Redfin’s Home Buying Class 
Redfin’s Alexandria Team 
August 20th, 2014 
Host: Brian Walters 
@Redfin 
facebook.com/Redfin
Redfin’s Alexandria Team
Agenda 
● Overview of the process 
● Are you ready to buy? 
● Understanding the market 
● Never miss a home 
● Choosing an...
A Little Bit About Redfin 
Redfin is a real estate brokerage on a mission to make buying 
and selling a home better for yo...
Save $7,000 on Average
Understanding the Buying 
Process
Overview of Buying a Home 
Research 
Your needs 
The market 
Neighborhoods 
Agents 
Mortgages 
Preapproval 
Search 
Define...
Are You Ready to Buy?
Are You Ready to Buy? 
● Do you expect to stay put for 5 or more years? 
● Have you saved up for a down payment? 3.5% to 2...
Understanding the 
Market
Current Market: Low Inventory
Current Market: Rising Prices
Alexandria Area Overview
Where Is the Market Headed? 
● Supply of homes is at a five-year low and won’t increase 
much more this year 
● Foreclosur...
Never Miss A Home
Real Estate Sites: What to Look For 
● Has all the homes for sale 
● Updated every 15 minutes 
● Real-time sales data 
● I...
Never Miss a Home
Choosing the Right Agent
What to Ask Any Agent 
● Is this your full-time job? 
● Where were your last five deals? 
● Who else will be working with ...
Redfin Agent Reviews
Redfin’s Partner Program 
Partner agents are employed by other brokerages, and have 
teamed up with us to provide Redfin-c...
Seeing Homes in Person
Making the Most of Your Tour 
1. Bring a camera, notebook & tape measure 
2. See how much sunlight the place gets 
3. Chec...
How Touring with Redfin Works 
● Led by agent or associate 
agent 
● Up to six homes per tour in 
two hour blocks 
● Go on...
Mortgages
Local Lender, Scott Davis
Review Your Financial Situation 
● Pull credit report, look for errors 
● Establish comfort level for monthly payment 
● F...
Which Loan Type is Right for 
You? 
•Convention Loan 
•5% to 20% Down, depending on credit worthiness 
•Gold Standard of L...
Get Pre-Approved Early 
A pre-approval letter is a letter from a bank or a lender estimating 
how much they'll lend you 
●...
Pulling Credit: Is It Harmful? 
● Your credit report must be reviewed by a lender before you 
can obtain a pre-approval 
●...
Start Shopping for Lenders 
Compile a list of 3-4 local lenders 
Good sources include: 
● Redfin's partner lenders 
● Refe...
Short Sales and Bank Owned
What is a Short Sale? 
The owner owes more on the mortgage than the home is 
worth 
● Usually pre-foreclosure properties 
...
What is a Bank-Owned Property? 
● A foreclosed home owned by a bank or lender 
● Standard sale but: 
►Verbal negotiations ...
Making an Offer
Crafting Your Offer 
● Evaluate – your agent will provide you with information 
about market conditions and recent sales i...
Tips for Winning a Bidding War 
1. Simply have the best offer. 
► Cash is king. 
► Escalate your price? 
► Tighten your ti...
The Home Inspection 
And 
Other Contingencies
What are Contingencies? 
This means the seller has accepted an offer on the property, 
but success may still depend on pas...
The Home Inspection 
We recommend that you have a home inspection 
● Cost runs $350 to $1200 depending upon the home’s siz...
Acceptance to Closing
Steps After Mutual Acceptance 
● Earnest money deposit – usually 1-3%+ 
● Inspection – approximately $500 
● Other inspect...
What do the Title Companies do? 
A title company is a third party intermediary that represents 
neither the Buyer nor the ...
Title Companies Continued… 
● Prepares the final documents, including the HUD-1 
● Conducts the closing 
● Examines and cl...
Closing: HUD–1 Settlement
Signing and Closing 
- A day or two before closing you will have a chance to have 
final walk-through. 
- Settlement gener...
Selling Your Home 
with Redfin
Better Service, Lower Fees 
● We’re on your side 
►Agents paid on your satisfaction 
● Double your exposure 
►Premium plac...
All Done!
Thanks for Coming! 
Questions? Get in touch: 
Brian Walters brian.walters@redfin.com 
Nancy Gordon nancy.gordon@redfin.com...
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Redfin Alexandria Home Buying Class

  1. 1. Redfin’s Home Buying Class Redfin’s Alexandria Team August 20th, 2014 Host: Brian Walters @Redfin facebook.com/Redfin
  2. 2. Redfin’s Alexandria Team
  3. 3. Agenda ● Overview of the process ● Are you ready to buy? ● Understanding the market ● Never miss a home ● Choosing an agent ● Touring ● Mortgages ● Break! ● Short sales & foreclosures ● Making an offer ● Acceptance to closing
  4. 4. 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 advice ● Technology: sellers get more traffic; buyers tour homes first ● Value: a full-service brokerage that saves you thousands  No obligation  Redfin Agents are paid based upon your satisfaction
  5. 5. Save $7,000 on Average
  6. 6. Understanding the Buying Process
  7. 7. Overview of Buying a Home Research Your needs The market Neighborhoods Agents Mortgages Preapproval Search Define Preferences Instant Alerts Open houses Home tours Offer Comparables Draft offer Negotiate Mutual acceptance Closing Earnest money Inspection Loan application Title review Appraisal Financing approval Closing
  8. 8. Are You Ready to Buy?
  9. 9. Are You Ready to Buy? ● 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?
  10. 10. Understanding the Market
  11. 11. Current Market: Low Inventory
  12. 12. Current Market: Rising Prices
  13. 13. Alexandria Area Overview
  14. 14. Where Is the Market Headed? ● Supply of homes is at a five-year low and won’t increase much more this year ● Foreclosures and short sales have only a small affect on prices in Northern Virginia. Investment groups will have a limited impact on price levels and only in certain areas. ● Rents have been rising, making buying more attractive ● Market stabilized – stabilizing price increases in many areas ● Rate increases - biggest potential issue for buyers in the future.
  15. 15. Never Miss A Home
  16. 16. Real Estate Sites: What to Look For ● Has all the homes for sale ● Updated every 15 minutes ● Real-time sales data ● Insights from agents ● Lots of data ● Mobile apps
  17. 17. Never Miss a Home
  18. 18. Choosing the Right Agent
  19. 19. 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?
  20. 20. Redfin Agent Reviews
  21. 21. 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
  22. 22. Seeing Homes in Person
  23. 23. 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 house 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 listing details
  24. 24. How Touring with Redfin Works ● Led by agent or associate agent ● Up to six homes per tour in two hour blocks ● Go on as many tours as you need ● No obligation, no pressure Slide 24 of 55
  25. 25. Mortgages
  26. 26. Local Lender, Scott Davis
  27. 27. Review Your Financial Situation ● Pull credit report, look for errors ● Establish comfort level for monthly payment ● Figure out how much monthly income goes towards debt: 28 – 33% healthy ● Pay down credit balances to 1/3rd ● Don’t open any new lines of credit ● Don’t buy any big ticket items ● Source of money ● Current employment status
  28. 28. Which Loan Type is Right for You? •Convention Loan •5% to 20% Down, depending on credit worthiness •Gold Standard of Lending Products •Mortgage Insurance may apply. •FHA Loan •3.5% Down •More flexible lending standards •Mortgage Insurance will apply •VA Loan •0% Down, 100% Financing Option •Funding Fees May Apply •Typically Low Interest Rates
  29. 29. Get Pre-Approved Early A pre-approval letter is a letter from a bank or a lender estimating how much they'll lend you ● Establishes what you can afford & makes offer process go faster ● Redfin asks that you get pre-approved before your third tour ● Good for 90 days, depending on lender Info needed: ● W-2, two pay-stubs, tax returns, bank statements
  30. 30. Pulling Credit: Is It Harmful? ● Your credit report must be reviewed by a lender before you can obtain a pre-approval ● If you know your score, a lender should be able to give you ballpark pricing for their loan products ● Better to know sooner rather than later about credit problems ● Maintaining a pre-approval has a negligible impact on your credit score
  31. 31. Start Shopping for Lenders Compile a list of 3-4 local lenders Good sources include: ● Redfin's partner lenders ● Referrals from friends, family & co-workers ● Online review sites, such as Yelp ● Local chains and offices *Know your LOCAL Lender
  32. 32. Short Sales and Bank Owned
  33. 33. What is a Short Sale? The owner owes more on the mortgage than the home is worth ● Usually pre-foreclosure properties ● 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 partner agent ● Redfin partner agents work for other brokerages but share Redfin’s commitment to customer service ● Get a 15% commission refund
  34. 34. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender ● Standard sale but: ►Verbal negotiations ►Long response times ►Repairs unlikely ►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
  35. 35. Making an Offer
  36. 36. 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: ►Earnest Money ►Inspection ►Financing ►Appraisal
  37. 37. Tips for Winning a Bidding War 1. 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
  38. 38. The Home Inspection And Other Contingencies
  39. 39. 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. Types: ● Home Inspection ● Appraisal – Performed in conjunction with financing ● Financing ● Sale of your previous home
  40. 40. The Home Inspection 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 ● What Inspectors can’t do (nothing invasive) ● Radon Testing ● Types of inspections
  41. 41. Acceptance to Closing
  42. 42. 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 ● Appraisal ● Loan approval ● Document signing ● Walk through ● Closing ● Receive your keys!
  43. 43. What do the Title Companies do? A title company 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
  44. 44. Title Companies Continued… ● 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 instruments ● Issues title insurance to the lender and the buyer
  45. 45. Closing: HUD–1 Settlement
  46. 46. Signing and Closing - A day or two before closing you will have a chance to have final walk-through. - Settlement generally takes a little over an hour to complete - On closing day, you’ll receive the keys to your new home
  47. 47. Selling Your Home with Redfin
  48. 48. Better Service, Lower Fees ● 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 ►Professional photos ►Beautiful flyers ►Open Houses We’ve helped over 50 people in Alexandria sell their homes in the last six months.
  49. 49. All Done!
  50. 50. Thanks for Coming! Questions? Get in touch: Brian Walters brian.walters@redfin.com Nancy Gordon nancy.gordon@redfin.com Christine Lyons christine.lyons@redfin.com Colt Irick colt.irick@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

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