Redfin Metro Boston Home Buying Class

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Redfin Metro Boston Home Buying Class

  1. 1. Redfin’s Home Buying Class College Club of Boston June 18th 2014 Follow: @Redfin Like: http://www.facebook.com/Redfin
  2. 2. Katie Gustafson Agent Hannah Driscoll Team Lead James Gulden Agent The Redfin Metro Boston Team They’ve closed 70+ deals in the past 12 months! Simon Anderson Transaction Coordinator Bill Hartford Agent
  3. 3. Agenda ● About Redfin ● Searching for homes ● Touring ● The Buying process ● Mortgages ● Market conditions ● Selling with Redfin
  4. 4. A Little Bit About Who We Are Redfin is a real estate brokerage that has helped over 20,000 people buy or sell a home; 97% would refer us to a friend. ● Redfin agents not paid on commission but instead paid on Customer satisfaction ● Commission refund issued to buyer after closing ● Transparency ● Team support and latest technology ● No fee, No obligation
  5. 5. Redfin Search Advantage ● Has all the homes for sale ● Updated every 15 minutes ● Real-time sales data ● Insights from agents ● In depth analysis ● Mobile apps (search on the go) ● Search by schools, neighborhoods, zip codes ● Saved searches with alerts ● Live search
  6. 6. How to Search for Homes
  7. 7. iPhone iPad Android Meet the Redfin App
  8. 8. The Redfin Refund You buy and pay for your dream home. The 5% sales commission is split. The Listing Agent gets 2.5% commission. Your Buyers’ Agent gets 2.5% commission. You save with Redfin. Redfin keeps a portion as our fee.
  9. 9. Save $4,000 on Average
  10. 10. Slide 10 of 55 How Touring with Redfin Works ● Work with agents with local expertise ● Request up to 6 homes at a time and have back ups ready ● Go on as many tours as you need ● No obligation, no pressure
  11. 11. Understanding the Buying Process
  12. 12. Tour homes Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations Success! Mutual Acceptance Earnest money [$1000] Inspection contingency [5-10 days] 5% of Purchase Price P&S Review [10-14 days] Financing contingency [20-25] Final walk thru - details Get keys and take possession! Overview of a Purchase Success! Mutual Acceptance Closing! Receive Redfin refund Complete Redfin survey
  13. 13. Be Prepared  Pre-approval  Research attorneys  Have earnest money ready  Discuss comps with your agent  Know your limits  Discuss offer strategies with your agent  Be ready to act quickly in this competitive market
  14. 14. Our Home Buying Guide
  15. 15. What Next? Home inspection! ● Select Inspector ►Look for inspectors who use pdf. reports with photos ►Ask your agent for references ►Mention if you want tests perform:  Radon- canister or computer?  Lead Paint ►Have a check or CC ready ►Shop around – priced by sq ft. and # of bedrooms ►Stay involved – Learn about your new home ►Ice Dams? Flooding?
  16. 16. Home Inspection Hints •Double-paned windows •Well ventilated attic•Knob and tube wiring •Mold, mildew or signs of leaking near walls or floors •Check water pressure •Galvanized steel pipes •Chimney sweep fireplace inspection •Stairs have handrails•Check all included appliances •Cracks in foundation Watch out for: Look for and Check:
  17. 17. Tour homes Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations Success! Mutual Acceptance Earnest money [$1000] Inspection contingency [5-10 days] 5% of Purchase Price P&S Review [10-14 days] Financing contingency [20-25] Final walk thru - details Get keys and take possession! Overview of a Purchase Success! Mutual Acceptance Closing! Receive Redfin refund Complete Redfin survey
  18. 18. Attorney Info ● Hire an Attorney – The sellers will have one so you should too! ● Are they a Real Estate attorney? ►What % of work is real estate? ►Who in the office will you be working with? ►What kind of availability, accessibility, responsiveness? ►How long have you been doing this? ● Ask about pricing up front – flat fee vs. hourly
  19. 19. Attorney Info ● Buyer services provided ►Purchase and Sales review ►Buyer Addendum ►Condominium Document review ● Lender services provided ►Dual representation ►Title Search, Plot Plan, Lien Certificate ►Role at Closing ● Important protections ►Title insurance ►Homestead
  20. 20. Local Recommended Attorneys In no way does Redfin benefit financially from recommending attorneys – we just think they’re great lawyers!
  21. 21. Tour homes Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations Success! Mutual Acceptance Earnest money [$1000] Inspection contingency [5-10 days] 5% of Purchase Price P&S Review [10-14 days] Financing contingency [20-25] Final walk thru - details Get keys and take possession! Overview of a Purchase Success! Mutual Acceptance Closing! Receive Redfin refund Complete Redfin survey
  22. 22. Mortgages
  23. 23. Local Recommended Lender
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. Types of Loans ● Conventional: ► As low as 5% down ► Fixed or adjustable rates, conforming or non-conforming ● Federal Housing Administration Loan (FHA): ► Always have mortgage insurance ► Buyers need only a 3.5% down payment ● VA Guaranteed Loan: ► Veterans, active duty personnel, reservists/national guard, surviving spouses ► No down payment
  28. 28. Current Average Rates Type of Loan June 12, 2014 June 5, 2014 30-Year Fixed 4.20% 4.14% 15-Year Fixed 3.31% 3.23% 5/1 ARM 3.05% 2.93% 1-Year ARM 2.40% 2.40%
  29. 29. Understanding the Market
  30. 30. Back Bay Condos - Statistics
  31. 31. Back Bay Condos - Inventory
  32. 32. Selling Your Home with Redfin
  33. 33. ● 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 We’ve helped over 50 people sell their homes in the last six months. Better Service, Lower Fees
  34. 34. All Done!

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