Redfin's Free Home Buying Class- Belmont

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  • [REQUIRED – please add the main presenter’s photos]
  • [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 – 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
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  • [REQUIRED – Update with local lender]
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  • [REQUIRED]Add visual
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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
  • Nancy
  • We’ll stick around…
  • Redfin's Free Home Buying Class- Belmont

    1. 1. Redfin’s Home Buying Class November 19, 2013 Belmont, MA Hosts: Dan Sharry & Peter Phinney Follow: @Redfin Like: http://www.facebook.com/Redfin
    2. 2. Agenda ● ● ● ● ● ● ● ● ● ● ● ● Overview of the process Are you ready to buy? Understanding the buying process Understanding the market Never miss a home Touring Choosing an agent Mortgages Lawyers Making an offer Acceptance to closing Selling with Redfin
    3. 3. 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
    4. 4. Working With Redfin is Different ● Service ► Advocates: client-satisfaction bonuses, not commissions ► Transparency: informed decisions ► Best Agents: The right home for the right price ● No obligation ► Switch Redfin agents ► Pause and re-start your search any time ► Tour on your schedule and pace ● Refund ► You get 15% to 50% of the commission ● The Best Results ► Service: 97% would recommend us to a friend
    5. 5. Redfin’s Waltham-Wellesley-Belmont Team Heidi Dave Robert Kuldip Pete Associate Agents Peter Phinney Dan Sharry Team Lead Agent Together we’ve closed 75+ deals in the past 12 months! Sara Diana Coordinators
    6. 6. The Redfin Refund The Listing Agent gets 2.5% commission. You save with Redfin. You buy and pay for your dream home. The 5% sales commission is split. Your Buyers’ Agent gets 2.5% commission. Redfin keeps a portion as our fee.
    7. 7. Save $4,000 on Average
    8. 8. 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?
    9. 9. Understanding the Buying Process
    10. 10. 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
    11. 11. 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
    12. 12. Understanding the Market
    13. 13. Story of 2013: Low Inventory
    14. 14. Story of 2013: Rising Prices
    15. 15. Belmont Area Overview
    16. 16. Nearby Neighborhoods Overview
    17. 17. 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
    18. 18. Never Miss A Home
    19. 19. 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
    20. 20. Never Miss a Home
    21. 21. Seeing Homes in Person
    22. 22. 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 22 of 55
    23. 23. 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
    24. 24. Mortgages
    25. 25. 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
    26. 26. 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
    27. 27. 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
    28. 28. 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
    29. 29. Types of Loans ● Conventional: ► As low as 5% down ► Fixed or adjustable rates, conforming or non-conforming ● Federal Housing Administration Loan (FHA): ► Always have mortgage insurance ► Buyers need only a 3.5% down payment ● VA Guaranteed Loan: ► Veterans, active duty personnel, reservists/national guard, surviving spouses ► No down payment ● Ask your lender if they have special loan programs ► Example: BB&T Chips Program
    30. 30. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    31. 31. Current Average Rates Type of Loan November 14, 2013 November 7, 2013 30-Year Fixed 4.35% 4.16% 15-Year Fixed 3.35% 3.27% 5/1 ARM 3.01% 2.96% 1-Year ARM 2.61% 2.61%
    32. 32. Making an Offer
    33. 33. 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
    34. 34. 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
    35. 35. Choosing the Right Agent
    36. 36. 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?
    37. 37. Acceptance to Closing
    38. 38. Under Agreement! ● Schedule Home Inspection ► Look for pdf. reports with photos ► Ask us or check Redfin’s Open Book ► 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. Assembling The Right Buying Team: The Right Attorney
    42. 42. Lawyers ● ● ● ● ● ● ● ● ● ● Get a Lawyer – They’ll have one so should you! This is likely the largest purchase you will make in your life You are entering into a legally binding contract 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…
    43. 43. 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
    44. 44. The Purchase & Sale ● Purchase And Sales Contract ► Negotiated by your Real Estate attorney ► “The guts of the deal” ► Inspection Items –Yes/No ► Deposit Money Required (5% typical in MA)  Personal check acceptable  To Listing Broker/Seller’s Attorney Escrow Account ● Redfin Rebate!!! -closing costs, reduction… ● Copy to your lender ASAP
    45. 45. Closing: HUD–1 Settlement
    46. 46. Selling Your Home with Redfin
    47. 47. Better Service, Lower Fees We go above and beyond the ordinary brokerage.  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!
    48. 48. All Done!
    49. 49. 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
    50. 50. Thanks for Coming! Questions? Get in touch: Peter Phinney Dan Sharry peter.phinney@redfin.com dan.sharry@redfin.com Check out our upcoming classes: http://www.redfin.com/classes
    51. 51. Appendix
    52. 52. HUD Settlement Statement
    53. 53. Favorite Real Estate Links ● Property information ► PropertyShark: Zoning data, title history, permits, neighborhood data; navigation is clunky ● Neighborhood information ► WalkScore: Proximity to points of interest ► Trulia Heat Maps: Median prices across a county
    54. 54. Favorite Data Links ● Case-Schiller Indices: Pricing trends by metropolitan area ● Altos Research: Median price trends and days on market by city, but some complain data is unreliable ● MSN Home Affordability Calculator: Based on your income & credit score ● SmartMoney's Home Buying Worksheet: Similar to the MSN calculator, but requires more info
    55. 55. Favorite Mortgage Links ● Bankrate: Many ads, but is great for comparing local lenders ● Zillow's Mortgage Marketplace Help Center: Articles mortgage rates, types of mortgages, credit reports, and a series of mortgage calculators ● The Mortgage Professor: Bare bones information on mortgages, definitions of common terms, myriad of mortgage calculators ● HUD FHA page: Most reliable explanation of FHA loans, good site for first-time buyers
    56. 56. Favorite Links ● Loans for first-time home buyers ► Federal Housing Administration (FHA) ► Fannie Mae and Freddy Mac ● Government sites ► Federal Trade Commission: Articles & alerts for homebuyers. ► Dept. of Justice: Role of competition in real estate
    57. 57. Favorite Links Cont. ● Remodeling & renovations ► DoItYourself.com: A few ads, but a useful clearinghouse of information on remodeling ► National Association of Home Builders (NAHB): Articles on remodeling your home, most are good

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