INFORMATION FOR HOME BUYERS

Rebate Program

To explain my real estate services for my customers, I split my commission. This amount is the total compensation, which includes incentives. The average commission paid to the Buyers realtors here in Colorado is 3%, so on a 300K purchase, I would rebate $4500 back to your closing costs.  

To qualify for the rebate, please:

• Contact me and let me know the details. Sign the DEFINITIONS OF WORKING RELATIONSHIPS document. This is not a Contract.

• This document describes the different BROKERAGE RELATIONSHIPS offered in Colorado.

• Always let the Listing agent or New Home Builder know that I represent you.

• We must show property and write the contract for the purchase.

• Enter into an “Exclusive Right To Buy Contract”, see Note below and LEGAL CONSEQUENCES at the bottom of the page.

Our compensation and rebate is paid by the Seller at closing. Again, no cost to you as the Buyer. 
To keep our compensation, we ask the clients to do a drive-by of the property before we view the home.  Using the MLS system and the Buyer viewing the home from the outside, our clients earn their commission by reducing our time when a large majority of homes are ruled out by the client once they view the home when they drive up to it.

Note: Commission Rule E-35 states that “brokerage activities” occur when a broker elicits or accepts confidential information from a party concerning specific real estate needs, motivations or financial qualifications. Activities such as an open house, preliminary conversations or small talk concerning price range, location, property styles or responding to general factual questions about properties that have been advertised for sale or lease do not qualify as triggering “brokerage activities.”

The “Exclusive Right To Buy Contract” can be for as short of a period that is needed to elicit any confidential information, and restart when we put a contract onto a property.  This way if you desire to purchase without my assistance, you are free to do that. 

Pre-Qualify before shopping

Pre-Qualifying can be done over the phone, and usually in less than 30 minutes. The time spent will ensure that your mortgage payment will fit both your financial goals and set a ceiling on the houses you look at. Many lenders will have a wide selection of mortgage products to choose between to meet your payment needs. There are many ways to finance a new purchase. To actually qualify for a loan, you will have to complete all of the necessary paperwork with copies of records. Here are a few items that you will be asked for are for during pre-qualifying:

• All financial account balances and numbers
• Full names, Social security numbers
• Addresses for past two years
• Incomes Investments

Shopping For A New Home

Here is the best part, “Shopping For A New Home”. We will start from a customized search that I can perform from criteria that matches your requirements (size, area, price, bedrooms, etc…) and present you with a list of possible properties for us to go see. We will pre-view these homes and see if we are meeting your “wants” based on your new home criteria and financial criteria. If these criteria’s are being met, we need to get your house listed on the market so we can get you into a new home.

Buying Your New Home

Once again this is where it gets really fun. I enjoy this part, so let get going! It seems like every home has something unique about them, whether it’s the floor plan, or a really neat kitchen gadget, I always think, I want that in my next house. We will once again review the criteria of the homes we want to look at, financially, location, size, etc… and then start viewing these homes. To save time we will start by looking at these homes on paper and priorities the homes before we start looking. When it comes to writing an offer, I will always represent you and I negotiate your price. After the purchase, I will keep in touch through email and flyers, and show my gratitude for doing business with me. I strive to make my clients absolutely delighted and confident that they got a great deal.

Questions to Ask a Lender

1. Do you have a list of references?
2. What is your rate with "0" discount points?
3. How long can I lock in the rate at no cost?
4. What are your Closing Costs? (Quoted as a dollar amount)
5. Do those closing costs include the following?
   • Appraisal
   • Recording Fees
   • Origination Fee
   • Lender's Title Insurance
   • State and Local Recording Fees
   • Underwriting/Processing Fee
   • Document Preparation Fee
   • Home Owner's Association Fees
   • Escrows for taxes, insurance, and home owners fees (if applicable)
   • Credit Report
   • Survey
   • Title Closing Fees
   • Tax Service
   • Real Estate Taxes
   • Hazard Insurance
6. Can you fax me a good faith estimate of all costs?
7. What is the fee for an extended lock-in term?
8. How long will it take to process my loan and receive commitment for loan approval?
9. Will you be present the day of closing?
10. Private Mortgage Insurance Questions (only if down payment is less than 20%)
    • How much is my up-front PMI?
    • May up-front PMI be financed into my loan amount?
    • How much is my monthly PMI payment going to be?
      (Quoted as a $ amount and as a percentage to the loan amount)
    • Do you have an alternative loan program to circumvent the payment of PMI?
11. Are there any pre-payment penalties?

Home Warranty Programs

Several companies offer home warranty programs to buyers purchasing previously occupied homes. Generally, such warranty programs are available for under $500.00 (or more depending upon the additional available options), and they warrant the systems in the home for at least one year. The purpose of these programs is to give the buyers some peace of mind about purchasing a home where the systems and appliances may be relatively old.

The warranty typically covers the home's plumbing, heating, built-in appliances and electrical systems. Buyers should read the terms and conditions of the program they select carefully to determine what items are actually covered. Buyers should also determine any additional costs for service calls and deductibles.

For new construction, builders typically provide a warranty with the sale of the home. Buyers should inquire about any warranties available and review carefully the terms and conditions of such warranties. In addition, the systems in a newly constructed home may be under a manufacturer's warranty when the home is purchased by the buyer.

Home Warranty Companies

American Home Shield
www.americanhomeshield.com

Blue Ribbon Home Warranty, Inc.
www.blueribbonhomewarranty.com

Legal Consequences

Most of the standard forms adopted by the Colorado Real Estate Commission include this statement: "THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING." 
Colorado licensed real estate agents are not attorneys, but under certain conditions they have been granted a limited right to practice law.   One of those conditions states that they must recommend the use of attorneys by their clients in real estate transactions.  The standard forms include this statement to assist the agents in meeting this requirement.