Redfin's Free Home Buying Class- Lexington
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  • [REQUIRED – please add the main presenter’s photos]
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  • [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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  • 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- Lexington Presentation Transcript

  • 1. Redfin’s Home Buying Class Redfin’s West Boston Team September 24 th, 2013 Lexington Follow: @Redfin Like: http://www.facebook.com/Redfin Sandy Rosen Nancy McLaughlin
  • 2. Sandy Rosen, West Boston Agent ● I’ve lived in Lexington since 1986 ● I service Lexington, Winchester, Burlington, Woburn, Bedford, Concord, Lin coln, Sudbury ● In the past (and still can), I’ve serviced Arlington, Belmont, Waltham/Watertown, Newtown, Needham and Brookline ● Specialize in multiple bid, backup offers, and 1st time home buyers ● I enjoy teaching others about real estate! How Redfin works, what to look for in a home, explaining the entire offer
  • 3. 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 traditional models ● 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
  • 4. 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
  • 5. 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
  • 6. Save $4,000 on Average
  • 7. Understanding the Buying Process
  • 8. Overview of a Buying a Home Research Your needs The market Neighborhoods Agents Mortgages Preapproval Search Define Preferences Instant Alerts Open houses Home tours Offer Comparables Draft offer Negotiate Mutual acceptance Closing Earnest money Inspection Loan application Title review Appraisal Financing approval Closing
  • 9. Are You Ready to Buy?
  • 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? Typically 0-2% ● Can you rent for less?
  • 11. Understanding the Market
  • 12. Case-Shiller: Boston v. 20-City 0.00 50.00 100.00 150.00 200.00 250.00 Boston Area 20-City Composite
  • 13. 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
  • 14. Story of 2013: Low Inventory
  • 15. Story of 2013: Rising Prices
  • 16. Lexington Area Overview
  • 17. 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%
  • 18. 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
  • 19. Never Miss A Home
  • 20. 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
  • 21. Never Miss a Home
  • 22. Choosing the Right Agent
  • 23. 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?
  • 24. Redfin Agent Reviews
  • 25. 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
  • 26. Seeing Homes in Person
  • 27. 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 house 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 listing details
  • 28. Slide 28 of 55 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
  • 29. Mortgages
  • 30. 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
  • 31. 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
  • 32. 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
  • 33. 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
  • 34. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  • 35. 10-Minute Break 10 mins 5 mins End Let’s Get Started!
  • 36. Making an Offer
  • 37. 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
  • 38. 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
  • 39. Acceptance to Closing
  • 40. Tour homes Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations 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 Purchase Success! Mutual Acceptance Closing! Receive Redfin refund Complete Redfin survey
  • 41. 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?
  • 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. Home Inspection Hints •Double-paned windows •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 inspection •Stairs have handrails•Check all included appliances •Cracks in foundation Watch out for: Look for and Check:
  • 44. 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…
  • 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 ● Termite ● Other
  • 46. Closing: HUD–1 Settlement
  • 47. Selling Your Home with Redfin
  • 48.  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
  • 49. All Done!
  • 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. Thanks for Coming! Questions? Get in touch: Sandy Rosen sandy.rosen@redfin.com Nancy McLaughlin nancy.mclaughlin@redfin.com Check out our upcoming classes: http://www.redfin.com/classes