THE HOME BUYING PROCESS

WORKING TOGETHER

Market
Process Compensation
Education

T HE SEA RC H

Viewing Select Your Pre-Approval

Dos & Don’ts Who Pays What
Properties Lender & Taxes

W RI T I NG T HE OFFER

Disclosure Inspections &

Contingencies Insurance Title
Review Ordinances

CONTRACT & CLOSING

Getting Wiring Funds Finalizing After the

Holding Title Signing Docs
Ready (& Fraud) the Loan Close

W E LCO M E H O M E !
WORKING TOGETHER
It's exciting to help you purchase a property! The East Bay market is incredibly dynamic and varies by
neighborhood, which can sometimes make the buying process feel complicated. We will eliminate as
many challenges as possible, and if we can make it fun, we will!
A major part of providing buyer agent services is going far beyond helping you find your property.
Acting as your fiduciary, you will be guided through an intensely complicated process so that you
come away satisfied from what may be the largest financial transaction of your life.

You can expect...

TO RECEIVE
RESPONSES AS QUICKLY TO STAY IN
AS POSSIBLE TRANSPARENT
COMMUNICATION

TO HEAR
THE TRUTH
SUPPORT AS
YOUR FIERCEST
NEGOTIATOR
 WORKING TOGETHER

HELPING YOU NAVIGATE

THE PURCHASE PROCESS
Buying a home is far more complicated than just finding a property to purchase.

Does a detail in the

Will your offer price be one disclosures reveal
the seller will even consider? that the home has
substantial issues?

Are you paying a fair Will the sellers deliver

price given the specific on their contractual
neighborhood? obligations?

The purchase agreement

can be over 50 pages long.
Are there opportunities to Do you know the risks and
negotiate and save money? obligations that you are
taking on?
 WORKING TOGETHER

BUYER BROKER AGREEMENT

Under current guidelines, we are required to substantiate our relationship in a contract. This
Buyer Broker Agreement will be in place for up to 90 days and can be renewed. We'll clarify the
neighborhood and price points you are searching for, and formalize the compensation due in order
to work on your behalf.

• Committed to guide, advise and represent you using education and

experience as a Realtor.

• Insight into market dynamics, using exclusive quantitative analysis

and on-the-ground insight.
MY
COMMITMENT • Ethics and integrity are core beliefs and impact everything done
TO YOU for you.

• Pacing and communication style will be personalized to your needs.

• While there may be challenges along the way, foresight allows us

to avoid potential issues and offer resourceful solutions.

• Review and help select the right cities and neighborhoods for your
needs and provide pricing trends in micro-markets.

• Help you find homes using online tools and personal experience
(and if you see any homes that interest you, let’s discuss!).
SEARCHING
FOR • Utilize the Realtor® network to uncover off-market, pre-market and
PROPERTY “coming soon” listings.

• Provide guidance toward optimal lending programs.

• Perform extensive “behind the scenes” work previewing homes,

reviewing comparable sales, and monitoring the market.
 WORKING TOGETHER

BUYER BROKER AGREEMENT continued

• Go beyond the initial offer, advising on inspections, counteroffers,

appraisal gaps and repair requests.

• It not just about helping you win the offer and working to ensure
the property is a sound investment, buyers agency includes pushing
for necessary repairs, negotiating closing costs, and acting as your
advocate against unreasonable demands.
IN • A critical component is saving you money: True value lies in securing
CONTRACT the best possible terms and uncovering and negotiating hidden costs
prior to close.

• Contracts are dense with legal jargon, which will be clearly translated
to explain your rights, obligations, and potential risks.

• I catch errors: Small mistakes in paperwork can cause delays or costly

disputes. Being meticulous helps to ensure everything is completed
accurately and on time.

Red Oak is unique in that it employs an in-house, full-time transaction

coordination team. They are wholly focused on streamlining the
transaction paperwork process, and in California there is a lot of it!

• The Transaction Coordinator manages continuous communication with

escrow and all involved parties and ensures documentation meets local,
regulatory and industry standards.

CLOSING • Red Oak’s internal auditor meticulously reviews the disclosures and
& BEYOND purchase contract to ensure they are in compliance, catching any
potential oversights.

• Sales managers and the legal team are available to support you if
unusual situations arise.

• Post-closing, the team will provide a link to all relevant documentation

pertaining to the home purchase for your records.

• We'll stay in touch well after closing in order to provide you with a wide
variety of resources.
 WORKING TOGETHER

HOW BUYER’S AGENT

COMPENSATION IS DISTRIBUTED

PERCENT TO AGENT’S BROKERAGE PERCENT TO AGENT

THIS SHARE OF THE FEE WORKING 40+ HOURS PER WEEK TO:
HELPS TO COVER: • Identify your needs and establish a strategy that helps
• Dedicated transaction coordinator and achieve your goals.
transaction auditor, both hyper-focused
• Monitor, research and visit homes that may be in line
on local requirements. They manage the
with your goals and report back on the properties.
transaction, ensure documentation is
in compliance with legal requirements, • Stay apprised on the current state of the market,
regulations and all local ordinances. including changes in supply and demand, and educate
you along the way.
• Dedicated support staff, hyper-focused on the
unique inner workings of the East Bay. This • Review disclosure packets, statutory documents, and
includes 2 experienced sales managers and reports often provided by the seller.
the local owner who are available to support
agents and their clients should issues arise. • Network with other agents for off-market opportunities
(not yet publicly marketed).
• Ongoing training to ensure agents are up-
to-date on changes to the market; legal, • Offer strategies and analysis of data, expected offers,
financing, insurance, and point of sale and financing to establish a competitive offer.
ordinances; best practices in negotiation and
• Meet with inspectors.
contract management; and other factors that
impact your success. • Meet with appraisers to provide comps, data and any
other information needed to ensure a smooth close.
• Maintaining brand reputation is a key factor
to a transaction's success and creating trust • Proactively manage transactions to avoid potential issues.
between other brokerages.
• Maintain communication throughout escrow (and
• Software platforms (communication, finance, beyond) with other professionals who can help ensure a
and legal compliance). successful close (listing agents, loan officers, insurance
brokers, escrow officers, inspectors, etc.).
• Operations team, facilities, accounting services,
liability insurance and local business taxes. • Mandatory fees (Realtor, MLS which provide training
and access to legal forms).

• Risk management insurance (E&O).

• Risk management legal services.

• Continuing education to ensure proper training on all

facets of the market and beyond.
 WORKING TOGETHER

STATISTICS
Red Oak's exclusive analytics tools use over two decades of data to help forecast trends and ensure
you are well-prepared to compete.

AVERAGE % DIFFERENCE ORIGINAL LIST vs SALE PRICE AND DAYS ON MARKET – 2023
INNER EAST BAY SINGLE FAMILY HOMES BY SALE PRICE

20%
% DIFFERENCE LIST vs. SALE PRICE

29 DAYS ON MARKET
30
17% OVER LIST
16% OVER LIST
15% 25
21 DAYS ON MARKET 21 DAYS ON MARKET

20

10%
15

DAYS ON MARKET
10
5%
3% OVER LIST
5

0% 0

BELOW $1M $1M – $2M OVER $2M

MEDIAN SALE PRICE OF SINGLE FAMILY RESIDENTIAL HOUSES – 2023

BY CITY, BY BEDROOM

CITY 2 BEDROOM 3 BEDROOM 4 BEDROOM

Alameda $1,000,000 | -14% YOY $1,350,000 | -10% YOY $1,587,500 | -7% YOY

Albany $1,225,000 | 5% YOY $1,350,000 | -11% YOY $1,900,000 | 19% YOY

Berkeley $1,150,000 | -16% YOY $1,500,000 | -9% YOY $1,875,000 | -13% YOY

Castro Valley $830,000 | 1% YOY $1,055,000 | -8% YOY $1,400,000 | -7% YOY

El Cerrito $925,000 | -14% YOY $1,170,000 | -8% YOY $1,435,000 | -10% YOY

Hayward $707,500 | -3% YOY $865,000 | -3% YOY $1,150,000 | -4% YOY

Kensington $1,254,000 | -4% YOY $1,505,000 | -11% YOY $2,052,500 | 21% YOY

Lamorinda $1,222,500 | -2% YOY $1,600,000 | -7% YOY $2,054,250 | -7% YOY

Oakland $724,500 | -3% YOY $983,500 | -11% YOY $1,400,000 | -7% YOY

Piedmont $1,375,000 | -8% YOY $2,172,000 | 2% YOY $2,600,000 | -20% YOY

Richmond $585,000 | -3% YOY $657,000 | -11% YOY $760,000 | -12% YOY

San Leandro $750,000 | -8% YOY $840,000 | -7% YOY $980,000 | -11% YOY

W. Contra
$545,000 | -1% YOY $680,000 | -6% YOY $802,500 | -3% YOY
Costa County

Source: MLS, single family homes

 WORKING TOGETHER

EAST BAY SELLERS

Red Oak's exclusive data can reveal current contract trends

NUMBER OF OFFERS BY DISCLOSURE COUNT – RED OAK BUY/SELL TRANSACTIONS – 2023

AVG
The more disclosure packets 9 OFFERS
that are handed out on a
listing, the more offers it
AVG
can expect to receive. More 6 OFFERS
packets usually result in
higher prices and better AVG
terms, but some properties 4 OFFERS
receive more – or less – than AVG AVG
1 OFFER 3 OFFERS
what you see here. AVG
2 OFFERS

1 PACKET 2–10 PACKETS 11–20 PACKETS 21–30 PACKETS 31–40 PACKETS 40+ PACKETS

PERCENT OF TRANSACTIONS CASH vs. LOAN – 2023

59%
The majority of buyers use 76% 75% LOAN
a mortgage, yet we also LOAN LOAN
know how many compete
with cash and how that can
impact your offer.
41%
25% CASH
24%
CASH CASH

BELOW $1 M $1–2M OVER $2M

CONTINGENCIES ON RED OAK TRANSACTIONS – 2023

APPRAISAL

71% NO CONTINGENCY
90% NO CONTINGENCY 91% NO CONTINGENCY
The higher the sale price, the 29% WITH CONTINGENCY
less likely the winning offer
INSPECTION
will include a contingency.
I will help you navigate 60% NO CONTINGENCY
84% NO CONTINGENCY 81% NO CONTINGENCY
the instances you can offer 40% WITH CONTINGENCY

without one, and what the

LOAN
potential risk could be for you.
68% NO CONTINGENCY
90% NO CONTINGENCY 93% NO CONTINGENCY
32% WITH CONTINGENCY
BELOW $1 M $1–2M OVER $2M

Source: Red Oak internal data

 WORKING TOGETHER

Market
Process Compensation
Education

THE SEARCH

Viewing Select Your Pre-Approval

Dos & Don’ts Who Pays What
Properties Lender & Taxes

W RI T I NG T HE OFFER

Disclosure Inspections &

Contingencies Insurance Title
Review Ordinances

CONTRACT & CLOSING

Getting Wiring Funds Finalizing After the

Holding Title Signing Docs
Ready (& Fraud) the Loan Close

W E LCO M E H O M E !
 THE SEARCH

VIEWING PROPERTIES
Searching for a new home can be exciting and fun! But each buyer’s search is completely different.
Your search will be customized to meet your exact needs. Together we’ll consider things such as:

YOUR PREFERRED
METHOD OF YOUR TIMELINE YOUR BUDGET
COMMUNICATION

THE HOME’S YOUR PREFERRED THE TECHNOLOGY

AMENITIES THAT ARE NEIGHBORHOODS YOU PREFER TO USE
IMPORTANT TO YOU AND CITIES TO FIND PROPERTIES

We will meet at properties in order to further refine your search and point out details you might not
notice, including condition, future possibilities and more.
Combined with visiting Saturday and Sunday open houses, you will find a home you love!
 THE SEARCH

HOMEBUYER DOs & DON’Ts

You may have questions about buying a home. This quick list of dos and don’ts will help you be
prepared and navigate the process.

BEFORE WE BEGIN

DOS DON’TS
Do work with an agent you trust and and sign an Redfin and Zillow will ask you to sign generic broker
exclusive buyer agreement with them. Follow their representation forms prior to showing a home, and these
advice. East Bay Realtors are very skillful, so be sure to documents can be confusing. We recommend that you
work with a professional. don't use them to schedule showings. Instead, work
directly with me as your agent.
Do ask for our list of preferred lenders – to be
competitive, it is important to work with a local Don’t rely on the real estate recommendations of family
mortgage broker. members (unless they are local professionals).
Do continue to pay your bills on time to keep from Don’t sign multiple buyer agreement forms with multiple
compromising your loan approval and purchasing agents as you could end up paying multiple commissions.
ability. You can interview multiple agents and find the best fit, but
working with one agent will allow you to truly get the best
Do ask questions, always. There is no such thing as a results. The relationship you are building will allow that
dumb question. agent to serve you in a greater capacity.

SEARCH

DOS DON’TS
Do stick to your home buying budget, but be flexible Don’t be critical about the home at a public open house
about what that can get you. It helps to have a or ask questions about the condition (foundation, seismic,
wish list of everything you’re looking for in a home roof). We will get those answers for you at the appropriate
separated by “must haves” and “nice to haves.” time.

Do refine the cities in which you want to buy. If you cast Don’t speak negatively about the house in front of the
too wide of a net, you might miss out on opportunities listing agent at a public open house, and be cautious in
that become visible from a more narrow search. front of doorbells with cameras (like Ring or Nest) – some
sellers do watch.
Do ask about the differences between single family
homes and condos (if you are trying to decide). Don’t wait several days to let us know about a property
you are interested in. Some properties take offers after
Do read disclosure packets and ask questions. This only a few days on the market! We stay in touch with the
ensures you’re prepared to eliminate properties that listing agent and can sometimes make a preemptive prior
are not a good match for you. to the scheduled date and head off the competition.
Do go to open houses every weekend if possible and Don’t cancel any long standing bank or credit card
communicate the good, bad and ugly to us. It helps accounts. Established credit is important, whether you
to understand your style, and watching where those use it or not. And make sure to stay on top of monthly
homes sell can help you understand the market. (When payments.
you’re touring, stay friendly with the open house
agent and let them know you are working with us). Don’t make any large purchases or get a bank loan (like
buying a car) during your search – or during escrow -
Do reach out as soon as you see a property that before running it by your mortgage broker to see how it
interests you – call, text or email. impacts your purchase power.

Do be open to new opportunities - this is a dynamic

market and quick moves may be required.
 THE SEARCH

HOMEBUYER DOs & DON’Ts

OFFERS & ESCROW

DOS DON’TS
Do read the purchase contract before making offers Don’t write an offer on a property if you are not totally
so you understand what you're signing. We may need sure about it. You don’t want to cancel after an offer has
to move quickly and this will reduce pressure when been accepted.
the time comes.
Don’t write an offer on a property when you’re likely to
Do look up the city permit file for every house you be in the lower half of the offers – high numbers of offers
are considering. You’ll often learn what disclosures can drive up the price for both the individual property and
may not immediately reveal. impact the neighborhood.

Do call an insurance broker to check on the costs of Don’t schedule movers or give notice to your landlord
insurability before making an offer on a home. when you get into contract. Wait until the move date is
confirmed in case there are delays.
Consider the long term. If you’re in a home for more
than 5 or 10 years, whether you buy at the top or Don’t wire money without verifying instructions via a
bottom of the market, the home will likely appreciate phone call to your escrow officer. Ever! Wire scammers
over time. could be after your funds.

Do have 3% of your offer price ready in a checking Don’t keep looking at properties after you have closed
account. You may need to send a wire the moment escrow – enjoy your new home!
you get into contract.

Do stay in communication with us, especially if you

have any planned trips while you’re in escrow.
 THE SEARCH

WHO PAYS WHAT

Generally speaking, the seller and buyer are expected to pay for the following:

SELLER BUYER
• Document preparation fee for deed • Title insurance premiums
• Payoff of all loans secured by the property • Escrow fee
• Interest accrued to old lender, statement fees, • Document preparation (if applicable)
reconveyance fees, and any prepayment penalties • Notary fees
• The Natural Hazards Disclosure Report • Recording charges for all documents in buyer’s
• Recording charges to clear all documents of name
record against seller • Property tax proration (from date of
• Proration for any property taxes owed at time of acquisition)
transfer • Interest on new loan from date of funding to
• Homeowner association required end of the month
documentation and unpaid dues • Appraisal
• Any and all judgments, tax liens, delinquent • Assumption/change of records fees to take
taxes, city fees, or other municipal liens over existing loan
• Notary fees • Buyer closing costs
• Any bonds or assessments due and payable • Additional inspections if necessary
• Any other inspection elected for the sale prior to • Note that you will receive a supplemental
marketing (roofing, property inspection, pest, etc.) tax bill after closing. Carefully review the
explanation given by your escrow officer at the
THE SELLER CUSTOMARILY PAYS: time you sign closing papers.

• Real estate commissions to Listing Agent

THE BUYER CUSTOMARILY PAYS:
• Half of any city transfer/conveyance tax
(according to contract) • Homeowner association transfer fee
• County transfer tax • Half of any city transfer/conveyance tax
(according to contract)
• Inspections

In some cases, sellers are willing to pay a concession that can be used
for items like buyers agent fees and closing costs.
 THE SEARCH

SELECT YOUR LENDER

If you will be using a loan to purchase your property, finding the right lender is a very important part
of the process. Listed below are some characteristics you should look for – or avoid.

Do you have experience Who does your

What is your availability?
working in the East Bay? appraisals?

How do you
Do you meet face-to- Are you a retail lender,
communicate during
face with clients? broker, or direct lender?
the transaction?

How fast can you close Will you provide Do you fully underwrite
a purchase transaction? personal support? your preapprovals?

Are you trusted by East Don’t be lured in by If it sounds too good

Bay Realtors? a low rate quote. to be true, it probably is.
 THE SEARCH

GET PRE-APPROVED
If you’re going to shop for lenders, do so before you write your first offer. That’s because your offer
will include a pre-approval letter from your lender, and a tight escrow timeframe may not allow you to
switch in the middle of the process.
The strongest pre-approvals are based on a full pre-underwriting of your income, credit and assets and
cover the various purchase scenarios for which you are qualified. Through this process, you’ll learn about
the loan programs, estimated costs of ownership, and your maximum purchase power.
• Do not be concerned if, during your lender search, more than one lender obtains a credit report on your
behalf. While the number of inquiries is a factor in determining your credit score, it is a very minor piece.
Consumers with solid credit should not be concerned with multiple inquiries by mortgage companies.
• Be prepared to provide complete personal financial documentation including tax returns and W-2s.
• It is important to communicate clearly with your lender regarding your employment history, credit issues
and the source of your down payment.
When you write an offer, your Realtor will ask the lender to write a pre-approval letter. This will be
included with the offer and will confirm the amount the lender is willing to lend to you in order to
purchase that specific property. A letter from a good, reliable lender can help you get your offer accepted.
You should be prepared to provide the following information when completing the pre-approval
application.

PERSONAL INFORMATION:
Your full name(s)
Social Security number(s)
Age(s)
Years of schooling
Marital status
Number and age of dependents
Current address and telephone numbers
Email address
Addresses for the past two years (if more than one)
Current housing expenses (rent, mortgage, insurance, taxes)

EMPLOYMENT HISTORY AND INCOME

Two years of employment history, with complete details of each job
Recent pay stubs and two years of W-2 forms
Complete and filed federal tax returns
Written explanation of employment gaps
Proof of other income
 THE SEARCH

ASSETS
Two months of bank statements – all pages, even those with no meaningful
information on them
Two months of investment account statements – again, all pages
Two months or most recent quarterly statement(s) for retirement accounts
Addresses of any real estate you own, plus mortgage statement(s) and homeowners
insurance

LIABILITIES AND DEBTS

Authorization for your lender to obtain a credit report on your behalf
Let your lender know if you’ve had any significant credit difficulties in the past (e.g.
bankruptcy, short sale, foreclosure)

OTHER
Divorce agreement/dissolution as finalized and approved by the court
Copies of drivers’ licenses or other identification

LOAN APPLICATION CHECKLIST

REVIEW MORTGAGE DISCLOSURES
• Once you are in contract, your lender will help you finalize the loan. They will disclose the terms of the
loan, including closing costs, within 3 days of the day your offer is accepted. The costs that you see on
your loan estimate generally cannot exceed these estimates, unless there are changes to the terms of
your purchase; for example, a change to price or loan amount.
• Let your lender know if any corrections or changes to the application are needed.

VERIFICATIONS AND UPDATING YOUR DOCUMENTATION

• Your lender will ask you to provide updated documents, often including updated pay stubs, account
statements, and online banking reports showing how your funds for down payment move between
your accounts on their way to escrow. They will also request an updated credit report and verifications
of employment as needed.
• Anti-money laundering regulations require your lender to determine the source of money transfers and
large deposits.
• Do not take on any additional debt or change employment before close of escrow. If an unanticipated
change in your employment does come up during escrow, let your lender know right away.
 THE SEARCH

COMPONENTS OF A
MORTGAGE PAYMENT
Your monthly cost of ownership is made up of several components, commonly referred to as “PITI”

P RINCIPAL AND I NTEREST

Nearly all mortgages are fully amortizing loans, which means that your monthly payment:
• Repays a portion of the principal
• Pays the interest that accrued on your balance

T AXES*
Property taxes are made up of ad valorem taxes, which are a percentage of the assessed value
(usually the sales price), and fixed charges and/or special assessments.
Taxes can be collected in two ways:
• With your mortgage payment via an impound account (see note below)
• Semi-annual bills, which you pay yourself. They are due twice a year:
→ November 1 (penalty due if paid after December 10)
→ February 1 (penalty after April 10)
(Come down to the county tax collector’s office on those days to see the crowd paying right at the deadline!)

I NSURANCE*
Hazard: Pays for loss on a home from certain hazards including fire. Talk to your insurance agent
about the different types of insurance available.
PMI: Private mortgage insurance (PMI) is required for some loans. In some cases where PMI is
required, buyers can pay an upfront fee through escrow to avoid the monthly PMI payments. Ask
your lender about this option.

P I
Homeowner’s association dues are an additional monthly cost of
ownership if you buy a condominium. HOA dues are paid monthly or
quarterly depending on the association, and are paid directly to the
association.

T I
*Taxes and insurance may be placed in an impound account. This is a trust account set up by the lender who will collect one-twelfth of your annual property
tax and homeowner insurance costs each month and will pay your property taxes and insurance renewal bills on your behalf, reporting to you each month
and each year how and when your money has been allocated to those costs of ownership. An impound account may be required for certain loans including
all FHA loans and conventional loans with down payments of 10% or less.
 THE SEARCH

TAX SAVINGS
Portions of your monthly home payments are tax-deductible; others are not.

THE INTEREST PORTION

of your monthly mortgage payment is tax deductible

MORTGAGE DISCOUNT POINTS

optional extras that you pay to reduce your mortgage rate when you set up
a home loan – are also generally tax deductible

POINTS PAID
to agencies or brokers are not deductible

You can consult your tax advisor to determine specific tax deductibility for your personal financial
situation, but in the meantime you can use Red Oak’s interactive worksheet to estimate your tax
savings on an owner-occupied home. Speak with your agent to receive access to your worksheet.
Tax savings assume that you qualify for a home interest deduction and that you itemize your taxes on
Schedule A of your federal tax return. The maximum mortgage debt for which interest is deductible is
limited to $750,000 (as of January 1, 2019). Total tax savings may be less for higher incomes that have
their allowable itemized deductions phased out. Your total tax savings may also be reduced if you
prepay your loan.
Again, we strongly recommend that you speak with your tax advisor for more information about your
specific scenario.
 THE SEARCH

TRANSFER TAXES
Most East Bay counties and cities impose transfer taxes on most real estate transactions. Transfer taxes
are calculated, collected and paid through escrow. The following table is helpful in estimating your
closing costs whether you are a buyer or a seller.

COUNTY TRANSFER TAXES USUALLY PAID BY THE SELLER

ALAMEDA AND
$1.10 PER THOUSAND OF THE SALE PRICE
CONTRA COSTA

IN ADDITION TO COUNTY TAXES AND USUALLY SHARED

CITY TRANSFER TAXES
EQUALLY BETWEEN BUYER AND SELLER

CITY OF ALAMEDA AND

$12 PER THOUSAND
EL CERRITO

ALBANY $15 PER THOUSAND

$15 PER THOUSAND UP TO $1.6M

BERKELEY
$25 PER THOUSAND OVER $1.6M
$12 PER THOUSAND UP TO $1M
EMERYVILLE $15 PER THOUSAND $1M-$2M
$25 PER THOUSAND OVER $2M

HAYWARD $8.50 PER THOUSAND

$10 PER THOUSAND UP TO $300K

$15 PER THOUSAND FOR $300K TO $2M
OAKLAND
$17.50 PER THOUSAND FOR $2M TO $5M
$25 PER THOUSAND OVER $5M

PIEDMONT $13 PER THOUSAND

$7 PER THOUSAND UP TO $1M

$12.50 PER THOUSAND FOR $1M TO $3M
RICHMOND
$25 PER THOUSAND FOR $3M TO $10M
$30 PER THOUSAND OVER $10M

SAN LEANDRO $11 PER THOUSAND

Example: The City Berkeley currently has the highest transfer tax rate. Using customary terms, the
transfer taxes on a $500,000 property in Berkeley would be calculated by your escrow officer as follows:
COUNTY AND CITY
BUYER SELLER
TRANSFER TAXES

ALAMEDA COUNTY BUYER DOES NOT CONTRIBUTE $1.10 X 500 = $550

FULL CITY TAX IS: FULL CITY TAX IS:

$15 X 500 = $7,500 $15 X 500 = $7,500
CITY OF BERKELEY
BUYER’S SHARE IS: SELLER’S SHARE IS:
50% OF $7,500 = $3,750 50% OF $7,500 = $3,750

TOTAL TRANSFER TAX PAYMENT $3,750 $4,300

Note: For estimation purposes only

 WORKING TOGETHER

Market
Process Compensation
Education

T HE SEA RC H

Viewing Select Your Pre-Approval

Dos & Don’ts Who Pays What
Properties Lender & Taxes

WRITING THE OFFER

Disclosure Inspections &

Contingencies Insurance Title
Review Ordinances

CONTRACT & CLOSING

Getting Wiring Funds Finalizing After the

Holding Title Signing Docs
Ready (& Fraud) the Loan Close

W E LCO M E H O M E !
 WRITING AN OFFER

DISCLOSURE REVIEW
In the Inner East Bay, most sellers and their agents will prepare an extensive packet of information to
provide any potential buyer. This disclosure packet consists of a variety of documents, including:

Statutory documents Permit records (if applicable)

Old historical documents Receipts/work performed

Inspections/reports Details about the subject property

…and more.
These disclosures can often be over 150 pages and have extremely valuable information. However, it
will be difficult for you to understand them without proper advice from your agent.
Prior to you writing any offer, we will analyze disclosures in depth so that you can understand all of
the various documents and how they impact the property.
 WRITING AN OFFER

INSPECTIONS AND POINT OF

SALE ORDINANCES
When you make an offer on a home, the contract will usually contain provisions for you to make
physical inspections of the property. If the reports are unsatisfactory, the contract may allow you to
withdraw from the agreement. You may also attempt to renegotiate the terms, but the seller is under
no obligation to make repairs or reduce the purchase price.
There are three main types of inspections:

S T RU C T U RA L P EST CONT ROL I NSP EC T I ON

Often referred to as a termite or pest report, this inspection is conducted by a licensed
inspector. In addition to termite damage, the report will indicate any type of wood-
destroying organisms that may be present, including fungi (sometimes called “dry rot”),
which generally result from excessive moisture.
Most pest reports classify conditions as Section 1 or 2.
• Section 1 conditions are “active:” they are currently causing damage to the property. The
affected items are considered to be in need of urgent repair.
• Section 2 conditions are not currently causing damage but are likely to if left
unattended. A typical example would be a plumbing leak where moisture has not yet
caused decay.

Who pays?
Your contract will specify who is responsible for the cost of the inspection and making
corrections. A seller typically provides a pest inspection with their disclosure documents, but
you may want to have a second opinion or an updated report.

Does this work have to be done?

Most lenders do not require a “clearance” of report items, which certifies that damages have
been repaired. However, if you have a specific loan product – a VA, for example – clearance
is required to close escrow. For loans that require clearance of the pest report, the cost of
repairing pest damage can often be negotiated and then deducted from the sales price or
applied to your closing costs.
 WRITING AN OFFER

P H YS I C A L I NSP EC T I ON
A physical inspection clause allows you to have the property thoroughly inspected, usually
through a general home inspection. While home inspectors are not required to have a
license, most are, or have been, general contractors. The resulting report provides an overall
assessment of the present condition of the property. Because of the liability involved, we
only recommend inspectors who are members of American Society of Home Inspectors
(ASHI) or the California Real Estate Inspection Association (CREIA) and carry insurance and
accreditation.

What is inspected?
A home inspection covers items such as exterior siding, paint, flooring, appliances, water
heater, furnace, electrical service, plumbing and other visible features of the property.

Further inspections
The home inspector may recommend further inspections such as structural engineering,
roof, electrical and plumbing. These additional inspections identify unsatisfactory conditions
and provide detailed recommendations for corrections and cost estimates.

Who pays?
Inspections ordered on the buyer’s behalf are typically paid by the buyer. Sellers will often
procure reports in advance of a sale and provide them to the buyer in the disclosure package.

P OI N T OF SA LE REQUI REMENT S
When a property changes hands, the State of California and East Bay authorities impose
health and safety obligations. The list is long and continuing to grow. You will be provided
with an appropriate addendum to the sales contract that will explain what is required for
your home. Typical conditions to be addressed include:
• Sewer lateral condition
• Automatic gas shut-off valves
• Energy conservation measures
• Smoke alarms
• Carbon monoxide detectors
• Water-conserving plumbing fixtures
• Water heater strapping
• Sidewalk repairs
 WRITING AN OFFER

CONTINGENCIES
If included in the contract, contingencies are conditions that must be met in order to complete the
sale of the home.

B U Y E RS SELLERS
Contingencies provide securities that Contingencies represent instances where
will allow a buyer to cancel the contract buyers can cancel or attempt to renegotiate
and collect their deposit if certain terms of the contract, like price. Therefore,
conditions are not met. sellers prefer few or no contingencies,
which shifts most of the risk to buyers.

If contingencies are not met, the contract can be canceled. However, if the buyer has contingencies
which have not been removed, the contract can be canceled. There are no unrestricted escape
clauses in the CAR purchase contract.
These are typical contingencies, which may or may not be included in your contract:

P ROP ERT Y COND I T I ONS

• Physical condition of property
• Review of reports and disclosures from seller
• Review of HOA documents for condos/TICs, if there are any
• Determination that the property is insurable
• Review and acceptance of the preliminary title report
In the event that you waive your contingencies but then discover a defect in the
house and want to cancel, you could risk losing your initial deposit.

APPRAISAL
In order to clear an appraisal contingency, a licensed real estate appraiser, hired by the lender, needs
to find that the fair market value is at least equal to the contractual purchase price.

FINANCING
Even though you are pre-approved, the financing contingency requires that the entire loan package is
approved by the lender’s underwriting department.
 WRITING AN OFFER

INSURANCE
PROPERTY INSURANCE
Insurance is a very volatile subject in the Bay Area - and all of California as well. Some properties are
difficult to insure, and insurance is required if you have a mortgage.
Understanding this topic is vital to successfully purchasing a home, not only for your offer to be
accepted but for you to be able to close escrow.
Getting in touch with an insurance agent who is knowledgeable, reputable and local will be the first
step through this process. Through my guidance, I will ensure you get the names of these contacts.
They can explain not only the insurance factors of a home located in a fire zone, but certain property-
specific criteria that could affect your ability to get insurance - for example, electrical systems, roofing,
plumbing, HVAC.
Doing this type of investigation upfront, prior to even writing an offer, will provide you comfort, ease
and a smooth close of escrow.

TITLE INSURANCE

• Resolving liens: Typical liens are debts, like loans, taxes or judgments. Your title insurance
company will research any claims, which will be listed in the title report. If any are
uncovered, the seller will pay for their resolution so that you can hold a clean title.
• Easements: Some rights will not be eliminated and will continue to affect your land.
Typically this is an easement, which is the right for a person to make use of the land.
Common easements include:
→ Utility companies to run lines across the land and to service those lines when needed.

→ The right to travel across one parcel to gain access to another.

It is important to know about these scenarios and to investigate them further if you consider them
to be problematic. A preliminary title report is often included in the disclosure packet which you
will receive from the title company when you enter into contract and open escrow. This will provide
preliminary findings or any potential issues with the property.
Your one-time premium, paid at close of escrow, provides insurance coverage for legal fees required
to defend your rights to the property, and any loss of rights that are covered by the policy. Buyers
who use a loan to purchase a property will be required to buy a policy covering the lender’s rights.
You should also purchase an owner’s policy to cover your costs and rights.
Typically the same company is used for both title insurance and escrow services. Your escrow officer
can provide additional information about title insurance, your title report, and why you should
purchase the insurance.
 WORKING TOGETHER

Market
Process Compensation
Education

T HE SEA RC H

Viewing Select Your Pre-Approval

Dos & Don’ts Who Pays What
Properties Lender & Taxes

W RI T I NG T HE OFFER

Disclosure Inspections &

Contingencies Insurance Title
Review Ordinances

CONTRACT & CLOSING

Getting Wiring Funds Finalizing After the

Holding Title Signing Docs
Ready (& Fraud) the Loan Close

W E LCO M E H O M E !
 CONTRACT & CLOSING

CONGRATULATIONS, YOU’RE
IN CONTRACT! NOW WHAT?
BE PREPARED FOR NEXT STEPS
Congrats! You are in contract. This is an overview of the next steps:

1. We will open escrow

2. You will wire your initial deposit (typically 3%) into escrow

3. If you are financing the property, your lender will get started, order your
appraisal and begin requesting more documents from you to finalize
the loan

4. Escrow will send you an opening packet where you will answer how you
plan to hold title

5. The loan will get finalized, you will sign your loan papers with a notary
which escrow will coordinate, and the county will then record you as the
new owner of record!
 CONTRACT & CLOSING

WIRING FUNDS &

AVOIDING FRAUD
The incidence of wire fraud is on the rise. So while wiring or electronically transferring funds is a
welcome convenience, we all need to exercise extreme caution.
Escrow will only communicate wire instructions through their own encrypted portal. They will send
you an introductory email asking for your phone number and then send you an invitation to create
a login for the portal. All important conversations and instructions will be through this – never just
an email and definitely not a call. Emails may appear legitimate – even with the title company’s
email information and logos – but attempt to redirect the funds to a different account. If you are ever
concerned, reach out immediately and do not wire anything until information is validated.
Some hackers provide false phone numbers for verifying the wiring or funds transfer instructions. In
those cases, the victim calls the number provided to confirm the instructions, and then unwittingly
authorizes a transfer to the perpetrator.
To protect yourself, keep these important notes in mind:
• You will never receive wire instructions – or changes to previously provided wire instructions – from
Red Oak Realty, the escrow company or your mortgage broker.
• Never wire funds without calling your escrow officer. When you contact the escrow officer, do not use
the number that was emailed to you. Only use the phone number that was originally provided to you
by a confirmed and trusted source.
• Avoid sending personal information in emails or texts.

If you believe you have received suspicious wire transfer instructions, immediately notify your bank,
your agent, the other party, and the escrow office. You may also contact:
• Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) at www.ic3.gov or 310.477.6565
• National White Collar Crime Center: www.nw3c.org
• On Guard Online: www.onguardonline.gov
 CONTRACT & CLOSING

FINALIZING THE LOAN

T HE A P P RA I SA L
In addition to obtaining the preliminary title report, the lender will request that a licensed
appraiser visit the property to:
• Analyze the property and compare it with others to determine an appraised value
• Confirm that the property meets local standards (e.g. CO and smoke alarms)
• Confirm that there aren’t any obvious health and safety issues
Your financing will be based on the purchase price or the appraised value, whichever
is lower.

LOA N A P P ROVA L (U N D E RW R I T I N G)
The lender’s underwriting department makes the final decision in the loan process. They
will review the loan package and the property, which takes 1-3 business days. In order
to complete this process and issue final approval, they may require that you meet certain
conditions, such as:
• Verification of your chosen homeowner insurance policy
• Final employment verification (done no more than 10 days before closing)
• Final credit check to see if any new accounts have opened or if balances and required
payments have changed
• Confirmation that all funds are liquid

C LOSI NG
Once all buyers have signed the loan documents, they are returned to the lender’s
underwriting department for review. Once approved, the lender wires the loan funds to
the escrow account and the deed is recorded. This process takes 2-3 business days,
on average.
 CONTRACT & CLOSING

HOLDING TITLE IN CALIFORNIA

There are 3 primary ways to hold title in California. Brief descriptions are provided below, and more
details are available from your escrow officer and at www.rore.me/CABRERefBook.

ON YOUR OWN
• Sole And Separate Property: An individual can hold title as his/her sole and separate property. A
married person or registered domestic partner will indicate their status and declare ownership as their
“separate property.”
• Revocable Living Trust: This option offers several benefits, including avoiding probate costs.

WITH CO-OWNERS
Can one of the Does surviving owner
Who can own it Allowable use Percentage of
owners sell his/ inherit a deceased
this way? & possession ownership
her share? owner's share?

JOINT Two or more

All of it Equal only Yes Yes, automatically
TENANTS individuals

All of it unless Equal or unequal

TENANCY IN Two or more No. The share will pass
there is a TIC as shown in the Yes
COMMON individuals as part of the estate.
agreement deed

Only registered
COMMUNITY Only with No. The share will pass
domestic partners All of it Equal only
PROPERTY consent as part of the estate.
or spouses

COMMUNITY Only registered

PROPERTY WITH Only with
domestic partners All of it Equal only Yes, automatically
RIGHT OF consent
SURVIVORSHIP or spouses

AS A LEGAL ENTITY
The rights of individuals with an interest in an entity – such as a Trust, Corporation, Partnership and
Limited Liability Company (LLC) – are set in their own governing documents.

Consult your attorney or tax advisor about the consequences of each option.
 CONTRACT & CLOSING

THE FINAL STEP

S I GNI NG D OC UM ENT S
Once the loan is approved, the lender will prepare and send your loan documents to the
escrow officer at the title company. They will contact you to:
• Set up an appointment to sign loan documents (loan or closing documents cannot be
signed digitally and need to notarized. You can do this in person at the title company or
pay to have a notary come to your office or home after hours).
• Inform you of how much money you will need to deposit into the escrow account. Keep
in mind that you will need to bring a cashier’s check or complete a wire transfer – no
personal checks can be accepted.

S U P P L EM ENTA L TA X BI LL
The escrow company will apportion the tax payments between buyer and seller right
up to the date that the new deed is recorded. One issue, however, will not be resolved:
The buyer will pay taxes at the seller’s old rate until the County Assessor catches up and
reassesses the value of the property under Proposition 13.
This delay is not a free ride. Eventually the Assessor will retroactively calculate the
difference between the two rates and bill for the difference with a supplemental tax
bill. Because this often takes some time, it may come as a surprise. While it’s possible to
calculate the approximate dollar difference between the two rates, the missing factor is
the number of days. Of course a longer delay will result in a larger tax bill. Bills will come
through the US Postal Service, so please watch for them in your mail.

I LOOK FORWA RD TO BEI NG A RESOURC E FOR YOU

Now you are a successful home owner! Congratulations! Some would say this is where
the fun really begins.
It's important to be available for you well after you’ve completed your purchase. You may
decide you want to do a kitchen project. Or perhaps you need to make a chimney repair
or hire an arborist to prune your trees. We have hundreds of local tradespeople and
contacts to refer to you.
Beyond the referral pool, you may have questions about home projects that can add
value for the future. Reach out any time!
WELCOME HOME!
 ABOUT RED OAK

2023’S LARGEST INDEPENDENT

BROKERAGE IN THE INNER EAST BAY

TOTAL 875 + $1+ B I L L I O N I N

PRODUCTION TR A N S AC TI O N S D O L L A R VO LU M E

LARGEST
OVERALL EL CER R ITO K EN S I N GTO N
BY CITY

LARGEST
BROKERAGE A L B A NY B ER K EL E Y OA K L A N D R I CH M O N D
BY CITY

ALBANY ARLINGTON EL SOBRANTE

BELLA VISTA
HILL HILLS HILLS

JUNCTION MAY KENSINGTON

FAT APPLES
HEIGHTS VALLEY CIRCLE

EL CERRITO
LIVE OAK MIRA VISTA MOSSWOOD
MIDTOWN
LARGEST
BROKERAGE BY
NEIGHBORHOOD
EL CERRITO NORTH
PARADISE PARK NORTHBRAE
PLAZA SHATTUCK

THOUSAND UPPER
PULLMAN RALPH BUNCHE
OAKS KENSINGTON

RESERVOIR SHEFFIELD
WEST BERKELEY WESTBRAE
HILL VILLAGE

Source: MLS
 ABOUT RED OAK

THE EAST BAY SPECIALIST

OUR 160+ AGENTS CLOSED OVER 1,000 TRANSACTIONS WORTH
OVER $1B IN 2023.

In today’s competitive East Bay real estate market, it pays to work with agents who are supported by
a team that has mastered its complexities and is ready to take on any challenge.

2023
2022
2021
2020

Red Oak transactions, 2020-2023

 ABOUT RED OAK

MOVE DIFFERENTLY
Red Oak is dedicated to doing the right thing. Each team member is empowered to help
clients achieve their goals by providing expert skill and unparalleled support through
community and collaboration. Harnessing these profound relationships, the company
will continue to innovate and upgrade efficiencies, creating a sustainable and humane
real estate solution for the future.
– Red Oak Vision

45+ YEARS OF HISTORY – Red Oak was founded in a garage in Albany in 1976, and we have
grown to become the largest independent brokerage in the East Bay with over 160 agents and 18
staff members.

LOCAL + INDEPENDENT – Red Oak doesn’t believe in following the status quo. That’s one of
the reasons we have specifically chosen to stay independent. Not only can we respond quickly to
local dynamics, we answer to our East Bay clients - not corporate headquarters in another state.
We remain singularly focused on supporting our East Bay communities. We think that passion, local
insight and individualized attention gives our clients a unique advantage.

ENGAGED LEADERSHIP – As a 100% female-owned company, our engaged leadership team

is based right here in the East Bay. As a result, clients and agents have direct access to a team of
experts who help guide them to make the best real estate choices available and are prepared to do
what it takes to make your real estate journey successful.

ENVIRONMENTALLY RESPONSIBLE – BEST

We’re the first brokerage in the Bay Area to
be both carbon-neutral and green-certified.
BROKERAGE
NAMED THE BEST BROKERAGE
Each Red Oak office is green-certified

#10
IN THE EAST BAY BY READERS
through the California Green Business OF OAKLAND MAGAZINE
2015–2024*
Network and we purchase carbon offsets
that fund projects like landfill gas capture, AMONG THE LARGEST
EAST BAY WOMEN-OWNED
clean energy from wind farms and capture COMPANIES (2022, SF

#314
methane. It’s just a first step in protecting BUSINESS TIMES)
our planet.
AMONG THE LARGEST
INDEPENDENT BROKERAGES
IN THE NATION
(2024, REALTRENDS)

*2022 was a “Top 5” award

 ABOUT RED OAK

OUR TEAM
WHEN YOU WORK WITH RED OAK, YOU’LL HAVE ACCESS TO A DEDICATED
TEAM OF FULL-TIME REAL ESTATE PROFESSIONALS WHO HAVE A PERSONAL
INTEREST IN YOUR SUCCESS

NEGOTIATION & STRATEGY

VANESSA BERGMARK – OWNER & CEO
With over 20 years of experience running residential brokerage sales teams in the East Bay
and a masters in law, mediation and conflict resolution, Vanessa is consistently named among
top real estate professionals in the country by national organizations such as Inman News,
RISMedia and T3 Sixty.

NICOLE AISSA – PRESIDENT

Nicole has held leadership positions with some of the most respected Bay Area brokerages
over the past decade. She helps to guide Red Oak’s strategic growth and supports agents
with business development, lead generation and coaching.

MELISSA BUSH – SR VP OF SALES

Over a decade of industry experience providing agents and clients with expert guidance in
complex transactions, including as CEO of the Oakland Association of Realtors, early in her career.

NEGAR SOUZA – SALES MANAGER / REALTOR

Over 20 years of experience as an active and successful real estate agent, she provides an on-
the-ground viewpoint to help clients and agents.

AMAN DARO – CHIEF OPERATING OFFICER

With 25 years of operations and marketing experience at Bay Area brokerages and 10 years
of experience at ad agencies such as Saatchi & Saatchi, Aman leads Red Oak’s marketing
strategy as well as its technology and data innovation.

MARKETING TRANSACTION
Red Oak employs several full time An entire department at Red Oak
marketing professionals who create coordinates each transaction, from the
and manage marketing for agents. This initial listing to the successful close of
includes digital marketing, social media, escrow. We use an online transaction
print media and listing collateral like flyers management system so paperwork
and brochures. The team works closely is handled efficiently, securely and in
with each agent to ensure their listings are compliance with the ever-changing
marketed both strategically and broadly. regulatory environment.
 ABOUT RED OAK

IN THE NEWS
“Red Oak is repositioning itself as ‘a straight-talking, data-driven
brokerage that lives and works in the community they serve while
backing the agent on all fronts,’ said broker owner Vanessa Bergmark.
‘A David and Goliath approach in the world of big brokerages and
Wall Street.’”
– Inman News

FEATURED IN:

ARCHITECTURAL DIGEST

Read more at www.rore.me/redoakpress

 ABOUT RED OAK

CONTRIBUTING TO
EAST BAY COMMUNITIES
RED OAK’S NONPROFIT, THE RED OAK OPPORTUNITY FOUNDATION (ROOF),
HAS DONATED OVER $1,500,000 TO LOCAL CHARITIES

In 1985, the owners of Red Oak Realty sought a way to give back a portion of business earnings
to the communities they serve. That vision continues to this day as a 501(c)3 nonprofit charitable
organization. Grants are awarded annually and are based on need, service to the community, and are
in alignment with ROOF’s goals to support the community. Read more at www.redoak-roof.org.

Here are just a few of the recent grant recipients:

 ABOUT RED OAK

REFERRALS BEYOND
OUR BACKYARD
OUR WORLD-CLASS CONNECTIONS CAN HELP IF YOU OR SOMEONE YOU KNOW
IS INTERESTED IN BUYING OR SELLING PROPERTY BEYOND THE EAST BAY

4,700
550
companies
offices

70+
countries
136,000
sales associates

Red Oak is a proud member of the Leading Real Estate Companies of the World. That means
you have access to over 550 independent brokerages that offer the highest caliber of real estate
professionals in over 70 countries across 6 continents.
Let us introduce you to a carefully selected sales associate who will provide you with extraordinary
service — anywhere your real estate needs take you.