HOME BUYING STEPS
A Realtor® is an invaluable asset in the home buying process that will guide and advise you through all the steps to getting the perfect property. With vast databases, I can provide references, connections, and assistance for each step.
Interview Realtors® & select best fit
Get pre-qualified for a loan (your Realtor® can help you connect with a local lender)
Discuss purchase goals, wants, and needs
Review and execute Exclusive Right to Buy
Review budget and desired monthly payments
Begin your home search! Your Realtor® will set you up with a search in the MLS
When you find a home you love, discuss an offer with your Realtor® who will do market research to inform and guide your offer
Under contract!
Begin due diligence abiding by deadlines
Loan process
Getting ready for closing
Closing!
Drive around areas of interest
Review Contract with your Realtor® and send to seller representative
Gather financial and requested information for lender
Visit homes with your Realtor®
You and your Realtor® will work together to negotiate price and terms as needed
Submit Earnest money payment
Order inspections (your Realtor® can help facilitate this)
Review loan terms specific to the property
Final loan approval
Review title work, property disclosures, HOA documents, and other due diligence items
Obtain property / home owners insurance
Send any additional documentation to lender
Review settlement statements Final walkthrough Transfer utilities
Sign loan and title documents
Get your keys
Lender will order appraisal
Send wire for final amount due
Move into your new home!
PURCHASE CONSIDERATIONS
Determine your goals, wants, and needs by evaluating your activities and lifestyle then prioritize their importance. Share this with your Realtor® to begin your home search.
TIMING
• Do you have a specific deadline by which you need to be moved? (i.e. start of a new job or before school year begins)
• When does your current lease expire or home sell?
LOCATION
• Commute time, near public transportation, close distance to amenities?
• Specific neighborhood, subdivision, rural community?
• Other wishes such as views, access to trails and recreation?
AMENITIES NEED WANT COMMENTS
# OF BEDROOMS
# OF BATHROOMS
SQUARE FOOTAGE
GARAGE SIZE
YARD AND/OR ACREAGE
SINGLE OR MULTI STORY
DISTANCE FROM TOWN
EXTRA ROOMS (I.E. OFFICE)
FIREPLACE / WOOD STOVE
AIR CONDITIONING
FLOOR TYPE
WATERFRONT
OUTBUILDINGS (I.E. SHED)
IRRIGATION
PETS & HORSES/LIVESTOCK
OTHER PRIORITIES
YOUR HOME BUYING TEAM
During your home buying process, you will rely on a variety of experts. It is my job to assist you in coordinating your home buying team and, once we are under contract, ensure these team members are performing and following our deadlines. Below are individuals and/or businesses that we engage with regularly and trust to work diligently on your behalf. I am always happy to make connections, please let me know how I can help.
MORTGAGE LENDERS
The role of your lender is crucial in the buying process and getting to the closing table on time and with no surprises. It’s imperative that you are comfortable with your lender and with your loan options.
• Chris Wherry, Four Corners Lending 970.799.2324 chriswherry18@gmail.com
• Corri Stewart, Highlands Mortgage 970.946.3186 cstewart@highlandsmortgage.com
• Denise Finks, TBK Bank 970.382.5754 dfink@tbkbank.com
• Aaron Sinberg or Todd Wells, Sinberg Captial Lending 970.749.7661 | 970.426.9003 aaron@sinberglending.com | todd@sinberglending.com
• Teri Simmons, Bank Central (non-conventional, land, construction loans) 970.385.5351 | 970.459.9254 teri.simmons@bankcentral.com
YOUR HOME BUYING TEAM
GENERAL HOME INSPECTORS
The home inspector is another critical player on the team - the inspection will ensure that you are making an informed decision about the home you are about to purchase.
There are a variety of other specialized inspections that may be advantageous depending on the property, such as radon, termite, roof, HVAC, foundation, etc. We will go over what is appropriate for the property.
• Chris Herman, Housemasters, 970.247.4003
• Todd Wright, Wright Home Inspection, 970.759.8241
• David Pace, Pace Property Inspections, 970.880.0373
ATTORNEYS
The Colorado Real Estate Commission recommends that you consult an attorney to review the contract and documents associated with purchasing a home.
Specific concerns may arise during your due diligence period where an attorney with a specialized area of expertise is called for. I can help you get connected with the right attorney at that time.
• Tom Geyer, 970.247.3091
• Maya Kane, 970.946.5419
• David Kirkpatrick, 970.247.0269
• Josh Mack, 970.259.8790
• Christina Landeryou, 970.247.3123
• Jeff Kane (water), 970.403.2851
YOUR HOME BUYING TEAM
TITLE COMPANY
The title company works on behalf of the buyer and seller to research and insure the title to the property. The title company is customarily selected by the seller.
There are three title companies in town:
• Colorado Title and Closing Services, 970.247.5464
• Title Durango, 970.385.0303
• Land Title Guarantee, 970.247.5860
INSURANCE AGENT
Protecting your investment is critical, and insurance will be mandatory if you are obtaining a loan.
• Jay Hwang, State Farm, 970.247.3105
• Wendy Most, State Farm, 970.259.2550
• Ben Frihauf, Farmers Insurance, 970.247.1292
• Jennifer Wade, American Family Insurance, 970.259.0091
• Justin Kautter, Leavitt Group, 970.259.7966
HOME WARRANTY
If the home doesn’t come with a home warranty, it is worth purchasing a 1-year warranty which will cover a wide range of items in the home should something fail after you purchase the home.
• Home Warranty, www.homewarrantyinc.com, 877.977.4949
• Blue Ribbon Home Warranty, www.blueribbonhomewarranty.com, 303.986.3900
• American Home Shield, www.ahs.com, 866.774.2961
AGENCY RELATIONSHIP
Our full time job is to manage the stress and details of the buying process so you can focus on your other commitments and stay excited about your home purchase!
AGENT, BROKER, AND REALTOR®
• The terms Realtor®, Agent, and Broker are often interchanged.
• Agent refers to someone you’ve established a formal agency relationship with to help buy, sell, or rent property. They are licensed as a real estate agent in their state.
• A Broker is someone who has continued their real estate education and passed a Broker’s license exam. They have more in-depth knowledge on topics such as ethics, contracts, taxes, and insurance.
• A Realtor® must be a member of the National Association of REALTORS® (NAR) and adhere to higher standards and Code of Ethics.
SERVICES I PROVIDE YOU
• Education about the buying process
• Find new listings that fit your criteria, then preview, schedule, and tour them with you
• Help you explore financing options
• Network with other Realtors® about your ideal property
• Prepare in-depth market research so that you can make a strong, fair market offer as well as provide consultation and negotiating strategies
• Assist in connecting you with related services like home inspectors, contractors, and movers
• Manage the entire transaction, in accordance with contractual deadlines, through to a successful closing
AGENCY RELATIONSHIP
Once we have established an Exclusive Right-to-Buy Listing Contract, my duties are the following.
DUTIES OF BUYER’S AGENT
• Promoting the interests of Buyer with the utmost good faith, loyalty, and fidelity
• Seeking a price and terms that are acceptable to Buyer
• Counseling Buyer as to any material benefits or risks of a transaction that are actually known by Broker
I will act in good faith performing these duties.
UNIFORM DUTIES
Broker must exercise reasonable skill and care for Buyer, including but not limited to the following:
• Performing the terms of any written or oral agreement with Buyer
• Presenting all offers to and from Buyer in a timely manner regardless of whether Buyer is already a party to a contract for the purchase of lease of property
• Disclosing to Buyer adverse material facts actually known by Broker
• Advising Buyer regarding the transaction and advising Buyer to obtain expert advice as to material matters about which Broker knows but the specifics of which are beyond the expertise of Broker
• Accounting in a timely manner for all money and property received
• Keeping Buyer fully informed regarding the transaction
Broker must not disclose the following information without the informed consent of Buyer:
• That Buyer is willing to pay more than the purchase or lease price offered for the property
• What Buyer’s motivating factors are
• The Buyer will agree to financing terms other than those offered
• Any material information about Buyer unless disclosure is required by law or failure to disclose such information would constitute fraud or dishonest dealing
The printed portions of this form, except differentiated additions, have been approved by the Colorado Real Estate Commission. (DD25 5-09) (Mandatory 7-09)
DIFFERENT BROKERAGE RELATIONSHIPS ARE AVAILABLE WHICH INCLUDE SELLER AGENCY, BUYER AGENCY OR TRANSACTION-BROKERAGE.
DEFINITIONS OF WORKING RELATIONSHIPS
For purposes of this document, seller also means “landlord” (which includes sublandlord) and buyer also means “tenant” (which includes subtenant).
Seller’s Agent: A seller’s agent (or listing agent) works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller. The seller’s agent must disclose to potential buyers all adverse material facts actually known by the seller’s agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.
Buyer’s Agent: A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.
Transaction-Broker: A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer’s financial ability to perform the terms of a transaction and, if a residential property, whether the buyer intends to occupy the property. No written agreement is required.
Customer: A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party’s agent or as the party’s transaction-broker.
THIS IS NOT A CONTRACT.
I acknowledge receipt of this document on _________________________ .
Signature Signature
On ___________________ __, Broker provided ____________________________________ with this document via ______ and retained a copy for Broker’s records.
Brokerage Firm’s Name: Broker
APPRAISAL VS. INSPECTION
Both of these services are common during a home purchase and are generally hired and paid for by the Buyer.
Appraisals estimate the value of the property and may be mandatory if you are obtaining a loan. Home inspections are highly recommended to ensure you are fully informed about the condition of the property.
APPRAISAL
• A property appraisal assures your Lender they are making a good investment.
• A licensed appraiser provides an estimated market value of the home by completing an in-person site visit, comparing recent sales of similar properties, current market trends, and considers different aspects of the home (amenities, floor plan, square footage, etc.).
• If a property appraises under the contract price, the buyer must pay for the difference between the appraised value and contract price, or renegotiate the price with the seller.
HOME INSPECTION
• A home inspection provides a thorough overview so you are informed about the condition of the home and potential defects.
• A general home inspector will evaluate the physical condition of the structure, interior and exterior components (roof, windows, flooring, walls, etc.) and mechanical systems. They will identify which items need to be repaired, or replaced, and can often estimate the remaining useful life of major systems, equipment, structure, and finishes of the home.
• The general inspector may find something out of the ordinary and recommend that you hire a specialty inspector to evaluate items like radon, plumbing, roof, HVAC, septics system, pests/termites, stucco, electrical, structure, air quality, soil quality, lead-based paint, asbestos, mold, well water quality and quantity, and more. We have vetted contacts for these inspections as part of our service to you.
COSTS AT A GLANCE
The contract price on a home is the largest cost to account for during purchase, however there are additional costs such as property taxes, HOA dues, transfer fees, and other related service charges to take into consideration. Some are flat rate fees while others are dependent on the purchase price.
HERE IS A SAMPLE FOR A $555,000 HOME (not including and inspections or attorney’s fees):
INTEREST RATES AFFECT PURCHASE POWER
When mortgage rates RISE 1%, buyer’s purchasing power FALLS by 10.75%
Notice in the graph below, when there is a 1% increase in interest rates, the buyer who could qualify for a $600,000 home can now only afford a home for $535,000 because their power to purchase dropped 10.75% (not accounting for down payment, taxes, insurance, etc.).
MARKET EXPERTISE
THE DURANGO TEAM
The Durango Team has decades of real estate experience in the Durango, Colorado area. We have full time staff to assist you with all your real estate needs. Max and Deven our the lead agents, Katie assists with showings and staging of homes, Kim is our licensed assistant and Angela works part time on our marketing.
ESTABLISHED IN 1985
The Wells Group has been locally owned for over 40 years. We consistently own 20+% of the market share and have over 40 licensees. With three offices county-wide and significant involvement in our community, The Wells Group is a team of trusted advisors who have a wealth of collective knowledge to assist buyers and sellers in making the best all around decisions that meet their needs.
Experience The Wells Group difference today.
WORKING WITH US
You know us, and we know Southwest Colorado!
We are well versed in all of La Plata County and surrounding areas and hold vibrant connections in our communities, improving the knowledge we can pass on to you.
BIG FAMILY, LOTS OF SUPPORT
A full time Wells Group staff offers support across all areas. From the moment you come in the front door, our Front Office Receptionist welcomes you in and gets you to the right place. The Marketing Coordinator collaborates with each Broker to create the best marketing material while our Sales Manager assures our Broker’s high-quality standard.
EXPERIENCE
As the largest independently owned brokerage in Southwest Colorado, we keep it local! We know acquiring real estate is a complex business and we focus solely on advising you all the way through closing. Decisions at The Wells Group are made locally, quickly, and in your best interest.
COMMUNITY INVOLVEMENT
The Wells Group as a whole and our individual Brokers are active in our community in multiple capacities. Through volunteering, sponsorships, and much more we give back to the place we call home.
THE MARKET LEADER
THE MARKET LEADER
#1
Exemplifying our service, knowledge, and integrity, we consistently have the greatest market share as a Brokerage in La Plata County. This benefits our buyers because we share our new listings at weekly broker meetings, and typically visit new listings, keeping your needs in mind.
