Buyer's Guide by PureWest Real Estate by PureWest Real Estate

PUREWEST CHRISTIE’S INTERNATIONAL REAL ESTATE

BUYER’S GUIDE

Celebrating 52 years of building Relationships for Life. I am honored to present to you a proposal for my services in helping you locate the perfect property. PureWest Real Estate is built on a legacy of excellence and a longstanding commitment to relationships for life dating back to 1972. As the leading brokerage in Montana, PureWest has the reach and resources to give you the service you deserve. Our localized expertise, combined with our statewide connections, produces results. As an exclusive affiliate of Christie’s International Real Estate and Leading Real Estate Companies of the World, PureWest opens the door to global industry connections that span the nation and the world. No matter where your job or life takes you, PureWest can help you get there with our expansive network of experienced agents around the world. I am extremely enthusiastic about the prospect of working with you, and am confident that the expertise and passion of my colleagues at PureWest Real Estate together with my proven track record, will make the purchasing process as seamless as possible and provide you with the greatest opportunity for success. I look forward to discussing my ideas with you.

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PureWest: Montana’s Authority on Real Estate WHITEFISH

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Montana's largest real estate brokerage, newly expanded into Idaho, serving you from 14 cities and 17 locations across the northwest.

PUREWEST LOCATIONS u KALISPELL 17 1ST AVENUE EAST COMMERCIAL: 1204 1ST AVENUE EAST v WHITEFISH 401 BAKER AVENUE 492 EAST 2ND STREET THE LODGE AT WHITEFISH LAKE w COLUMBIA FALLS 494 ST. ANDREWS DRIVE x BIGFORK 420 ELECTRIC AVENUE

y LAKESIDE 115 BILLS ROAD

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Tell your Montana story with PureWest. When it comes to your most important financial decisions, aligning with the finest real estate brand in Montana matters.

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Behind every move is a story. We’ll help you write yours.

OUR STORY OF SUCCESS When it comes to results, PureWest’s track record is unmatched. We have helped thousands of buyers and sellers achieve their goals, positioning us as the #1 brokerage in Montana. We experienced incredible success and remarkable growth in 2023, resulting in record-setting performance. Today’s real estate climate demands tailored strategies and personalized representation for each client. Our agents take the time to get to know you and understand your dreams and real estate goals. They will represent your interests as a buyer and work with all parties involved to negotiate the best terms for your purchase. PureWest Real Estate understands what drives the unique, local real estate market. Our knowledge, proprietary tools, and proven strategies give our company, agents, and the clients we serve a definitive edge over the competition every time.

PUREWEST GIVES BACK At PureWest Real Estate, our core value is relationships for life. This extends beyond our agents and our clients: we also strive to build strong relationships between our company and the communities we serve. We’re personally invested in making the places we live and work the best they can be and are proud to give our time, money, and talents to the numerous nonprofits doing great work in Montana. PureWest agents are deeply woven into their communities, and they meet need wherever they see it, whether it’s coaching youth sports, serving on volunteer boards, or supporting charity work. We know that our towns and cities are strongest when we tend to those relationships in need of care. There are so many wonderful organizations that are tireless in their dedication to improving the places we call home and the lives of our fellow Montanans, and it’s our honor to support them.

Before You Begin Before you start looking for homes or talking with a lender, you need to prepare yourself for a home purchase. Whether you are about to buy your first home, or you’ve purchased a few in the past, the first thing you should consider is the reason for buying. Ask yourself, what are you hoping to accomplish with this home purchase?

• Is this your first home and you’re ready to start building equity? • Have you outgrown your current home and need more space? • Has a new job or relocation pushed you to consider purchasing in a new area? • Are you ready to downsize? Empty nest? • What do you like/dislike about where you live now?

Partner With a Professional Buying a home can be a wonderfully rewarding experience, especially if you’re doing it for the first time. It is also a complex process, with a sequence of steps that requires knowledge, patience and attention to detail. A licensed agent provides the experience and steady guidance to manage the process and enable you to focus on the journey.

FOUR THINGS TO KNOW A Buyer’s Agent will always act on your behalf.

From navigating paperwork to negotiating offers, your best interest is always the priority. You will most likely sign an Exclusive Buyer Broker Agreement, a binding contract that specifies the relationship including any obligations to you, payment, and time frames. This form creates an agency agreement between you and your agent prior to writing an offer. A Buyer's Agent will negotiatiate with market expertise.

Understanding your goals, desires and concerns Is fundamental to skillful negotiation, coupled with strong market knowledge and financial acumen. Your buyer’s agent will work on your behalf and negotiate the best possible price and terms for your home purchase. Services tailored to your needs.

Our services are distinctive, extensive, and personalized for you, as our long-standing reputation was built on consistently delivering high performance to every client. Our strong local culture is well-aligned with your market-specific needs. How your Agent gets paid.

Typically, the sellers of a property have agreed in the listing agreement to pay part of their proceeds towards agent fees. From that money, the sellers pay their seller's agent, and that agent pays your buyer’s agent. Depending on the fee being offered by the seller, you may need to discuss options for payment for all or part of the commission to your agent.

Talk With a Lender To Secure Financing

Many buyers are able to pay cash for their property purchases, but if you're planning to borrow all, or a part of your funds, I would encourage you to speak with a lender before starting your search. They will help facilitate and determine how much you can afford in a home and what type of loan you will be using. The lender will provide you with a pre-approval letter for the amount you require. This will be vital when you submit an offer.

EIGHT THINGS A BUYER SHOULD NEVER DO •

Change jobs

•

Miss any credit payments

•

Become unemployed

•

Buy a new car or other high dollar items

•

Apply for a credit card; close credit cards

•

Make high dollar purchases on a credit card

•

Decrease savings account

•

Cosign for anyone on a loan

While some of these might seem counter-intuitive, credit is touchy and doing something that seems “good” could actually lower your credit score and cost you the loan.

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Start Your Home Search

Once you have received your pre-approval from your lender, it’s time to begin your home buying search. As your agent, I will help you narrow down your criteria; including which neighborhoods you want to target, school districts, size of home, features, etc. Most buyers find it helpful to create a list of “must have” and “nice to have” items.

We will use the power of our statewide website PureWestRealEstate.com and your local Multiple Listing Service (MLS) to set you up with an active feed of listings.

MAKE AN OFFER When you’ve found the property you’d like to purchase, it’s time to make an official offer. Your real estate agent will help you land on a fair price and discuss strategies for potential negotiations. And don’t get too down if your first offer isn’t accepted. 42% of buyers end up making multiple offers before having one accepted, according to a report from Zillow.

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Once You’re Under Contract Once your offer is accepted, you will enter the escrow period. This period is made of separate components called "contingencies" which allow you to investigate the property thoroughly. The first element to this period is completing the financing arrangements, if you are planning to use a loan to purchase. Your lender will help start the process of getting a final approval for your loan. You will be presented with a Good Faith Estimate of your costs and terms of the loan. The lender will also order a formal appraisal of value. The second major portion of the escrow/contingency period is the time for you to do your due diligence and investigations of the home condition. The sellers will provide you with a disclosure of issues they are aware of with the property/neighborhood for you to review.

INSPECTIONS & TESTING It’s recommended that you have the property inspected by a professional. There are any number of potential unseen issues. Inspections should discover these issues and, if repairs are required, you may want to negotiate repairs or credits from the seller. Home • Mold • Pest • Air Quality • Radon Meth • Lead-Based Paint • Well

FIVE COMMON CONTINGENCIES Home Inspection

This might include geological surveys and inspections as well as mold inspections. Appraisal

The property must appraise for the offered value. Loan Approval

APPRAISAL Your lender will order an appraisal to figure out the property’s objective value. This value is then looked at by your lender to make sure you aren’t borrowing more money than should be paid for the particular property.

Clear Title

The sellers have the legal ability to sell. Insurability

You must be able to obtain reasonable home insurance.

COSTS A BUYER SHOULD EXPECT EARNEST MONEY

The amount of earnest money varies widely and depends on many factors including purchase price and type of offer. Always negotiable, it usually varies between 0.1% and 1%. The earnest money is credited to the buyer at closing as a portion of the down payment or closing costs. Earnest money may be refundable if the buyer backs out during the contingency period. INSPECTION

During the contingency/due diligence period it's recommended that you hire an inspector to evaluate the property. For a home under 3,000 square feet, an inspection will typically cost $500-$700. APPRAISAL

An appraisal of the property typically runs $700-$900. Usually, the fee is added to your closing costs, but your lender/appraiser may require payment prior to completion of the service. CLOSING COSTS

Closing costs consist of mostly loan items, title fees, buyer's agent compensation, and sometimes taxes. The total amount generally falls between 2-3% of the purchase price. These costs will be paid at closing along with your down payment.

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Closing Day Many buyers will do one last walk-through right around the time of closing. This is simply to make sure the home generally looks the same as when you made your offer. If the seller agreed to make any repairs after inspection, you can confirm that those changes have been made as well. When closing day comes, you’ll need to bring a few things with you to the title company. Most likely you’ll need a cashier’s check for your down payment and closing costs, as well as valid photo ID for each person signing. You will receive keys once all docs are signed, your lender or escrow agent release funds to the seller, and your ownership interest is recorded at the courthouse.

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REAL ESTATE TERMS TO KNOW Agency: Any relationship in which one party (agent) acts for or represents another under the authority of the latter. Agent: A party who is authorized to act in the best interests of a principal/client, and is obligated to place the

principal’s interests before the interests of any other parties, including the agent’s own interests regardless of whether the agency relationship is with the seller of the property or the buyer. Appraisal: A written analysis of the estimated value of a property prepared by a qualified appraiser. Buyer’s Agent (or Buyer Broker): Represents the consumer who is purchasing property in a real estate

transaction, not the seller. A buyer’s representative works for, and owes fiduciary responsibilities (see fiduciary duties) to the real estate buyer and has the buyer’s best interests in mind throughout the entire real estate transaction. Buyer Broker Agreement: An agreement that specifies the duties and the scope of services a buyer’s

representative agrees to provide to the buyer as well as specifying the buyer’s responsibilities.

Buy-Sell: The purchase contract is the legally binding document that sets forth the terms of the sale, establishes

the rights and obligations of the parties involved, specifies the actions to be taken in order to close the sale, and establishes the time frames for those steps to be completed.

Closing: A meeting at which a sale of the property is finalized by the buyer signing the mortgage documents and

paying closing costs, and the seller’s transfer of the deed to the property. Typically held at the attorney’s office for the buyer. Closing Costs: The fees, costs, and taxes associated with the purchasing of a home, the borrowing of money, and

the preparation of necessary paperwork to finalize the sale. The total amount of closing costs will vary depending on location, property type, price, and the complexity of the transaction. It is extremely important that the buyer work closely with his/her buyer’s representative, lender, and attorney in the early stages of the home buying process to determine what these costs could be since closing costs can easily represent thousands of dollars. There are five categories of closing costs: (1) discount(s) points to buying down the mortgage; (2) the costs of originating the mortgage; (3) taxes and other local fees; (4) the cost of documentation; (5) legal fees and insurance. Commission: The fee charged by a broker or agent for providing services related to a real estate transaction such as

marketing the property, bringing the parties together, and negotiating a purchase contract.

Confidentiality: The fiduciary duty that prohibits the agent from communicating personal information about the

client that was given to or acquired by the agent within the scope of employment as an agent to the client. Personal information must be kept confidential unless the client releases the agent from this duty. However, the material facts and defects of a property are not confidential. Deed: The legal document conveying title to a property. Earnest Money Deposit: A deposit made by the potential home buyer to show that he or she is serious about

buying the house.

Escrow: A deposit of value, money, or documents with a third party to be delivered upon the fulfillment of a

condition. For example, the earnest money deposit is put into escrow, held by the broker, bank, or other party, until delivered to the seller when the transaction is closed. Typically held by the Listing Agency acting as Escrow Agent. Fair Housing Laws: Local, state, and federal fair housing laws that prevent discrimination against any individual

or group of individuals based upon race, color, religion, sex, handicap, national origin, or familial status, as well as other groups protected by various local and state fair housing laws. For Sale By Owner (FSBO): A property for sale that is not listed by a real estate professional. The Seller is

unrepresented.

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REAL ESTATE TERMS TO KNOW...continued Fiduciary Duties: The term fiduciary is defined as relating to or involving confidence of trust. Fiduciary duties

are determined by state law and generally include: confidentially, undivided loyalty, obedience, reasonable care and diligence, full disclosure, and accounting. Regardless of whether the duties owed in a particular state are traditional, common law fiduciary duties, or are statutorily defined, they are owed to any principal/client. Full Disclosure: The fiduciary duty that requires the agent to disclose affirmatively and honestly all information the

agent knows concerning the transaction (and property) which might affect the decisions a client or customer makes.

Good-Faith Estimate: An estimate of closing costs associated with the purchase of your home provided by a lender. Home Inspection: A thorough inspection that evaluates the structural and mechanical condition of a property. Home Warranty: A guarantee for mechanical systems and appliances, but not the structure, against repairs not

covered by homeowner’s insurance; coverage is for a specific period of time.

Inspections: Through a review of the general building, radon air, and water testing, general water testing, and

sewage disposal. Other inspections could include lead paint, hazardous waste, or any other areas of concern a buyer may have on a specific property. LTV (Loan to Value): The ratio of the amount of a mortgage loan to the appraised value or sales price of the

property mortgage, whichever is lower.

Lock-In: A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing

within a set period of time.

Mortgage Insurance: A policy that insures the lender against loss caused by a mortgagor’s default on a mortgage. Multiple Listing Services (MLS): A database of all properties for sale listed by members of a specified MLS. PMI: Private Mortgage Insurance is coverage provided by a private mortgage insurance company to protect lenders

against loss if a borrower defaults. Coverage is usually required for a loan with a loan-to-value (LTV) percentage in excess of 80 percent. Points: A point is one percent of the amount of the mortgage. At closing, Lenders sometimes charge borrowers a

percentage of the loan amount equal to the number of points to cover the lender’s cost. Sometimes borrowers pay higher points in exchange for a lower interest rate.

Pre-Approval: A written commitment issued by a lender after a comprehensive analysis of the creditworthiness

of the applicant including verification of income, resources, and credit score. A pre-approval makes you a more attractive candidate to the seller when making an offer.

Pre-Qualification: This is an estimation of what a purchaser can afford. This is commonly what a lender provides. REALTOR®: Identifies a real estate agent who is a member of the National Association of REALTORS® and

subscribes to its strict Code of Ethics.

Seller’s Property Disclosure: A report completed by the Seller, based on the Seller’s knowledge of the property

condition. This report does not replace the need for a property inspection by a professional.

Settlement Statement: A document prepared by an attorney, or lender detailing the complete breakdown of the

costs and disbursements in a real estate transaction.

Title Search: A check of the title records to ensure that the seller is the legal owner of the property and that there

are no liens or other claims outstanding.

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