Redfin's Free Home Buying Class- Framingham


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  • [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
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  • [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.
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  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [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!
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  • You should not be reading all of these. Pick you top three and chat about those.
  • 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
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  • Redfin's Free Home Buying Class- Framingham

    1. 1. Redfin’s Home Buying Class Redfin’s Boston Southwest Team December 11th, 2013 Framingham Host: Dennis McClosky Follow: @Redfin Like:
    2. 2. Dennis McClosky, Boston SW Agent ● Live in the Metro-West area ● Service all towns on the Massachusetts Pike/Route 495 Belt ● Been an agent for 4 years ● Specialize in buy side transactions
    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 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
    5. 5. Save $4,000 on Average
    6. 6. Understanding the Buying Process
    7. 7. 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 Loan application Agents Home tours Mutual acceptance Title review Mortgages Appraisal Preapproval Financing approval Closing
    8. 8. Are You Ready to Buy?
    9. 9. 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?
    10. 10. Understanding the Market
    11. 11. Story of 2013: Low Inventory
    12. 12. Story of 2013: Rising Prices
    13. 13. Framingham Area Overview Nearby Neighborhoods
    14. 14. Current Average Rates Type of Loan December 5, 2013 November 27, 2013 30-Year Fixed 4.46% 4.29% 15-Year Fixed 3.47% 3.30% 5/1 ARM 2.99% 2.94% 1-Year ARM 2.59% 2.60%
    15. 15. 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 Labor Day Increase – As soon as the summer ends the listings start coming but still not enough ● 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
    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. 10-Minute Break 10 mins 5 mins Let’s Get Started! End
    33. 33. Making an Offer
    34. 34. 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
    35. 35. 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
    36. 36. Acceptance to Closing
    37. 37. Tour homes Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations Success! Mutual Acceptance Overview of a Purchase Earnest money [$1000] Success! Mutual Acceptance Inspection contingency [5-10 days] P&S Review [10-14 days] 5% of Purchase Price Financing contingency [20-25] Final walk thru - details Closing! Get keys and take possession! Receive Redfin refund Complete Redfin survey
    38. 38. What Next…Under Agreement! ● Schedule Home Inspection ► Look for pdf. reports with photos ► Ask us or use personal references ► Mention if you want tests perform:    Radon- canister or computer? Lead Paint Water ► Have a check or CC ready ► Shop around – priced by sqft. and # of bedrooms ► Stay involved – home education ► Ice Dams? Flooding?
    39. 39. 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
    40. 40. Home Inspection Hints Watch out for: •Galvanized steel pipes •Knob and tube wiring •Cracks in foundation •Mold, mildew or signs of leaking near walls or floors Look for and Check: •Chimney sweep fireplace •Double-paned windows inspection •Well ventilated attic •Check all included •Stairs have handrails appliances •Check water pressure
    41. 41. What Next…Lawyers! ● ● ● ● ● ● ● ● Get a Lawyer – They’ll have one so should you! Ask about pricing up front – flat fee What they will be doing? – services Are they a RE attorney? Who will I be working with? How long have you been doing this? Will you work as the bank’s attorney? Contingencies…
    42. 42. 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
    43. 43. Closing: HUD–1 Settlement
    44. 44. Selling Your Home with Redfin
    45. 45. Better Service, Lower Fees We go above and beyond the ordinary brokerage.  Maximum exposure on and the web Top-of-list placement and marketing blitz  Free, professional photography and floor plans Flawless HDR from Boston Virtual Imaging  Your team are your boots on the ground Open houses, showings, inspections, contractors  Data-driven pricing methodology you can track Respond to numbers, not hunches Plus we’ll contribute up to $250 for cleaning, painting, staging, or anything you need to prepare your home to list!
    46. 46. All Done!
    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: Dennis McClosky Check out our upcoming classes: