Working with Buyers
Setting Realistic Expectations
TonyOakley.com
•
•
•
•
•
•
ASKING THE RIGHT QUESTIONS
HOW TO EXPLAIN COMMISSIONS
CO-BROKING
WORKING WITH LENDERS AND ATTORNEYS
MAKING PROFESSIONAL OFFERS
SETTING REALISTIC EXPECTATIONS FOR:
•
•
•
•
•
Financial Statements
Closing Costs
Open Houses (resale and new developments)
Agency Disclosures
Board Package DRAFT w/ sample letters
Are You In Control of Your Buyers
2
 Building relationships and keeping them for life is
the Gift That Keep On Giving.
 Are you focused and In the Zone?
 Make them feel Safe
 Do they feel like a VIP?
TonyOakley.com
Building Relationships
3
Getting to know your buyers:
Give Me 5!
TonyOakley.com
Getting to know your buyers
4
 Building Relationships:
Buyers must know you, like you and know that you understand your
business.
 Getting the Conversation Started: it’s about Education.
 Have you been pre-approved for a loan or will you be paying cash?
 What are you dreams for new home?
 Boards and some sponsors will be asking to review your tax returns

 Who’s paying for this purchase?
 What are you looking for?
 Who will occupy the home?
 Do you have a NYC Real Estate Attorney & Lender?
 The Do’s & Don’ts when Financing
 Submitting a Professional Offer & Getting to Closing
TonyOakley.com
Section 1: Personal Information
5
Who’s Paying for this purchase?
Who will be making the financial decision for
this purchase? You? A parent or benefactor?
IF it’s not the person sitting in front of you then
you need to speak to that person directly; set
realistic expectations for all parties involved.
TonyOakley.com
Section 1: Personal Information
6
 Your full name: ………As it appears on their driver’s










license.
Names of all that will be living in the home:
Your home address: (US address if you have one):
Pets: if you have pets please describe them:
Email:
What are the best days and times for you to view units:
What company do you work for:
How long have you worked there:
Current salary:
Anticipated Bonus:
Last 2 years income including bonus:
TonyOakley.com
Section 1: Personal Information
7













Have you declared bankruptcy in the last 7 years:
What’s your Credit Score:
Approx. amount of debt:
Approx. amount of savings:
Bonds: $
Stocks: $
Real Estate owned and location:
Reasons for moving to NYC: ???
Have you ever been a defendant or litigant in a lawsuit:
Have you ever been turned down by a board:
Do you play a musical instrument or sing:
Is this a Pied e Terre:
Who will occupy the apartment:
TonyOakley.com
Section 2: What Are You Looking For?
8














What areas would you like to live in?
Condo vs Coop
Townhouse or building:
Elevator or walkup:
# of Bedrooms
# of Bathrooms
OR….. Room Count: see attached.
Price:
How much do you intend to put down:
Location: Click HERE for a map of NYC
Pets or no Pets:
Doorman or not:
Renovated, New Development, Pre-War or everything in your price range?
Would consider doing minor renovations or would you prefer Mint/Good
condition only?
TonyOakley.com
Section 2: What Are You Looking For?
9
If your needs or wants change
Please Let Me Know.
TonyOakley.com
PERSUASION
10
TonyOakley.com
Section 3: Commissions, Listings & Financing
11
Commission and Listings:
 It's important for all buyers to understand that in New York
City the Seller pays commissions.
 HOWEVER, we are seeing more and more that buyers are
having to kick in some, if not all, of the buyers commission.
 As your agent I will confirm with the listing agent when
making appointments about commissions and make you
aware of any such listings.
TonyOakley.com
Keep Asking
12
Are you happy with this process or are there other
ways to I can make you feel SAFE(er)?
TonyOakley.com
Section 3: Commissions, Listings & Financing
13
What about Listings:
 No MLS System Or Do We?
 Explain Co-Broking with REBNY: 24 hours.
 Did I miss a listings? Streeteasy, Realtor.com
 Open Houses
 New Development
TonyOakley.com
Nanny Cams are Everywhere!!
14
TonyOakley.com
You’re FIRED!!!!
15
TonyOakley.com
Section 3: Commissions, Listings & Financing
16
Making Offers:
 Our changing market: Is it Up, Normal or Down?
 In this up-market climate it is not unheard of that you might lose 3 to 5 deals before
getting an executed contract. Even an accepted offer is not a done deal.
 Aggressive buyers will continue to place offers even after the bidding process has
finished. The owner does not want to leave money on the table so the negotiations
continue until you have an executed contract (contract signed by buyer and seller).
 CASH IS KING: In NYC today we are in a Seller's Market and cash is king but it
usually will not get you that much of a “better deal”. To ensure my buyers can play
by today’s rules, I guide them to look in a price range below their target, knowing
full well that the final selling price will likely be at or above the asking price.
 Note: Comps are usually 3-6 months old and so you’ll need use the data and your
gut to the current market today.
TonyOakley.com
Section 3: Commissions, Listings & Financing
17
Credit Score:
 Do you know your credit score? Will you have issues
getting your loan. Check your credit score for FREE:
 Prime National Credit Repair; info below.
 Prime National Credit Repair
 Andrea Kent; Senior Credit Consultant
 212-889-0613 direct
 866-854-9848 Ext. 700 work
 [email protected]
TonyOakley.com
Section 3: Commissions, Listings & Financing
18
Pre-approval Letter:
 When you begin your new home search will you be




financing or paying cash?
If financing you will need a pre-approval vs prequalification:
Many local & international buyers are paying CASH Only
and often above the asking price.
Local buyers will often pay all cash and then refinancing 36 months after closing.
Just so that you'll understand the difference between prequalified and pre-approval process here's an explanation:
TonyOakley.com
Section 3: Commissions, Listings & Financing
19
The Skinny on Pre-Qualified: easy peasy!
 Getting pre-qualified is the initial step in the mortgage
process, and it's generally fairly simple.
 You supply a bank or lender with your overall financial
picture, including your debt, income and assets.
 After evaluating this information, a lender can give you an
idea of the mortgage amount for which you qualify.
 Pre-qualification can be done over the phone or on the
internet, and there is usually no cost involved. Loan prequalification does not include an analysis of your credit report
or an in-depth look at your ability to purchase a home.
TonyOakley.com
Section 3: Commissions, Listings & Financing
20
The Skinny on Pre-Approved: show me the money!
 Getting pre-approved is the next step, and it tends to be much more
involved.
 You'll complete an official mortgage application (and usually pay an
application fee), and then supply the lender with the necessary
documentation to perform an extensive check on your financial
background and current credit rating.
 From this, the lender can tell you the specific mortgage amount for
which you are approved. You'll also have a better idea of the interest
rate you will be charged on the loan and, in some cases, you might
be able to lock-in a specific rate
TonyOakley.com
Section 3: Commissions, Listings & Financing
21
Do you need a mortgage broker?
What about an attorney?
Referrals can be tricky!
TonyOakley.com
Section 3: Commissions, Listings & Financing
22
Financial Statement:
 Be correct: it might be submitted with the package.
TonyOakley.com
Working With Buyers
23
#4: Open Houses:
Are you planning on attending an open house?
 Resale
 Register you buyers
 Escort your buyers when possible
 New Development
 Register your buyers
 Open House = Make an appointment
 Please, my buyer went without me “by mistake”
TonyOakley.com
Working With Buyers
24
#6
Purchase CEMA
A Purchase Consolidation Extension
Modification Agreement(CEMA) is an
assignment of the Seller's existing mortgage to the
Purchaser upon closing a Purchase-Sale
transaction.
TonyOakley.com
Working With Buyers
25
#7Buyer’s Agency Disclosure
TonyOakley.com
Working With Buyers
26
#8 Lead Paint Disclosure
• Are You Planning to Buy or Rent a Home
Built Before 1978?
• Did you know that many homes built
before 1978 have lead-based paint?
• Lead from paint, chips, and dust can
pose serious health hazards.
• Read this entire brochure to learn:
• How lead gets into the body
• About health effects of lead
• Where to go for more information
• What you can do to protect your
family
TonyOakley.com
Working With Buyers
27
#9 BOARD PACKAGES:
 Resale Condo & Coops
 New Development & New Conversion
 Townhouse
 Very Personal Information
 Viewed by: Buyers Agent & Manager, Selling Agent &
Manager, Managing Agent, Board of Directors.
 This information is kept confidential by all parties.
TonyOakley.com
The Joys of Board Packages
28
TonyOakley.com
Working With Buyers
29
Vacations Anyone…
PLEASE LET ME KNOW IF YOU OR YOUR
ATTORNEY ARE PLANNING ANY VACATIONS. FOR
COOP BOARDS THERE WILL BE AN INTERVIEW
THAT YOU MUST BE HERE FOR; FACE TO FACE.
YOUR ATTORNEY WILL BE NEEDED FOR THE
CLOSING UNLESS THEY HAVE SOMEONE
COVERING FOR THEM
TonyOakley.com
Working with Buyers
30
#12 Submitting a Professional Offer
Mini Board Package
TonyOakley.com
#12 Submitting a Professional Offer
31
 All Cash: Bank Statements for proof of funds
 IF you are financing: a pre-approval from your lender.
 IF you are financing: a completed financial statement:

especially for a coop board.
 GIFT: Gift Letter: see sample board package.



Family member
Friend
Note, this money should already be in the buyers bank account.
TonyOakley.com
#12 Submitting a Professional Offer
32
Writing the buyers’ offer:
Date:
To:
Buyers Name(s): As it appears on their driver’s license.
Buyers Address:______________________________
Property Address: Apt. #: ________________________
Amount of Offer: $__________
Deposit: $ ____________(10% at signing)
Financing: YES____ NO___ Amount Financing
If Yes, Buyer is pre-qualified for a mortgage with :__________
Their Debt to Income Ratio = ??? %
Attached Buyers Pre-Approval Letter to this offer.
TonyOakley.com
#12 Submitting a Professional Offer
33
Note: If the unit will be bought under 2 names please complete the following
for both buyers








Buyer’s Employer:
Length of Employment:
Total Annual Income: Current Year:
Anticipated Bonus:
What is your Credit Score:
Last 2 years income including bonuses:
List of Liabilities: Credit Cards, Student Loans, Mortgages, etc…
Buyer’s estimated Net Worth:
Proof of Funds: provide statements
 Buyer’s Attorney Info: Name: Phone: Email: Address: Fax!
 Should you need attorney referrals I can supply you with many contacts.
TonyOakley.com
#12 Submitting a Professional Offer
34
 Has the buyer ever been a defendant or litigant in a





lawsuit?
Has the buyer ever been turned down by a board?
Does the buyer have pets?
Does the buyer play a musical instrument?
Is this a Pied-e-Terre?
Who will occupy the apartment?
TonyOakley.com
#12 Submitting a Professional Offer
35
Brief Bio:
Note: this will be edited by the agent to be compliant with
Fair Housing Laws.
In a few sentences please describe your job and what your
duties include. Additionally please tell me about yourself,
family, hobbies, pets…. Just a brief paragraph so I can tell the
owners about you.
TonyOakley.com
#12 Submitting a Professional Offer
36
Financing?
TILA-RESPA
The TILA-RESPA Integrated Disclosure Rule mandates new disclosure
forms that all lenders provide to buyers applying for a mortgage.
 Applies to all lenders
 Purchase and refinance
 Effective with new loan applications on or after October 3, 2015
TonyOakley.com
#12 Submitting a Professional Offer
37
Once you have an accepted offer:

DON’T max out or over charge on your credit cards.

DON’T move large sums of money. The deposit will be explained on the Financial Statement

DON’T go out and apply for new credit. This can not only lower your credit score, but it can still report to your
credit report before closing.

DON’T make any late payments on any existing accounts.

DON’T pay off collection or charge offs. Paying collections will decrease the credit score immediately due to
the date of last activity becoming recent. If you want to pay off old accounts, do it through closing and make
sure that, 1) you validate that the debt is yours, and 2) that the creditor agrees to give you a letter of deletion.

DON’T close credit card accounts. If you close a credit card account it will appear to the FICO that that your
debt ratio has gone up.

DON’T consolidate your debt into 1 or 2 credit cards. When you consolidate all of your debt onto one card, it
appears that you are maxed out on that card and the system will penalize you.
TonyOakley.com
#12 Submitting a Professional Offer
38
Once you have an accepted offer:
 DO stay current on existing accounts.
 DO continue to use your credit as normal
 DO keep your credit cards below 30% of the available
credit limit.
 DO consult your financial mortgage consultant,
financial adviser or accountant about those things that
may change your credit scores.
TonyOakley.com
#12 Submitting a Professional Offer
39
Board Packages
&
Vacations
TonyOakley.com
#13 Buyer & Seller’s Timeline
40
Buyer & Seller Timeline and Expectations from “Accepted Offer”
1. You get an accepted offer; we are hoping sooner rather than later.
2. Deal Summary: Selling agent puts together the Deal Summary sheet. Buying agent will
need to supply the Selling Agent with their own full contact info, The Buyer’s full name and
address and the full contact info for the Buyer’s Attorney. This deal info is sent to the seller’s
attorney and a contract draft is sent to your attorney within 3-4 days.
3. Selling Agent sends the buyer’s agent A) the offering plan, B) 2 years financials
4. Selling Agent sends the buyer’s agent the condo or coop board requirements
package.
5. Buyer’s attorney will review the contract of sale, review the financials and offering plan
for the condo, set a meeting to visit the managing agents office to review the condo board
minutes. This happens within 10 days of gaining the accepted offer.
AGAIN, PLEASE LET ME KNOW IF YOU ARE PLANNING ANY VACATIONS.
FOR COOP BOARDS THERE WILL BE AN INTERVIEW THAT YOU MUST BE
HERE FOR; FACE TO FACE.
TonyOakley.com
#13 Buyer & Seller’s Timeline
41
 6. During this 10+ day period

Buyers will begin review and work on the board package.

Once buyers have executed the contract of sale I will need the board
requirements completed w/in a few days.

In most contracts there is a time frame that the board package must be
completed, note this date and review the board package with the selling
agent 2-3 days before the set date.

The final loan documents will take the most amount of time and will be the
last item added to the board package. I will compile this info into the proper
order and submit to the Managing Agent and/or the Exclusive Agent if the
listing belongs to another agent.

They review it and if all is OK with the package then they will submit it to the
Board.
TonyOakley.com
#12 Submitting a Professional Offer
42
7. Buyer’s Loan,
Because of the new TRID Rules you will need to contact the underwriter
for closing points.
8. The Managing Agent (or the Board if self-managed); will then
review your package
 Background check on the buyers.
 Once satisfied with your board package information then they will
submit it to the board of directors at the condo or coop for their review.
 Should there be any questions from the Board they will be expressed to
the selling agent and satisfied in short order.
 Usually the boards have 30 days to give you an answer but with a bit of
luck goes faster; say 2-3 weeks.
TonyOakley.com
#12 Submitting a Professional Offer
43
9. Numbers 4—6 of this list will run approximately
6 weeks. In coops you will have a board interview
scheduled after the board has reviewed your board
package and all is has been approved.
10. Once you have approval from The Board and
buyers are clear to close from by their lender then
a closing date can be set by both attorneys, banks
attorney, managing agent and buyers/sellers.
TonyOakley.com
Working with Buyers
44
Important:
I hope to sell this home several times over the
next 10—15 years. AND to assist you in your
next purchase as well. I want to do the
absolute best job that I can so that you will call
me for all of your real estate needs locally,
nationally and internationally. As always a
REFERRAL is golden to my business.
TonyOakley.com
Closing Time
45
Finally!!!! You have a closing date!
 Commission Invoice
 Set up Final Walk-thru
 Any issues?
 At the Closing Table: cupcakes anyone?
 Closing Gifts: any company discounts?
TonyOakley.com
Thank You!
46
Tony K. Oakley, NYRS, CNE
Recruiter
Executive Director of Sales
Licensed Associate Real Estate Broker
Halstead Property LLC. UWS Office
o. 212.381.2521 [email protected]
Please join me on LinkedIn today!
Stuart Diamond’s Talk at Google, “Getting More: How to Negotiate to Achieve Your Goals in the Real
World”
https://www.youtube.com/watch?v=ZOZo6Lx70ok
TonyOakley.com
TonyOakley.com