Representing Our Buyers With Exceptional Experience and Expertise Our primary goal is to create and manage smooth and low-stress transactions that achieve the goals for each buyer. We work in partnership with each buyer in a fully transparent manner and always remaining focused on their interests. How we conduct ourselves is never driven by our desire to get a sale completed. We are relentlessly focused on achieving the goals as determined by our buyers. We aid our buyers in making sound buying decisions that withstand the test of time. We carefully and expertly represent our buyers’ interests as specified in Broker Duties Part 1, which is a requirement specific to a New Mexico real estate transaction. A copy is attached.
Establishing Goals and Beginning the Search • • • • • •
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We review the purchase agreement carefully with every buyer so that they are knowledgeable of the process and document flow before they make their purchase decision. We spend the necessary time to understand our buyers’ preferences and the motivation and timing behind a possible purchase in Santa Fe. We want our buyers to be in the strongest possible position when they make a purchase decision, and we identify the steps and timing to get to that desirable point. We discuss purchase timing relative to market conditions and future expectations and the unique circumstances of each buyer. If the best advice is for a buyer to put their purchase decision on hold, we will always counsel and operate accordingly. We set up property auto-searches on the OneHome portal that sends properties to our buyers in real time, so that they see all available properties that fall within their unique criteria. We create property viewing itineraries to show options that best fit our buyers’ criteria and spend the time necessary so each property can be carefully evaluated. We also spend the time necessary for out of town buyers to understand the neighborhoods of Santa Fe so that each buyer can obtain sufficient information to develop clear location preferences. We discuss various financial options to facilitate a purchase and help our buyers determine the best avenue for their goals. This includes purchasing with cash, a loan (conventional or portfolio), obtaining bridge financing or other possible options. We work with our buyers’ lenders to obtain pre-qualification letters to be presented with offers, if mortgage financing will be utilized. If lender recommendations are needed, we’ll provide options who we know are experienced and skilled local lenders. If a buyer is selling a property in Santa Fe or elsewhere, we discuss the best ways to align the two transactions and manage the transactions to our buyers’ advantage. We are constantly on the prowl for “off market” available properties, seeking options for our buyers before these properties are known about generally.
Evaluating Properties •
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We assist in evaluating individual properties that are being considered, identifying the most valuable aspects, limitations and possible issues of concern, and whether the property will be a challenge to resell. We always consider resale value when a buyer is making their purchase decision. We share insights about neighborhoods and trends within neighborhoods that will impact value and the living experience. This includes possible changes in zoning, rental restrictions, nearby developments, HOA dynamics, club memberships, historical designation restrictions, etc. We offer advice on possible improvements or modifications to properties, to create additional value or enhance their enjoyment of a property. We look at the condition of properties while viewing them and identify areas of concern that should be focused on during the inspection process. Based on extensive local knowledge, we provide information about likely costs to address repairs or renovations. We connect buyers with contractors during the escrow process to better develop cost estimates prior to purchase, when that is helpful to the process. We evaluate recently sold and available properties to determine the appropriate value of a particular property relative to its asking price. We will preview properties for our out-of-area buyers and we will conduct video showings as desired. We use local knowledge to identify the neighborhoods best suited for our buyers based on their needs and preferences, with considerations that might include schools, employment, religious institutions, restaurants, trail access, community centers, parks and other important aspects of our community. We provide as much documentation and research as possible for properties of significant interest to facilitate informed decision making.
Making an Offer • • •
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We draft offers for our buyers’ review, along with all relevant disclosures. The standard Broker Duties and Other Required Disclosures and the Purchase Agreement comprise 21 pages. Additional disclosures can add up to 80 additional pages. We explain NM broker duties and all components of the Purchase Agreement, and answer all questions related to all of the documents. We discuss the strategy of creating and presenting each offer and give advice as to what constitutes an attractive offer to a seller, while remaining focused on our buyers’ objectives. Factors discussed will include a property’s days on the market, the competitive environment, what would be a fair offering price, the strategy behind the amount of earnest money, and through frequent communication with listing brokers, we help determine what aspects of the purchase contract are most important to the seller.... price, timing, occupancy and other considerations. We always have our buyers review the offers we draft, along with the associated documents and disclosures, in a non-signing format so that they have ample opportunity to review and discuss the contents of the offer before they are allowed to sign an offer. We expertly manage the negotiation process and offer advice on the best path to reaching agreement with a seller.
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We discuss the option of buyers engaging legal counsel and provide contact information for skilled and highly experienced local real estate attorneys. We explain the Tax Levy Certificate so our buyers can anticipate what property taxes will be. We explain seller post-occupancy options, the occupancy agreement form used, and help develop a post-occupancy agreement, when needed, that works for both our buyers and a seller.
Managing the Escrow Process •
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Once our buyers have a contract to purchase, we prepare a summary of all the contract contingencies and the related time deadlines. We reconcile the timeline with the sellers’ broker and then provide the timeline to all involved in the transaction, including the lender, title company and any involved lawyers. We coordinate with the sellers’ broker to set up the escrow with the participating title company. We stay in close contact with the escrow officer at the title company to make sure all tasks related to the contract are completed on or before each deadline. We discuss with our buyers the possible inspections that can be completed, the importance of each and determine which ones will be immediately ordered to begin the due diligence process. We manage all inspections, the initial ones and others that might become necessary after receiving the initial findings, to make sure all desired inspections are completed in time to allow our buyers time to make any objections and requests by the inspection objection deadline. If more time is needed beyond the contract deadline to make inspection-related objections, we seek an extension of the objection deadline. We’ll provide highly qualified options for every possible inspection and make contact and set appointments with each who will be involved in the due diligence process. We gain access to the property for all inspections and oftentimes remain at the property for the entire inspection. We provide an additional set of eyes and ears and provide context as information about a property’s condition is gathered, to help our buyers understand what is normal and what is not. We provide a local and informed perspective that can be very valuable to a buyer not from Santa Fe. We review inspection reports and property disclosure statements and help our buyers identify questions that need to be answered for a greater understanding of properties. We discuss possible strategies for making inspection-related objections and requests. We obtain bids for repairs, when necessary. This requires contacting skilled and experienced contractors, setting appointments to meet them at properties and meeting them to ensure that the appointments are productive and result in obtaining bids for possible work to be completed. We expertly advocate for our buyers during the inspection contingency resolution process. If the resolution of the inspection contingency involves repairs made by the seller, we’ll arrange for a re-inspection of the property by the general inspector, focused on the repairs made, to confirm that all agreed-to repairs have been properly completed. If the property includes a septic system (on-site waste management system), we’ll work with the seller’s broker to engage our preferred septic specialist to evaluate the system, which will
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include an inspection, pumping the tank and working with the New Mexico Environment Department (NMED) to obtain approval of the system, which might include upgrading the system so that it will be accepted by the NMED. We’ll create and manage the document flow in the process of dealing with and resolving the inspection contingency. Should the due diligence process result in the termination of the purchase agreement, we’ll create and manage the contract termination process, which will involve the return of the buyers’ earnest money, held in escrow by the title insurance company. We provide assistance in evaluating the title commitment and survey and advise when a lawyer should be engaged to evaluate the documents. We’ll explain the standard buyers’ title policy in New Mexico and the standard exceptions 1-4 that can be deleted to the benefit of our buyers. We assist buyers obtain property insurance coverage and meet possible insurers on site, if such evaluations are required for insurance companies to determine if they will provide coverage. The marketplace for insurance is continually changing and typically shrinking, making getting insurance a more difficult task. We stay on top of changes to the local insurance environment and are able to identify the best insurance options at any given time. If a property is part of a homeowners’ association, we (or the title company involved) will identify the HOA contact, who will be needed to complete the HOA documentation required in the purchase agreement, so that those documents can be reviewed and approved (or objected to) by our buyers. We identify skilled moving company options, when needed. We manage the pre-closing walk through in the timeframe dictated in the purchase contract. Ideally with the buyers present, or with a remote video call with the buyers, if they will not be in Santa Fe for the walk through. We review the closing statement created by the title company, and once approved, it will be delivered by the title company to the buyers for their review and approval. Once approved, the buyers will know the exact amount of funds to be wired to the title company’s bank, which should be completed a day or two before the day of closing. We assist our buyers with the transfer of the various utility provider accounts into their names. We obtain keys, gate and garage door clickers and other devices that will be turned over to the buyers upon the close of escrow and provide all to our buyers.
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A Resource Beyond Closing • •
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We remain available indefinitely after the close of escrow to assist owners with any aspect of their home ownership or in any other way that will be helpful to them. We educate buyers on what is highly recommended to maintain a Santa Fe home and make sure they know how to protect their investment. This seems like a minor point, but we see a significant number of homes that are not properly maintained, which is very costly to these property owners. Whenever needed, will provide our clients a list of contractors so they can tackle any issue at their house, big or small At any time, we’ll perform an analysis of value so our clients know the value of the property as market conditions change. We connect our buyers with other top Sotheby’s International Realty agents around the world when they need expert real estate services in other markets. We provide a copy of the buyers’ closing statement at the start of a new year following their purchase, as the statement will be needed to prepare their tax returns. We can provide market data to assist our buyers if they need to challenge their property tax assessment. This is most important during their first year of ownership, when their property tax assessment will be adjusted due to their purchase.
Lyon Group Competitive Advantage •
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We have 5 licensed brokers with over 120 years of experience. Our buyers get the entire team dedicated to their search, purchase and during the time of their ownership. We have broad knowledge as a team and individual experience and strengths that benefit our buyers in important and unexpected ways. We provide expert transaction management that is far more comprehensive than what is expected. We prioritize building strong relationships and trust with other Santa Fe brokers to the benefit of our buyers. We are the brokers that other brokers want to work with. We use our broad local network to our buyer’s advantage…going to city/county offices, calling HOA representatives, calling contractors and inspectors, conducting extra research, knowing many homeowners in the areas where our buyers are buying, to gain local information that would otherwise be unavailable. We communicate and engage with our referral partners in unexpected ways. Those agents who connect us with our buyers are part of the process and kept up to date during the entire search and purchase process. We honor our buyers after each transaction by making financial contributions to local nonprofit organizations in our buyers’ names. Because so many coming to Santa Fe are seeking community and connection, we help facilitate a new owners’ entry into our community. With the goal of living like a local as soon as possible. We often help with emergencies...like being locked out of a new home or dealing with an unexpected and time-sensitive problem.
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To get a full picture of just how different it is working with the Lyon Group, we welcome you to ask about incredible examples of concierge service: • •
Creating a 400+ page owners manual for our buyers! (Meadow View Ranch) Identifying and coordinating 15 contractors over 2 weeks to get an extensive punch list addressed. A punch list the seller said would have taken them 2 years to complete! (Sierra del Norte) • Organizing a last minute move and getting it accomplished in less than a day! (Hillside Avenue) In an environment and time when buyers have many choices of brokers (approximately 900 in Santa Fe) and each must determine the value of the various broker options, we are perfectly positioned to guide buyers, who demand the best possible outcome, to their intended result.
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Sothebys INTERNATIONAL REALTY
NEW MEXICO ASSOCIATION OF REALTORS® BROKER DUTIES - 2024 PART I - BROKER DUTIES
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Per New Mexico law, Brokers are required to perform a specific set of applicable Broker Duties. Prior to the time the Broker generates or presents any written documents that has the potential to become an express written agreement, he/she must disclose such duties and obtain written acknowledgement that the Broker has made such disclosures.
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All Brokers in this transaction owe the following broker duties to ALL buyers, sellers, landlords and SECTION A: · tenants in this transaction, even if the broker is not representing the buyers, sellers, landlords and tenants in the transaction: 1. Honesty and reasonable care and ethical and professional conduct; 2. Compliance with local, state, and federal fair housing and anti-discrimination laws, the New Mexico Real Estate License Law and the Real Estate Commission rules and other applicable local, state, and federal laws and regulations; 3. Performance of any and all written agreements made with the prospective buyer, seller, landlord (owner) or tenant; 4. Written disclosure of any potential conflict of interest that the broker has in the transaction, including, but not limited to; A. Any written brokerage relationship the Broker has with any other parties to the transaction or; B. Any material interest/relationship of a business, personal or family nature that the broker has in the transaction; or C. Any written agreement the Broker has with a Transaction Coordinator who will be providing services related to the transaction. S. Written disclosure of any adverse material facts actually known by the broker about the property or the transaction, or about the financial ability of the parties to the transaction to complete the transaction; adverse material facts requiring disclosure do not include any information covered by federal fair housing laws or the New Mexico Human Rights Act.
,---------. In addition to the above duties, Broker(s) owes the following Broker Duties to the buyers, sellers, SECTION B: landlords and/or tenants in this transaction to whom the Broker(s) is/are directly providing real estate services, regardless of the scope and nature of those services. l. Unless otherwise agreed to in writing by the party, assistance to the party in completing the transaction including: A. timely presentation of and response to all written offers or counteroffers; and B. active participation in assisting in complying with the tenns and conditions of the contract and with the finalization of the transaction; If the broker in the transaction is not providing the service, advice or assistance described in Paragraphs lA or 1B of this Subsection, the party must agree in writing that the broker is not expected to provide such service, advice or assistance. The broker shall disclose the existence of such agreement in writing to the other brokers involved in the transaction. 2. Acknowledgement by the broker that there may be matters related to the transaction that are outside the broker's knowledge or expertise and that the broker will suggest that the party seek expert advice on these matters; 3. Advise to consult with an attorney regarding the effectiveness, validity or consequences of any written document generated by the brokerage or presented to the party and that has the potential to become an express written agreement; 4. Prompt accounting for all money or property received by the broker; S. Maintenance of any confidential information learned in the course of any prior agency relationship unless the disclosure is with the former principal's written consent or is required by law; 6. Written disclosure of brokerage relationship option available in New Mexico: A. Exclusive agency: an express written agreement between a person and a brokerage wherein the brokerage agrees to exclusively represent as an agent the interest of the person in real estate transaction; B. Dual agency: an express written agreement that modifies existing exclusive agency agreements to provide that the brokerage agrees to act as facilitator in real estate transaction rather than as an exclusive agent for either party; C. Transaction Broker: The non-fiduciary relationship created by law, wherein a brokerage provides real estate services without entering into an agency relationship. 7. Unless otherwise authorized in writing, a broker who is directly providing real estate services to a seller shall not disclose the following to the buyer in a transaction: A. that the seller has previously indicated he/she will accept a sales price less than the asking or listed price; B. that the seller will agree to financing terms other than those offered; C. the seller's motivation for selling/leasing; or D. any other information the seller has requested in writing remain confidential, unless disclosure is required by law; 8. Unless otherwise authorized in writing, a broker who is directly providing real estate service to a buyer shall not disclose the following to the seller in the transaction: A. that the buyer has previously indicated he/she will pay a price greater than the price submitted in a written offer; B. the buyer's motivation for buying; or C. any other information the buyer has requested in writing remain confidential, unless disclosure is required by law. BUYER(S), SELLER(S), LANDLORD(S) AND/OR TENANT(S): PLEASE ACKNOWLEDGE RECEIPT BY INITIALING BELOW. NMARForm 1401 (2021 JAN) Cover Page 1 of3
©2008 New Mexico Association ofREALTORS®
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