The Lucas Group Home Buyer Handbook

7/30/2019 The Lucas Group Home Buyer Handbook

1/26

Home BuyerHome BuyerHome BuyerHandbookHandbookHandbook

Preparedby

KellerWilliamsRealtyEastValley


2/26

Thishandbookdetailshowwewillachieveourmutualgoal tofindyouahomeat

thebestvalueintheshortestamountoftimewiththeleastamountofinconvenience.

Section1 ChoosetherightREALTOR

Section2 Obtainfinancingforyournewhome

Section3 Findtherighthomethroughyourhomesearch

Section4 Learnaboutthehomebuyingprocess

PleasereadthishandbookasIamconfidentthatitwillprovideyouwithtonsof

greatinformation. Feelfreetocallusifyouhaveanyquestionsorconcerns.

Cordially,

TheLUCASGroup@KellerWilliamsRealtyEastValley

Phone:(480)5988800Fax:(480)2236459

[email protected]

2077EWarnerRd,Suite110Tempe,Arizona85284


3/26

Werepresentyouduringthebuyingprocess.Wetakeyouthroughthemazeofthehomebuyingprocessidentifying

homeswhich

meet

your

needs,

providing

you

with

comparable

sales

data,

negotiatingthepurchaseonyourbehalf,andadvisingyouthroughthe

escrow/closingprocess.

Ourrepresentationdoesntcostyouapenny.Whenwehelpyoubuyyourhome,wearepaidbytheseller.

Manymore

home

choices.

Atanytime,theremaybethousandsofhomesfor

saleintheValley,asmallpercentageofwhichyou

canreadaboutintheclassifiedsectionofyour

newspaper. Some,youcanseeinrealestate

magazinesorevenontheInternet. Butifyou

wanttohaveaccesstoallthehomesforsaleinthe

Valley,youneedtheservicesofaRealtor.Wecan

showyouanyhomelistedforsalethroughthe

MultipleListingService(MLS)evenifitslisted

withanothercompanyandwecanshowyou

homebuildersnewlyconstructedhomesaswell.

Approximately90%ofthehomesforsalearelistedbyagentsandarenot

availabletoyouunlessyouworkwithanagent.

Knowledgeof

the

area.

Weliveandworkinthearea;weknowrealestatehomevaluesinour

marketplace,andwecanprovideyouwithuptodatesalesdataonhomes

similartothehomesyouareinterestedinandofferyouadviceonwhich

homesmaybethebestinvestment.

Why Work With A REALTOR


4/26

Workingwithoneagentmakesthe

homebuying

process

efficient,

facilitates

clearcommunicationofyourwants

andneeds,andsavesyoutime.

Allagentshaveaccesstothesame

informationthrough

the

Multiple

ListingService;youmayget

duplicateinformationifworking

withmorethanoneagent.

Wecanshowyouanyproperty. If

youshouldseeanadvertisementin

thepaper,

asign

in

the

yard,

or

want

newconstruction,wewillgetyoualltheinformationyouneed

regardlessofthelistingcompany.

Wecanprovideyouwiththerepresentationyouneedanddeserve

whenbuyingaNEWHOME.

The

relationship

we

build

together

allows

us

to

better

understand

andmeetyourneedsduringthehomebuyingprocess.

Workingtogetherallowsustoworkinyourbestinterestandfind

youthehomeofyourdreams.

Working With A REALTOR


5/26

Asabuyersagent,werepresentyouandyourinterests

inthepurchaseofyourhome. Aspartofamutual

agreement,youcanelecttocreateaBuyerBroker

relationshipwithusthatwillentitleyoutothe

fiduciaryclientlevelservicesthatinclude:

LoyaltyWewillactinyourbestinterestandfollowyourlawfulinstructions

DisclosureWewilldiscloseallfactsknowntousthatmay

adverselyaffectthevalueoftheproperty

ConfidentialityConfidentiality of any discussions, facts, or

information shouldnotbe revealed to others

but does not preclude our responsibility of

fairness and honesty in dealings with all

parties

AccountingindealingsReportingofanyofyourmoneyplacedinthehandsofescroworothers

(earnestmoneydeposit,etc.)

ReasonableskillandcareArrivingatareasonablepurchasepriceandadvisingyouofmaterialfacts

relatingtothepurchaseofyourhome

What Is A Buyers Agent


6/26

Wewillneverrunoutoftimeforyou.Youwillhaveateamofpeopleworkingforyou. Eachofusisseparately

responsibleforaspecificprocessinthebuyingofyourhome,andtogetherour

combinedeffortsadduptosuperiorcustomerservice.

Additionally,inanattempttomaketheexperienceofbuyingahomeaseasyas

possible,wehavecreatedtheLUCASAlliance ateamofvendorstohelpyou

throughyourrealestatetransactionalltogetherinonelocation.creatinga

onestopshoppingexperience. OurAllianceismadeupoflenders,inspectors,

escrowcompanies,painters,electricians, handymen,cleaningservices,etc.

TheLoneAgent vs. TheLUCASGroup

MostAgents Undertaketojuggleallthesetasksby

himselforherself Eventually run up against the limits of

time,energyandmoney

Fewerhomessoldmeanslimitedcashflow

toinvestbackintotheirbusiness

Limitedtimemeanslesstimetospendwith

you

TheLUCASGroup Yougetawholeteamofprofessionals

workingforyouforthesamepriceas1agent. Weneverrunoutoftimeforyoubecause

eachofusisseparatelyresponsiblefora

specificprocessinthesellingorbuyingof

yourhome.

Ourcombinedeffortsadduptosuperior

customerservice.

Computers

Negotiating

Sales

Service Secretarial

Marketing

Neg

otiate

Computers

Sales

Secretarial

MarketingHELP!

Service

CreatingaHassleFreeRealEstateExperience

Unique Team System


7/26

Hereswhatourravingfan

clubmembers

are

saying:

Afterabadexperiencewithanotherrealestateagent,we

foundsellingandbuyingourhomethroughTheLUCAS

Grouptobeaveryeasyandexcitingexperience.

WeareverythankfulforTheLUCASGroup.

GeorgeandGilmaMoncada

TheLUCASGroupsurpassedourexpectationsandmadesellingourhomealowstresssituation. Wewouldreferthemtoanyone.

DwaineandKathyBrayIboughtahomeusingTheLUCASGroupasmyagent.

Theirknowledge,professionalismandcustomerservicewasunbelievable.

RobinRotz

Jeffdidaterrificjobpreparingusforthehomesaleprocess.Thankstohim,wedidnthave anysurprises. Themarketingstrategyisacompletepackage.Itseemedeveryoneknewourhomewasonthemarket. Wehad6showingsthefirstweekend

ourhomewentonthemarket.Jeffwasveryupfrontabout thecostsandexpectationsforthesaleofourhome. Erikawasgreattoo! Shekeptusinformedthroughoutthesaleprocess. Ourquestions

werealwaysansweredveryquickly. Thankstoallofyou! Weloveournewhome.SteveandDianeHeath

WhatcanwesayotherthanyourgroupistheTOPS

LynnAnnHomnickandDonParkerSellingmyhomewithTheLUCASGroupwasmy

bestrealestateexperiencein30years.DonPeterson

WhenIwantedtobuyahome,Iknewthattherewasonlyoneplacetogo,

TheLUCASGroup. ItoldthemwhatIwantedandtheyfound

theperfecthouse.Theykeptmeinformedeverydayandmade

theentire situationfun. Bestofall,Ihavemadesome

wonderfulnewfriends.Sodoyourselfafavorandhireyourself

aLUCASandgetahomeandafriend.

LizMcHugh

WeWouldLovetoHaveYouJointheClub

The LUCAS Groupies


8/26

Inanattempttomaketheexperience

ofbuying

ahome

as

easy

as

possible,

wehavecreatedtheLUCASAlliance

Ateamofvendorstohelp

youthroughyourrealestate

transactionalltogetheratonelocation.creating

aonestopshopping

experience.

OurAllianceismadeupof:Lenders

Inspectors

Repairpeople

Escrowcompanies

Painters

Electricians

Handymen

Cleaningservice

Landscapersandmore


One Stop Concept


9/26

Oneofthemostimportantinitial

stepsin

the

home

buying

process

istoselectandprequalifywith

amortgagelender.

Byprequalifyingwithalender,youwill

beable

to

determine

the

monthly

payments,requireddownpayments,and

maximumloanamountthatwillbe

comfortableforyou.

Prequalificationwilltakeaboutfifteen

minutesandcanbedoneinpersonoronthephone.

Thenextstepisgettingapreapproval.Alenderpreapprovesyouby

orderingacreditreportandverifyingtheinformationreceivedfrom

youduringtheprequalification.

Havingapreapprovalletterfromalenderallowsyoutoconfidently

moveforwardwiththepurchaseofahome.

Italsohasthebenefitofputtingyouinabetternegotiatingposition

withsellersespeciallyifyou arecompetingwithmultipleoffers.

Financing Information


10/26

1.) PictureIDWithProofofSocialSecurity#

2.) ResidenceAddresses Past2Years

3.) NamesandAddressesofEmployers Past2yrs

4.) W2s(2Years)andCurrentCheckStub

5.) Names,Addresses,AccountNumbers,andBalancesofallChecking

andSavingsAccountsLast2MonthsofBankStatements

6.) Names,Addresses,AccountNumbers,BalancesandMonthly

PaymentsofallOpenLoans

7.) Names,AccountNumbers,BalancesandMonthlyPaymentsofall

CreditCards

8.) AddressesofOtherRealEstateOwned

9.) LoanInformationonOtherRealEstateOwned

10.) FullDivorceDecreeifApplicable

11.) CertificateofEligibilityandDD214s(V.A.only)

12.) MoneyforCreditReportandAppraisal

Info For Loan Application


11/26

TheProblem:

Usuallyits

the

real

estate

agent

who

picks

out

the

homes

you

willviewbut,unfortunately,yourenotinterestedin 90%ofthe

homesyoureshown. Thiswasteseveryonestime.

TheSolution:

When

you

sign

up

with

the

LUCAS

Dream

Home

Finder

Service,wewillenteryourcriteriaforthehomeyouarelookingforinour

computer.Onaregularbasisthecomputerupdatesusonnewly

listedthatmatchyourneeds.Wewill

thensendthisinformationontoyou,

andyouchoosewhetherornotyou

wanttoseethenewlistings. This

way,insteadofuspickingouthomes

whichmaynotinterestyou,youcan

pickoutthehomesyouwanttoview.

Youreceiveregular,uptodate

emailsonallnewlylistedhomes

whichmatchyourcriteria,soyouwontmissoutonyourdreamhome.Thisserviceisabsolutely

freeandobligatesyoutonothing.


Dream Home Finder Service


12/26

TheLucasGroupworkswithnewhome

builders

and

obtains

all

the

information

you

needtomakebuyingdecisions.

Themostimportantfactoristhatyougettherepresentationyoudeserve,sothat

yourhomebuying choiceistherightone.

Toaccomplish

this,

arepresentative

from

The

Lucas

group

willneedtoaccompanyyoutothenewhomesite thefirst

timeyouviewtheproperty.

Important:Ifwearenotpresentforthefirstvisit,youwillloseyourrighttorepresentation.

Rememberbuilderrepresentativesworkingatthemodel

homesworkforthebuilderandnotforyou!

YoudonotpaymoremoneyifyouworkthroughaRealtor.Youwillstillbeeligibleforallbuilderincentives.

Ourrepresentationwillsaveyoumoneybyhelpingyouavoidcostlymistakes.

What About New Homes



13/26

1. Giveusasmuchinformationupfrontasyoucanonyourwants,needs,kids,financialpicture,likes,

dislikes,musthavesandwonthaves.

2. Comeandlookduringtheweekifpossiblewecangetsomuchmoredone(onweekends,thesellers

andtheirkidsarehome,relativesvisit,TVsareon,buddiesareoverwatchingthegame,teensare

sleepinginandSaturdayandSundaymorningsarenonworkingtimes).

3. Bringmeasurementsofbigfurnitureitems,furniturefabricswatches,etc. PLEASEconsider the possi

bilityofputtingthe10Germantrunkintherecroominsteadofthelivingroomifeverythingelse

aboutthehouseisperfect.

4. Talkandtalkaswelookaround. Reallyletusknowwhatworksandwhatdoesnt,whatconcernsyou,

whatquestionsyouhave,expressyourjoyandyourfears. Buyingisasmuchemotionaslogic. Please

beasemotionalasyouneedtobetogetwhatyoureallywant.

5. Leteveryoneknow(friends,otheragents,etc.)thatweareyourBuyersAgent. Givethemallofour

phonenumberssotheycancallusiftheyknowoforseesomethingyoumightlike. Thebestthing

aboutworkingwithoneagentisyourBuyersAgentwillhelpyoufindthebesthomeforyou,rather

thantrytosellyoubeforesomeoneelsedoes.6. Listentoalloftheplusesandminusesthateveryoneyouknowhasaboutthedifferentareas,schools,

neighborhoodsbutdontbeoverinfluenced. (Everyonethinkstheiralmamateristhebest). Lets

checkoutthefactsbeforewedecide. Yourneedsandthumbprintsareprobablydifferentthan

everyoneelsesTheLucasGroupwilltailoroursearchforyouandyourfamily.

7. Schedulecomingintolookasfarinadvanceaspossible(unlessyourerenting,thennomorethan60

daysoutisenough). Ifyouhavetosellfirsttherebeforeyoubuy,letstalk! Wehateforyoutocome

in,findtheperfecthouse,andnotbeabletogetitbecauseofa contingency. Timingishardwith

sellingandbuying,butwecanmakeitwork!TheLucasGroupoffersaslidingcommissionstructureif

youbuyandsellthroughus.Makesuretomentionittous,itwillsaveyoumoney!!8.

Be

flexible

about

aproperties

conditiona

house

needing

paint

and

carpet

could

be

the

buy

of

the

yearandthepaintandcarpetcouldberedonebeforeyoumovein. Thehomethatisbeautifully

decoratedmaylookworsethantheinneedofhouseoncealloftheorientalrugsandpaintingsare

gonewiththesellertoFlorida.

9. Doyouknowwhatyourtrampolineis? Basically,itsyourhotbutton,youmusthaveoneitcouldbe

hisworkshop,herOwnerssuitesoakingbathtuborayardthatisflatenoughforthetrampoline.

Wewillhelpyoufindthatfeaturewhichyoucannotlivewithout,butpleasedonotbuythewrong

houseinthewrongneighborhoodbecauseofyour15yearold,kingsizebedroomsetoradiningroom

tablethatseats18ifyounolongergivelargedinnerparties. Again,flexibilitywillopenmoreoptions.

10. Stayloose,lightandcomfortable. Trynottogetcaughtuponsmallstuffbutfocusonthebigpicture.

Wearcomfortableclothesandshoes,eatheartyandtakeamentalbreakatnightGotoafunnymovie,

readcomics,whateversowellhavemoretolaughaboutthansomeofthedecoratingwellsee. Its

hardworklookingathomesforseveralhoursaday!

Insummary,buyingisaprocessanditmaybedifferentinArizona.Orifyouareafirsttimebuyerlet

usbeyourguide. Thefirstdayyourehereyoullbecomparingorangeswhereyoulivewiththe

appleswehavehere. Thenthesecondday,ourapplesstarttolookbetterandyoullbeintothe

comparingapplesmode. Thethirdday,wefindthebestappleinthebunchandmakeityours!

How To Be A Good Buyer


14/26

Buyer selects The LucasGroup to help buy home

Buyer pre-approved byMortgage Company

Buyer views homes withThe Lucas Group agent

Buyer selects homeand submits contract

Seller reviews and maymake a counteroffer

Seller p repares andmarkets home

Seller selects Realtorto help sell home

Inspections completedand info sent to parties

Documents recorded andescrow closed

Buyer and seller agree toterms and have a cont ract

Buyer requests repairs tobe made by the seller

Seller makes repairsthat are agreed upon

Appraisal ordered by andcompleted for the lender

Loan docs prepared bylender and sent to escrow Buyer receives final loanapproval from lender Buyer selects insuranceand warranty companies

Closing documentscompiled by title company

Buyer completes thefinal walk thru

Buyer deposits requiredfunds at title company

Lender funds loan andsends funds to escrow

Title company ensures allcontract conditions met

Signed loan docs returnedto lender for review

Escrow opened andtitle report ordered

Af ter recording conf irmedtitle co. disburses funds

Buyer receives keysfrom Realtor

Separate appointment set:Buyer/Seller sign docs

Final documents sent tointerested partiesCongratulations!

The Home Buying Process


15/26

Mosthomebuyersfeelthatoncethey

havefound

ahome

that

the

process

of

isover. Thisisfarfromthetruth.

DuringthesecondhalfoftheprocessiswhereThe

LUCASGroupsexpertisereallyshines.Wehaveyears

ofexperience

in

negotiating

contracts

and

transacting

escrows.Wewillbeworkingdiligentlywithyouandbehindthescenestoovercomeanyissuesthatariseandto

ensurethatyouhaveasmoothandpleasantrealestate

transaction.

Our Representation


16/26

Communicationisanintegral

partof

our

commitment

to

you.

Wewillbecallingyouatleastonceaweekto

keepyouuptodateaboutyourtransaction.

Onceyour

home

goesundercontract,

oneofour

transaction

coordinatorswill

handleallthedetails.

Ifyoushouldeverhaveanyquestionsor

concerns,someoneatTheLucasGroup

willalwaysbeavailableforyou.

Thisisoneofthegreatbenefitsof

ourUniqueTeamSystem.


Regular Communications


17/26

Oneofthemainreasonstousea

Realtoris

to

reduce

your

risk.

Theworldhasbecomemoreand

morelitigiousandtherealestate

transactionhasbecomemuchmore

complicatedovertheyears. The

depthofknowledgeandattention

tolegal detailsneededtoproperlynegotiateanofferandseeacontract

throughtheduediligenceoftheescrowperiodisquite

staggering.

Wetakecareofthedetails.

Thereareliterallyhundredsofactionitems

thatwetakeonyourbehalftocloseyour

transaction.Wewilltrackthesemanydetails

ofyourescrowwithanInternetbased

TransactionManagementSystem.

Weuploadalldocumentsandpertinentinfor

mationtothisplatform.Weareoneoftheveryfewbrokeragesthatusesthistypeof

system. Ithelpsustobettertrackeachtransaction,decrease

mistakesandreducerisk.


Risk Management


18/26

What isan escrow?Anescrow is theprocesswhereinyouthebuyer and the seller(s) deposit funds, documents, and

written instructionswithaneutral thirdpartyuntil certain

conditions are fulfilled. In Arizona, escrow services are

generallyprovidedbya title insurancecompany insteadof

anattorney.How is escrow opened? The Lucas Groupwill open theescrow process for you. After thebuyer selects a home,

completesthecontracts,andtheselleracceptstheoffer,The

Lucas Groupwill open the escrow and place the buyers

earnestmoneydepositandPurchaseAgreement inescrow.

Writtenevidenceof thedeposit isdetailed in thePurchase

Agreement.

What are escrow instructions? Escrow instructions are awritten reflectionof the termsof thePurchaseAgreement.

Theywillbepreparedforyoubythetitlecompany. Escrow

instructionsdefinealltheconditionsthatmustbemetbefore

the transaction canbe completed. Asneutralparty to thetransaction, the title company can respond only to those

written instructions agreed to mutually by you and the

seller. Thislimitationprotectsallinterestedparties.

How to hold title? You should inform the escrowofficerandlenderassoonaspossibleofhowyouwishtoholdtitle

toyourhomeandexactlyhowyourname(s)willappearon

all documents. You may wish to consult an attorney,

accountant, or other professional before deciding how to

holdtitlebecausetherecanbesomemajortaxconsequences

toyourdecision. See theHow toTakeTitlepage in this

bookformoreinformation.

Whathappensnextforthebuyer?* Signing escrow instructions. Your escrow officer willscheduleanappointmenttosignyourescrowinstructions.

*IdentityStatement. YouwillbeaskedtofilloutanIdentityStatement. Besidesprovidingbasicinformationthatwillbe

useful foryour escrowofficer, this statementwillhelp the

TitleDepartmentdistinguishyoufromotherswithidentical

namesduringtheirsearchofCountyrecords.

* HomeLoan. Unless you are paying all cash, assuming aloan,ortheSellerisfinancing,youwillneedtobeapproved

foraloan. Ifyouhavenotalreadyappliedatthistimeitis

criticaltogetstartedtoavoiddelayingtheclosing.

Response to Sellers Notices. If directedby the PurchaseAgreement, you will receive the following items which

requireresponsefromyou:

a.SellersPropertyDisclosureStatementlistinganyexisting

problemsknowntotheseller.

b.InformationpertainingtotheHomeOwnersAssociation

(HOA)orplannedUnitDevelopment(PUD),ifapplicable.

c.FloodHazardDisclosureifthepropertyisinafloodarea.

d. Independent inspections, such as termite, and any

subsequentrepairsasrequired.

Title Commitment. During the escrow process, work

continuesatyourtitlecompany. Anexaminationbeginsof

all historical records pertaining to the property you are

buying. Barring any unusual circumstances, the title

companyissuesacommitmentfortitleinsuranceindicating

acleartitleorlistinganyitemswhichmustbeclearedprior

toclosing.You will receive a copy of the title commitment

when the title company completes the title search. Ifyou

haveanyquestionsaboutthetitlecommitment,contactyour

escrowofficerorTheLucasGroup.

WhatisTitleInsurance? Titleinsuranceprovidescoveragefor certain losses due to defects in the title that occurred

priortoyourownership. Thesellercangiveyouonlythose

rights that have been previously received by him with

goodtitle. Titleinsuranceprotectsagainstdefectssuchas

prior fraudor forgery thatmightgoundetecteduntilafter

closing and possibly jeopardize your ownership and

investment.Whattodobeforeclosing? Yourescrowofficerwillcontactyou to scheduleyour closingappointmentand informyou

ofthefundsyouneedtobringwithyou. Obtainacashiers

check for that amount from a financial institution,made

payable to the Title Company. If a wire transaction is

necessary, arrange for it in advance. Expectdelays if you

submitapersonalcheck.

Youwillneedvalididentificationwithyourpicture

on it. Adrivers license ispreferred. This isnecessary so

thatyouridentitycanbesworntobyanotarypublic.

What happens at closing? During your appointment youwill sign loan documents and instructions related totransferringthetitleofyouhomeyouarepurchasing.

If applicable, the signed loan documents will be

returnedtothelenderandthelendershouldthenfundthe

loan usuallywithin 24 hours. When the loan funds are

receivedby the titlecompany, theywill record thedeedat

theCountyRecordersOfficeanddisburseescrow funds to

thesellerandotherappropriatepayees. At this time,your

escrowisclosed!

Whathappensaftertheclosing?*TheLucasGroupwillarrangeforyoutoreceivethekeysto

yourhomeaccordingtoyouragreementonpossession.

* You should receive your loan couponbookbefore your

firstpayment isdue. Ifyoudont receiveyourbookor if

youhavequestionsaboutyourtaxandinsuranceimpounds,

contactyourlender.

*Call your homewarranty company directly for repairs if

youhaveahomewarrantypolicy.

*Theoriginaldeed toyourhomewillbemailed toyouby

theCountyRecorder,generallywithinthreeweeks.

*Yourtitlecompanywillmailyourtitleinsurancepolicyto

youintwotothreeweeks.

The Escrow Process


19/26

Immediatelyfollowingthesigningofanacceptingcontract,thereisa10dayinspectionperiodforthebuyertoperforminspections

ontheproperty. Ifthebuyerreasonablydisapprovesofanyitemsintheinspections,thenthebuyercandeliverwrittennoticeto

theselleraskingforrepairsandchangestobemade. Thesellerthenhastheoptiontomakethechangesornot. Iftheychooseto

makethechangesthenthecontractgoesforward. Ifthesellerchoosesnottomakethechangesthenthebuyerhastheoptionto

cancelthecontractorgoforwardwithoutthechangesbeingmade.

Pleaseseepages5and6,lines192286ofthepurchasecontract(locatedincontractssectionofthisbook)formoredetailaboutthe

inspectionprocess. IT ISEXTREMELY IMPORTANTFORYOUTOREADANDUNDERSTANDTHISSECTIONOFTHE

CONTRACT. Asyouwillseeinthecontract,therearenumeroustypesofreportsthatyoucoulddo. Werecommendatleastthree

types:apersonalinspectionbyyou,anindependentgeneralhomeinspection,andawoodinfestationinspection. Therearenumer

ousothersthatyoucanopttobuyatyourowndiscretion.

Thepurposeofyourpersonalinspectionisonlytoeliminatethosepropertiesfromconsiderationthathavetoomanyobviousdefi

ciencies.Itisnotdesignedtotaketheplaceofaprofessionalhouseinspection.Ifahousepassesyourinitial tests (location,wants

andneeds,etc.)youwillprobablywanttoscheduleasecondshowingwhereyoucanspendanhourorsodoinganinspectionof

thehouse.Hereareafewitemsthatyoushouldbelookingfor:

Foundation:Arethereobviouscracks?Anyapparentshiftsinthefoundation?

Roof:Doesitappearnew,old,orofanindeterminateage?Whatistheoverallcondition?

Evidenceofleaks:Checkinsideaswellasoutside.Checkallceilingsandareasaroundwindows.

Qualityandworkmanship:Ingeneralandinanyadditions

Apparentenergyefficiency:Doesthehouseappeartightlysealed?

Electrical:Anyobviousmalfunctions?

Plumbing:Anyunusualnoisesormalfunctions?

Appliancecondition:Whatistheageandconditionofthestove,dishwasher,refrigerator(ifincluded),etc.?

Heating/coolingsystem:Doesitseemtodothejobheatingorcooling?

Exterior:Isthehousegoingtoneedrepairsorpaintsoon?

Lot:Doesthedrainageappeargoodandawayfromthehouse?

Lot:Are

there

any

trees

encroaching

on

the

roof

or

foundation?

GeneralHomeInspectionQ&A

Whatisahomeinspection? Ahomeinspectionisanobjectivevisualexaminationofthephysicalstructureandsystemsofahome,

from theroof to the foundation.Thestandardhome inspectorsreportwill includeanevaluationof theconditionof thehomes

heating system, central air conditioning system, interiorplumbing and electrical systems; the roof,attic,andvisible insulation;

walls,ceilings,floors,windowsanddoors;thefoundationandvisiblestructure. Havingahomeinspectedislikegivingitaphysi

calcheckup.Ifproblemsorsymptomsarefound,theinspectorwillreferyoutotheappropriatespecialistortradespersonforfur

therevaluation.

Whydo Ineedahome inspection? Thepurchaseofahome isprobablythe largestsingle investmentyouwillevermake.You

shouldlearnasmuchasyoucanabouttheconditionofthepropertyandtheneedforanymajorrepairsbeforeyoubuy,sothatyou

canminimizeunpleasantsurprisesanddifficultiesafterwards.Ofcourse,ahomeinspectionwillalsopointoutthepositiveaspects

ofahome,aswellasthemaintenancethatwillbenecessarytokeepitingoodshape.Aftertheinspection,youwillhaveamuch

clearer understanding of the property you are about to purchase, and will be able to make a confident buying decision.

Whatwill itcost? Theinspectionfeeforatypicalonefamilyhousevaries,asdoesthecostofhousing.Similarly,withinagiven

area,theinspectionfeemayvarydependinguponthesizeofthehouse,particularfeaturesofthehouse,itsage,andpossibleaddi

tionalservices. Itsagoodideatochecklocalpricesonyourown.

Donotletcostbeafactorindecidingwhetherornottohaveahomeinspection,orintheselectionofyourhomeinspector.

Theknowledgegainedfromaninspectioniswellworththecost,andthelowestpricedinspectorisnotnecessarilyabargain.The

inspectorsqualifications, includinghisexperience,training,andprofessionalaffiliations,shouldbethemostimportantconsidera

tion.

The Inspection Process


20/26

Inconnectionwithyourrealestatepurchasecontract,youmustdecide

exactlyhowyouwillacquiretitle. Listedbelowaresomeexamplesandbrief

explanationsofthedifferentwaystotaketitlethatareacceptablefortitle

insurancepurposes.

The

manner

of

taking

title

may

have

significant

legal

and

taxplanningconsequences,youshouldthereforeconsultyourattorneyortax

consultantonthemanneroftakingtitlewhichismostappropriateforyou.

Thematerialprovidedbelowisinformationonly.

CommunityProperty

RightofSurvivorship

Requiresavalidmarriage.

Eachspouseholdsan

undividedonehalf

interestintheestate.

Onespousecannot

partitionthepropertyby

sellinghisorherjoint

interest.

Requiressignaturesof

bothspouses

to

convey

orencumberproperty.

Estatepassestothe

survivingspouseoutside

probate.

Nocourtactionrequired

tocleartitleuponthe

firstdeath.

Bothhalvesofthe

communitypropertyare

entitledto

astepped

uptaxbasisasofthe

dateofdeath.

Note:Arizonaisacommunitypropertystate. Propertyacquiredbyahusbandandwifeispresumedtobecommunitypropertyunlesslegallyspecified. TitlemaybeheldasSoleandSeparate. Ifamarriedpersonacquirestitleassoleandseparateproperty,hisorherspousemustexecuteadisclaimerdeedtoavoidthepresumptionofcommunityproperty. Partiesmaychoosetoholdtitleinthenameofanentity,e.g.acorporation;alimitedliabilitycompany;apartnership(generalorlimited)oratrust. Eachmethodoftakingtitlehascertainlegalandtaxconsequences. Therefore,youareencouragedtoobtainadvicefromanattorneyorotherqualifiedprofessionals.

CommunityProperty

Requiresavalid

marriage.

Eachspouseholdsan

undividedonehalf

interestintheestate.

Onespousecannot

partitiontheproperty

bysellinghisinterest.

Requiressignaturesof

bothspousestocoveyor

encumberproperty.

Eachspousecandevise

(will)onehalfofthe

communityproperty.

Upondeaththeestateof

thedecedentmustbe

clearedthrough

probate,affidavitor

adjudication.

Bothhalvesofthe

communityproperty

are

entitledtoastepped

uptaxbasisasofthe

dateofdeath.

JointTenancywith

RightofSurvivorship

Partiesneednotbemarried;maybemorethan

twojointtenants.

Eachjointtenantholdsan

equalandundivided

interestintheestate,unity

ofinterest.

Onejointtenantcan

partitionthepropertyby

sellinghisorherjoint

interest.

Requiressignaturesofall

jointtenantstoconveyor

encumberthewhole

property.

Estatepassestosurviving

tenant(s)outsideof

probate.

Nocourtactionrequiredto

cleartitleuponthedeath

ofjointtenant(s).

Deceasedtenantsshareis

entitledtoastepped

uptaxbasisasofthedate

ofdeath.

Tenancyincommon

Partiesneed

not

be

married;maybemore

thantwotenantsin

common.

Eachtenantincommon

holdsanundivided

fractionalinterestinthe

estate. Canbedis

proportionate,e.g.,20%

and80%;60%and40%.

Eachtenantssharecanbe

conveyed,mortgagedor

devisedtoathirdparty.

Requiressignaturesofall

tenantstoconveyor

encumberthewhole

property.

Upondeaththetenants

proportionatesharepasses

tohisorherheirsbywill

orintestacy.

Upondeaththeestateofthedescendentmustbe

clearedthroughprobate

affidavitoradjudication.

Eachsharehastaxbasis.

Taking Title In Arizona


21/26

SELLERgenerallypays:

Ownerstitleinsurancepremium

RealEstatebrokeragefees

Escrowfee1/2(exceptVA)**

Payoffofallloans(orsubjectto

existingloanbalanceifbeing

assumedbybuyer)Interest

accruedtolenderbeingpaid

off,Statement

Fees,

Reconveyancefeesandany

PrepaymentPenalties

TermiteInspection&required

repairs,ifany

Anyjudgments,taxliens,etc.

againsttheseller

Recordingchargestoclearall

documentsof

record

against

seller

Taxproration(foranytaxes

unpaidattimeoftransferof

title)

AnyunpaidHomeowners

Associationdues,inspection

fees

AnyBonds

or

assessments

(accordingtocontract)

Anyandalldelinquenttaxes

** OnVALoansescrowfeemust

bepaidbytheSeller

BUYERgenerallypays:

Propertyinspectionfee Lenderstitlepolicy

premiums

Escrowfee1/2(exceptVA)**

Documentpreparation(if

applicable)

Notaryfee(ifapplicable)

Recordingchargesforall

documentsin

buyers

names

Allnewloancharges

Interestonnewloanfrom

dateoffundingto30days

priorto1stpaymentdate

Assumption/Changeof

recordsfeesfortakeoverof

existingloan

Fireinsurance

premium

for

firstyear

Allprepaiditems(taxes,

insurance,etc.)forlender

impoundaccounts

NegotiableItems

for

Buyer

&Seller:

AppraisalFee

Homewarranty

H.O.A.transferfee

Who Pays What At Closing


22/26


23/26

AMORTIZEDLOAN Aloanthatispaidoffbothinterestand

principalbyregularpaymentsthatareequalornearlyequal.

AMENDMENTA change either toalter,add to,or correct

part of an agreementwithout changing the principal idea oressence.

APPRAISAL Anestimateofvalueofpropertyresulting from

analysisoffactsabouttheproperty;anopinionofvalue.

ASSUMPTION Takingoveranotherpersonsfinancialobliga

tion;takingtitletoapropertywiththeBuyerassumingliability

forpayinganexistingnote securedbyadeedof trustagainst

theproperty.

BENEFICIARY Therecipientofbenefits,oftenfromadeedof

trust;

usually

the

lender.

CLOSE OF ESCROW Thedate thedocuments are recorded

and titlepasses from Seller toBuyer.On thisdate, theBuyer

becomesthelegalowner,andtitleinsurancebecomeseffective.

CLOUDONTITLE A claim,encumbrance, or condition that

impairs the title torealpropertyuntildisprovedoreliminated

through suchmeansasaquit claimdeedoraquiet title legal

action.

COMPARABLESALES Sales thathavesimilarcharacteristics

asthesubjectproperty,usedforanalysisintheappraisal.Com

monlycalled comps.

CONVEYANCE An instrument inwriting, suchasadeedor

trustdeed,usedtotransfer(convey)titletopropertyfromone

persontoanother.

DEEDOFTRUST Aninstrumentusedinmanystatesinplace

ofamortgage.

DEEDRESTRICTIONS Limitationsinthedeedtoaproperty

thatdictate certainuses thatmayormaynotbemadeof the

property.

EARNESTMONEYDEPOSIT Downpaymentmadebyapur

chaserofrealestateasevidenceofgoodfaith;adepositorpar

tialpayment.

EASEMENTAright,privilegeor interest limited toaspecific

purposethatonepartyhasinthepropertyofanother.

HAZARD INSURANCE Real estate insurance protecting

against fire, some natural causes, vandalism, etc., depending

upon the policy. Buyer often adds liability insurance and ex

tendedcoverageforpersonalproperty.

HOMESTEADEXEMPTION Automatic inArizona, itallows

any resident ofArizona, 18 years of age or older, to exempt

fromattachment,executionorforcedsale$100,000ofequityina

singledwellingunit.Exceptionsinclude(1)processandsaleof

a consensual lien, i.e.where adeedof trustor equity loan isforeclosed; (2) a forced sale resulting from amechanics lien,

and(3)anyequitybeyondthe$100,000.(Youshouldconsultan

attorneytodetermineifthisexemptionoffersyouprotectionin

theeventofanattachment,executionorforcedsale.)

IMPOUNDS Atrusttypeofaccountestablishedbylendersfor

the accumulation ofborrower s funds tomeet periodic pay

ments of taxes,mortgage insurance premiums and/or future

insurancepolicypremiums,requiredtoprotecttheirsecurity.

LEGAL DESCRIPTION Adescriptionof land recognizedby

law,

based

on

government

surveys,

spelling

out

the

exact

boundariesof theentirepieceof land. Itshouldso thoroughly

identify a parcel of land that it cannotbe confusedwith any

other.

LIEN A form of encumbrance that usuallymakes a specific

propertythesecurityforthepaymentofadebtordischargeof

anobligation.Forexample,judgments,taxes,mortgages,deeds

oftrust.

MORTGAGE The instrument by which real property is

pledgedassecurityforrepaymentofaloan.

PITIApayment that combinesPrincipal, Interest,Taxesand

Insurance.

POWER OF ATTORNEY A written instrument whereby a

principal gives authority to an agent.The agent actingunder

suchagrantissometimescalledan Attorney inFact.

PURCHASE AGREEMENT The purchase contract between

theBuyerandSeller. It isusuallycompletedby therealestate

agentandsignedbytheBuyerandSeller.

QUITCLAIMDEED Adeedoperatingasarelease,intending

topassanytitle,interest,orclaimwhichthegrantormayhave

in theproperty,butnotcontaininganywarrantyofavalid in

terestortitlebythegrantor.

RECORDING Filing documents affecting real propertywith

theCountyRecorderasamatterofpublicrecord.

WARRANTYDEED Arealestateorienteddocumentused to

convey fee title to realproperty from thegrantor (usually the

Seller)tothegrantee(usuallytheBuyer).

Terms You Should Know


24/26


25/26

1. Allowplentyoftimethreetofourweekstoprepareforthesale.

2. Chooseadatethatwillnotconflictwithholidaysorotherspecialeventsthatmightlureprospectivecustomers

away.

3. Weekendsaremoreconvenientformorepeoplethanweekdays.

4. Yoursaleislikelytoattractmorecustomersifyoujointogetherwithneighborsinanefforttohavemore

merchandise. Some homeowners groupsaresponsoringneighborhoodsalesthatareprovingpopular.

5. Practicalhouseholdgoods,collectibles,bicycles,childrenstoysandclothes,sportsequipmentandgardentoolsare

popularitems;adultclothinghaslessappealandshouldbepricedaccordingly. Ideally,aplacefortryingclothes

shouldbeprovided.

6. Merchandiseyouritemsattractivelyinneat,cleansurroundings. Papertableclothsofferaprettysettingforglass

andornamentalitems.

7. Clusterthingsincategories;placemostdesirableitemsinthebackofthegaragesobrowsersareurgedtolookat

othermerchandiseontheirwaytothemostpopularitems.

8. Allitemsshouldbeclean,polishedandingoodrepair. Clothesshouldbesizedaccuratelyandhungona

temporaryrackusingtwoladdersandapole.

9. Locateyourappliancetablenearanoutletsocustomersmaytrybeforetheybuy.

10. Besurethereisadequateparkingspaceandaplacetoloadlargeitems.

11. Haveplentyofpaperbagsandboxesforpackingandnewspapersforwrappingglassitems.

12. Placeaclassifiedadinthelocalpapers,including3or4specificitemsforsaleanddirections

13. Takeadvantageoffreepublicityprovidedbybulletinboardsingrocerystoresandotherpublicplaces.

14. Providedirectionalsignstoyourpropertyifneeded,usinganindeliblefelttippen.

15. Ifyourhomeislistedforsale,haveyourRealtorholdanopenhouseonthesamedayasthegaragesale,thus

increasinginterestinboththehouseandthesale.

16. Visitothersalestoformanideaonhowtopricethings,butrememberthatgaragesaleshoppersarelookingfor

bargains. Bepreparedtobargainandloweryourprices.

17. Reallyvaluableitemssuchasantiquesshouldnotbesoldatagaragesale,becauseitisunlikelytheywillbring

thedesiredpricefrombargainmindedshoppers.Ontheotherhand,nothingistooworthlesstobevaluableto

someone.Haveagiveawayboxforoldmagazinesandotherassortedoddsandends.

18. Postanoticethatallsalesarefinalandpaymentmustbeincash.

19. Haveplentyofchangeinacashboxkeptinaprotectedspot. Keeparecordofsales,especiallywhenthereare

severalsellers. Onerecordingdevisethatissimpleandefficientistousesmallwhitestickerstopriceitemsandwhen

theitemispurchased,removethestickerandplaceitnexttothenameoftheseller.

20. Onahotday,haveicewaterorlemonadeavailablesopeoplewillstaylonger.

Afterholdingoneor twogarage sales,you canprobably add somenewlydiscovered tipsof yourown. Abitof

organizationwillmakeforasuccessful saleandanunclutteredhouse!

Garage Sale Tips


26/26

Gas: SouthwestGas 6028611999

CityServices: Tempe 4803508361

Chandler 4807822280

Gilbert 4805036800

Mesa 4806442221

Phoenix 6022626251

ElectricServices:

SaltRiverProject(SRP) 6022368888

AZPublicService(APS) 6023717171

CableTelevision: CoxCable 6022771000

InsightCable 6235828282

TCI 4809488488

Telephone: Qwest 18002441111

Cox

602277

1000

Newspaper: ArizonaRepublic 6022578300

EastValleyTribune 4808986500

VehicleRegistration/DriversLicense: 6022550072

VoterRegistration:

602

506

1511

PetLicense: 6025067387

Hospitals: DesertSamaritan 4808353000

Chandler Regional 4809634561

Useful Phone Numbers