Tuscany Realty
Buyer Information Packet
In this folder you will find the following information to assist you
throughout the property buying process.
1. Tuscany’s Commitment
2. 7 Reasons to Buy a Home
3. Good Financial Information Leads to Good Decisions
4. My Unique Selling Position
5. Process of Buying a Home
6. Buyer Agency; Best Served as Customer or Client?
7. Duties and Responsibilities of a Licensed Real Estate Agent
8. Mutual Agreement
9. Property Search Information Form
10. Financial Data Form
11. Pre-Approval Program
12. Items needed for a credit application
13. What Can You Afford? Estimating affordable mortgage amount
14. Title Insurance and Closing Costs
15. Home Protection Plan
16. Home Inspection Services
Please use this packet to keep all of your property buying documents together in one place throughout your property purchase experience.
We, At Tuscany,
ARE a full service real estate company...
Serving all your residential, commercial, industrial and investment real estate and financing needs with professional Realtors.
SPECIALIZE in regional communities with local agents...
Including the greater Bay Area, Stockton, Modesto, Lodi, Sacramento, Elk Grove, Laguna, Roseville, Rocklin, Granite Bay, Folsom...
UTILIZE the latest technology and internet networking to produce and maximize the exposures for all properties for sale or for lease.
HAVE full access to the MLS (Multiple Listing Service) / Metrolist to provide property information to potential clients throughout Northern California.
PROVIDE one of the most comprehensive advertising plans:
- MLS / Metrolist
- Major / Local Newspapers,
- Chinese and Vietnamese Newspaper and Magazines in the Bay Area, San Francisco, Oakland, Stockton, and Sacramento.
Our Agents are all members of the California Association of Realtors, who commit to professionalism, integrity, excellence in servicing our clients in today's real estate market.
7 Reasons to Buy
1. You can enjoy it – Pride of Ownership
Pride of ownership is a key reason for wanting your own home. Decorate it to your own taste and enjoy all of the benefits while making a great investment.
2. Appreciation Potential
Real estate over time has been considered a good investment because most of it has appreciated. The effects of leverage can multiply the increase when borrowed funds are used to purchase the home. Many times, the largest investment a person owns is their home. Homes have been a good hedge against inflation. Homeowners build equity and can borrow against that equity for a variety of reasons that could include college, medical, or to start a business.
3. Tax Deductibility of Mortgage Interest
Qualified mortgage interest and home equity loans are deductible for Income Tax purposes.
4. Tax Deductibility of Property Taxes
Property taxes on a first or second home are deductible on for Income Tax purposes. Deferred Gain and Capital Gain Treatment
5. The Opportunity to take Advantage of the 1997 tax law revision and exclude up to $500,000 of capital gain every two years.
A homeowner can exclude up to $500,000 of capital gain if married, filing jointly or up to $250,000 if single or filing separately for homes that have been the taxpayer's principal residence for the previous two years. There is no age requirement for taking the capital gains exclusion like the “over 55” rule in the past. It is not necessary to purchase a replacement home more expensive than the one sold. Homeowners can buy a more or less expensive home with no tax consequences assuming their gain is less than the allowable amounts.
6. Preferential tax treatment
Preferential tax treatment on gains that have been made from capital assets held more than one year are permitted by IRS. This is especially important for homeowners with gains in excess of the allowable exclusion.
7. Principal Accumulation
Mortgage payments include the interest for the time that the money has been used and principal to retire the debt over a period of time. Each month, part of the payment is for principal accumulation
Good Financial Information Leads to Good Decisions
Better decisions are made when they are based on good financial information. The enclosed reports are simple to read and easy to understand. Knowing there are alternatives helps to determine the right choices.
Estimated Purchase Costs – It is important to know how much you’ll need to buy a home not only for the down payment but for all of the fees that are charged in connection with getting the loan and conveying title.
Mortgage Qualification –Discover what size mortgage you can qualify for using the same guidelines that a mortgage company uses.
80-10-10 – This report will show you the savings achieved by eliminating Private Mortgage Insurance. Not only will you save money in the initial purchase costs but also in the monthly payment.
Alternate Financing Plans – Choices will help you to make a better decision as to how to finance your new home. You deserve to know what options are available and that is exactly what you’ll get.
Mortgage Accelerator – Discover the advantage of adding an additional amount of principal to your fixed rate mortgage on a regular basis to shorten the term and save tens of thousands of dollars in interest.
My Unique Selling Position
There are a lot of agents available and willing to help you with your home purchase. To make a solid case for letting me help you, I have to provide more services and higher-level services both before the sale and after the sale. I am not just looking for one sale from you. I want you to consider me as your real estate professional for life.
The reasons for doing business with me must be so compelling that not only will you not consider doing business with anyone else, you will refer me to your friends who are looking to buy or sell a home.
Neighborhood Knowledge
I will know the neighborhoods that you are considering or will find someone who does. I will identify comparable sales, and information on the schools, shopping, crime, demographics, and other things you feel are important.
Appropriate Houses to Consider
I will look for what you want and can afford in an area you want to live. I’ll show you all the homes that are available not just the ones that I have listed. I will look for homes that are not yet on the market.
Good Financial Decisions
Every buyer needs basic financial information to make a good buying decision. You’ll know that you qualify for the home, what the payments and the closing costs will be. I’ll also make additional suggestions like making extra principal contributions with your regular payment and suggest an alternative type of mortgage to allow for the least expensive cost of housing.
Work Diligently to Find Your Home
I’ll work hard to find your new home. I understand that finding a home is a priority and will consider it the same. I’ll screen and preview homes so as to not waste your time and when I find one that I feel meet your needs, I’ll show it to you as quickly as possible.
You become familiar with how I work so that you can place confidence in my ability. You develop rapport necessary to communicate easily and I can come to understand your particular needs. I can afford to make a commitment in time and effort because I can feel assured of making a sale.
Process of Buying a Home
Orientation
During the initial interview, you’ll share your expectations and learn about the process of buying a home. You’ll obtain valuable market knowledge about areas, prices, financing, your qualifications, and normal procedures.
Considering your wants, abilities, and needs, you decide on price, size, style, and area. At this point, we will begin the search to find your new home.
Financing
A strategy for a successful purchase is to apply for pre-approval prior to finding a home. Negotiating a contract with a loan commitment can be advantageous to you.
There are specific things necessary to make a loan application and assembling them can take some time. It is recommended to use the enclosed list.
Formulating an Offer
When you find the right home, you will want to make an offer to purchase it. This is done in writing specifying every detail that is part of the agreement. There are standard forms that your real estate agent can provide you.
The last step is to assemble all of the loan papers at the settlement. You will need to pay the balance of your down payment and your closing costs at this time. Usually, a cashier’s check is required for these funds.
Home Buyer Process Cont…
Best Served as Customer or Client?
Customer Profile: (Non-Agency)
As a buyer, you may be best served as a CUSTOMER when you:
§ Are merely need exposure to the property
§ Are familiar with real estate practices and procedures and/or business in general
§ Know how to mentally structure an offer
§ Are capable of negotiating for yourself
§ Are capable of analyzing the property and legal forms (or can engage the services of someone who can)
Real estate agents work WITH a CUSTOMER
Client Profile: (Agency)
As a buyer, you may be best served as a CLIENT when you:
§ Are inexperienced regarding real estate purchasing and/or business in general or when you are a sophisticated buyer
§ Have a strong need for help in negotiating
§ Have limited funds, restricted terms or types of financing
§ Rely heavily on input from the salesperson ("What would YOU suggest I do?")
§ Have a confidentiality that needs to be kept and/or want to keep your identity confidential
§ Are a very cautious, analytical buyer; constantly probing for every detail
§ Speak English as a second language
Real estate agents work FOR a CLIENT
Duties & Responsibilities of a Licensed Real Estate Agent to a:
Buyer as a “CLIENT”Buyer has signed an Exclusive Buyer Representation Agreement with a specific brokerage firm. / Buyer as a “CUSTOMER”
Buyer has elected to use the services of a brokerage firm but not signed an agreement for a buyer representation.
A. Needs Assessment
As a Buyer-Client
1.Your Exclusive Buyer Agent can devote full attention to your needs without an obligation to match you with a seller-client’s property. / As a buyer Customer
1. The seller agent’s duty of undivided loyalty to the obligates the company to attempt to keep you focused on the property that you called about until you reject the seller’s property.
2. Your Exclusive Buyer Agent’s duty of confidentially enables you to provide information without fear of harming your negotiating position. / 2. A seller agent’s duty of full disclosure to the seller means that you should not tell the seller’s agent or subagents any information that will harm your negotiating position.
3. Your Exclusive Buyer Agent’s duty of undivided loyalty enables your agent to suggest alternative solutions to your needs, thus increasing the supply for appropriate properties. / 3. Because it is in the seller’s best interest for appropriate properties for you to be in short supply, the seller’s or subagent will not take any action which would expand your market.
B. Property Selection
As a Buyer Client
1. Your Exclusive Buyer Agent is obligated to find the best property for you. A buyer’s agent has access to the entire market and is not limited to properties that have been listed for sale. / As a Buyer Customer
1. The seller’s agent or subagent is obligated to find the best buyer for the seller’s property.
2. If necessary, your Exclusive Buyer Agent can promote your search for an appropriate property through promotions in print media, to seller's agents and directly to owners of properties that may be appropriate for you. / 2. A seller's agent who works FOR you by promoting a buyer's search may be accused of creating an implied agency with you. This includes placing ads in print media or contacting owners of properties that are not listed for sale.
3. Because of your Exclusive Buyer Agent's duty of undivided loyalty, you should be notified of new listings and be given an opportunity to view these properties before buyer-customers are notified. / 3. The seller's agent will notify you of new listings after buyer-clients have had an opportunity to view these properties.
4. Your property selection is not limited by the seller's list price. Your Exclusive Buyer Agent may help you to negotiate the sales price down into your range of affordability. / 4. Unless a seller-client agrees otherwise, you should only be shown properties priced within your range of affordability. To do otherwise would imply that the seller would accept less than list price.
C. Viewing Properties
As a Buyer-Client
I. Your Exclusive Buyer Agent will assist you in making an objective evaluation of a property, including both positives and negatives. / As a buyer Customer
1. A seller's agent will disclose material facts about the property to you, but will not provide an objective assessment of the property nor address any negative aspects that are not material facts.
2. Your Exclusive Buyer Agent will assist you in making an objective comparison with competing properties. / 2. A seller's agent will not assist you in comparing competing properties.
D. Negotiating the Purchase Agreement
As a 'Buyer-Client
1. Your Exclusive Buyer Agent will plan your negotiating strategy with you. / As a Buyer-Customer
1. The seller's agent plans a negotiating strategy to obtain an offer from you at the seller's price and terms.
2. Your Exclusive Buyer Agent will suggest procedures which will strengthen your negotiating position. / 2. The seller's agent will implement a negotiating strategy that will strengthen the seller's negotiating position.
3. Your Exclusive Buyer Agent will provide price counseling for you:
a. Information on similar properties which have sold recently.
b. Information on similar properties which are currently on the market. / 3. The seller's agent will provide a Competitive Market Analysis for you only if the CMA supports the seller's listing price.
4. Your buyer's agent will suggest protective clauses for the purchase agreement to protect you. / 4. The seller's agent will attempt to negotiate protective clauses in the purchase agreement to protect the seller.
5. Your buyer's agent will suggest financing alternatives that may be in your best interests. / 5. The seller's agent will suggest financing alternatives to you that increase your chances of qualifying and at the least expense to the seller.
6. Your buyer's agent will implement negotiating techniques on your behalf as appropriate. / 6. The seller's agent will implement negotiating techniques on the seller's behalf as appropriate.
7. During the term of a negotiation, your buyer's agent will continue to search for other appropriate properties for you to enhance your negotiating position. / 7. During the term of the negotiation, the seller's agent will continue to market the seller's property in an attempt to obtain a better competing offer.
8. With the previous client's consent, your buyer's agent can tell you about the details of unsuccessful negotiations in the past or any other information about the seller which would aid your negotiating position. / 8. Unless the seller agrees otherwise, details about the seller's previous negotiations, motivations to sell, financial position, or any other information that would aid your negotiating position must remain confidential.
9. Unless you agree otherwise, any information about the seller that would aid your position must be disclosed to you. / 9. Unless the seller agrees otherwise, any information about you that would aid the seller's negotiating position must be disclosed to the seller.
E. Follow Through After the Purchase Agreement
As a Buyer-Client
1. Your Exclusive Buyer Agent will attempt to solve' problems to your satisfaction. You and the seller or seller's agent are kept informed of the progress in preparing for the closing. / As a Buyer-Customer
1. The seller's agent must attempt to solve problems to the seller's satisfaction. Seller and buyer are kept informed of progress in preparing for the closing.
Mutual Agreement