Agent Buyer's Guide

Buyer’s Guide To Purchasing a Home in Austin

LANDER PEERMAN

Group landerpeerman.com

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Table of Contents

Market Update

4

Buying Process

7

Meet the Team

21

About Douglas Elliman

23

Interested Properties

24

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Market Update LANDER PEERMAN

Group

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Market Update February, 2022 Austin - Luxury Market Insights (1M+) Active Listings

Months of Inventory

Total Sales

349

1.9

181

Closed Days On Market

29

Average Sales Price

$1,726,631

Avg. Sales Price PSF

$545

Buyer’s vs Seller’s Market The Austin area is in a seller’s market. A seller’s market occurs when demand exceeds supply. To put it another way, real estate inventory is low, and there are not enough homes for sale - aka low inventory. These conditions give sellers leverage over buyers because when supply is low and demand is high, the market is forced to respond.

In a buyer’s market, real estate prices decrease, and homes linger on the market longer. In a seller’s market, homes sell within days -sometimes hours - and prices rise rapidly. Typically, buyers will make offers well over the list price (15-30% in Austin) to compete. Furthermore, sellers are much less willing to negotiate during the option period as they often have another buyer waiting in the wings.

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Market Conditions & Changes At this time we are experiencing an unprecedented demand for housing. Coupled with an extremely low housing inventory, the results are constantly changing. Homes are selling quickly and often well above the listing price. We will evaluate all of this together.

Appraisal Waiver As homes continue to rise in value, many of them are not meeting this value during appraisal. As a result, buyers are often being asked to waive their appraisal contingencies and make up the difference between the appraised value and the sales price in cash. This can also be accomplished as a partial waiver. You may be asked for a “proof of funds” in this amount.

Due to low inventory, expect to make some compromises on your criteria.

Here are some ways we are pivoting our model due to these conditions: • •

Searching areas for off-market homes, including “coming soon”, expired, temporarily off-market, terminated, and “For Sale By Owner” listings from Zillow and Facebook.

Leveraging relationships with top agents in your area of interest

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Buying Process LANDER PEERMAN

Group

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Buying Process

1 Choose a Realtor Purchasing a home is one of the biggest decisions of you and your family’s lives. Let Douglas Elliman Real Estate help. All of our Realtors are experienced, full-time, agents licensed by the state of Texas, who specialize in making the buying process as easy and stress-free as possible. No firm knows the Austin area better than we do

4 Decide on Your Wants and Needs Make a wish list of what you want in a home before you start looking.

Include what you want and what you need, which items you are willing to give up and which are most important. This will help you decide which type of home will be the best fit: new construction or an older home;

2 Qualify for a Loan

single family, townhome or condominium.

Your Douglas Elliman Realtor will guide you through this process.

Frequently, the seller will request a pre-approved letter when an offer is presented.

5 Submit an Offer All copies, forms and documents required for signature, will be provided

3 Decide on Location

to you by your Douglas Elliman Realtor. You will come to appreciate the seasoned negotiation skills of your sales associate during this stage.

Issues to consider include the price of properties, the school district,

He or she will take care of every detail, such as helping you choose a

travel distances to work and school, property taxes, and area

qualified home inspector.

amenities. Your Douglas Elliman Realtor will provide you with detailed information about the neighborhoods you are interested in, and coordinate the showings of appropriate properties.

6 Close the Transaction Your Douglas Elliman Realtor will continue to represent your best interests all the way to closing. Our two buyer’s checklists (1) Prior to Closing and (2) Required at Closing will help you know what to expect.

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Why Hire a Realtor® There are four ways in which you can be represented by a real estate agent during the process of buying a home. Buyers are sometimes not aware that an agent can represent their interests exclusively and negotiate on their behalf.

1 Unrepresented Buyer When you work without a buyer’s agent representing you, the seller’s agent’s fiduciary duty is exclusively to the seller. In this scenario, a buyer should not mention anything they do not want the seller to know because the seller’s agent must disclose to the seller any important information that affects the home sale. This is important to remember when meeting listing agents at open houses or inquiring about listings.

2 Buyer Representation When you hire an agent to represent you, their fiduciary duty is solely to you. The agent must put your interests as a buyer first and must provide you with any important information that affects your home purchase. This allows both parties to be represented equally.

3 Intermediary Representation An Intermediary Relationship occurs when one Broker/Company represents both parties in a transaction and assigns agents to represent each party exclusively. Each party of the transaction will agree to the relationship in writing. If the home you buy is listed with another Douglas Elliman agent, then I will be assigned to you in an intermediary capacity. The other Douglas Elliman agent will represent the seller. I will still have exclusive fiduciary duty to you and cannot disclose any of your information to the seller or the seller’s agent.

4 Subagent-No Buyer Representation Agreement If an agent shows you homes without having you sign a Buyer Representation Agreement, they are, by law, acting as a subagent to the seller and have fiduciary duties to the seller, not the buyer. In this case, the buyer should not reveal any confidential information as the subagent must disclose to the seller any material information they may know.

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Financing Overview Apply For a Loan Working with a lender is an important early step in the home buying process. Applying for a loan is time consuming and so it is important to begin the paperwork as soon as possible.

What You Need •

Pay Stubs

•

W-2 Forms

•

Bank Statements

•

Information about other loans

Once you submit your application, your lender will provide a Loan Estimate, which will state the terms of your loan and total estimated costs.

What Your Lender Handles •

Home Appraisal

•

Underwriting

•

Credit Report

Once you submit your application, your lender will provide a Loan Estimate, which will state the terms of your loan and total estimated costs.

Lock in Your Rate Once you receive a loan with a favorable interest rate, proceed with that. Most lenders will lock in your chosen interest rate for 30-60 days to give you enough time for approval and closing on your home.

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Financing Getting Started

1 Clean Up Your Credit Banks use credit scores to evaluate the risk of lending to individuals. If you know you’ll need to borrow money from a bank to finance your home, learn your credit score as soon as possible and work to boost it as needed. Reputable credit score websites will provide your credit details without damaging your score.

2 Prepare Your Savings You typically could be asked to put down as much as 20% of the sale price upfront, plus additional closing costs. Your real estate agent will be able to provide you with a complete breakdown of these associated costs.

3 Get a Pre-Qualification Estimate This can easily be done over the phone with your bank or mortgage professional. A loan officer will ask you about your income, assets, debts and projected down payment. They will then determine the amount you’ll most likely qualify for based on the information you’ve provided.

4

Complete Loan Pre-Approval After pre-qualification, you’ll want to work with a lending institution to receive a written “good-faith” estimate of the amount you’ll be able to borrow. This step requires an in-person appointment and a possible fee. You’ll be expected to submit more information, such as pay stubs, bank statements, tax returns and other financial documents. Once you receive your pre-approved loan statement, it is normally valid 60 days.

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Starting Your Home Search It is important to understand and evaluate your home buying needs in your first meeting. This will better prepare your agent to help you locate your dream home.

New Construction vs. Resale Homes New construction homes are typically lower maintenance, easily customizable, and come with warranties from the builder. If you are looking for a home that will be a great canvas for renovations or models, then resale would be a great option.

For Sale by Owner Sellers occasionally choose to list their homes themselves rather than with an agent. We will work together to help you locate and work with these sellers.

Foreclosures and Short Sales The process for buying foreclosed and short sale homes is incredibly different from a regular home purchase. Due to the complications, you will need an experienced agent to guide you through the process.

MLS Search The Douglas Elliman website syncs with the MLS to ensure you have access to the latest listings.

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12

New Construction House Hunting When purchasing a new construction, there are two main options for you to consider:

1 To-Be-Built

• Buyer chooses the floor plan, lot, and makes selections • Price consists of: o Base Price o Lot Premium o Design Upgrades o Structural Upgrades • The time from contract to close is between 7-10 months

PRO TIPS: Partner with a Trusted DE Agent Your agent will serve as your advocate throughout the process of negotiating a new, finished home as well as through the building phase of a “to-be-built” home. This includes helping you arrange pricing and terms, navigate builder contracts, and more.

Set a Budget for Upgrades It is important to set a budget for upgrades and prioritize what is best to have the builder incorporate now versus what might need to wait for later.

Bring Us To Your First Appointment Some builders might suggest or require that an agent attend the first meeting at a model home in order to represent you.

2 Spec/Inventory • Builder chooses the floor plan, lot, and makes selections • Builder sets a price which includes base price, lot premium, and upgrades • Builder sets an estimated completion date and buyer can purchase prior to completion

Make Timely Decisions “To-be-built” homes often have decision deadlines for floor, paint, cabinet, and hardware selections. Stick to the builder’s schedule to avoid closing delays.

Prepare for a Change of Closing Date Construction delays are common. Thus it is best to have a place lined up for 60-90 days after your tentative closing date.

Get an Inspection While most new homes come with a warranty, to prevent headaches it is best to hire a home inspector to inspect your new priority to spot punch list items and issues prior to move-in.

Prepare for “Preferred Builder Lenders” Builders often partner with mortgage companies to offer incentives in exchange for using their lender of choice. To ensure you get the best deal, it is best to compare all of your options before you decide.

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House Hunting Process The Process: • Make a list of your top 4-6 homes • We will schedule the showings with the listing agent/seller/Builder (24 hr notice is preferred) • “Decision makers” should be present at the showings • After we view all of the homes, we will rank them.

• Our typical buyer views between 5-10 homes to find their match.

Pro Tips • Make sure you take a look at the neighborhood during different times of the day.

• Determine what is included in the HOA and what the ultimate fees are.

• Evaluate the potential utility costs.

• Talk to neighbors.

• If you pull up to a house and you are not interested, please let us know.

• It’s okay to fall in love with the first home.

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Make An Offer •

Sales Price: We’ll discuss a competitive offer based on the specific home you are interested in purchasing

•

Earnest Money Deposit: Typically 1-2% of the purchase price. This is your “Good Faith Deposit” held by the Title Company due within 3 days of execution (wired or personal check)

•

Option Period: Due diligence period where buyer has the “unrestricted right” to back out.

•

Option Fee: $500-$1500 - Due within 3 days of execution (wired or personal check)

•

Owner’s Title Policy: (Title Insurance) Based on the sales price ($300k - $2k | $500k - $3k | $750k - $4,500 | $IM - $6k).

•

Survey: Shows the footprint of the property, including boundaries, easements, encroachments, etc. ($500-700).

•

Home Warranty: Covers appliances for the first year of the home ($500-600).

•

Closing Date: Typically -30 days from an accepted offer

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Multiple Offers Your “Walk Away” Price Know when you have reached your affordability or comfort limit. Talk to your real estate agent about the maximum price you are truly willing to pay during this process.

Small Changes That Make a Big Difference Between flexible closing dates to increased earnest money and option fees, there are many avenues to increasing the odds of a seller accepting your offer.

It is important to discuss with your agent in advance to determine which items might be of importance to the seller of your desired home.

Here are some ways to strengthen your offer: • Have pre-approval letter or proof of funds.

• Make a cash offer if you are able. If not, make as large a down payment as possible.

• Use a local lender that communicates effectively with all parties.

• Offer more than the asking price.

• Keep your offer clean and simple.

• Waive the appraisal and financing contingencies if you can.

• Shorten the option period.

• Have your earnest deposit ready.

• Offer to pay for the seller’s closing cost or at least the title insurance policy.

• Offer flexibility with your closing date.

• Include a personal letter with a family photo.

• Offer an additional earnest deposit after the inspection period.

• Be diplomatic with negotiations. Remember that the seller has other interested parties to fall back on.

Best and Highest In a multiple offer situation, many agents will ask for each party to submit their “best and highest” offer. Usually, there are no revisions to this once submitted. In order to maximize your chance of getting the property, speak with your agent about your offer as soon as possible.

Please - Don’t Take it Personally!

We know that emotions can often run high during this stressful time. Both parties are simply trying to negotiate for the best solution for their needs and finances.

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Inspections & Repairs • It is highly recommended that you hire a licensed home inspector to perform a third party inspection (even when purchasing new construction).

• Inspectors are licensed through TREC and their job is to identify any deficiencies in the home.

• The home inspection is scheduled during the Option Period and typically costs between $350 - $550. o Please note there are additional costs for pools, septic systems, pier and beam foundations, etc • The inspection report is typically sent directly to the buyer within 24 hours of the inspection.

When negotiating, it is important to see what affects to functionality of the home. There are five things we will focus on during this process: • HVAC • Plumbing • Electrical/Safety Hazards • Foundation • Roof

There are 3 common ways that repairs are negotiated: • Ask the seller to make repairs • Ask the seller for money towards your closing costs • Ask for a reduction of the sales price

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Getting An Appraisal • An appraisal is a subjective third party opinion of the home’s value performed by a licensed appraiser.

• Appraisal is ordered by the buyer’s lender and paid for by the buyer. We recommend budgeting $600, though rush fees may increase the cost.

• Ideally, the appraiser will appraise the home at or above the sales price.

• Due to rapid rising home values, it’s not uncommon for the appraisal to come in lower than the sales price. Appraisal concerns will be discussed prior to offer submission and mitigated through communication with the listing agent, appraiser and sharing of market data. If you waive the appraisal contingency, you will be responsible for making up any appraisal differences in cash. You agent can guide you through this process in more detail.

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Final Walkthrough Closing Day The Walk-through Why The walk-through is an important part of the due diligence process. We must ensure that negotiated repairs have been completed, that the seller has truly vacated the home, and that no damage was done during the move-out process. You can also check that any non-realty items negotiated remain in the home.

When Walk-th roughs generally occur the day before or the morning of the closing. This timing is flexible.

How Long Generally speaking a final walk through takes about 30 minutes

Closing Day Identification Please bring your driver’s license or passport for identification. The title company cannot close your property sale without these IDs.

Cashier’s Check or Wire Transfer Confirmation Please bring a cashier’s check (no personal checks) or your wiring instructions and confirmation number for your down payment funds to provide to your title company closer.

Check for Last Minute Adjustments In case of small last-minute adjustments, a personal check is nice to have on hand.

Funding Please note you will not receive keys until the Title Company authorizes funding.

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Buyer Representation Documents In order to receive the highest level of representation and service, the next step is for you to sign the required documents. Below you will find a description of the documents you’ll need to sign to move to the next step of the home buying process: • Information About Brokerage Services: An informational document required by the Texas Real Estate Commission (TREC) which explains a broker’s minimum duties to their clients. It also defines the different types of agency.

• Buyer Representation Agreement: An agreement that officially allows me to represent you while we search for a home. Without a Buyer Rep. in place, I can assist you but do not represent you and must place the interests of the owner first (see “Subagent” on the LABS document).

• General Information & Notice to Buyer: An informational document that acts as a glossary of terms you may encounter throughout your home buying experience.

• Wire Fraud Warning: An informational document that warns you about the dangers of wiring funds without confirming wiring instructions with the Title Company.

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Meet The Team Lander Peerman Global Real Estate Advisor c. 512.517.2514 lander@landerpeerman.com @lanerpeerman

For Lander Peerman, helping her clients buy or sell their dream home is an incredibly rewarding process. From first-time homebuyers to seasoned investors and everything in between, there isn’t a real estate challenge that Lander won’t dive into with determination and passion.

Additionally, Lander’s love for design is apparent when you walk through any of her listings. From trendy bungalows in Zilker to mid-century modern Tarrytown homes, to house renovation projects in Northwest Hills, Lander’s eye for design is unparalleled. Most importantly, the natural-born communicator and leader make her clients feel like friends, and you’ll often find her out and about with them at her favorite Austin hot spots.

Shaine Rozman Realtor Associate c.512.718.1907 shaine.rozman@gmail.com

Born and raised in Austin, Texas, Shaine couldn’t be more proud to call this her home. Since she can remember, Rozman has always taken an interest in architecture and real estate. Teaming up with Lander Peerman was a no brainer, as she wanted to made her way into the luxury real estate market after her schooling. The new duo happily made themselves at home at the Douglas Elliman, and couldn’t be happier about what the coming years have to bring. When Shaine isn’t closing deals, she is working out at Barry’s Bootcamp, shopping, or finding the next best brunch spot in Austin.

As a native Austinite, Lander grew up alongside her father and grandfather, both of whom spent their lifetimes in the real estate industry. After living in New York City and Dallas, and founding two successful businesses, one of them located in the heart of Austin, it was only natural that Lander would launch her own real estate career. Her wealth of knowledge and expertise in central Austin neighborhoods makes her an extremely savvy resource for clients moving to Austin for the first time. Combine that with her professional connections across the US, including in luxury markets in Dallas and Aspen, and Lander becomes a unique and invaluable asset for all her clients.

Lander’s incredible level of service is seen from start to finish when she is guiding her clients through their real estate transactions.

Hence, it was only natural to join the Douglas Elliman’s team to continue to align herself with other brokers and agents who deliver an unbeatable level of professionalism and world-renowned service for luxury real estate.

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Let’s Connect on Social

Lander Peerman: Instagram: @landerpeerman TikTok: @lpeerman Youtube: Lander Peerman

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Interested properties: THE PROPER

THE AUSTONIAN

5TH & WEST RESIDENCES

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THE PROPER

600 West 2nd St.

For future owners of Austin Proper Residences, elevated living begins with 32 stories of glass and skyline views. Atop the Austin Proper Hotel, this limited collection of 99 condominium residences and penthouses is part social club, part high-design hideaway—right in the cultural constellation of downtown’s Second Street District. Consider it the Proper place to live and thrive.

The top 20 floors of Austin Proper’s tower offer 1, 2, and 3 bedroom Residences and panoramic-view 4 and 5 bedroom Penthouses curated with the finest luxury details and finishes. This design-forward aesthetic cultivated by interior designer Kelly Wearstler sets a new standard for downtown Austin living.

- Residences range from 921 to 2,608 square feet.

- Penthouses range from 3,425 to 6,789 square feet.

- Proper mobile and tablet Proper App linking residents to a wide range of in-home hotel services and amenities - Pre-wired for high-speed communications and fiber-optic cable - Electronic access controlled building entry points and 24-7 security - Wi-Fi available throughout the entire building and outdoor amenity areas - 24-hour doorman-front desk - Urban Spa Getaway - State of the art fitness center - Two pools, one exclusive to owners.

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THE AUSTONIAN

200 Congress Ave.

Unlike many other urban residential projects, The Austonian privileges the idea that homeowners should live in a home that feels like the individual expression of their personal style. To this end, The Austonian has launched a new phase of unit design and construction in the building – based on the market demand for curated designs and floorplans – brought to you by two luxury firms GREER Interior Design and Ryan Street & Associates.

At The Austonian, a resident’s home encompasses much more than the typical downtown condo. It extends beyond the unit itself to the 40,000 square feet of luxe amenity spaces located on the 9th, 10th, 55th and 56th floors of the building, which are available for resident use.

Amentities: - The Fitness Center is located on the top floor of the building where each resident can enjoy inspiring 360-degree views.

- The lawn- 12,000 sqft lawn on the 10th floor - 75 ft. lap pool - Spa room - Dog Grooming - Dog Park - Library - Theatre - Conference room - 55th Floor Austonian Club - Wine Cellar

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5TH & WEST RESIDENCES

501 West Ave.

Fifth & West offers a bespoke collection of one to four bedroom residences thoughtfully designed with custom finishes, expansive windows, and spacious closets, showers, and pantries to make you feel at home.

Impeccably designed to capture the Austin lifestyle, Fifth & West is a 39-story landmark sculpture. The unique triangular design beautifully reflects the Austin skyline. Fifth & West is crafted to complement Austin’s atmosphere, blending the eclectic, the outstanding, and the familiar.

OVER 20,000 SQUARE FEET OF AMENITY SPACE: :Pet Verandah - Indoor climate-controlled lounge you and your neighbors will want to linger in, with wall-mounted flat screen television, coffee maker and wifi - Open-air lounge space for enjoying pleasant weather with excellent company - Refreshment area offering water and treats for pets - Conveniently placed pick-up posts with cleaning supplies - Bathing stations for large and small breeds - Sophisticated finishes curated by Michael Hsu Office of Architecture - Portico with outdoor fireplace connected to the indoor media lounge accessible through a sliding glass wall allowing residents to enjoy events in all seasons - Resort-style pool and wet deck with soothing ornamental water feature - Outdoor bar and grill area with provisions for hosting an outdoor event from a barbecue to a cocktail party - State-of-the-art fitness center with weight-training equipment, yoga studio and Fitness OnDemand virtual instruction

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