good Buy
the buyer’s guide to choosing the right home
thInk Before you Look to Buy. whether it’s your first or fifth time buying a home. It’s always an exciting time. with a little planning and preparation, your house hunting trips will be far more rewarding. In this little book, we’ve given you a few pointers and reminders about what to do before you look for a new home, and what to look for when you’re on the hunt. It’s your guide to saying hello to a good buy.
erIn And dAnny wILLIAmson reALtors® whose passion is evidenced in everything they embrace. every day, the award winning williamson team works tirelessly for the benefit of their clients, sharing their experience to help others navigate successfully through market challenges. their dedication and commitment has led to over 1,000 closed transactions. the reward of their knowledge and preparedness is consistent client satisfaction. their customers not only become friends for life, but extensions of their family.
If you’re new to the process it goes a little something like this: Choose a professional > Set your limits > Choose an area > Compare properties > Choose your favorite > Make an offer > Negotiate > Sign > Conditions fulfilled > Settlement agent > Insurance & Finance > Settlement > Move in.
It takes a professional.
Finding the right home in the perfect neighborhood and at a cost that is within your budget is no small task. That’s why many buyers enlist the help of the full-service First Team® Real Estate professionals, The Williamson Team. The Williamson Team are licensed professionals with specialized skills. There are many benefits you receive from working with our professionals. As your First Team agent: • We know the local market and can quickly narrow it down to a few areas where you are likely to find your home at the price you want. • We can save you time by doing a lot of the legwork. By knowing your needs, we can eliminate homes that do not meet your criteria. • We will make appointments, preview homes with you and help you determine the pros and cons of each home. • We have access to the Multiple Listing Service (MLS), a service that provides access to thousands of homes for sale. • We can provide information and make appointments to see almost any property listed for sale. A home does not have to be listed by a First Team agent in order for us to get detailed information or an appointment to tour the home. • Once you find the home you want to buy, we will guide you through the negotiation, legalities, and details of purchasing the home.
Before You Start Looking At Homes. Setting your limits.
Once you have obtained a mortgage pre-approval you are ready to begin your home search. Today, approximately 98 percent of home searches begin on the Internet, and if you’re searching for a home in Orange County, there’s only one web address you need to know: www.ErinWilliamson.com. Our website includes maps and tools to access all areas of Southern California properties listed in the MLS. When setting your limits, always include a buffer, so if interest rates rise, you can afford the extra amount without stretching yourself too far. And remember to budget for the extra up-front costs involved in buying a home.
How much can I afford?
There is a wide variety of loan programs available to buyers. In order to plan properly, you need to understand what lenders are looking for from a borrower. There are three factors that help determine if you qualify for home financing. • Your income • Your assets • Your credit history Most loan programs require you to verify all of your income sources. Your mortgage consultant will let you know what documentation is needed. Typically, you will need to provide pay stubs and your W-2s, and if you are self-employed, you may need to provide copies of your tax returns. The required down payment varies according to the loan program. There are several affordable options for borrowers. Closing costs are associated with finalizing the transaction and include the appraisal fee, loan origination fee, title insurance, escrow services and legal recording of documents. Each loan is different, so it is important to discuss these fees with the mortgage expert. All lenders review a borrower’s credit history to determine the type of credit used, the amount owed and the borrower’s history of repaying a debt. When you speak with your mortgage professional to figure out how much home you can afford, it’s also a good idea to get preapproved for a mortgage before we start your home search. This will help us narrow your home search to a price range that’s comfortable for you, and being preapproved also makes for a stronger offer in the eyes of sellers.
Mortgage Application Checklist. Documentation. Here is a list of documentation that each borrower should have when starting a loan application: Income Salaried Employees: • Paystubs for the last 30 days • W-2 Statements for the last two years Salaried Employees with additional income: • Paystubs for the last 60 days (commissions, self-employed in a second job, etc.) Statements for the last two years • Personal tax returns for the past two years • K-1 form if partnership is indicated on Schedule E • Most current federal business tax returns (if borrower owns more than 25% of the business) • If tax returns have not been filed for the most current year, and its after April 15th: 12 month profit and loss statement for that year
fIndIng your home. Everyone’s idea of the perfect home is different.
so start with your needs and wants. Before you go looking for your ideal home, you need to spend some time defining what makes your ideal home. one way to do this is to distinguish between your needs and your wants. your needs are the essentials; the “must haves” of your new home. for example, extra rooms for children, easy access, close to freeways, big family room, or a room that can become your office. your wants are things that you’d like to have, but which are not absolutely essential to your decision. things like a pool, a big kitchen, a double garage or a game room. the trick is to not compromise on your needs and to maximize your wants. start by making a list of your needs and wants.
Review Listings.
using the guidelines you set forth, we will present you with available listings. In addition to price and property features, pay close attention to data like property taxes, market timeline, and monthly assessments for condos and town homes.
View Properties.
the williamson team will schedule showings and accompany you on each appointment. when you walk through a home, things to consider are: how the space functions for your lifestyle, what’s included in the total square footage (balcony or garage), and, in a new construction, which features are standard and which are upgrades.
Open Houses.
remember, if you are attending open houses without us, be sure to mention that you are being represented by the williamson team. this will save you from being bombarded with calls from other agents trying to represent you. we’ll supply you with some business cards to make the open house sign-in process even easier.
Compare Properties.
discuss each home you see with us and provide candid feedback. your expectations and the marketplace will begin to converge, and we will be able to adjust certain parameters, such as location and features, in order to present you with alternatives. when you find a home and are ready to make an offer, we will perform a comparative Market Analysis or CMA. This report compares the subject property with other properties that are currently listed and recently sold to help you formulate your offer.
mAkIng An offer. Chances are, when you find a home you absolutely love, someone else may love it too. So it’s important to act quickly and make an educated offer based on a rational approach to pricing and negotiating that you and your first team agent have discussed. to start the process rolling, your agent will draw up a contract that includes your offer price and other terms and contingencies. Buyers often focus on price, but there are other important terms to a real estate contract. You can include any terms you like, but the more you add, the more likely the seller is to object. Here are the most common elements of a real estate purchase contract: • Price – The market will determine the final price, but your agent will help you formulate an offer based on comparable listings and sales, and current market conditions. • Mortgage Contingency – A mortgage contingency stipulates that you will buy the property subject to obtaining a mortgage. If you cannot obtain a mortgage, and the seller will not agree to finance the sale, then the contract will be void. the terms of the mortgage must be stated in the contract, and you will also need to establish a timeframe for securing financing. • Home Inspection Contingency – A thorough inspection of the property by a licensed home inspector protects you against structural or material problems that are not detectable in a casual walk-through. the buyer, not the seller, is responsible for hiring and paying the inspector. • Earnest Money - Earnest money is a deposit, given by the buyer to the seller, which secures the contract until the closing. An initial deposit, usually in the form of a check or wire transfer, must be given to the seller or seller’s agent along with the contract. earnest money is typically held in an escrow account until the closing, when it may be applied to the down payment and/or closing costs. If the sale does not go through due to contingencies covered within the contract, then the earnest money may be returned to the buyer. however, if a buyer is in breach of contract, then a seller may be entitled to keep all or a portion of the earnest money. • Closing Date – One of the most important terms of a real estate contract is the closing date – the date when ownership changes hands. this is usually, but not always, the date that the seller must vacate and the buyer may occupy the property. flexibility on the closing date can give a buyer a big advantage over other potential buyers.
negotiating for your dream home. Counter Offers.
In many transactions, there is a fair amount of negotiation, offers and counter offers, before both parties are satisfied. This is one aspect of a real estate transaction in which an agent is invaluable. Not only can The Williamson Team draw upon our experience and market knowledge to offer sound advice during a negotiation, but we can also serve as a buffer between the buyer and the seller/seller’s agent. Negotiating for a home can be a highly charged and emotional process. But the most emotional buyer will look like a cool customer behind The Williamson Team, and in the end, you usually wind up with what’s important to you.
From Contract To Closing.
In a real estate transaction, there are dozens of loose ends to tie up between signing the contract and closing the sale. The Williamson Team is known for their attention to detail during this important phase in which we coordinate and oversee the following steps: • Deposit earnest money with the seller or seller’s agent • Recommend and schedule a home inspector and accompany the buyer on the inspection. It is always highly recommended that the buyer attend the inspection along with a member of The Williamson Team. • Obtain important documents, such as property disclosure forms and condominium documents (budget, declaration, condo association minutes), and deliver them to the buyer. • Recommend a mortgage broker and help expedite the loan-application process • Monitor all contingencies to ensure that they have been met • Schedule a final walk-through. Again, both buyer and buyer’s agent should be present. • Coordinate your closing. In addition, if you have an existing home to sell, The Williamson Team will customize a comprehensive marketing proposal to help you achieve the highest possible sales price in the shortest amount of time.
Who Pays For What During The Transaction. During the negotiation stage of the transaction, a mutually agreed-upon date for closing is determined. “Closing” is when you and the seller sign all the paperwork and pay your share of the settlement fees, and the documents are recorded. Settlement obligations vary widely due to specific contract language, local laws and customs. Prior to closing, the closing agent (usually an escrow company) will complete a detailed settlement statement for both buyer and seller. As your agent, we can help you understand which of the following typical statement fees apply to your transaction.
The Buyer pays: • • • • • • • • • •
Earnest money deposit One-half of escrow or legal fees paid to the attorney or escrow company for preparing the closing. (In California, the party paying escrow fees varies from county to county) Document preparation fees Recording and notary fees Title prelim and title insurance (paid by either the seller or the buyer) Local transfer taxes, if any Repairs or inspections the buyer has agreed to pay for Loan fees Appraisal fees Credit report fees
Schools.
Orange County School Districts: K-12 Anaheim City www.acsd.k12.ca.us 1011 S. East Street, Anaheim 92805 714-517-7500 Anaheim Union High www.auhsd.us 501 N. Crescent Way, Anaheim 92801 714-999-3511 Brea Olinda Unified www.bousd.k12.ca.us 1 Civic Center Circle, Level II, Brea 92821 714-990-7800 Buena Park www.bpsd.k12.ca.us 6885 Orangethorpe Avenue, Buena Park 90620 714-522-8412 Capistrano Unified www.capousd.ca.schoolloop.com 33122 Valle Road, San Juan Capistrano 92675 949-234-9200 Centralia Elementary www.cesd.k12.ca.us 36625 La Palma Avenue, Buena Park 90620 714-228-3100 Cypress www.cypsd.k12.ca.us 9470 Moody Street, Cypress 90603 714-220-6900 Fountain Valley www.fvsd.k12.ca.us 10055 Slater Avenue, Fountain Valley 92708 714-843-3200 Fullerton www.fullertonsd.org 1401 W. Valencia Drive, Fullerton 92833 714-447-7400 Fullerton Join Union High www.fjuhsd.net
1051 W. Bastanchury Road, Fullerton 92833 714-870-2800 Garden Grove Unified www.ggusd.us 10331 Stanford Avenue, Garden Grove 92840 714-663-6000 Huntington Beach City www.huntington-ca.schoolloop.com 20451 Craimer Lane, Huntington Beach 92646 714-964-8888 Huntington Union High www.hbusd.edu 5832 Bolsa Avenue, Huntington Beach 92649 714-903-7000 Irvine Unified www.iusd.org 5050 Barranca Parkway, Irvine 92604 949-936-5000 Laguna Beach Unified www.lagunabeachschools.org 550 Blumond Street, Laguna Beach 92651 949-497-7700 La Habra City www.lahabraschools.org 500 N. Walnut Street, La Habra 90720 562-799-4700
Lowell Joint www.ljsd.org 11019 Valley Home Avenue, Whittier 90603 562-943-0211
Tustin Unified www.tustink12.ca.us 300 South C Street, Tustin 92780 714-730-7301
Magnolia www.msd.k12.ca.us 2705 W. Orange Avenue, Anaheim 92804 714-761-5533
Westminster www.wsd.k12.ca.us 14121 Cedarwood Street, Westminster 92683 714-894-7311
Newport-Mesa Unified www.nmusd.us 2985 Bear Street, Costa Mesa 92626 714-424-5000 Ocean View School District www.ovsd.org 17200 Pinehurst Lane, Huntington Beach 92647 714-847-2551 Orange Unified www.orangeusd.k12.ca.us 1401 N. Handy Street, Orange 92867 714-628-4000 Placentia-Yorba Linda Unified www.plyusd.org 1301 E. Orangethorpe Avenue, Placentia 92870 714-986-7000 Saddleback Valley Unified www.svwp.svusd.org 25631 Peter A. Hartman Way, Mission Viejo 92691 949-586-1234 Santa Ana Unified www.sausd.us 1601 E. Chestnut Avenue, Santa Ana 92701 714-558-5501 Savanna www.savsd.k12.ca.us 1330 S. Knott Avenue, Anaheim 92804 714-236-3800
utILItIes dIrectory. Cable
Electric
Gas
Trash
Water
Phone
Aliso Viejo
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
CR&R 877-728-0446
Moulton Niguel WD 949-831-2500
AT&T 800-310-2355
Anaheim
Time Warner 714-385-2500
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Anaheim Disposal 714-238-3300
City of Anaheim 714-765-3000
AT&T 800-310-2355
Brea
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Brea Disposal 714-238-3300
City of Brea 714-990-7688
AT&T 800-310-2355
Buena Park
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Park Disposal 714-522-3577
City of Buena Park 714-562-3721
AT&T 800-310-2355
Costa Mesa
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Costa Mesa Disposal 949-646-8400
Irvine Ranch WD 949-453-5300
AT&T 800-310-2355
Coto De Caza
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
OC Waste Mgmt. 949-642-1191
Santa Margarita WD 949-459-6400
AT&T 800-310-2355
Cypress
Time Warner 714-385-2500
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Consolidated Disposal 800-299-4898
Golden State Water 800-999-4033
AT&T 800-310-2355
Dana Point
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
CR&R 877-728-0446
Moulton Niguel WD 949-499-4555
AT&T 800-310-2355
Fountain Valley
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Rainbow Dispos 714-847-3581
City of F.V. 714-593-4420
Verizon 800-483-4000
Garden Grove
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
MG Disposal 714-238-3300
City of G.G. 714-741-5078
AT&T 800-310-2355
Huntington Beach
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Rainbow Disposal 714-847-3581
Huntington WD 714-536-5919
Verizon 800-483-4000
Irvine
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
OC Waste Mgmt. 949-642-1191
Irvine Ranch WD 949-453-5300
AT&T 800-310-2355
Ladera Ranch
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
OC Waste Mgmt 949-551-8580
Santa Margarita WD 949-459-6420
AT&T 800-310-2355
Laguna Beach
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
OC Waste Mgmt. 949-642-1191
South Coast WD 949-499-4555
AT&T 800-310-2355
No. Laguna Hills
Cox 949-240-1212
S.C.E. 800-655-4555
San Diego Gas 800-427-2200
CR&R 877-728-0446
Moulton Niguel WD 949-831-2500
AT&T 800-310-2355
So. Laguna Hills
Cox 949-240-1212
S.C.E. 800-655-4555
San Diego Gas 800-427-2200
CR&R 877-728-0446
El Toro WD 949-831-2500
AT&T 800-310-2355
Laguna Niguel
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
CR&R 877-728-0446
Moulton Niguel WD 949-831-2500
AT&T 800-310-2355
Laguna Woods
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Waste Mgmt. 949-642-1191
South Coast WD 949-837-7050
Verizon 800-483-4000
Cable
Electric
Gas
Trash
Water
Phone
La Habra
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
OC Waste Mgmt. 562-905-9792
City of La Habra 562-905-9731
Verizon 800-483-4000
La Palma
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Park Disposal 714-522-3577
City of La Palma 714-690-3330
AT&T 800-310-2355
Lake Forest
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
OC Waste Mgmt. 949-642-1191
Irvine Ranch WD 949-453-5300
AT&T 800-310-2355
Los Alamitos
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Consolidated Disposal 800-728-0446
Golden State Water 800-999-4033
Verizon 800-483-4000
Mission Viejo
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Consolidated Disposal 800-728-0446
Moulton Niguel WD 949-831-2500
Verizon 800-483-4000
Newport Beach
Cox 949-790-5521
S.C.E. 800-655-4555
Gas Co. 800-427-2200
City of N.B. 949-644-3066
City of N.B. 949-644-3050
AT&T 800-310-2355
Orange
Time Warner 714-903-4000
S.C.E. 800-655-4555
Gas Co. 800-427-2200
City of Orange 714-637-3010
City of Orange 714-288-2475
Verizon 800-483-4000
Placentia
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Placentia Disposal 714-238-3300
Golden State Water 800-999-4033
AT&T 800-310-2355
Rancho Santa Margarita
Cox 949-240-1212
S.C.E. 800-655-4555
Gas Co. 800-427-2200
CR&R 877-728-0446
Santa Margarita WD 949-459-6400
AT&T 800-310-2355
San Clemente
Cox 949-240-1212
San Diego Gas & Electric 800-427-2200
Gas Co. 800-427-2200
CR&R 877-728-0446
City of San Clem. 949-366-1553
AT&T 800-310-2355
San Juan Capistrano
Cox 949-240-1212
San Diego Gas & Electric 800-427-2200
San Diego Gas 800-427-2200
CR&R 877-728-0446
City of SJC 949-493-1515
AT&T 800-310-2355
Santa Ana
Comcast 888-220-6780
S.C.E. 800-655-4555
Gas Co. 800-427-2200
OC Waste Mgmt. 714-558-7761
City of Santa Ana 714-647-5454
AT&T 800-310-2355
Seal Beach
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Consolidated Disposal 800-728-0446
City of Seal Beach 562-347-2105
Verizon 800-483-4000
Stanton
Time Warner 714-903-4000
S.C.E. 800-655-4555
Gas Co. 800-427-2200
CR&R 877-728-0446
Golden State Water 800-999-4033
AT&T 800-310-2355
Tustin
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
CR&R 714-372-8272
City of Tustin 714-573-3075
AT&T 800-310-2355
Villa Park
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Villa Park Disposal 714-238-3300
Serrano WD 714-538-0079
AT&T 800-310-2355
Westminster
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Midway Sanitary 714-893-3553
City of Westminster 714-898-3311
AT&T 800-310-2355
Yorba Linda
Time Warner 888-255-5789
S.C.E. 800-655-4555
Gas Co. 800-427-2200
Yorba Linda Disposal 714-238-3300
Yorba Linda WD 714-777-3018
AT&T 800-310-2355
notes.
erIn & dA n n y wI L L I A ms o n reALtors速
CalBRE# 01168509, 01107239
Erin 714-612-4297 Danny 714-269-4020 erinwrealtor@gmail.com dannywrealtor@gmail.com erinwilliamson.com