Redfin’s Home Buying Class
Redfin’s West Boston Team
September 24 th, 2013 Lexington
Sandy Rosen, West Boston Agent
● I’ve lived in Lexington since 1986
● I service
Lexington, Winchester, Burlington, Woburn, Bedford, Concord, Lin
● In the past (and still can), I’ve serviced
Arlington, Belmont, Waltham/Watertown, Newtown, Needham and
● Specialize in multiple bid, backup offers, and 1st time home
● I enjoy teaching others about real estate! How Redfin
works, what to look for in a home, explaining the entire offer
Nancy McLaughlin, Listing Specialist
● Live in Winchester- for 8 years with my husband and 2 dogs
● Been in real estate for 15 years- new construction projects and
● At Redfin, I work with sellers north and west of Boston
● Specialize in working with sellers and marketing new
construction for developers
● I enjoy volunteering at hospitals, nursing homes, etc. with
my therapy dog Caymen comforting those in need
● 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
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: Boston v. 20-City
Case-Shiller – By the Numbers
Case-Shiller: Boston Area
Up 6.7% year-over-year
Peak was September 2005
Down 9.7% from peak
As of June 2013, homes are selling at April 2004 prices and
December 2007 prices
Case-Shiller: 20-City Composite
Up 12.1% year-over-year
Peak was July 2006
Down 26.2% from peak
Currently at February 2004 prices
Current Average Rates
Type of Loan September 12, 2013 September 5, 2013
30-Year Fixed 4.57% 4.57%
15-Year Fixed 3.59% 3.59%
5/1 ARM 3.22% 3.28%
1-Year ARM 2.67% 2.71%
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
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
1. Bring a camera, notebook & tape measure
2. See how much sunlight the place gets
3. Check the bathrooms for rot & mold
4. Look for wavy or discolored wood siding
5. Make sure water spouts drain away from
6. Take stock of storage space
7. Turn off any music playing in house
8. Check for hardwood floors
9. Peek into the attic
10. Bring a marble or two
11. When sharing a wall, make sure it’s thick
12. Ignore the appliances and carpets
13. Check the closets
14. Get the disclosure packet
15. Compare the property’s tax records to the
Slide 28 of 55
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
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
Local Recommended Lenders
In no way does
lenders – we just
think they’re great
10 mins 5 mins End
Let’s Get Started!
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:
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
Find dream home
Consult with agent, write offer
Submit offer to listing agent
Success! Mutual Acceptance
Earnest money [$1000]
Inspection contingency [5-10 days]
5% of Purchase Price
P&S Review [10-14 days]
Financing contingency [20-25]
Final walk thru - details
Get keys and take possession!
Overview of a
Success! Mutual Acceptance
Receive Redfin refund
Complete Redfin survey
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?
►Have a check or CC ready
►Shop around – priced by sqft. and # of bedrooms
►Stay involved – home education
►Ice Dams? Flooding?
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
Home Inspection Hints
•Well ventilated attic•Knob and tube wiring
•Mold, mildew or signs of
leaking near walls or floors
•Check water pressure
•Galvanized steel pipes •Chimney sweep fireplace
•Stairs have handrails•Check all included
•Cracks in foundation
Watch out for: Look for and Check:
● 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?
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
● Appraisal – Performed in conjunction with financing
Maximum exposure on Redfin.com 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!
We go above and beyond the ordinary brokerage.
Better Service, Lower Fees
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
Thanks for Coming!
Questions? Get in touch:
Sandy Rosen email@example.com
Nancy McLaughlin firstname.lastname@example.org
Check out our upcoming classes: