BUYER’S GUIDE

Your Exclusive Buyer’s Agent

Before working with a real estate Agent,

you should know that the duties of a bro-

ker depend on whom the broker repre-

sents. There are 3 ways in which you can

be represented during the purchase trans-

action. Our goal is to be your Exclusive

Buyer’s Agent, in order to assist you in

making informed decisions throughout the

entire home buying process.

- GROUP WATSON

The Wise Choice

You should enter into a written agree-

ment with the Agent that clearly estab-

lishes all parties’ obligations. The agree-

ment should state how and by whom

the Agent will be paid. You have the

right to choose the type of representa-

tion, if any, you wish to receive. Your

payment of a fee to a broker does not

necessarily establish that the broker rep-

resents you. If you have any questions

regarding the duties and responsibilities

of the broker, you should resolve those

questions before proceeding.

The Agent Represents the Buyer

(Win for BUYER/Win for SELLER)

The Agent becomes the buyer’s agent by

entering into an agreement to represent

the buyer, called a Buyer/Tenant Repre-

sentation Agreement. A buyer’s agent can

assist the owner, but does not represent

the owner and must place the interests of

the buyer first. The owner should not tell a

buyer’s agent anything the owner would

not want the buyer to know because a

buyer’s agent must disclose to the buyer

any material information known by the

Agent.

The Agent Represents the Seller

(Win for SELLER only)

The Agent becomes the owner’s agent by entering into an agreement with the owner,

called a Listing Agreement. A Listing Agent can assist the buyer, but does not represent

the buyer and must place the interests of the owner first. The buyer should not tell the

owner’s agent anything the buyer would not want the owner to know because an own-

er’s agent must disclose to the owner any material information known by the Agent.

The Agent Acts as an Intermediary

(Win for BUYER/Win for SELLER)

If the home you purchase is listed with our

team, then your buyer’s agent will be as-

signed to represent you in an intermediary

capacity. Still bound by the duty of confi-

dentiality, your agent cannot disclose any

of your information to the seller’s agent.

This scenario happens when one Broker

represents both parties in a real estate

transaction. This is why agents are

“assigned” to represent each party exclu-

sively. Each party must acknowledge this

relationship in writing.

Our Goal is to

Save You Time

and Money!

What We Can Help You Shop For:

Whether it is your first home or your fifth, a retirement home, or an investment property;

we will make your home-buying experience fun and exciting. We can find the perfect

home for you, with the least amount of hassle. GroupWatson is devoted to using our ex-

pertise and the full scope of resources we have available to us, to achieve these results.

Resale (Pre-Owned, Existing Homes)

The advantages of having an Agent represent you in the purchase of a resale home are many.

Having a personal real estate advocate protecting your best interest is one of the most im-

portant. We have extensive knowledge of the market and can find the right home by evaluat-

ing your wants and needs, based on our initial consultation with you. You will want a profes-

sional whose expertise is in negotiating terms and writing a contract that benefits you. We will

also assist with the closing and coordinate all of the moving parts that surround a purchase

transaction.

For Sale By Owner (FSBO, Existing Homes)

We have worked with homeowners who wished to sell their homes themselves. In fact, a num-

ber of our listings have been individuals who tried unsuccessfully to sell their homes themselves.

We have knowledge of all FSBO properties in the area and will be happy to arrange a showing

for you. In this transaction, you will continue to be represented by us, according to a Buyer’s

Representation Agreement. It is the Seller who loses, as they complete the transaction with no

professional representation.

New Construction (Builder—No Prior Owner)

Buying a new home can be more difficult and time consuming than buying a resale home.

Many buyers are not aware that the sales representatives at new construction sales centers

work for the builder, and do not represent the buyer’s best interests. Their job is to make the

builder as much money as possible. It is very important that your interests be professionally rep-

resented when you are entering into a contract for a semi-custom or “build-to-suit” home.

These transactions are complex and the contract details must be exact in order to pro-

tect you and ensure that you get exactly the home you want!

STEP 1

Find A Realtor You Can Trust

STEP 1 1/2

Obtain Pre-Approval From Lender

Obtain Pre-Approval From Lender

Complete Mortgage Application

Credit Report

Verification

Define Your Search Criteria

Consult with Realtor

Realtor Locates Properties

View Properties with Realtor

Realtor Writes and Submits Offer

Deposit Earnest Money in

Escrow

Deliver Option Fee to Seller

Realtor Negotiates Counter Offer

Contract Accepted by all Parties

Contract is Executed

Home and Termite Inspections

Review Inspection Report

Negotiate Repairs

Lender Orders Appraisal

Title Orders Survey, If Needed

Choose Home Insurance

Choose Home Warranty

Arrange for Utilities Switch

(at least 3 days prior to Closing)

Money Needed Prior To Closing

Credit Report

Earnest Money

Option Fee

Inspection Fee

Appraisal

Take Possession of Your

New Home!

Attend Closing

Tasks and Timeframes

We will go through several steps together while finding and pur-

chasing your next home. Our goal is to “do” for you, as a part of

our commitment to customer service. However, there are tasks that will require

some work from you. We will keep you well-informed about every aspect of the

transaction and notify you when there are steps that require your involvement.

The flow chart on the previous page shows the process, from Step 1 to taking pos-

session of your new home. We have broken each step down into the following sec-

tions...

Task:

Obtain Pre-Approval from

Lender

Time Frame:

Before We Begin Searching

The “other” first step in buying a home (besides

choosing the right Realtor) is choosing a lender

and obtaining a pre-approval. This provides you

and your Realtor the information needed to de-

termine how much home you can afford and

what type of monthly payment you are comfort-

able making. Many Sellers do not consider of-

fers from buyers that have not been pre-

approved for financing. We work with several

lenders who have proven to offer exceptional

service and competitive rates. Let us know if

you would like a list of lenders to choose from.

Three Elements are Crucial to the

Purchase of a Home:

Down Payment

Closing Costs

Loan

Qualification

SO YOU ARE

READY TO BUY

A NEW HOME! We would like to provide you with information up-front, to prepare you for your search.

It is important that you are aware of the costs associated with purchasing your home.

FINANCING

The single most important thing for

you to do before beginning your

search for a new home is to select

and meet with a Lender. There are

several reasons you must do this

before shopping for a home:

1. It determines your monthly

payment.

2. It determines your purchase

price range and loan type.

3. It determines how much is

needed for down payment and

closing costs.

4. It helps your Agent negotiate,

on your behalf, from a stronger

position.

Costs Prior to Closing

You will need to write 3 checks prior to closing

on your new home. All costs are averages

and will vary with price, size and unique fea-

tures of the property.

Earnest Money is payable to the title com-

pany that is handling the transaction. This will

be negotiated in the purchase contract. It is

then credited towards the sale price at clos-

ing. (typically, 1% of sales price)

Home Inspection is payable directly to the

Inspector, at the time of the inspection. In-

spections take place during the Option Peri-

od, as determined in the purchase contract.

($300-$500; pool & spa inspections are extra)

Appraisal is payable to the Lender, once the

Option Period is over. (approx. $500)

If you have trouble coming up with the down payment, here are some tips to ease the

burden:

Start Early. Begin saving for a down payment as soon as possible. After a few years, it adds up.

Pick the Right Loan. Fannie Mae loans only require 3.5% down, provided that you have good

credit.

Convert Stocks. Consider selling stock for the down payment. The housing market is often a

better investment.

Sell an asset. If you have “toys” such as a boat, extra car, or other asset, consider selling it for

the down payment.

Money from Relatives. Today lenders will allow you to use money from relatives as the down

payment, if it is provided as a gift. Check with your lender for any possible restrictions.

No matter what type of home you purchase, you will have closing costs associated

with the transaction. In most cases, these costs are paid at the closing table, however,

in some instances, they can be rolled into the mortgage. These costs can include, but

are not limited to:

Origination Fees Appraisal

Title Insurance Document Preparation

Attorneys Fees Loan Underwriting Fees

For conventional financing, Lenders usually limit the monthly payment to 28% of your

gross monthly income, but exceptions can be made depending on individual circum-

stances. The amount of debt you currently have could also affect the outcome. You

must contact a Lender, prior to making an offer. This gives you an opportunity to re-

solve any issues that may arise...without the pressure of contract deadlines. Besides, be-

ing “Pre-Approved” for a loan puts you in the strongest position with Sellers.

Upon acceptance and execution of the purchase contract,

you should arrange to have a home inspection performed.

This inspection appointment can be set by your Agent, and

must be as soon as possible. The Option Period of the con-

tract is the time to have any inspections done, so if some-

thing is discovered during inspections that you cannot live

with (and the Seller is not willing to repair or replace) you

have the ability to terminate the contract and receive a full

refund of the Earnest Money.

It is important to remember that all homes will have a

list of minor repairs, however, we focus on structural

or mechanical defects, as well as any safety or code

issues.

The inspection cost depends on the size and fea-

tures of the home, but usually runs between $300-

$500 plus additional fees for pools, spas, and termite

inspections - due at the time of inspection.

Task:

Inspection

Time Frame:

Upon Execution of Contract

Task:

Repair Requests -

Contract Amendment

Time Frame:

Agreement of Repairs -

Upon Execution of Contract

Amendment

After the inspection, a contract amend-

ment will address any items discovered

that you would like the Seller to repair or

replace for you. Your Agent will negotiate

the repairs you want completed with the

Seller on your behalf. Once an agreement

on repairs has been reached, you will for-

feit your right to any further repairs on the

property.

A requirement to close on your new home

will be homeowners hazard insurance.

Once you have chosen your insurance car-

rier of choice, notify your lender and supply

them the contact information.

You will need to transfer the utilities to

your name before moving into your

new home. In order to save money on

standard “hook-up” fees, call ahead

and ask the utility companies to transfer

the billing to your name, upon cancel-

lation by the Seller. Some utility provid-

ers will give discounts on deposits if you

send a letter of credit from your previ-

ous utility companies as well. We have

included a list of local utility companies

and their contact information, for your

convenience. If you need further infor-

mation, please call us; we are here to

help you!

Task:

Obtain Homeowners

Insurance

Time Frame:

Once Option Period is Over

Task:

Transfer Utilities / Schedule

Service

Time Frame:

Two Weeks Prior To Close

**Remember, you will receive a discount by

having your car insurance and homeowner’s

insurance with the same company (bundled

coverage). Make sure you ask insurance

agent for details. We recommend that you

obtain at least 2-3 estimates from different

agents and then make a decision. We have

a list of preferred vendors that are available

to our clients, in the event they do not already

have an insurance agent in mind.

Task:

Ensure Funds are Availa-

ble in Bank Account

Time Frame:

One Week Prior to Close

Obtaining “Pre-Approval” for a home loan is just the first step in funding your loan

at closing. If you plan to use monies from stocks or 401(k) retirement plans as a

down payment or supplement on your down payment, the money from the sale of

these funds must be available in the form of cash in your bank account prior to

closing. Because a withdrawal from a 401(k) can be a complicated and time-

consuming process, we advise you to begin the withdrawal of these funds as soon

as possible.

Check with your lender, regarding stipulations for a successful loan approval. On

average, most home mortgage loans go through a quality control check. The

lender does this to ensure that the borrower’s financial status has had no change

since the approval of the loan was granted. No matter how good your financial

situation, lenders strongly advise against changing your financial status from the

date of your loan approval. This includes, but is not limited to, applying for new

credit, gaining new credit, purchasing appliances, furniture, cars, credit disputes,

large cash deposits, changing jobs or quitting your job. An appropriate time to

make any of the above financial changes would be after the closing and funding

of your new home. If you have any questions about your purchase decisions while

you are waiting to close on your new home, please consult your mortgage lender

for advice.

Task:

Closing Disclosure

Time Frame:

3 Days Prior to Closing

Task:

Closing

Time Frame:

According to Contractual

Terms

The closing will take approximately one

hour. The escrow agent will go over all

documents with you, explaining the pur-

pose of each one. Your Agent will attend

closing with you, and sometimes the lender

is present, as well. You will receive the keys

to your new home, at the time it “funds”.

The exception to this would be if a Seller’s

Temporary Lease was included in the pur-

chase contract. Then the keys would be

turned over at the end of the lease term.

The closing attorney will complete the

Closing Disclosure 3 days prior to closing.

This document tells you how much money

you must bring to closing. You may either

wire the funds from your account or bring

a cashier’s check to closing.

MOVING TIPS...

Preparation and organization are key in determining whether or

not your move will be stress-free. Follow the steps below to en-

sure that your move will be smooth:

3 Weeks Before the Move

□ Make arrangements to hire a mover or rent a truck.

□ Make babysitting and/or pet care arrangements for moving day.

□ Organize all move-related documents in one place.

2 Weeks Before the Move (once the appraisal in clear)

□ File a change of address form at the post office.

□ Change the address on all newspaper and magazine subscriptions.

□ Arrange for transfer of all medical, dental and school records.

□ Transfer medical, fire and auto insurance.

□ Cancel or transfer utilities (water, gas/electric, phone, TV, cable/

satellite internet.

□ Check with your provider about cell phone service in your new area.

□ Transfer prescriptions to a pharmacy near your new location.

□ Transfer bank accounts.

□ Collect or purchase all packing supplies; boxes, wrapping paper, bub-

ble wrap, labels, markers, box cutters, or scissors and packing tape.

□ Pack up items in garage, attic and storage areas.

□ Confirm arrangements with movers or truck rental places.

1 Week Before the Move

□ Begin packing boxes, labeling each as you fill it.

□ Empty, defrost and clean refrigerator, freezer and stove.

□ Return all rented movies, library books, video games, etc.

□ Pick up anything outstanding, like dry cleaning, prescriptions, etc.

1 Day Before the Move

□ Do a final check of closets, cabinets and drawers.

□ Make sure you have enough cash on hand for the move.

□ Take out all trash.

□ Fully-charge all cell phones.

□ Touch base with movers or the truck rental place for final confirma-

tion or arrangements.

The Day of the Move

□ Exchange contact information with the movers in case you need to

get in touch with them while in-route. Include your old address, cell

phone number and directions to the new location.

□ Keep jewelry and other valuables with you in a box that you move

yourself.

□ Prepare a box of supplies that you will need right away on move day,

such as: cleaning supplies, snacks & beverages, toiletries, bath and

bedding items, trash bags, disposable dishes, pet food, cell phone

chargers, prescriptions, eyeglasses, change of clothing, etc...

□ Do a final check before locking the doors. Confirm that you have

turned off the furnace/air conditioner, lawn sprinklers, and light

switches.

□ Leave keys, garage door openers and manuals on kitchen counter.