[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
[REQUIRED – Updated every time]
[REQUIRED – Updated every time]
[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.
[OPTIONAL – cut or skip this slide if not relevant for your market or class]
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!
[REQUIRED]Add Lender’s name if he/she’s presenting
[REQUIRED – Update with local lender]
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…
Redfin Home Buying Class
Redfin Long Island Team
January 12, 2013
Port Washington, NY
Host: Jason Goldstein
Jason Goldstein, Long Island
● Services Nassau and Western
● Been in real estate for 3 years
● Specializes in buyer’s agency
● Grew up in Dix Hills- Commack
School District- knows Long
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
Lawyer does survey
Buying a Home
Talk to Lender
Attorney Review – 5 bus. days
Negotiate Offer to Contract
Inspection – 2 bus. days
Loan Commitment – ~30 days
- - - - - - - - - - - - - - - Home-Sale/Close contingency
Other inspection contingencies
Email survey of your agent
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?
Can you rent for less?
Current Average Rates
Type of Loan
January 2, 2014
December 26, 2013
Where Is the Market Headed?
● Supply of homes is expected to increase as we move
toward spring and summer.
● 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 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
If the house has oil heat- is the oil tank
buried underground or is it above ground?
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 25 of 55
● We always prefer to go to open houses with you!
● If you go on your own, always give the listing agent your
Redfin agent’s business card- so they know you are being
represented by us
● When you sign in at an open house, always make sure you
write down your Redfin agent’s name- so there is a written
● Some listing agents don’t like it when you go without your
buyer’s agent…but they are required to let you into the open
house if it’s open to the public.
Let’s Get Started!
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 Redfin
benefit financially from
lenders – we just think
they’re great lenders!
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)
The Truth about Short Sales
● Short sales are not recommended for 1st time home buyers
● Home buyers usually pay market value for a house
● Short sales leave the buyer with little to no control of when
they will close
● It can take 3-4 months, 6 months, 1 year and in some
cases, in Long Island, 2 years to get an answer from the
● Often poor conditions and need lots of repairs
● Many sellers of short sale homes don’t actually want to sellinstead want to buy time before the home goes into
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 10%
Inspection – costs $350 to $800
Other inspections – radon, sewer scope, etc.
Attorney reviews contracts, buyers, and sellers sign contract
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?
► Will you walk the roof?
► Does the inspection report include pictures?
► What do you charge for the inspection?
► When will I get my inspection report back?
► Do you also do a termite 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
● 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
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