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Seller Orientation Guide




Buyer Orientation Guide

                             Preparation     Search     Transaction




                           www.RandRealty.com
1. Better Homes and Gardens Real Estate | RAND REALTY
Welcome
The Rand Family




          Matthew Rand                         Joseph W. Rand                          Marsha Rand
           Managing Partner              Managing Partner & General Counsel                 CEO




Welcome to Better Homes and Gardens Rand Realty

T
      hank you for giving us the opportunity to work with you on              This Introduction to the Orientation
      the purchase of your home. We look forward to providing                 Guide provides you with
      you the services that have made Better Homes and Gardens                information about Better Homes
Rand Realty one of the largest real estate companies in the country           and Gardens Rand Realty and your
                                                                              real estate agent, and gives you a a
and the leading brokerage in the region.
                                                                              general overview of the purchasing
This Buyer Orientation Guide is our starting point for the delivery           process. Next, Stage One covers
of services to you throughout the process. You will be receiving              your initial agent consultation,
these guides throughout every stage of the purchasing process,                and provides you with information
                                                                              you need to start looking for your
from your initial consultation to your final closing. We’ve designed
                                                                              new home. We generally send the
these Orientation Guides to help deliver a great service experience           Orientation Guides as you enter
to you, by helping you stay informed, engaged, and proactive                  each stage of the transaction,
throughout the transaction.                                                   but if you would like them all in
                                                                              advance, just ask your agent.
The Orientation Guides will have three purposes:
                                                                              We hope you get the chance to
 •	
   First, to fully inform you about what you can expect about each            read through the Orientation Guide
   stage of the transaction.                                                  before your appointment with your
                                                                              agent. If you do not, don’t worry,
 •	
   Second, to let you know what your agent and Better Homes and
                                                                              your agent will cover everything in
   Gardens Rand Realty are doing to help you find the right home.             your meeting.
 •	
   Third, to also let you know what you can do at each stage so               Again, we thank you for the
   that you are fully prepared for what is happening and what lies            opportunity, and look forward to
   ahead.                                                                     working with you.
Buyer Orientation Guide | INTRO | Introduction



About Better Homes  Gardens Rand Realty
When you buy your home, you don’t have to choose between the resources of a big company and the local
expertise of a small neighborhood broker. Better Homes and Gardens Rand Realty gives you the best of
both worlds: a world-class real estate company that is one of the largest in the country and recognized as
industry innovator, and a family-owned local business run by people who grew up here, live here, and are
deeply committed to the communities we serve.




“Big Company” Advantages                                                  “Small Company” Advantages

When you buy your home with Better Homes and Gardens Rand                 When you buy with Better Homes and Gardens Rand Realty, you
Realty, you harness the power of one of the country’s largest and         also get all the benefits of working with a small, family-owned, local
most respected real estate companies, recognized by Real Estate           broker deeply committed to the neighborhoods and communities we
Magazine and REALTOR® Magazine as one of the top 75 real estate           serve. Each of our offices functions as a neighborhood “boutique”
brokerages in the country. Long recognized for its commitment             broker, with its own manager directing operations and a group of
to operational excellence, technological innovation, and market           local agents who live in, work in, and know our communities.
savvy, Better Homes and Gardens Rand Realty provides you with a              • Local Expertise: We know the nuances of our local markets
comprehensive array of cutting-edge tools to help you find a home:             better than anyone else: we know the schools, housing
   • Our proprietary Client-Oriented Real Estate (CORE) systems                styles, history, local regulations, and everything else that
     that ensure operational excellence.                                       can help smooth your transaction and find you the right
                                                                               home. That’s why we are the leading company in virtually
   • The innovative technology on RandRealty.com, providing                    every regional town and village where we operate.
     you with everything you need to search online on your
     computer or mobile device.                                              • Buying Local: Just as you probably like to patronize locally-
                                                                               owned restaurants, shops, and other businesses, buying
   • Communication tools, including immediate email alerts                     with Better Homes and Gardens Rand Realty gives you the
     when homes hit the market or drop their price.                            opportunity to support a local, family-owned company. You
   • Full transactional integration with our partners at Hudson                can be secure that our partners, employees, and agents
     United, to take care of your mortgage, title, and insurance               are just as committed to local businesses as you are, rather
     needs.                                                                    than patronizing a company owned by people out-of-state,
                                                                               who don’t reinvest in our area.
   • On-demand lien searches through our title partner Hudson
     United Abstract, to ensure you do not get into contract on a            • Commitment to Communities: The Rand owners have
     property that will not close.                                             long been supporters of local charities, foundations, and
                                                                               community organizations, taking leadership positions
   • The best “Market Intelligence” in the industry, giving you a
                                                                               in organizations such as Hospice, People to People, the
     competitive advantage over other buyers by keeping you
                                                                               regional Making Strides Against Breast Cancer, and the
     informed about what’s happening in the real estate market.
                                                                               regional American Red Cross. And the hundreds of Better
                                                                               Homes and Gardens Rand Realty agents and employees
Finally, you get the sheer comfort of knowing that you are working             support and contribute to myriad local causes throughout
with the very best real estate professionals in the industry, dedicated        the region.
to ensuring a quality purchasing experience.


    When you get the power of a big company and the intimacy of a small company, you get the best of both worlds:
    the influence of a large, nationally recognized organization combined with the intimacy and local expertise of
    your neighborhood broker.
Buyer Orientation Guide | INTRO | CORE



Introducing Client-Oriented
Real Estate (CORE)
Everyone promises good service. But what systems and tools do they have to ensure delivery on that
promise? A great service experience requires more than just empty promises. You need a plan.




A
        At Better Homes and Gardens Rand        consistent, and high-quality client           3. Information
        Realty, we have a plan for ensuring     experience.                                   At every stage of the buying process, we
        that you have an outstanding home                                                     provide you with advice and guidance
buying experience. For more than five                                                         about everything you need to know about
years, we have made a commitment to                 How We Developed                          searching for a home, obtaining financing,
creating systems, tools, and procedures                                                       negotiating offers, addressing inspection
to ensure that our agents deliver a                   the CORE System                         issues, understanding sales contracts,
consistently high service level to all of                                                     all the way to explaining your closing.
our clients. Our proprietary client care          We developed CORE by studying the cus-      Because information is power, we also
solution is called “Client-Oriented Real          tomer service philosophies of great com-    provide you with the most comprehensive
                                                  panies like Nordstroms, Four Seasons
Estate” (CORE), which is a structured,                                                        analysis of real estate market information
                                                  hotels, Starbucks, and Disney, to find
comprehensive, and rigorous system                                                            available in the industry – what we call our
                                                  common elements that we could incor-
designed to ensure that you have a great                                                      “Market Intelligence” reports.
                                                  porate into the real estate industry.
service experience buying your home,                                                             • Buyer Orientation Guides for every
built around three primary goals:                 We also integrated the lessons gleaned           part of the buying process
                                                  from books like Ken Blanchard’s Raving         • Buying Real Estate – Form Packets
                                                  Fans: A Revolutionary Approach to Cus-           provide an explanation and bound
1. Execution                                      tomer Service, William Capodagli’s The           copy of the legally-required forms
The foundation of the CORE system is              Disney Way, Robert Spector’s The Nor-            for your initial consultation.
the “Buyer Project Plan,” which identifies        dstrom Way to Customer Service Excel-
                                                                                                 • Quarterly Market Reports that give
and lists all the steps taken to find you         lence, Danny Meyer’s Setting the Table,
                                                                                                   you insight into the region, your
the right home. The Project Plan follows          and Atul Gawande’s The Checklist Mani-
                                                                                                   county, and your local market.
industry best practices we’ve identified          festo.
after consulting with hundreds of real                                                        Plus, you’ll also be able to get up-to-date
estate professionals. The plan helps                                                          information available on RandRealty.com,
guarantee a great client experience by          2. Communication                              including our Market Intelligence Blog,
ensuring that agents complete all the           Great relationships require good              Better Homes and Gardens Real Estate
steps correctly with disciplined attention      communication. You’ll see the CORE            video content, and regular updates on
to detail, and by reducing the possibility      system difference at your initial             changing market conditions.
that any steps are missed. In the same          consultation, which will not only provide
way that pilots follow a “pre-flight plan”      you with an overview of our company
to make sure they don’t miss any steps          services and marketing plan, but also         Conclusion
that might endanger their passengers, and       identify your particular needs, concerns,     At Better Homes and Gardens Rand
surgeons follow a “safe surgery checklist”      and goals. Our agents use our “Buyer          Realty, we don’t just want to be the
to reduce postoperative complications,          Consultation Guide” when they have            biggest real estate company. We want
our project plans are designed to               their initial meeting with buyer clients,     to be the best real estate company. And
effectively narrow down your price range        which provides them with all the relevant     we believe that the way to becoming
and preferences, follow industry best           information they need to ensure that they     the leading company in the industry is
practices during your home search, and          achieve a comprehensive understanding         to provide clients with the best possible
to help you complete the transaction.           of what you want and need in your buying      service experience. That’s why we have
Your agent will show you the initial Buyer      experience. Similarly, we’ll keep the         created the innovative CORE program,
project plan during your consultation, but      communication going throughout the            and hope that you see the vast difference
you will also receive the benefit of internal   process, with email alerts from randrealty.   in how we anticipate and satisfy all your
project plans that we use throughout our        com anytime a property hits the market or     home buying needs.
company to ensure attention to detail,          goes through a price change.
reduce errors, and provide an efficient,
Buyer Orientation Guide | INTRO | Your Agent




I Am The World’s Best Real Estate Agent
and I Can Solve All of Your Problems




                                       I Move Homes So
                                      You Can Move Too.
Buyer Orientation Guide | INTRO | Getting Engaged



Introducing Hudson United
Throughout your home buying experience, you’re going to be working not just with your agent but
professionals who will service your lending, title, and insurance needs. You are always free to choose any
service provider you wish, but we encourage you to meet with your representatives from Hudson United,
part of the Rand family of home service companies.




R
        eal estate transactions are
        complicated, with a lot of moving
        parts: real estate brokerage,
mortgage lending, engineering inspection,
legal representation, title insurance, and
home insurance. Unfortunately, those parts
don’t always work so well together. And
when they don’t, what we often think of as
the “American Dream” becomes more like a
nightmare.

Indeed, as the owners of Better Homes
and Gardens Rand Realty, it has long been
frustrating to see clients who otherwise had
a wonderful service experience working
with their Rand agent ultimately came out
of the process miserable and unhappy – not                                                           passionate commitment to Client-
because of anything their agent did, but        abstract companies in the region, closing            Oriented Real Estate (CORE) that we
because the rest of their transaction was so    almost 1,000 transactions every year                 have at Rand Realty, because we’ve
mishandled. The clients might have been         without a meaningful claim from its inception        brought those same CORE principles
thrilled by the work their agent did, but       over 10 years ago.                                   to all our affiliated companies.
walked away from the deal with a sour taste                                                         • One Stop Shopping. You will have
because of transactional delays associated      Hudson United Insurance Group. Our                    a more efficient and fluid transac-
with mortgage processing or title work.         insurance company can provide you not only            tion from the “one-stop shopping”
                                                with the homeowner’s insurance that you’ll            experience that comes from all the
That’s one of the reasons we are delighted to   need at your closing, but with any policies           professionals involved in your deal
be affiliated with the Hudson United family     you need, including auto coverage.                    working together.
of home service companies, which provide                                                            • Increased Accountability. You’ll
mortgage lending, title insurance, and home     We encourage you to work with the                     benefit from the increased account-
insurance to many of our real estate clients.   professionals at Hudson United. As the                ability that your transactional profes-
Perhaps we are “control freaks,” but we are     owners of the company, we’ve applied the              sionals will have not just to you, but
passionate about providing our clients with     same commitment to excellence to these                to your real estate agent, whom they
                                                                                                      need to keep happy if they wish to
an outstanding service experience, and          companies that we used when building a
                                                                                                      continue to maintain that referral
we have found that we cannot ensure that        great real estate company. And just like              relationship.
experience without taking greater control       with Rand Realty, you get a local, family run
over those moving parts of the transaction.     company, dedicated to the people and the
                                                communities in our area.                         As the founders and operators of Better
Hudson United Mortgage. Our full-service                                                         Homes and Gardens Rand Realty, we stand
mortgage brokerage has access to any            Most importantly, by putting all the moving      behind the outstanding service professionals
financial product you might need, and our       parts of the transaction (literally) under one   at Hudson United, the same way we endorse
mortgage officers are available to help guide   roof, we’re able to provide you with a better    the Rand Realty agents who form the
you through the financing process right from    real estate experience – the integrated and      backbone of our network of home service
the initial pre-qualification.                  seamless one-stop shopping experience that       companies. And we hope you will have the
                                                had long eluded our real estate clients:         opportunity to enjoy the one-stop shopping
Hudson Abstract Services. Our title                • CORE Service. When you work with            experience available from their combined
insurance operation is one of the leading            Hudson United, you get the same             talents.
Seller Orientation Guide | INTRO | Getting Engaged



Getting Engaged
The most successful home buyers are people who get proactively engaged in the purchasing process.
Your agent is going to be hard at work finding you the right home, but there are some things he or she
simply cannot do. So throughout this process, we’re going to urge you to stay involved in your transaction,
which is the best way of ensuring that you have a great service experience. The first chance to be
proactive in your purchase is your initial agent consultation.



A
         s you work with Better Homes and
         Gardens Rand Realty, you’ll find         The Three Stages of the Home Buying Process
         that we follow a rigorous set of
project plans to ensure attention to detail.              Stage          What Happens in this Stage?
The plans are the hallmark of our “Client-
Oriented Real Estate” philosophy: a set of                               In Stage One, we’ll help you get
checklists that set out every significant                                started the right wayyou’re your
task involving the purchase of your home                                 home buying experience. You’ll have
from your initial consultation to your                                   your initial consultation with your
closing. We have project plans and to-the-                               real estate agent, which will familiar-
last-detail instructions for everything from                             ize you with the sales process, intro-
identifying your preferences, qualifying for              Stage One:
                                                                         duce you to our service approach,
a mortgage, using randrealty.com, working                 Preparation
                                                                         and determine your needs, goals,
with other professionals, and negotiating
                                                                         and concerns in buying your new
offers. Indeed, the fact that you’re reading
this Orientation Guide is proof that your
                                                                         home. And you’ll also set up the rest
agent is following our Buyer Project Plan.                               of your home buying team, and learn
It’s that kind of attention to detail and                                about all the resources available to
commitment to service that differentiates                                you on RandRealty.com.
Better Homes and Gardens Rand Realty
from other brokers in the area.                                          In Stage Two, your agent will help
                                                                         you maneuver through the market
But it’s not just about us, it’s about                                   as you start your search for your
you. There are simply some things that                    Stage Two:     new home. You’ll learn strategies
your agent cannot do for you, and that
                                                          Search         for finding the right home, get an
you need to do for yourself. The most
successful homebuyers are proactive and
                                                                         overview of the showing process,
engaged in their purchase throughout the                                 and some advice about making the
process.  Indeed, the main purpose of                                    right offers.
the Orientation Guide is to help you get
engaged by advising and informing you                                    In Stage Three, your agent will guide
about what you need to do throughout the                                 you through the contract-to-closing
process. At each stage of the process,                                   process: presenting and negotiat-
we’ll not only update you about what your                                ing offers, setting up inspections,
agent is doing, but also what you can do to               Stage Three:   understanding real estate contracts,
ensure that you have a great home-buying
                                                          Transaction    and securing financing and insur-
experience. From the Introduction through
                                                                         ance coverage. You’ll also get some
every stage of the transaction, we’ll give
you ideas about what you can do to help                                  advice about what to expect from
make things go more smoothly.                                            your closing, and how to ensure a
                                                                         smooth moving process.
Buyer Orientation Guide | INTRO | CORE Plan



CORE Buyer Checklist
   Pre-Transaction Project Plan                               Transactional Project Plan
  Get a copy of the Buyer Orientation Guide to read at     Get recommendations from your agent for your
  your convenience.                                        transaction professionals.

  Have your initial consultation with your buyer agent.    Contact your attorney about reviewing the contract
                                                           of sale.
  Review and complete your legal disclosures and
  agreements.                                              Attend the home inspection.

  Review with your agent “What Are You Looking for in      Review the home inspection report with your agent
  a New Home”                                              and attorney.

  Get a prequalification letter from Hudson United         Review issues in the contract with your attorney.
  Mortgage.
                                                           Sign contracts of sale with your attorney.
  Start saving your bank statements and pay stubs for
  your mortgage application.                               Complete your mortgage application with your Hud-
                                                           son United Mortgage rep.
  Register with randrealty.com
                                                           Submit all your mortgage documentation.
  Set up saved searches on randrealty.com.
                                                           Respond to all mortgage documentation requests
  Add “@randrealty.com” to your “safe senders” list.       promptly.

  Set up a folder on your email account for your rand-     Order or have your attorney order a title report from
  realty.com email.                                        Hudson Abstract.

  Save the randrealty.com web app to your smart-           Discuss any title issues with your attorney.
  phone.
                                                           Contact your Hudson United Insurance rep to quote
  Set up a showing schedule with your agent.               your home insurance.

  Communicate regularly with your agent.                   Get estimate of closing costs from your attorney.

  Review your randrealty.com email updates regularly.      Get closing date from your attorney.

  Use the “Showing Project Plan” when looking at           Contact movers for estimates of the cost of your
  homes.                                                   move.

  Get printouts of all show sheets.                        Hire a mover and schedule the move.

  Set up file folders for your show sheets (low-tech)      Schedule and attend the walkthrough with your
                                                           agent.
  Set up a spreadsheet to track your showings (high
  tech)                                                    Discuss any walkthrough issues with your attorney.

  Review all offers submitted by your agent.               Attend the closing, bringing proof of identification
                                                           and your checkbook.
  Order preliminary lien searches from Hudson Ab-
  stract for any offers you make.                          Finalize all transaction documents at the closing.
Stage One:
                  Preparation


     In Stage One, you’ll have your initial consultation with your real estate
     agent, who will familiarize you with the sales process, introduce you
to our service approach, and determine your needs, goals, and concerns
in buying your new home. In the Guide, you’ll learn about how to prepare
for that meeting, how to assemble the rest of your home buying team,
and how to get started using RandRealty.com.




             www.RandRealty.com
Buyer Orientation Guide | PREPARATION | Chapter 1.1



The Advantages of Working with
a Buyer’s Agent
The most successful home buyers are people who get proactively engaged in the purchasing process.
Your agent is going to be hard at work finding you the right home, but there are some things he or she
simply cannot do. So throughout this process, we’re going to urge you to stay involved in your transaction,
which is the best way of ensuring that you have a great service experience. The first chance to be
proactive in your purchase is your initial agent consultation.



B
        uying a home is easier than buying a car. The transaction
        is more complicated, because the stakes are so much
        higher, but the process is actually easier. For example,
let’s say that you’re buying a four-door sedan. To find the
right car, you have to go to a bunch of different dealerships,
because dealers will only sell you the cars they have in their own
inventory. So depending on your price range, you might have
to go to a dozen different showrooms: Chrysler, Dodge, Chevy,
Honda, Ford, Acura, Infiniti, Mercedes, BMW, Audi, Volvo, and all
the rest. And you might even have to go to multiple dealerships
that sell the same brand, since one Honda dealership can’t sell
you a car held by another dealer. The process can be exhausting.

On top of that, you are always at a disadvantage when navigating
the car buying process, because you’re totally on your own.
That car salesman in the showroom might be the nicest guy in
the world, but we all know he works for the dealer. He doesn’t
work for you. His job is to get his boss the best price for the car
-- which by definition means getting you the WORST price! And
that salesman has huge informational advantages over you. He
knows what other similar cars have sold for recently. You don’t.
He knows the ins and outs of that car, and how it compares to         full-time agent, she has market and product knowledge: she
other cars. You don’t. Even if you do all your research, you’ll       knows what comparable homes have sold, what homes have NOT
never equal his product and market knowledge. It’s not an even        sold, and what’s currently available on the market. That puts you
playing field.                                                        on an even playing field with the seller.

Now compare that to buying a home. Because of the way the             You see the difference? When you buy a car, you’re on your own,
real estate industry is structured, with an agent on both sides       and you’re always going to be at a disadvantage working with a
of the transaction, home buyers have a much better experience         salesperson who has superior market and product knowledge,
navigating the process of buying a home. Unlike car dealers,          and who negotiates the sale of cars every day for a living. But
real estate brokers share all their inventory through a multiple      when you buy a home, you get the advantage of hiring an agent to
listing service, allowing any member buyer agent to show and sell     help you sift through the inventory, advise you about what’s going
their properties. So you don’t need to visit dozens of different      on in the market and with that particular property, and then help
real estate brokers or agents in order to see the whole inventory     you negotiate your deal.
– you just need one good agent. Regardless of who listed that
property, any agent who is a member of the local MLS can show         And on top of all that, your buyer agent usually comes free!
you that property.                                                    In most cases, buyer agents are paid by the seller out of the
                                                                      proceeds of the sale. If you represent yourself, you don’t get that
More importantly, when you buy a home, you have the                   savings in your pocket – instead, the seller or listing agent get
opportunity to hire an agent to represent your interests. It’s not    to keep it. So if that’s the case, why do some buyers so afraid
like being at the car dealership where everyone works for the         to hire a buyer agent? For example, real estate agents get calls
seller. Your agent works for YOU. She has fiduciary obligations       like these all the time: “Thank you for calling Better Homes and
to look out for your interests. Moreover, if she’s a professional,    Gardens Rand Realty. How can I help you?”
Buyer Orientation Guide | PREPARATION | Chapter 1.1


                                                        The Advantages of Working with a Buyer’s Agent

  “I saw your sign on a house on Ridge Road in New City. Is it still   see this with potential clients who are in the early stages of “just
  available?”                                                          looking,” and who are afraid of agents inundating them with
                                                                       phone calls and emails once they express any kind of interest in
  “Let me check. Yes, it’s still available. It’s got four bedrooms     buying a home. It’s like when you go into a department store and
  and three –“                                                         try to avoid the sales clerk because you’re really “just looking”
                                                                       and don’t want the clerk hovering over you for the whole time.
  “Great! Could you take me to look at it?”
                                                                       We can certainly understand why some buyers feel that way,
  “Well, I’d be happy to do that. Why don’t we make an                 because the real estate industry has a pretty well-deserved
  appointment for you to come into my office so we can sit down        reputation for aggressive sales techniques that can sometimes
  for a few minutes and find out what your situation is? Then we       make buyers feel uncomfortably pressured. But let’s also
  can go take a look at that home and maybe some other similar         recognize a few important things:
  listings that might meet your needs.”
                                                                       But if you find that your agent is making you uncomfortable,
  “That’s okay. I just want to see that house. But I don’t want to     just say something! Your agent works for YOU, so she should
  come to your office. Can we meet there?”                             accommodate to your needs and comfort level. If the agent is a
                                                                       professional, she should get the message, and you won’t have to
We see this all the time in the real estate industry – buyers who      worry about working with a “pushy” agent.
would rather meet “at the house,” who spend months visiting
open houses on their own, who waste hours staring at pictures                      “Ultimately, we understand”.
on their laptops rather than making appointments to go see
houses in person. They’ll meet an agent at the house, realize it’s     Ultimately, we understand and appreciate that people are
not right for them, then say goodbye to that agent. A week later,      afraid of dealing with a “salesperson.” That’s why Better
they’re calling another agent on another house, meeting at the         Homes and Gardens Rand Realty has pioneered the “client-
property, realize it’s not right for them, and so on. Such a waste     oriented” approach to real estate brokerage that emphasizes
of time!                                                                          our agents’ roles as service professionals rather than
                                                                                        “salespeople,” and encourages agents to take
Why are so many people afraid to hire a                                                     a proactive approach to identifying and
buyer’s agent? Sometimes, potential                                                            satisfying our clients’ needs – including
buyers in the early stages of looking for                                                         the need NOT to be sold to. We don’t
a home are actually too considerate for                                                             want our real estate agents to act as
their own good. They’re afraid to call                                                               “salespeople” any more than you do.
upon an agent’s services and make                                                                     So we hope that you’ll realize that
the agent waste a lot of time helping                                                                  having an agent is good thing, not
them if they’re not really sure                                                                        something to shy away from. A
they’re ready to buy. And while we                                                                     fear of sales pressure is a really
do appreciate the thoughtfulness,                                                                      bad reason to deny yourself the
we should make clear that this is                                                                      services of a good real estate
a TERRIBLE reason not to hire an                                                                      agent, particularly when it is so easy
agent. That’s the job! That’s what real                                                              to dispel that pressure and focus
estate agents do! They help people                                                                  the agent on providing you with the
just starting out in the buying process                                                           services you need.
and guide them through that process. Do
a lot of clients eventually choose not to buy                                              Rather, you should think about all the
something? Of course! But that doesn’t mean                                             advantages you get with a good buyer’s agent:
that the time spent was “wasted.” Agents don’t think
that way. You shouldn’t either.                                               First, your buyer’s agent acts as a fiduciary
                                                                              representative, legally bound to look out for your
The biggest reason, though, is that buyers are afraid of                      best interests. If you’ve never bought a home before,
“salepspeople.” They’re terrified of the “hard sell.” They                    or you last bought a home prior to the mid-1990s, you
fear getting a “pushy” agent who is going to pressure them                    might not even realize that buyer agents have that
into buying a home before they’re ready. We particularly                      fiduciary responsibility to their clients, because buyer
Buyer Orientation Guide | PREPARATION | Chapter 1.1


                                                      The Advantages of Working with a Buyer’s Agent

agency did not exist in New York until about 20 years ago. But         And that’s only a short list of some of the biggest advantages you
it’s now one of the most important advantages you have in              have in hiring a good buyer’s agent. Basically, good agents add
buying a home with an agent. Indeed, the fiduciary relationship        value to your home buying process.
with your agent is similar to the attorney-client relationship
that you’re probably familiar with: among other responsibilities,      Third, a buyer agent provides a range of services that will
your agent has the duties to be loyal only to you, keep your           help you have a better transactional experience. From your
confidences, and make all disclosures to you of any material           first consultation to your final closing, your agent is responsible
facts. When you get a buyer’s agent, you’re not getting a              for a wide array of services that you will need to ensure a
“salesperson” – you’re getting someone who is on your side,            smooth home buying experience. Throughout the process,
representing your interests.                                           your buyer agent will stay in constant communication with you,
                                                                       through phone or email, to make sure you’re up-to-date with
Second, working with a buyer agent gives you several                   what’s happening in the market, your home search, and your
competitive advantages that you cannot get working on                  transaction.
your own. Some of those advantages, including advantages that
you can only get working with a Better Homes and Gardens Rand          Finally, you generally do not pay for your buyer agent’s
Realty agent, are:                                                     services, because the seller usually pays all the broker fees
                                                                       out of the proceeds of the sale. It’s really one of the best
 •  ccess to sold property data. Even in the information age,
   A                                                                   deals in the industry: you get all the services of a buyer agent
   it’s difficult for lay people to get full and complete access to    to represent your own interests, help you find the right home to
   sold information, which is crucial for helping you determine        buy, and facilitate the entire purchasing process, and you don’t
   the market value of unsold listings and in preparing your           even have to pay for it. In certain cases, sellers do not offer to
   offers.                                                             pay buyer agent fees, but your agent will make that clear to you
                                                                       when you look at the home, so you will be able to condition your
 •  reliminary lien searches. Because of our affiliate
   P                                                                   offer on the seller paying the agent out of the sale proceeds.
   relationship with Hudson United Abstract, your agent can            Generally, though, you get all the benefits of buyer agency
   order a preliminary lien search on any property you place           without any of the direct costs.
   an offer on, which can help you in
   formulating your pricing strategy or
   identifying “red flags” on the title that
   might delay your transaction.                                    Working with Multiple Agents
                                                 If working with one agent is good, is working with multiple agents better? Answer: No!
 •  he intermediary negotiating role.
   T                                             Sometimes, buyers like to work with multiple agents because they think that they’ll get
   Any professional negotiator will tell         more work done that way. But all that does is undermine the relationship you could
   you how important it can be to have           develop with one agent, and waste a lot of your time. All agents in the local MLS have
   someone act as an intermediary in             access to the same inventory of listings, so working with multiple agents means that
   any negotiation, to deflect persuasive        you’ll probably end up seeing the same properties over and over again. Moreover, you’ll
   pressures and allow you to limit              find that one of the most important aspects of the agent-client relationship is the insight
   bargaining authority from “outside the        that an agent gets from working with you over time, which requires a long-term, deep,
   room.”                                        and exclusive relationship between you and your agent. Don’t play the field. Make a
                                                 commitment to the right agent.
 •  eighorhood Expertise. A good real
   N
   estate agent knows the neighborhoods,
   and can provide you with information that goes beyond the           Conclusion
   four corners of the listing detail sheet, information that might
   be crucial for determining the true market price.                   Ultimately, this is one of the best deals you’ll ever have. Your
                                                                       buyer agent will work tirelessly on your behalf, always in your
 • Transactional Facilitation. A real estate agent’s job doesn’t
                                                                      best interest, and in the end it will be the seller who pays your
   end when you reach a meeting of the minds with a seller –           agent for those services. Think of it this way – real estate agents
   rather, the agent then becomes a facilitator, coordinating all      have a full-time job in helping buyers through the transactional
   the other professionals in the transaction to make sure you         process. If they’re not around to do that job for you, then you
   have a smooth transition through to your closing.                   have to do it for yourself. And you probably have your own job.
Buyer Orientation Guide | PREPARATION | Chapter 1.1


                                                              The Advantages of Working with a Buyer’s Agent
                                           Agent Services Through All Three Stages
                                              of Your Home Buying Experience
                           Explain the entire transactional process, so you’re fully informed about what you can expect during
                           your purchase.
Stage One: Preparation




                           Help you navigate the buying process, to avoid delays and pitfalls throughout your transaction.

                           Help you discover your needs, wants, and desires in purchasing a home, helping you narrow down
                           your home buying preferences and introducing considerations that you may have overlooked.

                           Connect you to a qualified mortgage professional to help you fully understand the financing process,
                           get prequalified for a loan, and ultimately provide you with your home financing.

                           Help you assemble the rest of your home buying team, including your engineering inspector, attor-
                           ney, title representative, and insurance representative.

                           Provide ongoing information about the housing market in your target areas to help you stay on top
                           of pricing trends.


                           Set you up with saved searches so that you get email alerts whenever a relevant property hits the
                           market, has a price change, or gets updated.
Stage Two: Search




                           Help you review available inventory and find the home that suits your needs, wants, and desires.

                           Create buyer tours and comparative market analyses on properties you see, to help you in preparing
                           the terms of your offers.

                           Schedule your appointments, and help you navigate through the inventory of homes available.

                           Professionally present your offers and negotiate the purchase of your home to ensure you get the
                           best terms possible.


                           Obtain a preliminary lien search report from Hudson United Abstract to determine whether your po-
                           tential purchase is burdened with liens that might delay your closing.
Stage Three: Transaction




                           Order and attend a property inspection and review all findings with you to help determine whether
                           the property condition should affect your offer.

                           Assist your attorney in preparing the terms of a contract of sale.

                           Coordinate all the members of your home-buying team – finance, legal, title, insurance – to ensure
                           a seamless transaction.

                           Attend the walkthrough prior to the closing to make sure that the property condition is acceptable
                           to you.

                           Attend the closing to be available as a resource for any last-minute issues that crop up.
Buyer Orientation Guide | PREPARATION | Chapter 1.2



What Are You Looking For?
Your first consultation with your buyer agent is an important step in setting the right course for the rest
of your home buying experience. It’s a great opportunity to share with the agent your hopes, wants, and
desires about the process, and to ensure that your agent knows exactly how to best service your needs. In
order to have the best possible first consultation, we encourage you to prepare for the meeting by thinking
about what you want from your home buying process.



W
            e want to give you some                                                               • What are your biggest concerns about
                                                                                                    
            information about what you                                                              buying a home?
            can do before your initial
consultation with your buyer’s agent. This                                                        • Are you familiar with the current state
                                                                                                    
will ensure a more productive meeting,                                                              of the regional housing market?
consistent with our overall advice to be
actively engaged throughout your buying                                                           • How comfortable are you using
                                                                                                    
process.                                                                                            technology to search for a home, like on
                                                                                                    randrealty.com?
At your initial consultation, your agent will
ask you questions about your familiarity                                                         All our clients are different. Some have
with the buying process, your preferences                                                        purchased homes recently, and know
in the type of home you want, your                                                               exactly what to expect. Others are first-
geographic needs, and your purchasing                                                            time home buyers apprehensive about
power. We will also be asking about any                                                          what they should expect from the process.
particular concerns or needs you have                                                            Whatever your situation, you want to make
about buying a home.                                                                             sure your agent knows what you need
                                                                                                 from us to help you fully understand the
You will have a more productive meeting            • Have you already started looking on
                                                                                                process.
if you think about those questions in                your own? What have you found that
advance. You have no obligation to                   interests you?                              What Do You Want From
prepare ahead, but you’ll find that you’ll                                                       Your Agent?
get more out of the meeting if you think         Remember that buying a home can take            You should think about what you’re
about these issues before you’re sitting         a long time. Most of our clients spend          looking for from your Better Homes and
down with your agent. Moreover, this             months in just the home search process,         Gardens Rand Realty agent to ensure that
exercise will also help you get into the         and once you find the home that you want        your agent knows how to best service your
right frame of mind about your home              to purchase, you’ll likely spend three          needs.
search process, and help get you into the        to four months more completing all the
practice of being more proactive about the       transactional work that is required to           • What are you looking for in an agent?
                                                                                                    
entire process.                                  execute a contract, secure financing, and
                                                 finishing all the other tasks required to get    • What’s the most important quality you
                                                                                                    
Here are some of the questions you               your purchase closed.                              look for in service professionals?
should consider before sitting down with
your agent for the first time.                   How Well Do You Know the Home                    • How do you want to communicate with
                                                                                                    
                                                 Buying Process?                                    your agent: phone, email, text, or only
Why Are You Moving?                              You should be prepared to discuss                  in-person?
People move for all sorts of reasons, and        with your agent your comfort level
it’s helpful for your agent to know about        and familiarity with the buying and              • How often do you want to hear from
                                                                                                    
your particular motivations so that he or        financing process. This will help your             your agent: daily, regularly, or only when
she can help prepare to get your process         agent in gauging the amount and type               new properties come onto the market?
moving at the pace you desire.                   of information you should be getting
                                                 throughout the process.                          • How often do you want to go look at
                                                                                                    
  • What’s the reason for your move?
                                                                                                   properties, and are you already looking
                                                   • Have you done this before, or are you
                                                                                                   on your own?
  • What’s the time frame of when you want
                                                    otherwise familiar with the process of
    to be in your new home?                          buying a home?
Buyer Orientation Guide | PREPARATION | Chapter 1.2


                                                                                                 What Are You Looking For?

Our goal at Better Homes and Gardens
Rand Realty is to ensure that you have                                  The Buyer Disclosure Packet
an outstanding home buying experience.               Buying a home is a serious financial and legal transaction, so at Better Homes and Gar-
The first step for making that happen is to          dens Rand Realty we are deeply committed to ensuring that you fully understand your
know exactly how you want to be serviced,            legal obligations and protections. That’s why we have created what we call the “Buyer
so make sure you explain to your agent               Disclosure Packet,” which is a professionally designed package containing all the docu-
what it is you want from him or her.                 ments relating to your home purchase. Your agent will present your Disclosure Packet
                                                     on your first meeting, and will go over all the forms with you. The Packet might seem
How Familiar Are You With the                        overwhelming at first, but remember that these documents are designed for your pro-
Financing Process?                                   tection, and are required by federal law, state regulation, or the Realtor Code of Ethics.
You should feel comfortable discussing               If you’ve met other agents who didn’t ask you to fill out these forms, you should wonder
your financial situation with your real estate       why they’re shirking their legal obligations to advise you of your rights!
agent, since all our agents are licensed
professionals who are qualified to help
determine your purchasing power. You
should absolutely have a good sense of            United Mortgage representatives to discuss       home you want, it’s important to keep an
your purchasing power before you spend            financing with you.                              open mind. What a lot of home buyers find
time looking at houses that might be above                                                         is that they end up purchasing a home that
or below your proper price range.                 What Are You Looking For in                      is very different from the types of homes
                                                  Your New Home?                                   they initially started looking for when they
  • What price range do you think you
                                                 Finally, and most importantly, you should        began the process. They start out looking
    qualify for, based on your income and         take some time to think through what             in a particular town for a specific home
    your savings?                                 you’ll looking for in your new home. Now,        style, but once they being looking at what’s
                                                  you might have a general idea of the kind        available they fall in love with a totally
  • How much are you comfortable
                                                 of home you like, but you’ll be amazed at        differently-styled home that is completely
    spending for your monthly mortgage            the myriad choices that you’ll have once         outside their original market area. That’s
    payment, insurance, and property              you start looking at the properties that are     a very normal part of the process, so don’t
    taxes?                                        available.                                       be alarmed as your tastes evolve.

  • How comfortable are you with your
                                                 The list of questions below are designed to      Conclusion
    understanding of the financing process,       prompt you to think about all the various        Your initial consultation with your Better
    which has become more complicated in          considerations that might go into your home      Homes and Gardens Rand Realty agent is
    the past few years?                           purchase. Some of these questions will           just the first step of your home purchasing
                                                  address issues that are unimportant to you,      process, but it’s an important step. It’s
  • Have you been pre-qualified for a
                                                 but some might spark you to realize that         your first opportunity to really think
    mortgage amount by a local mortgage           you have particularly needs and desires          through what you want from your agent,
    consultant, or do you need to talk            that you’re going to want to satisfy in your     what you’re concerned about with the
    with a Hudson United Mortgage                 new home. So think about each of these           process, and what kind of home you’re
    representative?                               questions, and if they prompt some ideas         looking for. So please take some to think
                                                  then be sure to share them with your agent.      about these issues before you meet with
If you would be more comfortable discussing                                                        your agent, to ensure that you have the
finances with a mortgage consultant, have         Ultimately, though, even as you go through       best possible first meeting and get things
your agent contact one of our Hudson              the exercise of thinking about the kind of       started on the right foot.
Buyer Orientation Guide | PREPARATION | Chapter 1.2


                                                                              What Are You Looking For?


                    What Are You Looking for in a New Home:
          Questions You Should Consider Before Meeting with Your Agent
                                                   Location
What area would you like                                                                Are school districts
to move to, and why?                                                                    important to you, and is
                                     Where will you be working, and what type of        proximity to local schools
                                     commute are you comfortable with?                  important to you?
           Are there other areas
           would you consider?
                                              Is proximity to particular religious
                                              institutions important to you?




                                               Size and Style

What size of a home                                                               Do you have any kitchen

                                                                                  appliances, eat-in-kitchen, etc.)
are you looking for, in a       What type of home (ranch, raised-                 preferences (certain style of
general square footage          ranch, colonial, contemporary, etc.)
range?                          are you looking for?
                                                        Do you have any particular
       Are any of these things “must
                                                        preferences for amenities (i.e., pool,
       haves,” or are they just
                                                        master bedroom on the first floor,
       preferences? If they’re just
                                                        fireplaces, etc.)?
       preferences, which of them is
                                                                                   Will you be working inside
       most important?
                                             Do you have any                       the home, and do you need a
                                             particular and unusual                designated home office?
 Do you have any particular preference
                                             needs in a home that
 for lot size?
                                             the agent should know         Do you have a particular preference
               How many bedrooms and         about, such as large          for block location (i.e., corner lot, cul-
               baths do you need?            pets or residents with        de-sac, etc.)?
                                             disabilities that need
                                             accommodation?
Buyer Orientation Guide | PREPARATION | Chapter 1.2


                                                                            What Are You Looking For?


                 What Are You Looking for in a New Home:
       Questions You Should Consider Before Meeting with Your Agent
                                            Personal Tastes
     Do you want a lively
     neighborhood, or do you                                                           What features of your
     like privacy?                PERSONAL TASTES Do you prefer a home                 previous homes did you
                                  that is a “hub of activity,” or do you prefer a      like the most? What did
                                  quiet retreat away from the world?                   you like the least?
Do you like a big open floorplan,
or do you prefer a more traditional       Who will be living in the home, and is there a
layout with defined room spaces?          possibility in the future that the number of people
                                          living there might change?
                                                                              Is there something you disliked
    Have you visited homes that you                                           about your previous home, and
    liked for its unique features, and                                        would you like to avoid that in your
    what were they?                                                           new home?

                                      What are the most important “must-have”
                                      features for your new home? What’s your
                                      highest priority?
Buyer Orientation Guide | PREPARATION | Chapter 1.2


                                                                                  What Are You Looking For?




  Are You Looking Outside Our Market Area?
Although Better Homes and Gardens Rand Realty services a wide geographic area,
we often work with buyer clients who are also looking outside our market area. If
you are also considering moving to places like Long Island, Connecticut, or even a
market area that Rand covers but is not directly serviced by your agent, you should
absolutely tell your agent that you need help outside of the market area that he or
she covers. This will allow your agent to refer you to another Rand agent that does
serve the market area, or to one of our “referral partners” who can ensure that you
have a great buying experience.
What’s are the benefits to you of being referred?
   • First, you’ll find that you’ll have a better experience if your agents
     
     covering the different market areas are working together, rather
     than “competing” to get you to buy in their area. They’ll be able
     to share information during your process as they learn about what
     you like and don’t like in homes that they show you.
   • Second, you’ll be assured that you’re only working with agents that
     
     meet the high standards we have for our referral agents.
   • And third, you’ll find that your referred agent will work hard to
     
     ensure you have a good buying experience, because he or she will
     know that future referrals depend on your providing us with posi-
     tive feedback about their performance.
So if you are thinking about looking outside our market area, or outside the are
serviced by your agent, you should let your agent know so we can make sure all of
your home buying needs are met.
Buyer Orientation Guide | PREPARATION | Chapter 1.3



Assembling Your Team
Buying a home requires more than just the services of a great real estate agent. You are going to need
a team of real estate specialists to help you with your financing, legal, and insurance needs. A great
team can make a big difference in your real estate transactional experience, so it’s important to start
assembling that team as soon as possible.




B
       uying a home is a big project. It’s
       not something you can do yourself,
       and it’s not something that even
the best real estate agent in the world
can do by herself. Like any big project,
you need more than just one person. You
need a team.

Your real estate agent is like the
quarterback of your team, the most
important player, the one who has the
ball in her hands for most of the game.
Indeed, her primary role through much of
the process will be directly helping you
find that home: taking you on showings,
evaluating the market, preparing and              an inspection to ensure that the home         in the process, discuss your insurance
presenting offers, and reaching a meeting         is fundamentally sound. Your home             options, and then be able to secure
of the minds with a seller.                       inspector will review the condition of        coverage quickly.
                                                  the home, and prepare a report that
But once you’ve reached an accepted offer         you’ll be able to review with your agent   Throughout your home buying process, it’s
with a seller, your agent’s role becomes          before you sign contracts to purchase      your agent’s job to facilitate the work of
much more facilitative. She doesn’t have          the home.                                  all these professionals. She’ll coordinate
much direct work to do once you’ve found                                                     with the loan officer, schedule and attend
the home you’re going to purchase, but           •  eal Estate Attorney. Your attorney
                                                   R                                         the inspection, provide your attorney with
now has the primary role of coordinating           will counsel you about your rights and    all the deal terms, order preliminary lien
and directing the rest of the players on           responsibilities under your contract of   searches from your title representative,
your team. Like the quarterback, her role          sale, and negotiate the final terms of    and provide whatever information your
is to set the formation, call the plays, and       the deal with the seller’s agent.         insurance representative needs to make
make sure everyone else is doing their job                                                   sure you have coverage at your closing.
correctly.                                       •  itle Representative. Your title rep
                                                   T                                         Like the quarterback, a good real estate
                                                   will order your title insurance, which    agent knows how to get the most out of
The Players                                        you’ll need to protect against adverse    the other players on the team.
Here are some of the players that you’ll           claims of ownership. And if you’re
need on your home buying team:                     working with Hudson United, you can
                                                   order preliminary lien searches during            Hudson United
  •  oan Officer. Your loan officer is
    L                                              your home search process to gather
    responsible for ensuring that you get          important information about homes                    Hotline
    financing for your home purchase. You          you’re placing offers on.
    should start working with your loan                                                             1(845) 825-8061
    officer right at the beginning of your       •  ome Insurance Representative.
                                                   H                                            If you ever need your Hudson United
    process, getting prequalified so that          You will need full home insurance            mortgage, title, or insurance repre-
    you know how much home you can                 coverage before your closing. As             sentatives, you can call our hotline
    afford.                                        always, we urge you to be prepared           number and talk to a customer service
                                                   in advance, and one way to do that           representative who can connect you
  •  ome Inspector. Once you have an
    H                                              is make contact with your Hudson             to the people you need.
    accepted offer on a home, you’ll need          United Insurance representative early
Buyer Orientation Guide | PREPARATION | Chapter 1.3


                                                                                                      Assembling Your Team

Choosing Your Team                                Second, hire only local professionals           the process while they find the attorney,
Now that you know the players, the next           with expertise in your market area. Too         make first contact, have a consultation,
question is about choosing up sides.              many buyers make the mistake of hiring          and then start the process of reviewing the
If you want to have the best possible             out-of-market professionals who are not         sales contract. Similarly, too many buyers
transactional experience, we have some            familiar with the local market when buying a    find themselves scrambling to get home
recommendations about how you should              home. They’ll try to get financing from some    insurance coverage the day before their
pick the professionals that you’re going to       online mortgage company because they            closing, because they failed to plan ahead.
have on your home buying team:                    get seduced by some “bait and switch” rate
                                                  that will mysteriously be unavailable once      That’s why you should start assembling
First, trust your agent’s guidance in             they are getting ready to close. Or they’ll     your team now. Ask your agent for
choosing your real estate professionals.          try to save a few bucks by getting relatives    referrals for the professionals you will need
Your agent is going to have to coordinate         who happen to be attorneys to handle their      throughout the process. Establish those
all the moving parts of your real estate          contract and closing, even though they          relationships. It doesn’t take a lot of your
transaction, so you will most likely have a       don’t normally do real estate law. Don’t        time, or their time, to have a five-minute
better experience if you agent is working         make these mistakes. Trust your agent to        conversation to put them on notice that you
with professionals that she has worked            refer you to professionals who know the         might need their services sometime in the
with in the past. Your team will perform          local area and have a strong reputation         future. And then they’ll be available to you
better if the players have more experience        in the local industry. Hiring out of market     throughout the process whenever you have
working together. Moreover, trusting              lenders, attorneys, or engineers might look     questions that you need answered. You’re
your agent’s recommendations is also              like a good deal, but it almost always causes   going to need them eventually, so why not
a great way to ensure the quality of the          delays or difficulties for your home buying     hire them now?
professionals you’re going to work with.          process.
Those professionals know how important it                                                         Conclusion
is to maintain their service reputation in the    Third, don’t wait until the last minute. We     Finally, we also encourage you to meet
industry, to ensure that they continue to         include this section on “Assembling Your        with the professionals from Hudson
get referrals from real estate agents. After      Team” in the Preparation Stage of the           United, who can provide you with an
all, you’re likely to do only one real estate     Orientation Guide for a reason – because        integrated and seamless “one stop
transaction in the next few years, but your       it’s important for you to start planning        shopping” experience for your mortgage,
agent will do many transactions this year         ahead in choosing the professionals who         title, and insurance needs. The better
and have many more opportunities to refer         are going to help you through your real         the working relationships among your
service professionals. Those attorneys,           estate transaction. For example, most           team members, the easier it will be to
engineers, and mortgage officers want to          buyers make the mistake of waiting until        ensure that you have a great transactional
stay on that referral list.                       they have an accepted offer to hire an          experience with Better Homes and
                                                  attorney, which invariably causes delays in     Gardens Rand Realty.
Buyer Orientation Guide | PREPARATION | Chapter 1.4



Getting Pre-Qualified
Getting a mortgage will be the most difficult part of your home buying process, but you can have a better
experience if you get prepared and start working with your loan officer right from the beginning.




T
       he hardest part about buying a              •  lear to Close. Once you have
                                                     C
       home is getting a mortgage. For               satisfied all the conditions, your           Price Range Shortcuts
       the most part, you will actually              bank will issue a commitment letter          Here are some simple rules of thumb
enjoy the home buying process: after all,            and you will be “clear to close” your        to help you figure out your general
looking at homes is like “shopping,” and             transaction.                                 price range:
most people enjoy shopping. Looking at
homes online, going on showings with             How can you be more engaged, so                  1. The 3.5x Income Rule
your agent, getting to know the different        that you are better prepared? Most               Take your income and multiply it by
areas and neighborhoods – those are all          importantly, you should meet with a loan         3.5 – that’s how much home you can
the fun parts about buying a home.               officer right away. At Hudson United             afford, assuming that you can also
                                                 Mortgage, our affiliate lending company,         make a reasonable down payment and
But the mortgage process is messy,               we encourage our clients to meet with            have decent credit. (This used to be
complicated, and often intimidating.             a loan officer right at the beginning of         the “3x” rule, but when interest rates
That’s why we want you to be prepared.           their home search, because even a short          are in the 3-5% range, it’s 3.5x).
Our general advice to be engaged and             consultation can answer your questions
proactive is particularly important for          about the current rate environment,              2. One-Quarter of Income Rule
getting a mortgage. If you’re actively           assuage some of your concerns about the          On the other side, to figure out how
involved throughout the mortgage                 process, and also help you get a better          much of a monthly payment you
process, and if you start planning ahead         sense of your buying power. Too many             can afford, take one-quarter of your
now, you’ll have a much more pleasurable         buyers start looking for a home without a        monthly income. Assuming decent
experience.                                      clear idea of how much they can afford,          credit, that’s how much you can
                                                 and they waste a lot of time looking at          reasonably spend on your mortgage
Because the mortgage process is so               homes that are above, or below, their            payment.
central to your home buying experience,          actual price range.
you should have a general sense of how
that process will develop:                       At your initial consultation with your loan
                                                 officer, you should be prepared to discuss    should be aware that a pre-qualification
  • nitial Consultation. You’ll meet
    I                                            in some detail your financial situation.      letter is not a firm commitment from the
    briefly with your loan officer and get a     Remember that loan officers, at least         bank – you won’t get anything like that
    pre-qualification letter to advise you of    the ones with Hudson United, are under        until you complete and submit a formal
    your general price range.                    strict licensing requirements to protect      loan application, which you cannot do until
                                                 the privacy of your information and keep      you actually find a home to buy. Rather,
  •  pplication. Once you find a home
    A                                            your confidences, so you should feel          the pre-qualification letter is really just a
    to purchase, you’ll complete a formal        free to discuss your personal situation       general indication of your buying power.
    mortgage application to your lender.         without holding anything back. Your loan
                                                 officer will review your financial profile,   But the pre-qualification letter is still
  •  rocessing. Your loan processor, who
    P                                            give you a general sense of your price        important for two major reasons:
    works with your mortgage officer, will       range, describe the current interest rate
    review your file and probably contact        environment, and explain the various          First, it will allow you to go through the
    you about supplementing it with some         mortgage products that might be available     process of discussing your financial
    supporting documentation.                    to you.                                       situation with your loan officer, which will
                                                                                               ensure that you have a good sense of your
  •  nderwriting. Your processor will
    U                                            Most importantly, by having that initial      true price range before you go out and
    submit the file to an underwriter, who       consultation with your loan officer, you’ll   start looking at properties.
    could deny or approve the application,       be able to get a pre-qualification letter:
    but will more likely issue a “conditional    a statement on the bank’s letterhead          Second, and perhaps more importantly, a
    commitment” required more                    indicating that you have been “qualified”     pre-qualification letter from a reputable
    documentation or clarification.              for a particular price range. Now, you        lender like Hudson United is almost a
Buyer Orientation Guide | PREPARATION | Chapter 1.4



Getting a Prequalification Letter
If you do not yet have a prequalification letter, just call (845) 825-8100 to speak to a Hudson United
Mortgage loan officer. We can arrange to get your prequalified over the phone and have a letter emailed
or faxed to you immediately.
“stamp of approval” for sellers and listing     have identified a property to buy and have    “team,” and someone you can then
agents. In a competitive environment for        submitted a full application to a lender.     contact whenever you have financial
buyers, a pre-qualification letter indicates    Rather, the pre-qualification letter is       questions or issues.
that you are credible and serious, and that     designed to give you just a general idea of
you have the general financial wherewithal      your price range, so that you have a better   Conclusion
to back up your purchase offers. Indeed,        sense of what you can afford when you         This is really only a general introduction to
many sellers demand a pre-qualification         start looking for a home.                     the mortgage process. If you want a more
letter before they will even consider your                                                    comprehensive overview of mortgage
offers!                                         Accordingly, we strongly urge that you        products, qualification guidelines, and
                                                have a short sit-down with your loan          interest rates, check out the Hudson
All that said, we should note that a            officer early in your buying process. By      United Transaction Orientation Guide,
pre-qualification letter is not a binding       forging that connection with your loan        which is available from your Hudson
commitment from the bank. You won’t             officer, you’ll secure one of the most        United mortgage loan officer or your
get any kind of formal approval until you       important members of your home buying         agent.
Buyer Orientation Guide | PREPARATION | Chapter 1.5



Getting Started with RandRealty.com
The first step in your home search process is setting yourself up on randrealty.com, the premier real
estate website in our region. In this section, you’ll find out about all the features on the site and learn how
to register so that you can get email alerts for your saved searches and properties.



T
        he Rand organization has always            •  owerful search tools. You can do
                                                     P                                         means that most of the visitors to our site
        been one of the leading technology           quick searches right from the home        aren’t even in the market to buy a home.
        companies in real estate,                    page, or do an advanced search to
recognized throughout the industry as                pinpoint the types of homes you are       Property Detail Page
a cutting-edge pioneer committed to                  looking for, including multiple area      Once you’re done your searches on
providing our agents and clients with the            searches with simple check boxes (not     randrealty.com, you’ll notice the elegant,
best tools possible. The centerpiece of              those “hold down the CTRL-key while       intuitive design of the property detail
our dedication to technological innovation           you….”-type systems).                     pages, which provide all the information
is randrealty.com, our award-winning                                                           available from the multiple listing system,
website providing the best real estate             •  pen house listings. Open house
                                                     O                                         and even more information for the many
search and property display features                 listings are updated every week if you    listings with our company. In addition, we
available in the industry.                           want to narrow your search just to        have integrated a number resources into
                                                     homes available for public viewing that   the site to give you features like mapping,
The randrealty.com site has long been                weekend.                                  demographic information, market data,
at the leading edge of the regional                                                            and school information.
real estate industry. We were the first            •  ommunity Insight. If you want to
                                                     C
company to provide full multiple listing             research the local area, you can find     Here are some of the highlight features of
inventory, the first to add multiple                 comprehensive demographic reports         the property detail pages
pictures, the first to provide mapping and           and school information for all our
address information, the first to adopt              communities and school districts. And       •  p to 50 high-resolution photos.
                                                                                                   U
blogging and social media integration.               you should also check out Community           We display all the photos provided
We are constantly innovating the site,               Heartbeat, our lifestyle blog for our         by the MLS in the highest resolution
adding new features and capabilities                 local communities, featuring local            possible, with up to 50 photos
designed to provided our clients with the            attractions, village and town profiles,       available for our own listings.
best experience possible.                            and picture tours.
                                                                                                 •  ull property descriptions. Unlike
                                                                                                   F
Today, randrealty.com gives you access             •  ifestyle resources. To learn more
                                                     L                                             some sites, we do not have a maximum
to every property for sale through all the           about home design, decoration, and            character count for our property
multiple listing systems in the region,              improvement, take a look at the videos        descriptions, so you won’t miss out on
with powerful, intuitive and easy search             and articles from Better Homes and            a particularly lengthy home profile.
features. We also provide access to                  Gardens Real Estate, which cover
innumerable resources that you might                 everything from do-it-yourself projects     •  roperty addresses and mapping.
                                                                                                   P
need during your home search, including              to design trends to home makeovers.           Every listing has the property address
market data, school reports, and even                                                              and all Google map features, so you
design and decorating videos and articles          •  arket Intelligence Blog. Our
                                                     M                                             can see where the home is, toggle to a
from Better Homes and Gardens.                       company blog features analysis and            satellite view of the property on Google
                                                     commentary on the national and                Earth, and get driving directions. The
Site Features                                        regional real estate markets, and             satellite views are particularly helpful
Here are some of the feature highlights of           advice for our clients.                       for getting a sense of the property line
randrealty.com:                                                                                    and dimensions.
                                                 Ultimately, our goal is to make randrealty.
  •  ll the listings. Randrealty.com is
    A                                            com your bookmarked site for anything           •  he Toolbox. Every local area has its
                                                                                                   T
    one of the few places you can go to          you need to know about local real estate,         own “toolbox,” which is a collection
    get listings of the entire regional area,    not only during your home search but              of school reports, demographic
    so you don’t have to look in different       after you close. Indeed, the site gets            information, and a community tour
    places if your search takes you across       almost two million yearly visitors, about         from the Community Heartbeat blog,
    a county or state border.                    100 times the number of people who buy            so you can do in-depth research of that
                                                 a home in our region every year, which            individual property.
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide
Better Homes and Gardens Rand Realt Buyer Orientation Guide

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Better Homes and Gardens Rand Realt Buyer Orientation Guide

  • 1. Seller Orientation Guide Buyer Orientation Guide Preparation Search Transaction www.RandRealty.com 1. Better Homes and Gardens Real Estate | RAND REALTY
  • 2. Welcome The Rand Family Matthew Rand Joseph W. Rand Marsha Rand Managing Partner Managing Partner & General Counsel CEO Welcome to Better Homes and Gardens Rand Realty T hank you for giving us the opportunity to work with you on This Introduction to the Orientation the purchase of your home. We look forward to providing Guide provides you with you the services that have made Better Homes and Gardens information about Better Homes Rand Realty one of the largest real estate companies in the country and Gardens Rand Realty and your real estate agent, and gives you a a and the leading brokerage in the region. general overview of the purchasing This Buyer Orientation Guide is our starting point for the delivery process. Next, Stage One covers of services to you throughout the process. You will be receiving your initial agent consultation, these guides throughout every stage of the purchasing process, and provides you with information you need to start looking for your from your initial consultation to your final closing. We’ve designed new home. We generally send the these Orientation Guides to help deliver a great service experience Orientation Guides as you enter to you, by helping you stay informed, engaged, and proactive each stage of the transaction, throughout the transaction. but if you would like them all in advance, just ask your agent. The Orientation Guides will have three purposes: We hope you get the chance to • First, to fully inform you about what you can expect about each read through the Orientation Guide stage of the transaction. before your appointment with your agent. If you do not, don’t worry, • Second, to let you know what your agent and Better Homes and your agent will cover everything in Gardens Rand Realty are doing to help you find the right home. your meeting. • Third, to also let you know what you can do at each stage so Again, we thank you for the that you are fully prepared for what is happening and what lies opportunity, and look forward to ahead. working with you.
  • 3. Buyer Orientation Guide | INTRO | Introduction About Better Homes Gardens Rand Realty When you buy your home, you don’t have to choose between the resources of a big company and the local expertise of a small neighborhood broker. Better Homes and Gardens Rand Realty gives you the best of both worlds: a world-class real estate company that is one of the largest in the country and recognized as industry innovator, and a family-owned local business run by people who grew up here, live here, and are deeply committed to the communities we serve. “Big Company” Advantages “Small Company” Advantages When you buy your home with Better Homes and Gardens Rand When you buy with Better Homes and Gardens Rand Realty, you Realty, you harness the power of one of the country’s largest and also get all the benefits of working with a small, family-owned, local most respected real estate companies, recognized by Real Estate broker deeply committed to the neighborhoods and communities we Magazine and REALTOR® Magazine as one of the top 75 real estate serve. Each of our offices functions as a neighborhood “boutique” brokerages in the country. Long recognized for its commitment broker, with its own manager directing operations and a group of to operational excellence, technological innovation, and market local agents who live in, work in, and know our communities. savvy, Better Homes and Gardens Rand Realty provides you with a • Local Expertise: We know the nuances of our local markets comprehensive array of cutting-edge tools to help you find a home: better than anyone else: we know the schools, housing • Our proprietary Client-Oriented Real Estate (CORE) systems styles, history, local regulations, and everything else that that ensure operational excellence. can help smooth your transaction and find you the right home. That’s why we are the leading company in virtually • The innovative technology on RandRealty.com, providing every regional town and village where we operate. you with everything you need to search online on your computer or mobile device. • Buying Local: Just as you probably like to patronize locally- owned restaurants, shops, and other businesses, buying • Communication tools, including immediate email alerts with Better Homes and Gardens Rand Realty gives you the when homes hit the market or drop their price. opportunity to support a local, family-owned company. You • Full transactional integration with our partners at Hudson can be secure that our partners, employees, and agents United, to take care of your mortgage, title, and insurance are just as committed to local businesses as you are, rather needs. than patronizing a company owned by people out-of-state, who don’t reinvest in our area. • On-demand lien searches through our title partner Hudson United Abstract, to ensure you do not get into contract on a • Commitment to Communities: The Rand owners have property that will not close. long been supporters of local charities, foundations, and community organizations, taking leadership positions • The best “Market Intelligence” in the industry, giving you a in organizations such as Hospice, People to People, the competitive advantage over other buyers by keeping you regional Making Strides Against Breast Cancer, and the informed about what’s happening in the real estate market. regional American Red Cross. And the hundreds of Better Homes and Gardens Rand Realty agents and employees Finally, you get the sheer comfort of knowing that you are working support and contribute to myriad local causes throughout with the very best real estate professionals in the industry, dedicated the region. to ensuring a quality purchasing experience. When you get the power of a big company and the intimacy of a small company, you get the best of both worlds: the influence of a large, nationally recognized organization combined with the intimacy and local expertise of your neighborhood broker.
  • 4. Buyer Orientation Guide | INTRO | CORE Introducing Client-Oriented Real Estate (CORE) Everyone promises good service. But what systems and tools do they have to ensure delivery on that promise? A great service experience requires more than just empty promises. You need a plan. A At Better Homes and Gardens Rand consistent, and high-quality client 3. Information Realty, we have a plan for ensuring experience. At every stage of the buying process, we that you have an outstanding home provide you with advice and guidance buying experience. For more than five about everything you need to know about years, we have made a commitment to How We Developed searching for a home, obtaining financing, creating systems, tools, and procedures negotiating offers, addressing inspection to ensure that our agents deliver a the CORE System issues, understanding sales contracts, consistently high service level to all of all the way to explaining your closing. our clients. Our proprietary client care We developed CORE by studying the cus- Because information is power, we also solution is called “Client-Oriented Real tomer service philosophies of great com- provide you with the most comprehensive panies like Nordstroms, Four Seasons Estate” (CORE), which is a structured, analysis of real estate market information hotels, Starbucks, and Disney, to find comprehensive, and rigorous system available in the industry – what we call our common elements that we could incor- designed to ensure that you have a great “Market Intelligence” reports. porate into the real estate industry. service experience buying your home, • Buyer Orientation Guides for every built around three primary goals: We also integrated the lessons gleaned part of the buying process from books like Ken Blanchard’s Raving • Buying Real Estate – Form Packets Fans: A Revolutionary Approach to Cus- provide an explanation and bound 1. Execution tomer Service, William Capodagli’s The copy of the legally-required forms The foundation of the CORE system is Disney Way, Robert Spector’s The Nor- for your initial consultation. the “Buyer Project Plan,” which identifies dstrom Way to Customer Service Excel- • Quarterly Market Reports that give and lists all the steps taken to find you lence, Danny Meyer’s Setting the Table, you insight into the region, your the right home. The Project Plan follows and Atul Gawande’s The Checklist Mani- county, and your local market. industry best practices we’ve identified festo. after consulting with hundreds of real Plus, you’ll also be able to get up-to-date estate professionals. The plan helps information available on RandRealty.com, guarantee a great client experience by 2. Communication including our Market Intelligence Blog, ensuring that agents complete all the Great relationships require good Better Homes and Gardens Real Estate steps correctly with disciplined attention communication. You’ll see the CORE video content, and regular updates on to detail, and by reducing the possibility system difference at your initial changing market conditions. that any steps are missed. In the same consultation, which will not only provide way that pilots follow a “pre-flight plan” you with an overview of our company to make sure they don’t miss any steps services and marketing plan, but also Conclusion that might endanger their passengers, and identify your particular needs, concerns, At Better Homes and Gardens Rand surgeons follow a “safe surgery checklist” and goals. Our agents use our “Buyer Realty, we don’t just want to be the to reduce postoperative complications, Consultation Guide” when they have biggest real estate company. We want our project plans are designed to their initial meeting with buyer clients, to be the best real estate company. And effectively narrow down your price range which provides them with all the relevant we believe that the way to becoming and preferences, follow industry best information they need to ensure that they the leading company in the industry is practices during your home search, and achieve a comprehensive understanding to provide clients with the best possible to help you complete the transaction. of what you want and need in your buying service experience. That’s why we have Your agent will show you the initial Buyer experience. Similarly, we’ll keep the created the innovative CORE program, project plan during your consultation, but communication going throughout the and hope that you see the vast difference you will also receive the benefit of internal process, with email alerts from randrealty. in how we anticipate and satisfy all your project plans that we use throughout our com anytime a property hits the market or home buying needs. company to ensure attention to detail, goes through a price change. reduce errors, and provide an efficient,
  • 5. Buyer Orientation Guide | INTRO | Your Agent I Am The World’s Best Real Estate Agent and I Can Solve All of Your Problems I Move Homes So You Can Move Too.
  • 6. Buyer Orientation Guide | INTRO | Getting Engaged Introducing Hudson United Throughout your home buying experience, you’re going to be working not just with your agent but professionals who will service your lending, title, and insurance needs. You are always free to choose any service provider you wish, but we encourage you to meet with your representatives from Hudson United, part of the Rand family of home service companies. R eal estate transactions are complicated, with a lot of moving parts: real estate brokerage, mortgage lending, engineering inspection, legal representation, title insurance, and home insurance. Unfortunately, those parts don’t always work so well together. And when they don’t, what we often think of as the “American Dream” becomes more like a nightmare. Indeed, as the owners of Better Homes and Gardens Rand Realty, it has long been frustrating to see clients who otherwise had a wonderful service experience working with their Rand agent ultimately came out of the process miserable and unhappy – not passionate commitment to Client- because of anything their agent did, but abstract companies in the region, closing Oriented Real Estate (CORE) that we because the rest of their transaction was so almost 1,000 transactions every year have at Rand Realty, because we’ve mishandled. The clients might have been without a meaningful claim from its inception brought those same CORE principles thrilled by the work their agent did, but over 10 years ago. to all our affiliated companies. walked away from the deal with a sour taste • One Stop Shopping. You will have because of transactional delays associated Hudson United Insurance Group. Our a more efficient and fluid transac- with mortgage processing or title work. insurance company can provide you not only tion from the “one-stop shopping” with the homeowner’s insurance that you’ll experience that comes from all the That’s one of the reasons we are delighted to need at your closing, but with any policies professionals involved in your deal be affiliated with the Hudson United family you need, including auto coverage. working together. of home service companies, which provide • Increased Accountability. You’ll mortgage lending, title insurance, and home We encourage you to work with the benefit from the increased account- insurance to many of our real estate clients. professionals at Hudson United. As the ability that your transactional profes- Perhaps we are “control freaks,” but we are owners of the company, we’ve applied the sionals will have not just to you, but passionate about providing our clients with same commitment to excellence to these to your real estate agent, whom they need to keep happy if they wish to an outstanding service experience, and companies that we used when building a continue to maintain that referral we have found that we cannot ensure that great real estate company. And just like relationship. experience without taking greater control with Rand Realty, you get a local, family run over those moving parts of the transaction. company, dedicated to the people and the communities in our area. As the founders and operators of Better Hudson United Mortgage. Our full-service Homes and Gardens Rand Realty, we stand mortgage brokerage has access to any Most importantly, by putting all the moving behind the outstanding service professionals financial product you might need, and our parts of the transaction (literally) under one at Hudson United, the same way we endorse mortgage officers are available to help guide roof, we’re able to provide you with a better the Rand Realty agents who form the you through the financing process right from real estate experience – the integrated and backbone of our network of home service the initial pre-qualification. seamless one-stop shopping experience that companies. And we hope you will have the had long eluded our real estate clients: opportunity to enjoy the one-stop shopping Hudson Abstract Services. Our title • CORE Service. When you work with experience available from their combined insurance operation is one of the leading Hudson United, you get the same talents.
  • 7. Seller Orientation Guide | INTRO | Getting Engaged Getting Engaged The most successful home buyers are people who get proactively engaged in the purchasing process. Your agent is going to be hard at work finding you the right home, but there are some things he or she simply cannot do. So throughout this process, we’re going to urge you to stay involved in your transaction, which is the best way of ensuring that you have a great service experience. The first chance to be proactive in your purchase is your initial agent consultation. A s you work with Better Homes and Gardens Rand Realty, you’ll find The Three Stages of the Home Buying Process that we follow a rigorous set of project plans to ensure attention to detail.  Stage What Happens in this Stage? The plans are the hallmark of our “Client- Oriented Real Estate” philosophy: a set of In Stage One, we’ll help you get checklists that set out every significant started the right wayyou’re your task involving the purchase of your home home buying experience. You’ll have from your initial consultation to your your initial consultation with your closing. We have project plans and to-the- real estate agent, which will familiar- last-detail instructions for everything from ize you with the sales process, intro- identifying your preferences, qualifying for Stage One: duce you to our service approach, a mortgage, using randrealty.com, working Preparation and determine your needs, goals, with other professionals, and negotiating and concerns in buying your new offers. Indeed, the fact that you’re reading this Orientation Guide is proof that your home. And you’ll also set up the rest agent is following our Buyer Project Plan. of your home buying team, and learn It’s that kind of attention to detail and about all the resources available to commitment to service that differentiates you on RandRealty.com. Better Homes and Gardens Rand Realty from other brokers in the area.  In Stage Two, your agent will help you maneuver through the market But it’s not just about us, it’s about as you start your search for your you. There are simply some things that Stage Two: new home. You’ll learn strategies your agent cannot do for you, and that Search for finding the right home, get an you need to do for yourself. The most successful homebuyers are proactive and overview of the showing process, engaged in their purchase throughout the and some advice about making the process.  Indeed, the main purpose of right offers. the Orientation Guide is to help you get engaged by advising and informing you In Stage Three, your agent will guide about what you need to do throughout the you through the contract-to-closing process. At each stage of the process, process: presenting and negotiat- we’ll not only update you about what your ing offers, setting up inspections, agent is doing, but also what you can do to Stage Three: understanding real estate contracts, ensure that you have a great home-buying Transaction and securing financing and insur- experience. From the Introduction through ance coverage. You’ll also get some every stage of the transaction, we’ll give you ideas about what you can do to help advice about what to expect from make things go more smoothly. your closing, and how to ensure a smooth moving process.
  • 8. Buyer Orientation Guide | INTRO | CORE Plan CORE Buyer Checklist Pre-Transaction Project Plan Transactional Project Plan Get a copy of the Buyer Orientation Guide to read at Get recommendations from your agent for your your convenience. transaction professionals. Have your initial consultation with your buyer agent. Contact your attorney about reviewing the contract of sale. Review and complete your legal disclosures and agreements. Attend the home inspection. Review with your agent “What Are You Looking for in Review the home inspection report with your agent a New Home” and attorney. Get a prequalification letter from Hudson United Review issues in the contract with your attorney. Mortgage. Sign contracts of sale with your attorney. Start saving your bank statements and pay stubs for your mortgage application. Complete your mortgage application with your Hud- son United Mortgage rep. Register with randrealty.com Submit all your mortgage documentation. Set up saved searches on randrealty.com. Respond to all mortgage documentation requests Add “@randrealty.com” to your “safe senders” list. promptly. Set up a folder on your email account for your rand- Order or have your attorney order a title report from realty.com email. Hudson Abstract. Save the randrealty.com web app to your smart- Discuss any title issues with your attorney. phone. Contact your Hudson United Insurance rep to quote Set up a showing schedule with your agent. your home insurance. Communicate regularly with your agent. Get estimate of closing costs from your attorney. Review your randrealty.com email updates regularly. Get closing date from your attorney. Use the “Showing Project Plan” when looking at Contact movers for estimates of the cost of your homes. move. Get printouts of all show sheets. Hire a mover and schedule the move. Set up file folders for your show sheets (low-tech) Schedule and attend the walkthrough with your agent. Set up a spreadsheet to track your showings (high tech) Discuss any walkthrough issues with your attorney. Review all offers submitted by your agent. Attend the closing, bringing proof of identification and your checkbook. Order preliminary lien searches from Hudson Ab- stract for any offers you make. Finalize all transaction documents at the closing.
  • 9. Stage One: Preparation In Stage One, you’ll have your initial consultation with your real estate agent, who will familiarize you with the sales process, introduce you to our service approach, and determine your needs, goals, and concerns in buying your new home. In the Guide, you’ll learn about how to prepare for that meeting, how to assemble the rest of your home buying team, and how to get started using RandRealty.com. www.RandRealty.com
  • 10. Buyer Orientation Guide | PREPARATION | Chapter 1.1 The Advantages of Working with a Buyer’s Agent The most successful home buyers are people who get proactively engaged in the purchasing process. Your agent is going to be hard at work finding you the right home, but there are some things he or she simply cannot do. So throughout this process, we’re going to urge you to stay involved in your transaction, which is the best way of ensuring that you have a great service experience. The first chance to be proactive in your purchase is your initial agent consultation. B uying a home is easier than buying a car. The transaction is more complicated, because the stakes are so much higher, but the process is actually easier. For example, let’s say that you’re buying a four-door sedan. To find the right car, you have to go to a bunch of different dealerships, because dealers will only sell you the cars they have in their own inventory. So depending on your price range, you might have to go to a dozen different showrooms: Chrysler, Dodge, Chevy, Honda, Ford, Acura, Infiniti, Mercedes, BMW, Audi, Volvo, and all the rest. And you might even have to go to multiple dealerships that sell the same brand, since one Honda dealership can’t sell you a car held by another dealer. The process can be exhausting. On top of that, you are always at a disadvantage when navigating the car buying process, because you’re totally on your own. That car salesman in the showroom might be the nicest guy in the world, but we all know he works for the dealer. He doesn’t work for you. His job is to get his boss the best price for the car -- which by definition means getting you the WORST price! And that salesman has huge informational advantages over you. He knows what other similar cars have sold for recently. You don’t. He knows the ins and outs of that car, and how it compares to full-time agent, she has market and product knowledge: she other cars. You don’t. Even if you do all your research, you’ll knows what comparable homes have sold, what homes have NOT never equal his product and market knowledge. It’s not an even sold, and what’s currently available on the market. That puts you playing field. on an even playing field with the seller. Now compare that to buying a home. Because of the way the You see the difference? When you buy a car, you’re on your own, real estate industry is structured, with an agent on both sides and you’re always going to be at a disadvantage working with a of the transaction, home buyers have a much better experience salesperson who has superior market and product knowledge, navigating the process of buying a home. Unlike car dealers, and who negotiates the sale of cars every day for a living. But real estate brokers share all their inventory through a multiple when you buy a home, you get the advantage of hiring an agent to listing service, allowing any member buyer agent to show and sell help you sift through the inventory, advise you about what’s going their properties. So you don’t need to visit dozens of different on in the market and with that particular property, and then help real estate brokers or agents in order to see the whole inventory you negotiate your deal. – you just need one good agent. Regardless of who listed that property, any agent who is a member of the local MLS can show And on top of all that, your buyer agent usually comes free! you that property. In most cases, buyer agents are paid by the seller out of the proceeds of the sale. If you represent yourself, you don’t get that More importantly, when you buy a home, you have the savings in your pocket – instead, the seller or listing agent get opportunity to hire an agent to represent your interests. It’s not to keep it. So if that’s the case, why do some buyers so afraid like being at the car dealership where everyone works for the to hire a buyer agent? For example, real estate agents get calls seller. Your agent works for YOU. She has fiduciary obligations like these all the time: “Thank you for calling Better Homes and to look out for your interests. Moreover, if she’s a professional, Gardens Rand Realty. How can I help you?”
  • 11. Buyer Orientation Guide | PREPARATION | Chapter 1.1 The Advantages of Working with a Buyer’s Agent “I saw your sign on a house on Ridge Road in New City. Is it still see this with potential clients who are in the early stages of “just available?” looking,” and who are afraid of agents inundating them with phone calls and emails once they express any kind of interest in “Let me check. Yes, it’s still available. It’s got four bedrooms buying a home. It’s like when you go into a department store and and three –“ try to avoid the sales clerk because you’re really “just looking” and don’t want the clerk hovering over you for the whole time. “Great! Could you take me to look at it?” We can certainly understand why some buyers feel that way, “Well, I’d be happy to do that. Why don’t we make an because the real estate industry has a pretty well-deserved appointment for you to come into my office so we can sit down reputation for aggressive sales techniques that can sometimes for a few minutes and find out what your situation is? Then we make buyers feel uncomfortably pressured. But let’s also can go take a look at that home and maybe some other similar recognize a few important things: listings that might meet your needs.” But if you find that your agent is making you uncomfortable, “That’s okay. I just want to see that house. But I don’t want to just say something! Your agent works for YOU, so she should come to your office. Can we meet there?” accommodate to your needs and comfort level. If the agent is a professional, she should get the message, and you won’t have to We see this all the time in the real estate industry – buyers who worry about working with a “pushy” agent. would rather meet “at the house,” who spend months visiting open houses on their own, who waste hours staring at pictures “Ultimately, we understand”. on their laptops rather than making appointments to go see houses in person. They’ll meet an agent at the house, realize it’s Ultimately, we understand and appreciate that people are not right for them, then say goodbye to that agent. A week later, afraid of dealing with a “salesperson.” That’s why Better they’re calling another agent on another house, meeting at the Homes and Gardens Rand Realty has pioneered the “client- property, realize it’s not right for them, and so on. Such a waste oriented” approach to real estate brokerage that emphasizes of time! our agents’ roles as service professionals rather than “salespeople,” and encourages agents to take Why are so many people afraid to hire a a proactive approach to identifying and buyer’s agent? Sometimes, potential satisfying our clients’ needs – including buyers in the early stages of looking for the need NOT to be sold to. We don’t a home are actually too considerate for want our real estate agents to act as their own good. They’re afraid to call “salespeople” any more than you do. upon an agent’s services and make So we hope that you’ll realize that the agent waste a lot of time helping having an agent is good thing, not them if they’re not really sure something to shy away from. A they’re ready to buy. And while we fear of sales pressure is a really do appreciate the thoughtfulness, bad reason to deny yourself the we should make clear that this is services of a good real estate a TERRIBLE reason not to hire an agent, particularly when it is so easy agent. That’s the job! That’s what real to dispel that pressure and focus estate agents do! They help people the agent on providing you with the just starting out in the buying process services you need. and guide them through that process. Do a lot of clients eventually choose not to buy Rather, you should think about all the something? Of course! But that doesn’t mean advantages you get with a good buyer’s agent: that the time spent was “wasted.” Agents don’t think that way. You shouldn’t either. First, your buyer’s agent acts as a fiduciary representative, legally bound to look out for your The biggest reason, though, is that buyers are afraid of best interests. If you’ve never bought a home before, “salepspeople.” They’re terrified of the “hard sell.” They or you last bought a home prior to the mid-1990s, you fear getting a “pushy” agent who is going to pressure them might not even realize that buyer agents have that into buying a home before they’re ready. We particularly fiduciary responsibility to their clients, because buyer
  • 12. Buyer Orientation Guide | PREPARATION | Chapter 1.1 The Advantages of Working with a Buyer’s Agent agency did not exist in New York until about 20 years ago. But And that’s only a short list of some of the biggest advantages you it’s now one of the most important advantages you have in have in hiring a good buyer’s agent. Basically, good agents add buying a home with an agent. Indeed, the fiduciary relationship value to your home buying process. with your agent is similar to the attorney-client relationship that you’re probably familiar with: among other responsibilities, Third, a buyer agent provides a range of services that will your agent has the duties to be loyal only to you, keep your help you have a better transactional experience. From your confidences, and make all disclosures to you of any material first consultation to your final closing, your agent is responsible facts. When you get a buyer’s agent, you’re not getting a for a wide array of services that you will need to ensure a “salesperson” – you’re getting someone who is on your side, smooth home buying experience. Throughout the process, representing your interests. your buyer agent will stay in constant communication with you, through phone or email, to make sure you’re up-to-date with Second, working with a buyer agent gives you several what’s happening in the market, your home search, and your competitive advantages that you cannot get working on transaction. your own. Some of those advantages, including advantages that you can only get working with a Better Homes and Gardens Rand Finally, you generally do not pay for your buyer agent’s Realty agent, are: services, because the seller usually pays all the broker fees out of the proceeds of the sale. It’s really one of the best • ccess to sold property data. Even in the information age, A deals in the industry: you get all the services of a buyer agent it’s difficult for lay people to get full and complete access to to represent your own interests, help you find the right home to sold information, which is crucial for helping you determine buy, and facilitate the entire purchasing process, and you don’t the market value of unsold listings and in preparing your even have to pay for it. In certain cases, sellers do not offer to offers. pay buyer agent fees, but your agent will make that clear to you when you look at the home, so you will be able to condition your • reliminary lien searches. Because of our affiliate P offer on the seller paying the agent out of the sale proceeds. relationship with Hudson United Abstract, your agent can Generally, though, you get all the benefits of buyer agency order a preliminary lien search on any property you place without any of the direct costs. an offer on, which can help you in formulating your pricing strategy or identifying “red flags” on the title that might delay your transaction. Working with Multiple Agents If working with one agent is good, is working with multiple agents better? Answer: No! • he intermediary negotiating role. T Sometimes, buyers like to work with multiple agents because they think that they’ll get Any professional negotiator will tell more work done that way. But all that does is undermine the relationship you could you how important it can be to have develop with one agent, and waste a lot of your time. All agents in the local MLS have someone act as an intermediary in access to the same inventory of listings, so working with multiple agents means that any negotiation, to deflect persuasive you’ll probably end up seeing the same properties over and over again. Moreover, you’ll pressures and allow you to limit find that one of the most important aspects of the agent-client relationship is the insight bargaining authority from “outside the that an agent gets from working with you over time, which requires a long-term, deep, room.” and exclusive relationship between you and your agent. Don’t play the field. Make a commitment to the right agent. • eighorhood Expertise. A good real N estate agent knows the neighborhoods, and can provide you with information that goes beyond the Conclusion four corners of the listing detail sheet, information that might be crucial for determining the true market price. Ultimately, this is one of the best deals you’ll ever have. Your buyer agent will work tirelessly on your behalf, always in your • Transactional Facilitation. A real estate agent’s job doesn’t best interest, and in the end it will be the seller who pays your end when you reach a meeting of the minds with a seller – agent for those services. Think of it this way – real estate agents rather, the agent then becomes a facilitator, coordinating all have a full-time job in helping buyers through the transactional the other professionals in the transaction to make sure you process. If they’re not around to do that job for you, then you have a smooth transition through to your closing. have to do it for yourself. And you probably have your own job.
  • 13. Buyer Orientation Guide | PREPARATION | Chapter 1.1 The Advantages of Working with a Buyer’s Agent Agent Services Through All Three Stages of Your Home Buying Experience Explain the entire transactional process, so you’re fully informed about what you can expect during your purchase. Stage One: Preparation Help you navigate the buying process, to avoid delays and pitfalls throughout your transaction. Help you discover your needs, wants, and desires in purchasing a home, helping you narrow down your home buying preferences and introducing considerations that you may have overlooked. Connect you to a qualified mortgage professional to help you fully understand the financing process, get prequalified for a loan, and ultimately provide you with your home financing. Help you assemble the rest of your home buying team, including your engineering inspector, attor- ney, title representative, and insurance representative. Provide ongoing information about the housing market in your target areas to help you stay on top of pricing trends. Set you up with saved searches so that you get email alerts whenever a relevant property hits the market, has a price change, or gets updated. Stage Two: Search Help you review available inventory and find the home that suits your needs, wants, and desires. Create buyer tours and comparative market analyses on properties you see, to help you in preparing the terms of your offers. Schedule your appointments, and help you navigate through the inventory of homes available. Professionally present your offers and negotiate the purchase of your home to ensure you get the best terms possible. Obtain a preliminary lien search report from Hudson United Abstract to determine whether your po- tential purchase is burdened with liens that might delay your closing. Stage Three: Transaction Order and attend a property inspection and review all findings with you to help determine whether the property condition should affect your offer. Assist your attorney in preparing the terms of a contract of sale. Coordinate all the members of your home-buying team – finance, legal, title, insurance – to ensure a seamless transaction. Attend the walkthrough prior to the closing to make sure that the property condition is acceptable to you. Attend the closing to be available as a resource for any last-minute issues that crop up.
  • 14. Buyer Orientation Guide | PREPARATION | Chapter 1.2 What Are You Looking For? Your first consultation with your buyer agent is an important step in setting the right course for the rest of your home buying experience. It’s a great opportunity to share with the agent your hopes, wants, and desires about the process, and to ensure that your agent knows exactly how to best service your needs. In order to have the best possible first consultation, we encourage you to prepare for the meeting by thinking about what you want from your home buying process. W e want to give you some • What are your biggest concerns about information about what you buying a home? can do before your initial consultation with your buyer’s agent. This • Are you familiar with the current state will ensure a more productive meeting, of the regional housing market? consistent with our overall advice to be actively engaged throughout your buying • How comfortable are you using process. technology to search for a home, like on randrealty.com? At your initial consultation, your agent will ask you questions about your familiarity All our clients are different. Some have with the buying process, your preferences purchased homes recently, and know in the type of home you want, your exactly what to expect. Others are first- geographic needs, and your purchasing time home buyers apprehensive about power. We will also be asking about any what they should expect from the process. particular concerns or needs you have Whatever your situation, you want to make about buying a home. sure your agent knows what you need from us to help you fully understand the You will have a more productive meeting • Have you already started looking on process. if you think about those questions in your own? What have you found that advance. You have no obligation to interests you? What Do You Want From prepare ahead, but you’ll find that you’ll Your Agent? get more out of the meeting if you think Remember that buying a home can take You should think about what you’re about these issues before you’re sitting a long time. Most of our clients spend looking for from your Better Homes and down with your agent. Moreover, this months in just the home search process, Gardens Rand Realty agent to ensure that exercise will also help you get into the and once you find the home that you want your agent knows how to best service your right frame of mind about your home to purchase, you’ll likely spend three needs. search process, and help get you into the to four months more completing all the practice of being more proactive about the transactional work that is required to • What are you looking for in an agent? entire process. execute a contract, secure financing, and finishing all the other tasks required to get • What’s the most important quality you Here are some of the questions you your purchase closed. look for in service professionals? should consider before sitting down with your agent for the first time. How Well Do You Know the Home • How do you want to communicate with Buying Process? your agent: phone, email, text, or only Why Are You Moving? You should be prepared to discuss in-person? People move for all sorts of reasons, and with your agent your comfort level it’s helpful for your agent to know about and familiarity with the buying and • How often do you want to hear from your particular motivations so that he or financing process. This will help your your agent: daily, regularly, or only when she can help prepare to get your process agent in gauging the amount and type new properties come onto the market? moving at the pace you desire. of information you should be getting throughout the process. • How often do you want to go look at • What’s the reason for your move? properties, and are you already looking • Have you done this before, or are you on your own? • What’s the time frame of when you want otherwise familiar with the process of to be in your new home? buying a home?
  • 15. Buyer Orientation Guide | PREPARATION | Chapter 1.2 What Are You Looking For? Our goal at Better Homes and Gardens Rand Realty is to ensure that you have The Buyer Disclosure Packet an outstanding home buying experience. Buying a home is a serious financial and legal transaction, so at Better Homes and Gar- The first step for making that happen is to dens Rand Realty we are deeply committed to ensuring that you fully understand your know exactly how you want to be serviced, legal obligations and protections. That’s why we have created what we call the “Buyer so make sure you explain to your agent Disclosure Packet,” which is a professionally designed package containing all the docu- what it is you want from him or her. ments relating to your home purchase. Your agent will present your Disclosure Packet on your first meeting, and will go over all the forms with you. The Packet might seem How Familiar Are You With the overwhelming at first, but remember that these documents are designed for your pro- Financing Process? tection, and are required by federal law, state regulation, or the Realtor Code of Ethics. You should feel comfortable discussing If you’ve met other agents who didn’t ask you to fill out these forms, you should wonder your financial situation with your real estate why they’re shirking their legal obligations to advise you of your rights! agent, since all our agents are licensed professionals who are qualified to help determine your purchasing power. You should absolutely have a good sense of United Mortgage representatives to discuss home you want, it’s important to keep an your purchasing power before you spend financing with you. open mind. What a lot of home buyers find time looking at houses that might be above is that they end up purchasing a home that or below your proper price range. What Are You Looking For in is very different from the types of homes Your New Home? they initially started looking for when they • What price range do you think you Finally, and most importantly, you should began the process. They start out looking qualify for, based on your income and take some time to think through what in a particular town for a specific home your savings? you’ll looking for in your new home. Now, style, but once they being looking at what’s you might have a general idea of the kind available they fall in love with a totally • How much are you comfortable of home you like, but you’ll be amazed at differently-styled home that is completely spending for your monthly mortgage the myriad choices that you’ll have once outside their original market area. That’s payment, insurance, and property you start looking at the properties that are a very normal part of the process, so don’t taxes? available. be alarmed as your tastes evolve. • How comfortable are you with your The list of questions below are designed to Conclusion understanding of the financing process, prompt you to think about all the various Your initial consultation with your Better which has become more complicated in considerations that might go into your home Homes and Gardens Rand Realty agent is the past few years? purchase. Some of these questions will just the first step of your home purchasing address issues that are unimportant to you, process, but it’s an important step. It’s • Have you been pre-qualified for a but some might spark you to realize that your first opportunity to really think mortgage amount by a local mortgage you have particularly needs and desires through what you want from your agent, consultant, or do you need to talk that you’re going to want to satisfy in your what you’re concerned about with the with a Hudson United Mortgage new home. So think about each of these process, and what kind of home you’re representative? questions, and if they prompt some ideas looking for. So please take some to think then be sure to share them with your agent. about these issues before you meet with If you would be more comfortable discussing your agent, to ensure that you have the finances with a mortgage consultant, have Ultimately, though, even as you go through best possible first meeting and get things your agent contact one of our Hudson the exercise of thinking about the kind of started on the right foot.
  • 16. Buyer Orientation Guide | PREPARATION | Chapter 1.2 What Are You Looking For? What Are You Looking for in a New Home: Questions You Should Consider Before Meeting with Your Agent Location What area would you like Are school districts to move to, and why? important to you, and is Where will you be working, and what type of proximity to local schools commute are you comfortable with? important to you? Are there other areas would you consider? Is proximity to particular religious institutions important to you? Size and Style What size of a home Do you have any kitchen appliances, eat-in-kitchen, etc.) are you looking for, in a What type of home (ranch, raised- preferences (certain style of general square footage ranch, colonial, contemporary, etc.) range? are you looking for? Do you have any particular Are any of these things “must preferences for amenities (i.e., pool, haves,” or are they just master bedroom on the first floor, preferences? If they’re just fireplaces, etc.)? preferences, which of them is Will you be working inside most important? Do you have any the home, and do you need a particular and unusual designated home office? Do you have any particular preference needs in a home that for lot size? the agent should know Do you have a particular preference How many bedrooms and about, such as large for block location (i.e., corner lot, cul- baths do you need? pets or residents with de-sac, etc.)? disabilities that need accommodation?
  • 17. Buyer Orientation Guide | PREPARATION | Chapter 1.2 What Are You Looking For? What Are You Looking for in a New Home: Questions You Should Consider Before Meeting with Your Agent Personal Tastes Do you want a lively neighborhood, or do you What features of your like privacy? PERSONAL TASTES Do you prefer a home previous homes did you that is a “hub of activity,” or do you prefer a like the most? What did quiet retreat away from the world? you like the least? Do you like a big open floorplan, or do you prefer a more traditional Who will be living in the home, and is there a layout with defined room spaces? possibility in the future that the number of people living there might change? Is there something you disliked Have you visited homes that you about your previous home, and liked for its unique features, and would you like to avoid that in your what were they? new home? What are the most important “must-have” features for your new home? What’s your highest priority?
  • 18. Buyer Orientation Guide | PREPARATION | Chapter 1.2 What Are You Looking For? Are You Looking Outside Our Market Area? Although Better Homes and Gardens Rand Realty services a wide geographic area, we often work with buyer clients who are also looking outside our market area. If you are also considering moving to places like Long Island, Connecticut, or even a market area that Rand covers but is not directly serviced by your agent, you should absolutely tell your agent that you need help outside of the market area that he or she covers. This will allow your agent to refer you to another Rand agent that does serve the market area, or to one of our “referral partners” who can ensure that you have a great buying experience. What’s are the benefits to you of being referred? • First, you’ll find that you’ll have a better experience if your agents covering the different market areas are working together, rather than “competing” to get you to buy in their area. They’ll be able to share information during your process as they learn about what you like and don’t like in homes that they show you. • Second, you’ll be assured that you’re only working with agents that meet the high standards we have for our referral agents. • And third, you’ll find that your referred agent will work hard to ensure you have a good buying experience, because he or she will know that future referrals depend on your providing us with posi- tive feedback about their performance. So if you are thinking about looking outside our market area, or outside the are serviced by your agent, you should let your agent know so we can make sure all of your home buying needs are met.
  • 19. Buyer Orientation Guide | PREPARATION | Chapter 1.3 Assembling Your Team Buying a home requires more than just the services of a great real estate agent. You are going to need a team of real estate specialists to help you with your financing, legal, and insurance needs. A great team can make a big difference in your real estate transactional experience, so it’s important to start assembling that team as soon as possible. B uying a home is a big project. It’s not something you can do yourself, and it’s not something that even the best real estate agent in the world can do by herself. Like any big project, you need more than just one person. You need a team. Your real estate agent is like the quarterback of your team, the most important player, the one who has the ball in her hands for most of the game. Indeed, her primary role through much of the process will be directly helping you find that home: taking you on showings, evaluating the market, preparing and an inspection to ensure that the home in the process, discuss your insurance presenting offers, and reaching a meeting is fundamentally sound. Your home options, and then be able to secure of the minds with a seller. inspector will review the condition of coverage quickly. the home, and prepare a report that But once you’ve reached an accepted offer you’ll be able to review with your agent Throughout your home buying process, it’s with a seller, your agent’s role becomes before you sign contracts to purchase your agent’s job to facilitate the work of much more facilitative. She doesn’t have the home. all these professionals. She’ll coordinate much direct work to do once you’ve found with the loan officer, schedule and attend the home you’re going to purchase, but • eal Estate Attorney. Your attorney R the inspection, provide your attorney with now has the primary role of coordinating will counsel you about your rights and all the deal terms, order preliminary lien and directing the rest of the players on responsibilities under your contract of searches from your title representative, your team. Like the quarterback, her role sale, and negotiate the final terms of and provide whatever information your is to set the formation, call the plays, and the deal with the seller’s agent. insurance representative needs to make make sure everyone else is doing their job sure you have coverage at your closing. correctly. • itle Representative. Your title rep T Like the quarterback, a good real estate will order your title insurance, which agent knows how to get the most out of The Players you’ll need to protect against adverse the other players on the team. Here are some of the players that you’ll claims of ownership. And if you’re need on your home buying team: working with Hudson United, you can order preliminary lien searches during Hudson United • oan Officer. Your loan officer is L your home search process to gather responsible for ensuring that you get important information about homes Hotline financing for your home purchase. You you’re placing offers on. should start working with your loan 1(845) 825-8061 officer right at the beginning of your • ome Insurance Representative. H If you ever need your Hudson United process, getting prequalified so that You will need full home insurance mortgage, title, or insurance repre- you know how much home you can coverage before your closing. As sentatives, you can call our hotline afford. always, we urge you to be prepared number and talk to a customer service in advance, and one way to do that representative who can connect you • ome Inspector. Once you have an H is make contact with your Hudson to the people you need. accepted offer on a home, you’ll need United Insurance representative early
  • 20. Buyer Orientation Guide | PREPARATION | Chapter 1.3 Assembling Your Team Choosing Your Team Second, hire only local professionals the process while they find the attorney, Now that you know the players, the next with expertise in your market area. Too make first contact, have a consultation, question is about choosing up sides. many buyers make the mistake of hiring and then start the process of reviewing the If you want to have the best possible out-of-market professionals who are not sales contract. Similarly, too many buyers transactional experience, we have some familiar with the local market when buying a find themselves scrambling to get home recommendations about how you should home. They’ll try to get financing from some insurance coverage the day before their pick the professionals that you’re going to online mortgage company because they closing, because they failed to plan ahead. have on your home buying team: get seduced by some “bait and switch” rate that will mysteriously be unavailable once That’s why you should start assembling First, trust your agent’s guidance in they are getting ready to close. Or they’ll your team now. Ask your agent for choosing your real estate professionals. try to save a few bucks by getting relatives referrals for the professionals you will need Your agent is going to have to coordinate who happen to be attorneys to handle their throughout the process. Establish those all the moving parts of your real estate contract and closing, even though they relationships. It doesn’t take a lot of your transaction, so you will most likely have a don’t normally do real estate law. Don’t time, or their time, to have a five-minute better experience if you agent is working make these mistakes. Trust your agent to conversation to put them on notice that you with professionals that she has worked refer you to professionals who know the might need their services sometime in the with in the past. Your team will perform local area and have a strong reputation future. And then they’ll be available to you better if the players have more experience in the local industry. Hiring out of market throughout the process whenever you have working together. Moreover, trusting lenders, attorneys, or engineers might look questions that you need answered. You’re your agent’s recommendations is also like a good deal, but it almost always causes going to need them eventually, so why not a great way to ensure the quality of the delays or difficulties for your home buying hire them now? professionals you’re going to work with. process. Those professionals know how important it Conclusion is to maintain their service reputation in the Third, don’t wait until the last minute. We Finally, we also encourage you to meet industry, to ensure that they continue to include this section on “Assembling Your with the professionals from Hudson get referrals from real estate agents. After Team” in the Preparation Stage of the United, who can provide you with an all, you’re likely to do only one real estate Orientation Guide for a reason – because integrated and seamless “one stop transaction in the next few years, but your it’s important for you to start planning shopping” experience for your mortgage, agent will do many transactions this year ahead in choosing the professionals who title, and insurance needs. The better and have many more opportunities to refer are going to help you through your real the working relationships among your service professionals. Those attorneys, estate transaction. For example, most team members, the easier it will be to engineers, and mortgage officers want to buyers make the mistake of waiting until ensure that you have a great transactional stay on that referral list. they have an accepted offer to hire an experience with Better Homes and attorney, which invariably causes delays in Gardens Rand Realty.
  • 21. Buyer Orientation Guide | PREPARATION | Chapter 1.4 Getting Pre-Qualified Getting a mortgage will be the most difficult part of your home buying process, but you can have a better experience if you get prepared and start working with your loan officer right from the beginning. T he hardest part about buying a • lear to Close. Once you have C home is getting a mortgage. For satisfied all the conditions, your Price Range Shortcuts the most part, you will actually bank will issue a commitment letter Here are some simple rules of thumb enjoy the home buying process: after all, and you will be “clear to close” your to help you figure out your general looking at homes is like “shopping,” and transaction. price range: most people enjoy shopping. Looking at homes online, going on showings with How can you be more engaged, so 1. The 3.5x Income Rule your agent, getting to know the different that you are better prepared? Most Take your income and multiply it by areas and neighborhoods – those are all importantly, you should meet with a loan 3.5 – that’s how much home you can the fun parts about buying a home. officer right away. At Hudson United afford, assuming that you can also Mortgage, our affiliate lending company, make a reasonable down payment and But the mortgage process is messy, we encourage our clients to meet with have decent credit. (This used to be complicated, and often intimidating. a loan officer right at the beginning of the “3x” rule, but when interest rates That’s why we want you to be prepared. their home search, because even a short are in the 3-5% range, it’s 3.5x). Our general advice to be engaged and consultation can answer your questions proactive is particularly important for about the current rate environment, 2. One-Quarter of Income Rule getting a mortgage. If you’re actively assuage some of your concerns about the On the other side, to figure out how involved throughout the mortgage process, and also help you get a better much of a monthly payment you process, and if you start planning ahead sense of your buying power. Too many can afford, take one-quarter of your now, you’ll have a much more pleasurable buyers start looking for a home without a monthly income. Assuming decent experience. clear idea of how much they can afford, credit, that’s how much you can and they waste a lot of time looking at reasonably spend on your mortgage Because the mortgage process is so homes that are above, or below, their payment. central to your home buying experience, actual price range. you should have a general sense of how that process will develop: At your initial consultation with your loan officer, you should be prepared to discuss should be aware that a pre-qualification • nitial Consultation. You’ll meet I in some detail your financial situation. letter is not a firm commitment from the briefly with your loan officer and get a Remember that loan officers, at least bank – you won’t get anything like that pre-qualification letter to advise you of the ones with Hudson United, are under until you complete and submit a formal your general price range. strict licensing requirements to protect loan application, which you cannot do until the privacy of your information and keep you actually find a home to buy. Rather, • pplication. Once you find a home A your confidences, so you should feel the pre-qualification letter is really just a to purchase, you’ll complete a formal free to discuss your personal situation general indication of your buying power. mortgage application to your lender. without holding anything back. Your loan officer will review your financial profile, But the pre-qualification letter is still • rocessing. Your loan processor, who P give you a general sense of your price important for two major reasons: works with your mortgage officer, will range, describe the current interest rate review your file and probably contact environment, and explain the various First, it will allow you to go through the you about supplementing it with some mortgage products that might be available process of discussing your financial supporting documentation. to you. situation with your loan officer, which will ensure that you have a good sense of your • nderwriting. Your processor will U Most importantly, by having that initial true price range before you go out and submit the file to an underwriter, who consultation with your loan officer, you’ll start looking at properties. could deny or approve the application, be able to get a pre-qualification letter: but will more likely issue a “conditional a statement on the bank’s letterhead Second, and perhaps more importantly, a commitment” required more indicating that you have been “qualified” pre-qualification letter from a reputable documentation or clarification. for a particular price range. Now, you lender like Hudson United is almost a
  • 22. Buyer Orientation Guide | PREPARATION | Chapter 1.4 Getting a Prequalification Letter If you do not yet have a prequalification letter, just call (845) 825-8100 to speak to a Hudson United Mortgage loan officer. We can arrange to get your prequalified over the phone and have a letter emailed or faxed to you immediately. “stamp of approval” for sellers and listing have identified a property to buy and have “team,” and someone you can then agents. In a competitive environment for submitted a full application to a lender. contact whenever you have financial buyers, a pre-qualification letter indicates Rather, the pre-qualification letter is questions or issues. that you are credible and serious, and that designed to give you just a general idea of you have the general financial wherewithal your price range, so that you have a better Conclusion to back up your purchase offers. Indeed, sense of what you can afford when you This is really only a general introduction to many sellers demand a pre-qualification start looking for a home. the mortgage process. If you want a more letter before they will even consider your comprehensive overview of mortgage offers! Accordingly, we strongly urge that you products, qualification guidelines, and have a short sit-down with your loan interest rates, check out the Hudson All that said, we should note that a officer early in your buying process. By United Transaction Orientation Guide, pre-qualification letter is not a binding forging that connection with your loan which is available from your Hudson commitment from the bank. You won’t officer, you’ll secure one of the most United mortgage loan officer or your get any kind of formal approval until you important members of your home buying agent.
  • 23. Buyer Orientation Guide | PREPARATION | Chapter 1.5 Getting Started with RandRealty.com The first step in your home search process is setting yourself up on randrealty.com, the premier real estate website in our region. In this section, you’ll find out about all the features on the site and learn how to register so that you can get email alerts for your saved searches and properties. T he Rand organization has always • owerful search tools. You can do P means that most of the visitors to our site been one of the leading technology quick searches right from the home aren’t even in the market to buy a home. companies in real estate, page, or do an advanced search to recognized throughout the industry as pinpoint the types of homes you are Property Detail Page a cutting-edge pioneer committed to looking for, including multiple area Once you’re done your searches on providing our agents and clients with the searches with simple check boxes (not randrealty.com, you’ll notice the elegant, best tools possible. The centerpiece of those “hold down the CTRL-key while intuitive design of the property detail our dedication to technological innovation you….”-type systems). pages, which provide all the information is randrealty.com, our award-winning available from the multiple listing system, website providing the best real estate • pen house listings. Open house O and even more information for the many search and property display features listings are updated every week if you listings with our company. In addition, we available in the industry. want to narrow your search just to have integrated a number resources into homes available for public viewing that the site to give you features like mapping, The randrealty.com site has long been weekend. demographic information, market data, at the leading edge of the regional and school information. real estate industry. We were the first • ommunity Insight. If you want to C company to provide full multiple listing research the local area, you can find Here are some of the highlight features of inventory, the first to add multiple comprehensive demographic reports the property detail pages pictures, the first to provide mapping and and school information for all our address information, the first to adopt communities and school districts. And • p to 50 high-resolution photos. U blogging and social media integration. you should also check out Community We display all the photos provided We are constantly innovating the site, Heartbeat, our lifestyle blog for our by the MLS in the highest resolution adding new features and capabilities local communities, featuring local possible, with up to 50 photos designed to provided our clients with the attractions, village and town profiles, available for our own listings. best experience possible. and picture tours. • ull property descriptions. Unlike F Today, randrealty.com gives you access • ifestyle resources. To learn more L some sites, we do not have a maximum to every property for sale through all the about home design, decoration, and character count for our property multiple listing systems in the region, improvement, take a look at the videos descriptions, so you won’t miss out on with powerful, intuitive and easy search and articles from Better Homes and a particularly lengthy home profile. features. We also provide access to Gardens Real Estate, which cover innumerable resources that you might everything from do-it-yourself projects • roperty addresses and mapping. P need during your home search, including to design trends to home makeovers. Every listing has the property address market data, school reports, and even and all Google map features, so you design and decorating videos and articles • arket Intelligence Blog. Our M can see where the home is, toggle to a from Better Homes and Gardens. company blog features analysis and satellite view of the property on Google commentary on the national and Earth, and get driving directions. The Site Features regional real estate markets, and satellite views are particularly helpful Here are some of the feature highlights of advice for our clients. for getting a sense of the property line randrealty.com: and dimensions. Ultimately, our goal is to make randrealty. • ll the listings. Randrealty.com is A com your bookmarked site for anything • he Toolbox. Every local area has its T one of the few places you can go to you need to know about local real estate, own “toolbox,” which is a collection get listings of the entire regional area, not only during your home search but of school reports, demographic so you don’t have to look in different after you close. Indeed, the site gets information, and a community tour places if your search takes you across almost two million yearly visitors, about from the Community Heartbeat blog, a county or state border. 100 times the number of people who buy so you can do in-depth research of that a home in our region every year, which individual property.