Redfin’s Home Buying Class
Redfin’s North Side Team
October 29th, 2013 Chicago
Host: Carrie Georgitsis
Carrie Georgitsis, Redfin Agent
● Services Lake View and
● Been an agent for 12
years. 9 years with
Re/Max, 3 years with
● Specializes in
Condos, Single Family
Homes, Multi unit
Overview of the process
Are you ready to buy?
Understanding the market
Never miss a home
Choosing an agent
Short sales & foreclosures
Making an offer
Acceptance to closing
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
● Technology: sellers get more traffic; buyers tour homes first
● Value: a full-service brokerage that saves you thousands
Overview of a Buying a Home
Buying a Home
Talk to Lender
Attorney Review – 5 bus. days
Negotiate Offer to Contract
Inspection – 5 bus. days
Loan Commitment – ~30 days
- - - - - - - - - - - - - - - Home-Sale/Close contingency
Other inspection contingencies
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?
Case-Shiller: Chicago Area v. 20-City
Case-Shiller – By the Numbers
Up 9.3% year-over-year
Peak was September 2006
Down 32.6% from peak
As of June 2013, selling at May 2002 prices
Case-Shiller: 20-City Composite
Up 12.1% year-over-year
Peak was July 2006
Down 26.2% from peak
As of June 2013 at April 2004 prices
Where Is the Market Headed?
● Supply of homes is at a five-year low and won’t increase
much more this year
● Foreclosures have been driving price declines, and years of
inventory remain. Investment groups might have impact
● Rents have been rising, making buying more attractive
● Market stabilized – price increases in many areas
● Rate increases - biggest potential issue for buyers
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?
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
Making the Most of Your Tour
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
Take stock of storage space
Turn off any music playing in house
Check for hardwood floors
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
How Touring with Redfin Works
● Led by agent or associate
● Up to six homes per tour in
two hour blocks
● Go on as many tours
as you need
● No obligation, no
Slide 26 of 55
Lakeview & Lincoln Park
● Pizza, Beer!
Let’s Get Started!
Peter E. Georgitsis
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
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
● W-2, two pay-stubs, tax returns, bank statements
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
● Maintaining a pre-approval
has a negligible impact on
your credit score
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
Where Are Rates Headed?
Type of Loan
October 24, 2013
October 17, 2013
Local Recommended Lenders
Peoples Home Equity, Inc.
•Location:2100 Clearwater Dr, #140
Peter Georgitsis's Recent Reviews
*In no way does
lenders – we just
think they’re great
$462K Townhouse Buyer (Closed) May 9, 2012
CHICAGO, IL [Wrigleyville / Lakeview]
From the moment Peter took our application he was
completely engaged in our loan. He took the time to walk
us through multiple options, letting us decide which was
best for our situation. Most importantly, he was able to
follow through on his promises from the application and
complete our mortgage with the terms we agreed upon.
Throughout the process he made himself very available
and responded to all of our questions in a timely fashion.
What is a Short Sale?
The owner owes more on the mortgage than the home is
● 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
● Redfin partner agents work for other brokerages but share
Redfin’s commitment to customer service
● Get a 15% commission refund
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
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
► Title Review
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
Steps After Mutual Acceptance
Earnest money deposit – usually 3% to 5%
Inspection Contingency – approximately $350 to $600
Other inspections – radon, sewer scope, etc.
Attorney Review Contingency
Loan application and appraisal
Receive your keys!
…and Redfin rebate…
● We recommend that you have a home inspection
● About $350 to $600
● Ask Potential Inspectors;
Are you Licensed?
► Are you Insured?
► Do you use Thermal Imaging?
► Will you Walk the Roof?
► Will your Inspection Report include Pictures?
► What do you charge for the Inspection?
Home Inspection Hints
Watch out for:
•Mold, mildew or signs of
leaking near walls or floors
Look for and Check:
•Check all included
•Check water pressure
•Well ventilated attic
•Check for Radon
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
● Issues title insurance to the lender and the buyer
Signing and Closing
You’ll have a final walk-through on closing ●
day or just before
What to bring:
► Government issued photo ID
► Certified check or wired funds
Closing typically takes 1.5 to 3 hours, but
can run longer
Get keys and take possession!
Receive Redfin Rebate in about a week
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
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
● Complete the Survey