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Redfin's Free Home Buying Class- Somerville


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Redfin's Free Home Buying Class- Somerville

  1. 1. Redfin’s Home Buying Class Redfin’s Cambridge Area Team November 20th 2013 Somerville Follow: @Redfin Like:
  2. 2. Redfin’s Cambridge Area Team Matt Zborenzy Team Lead Stephen Cafferky Senior Agent Steve Novak Diana Greene Agent Transaction Coordinator They’ve closed 71+ deals in the past 12 months!
  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. Save $4,000 on Average
  5. 5. Are You Ready to Buy?
  6. 6. 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?
  7. 7. Understanding the Market
  8. 8. Story of 2013: Low Inventory
  9. 9. Story of 2013: Rising Prices
  10. 10. Somerville Overview
  11. 11. Nearby Neighborhoods
  12. 12. 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 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
  13. 13. Never Miss A Home
  14. 14. 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
  15. 15. Never Miss a Home
  16. 16. Redfin Agent Reviews
  17. 17. Seeing Homes in Person
  18. 18. 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
  19. 19. 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 19 of 55
  20. 20. Mortgages
  21. 21. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  22. 22. 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
  23. 23. 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
  24. 24. 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%
  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. 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!
  27. 27. Making an Offer
  28. 28. 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
  29. 29. 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
  30. 30. Acceptance to Closing
  31. 31. 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
  32. 32. 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?
  33. 33. 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
  34. 34. 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
  35. 35. Choose an Attorney
  36. 36. How to find an Attorney ● Get an Attorney – They’ll have one so you should to! ● 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
  37. 37. Attorney’s responsibilities ● 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
  38. 38. Local Recommended Attorneys In no way does Redfin benefit financially from recommending attorneys– we just think they’re great!
  39. 39. Closing: HUD–1 Settlement
  40. 40. Selling Your Home with Redfin
  41. 41. Better Service, Lower Fees We go above and beyond the ordinary brokerage.  Maximum exposure on 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!
  42. 42. All Done!
  43. 43. 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
  44. 44. Thanks for Coming! Questions? Get in touch: Matt Zborenzy Steve Novak Stephen Cafferky Check out our upcoming classes: