THE COMPLETE GUIDE TO
BUYING YOUR HOME PREPARED BY DAVID OESTERLE RE/MAX Excalibur
SEARCH ANYWHERE, ANYTIME. https://davidoesterle.remax.com/mobile-apps
DA V ID OE STE RL E Realtor® | RE/MAX Excalibur ABR, CIAS, CDPE, CRS, GRI, CLHMS
602.920.6888 Dave@HomeTeamAZ.com www.HomeTeamAZ.com RE/MAX Excalibur 8510 E. Shea Boulevard, Suite 100 Scottsdale, AZ 85260 Connect with me on
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Over 27 years in real estate, all of which have been with RE/MAX.
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Valley resident for over 45 years with extensive knowledge of Scottsdale and the surrounding areas.
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Attained RE/MAX Hall of Fame, Lifetime Achievement, Chairman, and Platinum levels with $300,000,000 in sales volume since beginning his career.
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A portion of all sales commissions go to supporting the Children’s Miracle Network or Arizona Humane Society.
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Top Producer 2020 - PHOENIX Magazine
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America’s Top 100 Real Estate Agents, Top 1% - Arizona-Scottsdale Metro, 2021
Whether buying or selling, I pride myself on getting you the most value for your money. It is a responsibility that I take seriously, and a commitment I make personally. David is a member of the National, Arizona, and Scottsdale Association of Realtors and has been with RE/MAX since he began his career in 1995. He has earned the RE/MAX Hall of Fame and Lifetime Achievement awards as well as the RE/MAX Chairman’s, Platinum, and 100% Club member awards. David is a graduate of the University of Arizona, with a major in Psychology and Business. In his ongoing commitment to provide the highest levels of customer service and satisfaction, he has earned through continued education, the designations of Accredited Buyer Representative, Certified Distressed Property Expert, Certified Investor Agent Specialist, Certified Luxury Home Specialist, Certified Residential Specialist and Graduate of the Realtor Institute. David has been a resident of the valley for over forty years and his extensive knowledge of the area makes him well qualified to assist in both the home buying and selling process. David specializes in luxury homes, residential single family homes and estates, real estate investment, multi-family homes and distressed properties. With extensive experience as a Scottsdale Realtor® and servicing all areas in Maricopa County, I help both buyers and sellers meet their real estate objectives. I have extensive knowledge of each of the communities located in and around Scottsdale, and I will work tirelessly on your behalf to make your next home buying or selling experience a pleasant and successful one.
W E LC OME TO B U Y ING A H OME The buying process is a combination of excitement, stress, and new experiences, whether you are a seasoned home buyer, property investor, or this is your first time buying a home. Buying a home is not something people do on a regular basis, which is why it is crucial to have an expert consulting you at each step of the process. This Buyer’s Guide is intended to give you a resource that will help you define your
goals, research your options, and direct you through the process so that you can make informed decisions. When you buy a home, it should be about YOU: • • • • • •
Your dreams Your requirements Your financial situation Your time Your lifestyle choices Your concerns
1 0 STE PS TO B U Y ING A H OME BUYER START HERE
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Define Your Goals
Research Your Options
Make Your Plans
Select a Realtor ®
Get Pre-Approved
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Begin the Moving Process
Prepare for Closing
Remove Contingencies
Negotiate an Offer
Look for a Property
NEW HOME OWNER
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D EF IN E YOUR GOAL S DETERMINE WHY YOU ARE BUYING A HOME Is it going to be a permanent place for you and your family, an investment, or a second home? Whatever the reason, it is important that you buy with an eye on the resale investment potential. Why has buying a home also become such an investment opportunity?
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No one can predict the future. Over the last 25 years, the average price of a home has risen substantially.
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Money that pays a mortgage turns into equity that can be used to finance other opportunities.
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Land has become a decreasing resource, especially in and around major city and cultural hubs, which has created the demand.
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Demographics and immigration have always been major factors in influencing investment opportunities.
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It is not always necessary to sell your home just because you are moving; depending on the equity created it may be possible to offset the remaining mortgage by renting out the property.
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Housing is typically considered to be a stable investment, offering good rate of return.
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Low interest rates over the last 10 years have made mortgages affordable.
Investing some time to understand your local market and its influences could pay large dividends.
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R ES E A R C H YOUR OPTIONS DETERMINE WHAT YOU CAN AFFORD AND WHERE Buying and financing a home are closely related, so it is very important to review your current financial situation to understand how much you can afford. There are three key components that determine the start of all searches: 1. LOCATION – where do you want to live? 2. TYPE – what type of home do you want? 3. PRICE – what can you afford? Only you can determine the importance of each. Once you start to research your options, you will soon know if your expectations are realistic. LOC AT ION, LOC AT ION, LOC AT ION Why does location matter so much? For starters, you can’t move a home — at least not easily or inexpensively. When you buy a home in a good location, it is usually a solid longterm investment. Perhaps more than ever, location is the key factor to driving price increases. In a strong housing market, homes in particularly desirable areas are more likely to see above average price increases. In weak housing markets, these homes tend to retain their value better.
CHARACTERISTICS THAT MAKE A GOOD LOCATION
A SA FE N EIGHBOR HOOD A home located in a community with little crime, where neighbors interact, and it’s safe to walk freely is most desirable. GOOD SCHOOLS Being in a good school district, even if you don’t have children, is where young families will always buy. The better the school district, the higher the values of the surrounding homes. CON V EN IENCE The easier the access is to main features of the community, the more valuable the home. For homeowners in cities and towns, it is access to shopping and public transit; for beach communities, it’s the beach; for many, it is access to major road systems.
WAT ER ACCESS A N D V IEWS No matter which town or city, someone will always pay for a great view, or to be on or near the water, or their favorite recreation activity. Put a home right on a waterway or on a hill with panoramic views, or offer the upper floors in a highrise and you have a great selling point. NO IN T ER MI T T EN T NOISE Being located near noise, whether a busy street during rush hour, close to fire station, hospital, an airport, or a local school, is generally considered a negative. These intermittent noise factors can be missed when looking at a home and not reviewing your location fully.
UNDERSTANDING PROPERTY TYPES
Understanding the fundamentals – as described below – is not only important but necessary to consider a variety of types and sizes. Each type of property offers its own advantages and disadvantages.
SINGLE-FA MILY HOUSE The most popular style and the most solid investment, a free-standing and detached home resting on its own lot offers a greater degree of privacy. Typically homes and the land are owned completely by the homeowner and therefore completely their responsibility to manage and maintain. SEMI-DETACHED/ DU PLE X A single-family home that is joined to another one by a common wall. It can offer many of the advantages of a singlefamily detached home and is usually less expensive to buy and maintain. TOW N HOUSE/ ROW HOME One of several types of single-family homes joined by common walls. It offers less privacy than a single-family detached home but still provides a separate outdoor space. These homes can cost less to buy and maintain, but are typically subject to homeowner associations that are responsible for maintenance and management, which can cost an additional fee per month. CON DOMIN I U M /A PA RT MEN T Refers to a form of legal ownership as opposed to a style of construction. Condominiums can be high-rise residential buildings, townhouse complexes, individual houses, and low-rise residential buildings. Owners do not have complete control over their property, being subject to homeowner’s association rules; however, the maintenance and management of the building are taken care of and in many cases there is an increased level of security.
UNDERSTANDING MARKET VALUE
Whether you have chosen your location or property type based on your budget, it is still important to research the value of homes currently on the market. The current selling price of a home does not mean that a property is ‘worth’ that amount to you – market conditions and what a buyer is willing to pay for a property affect the true value of the home at any moment in time. When deciding the value of any property, the following criteria should be considered: • • • • • •
Location of the property Condition of the property Buyer demand Current prices of similar properties Recent sales of competitive properties Availability of financing
Ultimately, the value of any property is dependent on what is important to you and whether this is the home that you wish to buy.
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M A K E YOUR PL ANS SET YOUR PRIORITIES After answering the following questions, you will be in a great position to research your housing and mortgage options as well as create the appropriate action plan and time line for moving forward. Ask yourself: • • • • • • • •
What do you want from a home? What does your family want from a home? Do you want a turnkey home or would you prefer to renovate? What are your top five ‘must-haves?’ What are your top five ‘would-likes?’ Are you pre-approved for a mortgage? What can you afford on a monthly basis? When is the ideal time to move?
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S EL E C T A RE A LTOR® COMMITMENT AND DEDICATION It is important to work with a Realtor® who is committed to working with you and dedicated to finding you the RIGHT home. Your agent should be your guide – consider their knowledge, experience, and expertise. Check their track record of working with buyers – from finding a home, to negotiating the offer, to helping with financial solutions. I T WON’T COST YOU A PEN N Y! The Realtor® who helps you buy a home is traditionally paid by the Seller.
negotiate the contract. The owner may not only agree to your terms, but may also agree to pay the agent’s commission.
M A N Y MOR E HOME CHOICES Your Realtor® will make a commitment to spend valuable hours finding the right home for you: researching listings, previewing properties, visiting homes with you, and negotiating your contract. Honor that commitment by staying with the agent you’ve selected until you purchase your home. Be sure your Realtor® accompanies you on your first visit to all new homes and open houses.
K NOW LEDGE OF N EW HOME SU BDI V ISIONS If you’re interested in buying a new home, take your agent with you on your first visit to each subdivision. Your professional Realtor® is an important source of information who can supply background on the builder, nearby subdivisions, and the local community.
T R A NSAC T IONS “ FA LL OU T” Unfortunately, it’s true. Some transactions fall apart before closing. An experienced Realtor® can resolve problems and may be able to see your transaction through to a successful closing. HELP W I T H FSBO’S If you are considering a “For Sale By Owner,” take your Realtor® along to help
LESS LI A BILI T Y You will have more protection from legal and financial liability, especially as real estate transactions become more complicated. T HE PA PERWOR K Your Realtor® will negotiate and prepare the purchase contract for you and assist you throughout the escrow process.
HOME INSPECTION RESOURCES
Before finalizing the sale of the home, you will have a period of time — typically referred to and stipulated in contracts as the due diligence period — to identify any areas of concern with the home. Once you have reviewed the report and are comfortable with any of the items listed, you can close on your home with greater peace of mind!
A DVA N TAGE INSPEC T ION SERV ICE 602.864.8331 www.azinspect.com
AJ F ENGIN EER ING 480.661.8888 www.ajfengineering.com
A Z PROPERT Y INSPEC T IONS 480.422.7322 www.inspectionsaz.com
A LTA V ISTA INSPEC T ION SERV ICES 480.816.8552 www.avinspect.com
HOME WARRANTY RESOURCES
A home warranty may be part of the sale of a home. Buyers should read the home warranty document for coverage and limitation information. Be aware that preexisting property conditions are generally not covered under these policies.
2-10 HOME BU Y ER S WA R R A N T Y 800.775.4736 www.2-10.com A MER IC A N HOME SHIELD OF A R IZONA 888.682.1043 www.AHS.com
FIR ST A MER IC A N HOME BU Y ER S PROT EC T ION 888.875.0533 www.homewarranty.firstam.com ON E GUA R D HOME WA R R A N T Y 888.896.0014 www.oneguardhomewarranty.com
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GE T PR E-APPR OV E D THE BENEFITS OF PRE-QUALIFICATION No matter your prior experience, circumstance, or reason for buying, it is always in your best interest to be pre-qualified for a loan before starting to search for a home. The current rates, approval, and unexpected challenges should be addressed before you have a serious intention of buying. The pre-approval process involves meeting with a lender and authorizing them to examine your current financial situation and credit history, which results in the amount and rate that you will be able to borrow. •
Knowing what you can afford enables you to plan accordingly – it allows you to understand how much you will be lent and how much you can actually afford to pay each month.
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As a qualified buyer, you will be taken more seriously when you make an offer on a home.
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You are able to take the time to understand the short and long-term implications, allowing you to make informed decisions and research your options.
5 STEPS TO THE LOAN PROCESS
1. A PPLIC AT ION • Types of mortgages are reviewed in line with your requirements • Interest rates and terms are discussed • Credit report is requested • Personal information is verified 2. DOC U MEN TAT ION • Loan consultant will order the necessary documentation • Any verifications will be mailed and the credit report and appraisal will be ordered • Each item is reviewed carefully to ascertain if additional items are needed to resolve any questions or problems
3. T I T LE COMPA N Y • Title is examined • Title insurance and survey are conducted • Borrowers to sign documentation 4. LOA N A PPROVA L • Parties are notified of the approval • Loan documents are completed and sent to the Title Company 5. F U N DING • Lender reviews the loan package • Funds are transferred
LOAN APPLICATION REQUIREMENTS
Be prepared to provide some or all of these items to your loan officer: Addresses of residences for last two years Social Security Number Drivers License or other valid ID Names and addresses of employers for last two years Two recent pay stubs showing year-to-date earnings Federal tax returns for last two years W-2s for last two years Last two monthly statements for all checking and savings accounts Loans: Names, addresses, account numbers, and payment amounts on all loans, including real estate loans Credit cards: Names, addresses, account numbers, and payment amounts on all credit cards Addresses and values of other real estate owned Value of personal property. Your best estimate of the value of all of your personal property (autos, boats, furniture, jewelry, televisions, stereos, computers, other electronics, etc.) For a VA loan, Certificate of Eligibility or DD214s Divorce decree if applicable Funds to pay upfront for the credit report and appraisal Letters of Explanation regarding credit inquires or special circumstances
FINANCING YOUR HOME PURCHASE
DO YOUR HOMEWORK WHEN LOOKING FOR A MORTGAGE A very important part of buying a home is finding the right lender and the right mortgage product. There are many different kinds of lending institutions, offering a wide range of loan packages. So it is important to do some research and shop around because what you don’t know could cost you. In this regard, over the course of my career I have made some excellent contacts in the mortgage industry, in particular, I have had great success with the following two mortgage brokers: J ER EM Y SCH ACH T ER Fairway Independent Mortgage 480.703.8088 | www.fairwayindependentmc.com/Jeremy-Schachter M A RY V R A NA Sun American Mortgage 480.467.1052 | www.sunamerican.com/mary-vrana
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LO O K FOR A PR OPE RTY HOME SEARCH RESOURCES T HE IN T ER N ET 95% of all buyers use the internet to start their search for homes – typically taking an average of 12 weeks to research the possibilities they believe their budget can match. YOU R R E A LTOR ® Your real estate agent will assist you with narrowing your search by reviewing your ‘must-haves’ and ‘would-likes’ – making recommendations based on their experience and local knowledge. A Realtor® also has access to: • Previewing new properties at Realtor® open houses. • Technology that automatically sends you new home matches immediately – so you never miss a new listing. • Working within their network to find new properties not even listed yet. • Every home in your preferred community, including “for sale by owner,” discounted brokerages, expired listings, or homes not actually on the market but that are known suit your requirements. • Emailing specific home requirements to agents in the area so they know that you are a qualified purchaser. PR IN T MEDI A Newspapers and real estate magazines still provide a platform that features homes. Not every home is listed on the internet, and sometimes your search can miss that hidden gem because it is not online. PROPERT Y V ISI TS Visit open houses and new home developments; you can learn a lot by seeing what is on the market.
MY MOBILE APP
SEARCH ANYWHERE, ANY TIME With my mobile app, you’ll get: • • • •
Real-time listing information Interactive maps Instant sharing The ability to connect with me on any property
https://davidoesterle.remax.com/mobile-apps
BUILDING A HOUSE HUNTING CHECKLIST
In the hunt for a perfect home, it’s easy to forget the important priorities when you see a stunning feature or are overwhelmed by all the choices and homes you have visited. Use this checklist to help you stay organized and focused on the important criteria during your search: Make a comparison chart for when you start viewing: Square footage Positioning of the living spaces General size of rooms Kitchen style and appliances Bedrooms Bathrooms Ensuites Garage space(s) Backyard Landscaping Condition of roof, exterior Storage space Natural light How long has the house been on the market? Is it priced to sell? Compare its price to others sold on the market What is the resale potential? Do you feel an emotional connection to the home?
Do a second walkthrough without emotion. Become the inspector and look beyond the surface: Determine if your furniture will fit Check out floor plans or take measurements if not available Take note of the true storage space – open cupboards, doors, attics, basements, and storage cabinets. Lift up area rugs and look for any damage on the floor, under furniture, in the back of cupboards, etc. Look at every detail from floor to ceiling, including window trims, under sinks, bathroom tiles, etc. Look outside – understand the landscape and the layout of the surrounding homes, traffic, parking, noise, etc. View the property at different times of the day Envision how you would use the space and assess if it fits your everyday needs Who are your neighbors?
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NEG OTIATE AN OFF E R When you have found the right home, it is time to prepare and draft an offer of purchase. This offer protects and represents your interests, while remaining legally binding on final acceptance. There are many components to an offer, and your Realtor® will explain the entire process so that you are comfortable with the steps involved. An offer can be drafted with or without conditions; an offer without conditions is known as a firm or subject-free offer, and one with conditions is known as a conditional offer and, in effect, protects one party with the placement of certain conditions on the purchase. POIN TS TO CONSIDER IN YOU R N EGOT I AT IONS: • The condition of the home • Length of time it’s been on the market • Buyer activity • Location • Urgency of the seller The seller may accept your initial offer, reject your offer, or present a counter offer. The counter offer may differ from your original offer in respect to price, conditions, the closing date, or any other items. Offers can be countered back and forth between the parties until one of you accepts or rejects, ending the negotiations all together.
TYPICAL CONDITIONS TO INCLUDE
FINA NCI A L T ER MS • Mortgage approval • Seller pays a fixed percentage or dollar fee towards closing costs • Seller pays towards specific closing fees - Title Search or Transfer Tax INSU R A NCE • Most mortgage companies require home insurance prior to approval HOME INSPEC T ION • Full access and inspection by a certified inspector • Electrical, water, heating, roofing, and any infestations should all be investigated thoroughly • Costs for any repairs over a specific amount, paid by seller • Certain repairs to be completed and approved before purchase
CLOSING DAT E • Typically dated to give you and the seller the time required to complete the purchase transaction • Related to the sale of your present property or the remaining term of your rental lease • Subject to the seller’s flexibility to move T I T LE SE A RCH • Ensure that the Property Title is in the name of the seller or seller’s trust • Free from any claims against it, either liens or ownership • Is there any ‘right of use’ on the property Lender reviews the loan package
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RE M OV E C ON TINGE NC IE S Once both parties accept the sales contract and its contingencies (that is, any conditions either party may be subject to) they will start to work towards removing these conditions. Your Realtor® will advise you on what contingencies you can remove based on the results, once the appropriate due diligence has been completed. Ideally, both parties should have been able to negotiate a reasonable time in which to remove these conditions. It is important to understand the options available to you should one of your conditions not be removable prior to the contract date. This does not automatically mean that the ‘deal is dead’ – having a Realtor® who is a good negotiator and will work with the seller’s agent to find a solution is key. Equally, conditions that the seller needs to address can also be provided with extensions – particularly important when a problem is found during the house inspection. An experienced Realtor® will advise you on the right course of action, based on their knowledge and experience. Once you are satisfied and wish to commit to purchasing the home, a contingency removal document will be prepared for both parties to sign.
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P R E PA R E FOR C LOSING W H AT TO DO BEFOR E T HE CLOSING A PPOIN T MEN T Your escrow officer will contact you to schedule your closing appointment and inform you of the funds required for closing. The preferred method is a wire transfer, which you will need to arrange with your escrow officer. Good Funds Law The Title Company is required by law to have funds deposited and available before escrow funds can be dispersed. DON’T FORGET YOU R IDEN T IFIC AT ION You will need valid identification with your photo; a driver’s license is preferred. This is necessary so that your identity can be sworn to by a notary public. It’s a routine step, but it’s important for your protection. W H AT H A PPENS N E X T ? At closing, you will sign all your legal documents, including paperwork relating to your mortgage and the transfer of ownership of the property. There are usually representatives from the Escrow Company or a lawyer to facilitate the exchange. When closing is finished, you should not only have the keys to the property but a copy of the documentation that relates to the property, including a statement of costs, a statement outlining your mortgage terms, your mortgage note, and a copy of your deed of trust. At the end of closing, the deed will be taken and recorded at the county clerk’s office. It will be sent to you after processing. TIP: Make arrangements to see the new home the day before you close to ensure the home is in the condition per the contract agreement.
WHAT TO EXPECT WHEN COMPLETING A PURCHASE
MORTGAGE INSU R A NCE A N D FEES • A fee for running your credit report • Loan Origination Fee – the lender’s charge for processing the loan paperwork • Appraisal Fee • Underwriting Fee – cost of evaluating a mortgage loan application • Survey Fee – covers the cost of verifying property lines PROPERT Y T R A NSFER TA X • Recording Fee or Property Transfer Tax – paid to a city or county in exchange for recording the new land records • Escrow Deposit – may pay for a couple months’ property taxes and private mortgage insurance
LEGA L FEES • Attorney or Escrow Fees • Notary Fees T I T LE FEES • Title Insurance – protects the lender in case the title isn’t clean • Title Search Fees – pay for a background check on the title to ensure there aren’t things such as unpaid mortgages or tax liens on the property INSPEC T ION FEES • Home Inspection Fee • Pest Inspection Fee • Home Warranty
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M OV E IN Moving into a new home is an exciting time but it can also be stressful. Whether you are doing it yourself, asking friends for a little help, or hiring professionals, this moving guide will provide you some great insight: T HE BIG DAY •
If you can’t be there when the movers arrive, arrange for someone to meet them.
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Check the movers’ bill of lading and inventory carefully before signing.
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Keep papers with you in a safe place. Make one last trip through the house, double checking closets, drawers, and cabinets. Lock the windows.
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Leave the garage remote control for the new owners.
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Turn off all the lights, close and lock the door, and leave the keys as prearranged with your REALTOR or new owner.
PLANNING YOUR MOVE
A BOU T 2 MON T HS BEFOR E T HE MOV E Research your new city through the Chamber of Commerce/city websites. Start cleaning closets and storage areas and decide what goes with you, what goes to a charitable organization/garage sale, and what goes in the trash. Talk with your accountant or an IRS advisor about any moving expenses that might be tax deductible and require records.
Contact moving companies for services and estimates. Start a list of everyone you want to notify about your move. Along with friends and relatives, include schools, doctors, dentists, creditors, attorney, accountant, broker, and any recurring services such as cleaning, lawn, exterminator, water softener, internet provider, magazine subscriptions, etc.
1 MON T H OU T Notify the post office of the move, and fill out a change of address form. Open bank accounts at the new location now (if needed). Get serious about cleaning out the house; start accumulating boxes and begin packing. Contact your insurance companies (health, auto, homeowners, renters) to discuss coverage at the new location. 2 W EEK S BEFOR E Contact your bank about closing your existing accounts when you move. Get your car serviced (if driving). Find out what you need to do to transfer records for doctors, dentists, veterinarians, etc. Get permanent records from schools, not copies. Transfer any prescriptions to new pharmacies.
Contact utility companies and arrange to disconnect/connect at your current home and at your new home. Arrange how you, your family, your pets, your plants, extra cars, etc. will get to the new city. Take pets to your veterinarian for a check up and regular immunizations before the trip.
1 W EEK LEF T Contact your local trash collector about proper disposal. Gather odds and ends: dry cleaning, safe deposit box items, prescriptions, anything you’ve loaned. Return library books/anything borrowed.
PLANNING YOUR MOVE
A COU PLE OF DAYS BEFOR E Give away plants you’re not taking. Defrost the refrigerator and freezer. Write out clear instructions—sketch a map, too, if you can—of your new home, and include your itinerary and emergency numbers. Keep a copy yourself, and give copies to the moving company and your family or friends. Complete packing. Be sure to set aside the items you want to take with you so the mover doesn’t accidentally load them onto the truck.
Pack local phone books. You’ll be glad you did. Check with the utility companies to verify connect and disconnect dates after escrow closes. Contact your REALTOR and verify when and where keys to your new home will be available. Disconnect appliances.
COMMON HOME BUYER MISTAKES
GOING OV ER BU DGET Just because you qualify doesn’t mean you can afford the monthly payments, plus all your other ongoing costs. OV ER LOOK ING T HE IMPORTA NCE OF LOC AT ION Loving the house will not be enough. NOT PR E- QUA LIF Y ING FOR A MORTGAGE NOT SHOPPING FOR T HE MOST SU I TA BLE MORTGAGE TO M ATCH YOU R R EQU IR EMEN TS
NOT U N DER STA N DING A LL T HE T ER MS A N D CON DI T IONS Get familiar with interest rates, length of contracts, mortgage types and rates, etc. before selecting your mortgage. BU Y ING A N EW HOME BEFOR E YOU ’ V E SOLD YOU R OLD HOME NOT U N DER STA N DING T HE T RU E COSTS A SSOCI AT ED W I T H BU Y ING YOU R HOME NOT USING PROFESSIONA LS TO A SSIST IN A LL A SPEC TS OF YOU R HOME PU RCH A SE This includes a mortgage advisor, home inspector, lawyer, notary, and/or a moving company.
FREQUENTLY ASKED QUESTIONS
W HEN IS T HE BEST T IME TO BU Y ? When you have found the right home. Don’t wait for perfect conditions to buy – they don’t exist. W HEN IS T HE BEST T IME TO GET A MORTGAGE? Getting pre-qualified before you start searching, as this will help immensely and prevent disappointment. HOW DO I CHOOSE A R E A LTOR ® ? Think of the process as equivalent to giving a job interview – do they know your local market, price points, and types of homes? Ask for references! HOW DO I FIN D T HE PER FEC T HOME? Prioritizing and compromising are necessary elements. Compile a list of ‘must-haves’ and then a list of ‘would-likes’ – you will never find the right home otherwise. HOW DO I K NOW W HEN I T’S R IGH T TO PR ESEN T A N OFFER? Don’t be afraid to write an offer; there is no commitment until you remove all the contingencies. However, don’t write an unrealistic offer. Offer instead what the property is worth to you, otherwise you may be helping someone else’s offer look good! C A N I GET OU T OF A DE A L IF I DECIDE I T ISN’T R IGH T FOR ME? Don’t be afraid to back out of the deal; you have not gone too far until the contingencies have been removed. W HOSE OPIN ION SHOU LD I T RUST W HEN BU Y ING A HOME? Trust personal instinct and trusted advisors – do what feels right – too much stress indicates it’s time to walk away. W H AT DO I DO IF I GET BU Y ER’S R EMOR SE? Many buyers do – it’s completely normal to feel this way. If you have done your due diligence, be confident in your decision and begin to enjoy your new home.
QUICK REFERENCE
Complete the following information as it becomes available. Utility companies my ask for your Escrow Number and the name of your Title Company. IMPORTANT: Do not cancel your current home insurance or disconnect utilities prior to the close of escrow.
Escrow Number New Address
City/State/Zip
R E A LTOR Name:
David Oesterle
Company:
RE/MAX Excalibur
Address:
8510 E. Shea Blvd., Suite 100
City/State/Zip:
Scottsdale, AZ 85260
Phone:
602.920.6888
Email:
Dave@HomeTeamAZ.com
Website:
HomeTeamAZ.com
I NSU R A NCE
GA S
Agent:
Southwest Gas:
Phone:
Other:
Policy Number:
Start Date:
Stop Date: Agent: Phone: Policy Number: Start Date: Home Warranty: Plan Number: Policy Number: Website:
E L EC T R IC Salt River Project: APS:
602.236.8888 / srpnet.com
602.371.7171 / aps.com
Start Date:
N E WSPA PE R S Arizona Republic: The Tribune:
602.444.1000 / azcentral.com
480.898.6500 / tribune.com
MAIL United Postal Service:
usps.com
QUICK REFERENCE
COM M U N IC AT IONS COX:
602.277.1000 / cox.com
Direct TV:
1.888.777.2454 / directtv.com
Dish Network:
1.800.823.4929 / dishnetwork.com
Western Broadband: Century Link:
Internet / Television Service
1.800.998.8040 / westernbroadband.net
1.800.366.8201 / centurylink.com
Start Date:
COM M U N IC AT IONS AT&T: Verizon:
1.800.222.0300 / att.com 1.877.300.4498 / connecttoverizon.com
New Phone Number:
T I T L E AGE NC Y Escrow Officer: Phone: Fax: Email: Escrow Assistant: Phone: Email: Address: City/State/Zip:
Phone Service
DIRECTORY OF SERVICES
UTILITIES
GI L BE RT
APS
602.371.7171
Fire Administration
480.503.6300
Century Link
800.244.1111
480.503.6500
Cox Cable
602.277.1000
Police Department (Non-Emergency)
Garbage & Trash
623.974.4791
Water Utilities
480.503.6800
Rural Metro Fire Department
480.627.6200
City Website
gilbertaz.gov
Salt River Project (SRP)
602.236.8888
Southwest Gas
877.860.6020
A PAC H E J U NC T ION Fire Administration
480.982.4440
Police Department (Non-Emergency)
480.982.8260
Water Utilities
480.982.6030
City Website
ajcity.net
AVON DA L E Fire Administration
623.333.6000
Police Department (Non-Emergency)
623.333.7000
Water Utilities
623.333.2005
City Website
avondale.org
BUC K E Y E Fire Administration
623.349.6700
Police Department (Non-Emergency)
623.349.6400
Water Utilities
623.349.8700
City Website
buckeyeaz.gov
C H A N DL E R Fire Administration
480.782.2120
Police Department (Non-Emergency)
480.782.4130
Water Utilities
480.782.3700
City Website
chandleraz.gov
GL E N DA L E Fire Administration
623.930.4400
Police Department (Non-Emergency)
623.930.3000
Water Utilities
623.930.3190
City Website
glendaleaz.gov
G OODY E A R Fire Administration
623.932.2300
Police Department (Non-Emergency)
623.932.1220
Water Utilities
623.932.3010
City Website
goodyearaz.gov
LITCHFIELD Fire Administration
623.932.2300
Police Department (Non-Emergency)
602.876.1011
Water Utilities
623.935.9367
City Website
litchfield-park.org
M A R ICOPA Fire Administration
520.568.3333
Police Department (Non-Emergency)
520.316.6800
Water Utilities
520.568.4452
City Website
maricopa-az.gov
DIRECTORY OF SERVICES
M E SA
SA N TA N VA L L E Y
Fire Administration
480.644.2101
Fire Administration
480.627.6200
Police Department (Non-Emergency)
480.644.2030
Pinal County Sheriff (Non-Emergency)
480.420.8689
Water Utilities
480.644.4444
Water/Johnson Utilities
480.987.9870
City Website
mesaaz.gov
City Website
santanvalley.com
PA R A DI SE VA L L E Y
SCO T T SDA L E
Fire Administration
480.348.3631
Fire Administration
480.312.8000
Police Department (Non-Emergency)
480.948.7418
Police Department (Non-Emergency)
480.312.5000
Water Utilities
480.312.2461
City Website
scottsdaleaz.gov
Water Utilities: • City of Phoenix
602.262.6251
• Arizona American Water
800.383.0834
• Berneil Water
480.966.5804
SU N C I T Y
City Website
ci.paradise-valley.az.us
Fire Administration
623.974.5321
Police Department (Non-Emergency)
623.584.5808
PEOR I A Fire Administration
623.773.7279
Water Utilities
480.895.2965
Police Department (Non-Emergency)
623.773.8311
City Website
suncityaz.org
Water Utilities
623.773.7286
SU R PR I SE
City Website
peoriaaz.gov
Fire Administration
623.222.5000
Police Department (Non-Emergency)
623.222.4000
PHOE N I X Fire Administration
602.495.5555
Water Utilities
623.222.6000
Police Department (Non-Emergency)
602.262.6151
City Website
surpriseaz.gov
Water Utilities
602.262.6251
T E M PE
City Website
phoenix.gov
Fire Administration
480.858.7200
Police Department (Non-Emergency)
480.350.8311
QU E E N C R E E K Fire Administration
480.644.2400
Water Utilities
480.350.8361
Police Department (Non-Emergency)
602.876.1011
City Website
tempe.gov
Water Utilities
480.358.3450
City Website
queencreek.org
H O M E B U YE R’S GLOSSA RY When buying a home, it’s important to understand some of the key concepts and terms. Throughout the process, your Realtor® will be available to explain any unfamiliar terms you encounter. That said, here is a short list of terms you’ll want to know: Abstract of Title – A complete historical summary of the public records relating to the legal ownership of a particular property from the time of the first transfer to the present. Adjustable Rate Mortgage (ARM) – Also known as a variable-rate loan, an ARM is one in which the interest rate changes over time. Agreement of Sale – A contract in which a seller and buyer agree to transact under certain terms spelled out in writing and signed by both parties. Also known as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. Amortization – The process of reducing the principal debt through a schedule of fixed payments at regular intervals of time, with an interest rate specified in a loan document. Appraisal – An appraiser’s estimate of the market value of a property based on local market data and the recent sale prices of similar properties. Assessed Value – The value placed on a home by municipal assessors for the purposes of determining property taxes. Closing – The final steps in the transfer of property ownership. On the Closing Date, as specified
by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the final disbursements are paid. Also referred to as the Settlement. Closing Costs – The costs to complete a real estate transaction in addition to the price of the home. May include points, taxes, title insurance, appraisal fees, and legal fees. Closing Date – This is usually the date that the legal ownership of the property transfers from the seller to the buyer. Conditions or "Subjects" – Items that are usually put in place to protect a party’s interests upon selling or buying the property and refer to things that must occur or be in place before the sale closes. Some of these conditions could be “subject to financing approval,” “subject to the buyer’s house selling,” “subject to seller finding suitable housing,” etc. 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. Conventional Mortgage – One that
is not insured or guaranteed by the federal government. Debt-to-Income Ratio – A ratio that measures total debt burden. It is calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income. Deposit – The amount of money provided from the buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. Your agent can assist you in proposing a certain and appropriate amount for the deposit. Disclosures – Disclosure statements, which can come in a variety of forms, are the buyer’s opportunity to learn as much as they can about the property. Seller disclosures provide knowledge of issues with the home. They serve to inform buyers, and they can protect the sellers from future legal action. It is the seller’s chance to lay out anything that can negatively affect the value, usefulness, or enjoyment of the property. Down Payment – The money paid by the buyer to the lender at the time of the closing. The amount is the difference between the sales price and the mortgage loan. Requirements vary by loan type. Down payments less than 20% usually requires, mortgage insurance.
Earnest Money – A deposit given by the buyer to bind a purchase offer and which 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. Easements – Legal right of access to use a property by individuals or groups for specific purposes. Easements may affect property values and are sometimes part of the deed. Equity – The value of the property, less the loan balance and any outstanding liens or other debts against the property. Escrow – Funds held by a neutral third party (the escrow agent) until conditions of a contract are met and the funds can be paid out. Escrow accounts are also used by loan services to pay property taxes and homeowners insurance. Fixed-Rate Mortgage – A type of mortgage loan in which the interest rate does not change during the entire term of the loan. Home Inspection – Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc. Home Warranty – Service contract that covers the repair or replacement of home system components and appliances that break down. Homeowners Insurance – A policy that protects you and the lender from natural disasters and liabilities such as a visitor injury or damage to your personal property. Inclusions and Exclusions – Specifications within the offer that detail the items to be included or
excluded from the purchase of the property. Typical inclusions are appliances, window coverings, fixtures, and decorative pieces. Lien – A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the Title to your property if you don’t make the mortgage payments. Market Value – The amount a buyer would pay a seller for a home. An appraised value is an estimate of the current fair market value. Mortgage Insurance – Purchased by the buyer to protect the lender in the event of default (typically for loans with less than 20% down). Available through a government agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI).
by all parties involved in the sale, the Purchase Offer becomes a legallybinding sales agreement.* Purchase Price – The amount that the buyer is offering to pay for the property, usually dependent on market conditions and may differ from the seller’s current asking price. There is no “normal” amount or percentage that a price will differ from its asking price as the final price will be determined by many factors, including the seller’s motivation and how close the asking price is to actual “market value.” Terms – An offer includes certain “terms”, which specify the total price offered and how the financing will be arranged, such as if you will arrange your own with a financial institution or mortgage broker or if you wish to take over the seller’s mortgage (assumability).
Possession and Adjustment Dates – When the buyer takes possession as specified in contract of purchase sale and adjustments are made for prepaid taxes, maintenance fees, etc. They are usually the same date.
Title – The right to, and the ownership of, property. A Title or Deed is sometimes used as proof of ownership of land. Clear title refers to a title that has no legal defects.
Possession Date – The date, as specified by the sales agreement, that the buyer can move into the property. Generally, it occurs within a couple days of the Closing Date.
Title Insurance – Insurance policy that guarantees the accuracy of the title search and protects lenders and homeowners against legal problems with the title.
Pre-Approval Letter – A letter from a mortgage lender indicating that a buyer qualifies for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer.
Truth-In-Lending Act (TILA) – Federal law that requires disclosure of a Truth-In-Lending statement for consumer loans. The statement includes a summary of the total cost of credit.
Principal – The amount of money borrowed from a lender to buy a home, or the amount of the loan that has not yet been repaid. Does not include the interest paid to borrow. Purchase Contract – A detailed written document which makes an offer to purchase a property, and may be amended several times in the process of negotiations. When signed
Title Search – A historical review of all legal documents relating to ownership of a property to determine if there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property. *The Purchase Offer and contract procedures vary by region.
I would like to thank you for giving me the opportunity to represent you. My goal and commitment is to make the home buying process as seamless as possible. Regardless of your real estate needs, know that I am always here to assist you because I am not just providing a service, I am building a relationship.
DAVID OESTERLE | 602.920.6888 | Dave@HomeTeamAZ.com
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