest listings via email at a frequency that?s most helpful for you, daily or in real time
Will you inform me of homes from all Bay Area real estate companies or only Keller Williams Realty?
I will keep you informed of all homes that come available, including off-market deals, to help you find your ideal home
Can you help me find new construction homes?
Yes, I have access to all the new construction opportunities in the city and can get you the information you need to make a decision I will accompany you on your first visit with the builder By using my services with a new construction home purchase, you will receive the services I offer, as well as those provided by the builder, at no additional cost
How
does For Sale By Owner
(FSBO) work?
Homeowners trying to sell their home without agent representation are usually doing so in the hopes of saving the commission If you see a FSBO and want the advantages of my services, let me contact the owner for you and make an appointment Often, the homeowner will work with an agent, even though their home is not listed since the agent is introducing a potential buyer to their property While you may get a deal buying directly from the seller, if they are not a licensed agent, it may be a challenging experience.
Can we go back through our property again once an offer is made but before possession?
You should complete all of your inspections and walk-throughs before removing any contingencies If you need to see the property again for any reason, we can make a special request to the seller for access They often allow it, but they are not required to do so Just prior to closing, we will schedule a final walk-through and inspection of your new home.
What
happens
after close of escrow?
You can celebrate and shift your focus to moving into your new home. You will want to schedule your move, pack items and notify businesses of your address change I can provide you with a moving checklist to help you remember all the details
