Redfin’s Home Buying Class
Redfin’s Alexandria Team
September 25, 2013 Alexandria
Host: Patricia Ammann
Follow: @RedfinDC
...
Redfin’s Alexandria Team
Patricia Ammann
Team Lead
Nancy Gordon
Senior Agent
Tonya Nelson
Listings Agent
Stephen Kilroy
Co...
Agenda
● Overview of the process
● Are you ready to buy?
● Understanding the market
● Never miss a home
● Choosing an agen...
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 a Buying a Home
Research
Your needs
The market
Neighborhoods
Agents
Mortgages
Preapproval
Search
Define Prefer...
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...
Understanding the
Market
Slide 11 of 55
0.00
50.00
100.00
150.00
200.00
250.00
300.00
Case-Shiller: DC Area v. 20-City
Case-Shiller – By the Numbers
Case-Shiller: DC Area
Up 5.7% year-over-year
Peak was May 2006
Down 25.5% from peak
Currentl...
Story of 2013: Low Inventory
Story of 2013: Rising Prices
Alexandria Area Overview
Where Is the Market Headed?
● Supply of homes is at a five-year low and won’t increase
much more this year
● Foreclosures ...
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...
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...
Top 10 Reasons to get
Pre-Approved
Stephen ―Steve‖ Fox
Vice President
1. Our Online Application is FREE!
www.StephenFox.com
2. Applying Online takes as little as ten
minutes.
3. By applying, you can be provided with a
FREE credit report.
4. Your application does not bind you to a
lender, loan program or rate.
5. By applying, you can receive a
complete list of documents needed to
obtain final loan commitment.
6. Early application will determine any
action items which a purchaser needs
to accomplish to be positioned to buy.
7. Applying allows a discussion of various
financing options before you sign a
contract.
 Choosing the Right Loan
Fixed or Arm
 Avoiding Mortgage Insurance
8. Applying will determine the price range
of homes you are qualified to purchase,
thereby focusing your home search.
9. Pre-approval strengthens your offer in
the eyes of the seller
Steve,
“Just wanted to thank you so much for all you've d...
10. Your Pre-approval is valid as long as
your finances and the interest rates
remain generally constant and can be
update...
Steve Fox
Vice President
NMLS ID # 208239
Office: 703.883.9581
Cell: 703.407.7424
sfox@firstsavings.com
NMLS ID # 38694 (w...
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
►Lo...
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...
Home Inspection
We recommend that you have a home inspection
● Cost runs $350 to $1200 depending upon the home’s size
● Yo...
What are Contingencies?
This means the seller has accepted an offer on the
property, but success may still depend on passi...
What is Escrow?
Escrow is a third party intermediary that represents neither the
buyer nor the seller.
What do they do?
• ...
Title Companies
● Prepares the final documents, including the HUD-1
● Conducts the closing
● Examines and clears the title...
Closing: HUD–1 Settlement
Signing and Closing
A few days before closing you will sign your closing documents
and have a walk through.
On closing day...
Selling Your Home
with Redfin
● We’re on your side
►Agents paid on your satisfaction
● Double your exposure
►Premium placement on Redfin
►Zillow, Trulia...
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:
Patricia Ammann patricia.ammann@redfin.com
Nancy Gordon nancy.gordon@redfin.co...
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
Redfin' Alexandria Home Buying Class 9.25.13
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Redfin' Alexandria Home Buying Class 9.25.13

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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]
  • [REQUIRED – Updated every time]
  • [REQUIRED – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [REQUIRED – Should be updated once a month]The info on this slide is great. Lets add a visual so its more interesting after all the data slides.
  • [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]
  • [OPTIONAL]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [Required]Add visual
  • [REQUIRED]Add visual
  • OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
  • Required
  • 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' Alexandria Home Buying Class 9.25.13

    1. 1. Redfin’s Home Buying Class Redfin’s Alexandria Team September 25, 2013 Alexandria Host: Patricia Ammann Follow: @RedfinDC Like: http://www.facebook.com/RedfinDC
    2. 2. Redfin’s Alexandria Team Patricia Ammann Team Lead Nancy Gordon Senior Agent Tonya Nelson Listings Agent Stephen Kilroy Coordinator Stevie Tibbs Agent Susan McHale Agent
    3. 3. Agenda ● Overview of the process ● Are you ready to buy? ● Understanding the market ● Never miss a home ● Choosing an agent ● Touring ● Mortgages ● Break! ● 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 a Buying a Home Research Your needs The market Neighborhoods Agents Mortgages Preapproval Search Define Preferences Instant Alerts Open houses Home tours Offer Comparables Draft offer Negotiate Mutual acceptance Closing Earnest money Inspection Loan application Title review Appraisal Financing approval Closing
    8. 8. Are You Ready to Buy?
    9. 9. 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?
    10. 10. Understanding the Market
    11. 11. Slide 11 of 55 0.00 50.00 100.00 150.00 200.00 250.00 300.00 Case-Shiller: DC Area v. 20-City
    12. 12. Case-Shiller – By the Numbers Case-Shiller: DC Area Up 5.7% year-over-year Peak was May 2006 Down 25.5% from peak Currently at October 2004 prices Case-Shiller: 20-City Composite Up 12.1% year-over-year Peak was July 2006 Down 26.2% from peak Currently at February 2004 prices
    13. 13. Story of 2013: Low Inventory
    14. 14. Story of 2013: Rising Prices
    15. 15. Alexandria Area Overview
    16. 16. Where Is the Market Headed? ● Supply of homes is at a five-year low and won’t increase much more this year ● Foreclosures have been driving price declines, and years of inventory remain. Investment groups might have impact ● Rents have been rising, making buying more attractive ● Market stabilized – price increases in many areas ● Rate increases - biggest potential issue for buyers
    17. 17. Never Miss A Home
    18. 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. 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? ● Has a client ever filed a compliant? ● 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. Top 10 Reasons to get Pre-Approved Stephen ―Steve‖ Fox Vice President
    31. 31. 1. Our Online Application is FREE! www.StephenFox.com 2. Applying Online takes as little as ten minutes.
    32. 32. 3. By applying, you can be provided with a FREE credit report.
    33. 33. 4. Your application does not bind you to a lender, loan program or rate.
    34. 34. 5. By applying, you can receive a complete list of documents needed to obtain final loan commitment.
    35. 35. 6. Early application will determine any action items which a purchaser needs to accomplish to be positioned to buy.
    36. 36. 7. Applying allows a discussion of various financing options before you sign a contract.
    37. 37.  Choosing the Right Loan Fixed or Arm
    38. 38.  Avoiding Mortgage Insurance
    39. 39. 8. Applying will determine the price range of homes you are qualified to purchase, thereby focusing your home search.
    40. 40. 9. Pre-approval strengthens your offer in the eyes of the seller Steve, “Just wanted to thank you so much for all you've done to help us successfully bid on this townhome. V. received the ratified contract this afternoon at the home inspection. We found out we won the bidding war yesterday because of you really. Another party offered about $5K more and had a West coast lender. The agent advised the sellers to take our offer instead because of YOU, your reputation and history as a local lender. So we're really grateful! —Heather G.
    41. 41. 10. Your Pre-approval is valid as long as your finances and the interest rates remain generally constant and can be updated and amended as needed.
    42. 42. Steve Fox Vice President NMLS ID # 208239 Office: 703.883.9581 Cell: 703.407.7424 sfox@firstsavings.com NMLS ID # 38694 (www.nmlsconsumeracces.org) Apply Online www.StephenFox.com
    43. 43. Short Sales and Bank Owned
    44. 44. 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
    45. 45. 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
    46. 46. Making an Offer
    47. 47. 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
    48. 48. 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
    49. 49. Acceptance to Closing
    50. 50. 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!
    51. 51. 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
    52. 52. 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
    53. 53. What is Escrow? Escrow is a third party intermediary that represents neither the buyer nor the seller. What do they do? • Hold the earnest money • Arrange for payoff of any liens (seller’s mortgage, utilities, etc.) • Coordinate the signing appointments for all parties • Receive and disburse funds for closing • Arrange to notify county offices to change ownership
    54. 54. Title Companies ● Prepares the final documents, including the HUD-1 ● 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
    55. 55. Closing: HUD–1 Settlement
    56. 56. Signing and Closing A few days before closing you will sign your closing documents and have a walk through. On closing day, you’ll probably get your keys at about 5pm.
    57. 57. Selling Your Home with Redfin
    58. 58. ● 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
    59. 59. All Done!
    60. 60. 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
    61. 61. Thanks for Coming! Questions? Get in touch: Patricia Ammann patricia.ammann@redfin.com Nancy Gordon nancy.gordon@redfin.com Stevie Tibbs stevie.tibbs@redfin.com Susan McHale susan.mchale@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events
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