Thrive Real Estate Group Buyer's Guide

Colorado Buyer's Guide S M A R T D E N V E R R E A L E S TA T E . C O M

Move to your Better Life.

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PRESENTED BY

T H R I V E R E A L E S TAT E G R O U P To Your Better Life M. 720-696-0606 betterlife@thrivedenver.com

INTRODUCTION Who We Are

4

Our Mission Vision Values

5

Stats That Matter

7

Our Distinct Process

8

Are You In?

11

YOUR BETTER LIFE Your Property Goals

14

The 70/20/10 Rule

16

Deal Makers and Breakers

17

N AV I G A T I N G T H E M A R K E T Your Buying Journey

18

Must Haves to Win

19

ALL ABOUT THE MONEY The Strongest Lending Position

21

Your Buying Costs

22

FIRST CLASS SERVICE Contracts 101

24

Contract to Close Calendar

25

Getting Started

26

Writing Your Story

27

RESOURCES Room by Room

28

Resource Roundup

29

Notes Worth Keeping

30

BUYER'S GUIDE | 03

Buying a home, whether it’s your first, fi h or fi eenth, can be one of the most exciting and equally daunting experiences.

Big life changing decisions that we are totally here for.

At Thrive, our vision has always been clear—to move people to their better lives. And of course real estate, aka your next home, school, neighborhood, dog park, trail head or brewery has a big part to play in that for us.

Who We Are Our mascot is a Llama (there is a back story)—some call him Snarky—and we’ve served thousands of buyers and sellers across Colorado since our inception in 2011.

We’re locally owned and operated with a HQ on Antiques Row on South Broadway in Platt Park.

We’re boutique in nature, but pack a big punch when it comes to getting results for our clients.

We steadfastly pursue long-term relationships over chasing the next transaction—this is sacred and reflected and lived out daily through our Mission Vision and Values.

04 | BUYER'S GUIDE

Our Mission W H AT W E D O We simplify and clarify home buying and selling.

Our Vision WHY WE DO IT We move people to their better life.

Our Values H OW W E D O I T We advocate selflessly, execute tightly and live lightly.

BUYER'S GUIDE | 05

#1 Brokerage in the Country In the process of moving our clients to their better lives, we’re humbly proud of being rated the #1 Brokerage in the Country for Client Experience on Zillow. We’re also top rated on Yelp and Google.

2,000+ Five-Star

800+ Five-Star Reviews & Counting

S C A N Q R CO D E For our raves and reviews

Reviews & Counting

600+ Five-Star Reviews & Counting

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S M A R T D E N V E R R E A L E S TA T E . C O M

Stats That Matter Here are a few stats that we think are important for you, as a buyer, to consider when choosing your Real Estate Advisor - and yup, we consider ourselves Advisors, an elevated version of an “agent”.

Why? Because in all honesty, getting your real estate license is not that hard, and we operate in a lifetime advisory relationship, not just for the duration of a transaction.

Our services don’t stop at the closing table and we work tirelessly to elevate our standards, expertise and processes to provide our clients with more than they expect and everything they deserve.

15 Years+ Serving the local real estate market

$550+ mil In sales in the past 12 months

Properties transacted in

Top 1% Rated

the past 12 months (one

In the US for Client

every 10 hours)

Experience

900+ Sold

S M A R T D E N V E R R E A L E S TA T E . C O M

BUYE R'S GUIDE | 07

Our Distinct Process At Thrive, we have a well worn mantra that goes a little something like this...

“Tell people what to expect, before it happens, so that when it happens, they are not surprised.”

It’s also commonly referred to as “skating ahead of the puck”. Why should you care?

Well, there are literally thousands of agents to choose from when you buy a home. But the majority won’t be able to articulate “what you get” if you choose to work with them...mainly because you don’t get much of anything.

At Thrive, we’ve taken the time to design a predictable process and a concierge style service that decreases stress and increases the likelihood of locating, negotiating, and celebrating the home you envisioned.

It’s represented simply overpage, but when you work with a Thrive Advisor, you can count on a high level of knowledge, advisorship and execution at every step of the way.

In short, nobody does more to guide you to the right home at the right price.

S C A N Q R CO D E Here's how we do this.

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S M A R T D E N V E R R E A L E S TA T E . C O M

BUYING SIMPLIFIED

01

FINANCING

02

HOME SEARCH

03

N E G O T I AT I O N S

04

DUE DILIGENCE

05

CLOSING

06

HOME OW N E R S H I P

S C A N Q R CO D E You can dig into this buyer process further here.

S M A R T D E N V E R R E A L E S TA T E . C O M

This Buyer Guide is less about us, and more about you.

Consider it a roadmap to your better life.

It’s jam packed with our very best buyer strategies, resources and contacts to help you navigate the local real estate market. By the time you’re moved in, it should be dog-eared and well worn. Keep it to hand throughout the process and let’s get you started.

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Are You In? Let’s get real from the get-go and set some expectations up front.

We love what we do and like to have fun along the way, but we also take our responsibility to our clients seriously.

We’ll be great partners on this journey, if you...

SOU N D LI K E A “ H E CK Y E A H ” TO Y O U ?

You’re In. We’re In. Let’s get you to your Better Life!

• Prefer honest, realistic guidance over hype and flashy sales tactics; • Value professional advice and a full service experience over a part-time agent; and • Believe that nothing should be done, unless it’s done properly.

BUYER'S GUIDE | 11

Your Better Life S O W H AT I S I T , R E A L L Y ?

When we think about the concepts of “Better Life” and “real estate”, it's easy to focus on the property first. We like to approach it the other way.

We look at people first (you), then the property and how that gets you to your real better life.

So what is it? This better life of yours?

Is it hiking on the weekends, being close to the best bars and breweries, a great community of close neighbors and friends, a shorter commute to work, your first step to building generational wealth, a quick hop to the mountains?

Whatever it is, hold this vision close when you’re pursuing your property goals.

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Your Property Goals It’s time to get crystal clear on your property goals. One thing we know for sure is that looking at more homes does not equal more clarity - in fact, it’s often a fast-track to house-hunt burn out.

In working with thousands of our clients over many years and across many market cycles, whether they be head or heart led, those with the strongest vision of their property goals have the easier path to them.

Use these prompts to establish your north star during the process of seeking out and securing your home.

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Property Goals Even better, share these with your Thrive Advisor so they can help clear the path to your home with your better life in clear view.

B E D S / B AT H S ?

S Q U A R E F O O TA G E ?

G A R AG E ?

NEED A FLEX/OFFICE SPACE?

(More importantly, what’s in your garage?)

W H AT ’ S Y O U R I D E A L T I M E F R A M E ?

W H AT ’ S Y O U R M A X B U D G E T ?

W H AT ’ S Y O U R M O N T H L Y P AY M E N T BUDGET?

H O W L O N G D O Y O U P L A N TO L I V E I N THE HOME FOR?

W H AT N E I G H B O R H O O D ( S ) ?

P R O P E R T Y CO N D I T I O N ? (turnkey, cosmetic updates only, fixer is fine)

STYLE OF HOME

YA R D O R N O YA R D ?

(ranch, historic, modern, condo, townhouse)

URBAN, SUBURBAN, RANCH?

S M A R T D E N V E R R E A L E S TA T E . C O M

A N Y T H I N G E L S E I S H O U L D K N OW ?

BUYER'S GUIDE | 15

Pro Tip The 70/20/10 Rule It’s rare to find a house that is 100% perfect - even on a multi-million dollar budget.

We’ve found that if you look at any house through the 70/20/10 Rule, you’ll be a lot closer to “the one”.

70%

20%

10%

the amount you

the amount you’d

the amount you

must love about the

be OK to change

must simply be OK

house, as is.

about the house

to live with, as is.

once you move in.

Of course, these ratios may change if you are a die-hard renovator and love “a project”, but 70-20-10 is a good general rule of thumb for most buyers to keep in mind.

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S M A R T D E N V E R R E A L E S TA T E . C O M

Deal Makers & Breakers When it comes to your new home, what are three things that you cannot live with, and without. These should be kept “top of mind” at all times when looking at homes - both online and in person.

Examples of deal makers are things like - must have a yard for Fido, close to xyz location, ensuite in primary bedroom. Deal breakers can be things like - a busy road, an HOA, homes older than 100 years, for example. By getting clear on these, you save a ton of time and emotional energy throughout the process.

DEAL MAKERS

S M A R T D E N V E R R E A L E S TA T E . C O M

DEAL BREAKERS

BUYER'S GUIDE | 17

Navigating The Market YOUR BUYING JOURNEY All great journeys start with a first step and when you’re buying a home, having a team of experts on your side from that very first step can be a huge asset. From ever-changing market conditions, to financing rules and regulations, to city-specific laws, it pays to work with a qualified REALTOR up front and early in the piece.

Here’s a brief overview of what that journey looks like.

Thrive Advisors live, work and play across the greater Denver area and our goal is to zero in on the right home purchase for you, your lifestyle, needs and budget—and have fun doing it.

1. Engage a Thrive Advisor 2. Select a seasoned mortgage professional 3. Pre-underwrite for a loan 4. Create a needs & wants list 5. Visit properties 6. Understand which aspects will help or hinder later resale 7. Rank the houses you visit 8. Make an offer (and have it accepted) 9. Perform due diligence 10. Finalize financing 11. Move to your better life

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S M A R T D E N V E R R E A L E S TA T E . C O M

Must Haves to Win in this Market YOUR BUYING JOURNEY Property in Colorado is highly sought after and having an experienced full-time Real Estate Advisor to help you navigate the market conditions at the time you’re buying is mission critical.

Here are just a few of the ways we can help you secure your property:

Understanding that price is not the only factor when negotiating a win for you. Our Advisors are ninjas when it comes to leveraging non-financial strategies such as appraisal gap, inspection waiver, timing, communication with the Seller’s Agent...you’d be shocked at how many agents simply send in offers without even talking to the listing agent!

Micro-stats and neighborhood-specific market knowledge is critical in understanding how to develop a winning offer.

The showing cycle is another important factor in crafting an offer - we understand the nuances of this and how it can impact your buying strategy.

S M A R T D E N V E R R E A L E S TA T E . C O M

BUYER'S GUIDE | 19

All about the Money U N L E S S Y O U ’ R E P AY I N G C A S H W H E N YOU BUY YOUR HOME, YOU’LL ALSO N E E D TO B U Y Y O U R L O A N .

Speaking about winning strategies, after hiring a Thrive Advisor, your next port-of-call (if you haven’t done it already) is to connect with a professional local lender to get you properly qualified to start shopping.

Pro Tip Get pre-underwritten with the lender you intend to work with before you start touring homes with your Thrive Advisor. This will not only give you a price-point to zone into, but also put you in a stronger position to win if “the one” happens to hit the market.

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S M A R T D E N V E R R E A L E S TA T E . C O M

The Strongest Lending Position If you’re in it to win it, you should seek the strongest financial position. This is what that looks like.

01

1 . P R E - Q U A L I F I C AT I O N Typical of big banks and online brokers. Requires minimal documentation or verification. This is the weakest type of approval. The best lenders will not do them.

2 . P R E - A P P R O VA L Some documentation such as tax returns, W2’s, pay stubs, and

02

account statements are provided and verified by a loan officer or processor. In addition, credit is usually checked. Underwriters, the folks who will make the final decision about your loan, are not involved. This is the most common approval type and is stronger than the pre-qualification.

3. PRE-UNDERWRITING

03

With this level, all documents in the pre-approval level in addition to IRS transcripts, employment verifications as well as more forensic, borrower specific, documents are provided and verified by an underwriter. Most lenders will not take this step, but this is the strongest approval and gives you the most negotiating leverage when making an offer.

S C A N Q R CO D E To find out more about the complete lending process from contract to close head here.

S M A R T D E N V E R R E A L E S TA T E . C O M

BUYER'S GUIDE | 21

Closing & Settlement Costs

In addition to your loan down payment, there are other costs associated with buying a property. Some of these are in the form of fees at closing (such as lender and title fees), some are pre-paid escrow funds, and others are in the form of out of pocket expenses prior to closing to pay for items such as home inspections and your appraisal.

Your lender will give you an estimate of what your closing and settlement costs are likely to be within three days of your loan application, but it’s always good to count on around 1-2% of your loan amount for these costs.

Here is a table of these fees. Those due at closing will be finalized and provided to you a couple of days prior to closing by the title company via a final Buyer Settlement Statement.

The settlement statement will also include your down payment - so essentially everything you owe to make the property yours. Usually you can bring a cashiers check or wire the funds to the title company.

S M A R T D E N V E R R E A L E S TA T E . C O M

FEE

Did you know?

Most title companies accept closing funds via check or wire, however some have limits on how much you can bring via a check. Prior to closing, please call the title company or ask your Advisor about this in your case.

A M O U N T ( A p p ro x )

PAID WHEN

Appraisal

$750 - $1000

At Appraisal

Audit & Compliance Fee

$595

At Closing

Real Estate Closing Fee

$450

At Closing

This fee is negotiable in the contract but usually split 50/50 between buyer and seller.

ILC (Improvement Location Certificate)

$500

At Closing

General Inspection Fee

$600

At Inspection

Sewer Scope

$175

At Inspection

Radon Test

$125

At Inspection

Record Deed of Trust Fee

$150

At Closing

If you buy a property with a loan, the following fees may apply (check with your Lender): Title Insurance (Lender Policy)

$600

At Closing

Loan Closing Fee $400

$400

At Closing

Wire Transfer Fee from Bank

$20 - $50

48 hours before Closing

Lender Origination Fee

Varies

At Closing

Loan Interest

Varies

At Closing

Insurance Escrow

Varies

At Closing

Tax Reserve/Escrow

Varies

At Closing

Tax Certificate

Varies

At Closing

Recording Fee

Varies

At Closing

Courier Fees

Varies

At Closing

Transfer Fees

Varies

At Closing

Documentary Fees

Varies

At Closing

If you buy a property in an HOA, you may also be responsible for: Working Capital

Usually three months of pre-paid HOA fees

At Closing

Transfer Fee

$200

At Closing

Status Letter Fee

$200

At Closing

S M A R T D E N V E R R E A L E S TA T E . C O M

BUYER'S GUIDE | 23

The Roller Coaster Like any good rollercoaster ride (or 14er hike), the line up to buy a house is full of anticipation, excitement and (sometimes) dread.

We get that, and are with you at every turn, peak and valley.

CLOSING

UNDER CO N T R A C T

POST-INSPECTION

POSI TI V E (Confidence, Joy, Hope, Enthusiasm)

EMOTIONS N E G AT I V E (Anxiety, Fear, Worry, Apprehension)

INSPECTION

Contracts 101 Colorado has some of the strictest real estate laws of any state—covering disclosure rules, HOA rules and regulations, and much more. This is a good thing and real estate agents in Colorado have a limited license to practice real estate law through these contracts.

If the smallest detail is overlooked, it can create a stressful home-buying experience. We’re trained and have rock star Transaction Specialists on your team to cross every “T” and dot every “I”, so you don’t have to.

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APPRAISAL

The Typical Buying Process in Colorado As a buyer you have many opportunities during the contract process—which is usually 21 to 30 days—to decide whether or not you want to proceed with the purchase of the property. This is what a typical 30-day contract process looks like. Of course your dates and deadlines may differ, but this gives you an idea.

THRIVE / LENDER

BUYER

01

02

03

Congrats!

You’re Under Contract!

- Appraisal ordered - Title work ordered - Disclosures & needs list sent to you

Earnest Money Due

Loan App Due

06

07 - Processor submission & intro call

08

04 - Lender reviews signed disclosures & needs list.

- Lender orders transcripts, evidence of insurance

09

12

10 - Inspection Obj/Term

New Loan Terms Deadline

- Title Objection

- Title docs due

11

05

- Insurance Deadline

13

14

Inspection Resolution

15 - Conditional underwriting approval

Title Resolution

16

17

18

Processor submission for closing

Processor call with anything needed to clear conditions

Resubmission to Underwriter for clear to close

Appraisal Objection

Appraisal Resolution

21

22

- Final approval or conditional approval - Closing time schedule

26

27

19

20

23

24

25

- If needed, resubmit back to underwriting for final approval -Confirm closing

- Final loan approval - All RE contracts and disclosures are fully executed

Closing Disclosure from lender for final signature

28

29

30

All lender documents signed & sent to title company

Final walk-through with your Thrive Advisor

Closing Day!

Wire sent to Title Company

New Loan Availability Deadline

BUYER'S GUIDE | 25

Getting Started This is called the “so, you wanna date” section. It’s where we stop “flirting” with each other and get serious about working together and moving you to your better life.

As a buyer in Colorado, there are several ways you can be represented, and in essence, there are a few core documents that kick off the process. Your Advisor can guide you through these in detail, but here’s a quick rundown.

• Definitions of Working Relationships: this is not a contract but rather a form that describes the types of working relationships you can have within a real estate transaction with a licensed real estate broker.

• Brokerage Disclosure to Buyer Definitions of a Working Relationship.

Not to be confused with the above definitions document, the Brokerage Disclosure to Buyer is a document both the buyer and the broker sign, and which clearly explains the real estate broker's role in the transaction. This does not engage the broker as your Buyer's Agent—for that you'll need an Exclusive Right-to-Buy Listing Contract.

• Exclusive Right-to-Buy Listing Contract: this is what officially hires your Thrive Advisor as your Buyer’s Agent. You’re officially “an item”.

• Contract to Buy Real Estate (residential). This is the contract between you, the Buyer and the Seller for the purchase of property.

So...

Wanna go on a date?

26 | BUYER'S GUIDE

S M A R T D E N V E R R E A L E S TA T E . C O M

Writing Your Story We love what we do and the clients we get to work with.

Whether you’re first-time-buying, upsizing, downsizing, moving into the State or just across the street. We’d love to be part of that journey and part of your Better Life Story.

B E C A U S E T H E S E A R E T H E S TO R I E S W O R T H T E L L I N G .

Your Buyer Resources ROOM

DIMENSIONS

ROOM BY ROOM When you finally get under contract and close to closing, we’ve found that most buyers scramble for a pen and paper at their final walkthrough to get some dimensions down. This may help you in that case.

NOTES

Kitchen Living Room Dining Room Laundry Bathroom 1 Bathroom 2 Bathroom 3 Primary Bedroom Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Office Flex Room Ceiling Height Basement Base Ceiling Height Garage

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S M A R T D E N V E R R E A L E S TA T E . C O M

Resource Roundup If you need to flip to a FAQ or want to dig deeper into Thrive or the buying process, here are a few extra resources.

A BUYER'S AG E N T ?

FIRST TIME BUYER TIPS

R E A L E S TAT E TERMS

THRIVE GIVES BACK

Whether you work

A great list of tips and

Don’t let the lingo

See how your choice in

with a Thrive Advisor

tricks to prepare you

confuse you. We’ve

working with a Thrive

or not, you should

to buy your first

simplified and clarified

Advisor impacts

know everything a

home.

some of the RE jargon

homelessness on a

in this handy glossary.

global scale through

buyer’s agent should do for you on your

our charity partner,

property journey.

New Story.

H OW S T H E MARKET?

U N D E R S TA N D I N G C R E D I T S CO R E S

T H E M O R T G AG E PROCESS

M O R T G AG E C A L C U L ATO R

Get an up-to-date, non

A simplified overview

A quick and

This online calculator

spammy, micro-niched

of credit scores and

easy-to-follow break

will help you estimate

snapshot of the Denver

how they impact your

down of the key

your monthly

market and how it may

lending and buying

components of the

payments, including

impact your property

powers.

mortgage process.

taxes and mortgage

Remember, you’re

insurance.

purchasing decisions.

buying a loan as well as a house.

S M A R T D E N V E R R E A L E S TA T E . C O M

BUYER'S GUIDE | 29

NOTES WORTH KEEPING

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S M A R T D E N V E R R E A L E S TA T E . C O M

About Thrive Our Core Values A D V O C AT E S E L F L E S S L Y Thrivers choose to pursue relationships over chasing transactions.

EXECUTE TIGHTLY Thrivers are vigilant, diligent, and proficient.

LIVE LIGHTLY Thrivers take their roles extremely seriously, but do not take themselves too seriously; lightheartedness is a promotable attribute.

Fun Facts Over a decade of home buying & selling.

Over a billion dollars of real estate sold.

Rated #1 in the country by Zillow for Customer Experience.

Over 2,800 online Five-Star Reviews.

In summary, Thrivers value humility while being extremely good at what they do, and embrace the responsibility of their roles.

S M A R T D E N V E R R E A L E S TA T E . C O M

Mission What we do We simplify and clarify home buying and selling.

Vision Why we do it We help people move to their better life.

Core Values How We Do It We advocate selflessly, execute tightly, and live lightly.

5 5 9 9 S R I O G R A N D E S T , L I T T L E TO N , CO L O R A D O 8 0 120

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