Redfin Wellesley Home Buying Class

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  • 1. Redfins Home Buying Class Redfin Southwest Boston July 12, 2014 Wellesley, MA Host: Dan Sharry 508-667-1196
  • 2. Agenda Who we are, the team, the rebate Are you ready to buy? Understanding the buying process Understanding the market Never miss a home-Instant Updates Choosing an agent Touring Mortgages Lawyers Making an offer Acceptance to closing Selling with Redfin
  • 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. 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. Dan Sharry Senior Agent The Local Redfin Team Associate Agents Tara Heidi Kathleen Robert Robin Coordinator
  • 6. Save $4,000 on Average
  • 7. 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.
  • 8. 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?
  • 9. Understanding the Buying Process
  • 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. 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. Understanding the Market
  • 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. 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: 42 February 2014: 41 Last Year: 55
  • 15. Wellesley ,MA Inventory
  • 16. City Overview
  • 17. Never Miss A Home
  • 18. 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
  • 19. Never Miss a Home
  • 20. Choosing the Right Agent
  • 21. 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?
  • 22. Redfin Agent Reviews
  • 23. Seeing Homes in Person
  • 24. 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 its thick 12. Ignore the appliances and carpets 13. Check the closets 14. Get the disclosure packet 15. Compare the propertys tax records to the listing details
  • 25. Slide 25 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
  • 26. Mortgages
  • 27. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders we just think theyre great lenders!
  • 28. 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: 30-40% is healthy, but varies Pay down credit balances to 1/3rd Dont open any new lines of credit Dont buy any big ticket items Source of money Current employment status
  • 29. 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
  • 30. 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
  • 31. Start Shopping for Lenders Compile a list of 2-3 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
  • 32. Making an Offer
  • 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 sellers 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. 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. Whats important to the seller? 4. Write a letter & appeal to the seller
  • 35. Acceptance to Closing
  • 36. 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!