Marissa Castellos's Buyers Guide

BUYER'S

EXPERIENCE. EXCELLENCE. ELEGANCE. RESULTS!

An innovative, full service, boutique real estate firm, Maison Real Estate has a culture of excellence that underpins everything we do. We deliver valuable and dedicated services to our loyal clients, whether they are buying or selling a home. We offer comprehensive customized services and strive to redefine the real estate industry through our curated client experience, innovative and solutions-driven marketing strategies, and concierge level service.

No one serves the Charleston area market better than Maison Real Estate. Purchasing a home in today’s fast-paced, competitive market can be challenging, and Maison Real Estate is the right choice to be your strategic partner to advise and guide you through your property journey. The difference is in the details!

We pride ourselves in implementing our marketing prowess, innovative use of technology, intimate knowledge of the market, and deep connections in Charleston and beyond to maximize your ability to find your dream property. We created this guide to educate you as a Buyer and empower you to make an informed decision when selecting the best agent, and the best company to help you find the perfect property. We appreciate the opportunity to earn your business.

ABOUT MAISON

“‘REDEFINING AND ELEVATING THE CLIENT SERVICE EXPERIENCE IN REAL ESTATE IS OUR MISSION AND IS THE ESSENTIAL TENET UPON WHICH OUR BRAND WAS FOUNDED.”

Our clients always come first, no matter what. Luxury is not a price point, it’s a level of service.

Maison’s high-level concierge service is offered to all clients - whether they are first time home Buyers or Sellers of iconic properties. With a proven track record of success, a customized skill set, deep network of resources, decades of collective experience and hundreds of millions of dollars in closed sales, the Maison team has the experience as well as the right tools to assist you in finding your perfect home. Who you choose to represent you and your interests matters, especially in the nuanced and highly competitive Charleston area real estate market.

Maison’s experienced professionals are highly regarded for our commitment to excellence and utmost integrity. Maison strives to be at the forefront of innovation, delivering ideas, connections, tools, technology, marketing and public relations to raise the standard of excellence in the real estate space, which sets us apart from our competitors. We have deep roots in the community and an impressive list of sales successes that have enabled Maison to quickly become a luxury brand and a respected local leader in the Charleston area real estate market.

Maison’s agents consistently rank in the top 1% of agents in the area, win awards, and hold records for some of the highest profile and highest priced sales downtown, in Mount Pleasant, Daniel Island, the beaches, and on Kiawah Island. Maison agents are intimately familiar with the Charleston area real estate market and may be able to identify off-market opportunities for you. This is crucial in a highly competitive market. We give our clients more than a home or a successful transaction; Maison delivers an exceptional real estate experience.

WHO YOU WORK WITH MATTERS!

MARKET EXPERTISE

Maison agents have a deep understanding of the local housing market, including current trends, pricing, and inventory. They can provide valuable insights and advice to help buyers navigate the market and find the right property.

ACCESS TO RESOURCES

Our agents have access to a wide range of resources and tools, such as on and off market property listings, market data, and financial calculators that can help buyers make informed decisions.

NEGOTIATING

Maison agents are skilled negotiators who can help buyers secure the best possible deal on a property They can handle negotiations on behalf of the buyer, including price, terms, and contingencies to set the buyer up for success

NETWORKING

Our knowledgeable agents have a network of trusted contacts in the industry, including other agents, lenders, home inspectors, and contractors, that can help buyers with different aspects of the buying process

TIME-SAVING

Our agents can save buyers time by doing the legwork to find properties that match their criteria, scheduling all appointments, handling paperwork, and managing all the details and deadlines that are involved in complex real estate transactions

YOUR MAISON AGENT

The process of buying a home can be difficult and overwhelming without the assistance of an experienced and trusted real estate professional. Most homebuyers choose to work with an agent due to their expertise and access to resources in the market.

Our Maison agents will work with you to ensure that your best interests are represented and to assist you throughout your home-buying journey.

Maison’s agents are extremely knowledgeable, experienced and savvy and will help you successfully navigate the Charleston area real estate market.

MARISSA CASTELLO

Realtor

Marissa is a Charleston native who has spent time in both commercial and residential real estate. She’s passionate about the relational components that come with purchasing a house and assisting clients with such a significant decision. Her experiences have contributed to a vast knowledge of the real estate market, Charleston neighborhoods, and interior design trends.

In her several years working with Mary Lou Wertz and Leslie turner she been involved with over 150 transactions totaling over 300 million dollars of Volume. She knows how to make the process seamless from start to finish and how to smoothly handle any issues that may arise. Marissa, knows all aspects of the real estate business from showings, coordinating inspections/contractors, contracts, creating innovative digital and print marketing. Her hands-on experience has been crucial to understanding the nuances of Charleston Real Estate and the market as a whole. From termites in a crawl space to inside knowledge on which roads are prone to flooding, Marissa has a wealth of knowledge and will expertly guide you in finding a solution.

Having worked with so many first-time home buyers, Marissa is keenly familiar with the questions and emotions that come with buying your first home. She can answer questions like “What is a prequalification letter?” and “How much are inspections, closing costs, and insurance?”. Marissa incorporates Maison’s high level of service; her assistance doesn’t end at the closing table. She is here to help recommend contractors, movers, painters, designers & more to ensure that your entire home buying or selling process is a smooth experience.

Marissa graduated Magna Cum Laude from the University of South Carolina. She worked in Commercial Real Estate in Charlotte for 2 years before moving back to Charleston with her husband because she was eager to get back to her Lowcountry roots. She enjoys spending her weekends with her friends and family near the beautiful Charleston waters, checking out new local restaurants, and spoiling her French Bulldog, Eloise.

MAKE A WISH LIST

When looking for a home, make a list of must-haves and nice-to-haves Hone in and uncover what is important to YOU This can include bed and bath count, square footage, detached or attached home, outdoor living space, preferred neighborhood and everything in between Think about what kind of lifestyle you envision in your new home!

MUST-HAVES VS. NICE-TO-HAVES?

At the end of the day, we want to help you find a home that will make you happy, all while making this process as seamless and smooth as possible Prioritize and prepare

Must-haves are features that are non-negotiable If we see a home that omits these features, we shouldn’t even bother with it Most of the time this will include bed and bath count, preferred neighborhood, garage, etc This can be especially important if you have children and/or pets, or thinking about growing your family

Nice-to-haves are your ‘wish list’ items that aren’t necessarily deal breakers. Is this something that can be added through renovation later on? For example, an outdoor living space, pool, etc. Share these lists with your Maison agent!

Some questions to ask yourself:

Do I want a condo/townhome or a single family home?

How much renovation am I willing to do?

What areas and neighborhoods do I want to live in?

Are specific schools important to my family?

How long do I plan to live in my next home?

How important is outdoor space?

Your Maison agent will talk with you about lifestyle. The Charleston area offers a diverse selection of neighborhoods, and with our intimate knowledge of the area, we can help match you with a neighborhood that fits your desired lifestyle. Whether you want to be able to walk to award-winning restaurants and art galleries, slide into your kayak or boat after work, or easily access the beautiful beaches and golf courses, Charleston offers something for everyone. Our Maison agents know the market inside and out and can help you find your dream home

DETERMINE YOUR FINANCIAL HEALTH

Assessing your financial health is an essential step in the home-buying process. It involves reviewing your income, debts, and credit score to determine your ability to afford a mortgage and make sure you're financially ready for homeownership. Reach out to a reputable lender, or two. Speaking with a lender is a relatively short process and will work to your advantage when facing a competitive, multiple offer situation. Ask your Maison agent for a list of local lenders

Review your credit score: A good credit score is important when applying for a mortgage, so check your credit report and work on improving your score if necessary.

Determine your budget: Calculate your monthly income and expenses, and determine how much you can realistically afford to spend on a mortgage payment, insurance and property taxes, and what you are comfortable spending

Save for a down payment: A down payment of at least 20% is usually required to avoid paying private mortgage insurance (PMI).

Know your debt-to-income ratio: Lenders will typically look at your debt-to-income ratio, which compares your monthly debt payments to your monthly income when determining if you qualify for a mortgage.

Get pre-approved for a mortgage: Before you start looking for a home, it's a good idea to get pre-approved for a mortgage.

Consider all the costs: Buying a house involves many costs, including closing costs, property taxes, and home insurance. Make sure you have enough saved to cover these expenses.

PRE-APPROVAL & PROOF OF FUNDS

Speaking with a reputable, local lender and getting a pre-approval letter or proof of funds will help work toward your advantage, especially when faced with a competitive, nuanced market such as Charleston.

Pre-approval letters or a proof of funds letter (if you are a Cash buyer), are crucial documents to submit along with all offers. Your bank or financial advisor will be able to provide a proof of funds letter.

GET MORTGAGE PRE-APPROVAL

Gather your financial documents: You will need to provide proof of income, employment, and assets, as well as your credit score and other financial information. This includes pay stubs, W-2s, tax returns, bank statements, and proof of any other assets you may have.

Contact a lender or mortgage broker: You can work with a local bank, credit union, or mortgage broker to get preapproved for a mortgage They will review your financial documents and credit score to determine how much you can afford to borrow

Complete a mortgage application: Once you have found a lender or mortgage broker, you will complete a mortgage application. This will include detailed information about your income, assets, debts, and employment history.

Get a pre-approval letter: After reviewing your application and financial documents, the lender or mortgage broker will issue a preapproval letter, which is a conditional commitment to lend you a certain amount of money. This letter will indicate the maximum loan amount, interest rate, and terms that the lender is willing to offer you.

Keep in mind that getting preapproved for a mortgage is not a guarantee that you will be approved for a loan. The lender will still need to appraise the property you want to buy and also will verify all the information you provided.

Stay in contact with your lender to keep the mortgage process running smoothly.

Please consult a reputable mortgage lender for advice, as Maison does not give financial advice.

FIND THE RIGHT MORTGAGE FOR YOU

The mortgage you choose to for the purchase of a property will determine the qualifications needed for the loan, including the down payment amount and repayment plan Selecting a suitable home loan increases your chances of being approved and can save you significant amounts of money in the long term

Conventional loans are not backed by the federal government, they have low down payment requirements but have stricter qualifications

FHA loans are supported by the Federal Housing Administration, they are easier to qualify for than conventional loans but have stricter mortgage insurance requirements.

Jumbo Loans are mortgages for homes that are higher priced than standard lending limits. These usually require larger down payments and higher credit scores.

VA Loans are from the Department of Veterans Affairs and are for actie or former service members and their eligible spouses. VA loans allow you to purchase with no down payment.

Renovation Loans allow you to combine the cost of home improvements into the mortgage amount. When mortgage rates are low, this can be a great way to borrow more for repairs and have lower interest rates than other types of home improvement loans

Each loan type offers the option of a fixed-rate or adjustable-rate mortgage (ARM). A fixedrate mortgage has a static interest rate, while an ARM's interest rate can fluctuate. An ARM may have a lower initial interest rate, allowing you to purchase more homes for the same monthly payment, but it can also increase over time. Additionally, you need to decide on the mortgage term, 30-year mortgages are the most common, but shorter terms like 10, 15, or 20 years can have lower interest rates.

FIND YOUR DREAM HOME

After determining your budget and preferences, our trusted, experienced agents will help you achieve your home buying goals. Maison agents will provide guidance and support throughout the entire home-buying process, and help you navigate the complexities of buying real estate in South Carolina.

Our Maison agents will set up a personalized search criteria for you based on your preferences. Your Maison agent will also work to find off-market opportunities for you from our vast network of resources in Charleston and beyond.

MAKE AN OFFER

Once you have found a home you love, it's time to make an offer, also commonly known as a purchase agreement. Your offer will outline price, financing, contingencies and more. Your Maison agent will also provide you with valuable information such as a comprehensive market analysis of comparable sales data for an appropriation valuation of the property. Maison agents will discuss the terms and contingencies that are a part of your contract.

The Seller may accept, reject, or counter your offer, and there may be several rounds of negotiations before ‘final acceptance.’ We will be strategic about the offer terms in order to give your offer the highest probability of Seller acceptance. Maison agents are experienced negotiators and enjoy a wonderful rapport with other agents in our area.

FROM CONTRACT TO CLOSING

Once your offer contract has officially been accepted and signed, Maison agents prepare a detailed timeline of next steps. These includes home inspections, termite inspections, structural inspections, earnest money deposits, choosing a closing attorney and more. In South Carolina, Buyers must choose a closing attorney to complete the title work and handle all sales documents on their behalf. Maison can refer you to a reputable, local attorney to assist you with the purchase of the home.

Earnest Money

Loan Application and Lender Letter

Inspections, Appraisal and More

Homeowners Insurance and the Title Search

Final Walk-Through

Closing

See pages 17 through 20, for a full in-depth discussion through the Due Diligence period! Speak with your Maison agent about any questions you may have.

EARNEST MONEY

Earnest money is your deposit on the home, also commonly known as a ‘good faith deposit.’ It shows the Seller your seriousness of intent. It is typically 1-10% of the purchase price, and the amount of earnest money is dependent upon negotiation. The deposit amount is a part of your purchase agreement and is typically due within 3 days of a signed, accepted offer. The closing attorney of your choice will be the escrow agent and hold the earnest money. Typically, the earnest money becomes non-refundable to the Buyer after the Due Diligence period expires, depending on a few contingencies.

DUE DILIGENCE EXPLAINED

The Due Diligence period is put in place to protect you, the Buyer It allows the Buyer to review all documentation on the home and Home Owners Association, as well as get all inspections completed The length of Due Diligence will vary depending upon the transaction; however, it is typically 10-14 days This is the time to complete all inspections, negotiate for repairs or repair credit, get any contractors to evaluate the property, finalize financing and more This gives you the time to make sure you have all the information necessary to make an informed decision about moving forward to closing If you terminate for any reason during the due diligence period, the earnest money is fully refundable to the Buyer

THE INSPECTION PROCESS

The home inspection is an out-of-pocket expense paid for by the Buyer Your Maison agent can recommend a reputable, local inspector that will conduct the inspection Inspectors examine major systems, mechanics and structure of the home They determine whether repairs and/or renovations must or should be made Based on the home inspectors’ official report, it may be necessary to hire other contractors or specialists (i e , roofers, HVAC technicians) to examine the property further

A termite inspection (report called a CL-100) will also be conducted. As beautiful as Charleston is, the climate makes it a perfect spot for termites. Known as a South Carolina ‘Wood Infestation Report,’ a CL-100 states if the property has evidence of previous or active termites, or other wood-destroying insects or fungi damage, or if excessive moisture is found.

If applicable, your lender will order an appraisal An appraisal is an estimate of the property’s value based on the appraiser’s methodology and assessment The appraisal is not only to justify the lender’s investment, but to help keep the buyer from overpaying on a property Your Maison agent can advise you if there is an issue with the appraised value

After all inspections have been successfully completed, we will determine whether repairs must be made If repairs must be made, we determine which repairs are important to you, receive estimates from contractors and try to negotiate a credit, repair, or a price reduction on the home However, there are no guarantees that the Seller will negotiate or give a credit for those repairs to be made In that case, you have the opportunity to be released from the contract if you are still within the Due Diligence period

If the property you purchased under a Homeowners Association, or Horizontal Property Regime, please review all relevant HOA documents during the Due Diligence period This will include everything from the ‘Master Deed’ and all amendments to the Bylaws, Rules & Regulations and more

It is also recommended for buyers to get a survey of the property, so that any encroachments and/or easements are identified Your Maison agent, and closing attorney can assist you with this

HOMEOWNERS INSURANCE,AND TITLE SEARCH

Contact an insurance agent to secure your homeowners and flood insurance on the property. Ask your Maison agent for local recommendations.

Hire a real estate attorney: An attorney will prepare all legal documents and make sure your interests are protected Your attorney will order the title search and survey

Title: The title is the right to own, possess, use and control of a property. When purchasing a home, you are buying a Seller’s title to the home. Before closing a title search is done to ensure there are no liens or problems that might prevent a clean title transfer.

Prior to closing, your attorney will send you a copy of the settlement statement, which is a form outlining all costs associated with the transaction, and the amount you must bring to closing. The closing attorney manages the title search and offers title insurance on the property. After closing,the attorney will also record the deed with the county’s Register of Deed’s office.

FINAL WALK-THROUGH

24 to 48 hours before closing on your home, and sometimes even the day of, we will conduct a final walk-through of the property. Was there damage done to the property during move out? Have all agreed-upon repairs been successfully completed? Have they left all agreed-upon furniture? Did they leave anything that is not supposed to be there? Has the house been properly cleaned? We are going to make sure that everything is good to go prior to you heading to the closing table.

CLOSE ON YOUR NEW HOME

Pop open bubbly! We’ve made it to the closing table. Make sure to bring two forms of identification to the closing attorney’s office. Your lawyer will go through all the document necessary, and you will sign away.

Your closing attorney will advise you of all funds required on the date of closing. Be sure to confirm any wiring instructions directly with the attorney’s office prior to wiring any money.

Congratulations on the purchase of your new home!

CLOSING COSTS

Closing costs are a bundle of fees associated with purchasing a home. They are out-of-pocket expenses beyond that of a downpayment and earnest money deposit. Certain fees are automatically assigned to the Buyer or Seller; others are negotiable or dictated by local customs. Many Homeowner Associations have required capital contributions payable at closing.

Lenders are required to provide homebuyers with an estimate of closing costs. These fees vary according to several factors including the type of loan and terms of the purchase agreement. Some of the closing costs are paid in advance, such as those associated with the loan application.

EXPE

BUYER C

Home Inspection

CL-100 Report

Loan Origination Fee

Appraisal

Credit Report

Mortgage Insurance Application

Lender’s Inspection Fee

Flood Fee

Survey

HOA Capital Contributions & Transfer Fees

Attorney’s Fee

Title

Title Insurance

Title Insurance - Based upon purchase price (Owne

lenders title p

1-Year Hazard Insurance Pre

1-Year Flood Insurance (if appli

PROPERTY TAXES IN SOUTH CAROLINA

South Carolina has one of the lowest mean effective property tax rates for owner-occupied homes in the nation. Property taxes are based on appraised/assessed value, classification (primary residence or secondary home/investment property), assessment ratio, and millage rate. Each city and county has a different millage rate.

Most county tax assessors have a terrific property tax estimator on their websites. Charleston County’s property tax estimator: www.charlestoncounty.org/departments/auditor/tax-estimator.php

Charleston County bills and collects property taxes in arrears. The assessed value of a property is determined as of January 1 of each year, and the tax bills are mailed out in October of that year. The assessed/appraised value is generally determined by its most recent sales price, with periodic reappraisals conducted by the county, usually every 5 years. Reappraisal of value, by SC state law, is capped at no greater than 15% over a five-year period. If you purchase a home after January 1 in any given year (year 1), for tax purposes in year 1 will be the value of what the home’s appraised value was on January 1, and will reset at your purchase price on January 1 of the following year (year 2). Property taxes are prorated at closing and apportioned between Seller and Buyer.

See the next page for illustrative examples of a $1,000,000 assessed value property in downtown Charleston classified as a primary residence (example #1at 4%), and then the same property classified as a secondary residence/investment property. (example #2 at 6%)

Here are links to the applications for local counties for primary residence:

Charleston County: www charlestoncounty org/files/forms/tax/LegalRes4 pdf

Dorchester County: www dorchestercountysc gov/government/property-tax-services/assessor/4-legal-residence

Berkeley County: berkeleycountysc gov/faqs/how-do-I-obtain-the-4-legal-residence-exemption-reference-s-c-code-of-laws-12-43-220/

ASSESSMENT RATIOS

There are 2 assessment ratios for real property in South Carolina: 4% for properties classified as primary residences, and 6% for all other property (including secondary residences, investment properties, and commercial). As a rule of thumb, the property tax bills on properties of the same value but at the 6% rate will be about triple what the same property would be taxed if classified as a primary residence (4% rate).

APPLICATIONS

Property owners must APPLY to the county and be approved for the lower property tax rate and primary residence exemption. It is best to hand deliver your completed application with supporting documents directly to the appropriate county tax assessor’s office as indicated on the forms.

See the bottom of page 25 for links to the applications for local counties for primary residence.

HOMESTEAD EXEMPTION

An additional tax reduction is available for South Carolina homeowners who qualify:

Over the age of 65 Permanently disabled

Legally blind

The SC Homestead Exemption allows these qualified homeowners to reduce the assessed value of their primary residence by up to $50,000 For more information, visit: dor sc gov/lgs/homestead-exemption

Please note that Maison Real Estate does not give any tax or legal advice. Please consult your tax advisor or closing attorney with any questions regarding property taxes in South Carolina.

6% ASSESSMENT RATIO