Redfin Home Buying Class
Redfin Agent, North End Team
July 2, 2014 Everett, WA
Brian Shields: Redfin Agent
● Agent for 11 years
● Closed A LOT of homes
● Specialize in: First Time Home
Buyers, Condos, town
houses, Single Family, REO’s,
● Services: N. King and
● Lives in Everett
● Buying process overview
● Getting ready to buy
● Searching for homes
● Making an offer
● Acceptance to closing
● Short sales & REO
A Little Bit About Redfin
Redfin is a real estate brokerage that has helped over 20,000
people buy or sell a home; 97% would refer us to a friend.
● Customers, not commissions
● Informed decisions
● Right home for the right price
Seattle Market Trends
● Prices up 2.8% YoY, up 4.3% MoM
● # homes sold up 3.3% YoY, down 12.3% MoM
● # homes for sale up 12.0% YoY, up 5.2% MoM
● 62.1% homes faced competition
● 44.1% of homes went pending in 2 weeks
● Winning Offers:
► 41.9% sold over asking
► 37.2% included a cover letter
► 11.6% waved financing
► 23.3% waved inspection
Where Is the Market Headed?
● Supply of homes is at a five-year low and won’t increase
much more this year.
● 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 stabilizing, though likely 2-3 years before significant
● Rate increases — biggest potential issue for buyers
Partners in the Process
Responsible for your success
Writes your offer
Works with escrow
Takes you to see homes
Sees 50+ homes a week
Redfin Partner Program
Partner agents are employed by other brokerages, but have
teamed up with us to provide Redfin-certified service to a
wider range of customers.
We’ll refer you to a partner agent when:
►A home is outside of our direct service area
►If it’s in your financial advantage to work with a partner
►We’re experiencing an 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
Benefits of a MLS-Powered Site
● See all the homes for sale: 20+% more than national portals
● See newly listed homes faster by 7-9 days
● Over 1/3 of the homes on a portal site are no longer for sale
● You see what the agent sees plus data from other sources
● Real-time market data: photos, details of just-sold homes
● Search by zip code, neighborhood, school district
● Instant alerts – save your search to get a jump on new
● Tour Insights – get the scoop before you see a home
● Download results – crunch your own spreadsheets
● Price your home – look at sold listings and ask for help
● Forums – get advice from the Redfin community
● Resources – Home buying guide & home inspection guide
Any questions about the site?
How Touring with Redfin Works
● Up to six homes per tour in two hour blocks
● See as many homes as you need
● One home tours are okay
● Led by a member of your team –
Agent or Associate Agent
● No obligation
Tip: Consider starting off with
fewer homes per tour so you
don’t feel rushed.
Making the Most of Your Tour
The Redfin agent for your tour will help you evaluate homes –
pointing out both positive and negative features.
Considering bringing a camera, notebook and tape measure.
Wear shoes that are easy to take off/put on.
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:
Multiple Offer Situations
Tips for Winning in 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 1-3%+
● Inspection – approximately $500
● Other inspections – sewer scope, septic, etc.
● Loan application – 5 days or less
● Title review
● Loan approval
● Document signing
● Walk through
● Receive your keys!
What is Escrow?
Escrow is a third party intermediary that represents neither the
buyer nor the seller. What do they do?
• Hold the earnest money
• Arrange for payoff of any liens (seller’s mortgage, utilities,
• Coordinate the signing appointments for all parties
• Receive and disburse funds for closing
• Arrange to notify county offices to change ownership
Signing and Closing
A few days before closing you will sign your closing documents
and have a walk through.
On closing day, you’ll probably get your keys at about 5pm.
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)
We Can Help With a Short Sale!
● See short sales with a Redfin agent
● If you want to buy, work with a Redfin agent or a short sale
● Redfin partner agents work for other brokerages but share
Redfin’s commitment to customer service
● Get a 15% commission refund
What is a Bank-Owned Property?
● A foreclosed home owned by a bank or lender
● Standard sale but:
►Long response times
►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
►Contract often requires early release of earnest money
So… Where’s the Best Deal?
● Sellers who own their home outright
● Sellers who are relocating
● Estate Sales
● REO & Short Sales if “Best Deal” means lowest price
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 -
typically 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
● Determine source of funds
● Current employment status
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
● Maintaining a pre-approval
has a negligible impact on
your credit score
● Don’t allow lots of lenders to
pull your credit score
Start Shopping for Lenders
Compile a list of 3-4 lenders & brokers
Good sources include:
● Redfin's partner lenders
● Referrals from friends, family & co-workers
● Online review sites, such as Yelp
● Local chains and offices
Local Recommended Lenders
In no way does
lenders – we just
think they’re great
A pre-approval proves that you have the basic qualifications
to obtain a mortgage. You’ll need it to make an offer.
● Establishes what you can afford
● Pre-Approval vs. Pre-Qualification
● Good for 90 days, depending on lender
● Ask for a few different amounts
● Get pre-approved before your third tour
● Are gift funds involved?
● How much do you have for a down payment?
● W-2, two pay-stubs, tax returns, bank statements
So What Now?
● Make sure it’s the right time for you
● Start browsing online
● Check out our Home Buying Guide and Events page
● Find the right agent
● Look for a lender and get pre-approved
● Start seeing homes
● Make an offer & close the deal
Thanks for Coming!
Questions? Get in touch:
Brian Shields email@example.com
Check out our upcoming classes: