Novak Team's Guide to Homeownership

THE TEAM APPROACH

"The Team always outperforms the individual."

Individual

1. Wears many hats

2. Leaves you with no point of contact if they are busy

3. Cannot be two places at once

Team

1. Dedicated "Client" Specialists –We have specialized agents with proven track records of serving buyers and their unique needs.

2. 24/7 Home Showing - We have a team of Agents and Partners to ensure that you can see a home the same day you are available to go look at it.

3. Support Team - Helps our dedicated agents focus on what they do best; show you homes and negotiate properties for you!

4. Contract to Close Coordination - A full time team of specialists who are dedicated to Transaction Coordination. Their responsibility is to ensure your contract deadlines are met, and your contingencies are protected.

5. Start to Finish Attention to Detail - We apply market-proven strategies to help you stand out as a buyer to win a home and have established processes with specific roles for each teammate from starting the searching process to moving into your new home.

6. Ongoing Training - Every member of our Team participates in daily, weekly and monthly training with industry-leading coaches and experts to continually improve their skill set and stay on the cutting edge of Real Estate trends & market knowledge.

1.

2.

3.

4.

TIMELINE OF BUYING A HOME

1. Listing Alerts

2. Search Online

3. Tour Homes with Your Agent

4. Fall in Love with a

1. Introduction to our Contract to Close Team

2. Introduction to the Escrow Team

3. Turn in Earnest Money

4. Schedule Home Inspection

5. Appraisal

6. Final Approval

7. Final Walk Through

8. Sign Loan Documents

9. Closing Day and Keys!

1.

2.

3.

5.

BUYERS AGENT VS. LISTING AGENT

BUYERS AGENT ROLE

• Represent the Buyer

• Help the Buyer get Preapproved

• Help the Buyer find the right Home

• Create Offer on Home

• Represent the Buyer in the Transaction & Negotiations

• Help get through all the Contingencies (Inspection, Appraisal)

LISTING AGENT ROLE

• Represent the Seller

• Stage the Home

• Professional Photos of the Home

• List the Home on the Market

• Market the Home to Realtors and Online

• Represent the Seller in the Transaction & Negotiations

We represent both Buyers and Sellers as Clients. Typically there are two different agents involved in a transaction; the Buyer’s Agent and the Seller’s Agent. We do not typically practice Dual Agency.

We also respectfully ask that you do not visit new construction homes without us!

MORTGAGE DO'S AND DON'TS

DO'S

DON'TS

• Ask your lender about different loan programs

• Know how much you have saved for a downpayment

• Inquire about downpayment assistance programs

• Be honest and upfront about your credit history

• Try to get preapproved, even if you're not sure you'll qualify

• Quit your job or change jobs until you live in the home

• Go open a credit card or department store credit card

• Go buy a car or any other large purchase until you own the home and are moved in (this includes financing new furnitures or appliances!)

CLOSING COSTS 101

Buyer Pays

Plan for 1.5-2% of the purchase price (ask us how to get these paid for or financed!) This includes:

• Professional Services Fees for $495

• Lender Fees

◊ Appraisal, credit report, loan origination, pre-paid interest, PMI

• Recording Fees

• Half of Escrow Fees

• Lender's Title Insurance Policy

• Prorated HOA dues and Prorated Property Taxes

Seller Pays

• Excise Tax (aka, "Sales Tax" on Real Property)

• Real Estate Commissions (Typically)

• Your New Title Insurance Policy for the home

• Prorated HOA Dues and Property Taxes

• Half of Escrow Fees

CLICK ONTO OUR WEBPAGE

LINK TO FIND THE FOLLOWING INFORMATION:

• Connected directly to the NWMLS

• See homes up to 48 hours before they are on Zillow or Trulia

• Our site shows all property types:

◊ Foreclosures

◊ Short sales

◊ Bank owned homes etc.

• See new listings within 15 minutes of them coming on the NWMLS, coming back on market or having a price adjustment

• Search for Open Houses

• Connected to GreatSchools.org, which highlights school locations and ratings

• Turn by turn directions to each listing

• Shows all homes for sale from every brokerage (not just our team)

• Ability to save your favorite homes

• Ability to schedule showing for any property

• Easy connection and communication with your agent

NEW CONSTRUCTION

Never visit the site without your agent. We are knowledgeable professionals and we help protect your interests to ensure you’re getting the best deal.

• Ask us for feedback on builders we have great relationships with multiple builders in the area

• Ask us about the pros and cons of using the builders preferred lender

Keep in mind that the builder is paying their agent's salary and that the agent probably earns a commission from each property they sell. They might not be looking out for your best interests as a result.

Note: With new builds, it is a set price. This is great for avoiding escalations and bidding wars, but this also means no discounts.

FUNDS WORKSHEET

Maximum Price: $

Funds Available: $

Closing Costs (~2%): -$

Minimum Down Payment: -$

Possible Max Appraisal Coverage: $

ESCALATIONS 101

$800,000 ESCALATION CAP

$7,500 INCREMENTS WINS HOME AT $757,500

TWO OFFERS (SAME HOME)

BOTH OFFER

$700,000

SAME LOAN PROGRAM

SAME DOWN PAYMENT

SAME INSPECTION OPTION

$750,000 ESCALATION CAP $5,000 INCREMENTS

MISSED OPPORTUNITY

INSPECTION STRATEGIES

INSPECTION

WAIVE

• MOST RISK

• STRONGEST OFFER

• HOME WARRANTY

• SELLER PROCURED

PRE-INSPECT

• LOW RISK

• UPFRONT COST

• TIME CONSTRAINTS

CONTINGENT

• LOW RISK

• WEAKEST OFFER

• PASS/FAIL

• REQUESTS

EARNEST MONEY STRATEGIES

WHAT IS IT?

• 1%-3%

• MORE IS BETTER

• APPLIED TO CLOSING COSTS AT CLOSING

• HELD BY ESCROW

EARNEST MONEY

WHEN?

• MINIMUM 2 DAYS

• FASTER IS BETTER

RELEASE TO SELLER

• NON-REFUNDABLE

• STRONG OFFER

FINANCING STRATEGIES

WAIVE

• NO PROTECTION FOR EARNEST MONEY

• STRONG OFFER

• CAN STILL USE APPRAISAL ADDENDUM

FINANCING

CONTINGENCY

PURPOSE

• COVERS EVENT OF LOW APPRAISAL

• DISCLOSES YOUR LOAN

• RETURNS EARNEST MONEY IF CANNOT GET LOAN

ADDITIONAL DOWNPAYMENT

• STRENGTHENS OFFER IN EVENT OF ESCALATION

• MUST BE FUNDS OUTSIDE OF LOAN

VARIABLES

• Earnest Money (recommend 1-3%)

• Loan/Financing Type

• Down Payment

• Appraisal Coverage

• Close Date

• Closing/Possession Terms

• Contract Contingencies

• Inspection Strategy

• Information Verification Period

• Buyer Letter to Seller

• Offer Highlight Letter

• Proof of Funds or Pre-Approval Letter

• Lender Cross Selling Buyer to Listing Agent

OFFER REVIEW DATES

We can beat it--we can sell beforehand

Multiple Offers

Below Market Value

They can change the date of the review

Don't always get offers

One Chance

High Chance of Escalation

THE NEXT STEPS

Step 1: Decide to Work Together

Step 2: Get Pre-Approved with a Local Lender

Step 3: Tour Homes

Step 4: Find Your Dream Home

WHAT TO LOOK FOR IN A LENDER

• Mortgage Specific Local Lender

• Pre-Underwriting Available

• Nights and Weekend Accessibility

• Financial Scenarios Provided Same Day

• Good Rates

• Strong Reputation in the Market

• Ability to Customize Approval Letter to Amount We Are Offering

BAA & REAL DISCLOSURES

BAA: Commitment between Agent and Client, identifies what we will do for you. This also states that you are not responsible for paying a commission (it comes from the Seller).

Law of Real Estate Agency: Identifies the Fiduciary Responsibilities we have to you as your Agent

Agency Disclosure: Identifies that we are representing you as a Buyer

REAL Disclosures: These are Boilerplate

Disclosures that our Brokerage requires. It covers everything from your rights as a Buyer to Written Notice that REAL Brokerage has either Direct or Indirect Relationship with a variety of businesses.

BENEFITS OF HOME OWNERSHIP

Customization

Hedge Against Inflation

Appreciation (Avergae 3%)

No Increase in Monthly Payments

Mortgage Interest Write Off

Decide you want to buy a home

WHAT'S IMPORTANT IN AN AGENT?

Real Estate

TOUR HOMES WITH YOUR REALTOR®

In competitive markets, you need to be one of the first people to see the home. We often beat the listing sign to the home and guarantee you a same day showing on a home you want to see!

Making sure we take the time to define your “must haves” is an important step to make sure we are looking at homes that match your criteria.

If we haven’t put an offer in within the first 10 homes you see, we need to sit down and rereview your must haves.

Hit the “Favorite” button on the properties you like on our websites:

We Show 7 Days a Week

Max of 5 Homes Per Tour

Tour at least 5 Homes before deciding

We'll show the same day you want to see the home!

BUYING A CONDO

Buying a condo can be a great way to dive into homeownership without worrying about much of the upkeep that comes with single-family homes and townhouses.

Something to consider is HOAs and associations. Condo associations can differ based on the requirements of the individual property. Some may impose additional fees to cover shared expenses such as unexpected building repairs or even adding new amenities that are approved by the condo board.

KEYS AND CLOSING TIME

• Closing generally occurs 1-3 days after loan documents are signed

• As soon as we have recording numbers from Escrow, we get you the keys

• You will have keys and access to your home the same day it closes

• Recording generally happens later in the afternoon. Prepare to move the day after closing.

WE RESPECTFULLY ASK...

That you follow the “Do’s & Don’ts" of the mortgage process within this document:

• That you show up on time to meetings and home tours

• For your honesty with us, at all times

• For your full commitment to our team

• That if you are completely satisfied with your experience, please refer us to your family & friends!

Please note that you can expect all the same from us!

TESTIMONIALS

CLIENT EXPERIENCE

"The Novak Team worked with me and my wife to make sure we got the home we wanted after 6+ months searching and touring many properties. Weekly check-ins and prompt new listing emails from their team had us at the front of the pack and ready to buy when we finally found a house we loved. The team's market expertise allowed for us to make a competitive offer and his diligence in drafting it ensured we had it submitted before any other offers were accepted. Having peace of mind as a first time buyer was an invaluable aspect in the process and the Novak Team made sure our needs were always met. We couldn't recommend them enough!" -Client

CLIENT EXPERIENCE

"Used the Novak team when my family purchased our very first home, and it was more than excellent. They were all very kind, responsive, and very transparent which was very helpful. They never beat around the bush just to sell something. We could really tell they cared that they got us into a home we loved. They were always willing to run the numbers for us, to see the exact detailed costs of everything which was extremely helpful. The team were always game for showing us new or existing listings, and would always work around our schedules to make sure we saw anything we were interested in. They made it really clear about what we should focus on when looking, and never pushed us into anything. We felt they really cared about what we wanted in a home, and would look for aspects we prioritized. They are highly recommended and are phenomenal. The team worked hand and hand with one another to answer all our questions it extremely timely fashion. 10/10 would recommend, and we will be using them again, if and when we move again." -Client

CLIENT EXPERIENCE

"We could not be more grateful and satisfied by the service that the Novak team provided. My wife and I were able to buy our 1st home in a very difficult market quickly and with relative ease, as we were able to lean on the knowledge and experience of an expert team. The folks at Novak are knowledgable, helpful, and professional. They truly care about their customers and have continued contact long after the sale. They went out of their way to send personalized gifts celebrating the birth of our daughter and they truly mean a lot to us. I highly recommend the Novak team to anyone in need. Thank you Novak Teamin helping us with our purchase." -Client

CLIENT EXPERIENCE

"The Novak Team have been invaluable to our real estate hunt and transaction. Perfect and proactive communication made everything simple and smooth for us. I had 100% confidence that they had my best interests in mind at all times. They not only helped us put in our offer but went above and beyond by “breaking brush “ through the dense woods on a vacant piece of land to help us see all the possibilities. I highly recommend them to anyone needing an agent!" -Client

CLIENT EXPERIENCE

"Thanks to the Novak team and Premier Mortgage, we get to sit on the couch or on the porch and watch the sunset every night. As first time homebuyers this was an intimidating process but they made it happen, they were BEYOND supportive, and very clear and direct through this process. With how crazy the market is we totally thought we would be on the hunt and in the bidding war process for months...NOPE! First house we found that we fell in love with is the one we got! And we didn't have to compromise on our wants for our perfect home! Thanks to the Novak team our dream came true in the most perfect home in such a beautiful neighborhood!!!" -Client