BUYING YOUR SF HOME AGENT BACKGROUND Prepared by: Todd Montgomery DRE: 01875716 Bridgepointe Group Senior Real Estate Adviser 415.203.6022 todd@bpgroupsv.com QUALIFICATIONS • First Time Home Buyer Specialist • New Construction and Loft Expert • Residential condo specialist • Financing expert PERSONAL • SF Association Realtors, Member • 16 year San Francisco Resident • Former Accenture Consultant • Tech sales and marketing for 20yrs. ACHIEVEMENTS • Top Producer 2010 • #1 sales agent One Hawthorne Dst.9 • Sales Team has over 15 years •Sold 12mm in 2010 1 BUYING PROCESS WHAT IS INVOLVED IN BUYING A HOME? • Select your Realtor • Remove contingencies • Establish a working relationship • Loan, appraisal, pest, condo docs, property inspection • Sign Agency Relationship • Financing • Evaluate your needs and resources • Final Walk-through inspection • Obtain financing pre-approval • Loan conditions are cleared • View and select a property • Loan Funded • Structure an effective offer • On public record as legal owner • Negotiate the terms of the contract • Close Escrow • Ratify the contract • Keys, fobs, clickers will be released • Open escrow 2 OUR PROFESSIONAL RELATIONSHIP MY COMMITMENT TO YOU • I make the process of home buying as efficient and stress free as possible - Let me do the leg work for you • As your buyer’s agent, I will preview anywhere from 10-30 different properties each week looking for the right fit for you • Through an exceptional knowledge of the market, I am able to negotiate the best deal for you OUR RELATIONSHIP • I make a commitment to you to act in your best interests working diligently to find you the best fit for your needs • I bring to the table many years of highly successful experience in the Real Estate industry and expert area, community, construction, social, and business knowledge • My service does not cost you anything. I am compensated by the seller or developer of the home you buy • I ask for your commitment to exclusively work with me in the search for your new home. I will ask you to sign a Buyer Broker Agreement and Disclosure of Agency Relationship. 3 SELECTING THE RIGHT HOME • Factors In Comparing Properties Multi-unit, Single Family, Condo, Loft, TIC • Different Neighborhoods • Property Features Fireplace, View, W/D, Remodeled Kitchen/Bath, Custom Closets Light, Floorplan, Orientation • Square Footage • Outdoor Space • Parking: Deeded, Valet, Leased • Monthly Costs • Storage: Requirements • Amenities Doorman, Concierge, Fitness Center, Security, Pool, Media Room, BBQ, Club Room, Common Area, Guest Suite Water, Garbage, Sewer, Outside Management, Fire And Hazard Insurance, Window Washing • Proximity To Public Transportation • Proximity To Lifestyle Attractions Restaurants, Theaters, Bars, Museums, or Parks 4 LOAN PROCESS • Provide lender referral • You will need to complete a loan application • You will be asked for supporting documentation and credit will be ran • You will be pre-approved for a purchase price • After you have a ratified contract, your loan will be submitted for approval • The loan is approved *There may be conditions for you to meet • Loan documents will be drawn and sent to the escrow officer • You will sign loan documents • The loan is funded and then closed 5 MORTGAGE PAYMENT COMPONENTS Your monthly payment has many components: You should also know about: • Non-conforming, Jumbo conforming, and Conforming • FHA Loans • Principle • SF Projects currently FHA approved • Interest • Information about Loan Types • Taxes (1.141% of purchase price paid monthly or semi- • Current Tax Credits annually paid Dec 10th and April 10th) • Hazard Insurance • PMI(private mortgage insurance) 6 WHO PAYS WHAT? THE SELLER USUALLY PAYS FOR THE FOLLOWING: • Judgments, liens, etc against the seller • Recording charges • Tax pro-ration • Unpaid homeowners dues • Bonds or assessments • Delinquent taxes • Notary fees • Real estate commissions • Document preparation fee for the deed • Document transfer and city transfer taxes • Payoff of all the loans in the sellers name THE BUYER USUALLY PAYS FOR THE FOLLOWING: • Title insurance premiums • Escrow fee • Document preparation • Notary fees • Recording charges for all documents in buyers name • Tax pro-ration • Homeowners transfer fee • New loan charges • Beneficiary statement fee • Inspection fees • Home warranty 7 THE INSPECTION PROCESS • The condition of the property will be evaluated by a third party • Pest inspection can be done • There will be a contractor inspection • There will be a geological inspection completed • Structural Engineer report can also be ordered 8 THE ESCROW • Escrow is a neutral third party • It is a legal procedure for handling the transaction • Opened after mutual acceptance of the purchase offer • Preliminary Title report will be ordered • Title insurance will be ordered to ensure free and clear title with no mortgage encumbrances 9 PLEDGE OF PERFORMANCE OUR COMMITMENT TO YOU Your needs will be heard and together we will focus on finding you the best possible home to meet those needs. I will endeavor to limit your liability and make sure you are prepared for your new home purchase. I will negotiate the best possible deal for you. I will keep in touch with you regularly. 10