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Essential Guide to Purchasing Real Estate in CaliforniaBUYER'S GUIDE
A B O U T U S
The name EGA, which stands for Eagle, Globe, and Anchor, was inspired byour team leader’s service in the United States Marine Corps. This emblem,deeply rooted in military tradition, symbolizes honor, courage, andcommitment. As our team has grown, the significance of EGA hasextended beyond its military origins. It has become a powerful symbol forall of us, embodying the values of excellence, teamwork, and dedication.Even for those who did not serve in the military, EGA represents the highstandards we hold ourselves to and the unity that drives our success.When you join EGA Homes, you’re joining a team that values friendship,honesty, and integrity. Together, we aim to make a real difference andachieve success. Whether you’re starting a new career or looking to switchbrokers, we’d love for you to join us and be part of something truly special.OUR MISSION IS TO ENRICH THE LIVES OF OUR CLIENTS, AGENTS ANDCOMMUNITY BY DELIVERING RESULTS WITH INTEGRITY, KNOWLEDGEAND PASSION,What DoesEGA STAND FOR?Integrity Knowledge PassionDiscipline TeamworkCompassionOUR CORE VALUES:
TRANSPARENCY YOU CAN trusttrustAs of August 17, 2024, a new set of rules governingthe way most real estate professionals dobusiness in the US officially took effect. Realtors are now required to have a writtenagreement with buyers before we can beginshowing homes.This is similar to the process we already follow withsellers, where a listing contract must be signedbefore we begin working on listing the property forsale. While this law formalizes the process, it alignswith the commitment to transparency and clearcommunication that has always been a core part ofhow we do business. This new requirement simplyensures that both parties are on the same page rightfrom the beginning, just as we've always aimed toachieve.
B U Y E R B R O K E RC O M P E N S A T I O N
HOW BUYER’S AGENTS ARECompensatedSELLER OFFERS CONCESSIONIn some transactions, the seller may offer a credit to cover the buyer’sagent’s commission. This can reduce the buyer’s out-of-pocket expenses. NEGOTIATE THE COMMISSIONThe commission for the buyer’s agent can often be negotiated as part ofthe overall offer or purchase price, if the seller agrees once an offer hasbeen presented. BUYER TO PAY FOR BUYER’S AGENTIn some cases, the buyer may need to cover some or all of the buyersagents commission. This means that if the seller’s contribution towardthe agent’s commission is limited or unavailable, the buyer may need tobudget for these expenses separately, either through savings orfinancing options.
All the ways I W O R K F O R Y O UThank you for considering me for your home search. Once we begin our partnership,here is a list of commitments I promise to fulfill, many of which I will collaborate onwith your entire "team," including your mortgage lender and other third-party vendors.BUYER CONSULTATION & HOME SEARCH1Schedule an introductory call to get to know you and discuss yourhomeownership goals.2Review buyer representation documents.3Conduct a homebuyer consultation4Educate you on Market Conditions .5Connect you with resources like mortgage lenders for preapproval andfinancing options.6Set up a personalized home search in the MLS based on yourrequirements.7Regularly review MLS listings and share potential matches.8Look for off-market opportunities through our network and agentconnections.9Provide all available information for homes you're interested in.10Arrange showings that fit your schedule.11Verify details and gather information about status from listing agents.12Follow up with you for feedback on properties you have viewed..
PREPARE OFFER & ACCEPTANCE13Conduct a comprehensive market analysis to determine a fair offerprice.14Pull tax records for the property of interest.15Connect with the listing agent to gather details on offer deadlines andany information on other offers.16Inform you of options for making a competitive offer.17Discuss the offer price and terms with you, including key dates,contingencies, and offer strategies.18Obtain an updated pre-approval letter from your loan officer and proofof funds to submit with the offer.19Explain legal and contractual obligations20Walk you through all offer documents before you sign.21Promptly send the offer package to the listing agent and follow up toconfirm receipt.22Connect your lender with the listing agent to help strengthen youroffer.23Negotiate on your behalf to secure the best deal.24Once accepted, send you the officially signed offer and outline the nextsteps.25Coordinate the initial introduction to all parties involved in thetransaction.26Notify your lender that the offer has been accepted and provide allrelevant documents.27Connect you with the escrow company and provide all contactinformation.
DUE DILIGENE & INSPECTIONS28Coordinate the earnest money payment between you and the titlecompany.29Provide recommendations for home inspection.30Attend the inspection with you.31Schedule and attend any additional inspections as needed, such asroof inspection, plumbing or termite.32Obtain and provide a copy of the septic system inspection report (ifapplicable).33Obtain and provide water testing reports for well water (if applicable).34Obtain and provide condo documents, budget, and meeting minutes(if applicable)35Review the findings from due diligence and inspections, address anyconcerns, discuss follow-up questions, and prioritize items.36Send a list of due diligence and post-inspection questions to the listingagent. 37Negotiate with the listing agent for any requested repairs or credits onyour behalf.38Relay any updated terms to escrow company for incorporation into thePurchase & Sale Agreement.39Coordinate the signing of any purchase agreement addendums,removal of contingencies, and any other required documents.40Deliver copies of fully executed documents to all parties involved.
PRE CLOSING PERPARATION41Regularly contact your lender to ensure processing remains on track (ifobtaining financing).42Ensure the appraisal appointment is scheduled and completed by thebank (if obtaining financing).43Coordinate with the Escrow company to verify status of all parties.44Confirm the listing agent has ordered HOA documents (if applicable).45Ensure the seller completes repairs and/ or provides receipts for agreedupon repairs (if repairs were requested and agreed).46Provide a list of local utility providers upon request.47Maintain communication with the Listing Agent to prevent delays onthe seller's side.48Arrange and schedule property visits as needed (if applicable).49Provide checklist for moving and utilities.50Offer a list of vetted vendors for moving upon request.51Communicate the final loan approval to the listing side (if financed).52Obtain and review the pre-settlement statement (ALTA/CD/HUD)before closing.53Schedule the final walk-through (typically 1-3 days prior to closing).
CLOSING 54Attend the final walk-through with you (note: this should be done 3-5days prior to closing).55Confirm the property's condition matches prior inspections and repairsare completed (if applicable).56Address any issues that arise, coordinating with co-broke to resolvethem before closing.57Arrange for the delivery of keys or access information.58Confirm with the escrow company that the loan was funded (ifobtaining financing).59Secure access to the property once the transaction is recorded (seecontract for exact date of possession).60Obtain copies of the final ALTA/CD/HUD documents at closing.61Update files in our transaction management system and mark thetransaction as closed.AFTER CLOSING 62Maintain secure records of all documents for the required complianceduration.63Provide you with a list of preferred vendors for future home projectsupon request.64Follow up with the closing statement for tax filing purposes at the beginningof the following year.65Address any questions that may arise after the sale is closed.
One fact about buying a house is that it can be a significantinvestment that may appreciate over time, providing thepotential for long-term financial stability and wealth-building opportunities.
P R E P A R ET O B U Y
T E R M S T O K N O WEARNEST MONEY DEPOSITThe initial amount of money paid by thehome buyer to the seller through escrowto secure the purchase of the property.MORTGAGEA loan provided by a lender to the homebuyer to finance the purchase of a home.APPRAISALAn estimate of the value of the propertyperformed by a licensed appraiser todetermine its fair market value.HOME INSPECTION A detailed examination of the property bya licensed home inspector to identify anypotential issues that could affect the saleor value of the property.CONTINGENCYA condition that must be met in order forthe sale to proceed, such as the buyerobtaining financing or the completion of asatisfactory home inspectionCLOSING COSTSFees associated with the purchase of ahome that are paid at the closing of thesale. This may include appraisal fees, titleinsurance, and escrow fees.DISCLOSUREThe seller's obligation to disclose anyknown defects or issues with the propertythat could affect its value or safety.TITLEThe legal right to own and sell theproperty, which is conveyed to the buyer atclosing.ESCROWA third-party that holds funds, documents,and other items related to the sale of theproperty until the transaction iscompleted.UNDER CONTRACTA stage in the sale process where the sellerhas accepted an offer, but the sale has notyet been finalized.OFFERA proposal to buy a property, including theprice and terms of the sale.CLOSINGThe final step in a real estate transactionwhere the buyer pays for the property andthe seller transfers ownership.
2PREPARE YOUR FINANCES0 8 S T E P S T O B E C O M I N G A H O M E O W N E R3START YOUR SEARCH4GET A HOME APPRAISALMAKE AN OFFER5GET A HOME INSPECTION7CLOSE THE DEAL8MOVE IN1CHOOSE A REAL ESTATE AGENT6
FIND A REAL ESTATE AGENTChoosing a real estate agent whom you trust and feel comfortable with can be aschallenging as finding your dream home. Given the significant investment you are aboutto make, it's crucial to work with an agent who is as committed to your needs as you are.With our experienced team of agents, you can feel confident that we will help you findyour dream home and guide you through the entire home buying process.01OUR EXPERTISEOur agents possess industry knowledge that goes beyond what's available to the generalpublic. This specialized knowledge can help you find the right home at the best possibleprice, based on market trends and other factors.NEGOTIATING SKILLSWith our team's collective experience and expertise, we can guide you through the homebuying process and help you make informed decisions. Our agents know how to navigatecomplex negotiations to ensure that you get the best value for your investment.PROFESSIONAL STANDARDSOur agents are held to the highest standards of professionalism. They undergo regular training andcompliance checks to stay up-to-date on changes in legal and administrative procedures. Thisensures that you receive reliable and accurate guidance throughout the home buying process.CUSTOMER SERVICEWe believe that customer service is key. Our agents are committed to providingexceptional service and answering any questions or concerns you may have. We treat ourclients with the same level of respect and care that we would want for ourselves.
PREPARE YOUR FINANCES02Determine how much you can afford to spend on a home, taking into account yourincome, expenses, and debts. This includes not only the mortgage payment but alsoproperty taxes, homeowner's insurance, and home maintenance costs.This will give you a clear idea of howmuch you can afford and will make thehome buying process smoother. It's important to research and comparemortgage rates and terms from differentlenders to find the best option for yourfinancial situation.DETERMINE YOUR BUDGETGET PRE-APPROVEDFOR A MORTGAGE
START YOUR SEARCH03Research the neighborhoods you areinterested in, taking into considerationfactors such as schools, safety, access topublic transportation, and local amenities.Create a list of features you need in a home, such as the number of bedrooms andbathrooms, location, and yard size, as well as features that would be nice to have,but are not essential.RESEARCH NEIGHBORHOODSMAKE A LIST OF MUST-HAVES AND NICE-TO-HAVESBe sure to relay your needs vs wants toyour real estate agent, so they can set youup to receive listings that meet yourcriteria.COMMUNICATE WITH YOUR AGENT
Once you've found a property you're interested in, work with your real estateagent to submit an offer to the seller. Your offer should include the purchaseprice, contingencies, and any other terms and conditions you want to include.The seller may counter your offer with adifferent price or terms. Be prepared tonegotiate and work with your agent tocome up with a counteroffer.PREPARE FOR NEGOTIATIONS04MAKE AN OFFERNegotiations may require some give andtake. Be open to compromise andconsider factors such as the condition ofthe property, market trends, and theseller's motivation for selling.BE FLEXIBLE
A home inspection is an evaluation ofthe home's condition and structure bya professional home inspector. Thepurpose of the inspection is to identifyany issues that may affect the value ofthe property or pose a safety hazard.During the inspection, the inspector willevaluate the home's electrical, plumbing,HVAC, and other systems, as well as the roof,foundation, and overall structural integrity. Theinspector will also look for evidence of waterdamage, pest infestations, and other potentialissues.Based on the findings, the inspector willprovide a detailed report outlining any issuesthat were identified. This report can be used tonegotiate with the seller for repairs or to adjustthe purchase price.GET A HOME INSPECTION05
During an appraisal, the appraiser will considervarious factors such as the home's size, location,condition, and comparable sales in the area. Theywill then provide an estimated value of theproperty based on their analysis.Understand that the appraisal can impact yourfinancing, as lenders use the appraisal todetermine the amount they will lend you.It is common for buyers to include anappraisal contingency in theirpurchase agreement, which allowsthem to back out of the purchase ifthe appraisal comes in lower than thepurchase price.APPRAISAL CONTINGENCY06GET A HOME APPRAISALThe cost of the appraisal is typically paidby the buyer and can range from a fewhundred to a few thousand dollars,depending on the type of appraisal andthe size of the property.APPRAISAL COSTBe sure to obtain homeowner'sinsurance to protect your investmentin the home.HOMEOWNER'S INSURANCEThe assessed value of the property isused to determine the amount ofproperty taxes you will owe. PROPERTY TAXES
07A few days before the closing, you will receive a closingdisclosure from your lender that outlines the final details ofyour loan, including the loan terms, interest rate, and closingcosts. Review it carefully to make sure everything is accurate.REVIEW THE CLOSING DISCLOSURECLOSE THE DEALDuring the closing, you will review and sign several documents,including the mortgage note, the deed of trust, and thesettlement statement. Review them carefully and ask youragent or attorney any questions you may have.REVIEW AND SIGN CLOSING DOCUMENTSBefore closing, conduct a final walkthrough of theproperty to ensure that any repairs or requestedchanges have been made and that the property is in thesame condition as when you made your offer.CONDUCT A FINAL WALKTHROUGHYou will be required to pay closing costs, which mayinclude appraisal fees, title insurance, escrow fees, andother charges.PAY CLOSING COSTS
08Hire a moving companyPack and label your itemsTransfer utilitiesChange your address with the post office and relevant organizationsUnpack and settle inExplore your new neighborhoodMOVE INMoving in is an exciting step in the home buying process. Here's what toexpect when you're ready to move into your new homeCONGRATULATIONS ON CLOSING THE DEALAND BECOMING A HOMEOWNER!
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