Redfin’s Home Buying Class
Redfin’s Baltimore Team
April 9, 2014 Canton, MD
Host: Tuniscia Daniels
@Redfin
http://www.face...
Meet Redfin’s Baltimore Team
Agenda
● Overview of the process
● Are you ready to buy?
● Never miss a home
● Choosing an agent
● Touring
● Mortgages
● S...
A Little Bit About Redfin
Redfin is a real estate brokerage on a mission to make buying
and selling a home better for you....
Save $4,000 on Average
Understanding the Buying
Process
Overview of Buying a Home
Research
Neighborhoods
Real Estate Agents
Mortgage Options
Preapproval
Consider your needs
Searc...
Understanding the Market
Current Market: Low Inventory
Current Market: Rising Prices
Baltimore Overview
Are You Ready to Buy?
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?
● Hav...
Never Miss A Home
Real Estate Sites: What to Look For
● Has all the homes for sale
● Updated every 15 minutes
● Real-time sales data
● Insig...
Never Miss a Home
Choosing the Right Agent
What to Ask Any Agent
● Is this your full-time job?
● Where were your last five deals?
● Who else will be working with me?...
Redfin Agent Reviews
Redfin’s Partner Program
Partner agents are employed by other brokerages, and have
teamed up with us to provide Redfin-cer...
Seeing Homes in Person
Slide 22 of 55
How Touring with Redfin Works
● Led by agent or associate
agent
● Up to six homes per tour in
two hour bloc...
Mortgages
Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly payment
● Figu...
Get Pre-Approved Early
A pre-approval letter is a letter from a bank or a lender estimating
how much they'll lend you
● Es...
Pulling Credit: Is It Harmful?
● Your credit report must be reviewed by a lender before you
can obtain a pre-approval
● If...
Start Shopping for Lenders
Compile a list of 3-4 local lenders
Good sources include:
● Redfin's partner lenders
● Referral...
Local Recommended Lenders
In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re grea...
Short Sales and Bank Owned
What is a Short Sale?
The owner owes more on the mortgage than the home is
worth
● Usually pre-foreclosure, but not always...
What is a Bank-Owned Property?
● A foreclosed home owned by a bank or lender
● Standard sale but:
► Verbal negotiations
► ...
Making an Offer
Crafting Your Offer
● Evaluate – your agent will provide you with information
about market conditions and recent sales in ...
Tips for Winning a Bidding War
1. Just win, baby! Simply have the best offer.
► Cash is King
► Escalate your price?
► Tigh...
Acceptance to Closing
Steps After Mutual Acceptance
● Earnest money deposit – usually 1-3%+
● Inspection – approximately $500
● Other inspection...
What are Contingencies?
This means the seller has accepted an offer on the
property, but success may still depend on passi...
Home Inspection
We recommend that you have a home inspection
● Cost runs $350 to $1200 depending upon the home’s size
● Yo...
Title Companies
● Prepares the final documents, including the HUD-1 (visual
example of HUD-1 on next slide).
● Conducts th...
Signing and Closing
Expect to be at closing 1 hour or longer to sign all documents.
Bring your photo ID, check book and mo...
So What Now?
● Make sure it’s the right time for you
● Start browsing online
● Check out our Home Buying Guide
● Find the ...
Thanks for Coming!
Questions? Get in touch:
Tuniscia Daniels tuniscia.daniels@redfin.com
Check out our upcoming classes:
h...
All Done!
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Redfin Home Buying Class Baltimore

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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!
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  • [REQUIRED]Add visual
  • Customers will also receive a refund when working with a Redfin Partner Agent, however the refund is reduced because Redfin pays the partner agent a sales commission, ( i.e. “When you work with one of our partner agents, you can expect the same commitment to customer service as you would with a Redfin Agent, as well as a 15% refund or credit on your agent's commission” Redfin website ).
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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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  • I removed the Common Contingencies and terms from the Overview slide # 6, because they will be discussed here.
  • [REQUIRED]
  • [Required]Add visual
  • Add visual
  • Required
  • OPTIONALThis is different by market so we should have different slides for each.
  • We’ll stick around to answer questions…..
  • Redfin Home Buying Class Baltimore

    1. 1. Redfin’s Home Buying Class Redfin’s Baltimore Team April 9, 2014 Canton, MD Host: Tuniscia Daniels @Redfin http://www.facebook.com/Redfin
    2. 2. Meet Redfin’s Baltimore Team
    3. 3. Agenda ● Overview of the process ● Are you ready to buy? ● Never miss a home ● Choosing an agent ● Touring ● Mortgages ● Short sales & foreclosures ● Making an offer ● Acceptance to closing
    4. 4. 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
    5. 5. Save $4,000 on Average
    6. 6. Understanding the Buying Process
    7. 7. Overview of Buying a Home Research Neighborhoods Real Estate Agents Mortgage Options Preapproval Consider your needs Search Define Preferences Saved Search Home Tours Open Houses Offer Comparables Draft Offer Docs Negotiate Mutual Acceptance Closing Earnest Money Inspection Loan application Title Review Appraisal Financing Approval Closing
    8. 8. Understanding the Market
    9. 9. Current Market: Low Inventory
    10. 10. Current Market: Rising Prices
    11. 11. Baltimore Overview
    12. 12. Are You Ready to Buy?
    13. 13. 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?
    14. 14. Never Miss A Home
    15. 15. 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
    16. 16. Never Miss a Home
    17. 17. Choosing the Right Agent
    18. 18. 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 complaint? ● How are you paid? ● Can I see some reviews of your work?
    19. 19. Redfin Agent Reviews
    20. 20. 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
    21. 21. Seeing Homes in Person
    22. 22. Slide 22 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
    23. 23. Mortgages
    24. 24. 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
    25. 25. 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
    26. 26. 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
    27. 27. 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
    28. 28. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    29. 29. Short Sales and Bank Owned
    30. 30. What is a Short Sale? The owner owes more on the mortgage than the home is worth ● 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 partner agent ● Redfin partner agents work for other brokerages but share Redfin’s commitment to customer service ● Get a 15% commission refund
    31. 31. 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
    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. Acceptance to Closing
    36. 36. 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 ● Appraisal ● Loan approval ● Document signing ● Walk through ● Closing ● Receive your keys!
    37. 37. 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
    38. 38. 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
    39. 39. Title Companies ● Prepares the final documents, including the HUD-1 (visual example of HUD-1 on next slide). ● Conducts the closing ● Examines and clears the title to the property ● Records the deed, mortgage and any other recordable instruments ● Issues title insurance to the lender and the buyer
    40. 40. Signing and Closing Expect to be at closing 1 hour or longer to sign all documents. Bring your photo ID, check book and money for closing. On closing day, you usually get the keys to your new home.
    41. 41. 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
    42. 42. Thanks for Coming! Questions? Get in touch: Tuniscia Daniels tuniscia.daniels@redfin.com Check out our upcoming classes: http://www.redfin.com/classes
    43. 43. All Done!

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