Shugart Realty Group Buyer's Guide

Buyer’s GUIDE

Congratulations on your

WHO WE ARE

decision to purchase a home!

ROLE OF YOUR LICENSED SHUGART REALTY GROUP BROKER

Our team of experienced, full-time real estate brokers and staff are ready to lead and advise you through the process of buying the perfect home. Our team is able to provide highly customized service while benefiting from the network of Jason Mitchell Group.

Shugart Realty Group fosters a culture of collaboration in which our team shares their knowledge, expertise and resources ensuring clients are better represented.

While the purchase of a home is an exciting one, the efforts required to achieve desired results are numerous and can become overwhelming. To make the process efficient and rewarding, your Shugart Realty Group broker will guide you through the entire process. When working with Shugart Realty Group you can expect superior service!

STEPS FOR PURCHASING A HOME

BUYER CONSULTATION

Meet with your Shugart Realty Group broker to discuss your needs, wants, timeline and budget.

CONSULT WITH A MORTGAGE LENDER & GET PRE-APPROVED FOR A MORTGAGE

Before you begin your search, meet with your lender to determine your budget for down payment and loan size for which you qualify based on your personal finances. Obtain your pre-approval letter as your broker will need this documentation to submit any purchase offers. *If you don’t have a lender we have preferred partners we can refer to you.

FIND A HOME

The time frame for finding your home will vary so it is best to give yourself plenty of time, if possible. Your Shugart Realty Group broker will analyze all properties available that meet your criteria from sources including MLS, online, pre-market, FSBO in addition to utilizing our extensive client, vendor and industry partnership networks.

OFFER & NEGOTIATION

Your Shugart Realty Group broker acts as an advocate and advisor while negotiating the best possible price and terms with your consultation and direction. They make certain that all important factors have been considered including market trends, property comparisons, condition of the home, and listing history to help you determine an appropriate initial offer and the subsequent negotiations that follow.

ACCEPTED CONTRACT & DUE DILIGENCE PERIOD

Buyer and seller agree to terms and move to the due diligence period (may vary depending on the state). Once your home is under contract, our Transaction Coordinator will help guide you through the contract-to-close process. This process includes scheduling and attending home inspections, negotiate repair requests, answer HOA questions, schedule closing with attorney and weekly transaction updates.

PREPARING FOR CLOSING

During this time you will work closely with your lender to provide all paperwork required, appraisal will occur, property information will be verified and loan goes through underwriting. Also, you will begin coordinating the process of the move...Scheduling movers, planning for time off work, purchasing homeowners insurance, initiating utilities etc.

CLOSING DAY!

It is standard to have a final walk-through before closing to ensure the property is delivered in agreed condition. Once complete it’s off to the location of the closing.

FINANCIAL PREPARATION

The most important first step in the home buying process is getting pre-approved.

STEP 1: GET PRE-APPROVED

The only way to truly know how much home you can afford is to ask a lender. Getting pre-approved lets you know how much you can afford before shopping for your home.

What to Know:

• Income: Stable income assures a lender you can make your monthly mortgage payment.

• Debt: Add up auto payments, credit card payments, student loans, alimony, child support, and other debt.

• Cash: Total assets, amount in checking and savings accounts, and other investments.

STEP 2: DETERMINE MONTHLY MORTGAGE PAYMENT INCLUDING ESCROW

Escrow is a third party account used to retain funds including the property owner’s real estate taxes and homeowner’s insurance premiums. Escrow is only applicable in certain loan programs.

STEP 3: UNDERSTAND BILLS ASSOCIATED WITH HOMEOWNERSHIP

Estimate that it will cost about one percent of the purchase price per year to maintain your home. For a $200,000 home, you should budget approximately $2,000 per year or approximately $170 per month for maintenance. Condominiums and co-ops could have regular maintenance fees. You will also have utilities, gas, electric, water, sewage, cable, telephone, insurance, property tax, etc.

STEP

4: ESTABLISH FUTURE PRIORITIES AND PLAN FOR THE UNEXPECTED

PROTECTING YOUR HOME

There are ways to protect yourself against unforeseen costs before and after the purchase of your home.

Home Inspections

Home inspections are meant to inform buyers, sellers, and real estate agents about the condition of the home. The goal is to help you confidently move forward with buying your dream home. Inspections range in cost from $400 - $800 based on the square footage of the home.

WHAT TO EXPECT

HELP IDENTIFY PROBLEMS - When home inspection is performed, the inspector will pay less attention to small, cosmetic damage and instead look for major issues that will cost the buyer money to repair beyond the purchase price.

HELP IDENTIFY SAFETY CONCERNS - In addition to identifying problems, home inspections can also provide additional valuable information. The inspector can detect safety issues, including the presence of mold, carbon monoxide, and radon gas depending on which additional home inspector services are selected.

CHECK MAJOR HOME SYSTEMS - If the home is in need of repairs or the replacement of major systems, like your HVAC or plumbing, the inspector can let you know what may be needed before you close.

INSPECTORS WILL INSPECT YOUR HOME, BOTH INSIDE AND OUT, INCLUDING THE FOLLOWING:

3 Foundation

3 Electrical System

3 HVAC System

3 Flooring and Walls

3 Windows and Doors

3 Roof and Attic

3 Plumbing System

3 Gutters and Drains

3 Porches and Decks

3 Siding and Exterior

Site and Drainage

Water Heater

Radon

Termite

Structural

Homeowners Insurance

Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.

REPLACEMENT COST VS MARKET VALUE

Your home’s market value is the amount for which it would sell in the current marketplace in its current condition. Replacement cost is how much your home would cost to rebuild - or replace if it were completely destroyed.

WHAT DOES EACH COVERAGE ON MY POLICY COVER?

Your homeowners insurance policy can cover many things such as the dwelling, other structure, personal property, loss of use, personal liability and medical payments. Using a qualified, trusted insurance agent is crucial to choosing the right coverage for you.

COVERAGE EXAMPLES

COVERAGE A:

Dwelling - Covers the home structure

COVERAGE C:

Personal Property - Covers any household contents/appliances/furniture/jewelry

COVERAGE E:

Personal Liability - Covers the homeowners if someone files a claim or lawsuit against them

COVERAGE B:

Other Structures - Covers any detached structures such as garages/pool houses/barns etc.

COVERAGE D:

Loss of Use - Covers any additional living expenses incurred in event of a claim such as hotel and food

COVERAGE F:

Medical Payments - Pays medical bills for anyone injured on your property or any injury caused by a member of your family or a pet

Home Warranties

A home warranty is a yearly service contract which covers the repair and replacement of important household appliances and home system components that inevitably break down over time.

PREVIOUSLY-OWNED HOME WARRANTIES

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

NEW HOME WARRANTIES

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

ROLES IN THE BUYING PROCESS

Buyer

Explore neighborhoods and communities

Get financials in order

Get pre-approved

Browse for homes

Attend open houses

Buyer + Broker

Search for homes

Private property tours

Fine-tune our search based on changed goals

Communicate feedback

Timely signing of documents

Home searching

Sign the Buyer Agency Agreement

Ask questions!

Discover new neighborhoods

Review inspections and due diligence

Collaborate

Your Shugart Realty Group Broker

Provide community knowledge

Network with peers

Listen to you, advocate for you and protect your interest

Touch base with lender

Search for exclusives, coming soons, and premarket properties

Answer your questions

Negotiate on your behalf

Present curated property selections

Personal home tours

Virtual tours and walk-throughs

Close communication with listing agent

Provide value via brand and expertise

Strategically construct your offer based on the current landscape to win the deal

CONTRACT TO CLOSE

Once your offer is accepted, you are considered to be “Under Contract” and the closing process begins. Shugart Realty Group’s Transaction Coordinator will take the lead in this process and your agent will be there to guide you through each step.

Potential Closing Expenses

This list is a guide to give you a general idea about costs associated with your home purchase. Please note that these are potential costs and your Shugart Realty Group broker, attorney and mortgage lender will be your resource for providing specifics.

Down Payment

Prorated Share of Property Taxes

Unpaid Proposed Special Assessments

Prorated Rent, if applicable

Recording Fees

Homeowner’s Insurance

Survey

Lender Fees

Attorney Fees

Agents Commissions

Document Preparations

HOA Dues

Pre-Paid Interest

Appraisal Fees

Title Policy

Loan Application

Inspections

Private Mortgage Insurance

Your guide to closing day

WHAT TO BRING TO CLOSING

A valid government-issued picture ID Wiring information will be given to you ahead of time

WHAT TO EXPECT

The attorney will look over the purchase contract and identify what payments are owed and by whom; prepare documents for the closing; conduct the closing; make sure taxes, title searches, real estate commissions and other closing costs are paid; ensure that the buyer’s deed is recorded; and ensure that you receive any monies due to you.

WHAT WE ASK FROM YOU

We want to provide exceptional customer service and we ask that at the end of the transaction you give us a 5-Star Review and refer us someone you’d love for us to work with.