Redfin's Free Home Buying Class - Boston, MA


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  • [REQUIRED – please add the main presenter’s photos]
  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [REQUIRED – Update with local lender]
  • 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.
  • Notes from Matt:- Update this slide so it is easier to read
  • We’ll stick around…
  • Redfin's Free Home Buying Class - Boston, MA

    1. 1. Redfin’s Home Buying Class College Club of Boston February 19th 2014 Follow: @Redfin Like:
    2. 2. Redfin’s Metro Boston Team Hannah Driscoll Team Lead Katie Gustafson Agent James Gulden Simon Anderson Agent Transaction Coordinator They’ve closed 65+ deals in the past 12 months!
    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. 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?
    5. 5. Understanding the Market
    6. 6. Back Bay/Beacon Hill - Statistics for Houses
    7. 7. Back Bay/Beacon Hill - Statistics for Condos
    8. 8. Inventory
    9. 9. Overview
    10. 10. Never Miss A Home
    11. 11. 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
    12. 12. Never Miss a Home
    13. 13. 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 13 of 55
    14. 14. Mortgages
    15. 15. 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
    16. 16. 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
    17. 17. 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
    18. 18. 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
    19. 19. Current Average Rates Type of Loan February 13, 2014 February 6, 2014 30-Year Fixed 4.28% 4.23% 15-Year Fixed 3.33% 3.33% 5/1 ARM 3.05% 3.08% 1-Year ARM 2.55% 2.51%
    20. 20. 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 *Know your lender
    21. 21. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    22. 22. The Offer & The Deal
    23. 23. 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
    24. 24. 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 ► All appliances to stay
    25. 25. What Next…Under Agreement! ● Schedule Home Inspection ► Look for pdf. reports with photos ► Ask us or use personal references ► Mention if you want tests perform:   Radon- canister or computer? Lead Paint ► Have a check or CC ready ► Shop around – priced by sqft. and # of bedrooms ► Stay involved – home education ► Ice Dams? Flooding?
    26. 26. 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
    27. 27. 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
    28. 28. Choose an Attorney
    29. 29. Attorney Info ● Get an Attorney – They’ll have one so should you! ● Are they a Real Estate attorney? ► What % of work is real estate? ► Who in the office will you be working with? ► What kind of availability, accessibility, responsiveness? ► How long have you been doing this? ● Ask about pricing up front – flat fee vs. hourly
    30. 30. Attorney Info ● Buyer services provided ► Purchase and Sales review ► Buyer Addendum ► Condominium Document review ● Lender services provided ► Dual representation ► Title Search, Plot Plan, Lien Certificate ► Role at Closing ● Important protections ► Title insurance ► Homestead
    31. 31. Local Recommended Attorneys In no way does Redfin benefit financially from recommending attorneys – we just think they’re great lawyers!
    32. 32. Closing: HUD–1 Settlement
    33. 33. 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!
    34. 34. Selling Your Home with Redfin
    35. 35. 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 We’ve helped over 50 people sell their homes in the last six months.
    36. 36. 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
    37. 37. Future Events!
    38. 38. Thanks for Coming! Please fill out the survey