H O M E
BUYER'S
G U I D E
YOUR LOCAL REAL ESTATE EXPERT
With a passion for helping clients navigate the real estate market, I am committed to delivering exceptional service and creating a smooth, stress-free experience. I understand that buying or selling a home is one of life?s biggest decisions, and I?m here to provide trusted guidance every step of the way By staying up to date on market trends and local insights, I aim to empower my clients to make informed choices with confidence
Whether you're a first-time homebuyer, looking to sell, or exploring investment opportunities, I am dedicated to helping you achieve your real estate goals My approach is built on clear communication, attention to detail, and a genuine desire to see my clients succeed Let?s work together to turn your real estate dreams into reality!
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 can 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 the 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
TECHNOLOGY
Leading-edge tech tools and training give us the advantage in effectively finding the perfect home for you
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.
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
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
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
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
BUYING
Our winning strategy
LIFESTYLE ANALYSIS
Finding your ideal home is a process of matching your lifestyle and financial objectives with the right neighborhood. As a Realtor®with experience selling in this market, I have the expertise to match you with the home that fits your lifestyle
Whether you want a piece of the city, or a quiet neighborhood with the best schools for your children, I have the area insight and knowledge you need
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.
MAKE A WINNING OFFER
The Texas housing market? especially in fast-growing areas like Dallas-Fort Worth, Austin, and Houston? can be highly competitive That?s why working with an experienced real estate professional is essential to gaining a strategic edge and securing your ideal home We?ll evaluate whether the home is priced appropriately based on size,
location, and comparable sales in the neighborhood As your consultant, I?ll guide you on how to make a strong offer, recommend the right down payment strategy, and ensure you?re fully pre-approved before we enter the negotiation stage.
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
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-qualified 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 win-win 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
1 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.
2 Full Application: During the application process the lender will update any information and documentation that has already been submitted
3. Processing: Your mortgage package will be reviewed and completed by the processor
4. Loan Submission: Once the processor has completed the loan package, it is submitted to the underwriter for approval
5 Loan Approval: All parties are notified of the approval and loan documents are completed and sent to both the title and escrow companies
6. 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
7. 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.
8 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
Texas continues to be a fast-moving and competitive market To stand out, it?s important to position yourself as the most attractive and qualified buyer in the eyes of the seller
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 are also done by a licensed inspector who will look for wood-destroying organisms, including termites and fungi (?dry rot?) Pest reports classify conditions as Section 1 or Section 2 items
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
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.
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
Prepare and present your property
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.
ESCROW FAQS
When do we need to open escrow?
We will open escrow on your behalf after the contract has been signed by both you and the seller After escrow is opened, you have three days to wire your 3% deposit money into escrow.
What does an escrow officer do?
Your escrow officer will oversee all aspects of your real estate transaction, such as signing paper-work, completing a title search and obtaining hazard and title insurance.
Why do properties fall out of escrow?
Often, there is a problem with the loan where the appraisal comes back lower than the offer price, or a structural problem is discovered during an inspection.
How
long does escrow take?
In most cases, the escrow process in Texas takes 30 to 45 days from the time your offer is accepted to the day we close I?ll guide you through each step? inspections, loan finalization, title review? and coordinate with all parties to help ensure a smooth and timely closing.
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.
Source: http://www.zillow.com/mortgagelearning/closing-costs/
ABOUT PROPERTY TAXES
An Overview
How is real property assessed?
In Texas, real property is assessed annually by the county appraisal district. The appraisal district determines the market value of your property based on factors like location, size, and recent sales of similar homes. This assessed value is used to calculate your property taxes
How are property taxes billed?
Property tax bills are issued by the local county tax assessor-collector, typically in October. The bill includes the total tax amount based on the current tax rate and the appraised value of your property
When are property taxes due?
In Texas, property taxes are due upon receipt but must be paid no later than January 31of the following year. Payments made after this deadline may be subject to penalties and interest
When do I start paying my property taxes?
As a new homeowner, you will begin paying property taxes the year you take ownership. If you close on a home mid-year, the property taxes are typically prorated between you and the seller at closing.
How is the base property tax rate set?
Texas does not have a state-level property tax. Instead, local taxing units such as cities, counties, school districts, and special districts each set their own rates based on their annual budget needs. These rates are applied to your property?s appraised value to determine your tax bill
What are MUD or PID fees and how do they affect my total cost?
MUD (Municipal Utility District) and PID (Public Improvement District) fees are additional costs that may apply to homes in certain Texas communities MUD fees help pay for water, sewer, and drainage infrastructure in areas not served by a city. These fees are typically included in your annual property tax bill and can result in higher overall taxes PID fees cover improvements like landscaping, roads, parks, or enhanced neighborhood amenities These are usually billed as an annual assessment, either separately or as part of your tax bill.
Both fees can significantly increase your monthly housing expenses, so it?s important to ask whether a property is located in a MUD or PID before buying
COMMON FORMS OF OWNERSHIP
Titles Matter
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
Conveyance Requires written consent of other spouse or actual conveyance by deed Separate interest is devisable by will
Purchaser's Status Purchaser can only acquire whole title of community; cannot acquire a part of it
Death On co-owner's death 1/2 belongs to survivor in severalty 1/2 goes by will to descendant's devisee or by succession to survivor
Successor s Status If passing by will, tenancy in common between devisee and surviving results
Creditor's Right Property of community is liable for debts of either spouse which are made before or after marriage Whole property may be sold on execution sale to satisfy creditor
Conveyance by one co-owner without the others breaks the joint 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 his/her interest ends and cannot be disposed of by will Survivor owns the property by survivorship
Each co-owner's interest may be conveyed separately by its owner
Purchaser will become a tenant in common with other co-owners in the property
On co-owner s death his/her interest passes by will to devisee or heirs No survivorship right
Last survivor owns property Devisee or heirs become tenants in common
Co-owner's interest may be sold on execution sale to satisfy creditor Joint tenancy is broken, creditor becomes a tenant in common
Co-owner's interest may be sold on execution sale to satisfy his/her creditor Creditor
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 pendingliquidation of the partnership Share of deceased partner then goes to his/her estate
Heirs or devisee have rights in partnership interest but not specific property
Designated parties with the trust agreement authorize the trustee to convey property Also a beneficiary s interest in the trust may be transferred
A purchaser may obtain a beneficial interest by assignment or may obtain legal and equitable title from the trust
Successor beneficiaries may be named in the trust agreement, eliminating the need for probate
Defined by the trust agreement, generally the successor becomes the beneficiary and the trust continues
Creditor
the proceeds distributed
Right of survivorship may be terminated pursuant to the same procedures by which a joint tenancy may be severed
Purchaser can only acquire whole title of community; cannot acquire a part of it
Upon the death of a spouse his/her interest passes to the surviving spouse, without administration, subject to the same procedures as property held in joint tenancy
Surviving spouse owns property
FREQUENTLY ASKED QUESTIONS
Answered
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 DFW 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
Thank you
LET?S GET STARTED
Again, thank you for the opportunity to present my proven winning buying strategy to help you find and purchase your property. I am excited and honored to be helping you on your journey to home ownership
JODI GIBBS, REALTOR®
LIC #770414
e: jodigibbs1@kw.com
w: jodigibbs1@kw.com
o: (214) 403-3581
3600 Preston Rd, Plano, TX, 75093
Each Office is independently owned and operated LIC #0492040
