BP.02

A HOME BUYER?S GUIDE

BOUTIQUE SERVICE GLOBAL REACH Gayle Qu ill Real Est at e Ag en t | LIC # 1234 5678 Gayle.GQ.com

Gayle@GQ.com

210-126-8080

ABOUT M E GAYLE QUILL Your Dream Home is just waiting for you.

Let'sgo find it, together!

Hi, I?m Gayle Qu ill, yo u r t r u st ed real est at e p ar t n er.

W h et h er yo u ?re b u yin g yo u r ver y f irst h o m e, u p g rad in g t o f it yo u r g row in g f am ily, o r d ow n sizin g t o en joy a sim p ler lif est yle, I?m h ere t o g u id e yo u ever y st ep of t h e w ay.

Real Estate Agent LIC #12345678 M: 210-126-8080 E: Gayle@GQ.com W: Gayle.GQ.com

I u n d erst an d t h at ever y st ag e of lif e c o m es w it h u n iq u e n eed s, an d m y g oal is t o h elp yo u f in d t h e p er f ec t h o m e t h at f it s yo u rs. Let ?s m ake t h is jo u r n ey sm o ot h , exc it in g , an d st ress- f ree.

Tr u st m e t o h elp yo u t u r n yo u r d ream s int o an ad d ress yo u ?ll love.

4937 Telegraph Ave. Suite A, Oakland, CA 94609 EACH OFFICE IS INDEPENDENTLY OWNED AND OPERATED. LIC #20290399

ABOUT

K EL L ER WIL L IAM S A COM PANY CULTURE THAT NURTURES EXCELLENCE It?s not the brokerage that helps you to find your ideal home, it?s the agent.

Keller Williams has consciously created a company culture that attracts, trains, and nurtures the best real estate agents in the world so they will be able to better serve you.

Our company culture has been studied in depth by Stanford University and they found that: ?Keller Williamsis? a company with a unique economic and cultural model, embracing organizational conceptssuch asprofit sharing, shared decision making, open books, and extensive employee training.?

Training Magazine recognized Keller Williams as the world leader in training for 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.

WH Y BUY WITH

K EL L ER WIL L IAM S? W E HELP YOU REACH YOUR GOALS

TECHNOLOGY:

TRACK RECORD:

Leading-edge t ech t ools and t raining give us

I?m proud t o work wit h t he largest real est at e

t he advant age in effect ively finding t he

company in t he world by agent count . When

perfect home for you.

service is consist ent ly superior, word spreads fast

KNOW LEDGE:

RELIABILITY:

Keller Williams Realt y support s every agent

Founded on the principles of trust and honesty,

in st aying ahead of real est at e indust ry

Keller Williams Realty emphasizes the importance

t rends t hrough it s comprehensive, cut t ing-

of integrity and putting the client?s needs first. My

edge t raining curriculum and research

success is ultimately determined by the legacy I

resources.

leave with each client I have the opportunity to serve.

TEAMW ORK: Keller Williams Realt y model was designed t o reward agent s for working t oget her wit h t he idea t hat we are all more successful if we st rive t oward a common goal, rat her t han individual int erest s. I?m confident t hat every Keller Williams professional will serve you in t he best way possible.

W HY PARTNER W ITH KW ?

A net work of over 191,000 real est at e consult ant s wit h a project ed growt h of 300,000

1,100 offices in t he Unit ed St at es and Canada (50)major market s

Named ?Most Innovat ive Real Est at e Company? by Inman News

The largest independent real est at e franchise

Excellence in cut t ing-edge real est at e t raining, real est at e coaching and real est at e educat ion

BUYING OUR W INNING STRATEGY LIFESTYLE ANALYSIS Finding your ideal home is a process of mat ching your lifest yle and financial object ives wit h t he right neighborhood. As a Realt or® wit h experience selling in t his market , I have t he expert ise t o mat ch you wit h t he home t hat fit s your lifest yle. Whet her you want a piece of t he cit y, or a quiet neighborhood wit h t he best schools for your children, I have t he area insight and knowledge you need.

SEARCH ANALYSIS Beyond t he MLS and previewing homes online, finding your ideal home is also about leveraging relat ionships. As your Realt or®, I ut ilize my ext ensive net work and access t o off-MLS (pocket ) list ings on your behalf. To st reamline t he process, I preview homes on your behalf, in addit ion t o t ouring homes and neighborhoods wit h you. I will always keep you well informed of new homes t hat come on t he market .

NEGOTIATE Negot iat ing t erms for t he purchase of what may be your largest personal asset requires a professional who has your best int erest s in mind. Aft er list ening t o your needs, I will vigorously negot iat e t he price, cont ingencies such as inspect ions, appraisals and financing, as well as t he best t ime t o close escrow.

M AKE A W INNER OFFER The Bay Area housing market is ult racompet it ive which is why you need a seasoned professional t o give you a compet it ive advant age and help you t o win t he bid on your ideal home. We will carefully consider if t he home is accurat ely priced for t he size, locat ion, and neighborhood comparat ive sales.

As your consult ant , I will advise you on how t o best posit ion your offer for quick accept ance, t he amount of your down payment and whet her you be should be fully pre-approved prior t o bidding.

COORDINATE Congrat ulat ions! Your offer was accept ed and now t he race begins. The closing of your home is urgent and t ime-sensit ive wit h many st eps t o complet ion.

A unique feat ure of Keller Williams is t hat our cult ure promot es t eamwork. Everyone at t he KW office has a vest ed int erest in helping you close t he purchase of your home as smoot hly and efficient ly as possible. As your agent and project manager, my t eam and I will be t here wit h you t hrough t he end of t he closing process. We will coordinat e t he inspect ions, escrow, and t it le searches, helping you prepare for t he closing of your new home.

PRE-QUAL IFICATION VS. PRE-APPROVAL THERE IS A D IFFERENCE

PRE-QUALIFICATION OR PRE-APPROVAL: Knowing how much you qualify for is an import ant first st ep before st art ing your home search.

Underst anding t he price range you and your agent should focus on, your down payment opt ions, as well as mont hly mort gage payment s ahead of t ime, will help you t o find and close on your ideal home quickly.

PRE-QUALIFICATION Provides you wit h a general est imat e of how much you can expect t o borrow. It ?s easy and can be done over t he phone or online. You provide t he mort gage company or bank wit h informat ion such as your income, debt , and employment informat ion. In ret urn you will be given a loan est imat e.

PRE-APPROVAL It will give you t he exact amount you qualify for and ot her advant ages for making offers in a compet it ive market .

Wit h a pre-approval, t he lender t akes an ext ensive look at your financial pict ure, including t wo years of your W-2s and t ax ret urns, a credit check, debt / income rat io and how much you have for a down payment .

Being a pre-approved buyer let s t he seller know t hat you are in a posit ion t o buy now, which can give you a dist inct advant age when t here are mult iple offers on a home.

Not all loan packages are t he same. Going t hrough t he pre-approval process is a win-win sit uat ion t hat helps t he lender creat e a loan package t hat fit s your needs.

TH E L OAN PROCESS A SERIES OF STEPS TO REACH THE FINISH LINE

PRE-APPROVAL: You will be asked t o provide personal informat ion such as your Social Securit y number, income, asset s, debt s, credit informat ion and t he specifics on t he t ype of propert y you wish t o purchase.

FULL APPLICATION: During t he applicat ion process, t he lender will updat e any informat ion and document at ion t hat has already been submit t ed.

PROCESSING: Your mort gage package will be reviewed and complet ed by t he processor.

LOAN SUBM ISSION: Once t he processor has complet ed t he loan package, it is submit t ed t o t he underwrit er for approval.

LOAN APPROVAL: All part ies are not ified of t he approval and loan document s are complet ed and sent t o bot h t he t it le and escrow companies.

TITLE: The t it le company ensures t hat t he propert y t it le is clear and legit imat e. Once t his process is complet e, t it le insurance is issued for t he propert y.

FUNDING: Once you have signed t he loan document at ion, your lender reviews t he loan package, and upon approval, funds are wire-t ransferred t o t he t it le company.

RECORDATION: When t he t it le company receives t he funds, t hey are released t o t he seller, less t axes and fees and you are recorded as t he owner of your new home.

WRITING AN OFFER W RITING AN OFFER

Here are some general guidelines for writ ing a st rong offer:

1

Review t he relevant sales and market condit ions prior t o making an offer. Fact ors t o

2

Give yourself room t o compet e. Ideally, you will want t o find homes t hat are below your

3

While it is import ant t o offer a price t hat is at t ract ive t o t he seller, t hey will oft en consider

4

Aft er your offer has been writ t en, your agent will meet wit h t he seller?s agent t o negot iat e

5

You will be not ified immediat ely of t he out come. Should t he seller count er, your agent will

consider include t he condit ion of t he home, lengt h of t ime on t he market , compet it ion and urgency of t he seller.

maximum so you have room t o negot iat e on price, t he need should arise.

ot her element s before accept ance. How much money you put down on t he propert y, and any cont ingencies or financing t erms are just a few fact ors t hat may make t he difference.

on your behalf. The seller may accept , reject or count er t he offer wit h changes.

work wit h you t o review each specific request and move t he cont ract forward t o closure.

KNOW WH AT YOU ARE BUYING YOUR OPPORTUNITY TO FIND OUT EXACTLY W HAT YOU?RE BUYING Inspect ions are an import ant part of t he buying process and allow you t o fully underst and any issues or challenges wit h t he propert y before closing t he t ransact ion.

If t he seller has not provided an inspect ion ahead of t ime, you may decide t o writ e your offer wit h an inspect ion cont ingency. This is one of t he more common cont ingencies t hat buyers use.

A cont ingency means t hat you will only go t hrough wit h t he purchase if cert ain condit ions are met .

Home inspect ions should be only done by a cert ified home inspect or, and t hey are usually paid for by t he buyer.

Oft en, a seller will have inspect ions complet ed prior t o placing t heir home on t he market t o remove t he ?cont ingency? from t he buyers bid. Ult imat ely, it is t he buyer?s responsibilit y t o assess t he condit ion of t he propert y.

PEST INSPECTIONS As wit h t he home inspect ion, t he buyer pays for t he pest inspect ion, however t he inspect or is responsible t o deliver an unbiased report , regardless of whet her t hey favor t he buyer or t he seller.

Pest inspect ions are also done by a licensed inspect or who will look for wood-dest roying organisms, including t ermit es and fungi (?dry rot ?). Pest report s classify condit ions as Sect ion 1 or Sect ion 2 it ems.

SECTION 1:

SECTION 1:

Condit ions demonst rat ing act ive

Condit ions not current ly causing

If damage is found in t he

infect ions or condit ions damaging

damage but likely t oo, if left

propert y, such as a crack in

t he propert y. Act ive t ermit es,

unat t ended. A t ypical Sect ion 2

t he foundat ion or a roof t hat

beet les, or wood rot are examples

it em is a plumbing leak where

needs t o be replaced, you may

of Sect ion 1 it ems.

moist ure has not yet caused

be able t o negot iat e wit h t he

fungus decay.

seller on remediat ion opt ions.

TH E 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.

Esc r ow p r o t ec t s b o t h yo u an d t h e seller b y m an ag in g t h e f o llow in g t ask s: - 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.

- Ensuring the paperwork is legal and binding.

- Recording the transfer documents and insuring their accuracy.

- Receiving the down payment from the buyer.

- Providing a title report and title insurance.

- Receiving funds from the buyer?s lender.

- Ensuring that state and local transaction

- Paying liens, overdue tax, and HOA dues.

laws and rules are followed.

- Obtaining all necessary and notarized signatures from all parties.

- Distributing proceeds to the seller.

ESCROW FAQS W hen do w e need to open escrow ?

We will open escrow on your behalf aft er t he cont ract has been signed by bot h you and t he seller. Aft er escrow is opened, you have t hree days t o wire your 3% deposit money int o escrow.

W hat does an escrow officer do?

Your escrow officer will oversee all aspect s of your real est at e t ransact ion, such as signing paper-work, complet ing a t it le search and obt aining hazard and t it le insurance.

W hy do propert ies fall out of escrow ?

Oft en, t here is a problem wit h t he loan where t he appraisal comes back lower t han t he offer price or a st ruct ural problem is discovered during an inspect ion.

How long does escrow t ake?

The lengt h of escrow is det ermined by t he purchase agreement . Depending on t he t erms, it can last a few or even 90 days. A t ypical escrow in Bay Area is 21-30 days.

WH O PAYS WH AT? BUYER AND SELLER FEES

M any fees are negot iable; however, t here are some fees t hat you and t he seller are required t o pay.

B u yer t y p ic ally p ay s:

Seller t y p ic ally p ay s:

- Inspections

- Real Estate commissions

- Their share of escrow fees from the

- Any judgments or tax liens

- title company

- Any unpaid homeowner?s dues

- Loan fees required by your lender

- Transfer taxes

- Title insurance premium

- Delinquent property taxes

- Fire and hazard insurance premium

- Their share of escrow fees from the title company

CL OSING COSTS W HAT YOU NEED TO KNOW

Closing cost s are fees paid by t he buyer and t he seller at t he close of your home. During t he escrow process you will have received a Good Fait h Est imat e which includes your closing cost s and set t lement charges.

Typically, closing cost s are 1-2% of t he purchase price of your home. A few days prior t o closing, your lender will give you a det ailed breakdown in t he Closing Disclosure St at ement .

W h at ?s In clu d ed ?

Closing cost s include loan originat ion fees, discount point s, appraisal fees, t it le searches, t it le insurance, surveys, t axes, deed-recording fees, init ial deposit for your escrow account , home owners insurance and credit report charges.

In addit ion, t here are nonrecurring cost s and pre-paid cost s. Nonrecurring cost s are onet ime fees associat ed wit h buying a propert y or get t ing a loan. Prepaid cost s are t hose t hat recur over t ime, such as propert y t axes and homeowner?s insurance

ABOUT PROPERTY TAXES AN OVERVIEW HOW IS REAL PROPERTY ASSESSED? Real propert y is assessed upon change of ownership and, in cert ain circumst ances, t he const ruct ion of improvement s. The new assessed value is equivalent t o t he purchase price and is subject t o being increased by as much as 2% each year.

HOW ARE PROPERTY TAXES BILLED? Propert y t axes are billed annually and paid in t wo equal inst allment s. You can also have your t axes impounded mont hly. An impound account is managed by your mort gage company. As t he homeowner, you pay for propert y t axes and insurance along wit h your mort gage payment . When your propert y t axes are due, t he mort gage company sends t he money t o t he t ax collect or or insurance company.

W HEN ARE PROPERTY TAXES DUE? The fiscal year runs from July 1 t hru June 30.

The first inst allment is due November 1 and it is lat e December 10. The second inst allment is due February 1 and it ?s lat e April 10. You can remember t hese dat es wit h t his mnemonic device: No Darn Fooling Around = November it ?s due, December it ?s lat e. February it ?s due, April it ?s lat e.

W HEN DO I START PAYING M Y PROPERTY TAXES? Aft er change of ownership, a supplement al t ax bill may be issued t o collect t axes owing for t he current t ax year based on t he difference bet ween t he previous and t he new assessed values of t he real propert y. The seller is responsible for t he payment of t axes due prior t o close of escrow, and t he buyer is responsible for t he payment of t axes due aft er close of escrow, including any supplement al t ax bill.

HOW IS THE BASE PROPERTY TAX RATE SET? Under Proposit ion 13, passed by California vot ers in 1976, t he base propert y t ax rat e is set at 1% of t he full cash (or assessed) value of real propert y.

W HAT ARE M ELLO-ROOS? Real propert y can be subject t o cont inuing t ax levies under t he M ello-Roos Act . Such levies are used t o finance cert ain designat ed public services and capit al facilit ies. Among t he services and facilit ies t ypically financed t hrough ?M ello-Roos dist rict s? are police and fire prot ect ion services, ambulance and paramedic services, parks, element ary and secondary schools, libraries, museums, and cult ural facilit ies.

M ARK YOUR CALENDARS! PROPERTY TAXES: DUE DATES FEB RUA RY 1st - 2n d In st allm en t D u e

JULY 1st - B eg in n in g of Fiscal Year

M A RCH 1st - Assessm en t D at e

N OVEM B ER 1st - 1st In st allm en t D u e

A PRIL 10 t h - 2n d In st allm en t D elin q u en t at 5p m

D ECEM B ER 10 t h - 1st In st allm en t D elin q u en t at 5p m

COM M ON FORM S OF OWNERSH IP TITLES MATTER How you hold t it le has import ant t ax and inherit ance implicat ions. If you are unsure which is t he best for you, please consult your At t orney, CPA or Financial Planner. The comparison chart below is provided for informat ion only.

It should not be used t o det ermine how you hold t it le. We st rongly recommend t hat you seek professional counsel t o det ermine t he legal and t ax consequences of how t it le is vest ed.

Communit y Propert y

Joint Tenancy

Tenancy I n Common

Tenancy I n Part nership

Tit le Holding Trust

Communit y Propert y Right of Survivorship

Part ies

Only husband and wife

Any number of persons (can be husband and wife)

Any number of persons (can be husband and wife)

Only partners (any number)

I ndividuals, groups of persons, partnership or corporations, a living trust

Only husband and wife

Division

Ownership and managerial interests are equal (except control of business is solely with managing spouse)

Ownership interest must be equal

Ownership can be divided into any number of interests equal or unequal

Ownership interest is in relation to interest in partnership

Ownership is a personal property interest and can be divided into any number of interests

Ownership and managerial interests are equal

Tit le

Title is in the ?community.? Each interest is separate but management is unified

Sale or encumbrance by joint tenant servers joint tenancy

Each co-owner has a separate legal title to his/ her undivided interest

Title is in the ?partnership?

Legal and equitable title is held by the trustee

Title is in the ?community,? management is unified

Possession

Both co-owners have equal management and control

Equal right of possession

Equal right of possession

Equal right of possession but Right of possession as only for partnership purposes specified in the trust provisions

Both co-owners have equal management and control

Conveyance

Requires written consent of other spouse or actual conveyance by deed.

Separate interest is devisable by will

Conveyance by one co-owner without the others breaks the joint tenancy

Each co-owner?s interest may be conveyed separately by its owner

Purchaser acquires interest that partnership owned

Designated parties with the trust agreement authorize the trustee to convey property. Also a beneficiary?s interest in the trust may be transferred

Right of survivorship may be terminated pursuant to the same procedures by which a joint tenancy may be severed

Purchaser?s St at us

Purchaser can only acquire whole title of community; cannot acquire a part of it

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

Purchaser will become a tenant in common with other co-owners in the property

Purchaser acquires interest that partnership owned

A purchaser may obtain a beneficial interest by assignment or may obtain legal and equitable title from the trust

Purchaser can only acquire whole title of community; cannot acquire a part of it

Deat h

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

On co-owner?s death his/ her interest ends and cannot be disposed of by will. Survivor owns the property by survivorship

On co-owner?s death his/ her interest passes by will to devisee or heirs. No survivorship right

On partner?s death his/ her partnership interest passes to the surviving partner pending liquidation of the partnership. Share of deceased partner then goes to his/ her estate

Successor beneficiaries may be named in the trust agreement, eliminating the need for probate

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

Successor?s St at us

I f passing by will, tenancy in common between devisee and surviving results

Last survivor owns property

Devisee or heirs become tenants in common

Heirs or devisee have rights in partnership interest but not specific property

Defined by the trust agreement, generally the successor becomes the beneficiary and the trust continues

Surviving spouse owns property

Credit or?s Right s

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

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 becomes a tenant in common

Partner?s interest cannot be seized or sold separately by his/ her personal creditor but his/ her share of profits may be obtained by a personal creditor. Whole property may be sold on execution sale to satisfy partnership creditor

Creditor may seek an order for execution sale of the beneficial interest or ma seek an order that the trust estate be liquidated and the proceeds distributed

Property of community is liable for debts of either which are made before or after marriage; whole property may be sold on execution sale to satisfy creditor

Presumpt ion

Strong presumption that property acquired by husband and wife is community

Must be expressly stated

Favored in doubtful cases except husband and wife cases

Arise only by virtue of partnership status in property placed in partnership

A trust is expressly created by an executed trust agreement

Must be expressly stated

Chart court esy of Fidelit y Nat ional Tit le Insurance Company

FREQUENTL Y ASK ED QUESTIONS ANSW ERED HOW W ILL YOU TELL M E ABOUT THE NEW EST HOM ES AVAILABLE? The M ult iple List ing Service Websit e provides up-t o-dat e informat ion for nearly every home on t he market . I const ant ly check t he New on M arket list and will send you t he lat est list ings via email at a frequency t hat ?s most helpful for you, daily or in real-t ime.

W ILL YOU INFORM M E OF HOM ES FROM ALL BAY AREA REAL ESTATE COM PANIES OR ONLY KELLER W ILLIAM S REALTY? I will keep you informed of all homes t hat come available, including off-market deals, t o help you find your ideal home.

CAN YOU HELP M E FIND NEW CONSTRUCTION HOM ES? Yes, I have access t o all t he new const ruct ion opport unit ies in t he cit y and can get you t he informat ion you need t o make a decision. I will accompany you on your first visit wit h t he builder. By using my services wit h a new const ruct ion home purchase, you will receive t he services I offer, as well as t hose provided by t he builder, at no addit ional cost .

HOW DOES FOR SALE BY OW NER (FSBO) W ORK? Homeowners t rying t o sell t heir home wit hout agent represent at ion are usually doing so in t he hopes of saving t he commission. If you see a FSBO and want t he advant ages of my services, let me cont act t he owner for you and make an appoint ment . Oft en, t he homeowner will work wit h an agent , even t hough t heir home is not list ed since t he agent is int roducing a pot ent ial buyer t o t heir propert y. While you may get a deal buying direct ly from t he seller, if t hey are not a licensed agent , it may be a challenging experience.

CAN W E GO BACK THROUGH OUR PROPERTY AGAIN ONCE AN OFFER IS M ADE BUT BEFORE POSSESSION? You should complet e all of your inspect ions and walk-t hroughs before removing any cont ingencies.

If you need t o see t he propert y again for any reason, we can make a special request t o t he seller for access.

They oft en allow it , but t hey are not required t o do so. Just prior t o closing, we will schedule a final walkt hrough and inspect ion of your new home.

W HAT HAPPENS AFTER THE CLOSE OF ESCROW ?

You can celebrat e and shift your focus t o moving int o your new home. You will want t o schedule your move, pack it ems, and not ify businesses of your address change. I can provide you wit h a moving checklist t o help you remember all t he det ails.

TH ANK YOU LET?S GET STARTED Again, t hank you for t he opport unit y t o present my proven winning buying st rat egy t o help you find and purchase your propert y. I am excit ed and honored t o be helping you on your journey t o home ownership.

GAYLE QUILL Real Estate Agent LIC #12345678 M: 210-126-8080 E: Gayle@GQ.com W: Gayle.GQ.com