LUXURY LIVING BY MH | GUIDE TO OWNERSHIP by LUXURYIVINGBYMH

Luxury Living by Michael Hern

LUXURY LIVING BY MH: GUIDE TO OWNERSHIP

LUXURY LIVING BY MICHAEL HERN

TABLE OF CONTENTS Meet Team Hern ..............................3 Why Team MH...................................4-7 The Buying Process..........................8 Preparing to Buy a Home............9 Benefits of Home Ownership..................10-11 Hire a Realtor.....................................12 Your Credit.........................................13-14 Loan Process......................................15 Ask Me For..........................................16

MEET THE LUXURY LVING TEAM

Who is Luxury Living by MH Luxury Living by Michael Hern is a collective of genuine people who have made the common goal of helping others a lifestyle. The team comes from all walks of life and has found a home in a company that shares similar values. Before the sales experience and the accolades, each team member must fit into the culture of Luxury Living, meaning they have the right mindset and clear vision of why they want to help others. Once they show that they are honest and true with their intentions, they undergo rigorous training and studying before they get in front of the people they are looking to help in order to provide the best service. With the humble beginnings of this team, they have built themselves to the top ranks of the real estate industry. Luxury Living is currently nationally ranked in the top 100 in the United States, top 15 in New Jersey, and ranked #1 in the local market. This took years of dedication, and understanding of how to grow further. The team's growth has done more than just push them further in rankings, but has created more opportunities for their clients. With their current standing at the top of their market and their genuine culture, they have better relationships with developers and outside real estate companies. This allows their clients to search in any market and know they have someone responsible and well respected in the real estate community representing them. Luxury Living by Michael Hern also takes a step further when it comes to the actual buying process, they gather diverse data and unique information to give their clients the most information possible to give them an opportunity to make an educated offer. Once the offer is accepted Luxury Living’s expertise comes into play further, where they provide their clients with the breakdown of the next steps. This is the buying process systemized to make it as clear as possible of “what comes next”. They carry the transaction all the way to the finish line and know the right vendors to reach out to, to make the process easier when the occasion arises. Last but certainly not least, why does Luxury Living want to help? The team has the most experience helping their clients make the big decision of buying a home and do everything in their power to earn the title of “real estate professional”. This is a huge investment for anyone, and they take pride in making the process as smooth as possible. They are confident in their ability to get their clients to closing with full transparency and without stress.

04 WHY TEAM MH?

PROVEN RESULTS 2021 - Transactions: 374 | Dollar Volume: $159,000,000 2020 - Transactions: 305 | Dollar Volume: $125,000,000 2019 - Transactions: 222 | Dollar Volume: 95,000,000 2018 - Transactions: 195 | Dollar Volume: $84,000,000 2017 - Transactions: 140 | Dollar Volume: $65,000,000 2016 - Transactions: 85 | Dollar Volume: $40,000,000 2015 - Transactions: 67 | Dollar Volume: $34,000,000 2014 - Transactions: 61 | Dollar Volume: $29,000,000 Circle of Excellence – Platinum: 2013-2020 Real Trends – 4X Top Agents in America Recipient Realtor Magazine – Top 30 Under 30 Nationwide (4 Time Nominee) Ranked Top 1% in the US

ANNUAL VOLUME BY LUXURY LIVING

$125,000,000

TRANSACTION VOLUME

$100,000,000

$75,000,000

$50,000,000

$25,000,000

2014

2015

2016

2017

2018

SALES YEAR

2019

2020

WHY TEAM MH?

WHAT DO WE OFFER? We are the top producing real estate team on the Gold Coast. Our team is currently ranked among the top 15 real estate teams in New Jersey and have done more transactions than anyone else in this market resulting in our consistent ranking of top 1% in the country. Our team has the highest market share of listings in and around the Gold Coast which provides tremendous value to our buyers. We are able to provide access to homes that have not been listed on the public market yet and give our buyers a competitive edge when finding the right home. We have systemized the buying process to provide the support you need to make your home purchase a seamless transaction. We also have access to partner vendors that we trust to provide you with high level service.

WHY SHOULD YOU CHOOSE US? We have a deep understanding of the local market data and trends. We will use that data to your advantage in order to negotiate the best possible deal for you. We have fostered great relationships with the land developers in this area as well as other local agents. This will benefit you because we understand how developers negotiate and they've even sought our advice on market pricing because of our knowledge of the area. Also, other agents want to work with us because of our track record as it is easy to work with agents who will get the deal done I would invite you to check out my Zillow profile where you can see reviews my past clients have left about their home buying experience. This reflects our track record as great local agents.

W H Y D O W E W AN T T O H E L P ?

WHY TEAM MH?

Myself and the team have the most experience helping our clients make such a big decision of buying a home we can genuinely call ourselves professionals. This is a huge investment for anyone, and we take pride in making the process as smooth as possible. We are confident in our ability to get you to closing with full transparency and without stress.

THE HOME BUYING PROCESS

HIRE A R E AL ESTATE PROFESSIONAL Hire a Real Estate Professional. The first, and arguably the most important step in purchasing a home is hiring the right real estate professional to assist you throughout the transaction. As your Prominent Properties Sotheby’s International Realty real estate agent, I will guide you through every step of the transaction whether you’re looking to buy, sell, or rent a home!

OBTA I N A PRE-APPROVAL LETTER Obtain a Pre-Approval Letter. Early on, you’ll want to get pre-qualified through a mortgage lender to get a better sense of how much you can afford on a monthly basis as well as a comfortable down payment. Within this budget, we’ll be able to search for homes that meet your specific requirements. This will save you time and help make the home buying process much smoother.

OUTL I N E Y OUR NEEDS VS. WANTS

MAKE A N O FFER Once you’ve pinpointed your dream house, it’s time to get serious about the financial and contractual side of the purchase. Let me guide you through this sensitive home buying process. Because you and the seller have different goals, rely on my experience and expertise to bring order and calm to the process – and help both parties reach a favorable outcome.

ATTO R N E Y REVIEW P ERIOD Attorney Review Period. Purchasing a home involves a lot of paperwork, most of which are contractual documents that will legally bind you to the numerous terms and conditions. For this reason it is important to have a good attorney representing you – someone to protect your rights and interests.

HOME I N SPECTION & APPRAISAL As Attorney Review concludes, we’ll arrange for a home inspection with a licensed home inspector. The home inspector will conduct a thorough inspection of the home and bring attention to any damages, defects, etc. that should be addressed prior to closing. The Seller will have an opportunity to fix each item or give us a credit for the repair. As inspection is being finalized, your lender will order an appraisal of the property to assure you are paying market value for the home.

CLOS I N G Before your closing date, we’ll perform a final walk through of the property to

The next step in home buying is to create a realistic idea of the property you’d like to buy. Outline what you need versus what you want. This will allow us to focus on specific communities and homes in the area to fit your criteria.

make sure the home is completely vacant, the inspection items are repaired,

PREV I E W ING PROPE RTIES

and receive the keys for your new home! I will be there to assist you every

and there aren’t any damages from the Seller moving out. Your attorney will inform you of what you must bring to closing, where you’ll sign all documents

Now you’re ready to visit properties in the area. I will arrange showings to

step of the way!

visit the homes that meet your expectations and requirements. As we view

PREP A R E F OR LIFE IN YOUR NEW HOME

each home, I will give you my opinion on location, pricing and answer any

Before rolling out the welcome mat, consider some moving basics: transfer all

questions you may have about the home. Our first appointment will be more or less to gauge what interests you most so I can keep you updated on new listings as we get closer to finding the perfect home.

utilities into your name including electricity/gas, water/sewer, and cable/internet, arranging for an alarm company, and notifying your local post office of your new address. The best time for renovations is often before you move in.

PREPARING TO BUY A HOME Houses are as different as people, and finding the right fit can be challenging. These Pilar items will help you start the home search. ID E N T IF Y Y OUR W AN T S VS N E E D S Wants these are the things you absolutely need in a house to consider buying it Needs these are the things you absolutely need in a house to consider buying it.

SELECT A COMMUNITY: Your Family: Their needs and environment that will make them happy Your Commute: Bus, Ferry, Light Rail, Lincoln Tunnel, GW Bridge, Path, etc. Your Priorities: What in your daily life can become more simplified by your new home location? Your Hobbies: Are local amenities important to you? Restaurants, Coffee Shops, Clothing Stores, Etc.

BENEFITS OF HOMEOWNERSHIP

APPR E C I ATION Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®. The number of U.S. households is expected to rise 10 to15 percent over the next decade, creating continued high demand for housing.

EQUI T Y Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

PRED I C T ABILITY Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. (However, keep in mind that property taxes and insurance costs may increase.) As an owner you never need to worry about the Landlord selling the home or moving back in to the property. There is a greater sense of security for owners.

FREE D O M The home is yours. You can renovate and decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.

STAB I L I T Y Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.

MORTGAGE DEDUCTIONS Mortgage deduction: The tax code allows homeowners to deduct up to $750,000 of their mortgage interest from their tax obligations. For many this is a huge deduction, since interest payments can be the largest component of your mortgage payment in the early years of owning a home.

SOME CLOSING COST DEDUCTIONS

DEDUCTABLE PROPERTY TAXES

The first year you buy your home, you are able to claim the points (also called origination

Real estate property taxes paid up to $10,000 on your primary home are deductible for income

fees) on your loan, no matter whether they are paid by you or

tax purposes.

the seller. And because origination fees of 1 percent or more are common, the savings are considerable.

TAX BENEFITS OF HOME OWNERSHIP

HIRE A REALTOR

WHAT T O LOOK FOR IN A REALTOR Ultimately you are looking to work with someone who can demonstrate the above as well as someone you can trust. You want to have the feeling that your agent is working for you and has your best interest in mind. HERE are several reasons below you should work with a REALTOR®!

OBTA I N A PRE-APPROVAL LETTER The The The The

general area and surroundings past and current trends of the market overall market communities/neighborhoods you are looking into

AN E X P E R T GUIDE Buying a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.

OBJE C T I V E INFORMATION AND OPINION S REALTORS® can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. REALTORs® can use that data to help you determine if the property has what you need. By understanding both your needs and search area, they can also point out neighborhoods you don’t know much about but that might suit your needs better than you’d thought.

EXPA N D E D SEARCH POWER Sometimes properties are available but not actively advertised. A REALTOR® can help you find opportunities not listed on home search sites and can help you avoid out-ofdate listings that might be showing up as available online but are no longer on the market.

NEGO T I A TION KNOW LEDGE There are many factors up for discussion in a deal. A REALTOR® will look at every angle from your perspective, including crafting a purchase agreement that allows enough time for you to complete inspections and investigations of the property before you are bound to complete the purchase.

UP-T O - D ATE EXPERI ENCE Most people buy only a few homes in their lifetime, usually with quite a few years in between each purchase. Even if you’ve done it before, laws and regulations change. REALTORS® handle hundreds of transactions over the course of their career.

REVIEWING YOUR CREDIT BEFORE YOUR PURCHASE

13 Establish 4 Trade Lines of Credit An example of “trade line” of credit is an American Express Card, Visa Card or Car Lease. Once acquired, use these accounts in the U.S and maintain for at least 2 years. Be sure to establish a secured line of credit and add your spouse to the account as well. If you cannot obtain credit begin with a secured credit card.

The past 24 months of credit history on accounts contribute the most. Credit Scores range From the Mid 300’s to the Mid 800’s. There are different scoring models. The better your credit score the better your chances for approval. Credit score also affects the interest rate of your loan.

What To Know About Your Credit Scores Your payment history How much you owe and where The length of your credit history The types of credit you use

Types of Credits Used 10% New Credit 10%

Payment History 35%

Length of Credit History 15%

Amounts Owed 30%

Opening new accounts just to increase available credit means new inquiries on your credit report, which may lower your score. Avoid closing accounts you already have, which can negatively affect your debt-to-credit ratio and credit history — both of which rating agencies use to calculate your score. This is based on an established credit history

CHECK FOR ERRORS IN YOUR CREDIT REPORT.

PAY DOWN CREDIT CARD BILLS

Thanks to an act of Congress, you can download one free credit report each year at

If possible, pay off the entire balance every month. Pay down your credit cards until you are

annualcreditreport.com. If you find any errors, correct them

using only 30% of your available credit. That will

immediately.

improve your debt-to-credit ratio, which can boost your credit score.

IMPROVING YOUR CREDIT

KEEP THE ACCOUNTS YOU ALREADY HAVE

LOAN PROCESS MORTGAGE DOCS

IDEN T I F I C ATION Color Copies: Driver’s license Social Security CardPassport Permanent Resident Card Front/Back Visa Front & Back

ITEM S N E E DED FOR INCOME DOCU M E N TATION Most recent paystubs covering a 30 day period Most Recent 2 Years of W2 forms

Most recent 2 years of tax returns – Federal Schedules If you are Self-Employed: 1. For All Business’s with Ownership Equal or Greater than 25% 2. 2 most recent years– Complete 1120, 1120S or 1065, K1s, Year to Date P & L, Current Balance Sheet

ASSE T D OCUMENTAT ION FOR PURCHASE - They must be the statements 2 months prior to signing your purchase contract. Liquid Accounts (Checking Savings Money Market) Non-Liquid Accounts (Stocks, Bonds etc.) Retirement Account, 401 K, IRA All pages must be provided even if blank or just advertising. The statements must reflect account holder’s name and complete account number.

REAL E S T A TE OWNED – FOR ALL REAL ES T A T E O W N E D O V E R S E A S

Most recent mortgage statement Most recent tax bill (if the property is owned free and clear or if your taxes are not paid with the mortgage) Homeowners Insurance Declaration Page – Should have coverage and policy amount

WHAT TO ASK YOUR REALTOR

AS Y O U R R EALTOR As your trusted real estate agent, there are documents, information, and general questions that I encourage you to ask me now, throughout the transaction, and post-closing. I will do my absolute best to accurately answer all of your questions in a timely manner. If you need assistance outside of my expertise, I will put you in touch with the correct professionals to further answer your questions. QUES T I O NS TO STAR T OFF WITH: Current Market Conditions Future Market Conditions Attorney – Who do you recommend and why? Inspection – Who do you recommend and why? Mortgage Lender – Who do you recommend and why? What is a portfolio lender? Citizenship – How does this vary? What is transitional litigation? Do I need to obtain flood insurance? Closing Costs – What do they include and how much should I budget for?

Michael Hern CEO / Team Leader

Brandon Fontanez

LUXURY LIVING BY MICHAEL HERN

Geoff Grivalsky

Stephanie Hern

Ken Martinez

VP / Buyer Specialist

Listing Coordinator

Buyer / Renter Specialist

Doreen DeCosmis

Raquel Guzman

Damien Rance

Buyer / Renter Specialist

Peter Perez

Lead Buyer Specialist

Buyer / Renter Specialist

Meet The Team

Buyer / Renter Specialist

Maj Moeller Buyer Specialist / Stager

Lisa Cataldi Buyer / Renter Specialist

Alexandra Vlasenkova Juan Camilo Ramirez Buyer / Renter Specialist

Buyer / Renter Specialist

Courtney Banoff DOO

Joeseph ONeal Buyer / Renter Specialist

Jamie Kieffer

Luz Mateus

Buyer / Renter Specialist

Linda Lubrano

Michael Carlo

Buyer / Renter Specialist