Redfin’s Home Buying Class
Redfin’s Fairfax Team
December 5, 2013 Fairfax, VA
Host: Joe Costantini

@Redfin
http://www.fac...
Agenda
●
●
●
●
●
●
●
●
●

Overview of the process
Are you ready to buy?
Never miss a home
Choosing an agent
Touring
Mortga...
A Little Bit About Redfin
Redfin is a real estate brokerage on a mission to make buying
and selling a home better for you....
Save $4,000 on Average
Understanding the Buying
Process
Overview of Buying a Home
Research

Search

Your needs

Define Preferences

The market

Instant Alerts

Neighborhoods

Ope...
Are You Ready to Buy?
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...
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

● Insi...
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...
Redfin Agent Reviews
Redfin’s Partner Program
Partner agents are employed by other brokerages, and have
teamed up with us to provide Redfin-cer...
Seeing Homes in Person
Making the Most of Your Tour
1.
2.
3.
4.
5.
6.
8.
9.

Bring a camera, notebook & tape measure
See how much sunlight the pl...
How Touring with Redfin Works
● Led by agent or associate
agent
● Up to six homes per tour in
two hour blocks
● Go on as m...
Mortgages
Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly payment
● Figu...
Get Pre-Approved Early
A pre-approval letter is a letter from a bank or a lender estimating
how much they'll lend you
● Es...
Pulling Credit: Is It Harmful?
● Your credit report must be reviewed by a lender before you
can obtain a pre-approval
● If...
Start Shopping for Lenders
Compile a list of 3-4 local lenders
Good sources include:
● Redfin's partner lenders
● Referral...
Local Recommended Lenders

In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re gre...
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, but not always...
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 in ...
Tips for Winning a Bidding War
1. Just win, baby! Simply have the best offer.
► Cash is King
► Escalate your price?
► Tigh...
Acceptance to Closing
Steps After Mutual Acceptance
●
●
●
●
●
●
●
●
●
●
●

Earnest money deposit – usually 1-3%+
Inspection – approximately $500...
What are Contingencies?
This means the seller has accepted an offer on the
property, but success may still depend on passi...
Home Inspection
We recommend that you have a home inspection
● Cost runs $350 to $1200 depending upon the home’s size
● Yo...
Title Companies
● Prepares the final documents, including the HUD-1 (visual
example of HUD-1 on next slide).
● Conducts th...
Closing: HUD–1 Settlement
Signing and Closing
A few days before closing you will sign your closing documents
and have a walk through.
On closing day...
So What Now?
●
●
●
●
●
●
●

Make sure it’s the right time for you
Start browsing online
Check out our Home Buying Guide
Fi...
Thanks for Coming!
Questions? Get in touch:
Joe Costantini joe.costantini@redfin.com

Check out our upcoming classes:
http...
All Done!
Upcoming SlideShare
Loading in...5
×

Redfin's Fairfax Home Buying Class 12.5.13

80
-1

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
80
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • [REQUIRED – please add the main presenter’s photos]
  • [REQUIRED – Update with local home in the $400-$500 range, ideally listed by Redfin]Talking points:- Refund is based on your offer price not the sales price- You’ll get it as a closing credit or check after close, depending on your lender
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]Add visual
  • Customers will also receive a refund when working with a Redfin Partner Agent, however the refund is reduced because Redfin pays the partner agent a sales commission, ( i.e. “When you work with one of our partner agents, you can expect the same commitment to customer service as you would with a Redfin Agent, as well as a 15% refund or credit on your agent's commission” Redfin website ).
  • [REQUIRED]
  • Removed # 3 “mold”, #7, and # 14, but I cannot seem to adjust the numbers.
  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED – Update with local lender]
  • [OPTIONAL]
  • [REQUIRED]
  • I removed the Common Contingencies and terms from the Overview slide # 6, because they will be discussed here.
  • [REQUIRED]
  • [Required]Add visual
  • Add visual
  • Required
  • The visual of the HUD would be great and could eliminate some of the verbiage here. REQUIREDA HUD is divided into two parts:Lender charges Includes origination fee, appraisal fee, credit report, insurance and tax escrowsTitle chargesIncludes settlement fee, and owner’s and lender’s title insuranceGovernment chargesIncludes recording fees, recordation taxes and property taxes
  • OPTIONALThis is different by market so we should have different slides for each.
  • We’ll stick around to answer questions…..
  • Redfin's Fairfax Home Buying Class 12.5.13

    1. 1. Redfin’s Home Buying Class Redfin’s Fairfax Team December 5, 2013 Fairfax, VA Host: Joe Costantini @Redfin http://www.facebook.com/Redfin
    2. 2. Agenda ● ● ● ● ● ● ● ● ● Overview of the process Are you ready to buy? Never miss a home Choosing an agent Touring Mortgages Short sales & foreclosures Making an offer Acceptance to closing
    3. 3. 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
    4. 4. Save $4,000 on Average
    5. 5. Understanding the Buying Process
    6. 6. Overview of Buying a Home Research Search Your needs Define Preferences The market Instant Alerts Neighborhoods Open houses Agents Home tours Mortgages Preapproval
    7. 7. Are You Ready to Buy?
    8. 8. 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?
    9. 9. Never Miss A Home
    10. 10. 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
    11. 11. Never Miss a Home
    12. 12. Choosing the Right Agent
    13. 13. 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 complaint? How are you paid? Can I see some reviews of your work?
    14. 14. Redfin Agent Reviews
    15. 15. 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
    16. 16. Seeing Homes in Person
    17. 17. Making the Most of Your Tour 1. 2. 3. 4. 5. 6. 8. 9. Bring a camera, notebook & tape measure See how much sunlight the place gets Check the bathrooms for rot. Look for wavy or discolored wood siding Make sure water spouts drain away from house Take stock of storage space Check for hardwood floors Peek into the attic 10. 11. 12. 13. Bring a marble or two When sharing a wall, make sure it’s thick Ignore the appliances and carpets Check the closets 8. Compare the property’s tax records to the listing details
    18. 18. 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 18 of 55
    19. 19. Mortgages
    20. 20. 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
    21. 21. 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
    22. 22. 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
    23. 23. 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 lender
    24. 24. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    25. 25. Short Sales and Bank Owned
    26. 26. What is a Short Sale? The owner owes more on the mortgage than the home is worth ● 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 partner agent ● Redfin partner agents work for other brokerages but share Redfin’s commitment to customer service ● Get a 15% commission refund
    27. 27. 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
    28. 28. Making an Offer
    29. 29. 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 ► Title Review
    30. 30. 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
    31. 31. Acceptance to Closing
    32. 32. 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 Appraisal Loan approval Document signing Walk through Closing Receive your keys!
    33. 33. 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. Other types: ● Appraisal – Performed in conjunction with financing ● Financing ● Termite ● Other
    34. 34. 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 ● Types of inspections
    35. 35. Title Companies ● Prepares the final documents, including the HUD-1 (visual example of HUD-1 on next slide). ● 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
    36. 36. Closing: HUD–1 Settlement
    37. 37. Signing and Closing A few days before closing you will sign your closing documents and have a walk through. On closing day, you’ll probably get your keys at about 5pm.
    38. 38. 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
    39. 39. Thanks for Coming! Questions? Get in touch: Joe Costantini joe.costantini@redfin.com Check out our upcoming classes: http://www.redfin.com/classes
    40. 40. All Done!
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×