THE ROAD TO
home ARIZONA HOME BUYER'S GUIDE
Racquel Miller REALTOR® | Global Real Estate Advisor 602-625-1181 | RACQUEL.MILLER@RUSSLYON.COM
All rights reserved. Sotheby's International Realty and the Sotheby's International Realty logo are service marks licensed to Sotheby's International Realty Affiliates LLC and used with permission. Russ Lyon Sotheby's International Realty fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each franchise is independently owned and operated.
GET TO KNOW ME
About Me .............................................................................................................. 2 Meet the Team .................................................................................................... 3 ReviewF .................................................................................................................. 5
BUYER ESSENTIALS
contents
Impo@tant ContactF........................................................................................... K The Home Buye@ P@oceFF ............................................................................... 8
THE PRENSEARCH PROCESS Getting Ready .................................................................................................... 10 Secu@e You@ Financing ................................................................................... 11 Get Qualified ...................................................................................................... 12 TypeF of Mo@tgage LoanF ............................................................................... 13
THE SEARCH PROCESS
Wo@king Togethe@ to Find the One ............................................................ 15 T@anFactionF, MileFtoneF & NegotiationF ................................................ 16 Make an Offe@ Ove@view ................................................................................. 1K
HOME INSPECTION The Home InFpection Ove@view ................................................................. 19
ESCROW AND TITLE Life of an EFc@ow ............................................................................................... 21 CloFing CoFtF N Who PayF What .................................................................. 22 Taking Title ......................................................................................................... 23
SCHEDULE YOUR MOVE Scheduling You@ Move .................................................................................... 25
CLOSING ESSENTIALS CloFing 101 ........................................................................................................... 2K CloFing Ove@view .............................................................................................. 28 The Jou@ney ContinueF .................................................................................. 29 Afte@ the CloFing ................................................................................................ 30 ThingF Not To Do Du@ing CloFing P@oceFF .............................................. 31
RESOURCES Home Compa@iFon CheckliFt ....................................................................... 33 Zip Code Map ..................................................................................................... 34 Local Se@vice Di@ecto@y .................................................................................. 35
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About Me...
Paradise Valley has been my home for almost two decades, having extensive knowledge of the area allows me to provide an unparalleled home buying or selling experience. Sellers benefit from my ability to secure optimal market positioning, while buyers can rely on my expertise to help find the ideal home and value. Additionally, my skills as a price strategy advisor ensure clients can make informed decisions with confidence. As a member of Russ Lyon Sotheby's International Realty, I offer a luxurious experience, regardless of price point. My dedication to client satisfaction and meticulous attention to detail will make the real estate process as seamless as possible.
Let’s Connect 602-625-1181 racquel.miller@russlyon.com www.racquelmiller.com www.facebook.com/racquel.a.miller/ www.instagram.com/racquelamiller/ www.twitter.com/racquelamiller/ www.linkedin.com/racquelmiller/
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Setting the Bar for Professionalism DEDICATED TO PROFESSIONAL REPRESENTATION AND EXCEPTIONAL CUSTOMER SERVICE
Racquel Miller
Specializing in Paradise Valley, Scottsdale, Phoenix area 18 Year Resident of the Town of Paradise Valley, 25 Year Resident of The Valley Bachelor of Science in Communication Master of Science in Education CERTIFIED LUXURY HOME MARKETING SPECIALIST™ (CLHMS™) GUILD™ RECOGNITION Graduate REALTOR® Institute (GRI) Accredited Buyer Representative (ABR) NAR Realtor Pricing Strategy Advisor (PSA) Senior Real Estate Specialist (SRES) e-PRO® Scottsdale Area Association of REALTORS®
REALTOR®
RUSS LYON SOTHEBY'S INTERNATIONAL REALTY Russ Lyon Sotheby’s International Realty has gathered Real Estate Advisors dedicated to the ideals of integrity and professionalism. From the ownership, management, agents and affiliate services, every person involved in the company utilizes innovative skills, programs and technologies to create the finest real estate services company. An inspired family relentlessly pursuing excellence in our industry and in life since 1947.
OUR TEAM The staff and management of Russ Lyon Sotheby’s International Realty are a unique team of talented, diverse individuals who have combined their efforts in the goal of delivering the most effective real estate services to our clients. Our clients have the daily support of in-house marketing, transaction coordination, legal, operations, and relocation.
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REVIEWS
REVIEWS "Racquel is a knowledgeable and dedicated real estate professional. She was a pleasure to work with throughout the entire process of our quest to find the “perfect” home. We most appreciated the fact that she was a great listener, patient, responsive and well organized. Racquel has a gift for dealing with all types of personalities and managed the experience with great finesse from out of town. We highly recommend her!" Rachelle
"Racquel Miller is a kind person who will work hard and go the extra mile to help you buy or sell your house. It's hard to find a good realtor who is there for theirs clients. She definitely will get the job done with a smile. Thank you Racquel, for making my experience so easy when purchasing my new home." Wendy
"We met Racquel at an open house. There were other offers on the property, but we feel using her made the difference of ours getting accepted. She is thoroughly professional, communicative, personable, and trustworthy. She was wonderful to work with and would recommend her." AZCasaDelSol
"Racquel worked with us for over a year and successfully helped us find the perfect home for us in Phoenix. She was patient, resourceful, insightful and a true pleasure to work with. And, she never gave up, even when first properties fell through. We highly recommend Racquel for both buyers and sellers!!" Vicki
"Racquel was a dream to work with and a true partner in our homebuying journey. We moved from FL to AZ and she was always communicative remotely as well as knowledgable of local areas/concerns to meet our needs. This was essential given we are new to AZ and really needed someone with her level of detail and care. She has a heart for her work and clients. Not to mention, she negotiated a terrific deal for us. She is one-of-a-kind. Our family couldn't be happier. HIGHLY RECOMMENDED!! Carlton
"Racquel is the consummate professional. We had a challenging buying process due to a variety of issues outside of our control. Racquel was with us every step of way keeping us informed, and going to bat on our behalf to help manage the stress. She was amazing! We could not imagine going through such a big purchase without her leadership, guidance and support." Veronica
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My passion is helping others. My calling card is service at the highest level. Committed to bringing you the most professional, informative, trustworthy & dedicated service.
important contacts RACQUEL MILLER- REALTOR®
TITLE AGENCY
Russ Lyon Sotheby’s International Realty 480-287-5200 602-625-1181 480-515-7676 Racquel.Miller@Russlyon.com
LENDER
HOME INSURANCE
HOME WARRANTY
HOME INSURANCE
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T H E HOME BUYING
process
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THE PRE-SEARCH
process
GETTING The Pre-Search Process Define your Goals, Needs & Budget It is important to clarify your specific needs, your budget and your personal preferences, including considerations to any anticipated changes in your life. All of them will impact the purchase of your home. BUDGET RANGE: Target Budget: ________________________ Maximum Budget: ____________________________
PREFERRED PROPERTY TYPE: _____ Single-Family Home _____ Townhome _____ Condo / Apartment _____ Multiplex _____ Vacation Home _____ Other: _______________________
PROPERTY FEATURES:
Need
Want
Why
Bedrooms: Bathrooms: Square Footage: Roof Type: Study / Office (circle) Formal Living Room Dining Room (circle) Media Room / Game Room (circle) Garage / Parking Spaces Pool / Spa Landscape Style Casita/ Guest House Lot Size Floor plan / Layout Style of Home Home Age Preferred Zip Codes: Other Features:
OTHER CONSIDERATIONS: How long do you plan to stay in this home? Will you spend “different stages of life” here? Do you have children / plan to? Are you empty-nesting soon? Are you close to retirement? Any special needs / relatives who may move in?
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SECURE YOUR
finances
It is imperative to begin your search by evaluating your financial situation, confirming your budget, familiarizing yourself with mortgage options and securing pre-approval from a lender. This will help you conduct your search with confidence and negotiate for your desired home successfully. We work with several wonderful lenders who are excellent communicators, advocators, and who ensure your loan is handled efficiently and effectively.
BUDGET, DOWN PAYMENT & CREDIT RATING. • Loan officers will need to understand your debt to income ratio, as well as your total monthly expenses. Mortgage lenders recommend you do not buy a home that is more than 3 to 5 times your annual household income. If you are not purchasing a home with cash, you will need a mortgage pre-approval provided by your mortgage lender. A lender will work with you to get a loan that meets your needs. Some buyers are concerned with keeping their monthly payments as low as possible, others want to make sure that their monthly payments never increase.
SAVE CASH FOR A DOWN PAYMENT & OTHER EXPENSES In order to make your dream of buying a home a reality, you will need to save cash for your down payment, earnest money, closing costs & home inspector. If your down payment is less than 20% of the purchase price, you will need to purchase mortgage loan insurance; this is typically added to the mortgage loan. Many loan products are available: 3.5% down with FHA, 0% down with VA, and there are conventional products with as little as 3% down payment. •Earnest Money is money you put down to show you’re serious about purchasing a home. It’s also known as a good faith deposit. •Closing Costs for the buyer run between 2% & 5% of the loan amount •A Home Inspection cost will vary depending on the size of the home and what types of inspections are performed
CHECK YOUR CREDIT Credit reports play an important role in the approval process and in determining your interest rate. You can confirm your rating with any one of the three credit bureaus: TransUnion, Equifax and Experian A mortgage requires a good credit score. You can improve your score by: •Paying down credit card balances •Continuing to make payments on time •Avoid applying for a new credit card or car loan until you have been approved •Avoid making big purchases until you have been approved •If possible, avoid job changes until you have been approved
CALL A LENDER I am happy to send you a list of highly trusted lenders with whom I’ve established professional, client- focused relationships. I do not get paid to refer our valued clients to these individuals. They simply take excellent care of our people. Feel free to ask questions and compare available loan products and interest rates.
SUBMIT LENDER-REQUIRED PAPERWORK Some online lenders will provide a pre-qualification letter after you’ve spent five minutes on their website; our lenders will conduct thorough due diligence and ask for income documents, bank statements and other requirement paperwork to verify your budget to ensure that you don’t run into problems and headaches down the line. The faster you provide paperwork, and the more transparent you are about your finances, the better situated you become to conduct a highly successful home purchase.
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Page 1
GET
qualified
TYPE OF LOAN
CREDIT SCORE
DOWN PAYMENT
VA LOAN
620
NO DOWN PAYMENT
USDA LOAN
620
NO DOWN PAYMENT
FHA LOAN
580+ 500-579
3.5% 10%
203K LOAN
640
3.5%
CONVENTIONAL 97
620
3%
CONVENTIONAL LOAN
640
5-20%
INCOME
qualifications
QUALIFYING INCOME
NON-QUALIFYING INCOME
W-2 Income/Salary Income from part-time jobs Income from a second Job Overtime & Bonuses Seasonal jobs Self-employed Income Alimony & child support (Documentation required)
Income from the lottery Gambling Unemployment pay Single bonuses Non-occupying co-signer income Unverifiable income Income from rental properties
NEEDED
documents
W2’S FROM THE PAST 2 YEARS 3 MONTHS WORTH OF PAY-STUBS BANK STATEMENTS (PAST 3 MONTHS) PREVIOUS 2 YEARS OF TAX RETURNS LIST OF YOUR DEBTS & ASSETS DIVORCE DECREE ADDITIONAL INCOME DOCUMENTS
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TYPES OF LOANS
TYPES OF WHO QUALIFIES
mortgage LOANS
DOWN PAYMENT
UPFRONT MORTGAGE INSURANCE
MONTHLY MORTGAGE INSURANCE
MINIMUM CREDIT SCORE
NONE
NONE
NONE
580
Veterans VA Department of Veteran Affairs
Personnel with honorable discharge Reservists & National Guard Surviving Spouses
USDA Department of Agriculture
Someone who is buying a home in a USDA -designated rural area.
NONE
2% of the loan amount. Can be rolled into loan amount.
REQUIRED
640
FHA Federal Housing Administration
Anyone who meets the minimum credit and income levels.
At least 3.5% of purchase price
1.75% of loan amount
REQUIRED
580-640
Anyone who plans to purchase a fixer-upper or needs to renovate their home and meets credit & income requirements
At least 3.5% of purchase price
1.75% of loan amount
REQUIRED
580-640
Depending on the program, available first time home buyers (a buyer who hasn't owned in the last three years) can put 3% down with a Conventional 97 program.
Varies from 3%-20% of purchase price
NONE
REQUIRED
620
Anyone who meets lenders credit, income & debt level requirements
Varies from 3% -20%, but typically ranges from 5-20%
NONE
REQUIRED
620
203K Federal Housing Administration
CONVENTIONAL 97
SELECT SMART PLUS
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THE SEARCH
process
one
Working Together to Find the LOCAL EXPERTISE & PROPERTY SPECIALIZATION: I am here to help you find the perfect property that matches your needs, wants, budget, and intended lifestyle. By leveraging my in-depth knowledge of the local market and extensive experience negotiating deals, I will represent your interests through the entire process. Your goals will be our top priority, and we will work together to find the most suitable property type and neighborhood for you.
HOW WE TACKLE THE SEARCH: 1. Buyer Interview. Let's establish your goals and timeline for purchasing a home together. 2. Buyer Portal. You will receive a MLS search portal to capture all available properties that meet your specific search criteria. Initially, I will set broad search parameters to avoid missing any potential homes, and then we can narrow down the search as per your feedback. It's like a funnel that captures all possible homes and filters them out based on your preferences until we arrive at a few top choices. The search will also include off-market or early access opportunities available through our brokerage's inventory and our extensive network of highvolume agents in the area. 3. Showings. I promptly respond to listings that meet your criteria and schedule property tours according to your needs. 4. Feedback Loop. I work closely with my clients to understand their vision for their next home. During our tours of homes and online inventory reviews, we always refer back to a running "Top Three" list of priorities. If needed, we adjust our online search criteria to more accurately reflect your preferences.
FINDING THE ONE: • Pricing Evaluation: I will analyze the market and determine if the home is priced appropriately to ensure we make the best offer. This will give us a better understanding of how to strategize our offer. • Listing Status Evaluation: I will always call the agent to understand the history of the listing, whether there are other interested parties, and if possible, to determine the motivation of the sellers. • Your Offer: I will make our recommendations to you for all pertinent terms of the offer contract, not just price. You, as always, have the final say of how you want to proceed.
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TRANSACTION MILESTONES & LEGAL & CONTRACUAL OBLIGATIONS: It’s important to understand that an offer commits you to certain legal and contractual obligations as soon as the other party has accepted it. That is why I will always discuss at length the various terms associated with the contract: price, inclusions and exclusions, earnest and option money, the time you have to conduct inspections, negotiable terms that have an impact on your closing costs and your close and possession dates.
SPECIAL CIRCUMSTANCES: • You need to sell a house first: making a contingent offer is something I am well-versed in; your success will depend on an accurate and detailed report of your current home’s status. • There are multiple offers: a high-demand property can experience multiple offers; our goal will be to understand the most important terms to the seller, and work to tailor the strongest offer possible based on your motivation and toleration of risk utilizing all terms of the contract (not just price).
POTENTIAL RESPONSES: You can expect one of three responses to your offer, the timing of which is at the sellers’ discretion: • Accepted: the deal is complete, and the offer becomes a legal binding contract. • Countered: the seller may make changes to your terms. You can choose to accept or further counter. • Rejected: the seller may choose to outright reject the offer.
OFFER ACCEPTED: More often than not, we will be in Active Option Status. You’ll get a “next steps” email detailing important deadlines, due-outs, and what to expect from the inspection and appraisal process from a negotiations and logistics standpoint. Our big priorities will be to deliver required payment for earnest and your option (inspection) period, and to set up your professional inspection of the property.
WHEN WE GO “PENDING”: Normally a point of relief for all parties, we’ve concluded the majority of negotiations – barring any appraisal issues. You’ll get another “next steps” email detailing coordination we’ll need to make for ordering the appraisal, exchanging keys, granting further access, conducting final walk-throughs, closing and move-in. I will proactively communicate throughout the process. I am with you every step of the way.
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MAKE AN OFFER OVERVIEW WHEN TO MAKE AN OFFER: So you have found THE house! Congrats! In today’s market when the demand is higher than the amount of homes available it is important to act fast!
HOW MUCH TO OFFER: We will sit down and look at recent sales and current buyer activity in the area, as well as the value of the property in its present condition. Putting all this information together, we will determine the price that you would like to offer.
SUBMITTING AN OFFER There are some components to an offer that makes it more appealing to the sellers.
•Put Your Best Foot Forward We will work together to discuss your options and create your very best offer. Depending on the circumstances, you may have only one chance to make a good impression.
•Put Down a Healthy Earnest Deposit A large earnest money deposit shows the seller you are serious
•Cash Talks A transaction that is not dependent on receiving loan approval is more attractive to a seller
•Shorter Inspection Periods Try shortening the inspection period
•Offer to Close Quickly Many sellers prefer to close within 30 days.
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THE HOME
inspection
HOME INSPECTION
ASKING FOR REPAIRS OR DISCOUNTS
Issues typically arise after the home inspection, and those issues tend to result in another round of negotiations for credits or fixes. 1. Ask for credit for the work that needs to be done. Likely, the last thing the seller wants to do is repair work. 2. Think “big picture” and don’t sweat the small stuff. A tile that needs some caulking or a leaky faucet can easily be fixed. Repairs are still up for negotiation and perhaps a small credit would help with closing costs. 3. Keep your poker face. The listing agent will be present during inspections and revealing your comfort level with the home could come back to haunt you in further discussions or negotiations.
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ESSENTIALS FOR
title and escrow
LIFE OF AN
escrow
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CLOSING COSTS
who pays what
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taking TITLE
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SCHEDULE YOUR
move
scheduling
YOUR MOVE
AFTER SIGNING
•Finalize Home Mortgage •Schedule Home Inspection •Declutter! Sort through every drawer, closet, cupboard & shelf, removing items you no longer need or like. Donate or sell items that are in good condition •Get copies of medical records and store them with your other important documents •Create an inventory of anything valuable that you plan to move •Get estimates from moving companies
4 WEEKS TO MOVE
•Give 30 days notice if you are currently renting •Schedule movers/moving truck •Buy/find packing materials •START PACKING
3 WEEKS TO MOVE
•Arrange appraisal •Complete title search (Title company will do this)
2 WEEKS TO MOVE
•Secure Home Warranty •Get quotes for home insurance •Schedule time for closing •Contact utility companies (water, electric, cable) •Change address: mailing, subscriptions, etc. •Minimize grocery shopping •Keep on packing
1 WEEK TO MOVE
•Obtain certified checks for closing •Schedule and attend a final walkthrough •Finish packing •Clean •Pack essentials for a few nights in new home •Confirm delivery date with the moving company. Write directions to the new home, along with your cell phone number
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CLOSING
essentials
closing 101 THE TITLE THE TITLEAGENCY AGENCY
TITLE AGENCY
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closing overview CLOSING DISCLOSURE
Lenders are required to provide you with a closing disclosure, at least three days before closing. This will show you your final loan terms and closing costs. You will have three days to review the statement. This is done to ensure no surprises at the closing table. If there is a significant discrepancy between the loan estimate and the closing disclosure, we must notify your lender and title company immediately.
CLOSING COSTS Closing costs can vary depending on your home’s purchase price and where you are located. You can generally expect your closing costs to be around 3% to 4% of the home’s sales price. These closing costs can sometimes be shared with the seller.
FINAL WALKTHROUGH We will do a final walk through the home within 24 hours of closing to check the property’s condition. This final inspection takes about an hour. We will make sure any repair work that the seller agreed to make has been done.
DOCUMENTS FOR SIGNING • Government-issued photo ID • Copy of the sales contract • Homeowner’s insurance certificate • Proof of funds to cover the remainder of the down payment and your closing costs
SIGNING DAY Closing paperwork is usually signed with a mobile notary, but it can also be done at the title company. You will be signing lots of paperwork so get your writing hand warmed up! Some of the papers you will be signing include the deed of trust, promissory note, and other documents.
RECEIVE YOUR KEYS Once you have recorded you are officially a homeowner and will receive your keys!
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THE JOURNEY COORDINATING FOR CLOSING & KEEPING IN TOUCH AT THE CLOSING TABLE: • I strive to be at all our closings so I can help answer any questions you may have and calm nerves; it helps to have a friendly, familiar face present when you’re signing important paperwork. • Some time prior to closing, you’re going to get a “Fun Facts” sheet to fill out. Birthdays, anniversaries, hobbies and favorite restaurants…I want to know! I will gladly collect this from you at closing. • You can also expect to see an emailed testimonial request from me following closing. Don’t worry – if you aren’t Shakespeare, I won’t take offense – but your kind words make such a difference for my business.
CHECKING IN WITH VALUABLE UPDATES: I strive to earn the right to call myself your Realtor for life. I believe in relationships, and I believe in being of service to you well beyond the transaction. Expect to hear from me asking about any of the following: • Did you make the move okay? • Do you need any resources for your new home (painter, plumber, home decorator)? • Are you considering any improvements and want to understand their impact on resale? PROVIDING AN ANNUAL REAL ESTATE REVIEW: Once a year, I will reach out to grab coffee, lunch or a quick phone call with you to review a snapshot of the market as it pertains to your new home. If we review over the phone, we will mail you the documents so you can keep the information in your files. The real estate chat normally takes 5-10 minutes. More importantly, it’s our chance to sit down and catch up with you.
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AFTER THE
closing TITLE AGENCY
THE TITLE AGENCY
THE TITLE AGENCY
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r e d n i Rem
THINGS NOT TO DO DURING THE CLOSING PROCESS
DO NOT CHANGE YOUR MARITAL STATUS How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly.
DO NOT CHANGE JOBS A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don’t think you’re safe because you’ve received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan.
DO NOT SWITCH BANKS OR MOVE YOUR MONEY TO ANOTHER INSTITUTION After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.
DO NOT PAY OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.
DO NOT MAKE ANY LARGE PURCHASES A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.
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buyer R E S O U R C E S
HOME COMPARISON
checklist
PROPERTY
BUYER NOTES
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ZIP CODE MAP
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METRO PHOENIX
LOCAL SERVICE
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THE ROAD TO
Racquel Miller REALTOR® | Global Real Estate Advisor 602-625-1181 | RACQUEL.MILLER@RUSSLYON.COM