Redfin’s Home Buying Class
May 10, 2014
Wellesley, MA
Host: Dan Sharry
dan.sharry@redfin.com
508-667-1196
Agenda
● Overview of the process
● Are you ready to buy?
● Understanding the buying process
● Understanding the market
● N...
A Little Bit About Who We Are
Redfin is a real estate brokerage that has helped over 20,000
people buy or sell a home; 97%...
Working With Redfin is Different
● Service
► Advocates: client-satisfaction bonuses, not commissions
► Transparency: infor...
Dan Sharry
Senior Agent
The Local Redfin Team
Deb
Associate Agents
Tara
Heidi Kathleen Robert Robin
Coordinators
The Redfin Refund
You buy and pay for
your dream home.
The 5% sales
commission is split.
The Listing Agent
gets 2.5% commi...
Save $4,000 on Average
Understanding the Buying
Process
Are You Ready to Buy?
● Do you have a family and need room to grow?
● Do you expect to own the home for 5 or more years?
●...
Overview of a Purchase
Research
Neighborhoods
Real Estate Agents
Mortgage Options
Preapproval
Consider your needs
Search
D...
Tour homes
Find dream home
Consult with agent, write offer
Submit offer to listing agent
Negotiations
Success! Mutual Acce...
Understanding the
Market
Local Market Trends: Boston Area
March 2014: Bidding Wars
● 75.9% homes faced competition
 Up 9.2% Month-Over-Month
 Up ...
Local Market Trends: Boston Area
● % of New Listings Under Contact in 2 weeks
► March 2014: 39.5%
► February 2014: 29.6%
►...
Local Market Trends: Boston Area
March 2014: Price Tracker
● $360,000 – Median Sale Price
► Up 5.9% Month-Over-Month
► Up ...
Wellesley ,MA Inventory
City Overview
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
Making the Most of Your Tour
1. Bring a camera, notebook & tape measure
2. See how much sunlight the place gets
3. Check t...
Slide 27 of 55
How Touring with Redfin Works
● Led by agent or associate
agent
● Up to six homes per tour in
two hour bloc...
Mortgages
Local Recommended Lenders
In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re grea...
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...
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
Under Agreement!
● Schedule Home Inspection
► Look for pdf. reports with photos
► Ask us or check Redfin’s Open Book
► Hav...
Steps After Contract Acceptance
● Earnest money deposit – usually $1000
● Inspection – approximately $500-$700
► Your agen...
Home Inspection Hints
•Double-paned windows
•Well ventilated attic•Knob and tube wiring
•Mold, mildew or signs of
leaking ...
Assembling
The Right Buying Team:
The Right Attorney
Lawyers
● Get a Lawyer – They’ll have one so should you!
● This is likely the largest purchase you will make in your life
...
What are Contingencies?
This means the seller has accepted an offer on the
property, but success may still depend on passi...
The Purchase & Sale
● Purchase And Sales Contract
► Negotiated by your Real Estate attorney
► “The guts of the deal”
► Ins...
Closing: HUD–1 Settlement
Walkthrough & Closing
A day or two prior to closing you will do a walkthrough to make
sure the property is in the agreed u...
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:
► Long response times
► ...
Selling Your Home
with Redfin
● We’re on your side
► Agents paid on your satisfaction
● Double your exposure
► Premium placement on Redfin
► Zillow, Tru...
All Done!
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:
Dan Sharry – dan.sharry@redfin.com
Check out our upcoming classes:
http://www....
Appendix
HUD Settlement Statement
Favorite Real Estate Links
● Property information
► PropertyShark: Zoning data, title
history, permits, neighborhood data;...
Favorite Mortgage Links
● Bankrate: Many ads, but is great for comparing local
lenders
● The Mortgage Professor: Bare bone...
Favorite Links
● Remodeling & Renovations
► DoItYourself.com: A few ads, but a useful clearinghouse
of information on remo...
Upcoming SlideShare
Loading in …5
×

Redfin Wellesley Home Buying Class

216 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
216
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • [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
  • http://www.redfin.com/research/reports/real-time-bidding-wars#.UtCOgfRDuAgUpdate with your market’s info
  • http://www.redfin.com/research/reports/real-time-fastest-markets/2013/homebuyer-speed-holds-steady-in-november-with-27-percent-of-homes-selling-in-two-weeks-or-less.html#.UtCPIfRDuAgUpdate with your market
  • http://www.redfin.com/research/reports/real-time-price-tracker#.UtCPdfRDuAgUpdate with your market
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]Add visual
  • [OPTIONAL – cut or skip this slide if not relevant for your market or class]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [REQUIRED – Update with local lender]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [Required]Add visual
  • 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
  • OPTIONALThis is different by market so we should have different slides for each.
  • [OPTIONAL]
  • Notes from Matt:- Update this slide so it is easier to read
  • We’ll stick around…
  • Redfin Wellesley Home Buying Class

    1. 1. Redfin’s Home Buying Class May 10, 2014 Wellesley, MA Host: Dan Sharry dan.sharry@redfin.com 508-667-1196
    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 Who We Are 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  No obligation  Commission credit
    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 40% of the commission ● The Best Results ► Service: 97% would recommend us to a friend
    5. 5. Dan Sharry Senior Agent The Local Redfin Team Deb Associate Agents Tara Heidi Kathleen Robert Robin Coordinators
    6. 6. The Redfin Refund You buy and pay for your dream home. The 5% sales commission is split. The Listing Agent gets 2.5% commission. Your Buyers’ Agent gets 2.5% commission. You save with Redfin. Redfin keeps a portion as our fee.
    7. 7. Save $4,000 on Average
    8. 8. Understanding the Buying Process
    9. 9. Are You Ready to Buy? ● Do you have a family and need room to grow? ● Do you expect to own the home for 5 or more years? ● Have you saved up a down payment? ● Can you rent for less?
    10. 10. Overview of a Purchase 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
    11. 11. 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
    12. 12. Understanding the Market
    13. 13. Local Market Trends: Boston Area March 2014: Bidding Wars ● 75.9% homes faced competition  Up 9.2% Month-Over-Month  Up 2.5% Year-Over-Year ● Features of Winning Offers:  All Cash: 20%  Waived Financing: 33.3%  Waived Inspection: 33.3%  Had cover letter: 40%
    14. 14. Local Market Trends: Boston Area ● % of New Listings Under Contact in 2 weeks ► March 2014: 39.5% ► February 2014: 29.6% ► Last Year: 18.4% ● Median Number of Days on Market Until Pending ► March 2014: 47 ► February 2014: 63 ► Last Year: 56
    15. 15. Local Market Trends: Boston Area March 2014: Price Tracker ● $360,000 – Median Sale Price ► Up 5.9% Month-Over-Month ► Up 9.6% Year-Over-Year ● 2,499– Homes Sold ► Up 34.9% Month-Over-Month ► Down 4.4% Year-Over-Year ● 9,143– Homes for Sale ► Down 2.2% Month-Over-Month ► Down 28.2% Year-Over-Year
    16. 16. Wellesley ,MA Inventory
    17. 17. City Overview
    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. Choosing the Right Agent
    22. 22. 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? ● How are you paid? ● Can I see some reviews of your work?
    23. 23. Redfin Agent Reviews
    24. 24. 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
    25. 25. Seeing Homes in Person
    26. 26. 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
    27. 27. Slide 27 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
    28. 28. Mortgages
    29. 29. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    30. 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. 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. 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. 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. 34. Making an Offer
    35. 35. 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
    36. 36. 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
    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 ► Have a check or CC ready ► Shop around – priced by sqft. and # of bedrooms ► Stay involved – Home Education
    39. 39. Steps After Contract Acceptance ● Earnest money deposit – usually $1000 ● Inspection – approximately $500-$700 ► Your agent will accompany you ► Your time to evaluate the property ● Other inspections – radon, mold, pest etc. ● Loan application – 7days or less ● Title review ● Appraisal ● Loan approval ● Walk through ● Closing ● Receive your keys!
    40. 40. 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:
    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?
    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. ● Appraisal – Performed in conjunction with financing ● Financing – Your ability to get a mortgage
    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. Walkthrough & Closing A day or two prior to closing you will do a walkthrough to make sure the property is in the agreed upon condition At closing you will sign all necessary mortgage and closing documents and get your keys!
    47. 47. Short Sales and Bank Owned
    48. 48. 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 ● May have other liens (taxes, utilities, HOA) ● See short sales with a Redfin Agent ● If you want to buy, work with a Redfin Agent or a short sale partner agent ● Get a 15% commission refund
    49. 49. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender ● Standard sale but: ► 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
    50. 50. Selling Your Home with Redfin
    51. 51. ● 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 We’ve helped over 50 people sell their homes in the last six months. Better Service, Lower Fees
    52. 52. All Done!
    53. 53. 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 ● Call if you have questions ● Look for a local lender and get pre-approved ● Start seeing homes in person ● Make an offer & close the deal ● Put your team to work for you!
    54. 54. Thanks for Coming! Questions? Get in touch: Dan Sharry – dan.sharry@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events
    55. 55. Appendix
    56. 56. HUD Settlement Statement
    57. 57. 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
    58. 58. Favorite Mortgage Links ● Bankrate: Many ads, but is great for comparing local lenders ● 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
    59. 59. Favorite Links ● 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

    ×