SSEELLLLEERR' 'SS GGUUIIDDEE -- 22002200
Buyer's
Guide
26119 I-45 North, Suite 206 The Woodlands, TX 77308
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BUYER'S GUIDE
Welcome Home. Dear Buyer, The feeling of homeownership is like no other. It's an exciting time to watch dreams become reality where you realize your hard work and sacrifice deliver the ultimate payout. Whether you are just starting out, raising your family or settling in for an enjoyable retirement, the purchase of a home can be the most sizable investment of a lifetime. One that comes with both great joy and sometimes a little anxiety. Because this time can be stressful as you deal with all the steps to close a home, we are excited to partner with you. As an experienced Realtor® I bring a team of qualified lenders, professional contractors, licensed inspectors and other specialists to close you on time and hassle free. I offer my clients a deeper insight into current market conditions, a step-bystep guide from initial contact to close, a personal property search portal, research on selected properties, and how to position a buyer to win in multiple offer situations. Overall it is a comprehensive strategy, individualized to meet your unique needs where you are today. I am excited for the opportunity and can't wait to get started!
DARLA NUNLEY R E A LT O R ® BBA-MARKETING, CHMS , CNE
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BUYER'S GUIDE
She worked with me through all the issues that come with buying a house. I couldn’t make it through this process without her." -Katie S.
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Buyer's Guide. My Resume
05
Why Choose Me
06
Contract to Close
07
G l o s s a r y o f Te r m s
12
C l i e n t Te s t i m o n i a l s
15
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BUYER'S GUIDE
My Resume. I am a full-time Texas Real Estate Agent that has received numerous awards, closed millions in real estate and built a successful business with satisfied clients. Before my career in Real Estate, I spent several years working in the highly competitive world of marketing and advertising. I understand the importance of communication, superior marketing and getting the best return on investment possible. While I strive to be the best at everything I do, my clients say my most valued skills are market analysis, negotiation, business and communication skills. My qualifications include a Bachelor of Business in Marketing, Certification as a Home Marketing Specialist (CHMS) for Asset Staging and a Certified Negotiation Expert (CNE). Along with my years of experience, these are my essential tools to help position buyers in an ever changing market. I have worked with amazing clients like you such as military, first-time homebuyers, luxury, farm and ranch, as well as the ever-desired single-family home. With all the complications in buying a home, who you chose as a Realtor® matters. I love what I do and look forward to working with you.
MILLIONS
EXPERIENCED
MARKETING
IN REAL ESTATE SALES
FULL-TIME R E A LT O R
BACKGROUND & BBA DEGREE
NEGOTIATION EXPERT
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BUYER'S GUIDE
Why Choose Me? Communication
Past Performance I have closed more transactions as a single
I want you to know what is happening each
agent than 95% of most agents in their entire
step of the way and what to expect. I provide
career. I put a high value on customer service,
you with weekly updates and inform you on the
client
I
status of the sales process. You are able to email,
partner with you from the initial meeting to
text or call with any questions or comments you
the closing table.
may have.
satisfaction
and
communication.
Referrals
More Money i n Yo u r P o c ke t
70% of my business comes from past clients
In order to net you more money and negotiate
and referrals.
you the best offer, I will review the current
Clients return because of my
professionalism,
transparency,
advice
and
superior customer service. They entrust their
home values in the area and price your home competitvely.
family, friends and co-workers to me because they know I can get the job done.
Te c h n o l o g y Mobile Agent
From virtual tours and facetime showings to working with lenders to digitally close, I utilize
How can I serve my clients at such a
the latest tools to help ensure our clients
personal level? I am a Mobile Agent. All
receive the best competitive advantage. To
documents, contracts, listings, resources and
help keep me at the top of my game, I do my
communications are available to you matter
research, attend continuing education courses
where I am.
and stay up-to-date on nationwide and local real estate news.
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BUYER'S GUIDE
Contract to Close. S t e p B y S t e p G u i d e t o Yo u r N e w H o m e Congratulations! You've made the decision to invest in your future. Whether you are a first-time home buyer or seasoned homeowner, purchasing a home can be stressful. In these next few pages, I'll give you an idea of what to expect. Remember, I'm always available for questions at any time! As your agent it is my job to make sure you are confident in the process and satisfied with the results.
0 1 . C h o o s i n g Yo u r R e a l t o r
08. The Title
02. Pre-Approval
09. Closing Day Preparation
03. The House Hunt
1 0. H o m e Wa r r a n t y
04. The Offer
11. Clear to Close
05. Closing Process
12. Closing Disclosure
06. Inspections
13. Closing Day
07. S u r vey a n d A p p ra i s a l
1 4 . Yo u A r e N o w A H o m e o w n e r
S t e p 0 1 : C h o o s i n g Yo u r R e a l t o r When
buying
a
home
there
are
BUYER'S GUIDE
many
professionals whom you will encounter; from your loan officer to your insurance agent. But the most important member of your home buying team is your Realtor. You should be able to rely on your Realtor and feel comfortable expressing
concerns
and
asking
them
questions. As an experienced and trustworthy real estate agent, I’ll be that professional for you - pursuing your best interests, advising and negotiating to your goals.
Step 02: Pre-Approval Pre-approval is your ticket to shop. This ensures you are comfortable with your monthly payment, price range, estimate of costs, interest rates and fees. You must have a pre-approval letter in order to submit an offer on any property. Your lender should also discuss with you what is needed for closing costs or guide you on buyer's assistance or other programs that you may qualify for.
Step 03: The House Hunt If you are unfamiliar with the area in which you are considering, use the internet to your advantage. Check school ratings, crime reports and drive the neighborhoods at night and on the weekends. Be sure to speak with me if you have other concerns you would like researched.
Step 04: The Offer Congrats, you have found the home of your dreams. As your agent, I will run a market analysis for the homes in that area and advise you on the offer you will make based on the sale of homes. The process starts with presenting the seller’s agent with your offer. The seller may accept, decline or counter your offer. We negotiate until you are happy with the offer and the seller has accepted. Once the seller accepts, all documents are executed and you are now in an executed and legally binding contract.
Step 05: Closing Process
BUYER'S GUIDE
Two timing items that will be addressed right away are delivery of the earnest money (EM) and option check. The earnest money is your good faith that you will be purchasing the home. Earnest money is typically 1% of the sales price and is applied toward your down payment and/or closing costs. The title company will then "open title" and begin obtaining the title policy. You will also write a check for option money, payable to the seller which usually runs $100-250. You have an option period in your contract (normally 7-10 days) in which you have ALL of your inspections completed (home, pool, septic, well, termite, etc.). The Buyer pays the Seller for the option period and this option fee is NONREFUNDABLE but can be applied to your closing costs if negotiated in the contract.
Step 06: Inspections Inspections are crucial! You are allowed to perform any inspections you feel necessary. If you do not have a trusted inspector, I can offer some guidance.
These can involve the typical home inspection,
termite, well, septic, pool, plumbing, electrical, mold and more. It is highly recommended you attend the Inspection to see first-hand the items noted by Inspector. Once all inspections are completed, you will negotiate any repairs with the Seller. If negotiations are NOT successful and the contract is terminated, the Seller keeps this option money but the EM is refunded. If negotiations ARE successful and you proceed with the purchase of the home, the option fee and earnest money are applied toward the home. All inspection fees are BUYER expenses and will be paid out of pocket. A typical Inspection will cost $450.
Step 07: Survey and Appraisal The lender will order the appraisal of the home. The appraisal must come back with a value of the contract price or more or it will have to be renegotiated with the Seller. If the home does not appraise for the sales price and no agreement is made, you may terminate the contract and receive the earnest money back. The appraisal is at your expense as a buyer and is usually around $500. Your lender may request you pay it out of pocket or they may put it on the closing statement to be paid when the home is closed. If the home appraises over the contract price, no further action is needed, you have instant equity. If the seller provided a current survey and your lender and title company have accepted it, no further action is needed. If not, we will work to order a new survey. The price can vary depending on amount of property but generally it is $500 and usually paid for by the buyer. We try to order that after the appraisal has been returned to avoid any unnecessary costs.
Step 08: The Title A title commitment will be sent to all parties in a timely manner upon receipt of earnest money. The title commitment is used to insure a clear title to the buyer. There are 4 main sections each detailing different areas of review. I will supply you with information on what to look for when we receive that information. The survey is approved by the title company for their insurance purposes as well as any liens against the property and rights that do or do not convey with the property.
Step 09: Closing Day Preparation Once the option has passed, the title commitment has been reviewed and appraisal has been released, it is time to search an insurance policy for the home, flood insurance if needed, moving company and begin utility set up.
S te p 1 0 : H o m e Wa r r a n t y The home warranty is negotiated in the contract. If you would like a home warranty, now is the time to review those and choose the plan best for you. I will provide any information to the title company. Not all home warranty companies are the same. Do your research, understand the coverage limitations, and reach out to me with any questions.
Step 11: Clear to Close The lender is doing all the work to get the file ready to submit to underwriting and we are waiting on those three very special words - CLEAR TO CLOSE! This means the Lender has all the documentation they need to approve the loan and we have a green light to set the closing of your new home! When financing the home you have a finance period built into the Third Party Contract that declares you choose to qualify and the time period in which to do so, usually 21 days. If you fail to meet approval, we notify Seller and EM is returned. If you do not qualify inside of this timeline, your EM is forfeited to the seller. To limit the possibility of issues on approval, lenders suggest following the list below during the entire process up until you are handed the keys. All of these items could result in an immediate change of your approval. What NOT TO DO when buying a home: 1. Do not open any new type of credit 2. Do not charge anything on your existing credit cards outside of normal day-to-day expenses 3. Do not buy a car or co-sign for anyone on anything 4. Do not spend (or deposit) large amounts of money 5. Do not legally get married 6. Do not change jobs
Step 12: Closing Disclosure The lender prepares the Closing Disclosure which is an itemization of all fees being paid by the Seller and Buyer. You will receive a copy 3 days before closing and you MUST acknowledge receipt and authorize signatures. It will advise you of the amount of money you need to bring to closing. All funds brought to closing must be a certified check or wire transfer payable to the title company. Until you authorize, the 3 day close window does not start.
Step 13: Closing Day On closing day we will perform a walk-through of the home to ensure all agreed repairs were made and the home is in clean and presentable condition. The closing will take place at the title company. You will bring funds and your driver’s license to the closing. Closings normally take about an hour, if you are married both parties will be required to sign the deed as Texas is a community property state. Funding takes place once all documentation is signed and reviewed by the Lender and a funding number has been issued. This can take 20 minutes or a few hours the Buyer will not be allowed to have keys to the home until the transaction has funded.
S t e p 1 4 : Yo u A r e N o w A H o m e o w n e r Congrats you are now an official homeowner! You will need to file with your appraisal district to register the home in your name. The homeowners association will require a copy of your closing documents and you will need to register your name with the post office address. It's also time to update your driver's license.
Glossary of Terms When buying a home it is important to understand some of the key concepts and terms relevant to your home purchase contract. Throughout the process, I will be available to explain any unfamiliar terms you encounter.
Appraisal: A certified estimate of the market value of a property based on local market data and the recent sale prices of similar properties. An appraisal is conducted by an independent appraiser whose job is to assess the monetary value of the home. We have to ensure the home is actually worth what you are paying for it.
Closing Costs: There are many costs involved with closing a home. Both you and the Seller are responsible for their own costs unless negotiated in the contract. A seller's costs typically include the title policy, recording and legal fees from title company and commission to the realtors. A buyer’s costs usually pertains to the lenders fees, escrow prepays, and the title company fees. The costs will be estimated to you by your lender and finalized just before closing. In general you can estimate 3-4% of the contract price of the home in closing costs. This is in addition to the down payment/earnest money required by the lender/seller. Your lender will determine if you need to negotiate those in the offer.
Competitive Market Analysis: This is a report prepared by your realtor when evaluating the potential best price on a home. It takes into account homes in and around the subject home area that best fits the property. It is a best guess and used for analysis purposes only. The market price of a home is what a buyer and seller are willing to purchase and accept a sales price on, not just a set of numbers. Your realtor should go over the numbers with you and provide a solid range given the market of recent solds.
Contingency: A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding.
Counter-offer: An offer, made in response to a previous offer, that rejects all or part of it while enabling negotiations to continue towards a mutually-acceptable sales contract.
Earnest Money: A deposit given by the buyer to bind a purchase offer and is held in escrow. If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not fulfill all contract obligations, the deposit may be forfeited. The earnest money is typically 1% of the contract price.
Escrow: If you are not putting 20% down, you are required to escrow your taxes and insurance which means to pay them monthly within your house payment. Escrow accounts are used by loan services to pay property taxes and homeowners insurance. Lenders will require 15 months of HOI and 2 months of property taxes paid upfront at closing.
Escrow Fee: A fee charged by the title company to service the transaction, to escrow monies, and cover documents. The amount varies with company; usually split between the buyer and seller.
Funded: Once buyer and seller have signed all the documents and the lender or title company has cleared all the paperwork, the last item is a funding confirmation. This tells the parties that money has been received and will be distributed. It is at this time buyer will be given keys to the home.
Home Inspection: Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of every component. Home inspections range from $400-700 depending on what you are having inspected. Add-ons can be termite (VA Requires at $85), pool, well, septic, etc. This money is always non-refundable.
Homeowner's Insurance: Protects the property and its contents in case of loss. Must be insured for at least the loan amount or for 80% of the value of the improvements, whichever is greater.
Loan Discount: The points a lender charges; may be paid by either buyer or seller on conventional loans; points fluctuate with mortgage money market.
Monthly Mortgage Payment: Working with your lender, be sure you understand the estimated amount your monthly payment will be after you close. The only time this amount will change is if 1) your property taxes increase and you do not contest them in the time allowed or 2) your homeowners insurance increases. Your interest rate is typically fixed and will not change in the life of your loan.
Option Fee: The option fee provides a buyer with a grace period to allow termination of the contract within a 5-10 day window. It's typically anywhere from $100-250.
Pre-Approval: This is your key to shop. Issued by the lender after you have provided documentation that is reviewed and verified. It is different than a pre-qualification and more important. If your lender has not asked for paperwork verification, you are not pre-approved.
Private Mortgage Insurance (PMI): Insurance against a loss by a lender in the event of default by a borrower. Required by a lender with less than 20% equity in the loan.
Real tor Fees: An amount paid to the Realtor as compensation for his/her services.
Recording Fees: Charged by the county clerk to record documents in the public records.
Survey: A property survey defines the boundaries of a plot of land. This clarifies the size and where the land begins and ends as well as any existing encroachments and easements. An updated survey is important for legal municipal laws that are not fixed and can change from time to time. A new survey is typically a buyers expense usually $500 depending on property size.
Tax Proration: Collected by the title company at closing to reimburse buyer for the time the seller lived in the home for the current year. Buyer is then responsible for full amount when taxes are due the following year.
Tax Certif icates: Certifications issued by taxing authorities showing the current year's taxes, the last year the taxes were paid, and any delinquencies, collected at closing.
T i t l e P o l i c y : This is a commitment outlining different areas of clearance. The title company will deliver a set of exempted coverages and clear any clouds on the title that prohibit the seller from delivering a clean deed to you. Items included are if the survey is approved if one is provided by seller, all the exclusions listed in the insurance policy including survey coverages unless additional insurance is purchased, all the parties involved in the contract and any clouds currently recorded with the title, etc.
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Testimonials. Glenn K. "Darla Nunley, made it happen. After making an offer on our dream the surprises started .... one after another (wills, probate, deaths, second marriages, 2 heirs, etc, etc) and a two week closing got pushed back to just over a month, but actually should have taken a lot longer. Thanks to Darla being so smart, diligent, intelligent, connected, proactive, and patient we got done what most people would have given up on. I cannot express my gratitude adequately enough through a post, but I hope it helps gain her business, because she deserves it, REALLY, REALLY deserves it. We love you Darla .... thank you from the bottom of our hearts. We are so, so happy with our new space."
Katie H. "Darla was absolutely amazing, she took fantastic care of me and was able to help me find the perfect home to suit my needs. She had the resources to get my loan approved and taken care of and she worked with me through all the issues that come with buying a house. I couldn't of made it through the process without her!"
Shannon V. "I cannot say enough about our experience with Darla Nunley!! She was prompt at getting our house on the market as we were on a short time frame, photos were beautiful and she spent a great length of time putting descriptions to each photo posted on HAR. She followed up with each agent after they showed our house to push them for feedback and when we got our offer she knew the answer to every question asked. We had an offer in 8 days from going on the market. I have and will continue to recommend her."
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Murray and Pat M. "Darla gave me good advice on how to market my home for the best combination of price and days on market. She arranged for staging and other services to help me get the house ready for market. She prepared a comprehensive information package for prospective purchasers and provided market data to set a fair price. Darla managed my home sale actively and kept in touch appropriately. The listing and sale process was hassle free and uncomplicated because of her involvement. She is a pleasant and very qualified. I would be pleased to do business with her again. Highly recommended!"
Landon and Lauren C. "My fiance and I were extremely happy to have Darla as our Realtor! She did a fantastic job looking through the various areas we were interested in and sending us numerous options to look through. She did a great job making time to show us the houses we were interested in and communicated extremely well. She was awesome at explaining a ton of complex information that we did not understand as first time home buyers. We would highly recommend Darla to anyone looking at buying a home!"
Te r r a n c e a n d C h r i s t a n H . "Darla was the epitome of a Realtor professional. She kept me and wife informed at all times throughout the entire process. We will definitely recommend her to our family and friends looking to buy. She's became our lifetime Realtor. We could not have asked for a better agent!"
Seth M. "Darla is a great Realtor and a great person to work with. She made the transaction very easy and guided us through every step. She is a very knowledgeable person and we would definitely recommend her services to anyone."
Gary and Suzanne A. "It was a great experience working with Darla! She was amazing. Worked very hard on our search and was in contact with us regularly."
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Notes.
Thank You! Darla Nunley Real tor®
darla@darlanunley.com Mobile: (7 13)705-167 1 Off ice: (281) 324-1300 www.da rl anun l ey.com
25419 FM 2100 Huffman TX 77336