Redfin’s Home Buying Class
Redfin’s Alexandria Team
September 25, 2013 Alexandria
Host: Patricia Ammann
Redfin’s Alexandria Team
● Overview of the process
● Are you ready to buy?
● Understanding the market
● Never miss a home
● Choosing an agent
● Short sales & foreclosures
● Making an offer
● Acceptance to closing
A Little Bit About Redfin
Redfin is a real estate brokerage on a mission to make buying
and selling a home better for you.
● Accountability: we’re on your side, giving you honest
● Technology: sellers get more traffic; buyers tour homes first
● Value: a full-service brokerage that saves you thousands
Overview of a Buying a Home
Are You Ready to Buy?
● Do you have a family and need room to grow?
● Do you expect to stay put for 5 or more years?
● Have you saved up for a down payment? 3.5% to 20+%
● Have you saved up for closing costs? Typically 0-2%
● Can you rent for less?
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Case-Shiller: DC Area v. 20-City
Case-Shiller – By the Numbers
Case-Shiller: DC Area
Up 5.7% year-over-year
Peak was May 2006
Down 25.5% from peak
Currently at October 2004 prices
Case-Shiller: 20-City Composite
Up 12.1% year-over-year
Peak was July 2006
Down 26.2% from peak
Currently at February 2004 prices
Where Is the Market Headed?
● Supply of homes is at a five-year low and won’t increase
much more this year
● Foreclosures have been driving price declines, and years of
inventory remain. Investment groups might have impact
● Rents have been rising, making buying more attractive
● Market stabilized – price increases in many areas
● Rate increases - biggest potential issue for buyers
What to Ask Any Agent
● Is this your full-time job?
● Where were your last five deals?
● Who else will be working with me?
● When am I committed to working with you?
● Has a client ever filed a compliant?
● How are you paid?
● Can I see some reviews of your work?
Redfin’s Partner Program
Partner agents are employed by other brokerages, and have
teamed up with us to provide Redfin-certified service
We’ll refer you to a Partner Agent when:
►A home is below Redfin’s minimum price
►A home is outside of our service area
►If it’s in your financial advantage to work with a partner
►We’re experiencing unusually high customer demand
We survey all partner agent clients
►All surveys are published on their Redfin page
►97% of customers would recommend Redfin Partners
Making the Most of Your Tour
1. Bring a camera, notebook & tape measure
2. See how much sunlight the place gets
3. Check the bathrooms for rot & mold
4. Look for wavy or discolored wood siding
5. Make sure water spouts drain away from
6. Take stock of storage space
7. Turn off any music playing in house
8. Check for hardwood floors
9. Peek into the attic
10. Bring a marble or two
11. When sharing a wall, make sure it’s thick
12. Ignore the appliances and carpets
13. Check the closets
14. Get the disclosure packet
15. Compare the property’s tax records to the
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How Touring with Redfin Works
● Led by agent or associate
● Up to six homes per tour in
two hour blocks
● Go on as many tours
as you need
● No obligation, no
8. Applying will determine the price range
of homes you are qualified to purchase,
thereby focusing your home search.
9. Pre-approval strengthens your offer in
the eyes of the seller
“Just wanted to thank you so much for all you've done to help us successfully
bid on this townhome. V. received the ratified contract this afternoon at the
We found out we won the bidding war yesterday because of you really.
Another party offered about $5K more and had a West coast lender. The
agent advised the sellers to take our offer instead because of YOU, your
reputation and history as a local lender.
So we're really grateful!
10. Your Pre-approval is valid as long as
your finances and the interest rates
remain generally constant and can be
updated and amended as needed.
NMLS ID # 208239
NMLS ID # 38694 (www.nmlsconsumeracces.org)
What is a Short Sale?
The owner owes more on the mortgage than the home is
● Usually pre-foreclosure, but not always
● Listed for less than what’s owed to the bank
● Requires 1 - 2 banks’ approval (usually 2)
● May have other liens (taxes, utilities, HOA)
We Can Help With a Short Sale!
● See short sales with a Redfin Agent
● If you want to buy, work with a Redfin Agent or a short sale
● Redfin partner agents work for other brokerages but share
Redfin’s commitment to customer service
● Get a 15% commission refund
What is a Bank-Owned Property?
● A foreclosed home owned by a bank or lender
● Standard sale but:
►Long response times
►Legal addenda may require an attorney
►Limited or no disclosures
►Banks demand use of their own contracts
►Bank can back out any time until they’ve signed
►Earnest money deposit usually held by listing agent
Crafting Your Offer
● Evaluate – your agent will provide you with information
about market conditions and recent sales in the area
● Consider the situation – the seller’s preferences, days on
the market, and other interest will influence the process.
● Decide on price & strategy with your agent
● Common contingencies & terms:
Tips for Winning a Bidding War
1. Just win, baby! Simply have the best offer.
► Cash is King
► Escalate your price?
► Tighten your timelines
► Remove some contingencies?
2. Get pre-approved with a local lender
3. What’s important to the seller?
4. Write a letter & appeal to the seller
Steps After Mutual Acceptance
● Earnest money deposit – usually 1-3%+
● Inspection – approximately $500
● Other inspections – sewer scope, septic, etc.
● Loan application – 5 days or less
● Title review
● Loan approval
● Document signing
● Walk through
● Receive your keys!
We recommend that you have a home inspection
● Cost runs $350 to $1200 depending upon the home’s size
● Your agent will accompany you
● Your time to evaluate the property
Let’s talk about:
● What an inspection contingency covers and doesn’t cover
● Types of inspections
What are Contingencies?
This means the seller has accepted an offer on the
property, but success may still depend on passing a
home inspection or getting financing.
● Appraisal – Performed in conjunction with financing
What is Escrow?
Escrow is a third party intermediary that represents neither the
buyer nor the seller.
What do they do?
• Hold the earnest money
• Arrange for payoff of any liens (seller’s
mortgage, utilities, etc.)
• Coordinate the signing appointments for all parties
• Receive and disburse funds for closing
• Arrange to notify county offices to change ownership
● Prepares the final documents, including the HUD-1
● Conducts the closing
● Examines and clears the title to the property
● Records the deed, mortgage and any other recordable
● Issues title insurance to the lender and the buyer
● We’re on your side
►Agents paid on your satisfaction
● Double your exposure
►Premium placement on Redfin
►Zillow, Trulia, Craigslist and Realtor
● 1.5% listing fee
We’ve helped over 50 people sell their homes in the last six
Better Service, Lower Fees
So What Now?
● Make sure it’s the right time for you
● Start browsing online
● Check out our Home Buying Guide
● Find the right agent
● Look for a local lender and get pre-approved
● Start seeing homes in person
● Make an offer & close the deal
Thanks for Coming!
Questions? Get in touch:
Patricia Ammann email@example.com
Nancy Gordon firstname.lastname@example.org
Stevie Tibbs email@example.com
Susan McHale firstname.lastname@example.org
Check out our upcoming classes: