Utah Home Buying Guide 2017 - First Time Home Buyer

Getting Ready to Buy!
Home Buyer Guide
Steps to Success!
www.RealEstateSource.com
™

www.UtahRealtySource.com Direct: 801-205-3500 or 801-205-1600 Gales@UtahTeam.com
Steps to Home Buying Success!
What hiring the right Realtor will do for you!.
Marty & Laurie Gale
™

Buying a home can be one of the most exciting adventures you can have.
It also can be one of the most overwhelming experiences, if you go it alone.
When you start looking at homes to buy the seller of those homes will have a real
estate agent. That Agent represents the seller. You should have someone on your
team to look after your best interest too!
The best part of hiring a Realtor to represent you, is usually it comes at no cost to
you. In most circumstances the buyer agent fee is paid by the seller from the
proceeds of the sale of their home.

What is the home buying process?

First Step – Home Buying Consultation
We know on average you will typically start looking at properties up to 6 months before you are ready
to buy. We understand this. In fact we provide a special website that allows you to view, compare and
research homes on line for as long as you need. This provides you a thorough and extensive source for
comparison shopping. The web address for the site is www.RealEstateSource.com Subscribe to
receive new listings, price change alerts and more. You control your price limits and areas! Compare
homes in the same neighborhood. This is the latest and most up to date information available! Just like
the local Multiple Listing Service the professionals use. The moment a Realtor lists a new property and
places it on the MLS is when you see it! New hot priced homes are sent to your email instantly!
™

Working for you as a Buyers Agent
What is a Buyers Agent?

Gale Team
What is Agency?
In The State of Utah there are 3 types of Agency.
1. Buyers Agent – Agent who represents buyer.
2. Sellers Agent – Agent who represents seller.
3. Limited Agent – working with both parties "limited" because the agent cannot provide both
parties with undivided loyalty, confidentiality and disclosure. For this reason, the Limited
Agent is bound by a further duty of neutrality.
AGENCY has fiduciary duties. For the agent representing the buyer or the seller . They include loyalty, obedience, full
disclosure, confidentiality, reasonable care, and any other duties required by law.

Determine your needs
What is most important to you?

Gale Team
www.RealEstateSource.com Direct: 801-205-3500 or 801-205-1600 Gales@UtahTeam.com
Many Factors Play Into Finding the Right Home
Motivation
Timing
Price
Decision Making
Location
Home Type
Home Size
Schools
Bedrooms
Baths
Kitchen
We can help you sort out exactly what it is you are looking for!

Do I need to be Pre-Approved?
Where do I go for financing?
Which Mortgage Loan is Right for You?

Gale Team
The Pre Approval Process
Securing a loan prior to writing any kind of offer is of the utmost importance!
In most cases offers will not be seriously considered without proof of ability to
perform. Either a bank statement showing proof of deposit or pre-qualification from a
reputable lender are essential to the purchase process. We have lenders of all types that
have proven themselves more than capable repeatedly. They have provided service that
resulted in uncompromised consumer satisfaction.
See these lenders at www.UtahRealtySource.com/mortgage.html

Gale Team
Finding the right home mortgage is equally as important as the home you select.
When it comes to getting a mortgage loan, homebuyers have fewer options than they did even a couple of years ago.
In the mortgage market you will find three basic types of loans.
Fixed-interest mortgage - FHA, Conventional and VA. Utah Housing Program
With a fixed-rate home loan, your interest rate remains the same for the life of the loan and the payment is split into
equal monthly payments for the duration. In other words, it is amortized over the life of the loan.
Variable Rate - Unlike a fixed-rate home loan, which carries a static interest rate over the life of the loan, the interest
rate on an adjustable-rate mortgage, or ARM, can changes every year. ARMs come in various permutations. For
instance, a hybrid ARM features aspects of both adjustable and fixed-rate mortgages.
Hybrid mortgages can be anything from a three-year, five-year, seven-year or 10-year fixed interest rate period. After
the fixed-rate period, the loan is amortized over the balance of the term with a rate that can adjust annually.

Can I get denied a loan even after I receive a loan pre-
approval or pre-qualification?
YES!

Gale Team
Do make sure you stay current on your payments. One 30 day late could mean loan denial.
Do use your credit as usual. Changing your credit habits could raise red flags.
Do contact your mortgage professional before making credit or address changes.
Don’t Change Jobs.
Don't apply for new credit. Including co-signing on a loan.
Don't max out your credit cards.
Don't consolidate debt.
Don't close credit card accounts.
Things you control to stay approved

Gale Team
Things you may not have control of
The home that is being purchased must meet approval too!
1. Must meet appraisal value.
2. Must meet condition standards. Roof, plumbing, wiring, etc.

Gale Team
Ok Now Ready To Buy! Home Searching Resources
Your best resource for home selection and advice is an experienced Realtor.
Choosing a Certified Residential Specialist is a sure bet. A CRS has 3x times more
experience! Marty Gale has been a CRS since 2009.

Gale Team
Home Searching Resources
Our Website: RealEstateSource.com has all current listed properties by all Real
Estate Brokerages and Agents Just like the MLS.

Gale Team
Source How Many Homes are for Sale in a certain City.
Our Website: www.RealEstateSource.com has all current listed properties by all Real
Estate Brokerages and Agents Just like the MLS.

Gale Team
Examine Nearby School Information.
Links to School ratings

Gale Team
Review Nearby Homes for Sale

Gale Team
Receive Automated “Hot Sheet” updates
Once we narrow down your search criteria such as area, price, bedrooms etc., you
can modify the listings to be sent as they come available. Hands down, this is one
of the best ways to get a deal on a home!

Gale Team
What about Short Sale, Bank Owned, HUD and Other
Foreclosed Properties?
We can Assist you in your search for these specific type of properties as well.

Gale Team
Viewing Homes?
As your Buyer Broker we schedule the showings and personally escort you
through each home. We provide one on one counseling, advice and details on all
properties. We work to learn as much as possible about a home that your are
considering for purchase.
We have been told by past clients : “Marty was our agent warrior in our nearly
year long quest to purchase a short sell/bank owned home. Our success would not
have happened without him, and we are now enjoying our beautiful home because
of his efforts.” Al R.

Gale Team
Viewing Homes?
We just want to go to some open houses. Can we do that ourselves without having
you present.
Of Course! But Beware! Talking to listing agents can potentially hurt you later
on during the offer process.
When the seller’s agent is there, he or she will take note of your reactions. Our
ability to negotiate can be greatly affected just by your inability to hide your
excitement. When they ask questions, their objective is usually to find out what
motivates you. This can work to your disadvantage when we negotiate your
price. So if you go to open houses, tell the agent you are working with a Realtor.
Keep your emotions under control and just look. Don’t answer a bunch of
questions. Tell the other agent you will have your agent get in touch with them.

Gale Team
Viewing Homes?
It is best to view between 5 to 10 properties to see at a time. There a several
benefits to this.
1. It allows for some drop out of appointments. Some homes go under contract,
some can’t be seen at that time slot.
2. Your education about the current marketplace grows as you see multiple
homes.
3. It allows you to compare the features of each home.

Gale Team
Helpful hints for a good house hunting experience.
1. Bring something to drink. ( We provide bottled water.)
2. Eat first. It could take 4 hours to view that many properties.
3. Wear comfortable shoes. Some homeowners request that you remove your
shoes so slip-ons are helpful.
4. If possible keep outside distractions at a minimum. If you bring children along
it can distract you from the task at hand. You don’t want to let the right home
slip from your attention.
5. Bring along a pen to take notes and a camera (or the one on your phone).
6. Finally allow plenty of time for the showings. We usually allow 30 minutes
per home as a good rule of thumb.

Gale Team
UtahRealtySource.com Direct: 801-205-3500 or 801-205-1600 Gales@UtahTeam.com
Narrowing down and choosing the home.
It is rare to find “The Perfect Home” However, you will surely find one that will
meet most of your needs.
List the items you cannot do without as a priority.

Gale Team
Drafting and Negotiating an Offer
The Utah Real Estate Purchase Contract - Residential
This contract has 25 sections. It needs to be thoroughly reviewed and every section explained in
detail.
We will walk you through each and every section!
The next few pages show you the basic outline of the contract.

The Real Estate Purchase Contract (Summary)
1. PROPERTY: Description
1.1 Included Items. 1.2 Other Included Items. 1.3 Excluded Items.
2. PURCHASE PRICE.
3. SETTLEMENT AND CLOSING.
3.1 Settlement. 3.2 Prorations. 3.3 Special Assessments. 3.4 Fees/Costs/Payment Obligations.
3.5 Closing. For purposes of the REPC, "Closing" means that: (a) Settlement has been completed; (b) the proceeds of any new
loan have been delivered by the Lender to Seller or to the escrow/closing office; and (c) the applicable Closing documents have
been recorded in the office of the county recorder.
4. POSSESSION. Seller shall deliver physical possession of the Property to Buyer
5. CONFIRMATION OF AGENCY DISCLOSURE. Buyer and Seller acknowledge prior written receipt of agency disclosure
provided by their respective agent that has disclosed the agency relationships confirmed below. At the signing of the REPC:.
6. TITLE & TITLE INSURANCE.
6.1 Title to Property.
6.2 Title Insurance.
7. SELLER DISCLOSURES. No later than the Seller Disclosure Deadline referenced in Section 24(a), Seller shall provide to
Buyer the following documents in hard copy or electronic format which are collectively referred to as the "Seller Disclosures": (a)
Seller property condition disclosure (b) a Commitment for Title Insurance
(c) a copy of any restrictive covenants (CC&R's), (d) a copy of the most recent minutes, budget and financial statement for the
homeowners' association, if any; (e) a copy of any lease, rental, and property management agreements affecting the Property not
expiring prior to Closing; (f) evidence of any water rights and/or water shares (g) written notice of any claims and/or conditions
known to Seller relating to environmental problems and building or zoning code violations; and (h) Other (specify)

8. BUYER'S CONDITIONS OF PURCHASE.
8.1 DUE DILIGENCE CONDITION. (a) Due Diligence Items. (b) Buyer's Right to Cancel or Resolve Objections (c)
Failure to Cancel or Resolve Objections.
8.2 APPRAISAL CONDITION. (
8.3 FINANCING CONDITION.
8.4 ADDITIONAL EARNEST MONEY DEPOSIT.
9. ADDENDA.
10. HOME WARRANTY PLAN / AS-IS CONDITION OF PROPERTY.
11. FINAL PRE-SETTLEMENT WALK-THROUGH INSPECTION.
12. CHANGES DURING TRANSACTION.
13. AUTHORITY OF SIGNERS.
14. COMPLETE CONTRACT.
15. MEDIATION.
16. DEFAULT.
17. ATTORNEY FEES AND COSTS/GOVERNING LAW.
18. NOTICES.

19. NO ASSIGNMENT.
20. INSURANCE & RISK OF LOSS.
21. TIME IS OF THE ESSENCE
22. ELECTRONIC TRANSMISSION AND COUNTERPARTS.
23. ACCEPTANCE
24. CONTRACT DEADLINES. Buyer and Seller agree that the following deadlines shall apply to the REPC:
(a) Seller Disclosure Deadline (b) Due Diligence Deadline (c) Financing & Appraisal Deadline (d) Settlement
25. OFFER AND TIME FOR ACCEPTANCE.

Manage the Transaction though to the Closing
Receive the Seller Disclosures This is the process where the Seller is required to provide information relating to the property. •
Seller Property Condition Disclosure - filled out, signed and dated from Seller. • Commitment for the policy of Title Insurance,
showing easements, encroachments and liens. • HOA information, budget, minutes, assessments, CC&R's, and survey, water rights
if applicable. • Copy of any leases, rental, and property management affecting the property not expiring prior to closing. • Notice
of any claims and/or conditions relating to environmental problems & building or zoning code violations.
Your Due Diligence (Evaluations and Inspections) – IMPORTANT DATES! This is the time period provided to you as the Buyer
to learn, review, inspect and decide if acceptable. • Carefully review all items provided in the Seller's Disclosures. • Schedule any
physical condition inspections, tests and evaluations deemed necessary. • Review the costs, terms and availability of homeowner's
insurance for the property.
Your Right to Cancel or Resolve Objections If you determine the Evaluations and Inspections to be unacceptable, you may: •
No later than the Due Diligence Deadline, cancel the contract by written notice to Seller. • Or no later than the Due Diligence
Deadline, resolve in writing any objections.
Financing and Appraisal In the final steps of the transaction we will coordinate and complete any remaining details. • Is the sale
and/or mortgage contingent upon an appraisal? At what amount did the property appraise? • How is your financing going? Are
there any last minute issues for securing your mortgage? • Is the sale contingent upon you selling your previous home? How is that
sale going? • Schedule a final pre-settlement walk-through inspection.
Settlement – Settlement, and then Closing shall take place only when all of the following occur: • Buyer and Seller have signed
all documents required by REPC, Title, Lender, etc. • Any monies required to be paid have been delivered by Buyer and/or Seller.
• The proceeds of the new loan have been "funded", then all closing docs are "recorded" at the County Recorder. • Hand off keys,
garage door openers, manuals, warranties. • Help you to find a new home in this area or offer relocation assistance.

Gale Team
A Few Testimo nies
W h a t c l i e n t s h a v e t o s a y !
Dave Wernke - Chemical Operations Manager
Marty Gale far exceeded our expectations as a Buyers Agent in the recent purchase of our home. His knowledge of the Utah real estate
market is exceptional and with his experience in residential home construction he was able to provide beneficial advice in selecting well-
built homes. The network of professionals that Marty works with are top shelf, his recommendations for home inspection and mortgage
broker were perfect. Customer service from this team of professionals is some of the best we have worked with; this is our fifth home
purchase. You will not be disappointed in choosing to work with Marty!
February 28, 2014, Dave was Marty Gale's client
Keith Van Scotter - President at Lincoln Paper and Tissue and Owner, Lincoln Paper and Tissue
I hired Marty to market my house in South Jordan because of his experience and knowledge of the market. He kept me up to date on
changing market conditions and provided valuable feedback on the best way to position the property for sale. He was also very easy to
work with as I was an absentee owner. I recommend him very highly.
Scott Baird - Operational Excellence Consultant at State of Utah
Marty is an excellent realtor! We recently purchased a foreclosed home through Marty; his work history as a contractor and extensive
understanding of homes in Utah gave us great insight into our home and how to move forward and navigate the waters of buying a
foreclosed home. Marty's motto was to "know everything before his client did" and this played true in our purchase. Marty was prepared
with every piece of information we wondered about and additional information we hadn't thought of. Because of Marty's preparation we
had a smooth transaction without any problems and are now in our dream home.
September 17, 2013, Scott was Marty Gale's client

Gale Team
T h a n k Y o u !
Marty Gale, Principal Broker of Utah
Realty™, Past Founder of RE/MAX
METRO, E-pro, CRS, SFR, CDPE,
ABR, Realtor Since 1986, Lifetime
Member Salt Lake Board of Realtors
Million Dollar Club, RE/MAX
Executive Club, RE/MAX 100%
CLUB 1998-2013
Owner Agent Specialties: Residential
Homes, New Construction, Land.
Commercial: Purchases, Leasing,
Investments, Medical, Multi-Family,
Industrial and Office.
Full-time practice from 1991 to Present
Marty Direct - 801-205-3500 or Laurie Direct - 801-205-1600

Utah Home Buying Guide 2017 - First Time Home Buyer

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