Redfin's Free Home Buying Class- Acton

249 views

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
249
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • [REQUIRED – please add the main presenter’s photos]
  • [REQUIRED – to be updated by the presenter to suit their strong points]
  • [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 – Updated every time]
  • [REQUIRED – Updated every time]
  • [REQUIRED – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [REQUIRED – Should be updated once a month]The info on this slide is great. Lets add a visual so its more interesting after all the data slides.
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]Add visual
  • [OPTIONAL – cut or skip this slide if not relevant for your market or class]
  • [REQUIRED]
  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [REQUIRED]
  • http://www.freddiemac.com/pmms/
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED – Update with local lender]
  • 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
  • [OPTIONAL]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [Required]Add visual
  • [REQUIRED]Add visual
  • OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
  • We’ll stick around…
  • Redfin's Free Home Buying Class- Acton

    1. 1. Redfin’s Home Buying Class Redfin West Boston Team December 18, 2013 Acton, MA Hosts: Risa Bell & Bill Hayes Follow: @Redfin Like: http://www.facebook.com/Redfin
    2. 2. Meet the Redfin West Boston Team Risa Bill Sandy Michael Maggie
    3. 3. Risa Bell & Bill Hayes, West Boston Agents ● Agents for Metro West ● Closed over 74 transactions in the last year ● Specialize in: ► First-time buyers ► Multiple bid situations ► Local area knowledge
    4. 4. Agenda ● ● ● ● ● ● ● ● ● ● ● Overview of the process Are you ready to buy? Understanding the market Never miss a home Choosing an agent Touring Attorney Mortgages Short sales & foreclosures Making an offer Acceptance to closing
    5. 5. A Little Bit About Redfin Redfin is a real estate brokerage on a mission to make buying and selling a home a better experience 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
    6. 6. Save With Your Redfin Rebate
    7. 7. Understanding the Buying Process
    8. 8. Overview of a Buying a Home Research Search Offer Closing Your needs Define Preferences Comparables Earnest money The market Instant Alerts Draft offer Inspection Neighborhoods Open houses Negotiate Attorney Agents Home tours Mutual acceptance Loan application Mortgages Appraisal Preapproval Financing approval Closing
    9. 9. Are You Ready to Buy?
    10. 10. 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? Can you rent for less?
    11. 11. Understanding the Market
    12. 12. Story of 2013: Low Inventory
    13. 13. Story of 2013: Rising Prices
    14. 14. Acton Area Overview
    15. 15. Nearby Neighborhoods
    16. 16. Where Is the Market Headed? ● ● ● ● ● Supply of homes is at a five-year low Rents have been rising, making buying more attractive Market stabilized – price increases in many areas Rate increases - biggest potential issue for buyers New Construction is back and booming again but still not enough for most areas ● Excess buyers are creating increased competition but there are still many good homes to buy
    17. 17. Never Miss A Home
    18. 18. 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
    19. 19. Exclusive Features
    20. 20. Choosing the Right Agent
    21. 21. 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? How are you paid? Can I see some reviews of your work?
    22. 22. Redfin Agent Reviews
    23. 23. 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 survey all partner agent clients ► All surveys are published on their Redfin page ► 97% of customers would recommend Redfin Partners
    24. 24. Seeing Homes in Person
    25. 25. How Touring with Redfin Works ● Led by agent or associate agent ● Tour in a 2-hour block ● Go on as many tours as you need ● No obligation, no pressure Slide 25 of 55
    26. 26. Mortgages
    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. Where Are Rates Headed? Type of Loan December 12, 2013 December 5, 2013 30-Year Fixed 4.42% 4.46% 15-Year Fixed 3.43% 3.47% 5/1 ARM 2.94% 2.99% 1-Year ARM 2.51% 2.59%
    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 ● Online review sites, such as Yelp ● Local chains and offices *Know your lender
    32. 32. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    33. 33. Local Real Estate Attorney
    34. 34. Local Real Estate Attorney ● ● ● ● ● ● Role of your attorney Dedicated real estate attorney Flat fee Purchase and Sale Title & Title Insurance HUD and closing
    35. 35. Closing: HUD–1 Settlement
    36. 36. Short Sales and Bank Owned What You Need To Know
    37. 37. 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
    38. 38. 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
    39. 39. Making an Offer
    40. 40. 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
    41. 41. Tips for Winning a Bidding War 1. Just win, baby! Simply have the best offer. ► Cash is King, but price counts, too! ► 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
    42. 42. Acceptance to Closing
    43. 43. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● Earnest money deposit Inspection - General Other inspections – Radon, Water, etc. Loan application Appraisal Loan approval Walk through Closing Receive your keys!
    44. 44. Home Inspection We recommend that you have a home inspection ● Cost depends upon the home’s size and inspector chosen ● Your agent will accompany you ● Your time to learn about the property Let’s talk about: ● What an inspection contingency covers and doesn’t cover ● Types of inspections
    45. 45. 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 ● Clean Title
    46. 46. What is Escrow? A third party, often the selling brokerage, holds buyer funds in escrow for disbursement at closing. What do they do? • Hold the earnest money • Hold the Purchase & Sales deposit • Disburse funds at closing
    47. 47. 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
    48. 48. Thanks for Coming! Questions? Get in touch: Risa Bell risa.bell@redfin.com Bill Hayes bill.hayes@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

    ×