Buyer Guide 2024

HOME BUYER GUIDE YOUR VIP HOME BUYING ROAD MAP

WHAT MAKES THIS REALTY OASIS MACHINE HUM? “…surpass the expectations of every client who chooses us…”

W

e operate in a supportive, professional, positive environment that helps each member of our team provide the highest level of service in the real estate industry. This atmosphere allows our team to act on the passion and drive it takes to surpass the expectations of every client who chooses us to help fulfill their home buying or selling goals.

Whether you are looking to sell your property or buy a new home, Realty Oasis offers a dedicated, skilled team of pros with an innovative marketing approach.

Our team of experienced, full-time real estate agents and staff are ready to lead and advise you through the process of buying the perfect home or selling your existing home for the most amount of money in the shortest amount of time.

MARKEIBNER.COM

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YOUR HOME BUYING ROAD MAP

Strategy

• Find a REALTOR® you can trust • Strategic home buyer consultation • Set up your “Backstage Pass” to the MLS • Buyer Agent Fees

Financing

• Mortgage application • Obtain pre-approval letter

Showings

• Concierge home showing specialist • View your favorites • Find your home

Offer & Negotiations

• Market analysis • Write your offer • Negotiations & counter offers

Protection

• Offer accepted • Earnest money/due diligence • Inspections

Closing

• Appraisal • Final walk through • Final underwriting • Close on your home • Title work • Deed recorded • Insurance • Get your keys • Utilities in your name

YOUR NEW HOME! This is a road map of what the typical home buyer process looks like.

Our HOME BUYER GUIDE includes more information about each step.

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YOUR STRATEGY STARTS HERE Every decision in a real estate transaction could save or cost home buyers TENS OF

OF DOLLAR$

S

I N UN N ECE SSA RY E X P E N S E S

WE LOOK OUT FOR 80 DIFFERENT VARIABLES INVOLVED IN YOUR

7-STEP HOME BUYING STRATEGY 1. Expert Advice to Setting Your Strategy 2. Funding Your Dream

7 Resources

1 Strategy 2 Fund

3. Selecting Your Home 4. Negotiating Your Terms 5. Protecting Your Home

6 Close

Realty Oasis’ 7 Step Home Buying Strategy

6. Closing on Your Home 7. Your Lifetime Resource

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5 Protect

4 Negotiate

3 Select

EXPERT ADVICE FOR SETTING YOUR STRATEGY Market Intelligence Economic indicators

Inventory of vacant homes

Trends analysis

Rental housing vacancy rates

Interest rates

Builder confidence

Loan programs and qualifications

Shadow inventory

Real estate cycles

Inventory fluctuation

Seasonal advantages

Rent vs. buy trends

Local market conditions

Market stability

Micro markets

Knowledge of co-op agent’s negotiation strategy

National market conditions Absorption analysis Inventory of corporate-owned homes Inventory of short sales Inventory of foreclosures

Knowledge of mortgage options Knowledge of insider deals Knowledge of appreciation rates Knowledge of inventory

Buyer Agent Fee Options

Smart Home Buying Strategy

Buyer Paid Fee

Determine timing & motivation

Transaction Paid Fee

Evaluate needs & wants

Seller Paid Fee

Out-of-pocket expenses Financing needs & pre-approval Neighborhood & lifestyle Quality of life Set expectations according to market Customized plan

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FUNDING YOUR DREAM Trusted Lenders

Your Home as an Investment

Best rate & terms

Mistakes that cause you to overpay for your home

Close on time No surprises Over deliver vs. Over promise

Mistakes that cause you to overpay for your loan

Get documents on time to the closing attorney

How to accelerate your equity and build wealth with your home purchase

Decisions on Cost

Why choosing the right lender makes all the difference

15-year vs. 30-year mortgage

Equity buyer vs. emotional buyer

Long-term hold Short-term hold Buy first or sell first Rental property 13th payment

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MORTGAGE PRE-APPROVAL How Much Can You Afford? Key Factors to Consider The down payment

Your debt-to-income ratio

The interest rate

The closing costs associated with the transaction

DOWN PAYMENT REQUIREMENTS LOAN TYPE

DOWN PAYMENT

DETAILS

CONVENTIONAL

5%+

You can put as little as 5% down and as much as you want. Anytime you put less than 20% down, you will have to pay some mortgage insurance.

FHA

3–5%

The lowest traditional down payment program; there is additional mortgage insurance.

DOWN PAYMENT ASSISTANCE*

$1,000+

A program for people who qualify with credit and income but do not have enough savings for a down payment.

VA

0%

A special program for military buyers that allows them to put almost nothing down toward the purchase.

FHA 203k

3–5%

A special product that allows you to wrap into your mortgage the costs of repairs or improvements to the home you buy.

CONTRACT FOR DEED

10%+

An ideal program for those without qualifying credit scores. Interest rates are slightly higher than market rates but it allows for home ownership for those who would otherwise have to rent.

*There are many down payment assistance programs available through our preferred vendors, just ask us for more information to find out if you qualify.

Closing Costs You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the closing, unless you are able to include them in your financing. Typically, total closing costs will range between 4–5% of your mortgage amount. In today’s market, it is common to ask for the seller to pay around 2% of the mortgage amount toward your closing costs; this is called “Seller Paid Closing Costs.”

EXAMPLES OF CLOSING COSTS • Prepaid Insurance ($300–$1500) • Prepaid Taxes (up to 6 months)

• Prepaid HOA Fees (when applicable) • Mortgage Origination Fee (2%) • Appraisal Fee ($450)

• Title Fees ($1200–$1500) • Closing Fees (<$1000)

$250,000 - $5,000 = $245,000 YOUR OFFER

(Total amount of your purchase price)

SELLER’S CONTRIBUTIONS (Amount of your closing costs you ask the seller to pay for you)

NET OFFER

(Final amount the seller is actually receiving, viewed as your actual offer)

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SELECTING YOUR HOME Showings

Lifestyle and Neighborhood

Select homes of interest

School rankings

View your favorites

Crime level

Proactively suggest listings that match your needs

Demographics

On call “concierge” Showing Specialist

Right Price — Right Home Property type (condo, townhouse, single family, manufactured, multiunit, investment) Preferred subdivisions

Planned community Parks & playgrounds Privacy of neighborhood/gated community Location of home in neighborhood Proximity to: work, restaurants, recreation, public transportation, major roads, entertainment, etc.

Price range Year built (age of home)

Managing Risk

Bedroom/bathroom/garage needs

Foreclosures/bank owned homes

Square footage

Short Sales

Landscape/lot preference

Vacant homes

Floor plan

City inspections

Amenities ADA disability features Appliances

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TYPES OF HOME SALE TRANSACTIONS Traditional Sale (30–60 Days) These are homes that have a regular seller on the other side of the transaction. They are not “upside down” on their mortgage, meaning they don’t owe more on the home than the home is worth. However, if they do, they have the cash to bring to the table to sell without negotiating with the bank. The response time on your offer from a traditional seller is usually pretty prompt (generally within 24 hours, if not less). The traditional homes are going to reflect the “market value” for a neighborhood and will usually be the highest priced home sales in the market and they are usually going to be in the best condition of any homes on the market.

New Construction (Varies, typically 4–6 months unless already completed) Brand new homes, built to your tastes and warrantied. With new construction, you get exactly what you want.

New construction homes can be already built, in the process of being completed or entirely custom.

Bank Owned Sale (30–60 Days) A bank owned sale is one in which the bank owns the home. Usually the bank will own the home because the seller tried to do a short sale and the bank wouldn’t agree to it, or the seller just decided to let the home go back to the bank by not making their payments. The bank owned transaction is a two party transaction, 1. Buyer 2. Bank. The listing agent is the go-between with the bank and they really help the bank’s asset manager (the decision maker at the bank) make the decisions about the property and about the pricing of the home. Bank owned sales are almost always “As Is” sales. Bank owned purchases are usually priced well below the price of a comparably sized “Traditional Sale,” but they may be in poor condition and will most likely need some sort of work or cleaning done.

FSBO (30–60 DAYS) This is the sale of a home directly by the owner rather than having representation by a real estate professional.

One of the most popular reasons that owners choose to sell their homes without the help of a real estate agent is to avoid paying an agent’s commission. If the owner sells their home to a person that is also not represented by an agent, the owner pays no commission. If the buyer is represented by a real estate agent, that agent may request that the owner pay them a commission (typically 3%) for bringing the buyer to them. The owner can agree to pay or refuse. The seller is not legally obligated to pay the commission. Often times, if the owner refuses, the buyer will compensate their agent on their own. FSBO homeowners will often market their own properties or choose to employ the services of an online marketing company or listing service.

Short Sale (4+ Months) A short sale is a home that is selling for less than the mortgage balance that is owed. This is where the term “short sale” comes from: the home is selling “short” of what is owed. The seller is usually selling the home because they can’t make their payments any longer. The short sale is a three party transaction. There is 1) Seller 2) Buyer and, 3) Bank (or banks) involved in the sale. The process is like a traditional sale in that the seller hires a real estate agent to market the home and get an offer, but once the seller and the buyer agree to a price, the bank then has to make the final decision on if the price is acceptable and if they will release the seller from the obligation of the debt they owe. The bank has to collect all of the seller’s financial records and review the offer and send out a third party to value the property. From there the bank will make a decision on whether or not they will accept the offer, counter the offer, or reject the offer. Short sales can be great deals, but the waiting time involved can be extreme and very hard on a buyer wanting to purchase quickly.

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NEGOTIATING YOUR TERMS Position of Strength Pre-approval in hand Type of financing Negotiating with listing agent

Seller Concessions and Offer Details Seller contribution to buyer’s closing costs

Comparable sales to support offer

Buyer Agent Fees

Seller’s purchase price per tax records

Home warranty

Property tax assessment review

Inspection repair costs

Walk away leverage

Closing date Discount/buy-down points

Multiple Offer Strategy Zero repair allowance (under $500) Increased earnest money Escalation Language Closing date Seller rent back

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Ancillary closing costs Title policy (buyer or seller) 60 days no payments Contract acceptance Time line Property inspection time line Negotiate repairs

MAKING AN OFFER Once we’ve found the home you wish to purchase, you’ll need to determine what offer you are willing to make on the home. After all, you are the one making the payments!

Offer Terms Sales price

Personal property

Comparative market analysis (comps)

Other applicable addendum like Common Interest Community Disclosures, Short Sale Contingencies, etc.

Earnest money Financing terms

Seller contribution to YOUR closing costs (if requested) Buyer Agent Fees

Inspection period Closing date

Offer Terms Example — Asking the seller to cover a portion of your closing costs.

$250,000 - $5,000 = $245,000 YOUR OFFER

(Total amount of your purchase price)

SELLER’S CONTRIBUTIONS (

Amount of your closing costs you ask the seller to pay for you) Buy Downs, Closing Costs, Brokerage Fees

NET OFFER

(Final amount the seller is actually receiving, viewed as your actual offer)

A Note about Multiple Offers It is important to remember that the more competition there is for the home, the higher the offer will have to be, sometimes even exceeding the asking price. Remember, be realistic, but it all comes down to market value and solid comparable sales. Make offers you want the other party to sign!

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HOW DO BROKERS GET PAID? Sales Price

Commission

$500,000

6%

6% = $30,000 Total Commission Paid By The Seller

3% = $15,000

3% = $15,000

To Listing Agent

To Buyer's Agent

Brokerage

Brokerage

70% = $10,500

30% = $4,500

Final Paycheck To Listing Agent

To Listing Agent Brokerage

30% = $4,500

70% = $10,500

To Listing Agent

Final Paycheck To Buyer's Agent

Brokerage

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BUYERS' AGENT FEE OPTIONS? What Options Do You Have For Buyers' Agent Fees The buyer pays you directly (can not do with VA LOANS) The buyer's agent inserts the commission into the offer and contract The seller gives a Seller's Concession to the buyer and the buyer pays the agent

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PROTECTING YOUR HOME Home Inspection

Home Warranty

Eliminate potential surprises Preemptive negotiation strategy

Cover the mechanical systems and major appliances in the home for a year

Identify potential “deal killers”

Can save buyers thousands of dollars

Walk-away leverage

Can be paid for by the seller Can renew after the first year is up

Lifestyle and Amenities Drive time Location of hospitals, restaurants, schools, gyms Off Grid / On Grid

Future Home Maintenance Costs Heating and cooling costs Age of appliances Utility costs Home owners association dues Lawn and landscape maintenance

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INSPECTIONS Home Inspections If you are purchasing a resale property, we highly recommend that you have a professional home inspector conduct a thorough inspection. Our Inspector is exceedingly thorough and detailed so as to minimize surprises for you. However, the inspection is not meant to be used to low ball the seller post-price negotiations, as all existing homes have minor imperfections.

The inspection is intended to report on major damage or serious problems that require repair. Your home cannot “pass or fail” an inspection. The inspector’s job is to make you aware of repairs that are recommended or necessary.

THE INSPECTION WILL INCLUDE THE FOLLOWING

Appliances

Well

Plumbing

Septic system

Electrical

Lead based paint

Heating and Air conditioning (depending upon the season) Roof and Attic (if accessible) Foundation General Structure Radon tests are recommended — More than 40% of the homes tested have gas levels exceeding the safe threshold set by the EPA

COMMON PRICES for the home inspector 1500 sq ft and less . . . . . . . . . . . . $350 1500–2000. . . . . . . . . . . . . . . . . . . $450 2000–2500 . . . . . . . . . . . . . . . . . . $500 2500–3000 . . . . . . . . . . . . . . . . . . $550 3000+ . . . . . . . . . . . . . (Call for pricing) Sewer Scope . . . . . . . . . . . . . . . . . . $145 Radon Testing . . . . . . . . . . . . . . . . . $150 Pest Inspections . . . . . . . . . . . . . . . . $95 Thermal Imaging with inspection. . . . . . . . . . . . . FREE (Must request)

without inspection. . . . . . . . . . . $150

Thermal imaging can reveal issues unseen in a standard visual home inspection.

The seller may be willing to negotiate completion of repairs, or you may decide that the home will take too much work and money and rescind the offer during the inspection period.

Your inspection is a contingency to the purchase agreement and needs to be completed and repairs negotiated within the due diligence date on the purchase agreement, usually a 9–10 day period.

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WARRANTIES Previously-Owned Home Warranties When you purchase an existing home, you can purchase warranties that will protect you against most ordinary flaws and breakdowns in major mechanicals and appliances for at least the first year you own the home. The warranty may be offered by or negotiated with the seller, or can be purchased by you, the buyer.

New Home Warranties When you purchase a newly-built home, the builder usually offers a warranty on things such as the quality of design, materials, and workmanship.

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CLOSING ON YOUR HOME Home Owner’s Insurance

The Final Details

Highly competitive rates

All documents to lender in timely manner

Impacts your monthly payment

Appraisal

Title Company/Closing Escrow Agent

Lender repairs where applicable

Quality management of process

Closing & settlement review

Manage all parties in transaction

Potential deal killers

Leverage for getting problems resolved

Transfer of utilities

Closing on time

Moving into your new home

Protecting your interests Transferring ownership of property to you Transaction management

NOTE: Buyer’s agent commission is paid at closing once we find you the right home. Our win is your win!

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WHAT TO EXPECT AT CLOSING Who Will Be There?

You, the buyer(s) Seller(s) Buyer’s Agent Listing Agent Title Escrow Closer, the party representing the title company and responsible for ensuring the title is transferred to you Occasionally, your mortgage officer

New Remote Closings Electronic documents Video

What Will You Need?

Bring valid government-issued photo ID and a second form of ID showing your name.

Bring a cashier’s check for your cash to close or a wire transfer (your mortgage officer will tell you the amount prior to closing) For remote closings, you'll need access to a PC or smart phone with audio and video capabilities.

What Is Expected from You at the Closing?

If financing the property, your lender will require you to sign a document, called a promissory note, as evidence that you are personally responsible for repaying the loan.

You will also sign all title and deed documents putting you as the official homeowner!

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YOUR LIFETIME RESOURCE On-Going Real Estate Support

Raving Fan Club

Post closing questions

Parties

Updated market information

Holiday give-away (ex. Thanksgiving Pie & Valentine’s Day)

Helping your friends and family

Trusted Contractors Handymen Cleaning companies Carpet cleaning Exterior maintenance Painting & remodeling

Helpful videos Market snapshot Coupons Quarterly giveaways Moving boxes Property vault

Siding/Windows/Decks

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WHO WE ARE Realty Oasis was built on the notion that the secret to achieving incredible goals and getting true results is to dominate real estate with a team approach. One part-time agent does not have the capacity to cover every aspect of the real estate process. Realty Oasis has 30 diverse experts excelling at their roles, allowing them to focus on what they do best, at a high level, so our clients receive high level performance and unprecedented results in this industry.

We operate in a supportive, professional, positive environment that helps each member of our team provide the highest level of service in the industry. This atmosphere allows our team to act on the passion and drive it takes to surpass the expectations of every client who chooses us to help fulfill their home buying or selling goals.

Whether you are looking to sell your property or buy a new home, Realty Oasis offers a dedicated, skilled team with an innovative marketing approach.

We also specialize in more sophisticated home buying and selling procedures concerning real estate investments. These include IRS sections 1031 exchanges, reverse 1031 exchanges, IRA, ROTH IRA, and 401K ownerships.

Our team of experienced, full-time real estate agents and staff are ready to lead and advise you through the process of buying the perfect home or selling your existing home for the most amount of money in the shortest amount of time.

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WHY REALTY OASIS? One Team, One Plan, One Purpose: Beyond Expectations Go above and beyond Do what we say we will do Deliver prompt communication

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•

•

Build and maintain relationships Always solutions, never problems Deliver high performance and positive results

Are You Looking for High Performance?

Continually increase yearly home sales (see graph) Invest in professional development and skills training Obtain specific certifications for working with buyers Seek continuing education classes Present a buyer agency disclosure in writing Set your home buying strategy Full-time Transaction Coordinators Team of Expert Buyer Agents

250

Proactive listing suggestions

homes

Respond promptly Available 7 days/week

178 homes

Weekly Team Meetings Weekly Sales Training

SOLD

GOAL for 2024

in Average agent only sells 6 per year

2023

6-8

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WHAT I WILL SAVE YOU AS YOUR AGENT Be a neighborhood resource for answers, like school districts, etc.

Research all active homes to find the best one that meets your requirements.

Provide ready access to all MLS- listed and non-MLS listed properties.

Automate an email alert system for homes customized to your buying needs.

Recommend vetted vendors such as inspectors, attorneys, stagers, etc.

Provide advice on best price to offer through current sales in the area.

Present and negotiate the lowest possible price.

Prepare you for multiple offer situations and develop winning strategies.

Attend home inspection to point out areas to be carefully reviewed.

Renegotiate offer, when applicable, after home inspection.

Ensure that you receive and understand all required disclosure forms.

Research on the best available mortgage that meets your situation.

Work with lender doing the loan application process.

Attend bank appraisal showing and assist with comps.

Represent you and your interests when dealing with vendors.

Keep you on track with real estate contract deadlines.

Accompany you on the final walk-through to ensure property condition.

Attend closing to ensure that all the buyer's interests are protected.

Remain a life-long trusted advisor regarding real estate questions, needs, etc.

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MEET YOUR COMPANY MARK EIBNER

ALISON EIBNER

Broker / Owner

Broker / Owner

mark@ realtyoasis.com (720) 724-8027

aeibner@ realtyoasis.com (303) 217-6010

TINA GADPAILLE

ALEX EIBNER

Transaction Manager

Transaction Manager

tina@

5280TM.com (303) 268-6011

alex@ 5280TM.com (303) 800-1000

BETH LOPEZ

EVIN HUGHES

Closing Coordinator

Client Concierge

beth@ meridiante.com (720) 427-2632

info@ cohomenews.com (303) 951-6440

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SEE YOU AT CLOSING

720-608-2613 MarkEibner.com