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Redfin’s Home Buying Class
Redfin South Boston Team
February 27th, 2014
Braintree, MA

Hosts: Nancy Schiff & Liane Parness...
Meet the Redfin South Boston Team
Agenda
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●
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Overview of the process
Are you ready to buy?
Understanding the market
Never miss a home
Cho...
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%...
Understanding the Buying
Process
Are You Ready to Buy?
●
●
●
●

Do you have a family and need room to grow?
Do you expect to own the home for 5 or more yea...
Overview of a Purchase
Research

Search

Offer

Closing

Neighborhoods

Define Preferences

Comparables

Earnest Money

Re...
Understanding the
Market
Local Market Trends: Boston Area
January 2014: Bidding Wars

● 53.9% homes faced competition



Up from 22.8% Month-Over...
Local Market Trends: Boston Area
● % of New Listings Under Contact in 2 weeks
► December 2013: 23.7.8%
► November 2013: 18...
Local Market Trends: Boston Area
January 2014: Price Tracker
● $370,000 – Median Sale Price
► Up .5% Month-Over-Month
► Up...
Braintree - Statistics for Houses
Redfin Price Tracker
Braintree Inventory
City Overview
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
...
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.
7.
8.

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...
Break!
Nancy Schiff

Liane Parness
10-Minute Break

10 mins

5 mins

Let’s Get Started!

End
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...
Ratification to Closing
Steps After Contract Ratification
●
●
●
●
●
●
●
●
●
●
●

Earnest money deposit – usually 1-3%+
Inspection – approximately ...
Home Inspection
We recommend that you have a home inspection
● Cost runs $350 to $1200 depending upon the home’s size
● Yo...
What are Contingencies?
This means the seller has accepted an offer on the
property, but success may still depend on passi...
Title Companies
●
●
●
●
●

Holds the earnest money deposit
Prepares the final documents, including the HUD-1
Conducts the ...
Closing: HUD–1 Settlement
Walkthrough & Closing
A day or two prior to closing you will do a walkthrough to make
sure the property is in the agreed u...
Selling Your Home
with Redfin
Better Service, Lower Fees
● We’re on your side
► Agents paid on your satisfaction
● Double your exposure
► Premium placem...
All Done!
So What Now?
●
●
●
●
●
●
●

Make sure it’s the right time for you
Start browsing online
Check out our Home Buying Guide
Fi...
Future Events!
Thanks for Coming!
Questions? Get in touch:
Nancy Schiff
nancy.schiff@redfin.com
Liane Parness
liane.parness@redfin.com

C...
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Redfin's Free Home Buying Class - Braintree, MA

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  • http://www.redfin.com/research/reports/real-time-bidding-wars#.UtCOgfRDuAgUpdate with your market’s info
  • http://www.redfin.com/research/reports/real-time-fastest-markets/2013/homebuyer-speed-holds-steady-in-november-with-27-percent-of-homes-selling-in-two-weeks-or-less.html#.UtCPIfRDuAgUpdate with your market
  • http://www.redfin.com/research/reports/real-time-price-tracker#.UtCPdfRDuAgUpdate with your market
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  • [REQUIRED]Add Lender’s name if he/she’s presenting
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  • [REQUIRED – Update with local lender]
  • 5 minute break timer.To begin the timer, when in presentation view on the slide, click advance once and you will see the red appear from left to right. When the entire bar is red your break is up!
  • [OPTIONAL]
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  • [Required]Add visual
  • [REQUIRED]Add visual
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  • 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.
  • Notes from Matt:- Update this slide so it is easier to read
  • We’ll stick around…
  • Transcript of "Redfin's Free Home Buying Class - Braintree, MA"

    1. 1. Redfin’s Home Buying Class Redfin South Boston Team February 27th, 2014 Braintree, MA Hosts: Nancy Schiff & Liane Parness @Redfin facebook.com/Redfin
    2. 2. Meet the Redfin South Boston 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 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. ● Customers, not commissions ● Informed decisions ● Right home for the right price  No obligation  Commission credit
    5. 5. Understanding the Buying Process
    6. 6. Are You Ready to Buy? ● ● ● ● Do you have a family and need room to grow? Do you expect to own the home for 5 or more years? Have you saved up a down payment? Can you rent for less?
    7. 7. Overview of a Purchase Research Search Offer Closing Neighborhoods Define Preferences Comparables Earnest Money Real Estate Agents Saved Search Draft Offer Docs Inspection Mortgage Options Home Tours Negotiate Loan application Preapproval Open Houses Mutual Acceptance Title Review Consider your needs Appraisal Financing Approval Closing
    8. 8. Understanding the Market
    9. 9. Local Market Trends: Boston Area January 2014: Bidding Wars ● 53.9% homes faced competition   Up from 22.8% Month-Over-Month Down from 8.4% Year-Over-Year ● Features of Winning Offers:     All Cash: 0% Waived Financing: 7.7% Waived Inspection: 0% Had cover letter: 38.5%
    10. 10. Local Market Trends: Boston Area ● % of New Listings Under Contact in 2 weeks ► December 2013: 23.7.8% ► November 2013: 18.1% ► December 2012: 12.9% ● Median Number of Days on Market Until Pending ► December 2013: 46 ► November 2013: 42 ► December 2012: 59
    11. 11. Local Market Trends: Boston Area January 2014: Price Tracker ● $370,000 – Median Sale Price ► Up .5% Month-Over-Month ► Up 18.8% Year-Over-Year ● 2,361– Homes Sold ► Down 32.7% Month-Over-Month ► Up 1.9% Year-Over-Year ● 7,609– Homes for Sale ► Down 13.5% Month-Over-Month ► Down 31.8% Year-Over-Year
    12. 12. Braintree - Statistics for Houses
    13. 13. Redfin Price Tracker
    14. 14. Braintree Inventory
    15. 15. City Overview
    16. 16. Never Miss A Home
    17. 17. 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
    18. 18. Never Miss a Home
    19. 19. Choosing the Right Agent
    20. 20. 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?
    21. 21. Redfin Agent Reviews
    22. 22. 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
    23. 23. Seeing Homes in Person
    24. 24. Making the Most of Your Tour 1. 2. 3. 4. 5. 6. 7. 8. Bring a camera, notebook & tape measure See how much sunlight the place gets Check the bathrooms for rot & mold Look for wavy or discolored wood siding Make sure water spouts drain away from house Take stock of storage space Turn off any music playing in house Check for hardwood floors 9. 10. 11. 12. 13. 14. 15. Peek into the attic Bring a marble or two When sharing a wall, make sure it’s thick Ignore the appliances and carpets Check the closets Get the disclosure packet Compare the property’s tax records to the listing details
    25. 25. 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 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. 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
    29. 29. 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
    30. 30. 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
    31. 31. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    32. 32. Break! Nancy Schiff Liane Parness
    33. 33. 10-Minute Break 10 mins 5 mins Let’s Get Started! End
    34. 34. Short Sales and Bank Owned
    35. 35. 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
    36. 36. 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
    37. 37. Making an Offer
    38. 38. 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
    39. 39. 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
    40. 40. Ratification to Closing
    41. 41. Steps After Contract Ratification ● ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 1-3%+ Inspection – approximately $500 Other inspections – radon, lead etc. Loan application – 7days or less Title review Appraisal Loan approval Document signing Walk through Closing Receive your keys!
    42. 42. 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
    43. 43. 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
    44. 44. Title Companies ● ● ● ● ● Holds the earnest money deposit Prepares the final documents, including the HUD-1 Conducts the closing Receive and disburse funds for closing Arrange for pay off of any liens (sellers’ mortgage, taxes, etc) ● 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. Walkthrough & Closing A day or two prior to closing you will do a walkthrough to make sure the property is in the agreed upon condition At closing you will sign all necessary mortgage and closing documents and get your keys!
    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 We’ve helped over 50 people sell their homes in the last six months.
    49. 49. All Done!
    50. 50. 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
    51. 51. Future Events!
    52. 52. Thanks for Coming! Questions? Get in touch: Nancy Schiff nancy.schiff@redfin.com Liane Parness liane.parness@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events
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