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Buying YOUR EXCLUSIVE GUIDE TO

A LUXURY HOME

WITH PEGGY DONOHUE BERK YOUR LUXURY REAL ESTATE EXPERT

Meet

PEGGY DONOHUE BERK

Why Re al Estate? Real Estate, Architecture, and Interior Design have been a passion for over 20 years. My career began in Laguna Beach as I purchased, renovated, designed, and sold many properties. In 2003, I became licensed in Las Vegas and was very successful with Coldwell Banker until 2008. I met my husband and married in 2008 and moved to Indian Wells, where we have invested in properties and lived in four country club communities. We have called Vintage, Hideaway, Estancias, and Toscana Country Club our home. In addition, we have a home in Rancho Santa Fe, San Diego at Alcala and predominantly spend the summers traveling between the two areas.

How did I ge t here? I graduated from the University of Miami and worked in television. The hotel business was next, as a Regional V.P. of training, where I taught management at 22 hotel properties for Marriott Hotels. After that, I studied Interior Design and started buying properties to renovate, obtained my Real Estate license and my Luxury Certification, and I have been representing buyers and sellers in the Luxury Market ever since.

Why Choose Me? I am all about relationships and exceeding expectations. My mission with my clients is to provide constant communication to bring the buyer and seller together for a positive transaction. My team at Coldwell Banker Realty provides the support and resources to ensure a legal transaction. I am an agent who provides all necessary resources to help you during and after you have closed escrow. CLHMS Designee - Certified Luxury Home Marketing Specialist Homesnap’s Most Prominent - First Half of 2021 | Top Agent Award Winner

Board member, Education Ambassador, Silver Patroness, and Founder of the McCallum Theatre in Palm Desert. Active member of Olive Crest, Childhelp, and contributor to Animal Samaritans.

PEGGY REALTOR®

Donohue Berk

DRE #02018895

Coldwell Banker Realty 45-000 Club Drive Indian Wells, CA 92210 760.345.2527

760.485.1603 peggy.donohue@cbrealty.com indianwellsluxehomes.com peggydonohuerealestate.com peggydonohue.cbintouch.com

Connect with me:

Contents Introduction

My Commitment to You

Understanding Your Requirements

Researching Your Options

Custom Built or Buy?

Get Pre-Approved

Look For a Property

House Hunting Checklist

The Evaluation Process

Presenting Your Offer

Remove Contingencies

Prepare For Closing

Move In

Frequently Asked Questions

A Home Buyer's Glossary

Yo ur G uid e to Buying a H ome in th e P rest i g ious Mar ke t Purchasing a luxury home requires sophisticated representation, including but not limited to, experience, market knowledge, professionalism, dedicated service, and most importantly, the ability to discern and negotiate the right property on behalf of your client. My exclusive guide is intended to provide a tangible resource in the process of buying a luxury home. My guarantee is to commit to the utmost discretion and provide personal concierge services throughout the process of finding your new property.

Commitment

T O YO U

It is important to work with a Realtor who is not only committed to working with you but who is also dedicated to finding you the RIGHT home. Your Realtor should be someone you trust and who is protective of your interests. As your Realtor, this is my commitment to you:

CONCIERGE

Vie wing and Assessing Homes

To focus on your specific needs and take care of all the small details, so you don't have to.

To view homes with you, provide a comparative analysis, and work with experts who can provide in-depth analysis and advice.

Responsibilities To educate you about the professional responsibilities, including disclosure, loyalty, confidentiality, compliance, and accountability.

Understanding Your Requirements

Consultation and Negotiation To provide full service consultation, together with expert negotiation on pricing and terms, with management of all documentation.

To take the time to understand your requirements – location, property type, purpose, your must-haves, local amenities – even if your goals change.

Closing

Rese arching the Marke t

DISCRE TION

To provide a sophisticated home search that will assist you with previewing homes and to keep you informed as new homes come on the market.

To always keep your interests and privacy secure, so you know that you are working with someone with the utmost discretion.

To keep you fully informed about all activities that lead to the transaction closing.

U N D E R S TA N D I N G Y O U R

Requirements

Establishing Your Preferences and Expectations Traditionally, people purchase a property as a main residence. Understanding that your reason for buying a home may be different, it is important that I know your exact goals, along with your preferences and expectations.

PURPOSE What will be the home's primary purpose? Vacation home, a home closer to work?

LOCATION Are you looking at a specific area? City, rural, gated community, convenient location, privacy?

T YPE Is there a specific type of home that you are looking for? House, condo, lots of land, no land?

LIFEST YLE What is the lifestyle you are looking to lead, and how can I help you achieve it?

Researching YO U R O P T I O N S Market Value vs. Market Price As your Realtor, I will make note of all of your considerations and desires and begin researching the market to find your perfect home. Regardless of your desired location, property type, or purpose, a critical part of a home search is to research the value of homes currently on the market. The current selling price of a home does not mean that a property is ‘worth’ that amount to you– market conditions and what a buyer is willing to pay for a property affect the true value of the home at any moment. When deciding the value of any property, the following criteria should be considered: Location of the property • Condition of the property • Buyer demand •

Current prices of similar properties • Recent sales of competitive properties • Availability of financing and funds •

CUSTOM BUILD OR

Buy?

Determine Your Best Option As a discerning buyer, it can often be difficult to find your exact requirements when searching the market. Another option that should be considered is the option to build your custom home.

LOCATION If location is the most important priority in your search, but the ideal home is not available, my insider knowledge of the area will assist you in purchasing a tear-down or empty lot.

BUILDERS As part of my service, I offer local, accredited architects and builders - but my ultimate goal is to ensure that you have both confidence and trust in my recommendations.

IT'S ALL IN THE DETAILS My service offers you all the right connections from interior designers to landscape architects, surveyors to appraisers, and mortgage advisors to international banking services. If you decide to renovate or build a new home, allow me to assist you.

GET

Pre-Approved

Financial Considerations Luxury home sellers are only looking for serious and qualified buyers – whether you require a mortgage or not, it is always recommended to have your financial pre-approval ready to present.

PRE-QUALIFY VS. PRE-APPROVAL A pre-qualification letter provides general information on your finances, whereas a pre-approval letter requires extensive documentation and verification of your finances. It will state the amount you are pre-approved for and includes much more rigorous financial information.

BE PREPARED I will provide you with a comprehensive list of the items that are required when you wish to submit an offer – rules, regulations, and requirements are varied.

Look F O R A P R O P E R T Y Time To Find Your Dream Home With your requirements in mind, allow me to search for your dream home. While the majority of home buyers start their search on the internet, many high-end properties aren’t officially listed on the MLS or major search engines. As your Realtor, I will: Tap into my network of recommended Realtors and Brokers, who specialize in the local, high-end market • Research the local market so I can advise on schools, nuances to neighborhoods, as well as the property specifics • Utilize technology that automatically sends home matches • Access global networks to find properties not listed •

Propert y Visits Zero in on your top picks by seeing properties in person because many sellers, protective of their privacy, refrain from putting extensive photos of their homes on the internet.

HOUSE

Hunting C H E C K L I S T

In the hunt for a perfect home, it’s easy to forget the important priorities when you see a stunning feature or are overwhelmed by all the choices and homes you have visited. Use this checklist to help you stay organized and focused on the important criteria during your search:

Make a comparison chart for when you start viewing: Positioning of the living spaces

Take a tour of the home and do a second walk-through without emotion. Become the inspector and look beyond the surface:

General size of rooms

Will your furniture fit?

Size

Kitchen style and appliances Bedrooms Bathrooms En-suites Garage space(s) Backyard Landscaping

Floor plans are a great way to see the flow and how changes can be made. Not available? Then measure and draw your own. Check out the true storage space – open cupboards, doors, attics, basements, and storage cabinets. Lift up rugs and investigate for damage on the floor,

Condition of roof, exterior

under furniture, in the back of cupboards, etc. Look

Storage space

at every detail from floor to ceiling, including window

Natural light

trims, under sinks, bathroom tiles, etc.

Do you feel an emotional connection to the home?

How long has the house been on the market? Is it priced to sell? Compare its price to others sold on the market What is the resale potential?

Look outside – understand the landscaping and the layout of other homes around the property, traffic, parking, noise, etc. View the property at different times of the day Take a moment to envision how you would use the space – does it fit your everyday needs? Who are your neighbors?

THE

Evaluation P R O C E S S

Narrowing Down the Prospects Evaluating a luxury home is more complicated than a typical home. Its unique features and aspects need to be thoroughly reviewed, as it is these very qualities that often make a home distinctively luxurious.

AS YOUR REALTOR, I WILL:

x x

Schedule very detailed property tours to allow you time to appreciate aspects such as construction methods.

Examine comparable properties - despite luxury homes being unique, it is still important that we review homes of similar stature to ensure we have a good basis on which to negotiate.

Each county has its own requirements for seller's disclosures, and I will ensure you have full knowledge and understanding, so you can make an informed decision.

P R E S E N T I N G YO U R

Offer

Starting the Process As your Realtor, it is my duty to provide you with the best information and advice so that you can make an informed decision. As your negotiator, I will utilize my experience and expertise to negotiate on your behalf. An offer can be drafted with or without conditions; an offer without conditions is known as a firm or subject-free offer, and one with conditions is known as a conditional offer, which protects one party with the placement of certain conditions on the purchase.

POIN T S TO CONSIDER IN YOUR NEGOT IAT IONS: x x x x x

The condition of the home Length of time it’s been on the market Buyer activity Location Urgency of the seller

The seller may accept your initial offer, reject your offer, or present a counter offer. The counter offer may differ from your original offer in respect to price, conditions, the closing date, or any other items. Offers can be countered back and forth between the parties until one of you accepts or rejects, ending the negotiations altogether.

Remove C O N T I N G E N C I E S Managing the Details Once both parties accept the sales contract and its contingencies (that is, any conditions either party may be subject to), they will start to work towards removing these conditions. It is important to understand the options available to you should one of your conditions not be removable prior to the contract date. This does not automatically mean that the deal is dead: as your Realtor, I will work with the seller’s agent to find a solution. Equally, conditions that the seller needs to address can also be provided with extensions – this is particularly important when a problem is found during the house inspection. As your Realtor, I will advise you on the right course of action based on my knowledge and experience. Once you are satisfied and wish to commit to purchasing the home, a contingency removal document will be prepared for both parties to sign.

A Few

Reminders...

The complexity and scale of buying a luxury home raises the stakes. Experts such as tax and financial planners, bankers, and attorneys should be consulted up front and often will be directly involved in the transaction.

Never skip the inspection process; you always want to know what you are buying.

Make sure inspections and repairs are made in a timely manner.

While not required in every state or buying circumstance, a good local real estate attorney can save you a lot of headaches.

Be prepared for closing costs. As your Realtor, I will advise you on what is expected for you to pay for – expenses at closing like transfer tax, attorney’s fees, title insurance, etc.

Prepare F O R C L O S I N G Finalizing the Details After all the contingencies have been removed, it becomes the responsibility of the legal and financial institutions to prepare all the necessary paperwork. Should there be any issues, I will contact you. Closing day marks the end of your home buying process. I will provide you with a comprehensive list of personal and financial requirements prior to this date. At closing, you or your legal representative will sign all your documentation. When closing is finished, I will give you the keys to the property and any documentation that relates to the property, including a statement of costs, a statement outlining your mortgage terms, your mortgage note, and a copy of your deed of trust. At the end of closing, the deed will be taken and recorded at the county clerk’s office. It will be sent to you after processing. I will also make arrangements to see the home the day before closing to ensure the home is in the condition per the contract agreement.

Move I N The Moving Details Moving into your new home can be an exciting time, but it can also be stressful. As your Realtor, I will be there to help coordinate all the final moving details.

AS YOU Re altor, I WILL : •

Locate and oversee a moving company that will be responsible for moving your belongings.

•

Order any moving supplies that are needed for the moving process.

•

Prepare a detailed map and directions for your movers, including a cell phone number where I can be reached on moving day.

•

Be present when the truck is being loaded and unloaded just in case your movers have questions.

•

Arrange for cleaners for the new home and old home. Even if the previous owner hires a cleaner, that extra touch before you arrive makes your new home feel fresh and ready.

YOU WILL WANT TO: •

Clearly label each box on the outside, with a quick checklist of the items inside – this makes unpacking so much easier.

•

Make a list of the items that need extra attention during moving. Label boxes as fragile, as needed.

•

Change your address – post office, banks, cable, internet and phone, insurance company, utility company, credit card company, doctor and dentists, and any subscriptions you may have.

•

Pack a travel bag with the items your family may need on moving day such, as toothbrushes, a change of clothing, medications, hairbrushes, soap, toilet paper, etc.

F R E Q U E N T LY AS K E D

Questions

When is the best time to buy? When you have found the right home. Don’t wait for perfect conditions to buy – they don’t exist.

How do I CHOOSE a Re altor? Think of the process as equivalent to giving a job interview – do they know your local market, price points, and types of homes? Ask for references!

How do I find the Perfect Home? Prioritizing and compromising are necessary elements to finding the right home. Compile a list of ‘must-have's’ and then a list of ‘would-likes – you will never find the right home otherwise.

How do I know when it ’s right to present an offer? Don’t be afraid to write an offer – there is no commitment until you remove all the contingencies. However, don’t write an unrealistic offer. Offer instead what the property is worth to you, otherwise you may be helping someone else’s offer look good.

Can I ge t out OF A DE AL if I decide the propert y or de al isn’ t right for me? Don’t be afraid to back out of the deal – you have not gone too far until the subjects have been removed.

A HOME BUYER’S

Glossary

When buying a home, it’s important to understand some of the key concepts and terms. Throughout the purchase process, your Realtor will be available to explain any unfamiliar terms you encounter. That said, here is a short list of terms you’ll want to know: A bs t r ac t Of T i t l e – A complete historical summary of the public records relating to the legal ownership of a particular property from the time of the first transfer to the present.

Con t ingency – A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding.

A d jus ta bl e R at e Mor t gage ( A R M ) – Also known as a variable-rate loan, an ARM is one in which the interest rate changes over time.

Con v en t ion a l Mor t gage – One that is not insured or guaranteed by the federal government.

Agr eemen t of S a l e – Also known as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller and buyer agree to transact under certain terms spelled out in writing and signed by both parties.

Coun t er Of f er – An offer, made in response to a previous offer, that rejects all or part of it, while enabling negotiations to continue towards a mutuallyacceptable sales contract.

A mor t i z at ion – The process of reducing the principal debt through a schedule of fixed payments at regular intervals of time, with an interest rate specified in a loan document. A ppr a is a l – An appraiser’s estimate of the market value of a property, based on local market data and the recent sale prices of similar properties. A s ses sed Va l ue – The value placed on a home by municipal assessors for the purposes of determining property taxes. Cl osing – The final steps in the transfer of property ownership. On the Closing Date, as specified by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the final disbursements are paid. Also referred to as the Settlement. Cl osing Cos t s – The costs to complete a real estate transaction, in addition to the price of the home and may include: points, taxes, title insurance, appraisal fees, and legal fees. Cl osing Dat e – This is usually the date that the legal ownership of the property transfers from the seller to the buyer.

Condi t ions or " Sub jec t s " – Items that are usually put in place to protect a party’s interests upon selling or buying the property and refer to things that must occur or be in place before the sale closes. Some of these conditions could be “subject to financing approval,” “subject to the strata council allowing pets,” “subject to the buyer’s house selling,” “subject to seller finding suitable housing,” etc.

Deb t-t o - Income R at io – A ratio that measures total debt burden. It is calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income. Dep osi t – The amount of money provided from the buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. Your agent can assist you in proposing an appropriate amount for the deposit. Discl osur es – Disclosure statements, which can come in a variety of forms, are the buyer’s opportunity to learn as much as they can about the property. Seller disclosures include knowledge of issues with the home. They serve to inform buyers and they can protect the sellers from future legal action. It is the seller’s chance to lay out anything that can negatively affect the value, usefulness, or enjoyment of the property. Dow n Pay men t – The money paid by the buyer to the lender at the time of the closing. The amount is the difference between the sales price and the mortgage loan. Requirements vary by loan type. Down payments less than 20% usually require mortgage insurance. E a r nes t Mone y – A deposit given by the buyer to bind a purchase offer and which is held in escrow. If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not fulfill all contract obligations, the deposit may be forfeited. E a semen t s – Legal right of access to use a property by individuals or groups for specific purposes. Easements may affect property values and are sometimes part of the deed.

Equi t y – The value of the property, less the loan balance and any outstanding Pr e -A pprova l L e t t er – A letter from a mortgage lender indicating that a liens or other debts against the property. buyer qualifies for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer. Escrow – Funds held by a neutral third party (the escrow agent) until conditions of a contract are met and the funds can be paid out. Escrow accounts are also Principa l – The amount of money borrowed from a lender to buy a home, or used by loan services to pay property taxes and homeowners insurance. the amount of the loan that has not yet been repaid. Does not include the interest paid to borrow. F i x ed - R at e Mor t gage – A type of mortgage loan in which the interest rate does not change during the entire term of the loan. Purch a se Con t r ac t – A detailed written document which makes an offer to purchase a property, and may be amended several times in the process of Home Inspec t ion – Professional inspection of a home, paid for by the buyer, to negotiations. When signed by all parties involved in the sale, the Purchase evaluate the quality and safety of its plumbing, heating, wiring, appliances, Offer becomes a legally-binding sales agreement.* roof, foundation, etc. Purch a se Price – The amount that the buyer is offering to pay for the Home Wa r r a n t y - Service contract that covers the repair or replacement of property, usually dependent on market conditions and may differ from the home system components and appliances that break down. seller’s current asking price. There is no “normal” amount or percentage that a price will differ from its asking price, as the final price will be determined Homeow ners Insur a nce – A policy that protects you and the lender from by many factors, including the seller’s motivation and how close the asking natural disasters and liabilities such as a visitor injury or damage to your price is to actual “market value”. personal property. T er ms – An offer includes certain “terms”, which specify the total price Incl usions a nd E xcl usions – Specifications within the offer that detail the offered and how the financing will be arranged, such as if you will arrange items to be included or excluded from the purchase of the property. Typical your own with a financial institution or mortgage broker, or if you wish to inclusions are appliances, window coverings, fixtures, and decorative pieces. take over the seller’s mortgage (assumability). L ien – A claim or charge on property for payment of a debt. With a mortgage, T i t l e – The right to, and the ownership of, property. A Title or Deed is the lender has the right to take the Title to your property if you don’t make sometimes used as proof of ownership of land. Clear title refers to a title the mortgage payments. that has no legal defects. M a r k e t Va l ue – The amount a buyer would pay a seller for a home. An T i t l e Insur a nce – Insurance policy that guarantees the accuracy of the title appraised value is an estimate of the current fair market value. search and protects lenders and homeowners against legal problems with the title. Mor t gage Insur a nce – Purchased by the buyer to protect the lender in the event of default (typically for loans with less than 20% down). Available T i t l e Se a rch – A historical review of all legal documents relating to ownership through a government agency like the Federal Housing Administration (FHA) of a property to determine if there have been any flaws in prior transfers or through private mortgage insurers (PMI). of ownership or if there are any claims or encumbrances on the title to the property. Pos ses sion a nd A d jus t men t Dat e s – When the buyer takes possession as specified in contract of purchase sale and adjustments are made for prepaid T ru t h - In - L ending Ac t ( T IL A ) – Federal law that requires disclosure of a Truthtaxes, maintenance fees, etc. They are usually the same date. In-Lending statement for consumer loans. The statement includes a summary of the total cost of credit. Pos ses sion Dat e – The date, as specified by the sales agreement, that the buyer can move into the property. Generally, it occurs within a couple days * The Purchase Offer and contract procedures vary by region. of the Closing Date.

Notes

I would like to thank you for giving me the opportunity to represent you. My goal and commitment is to make the home buying process as seamless as possible. Regardless of your real estate needs, know that I am always here to assist you because I am not just providing a service, I am building a relationship.

Donohue Berk PEGGY

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