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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]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.
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  • [REQUIRED]Add visual
  • [OPTIONAL – cut or skip this slide if not relevant for your market or class]
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  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [REQUIRED – Update with local lender]
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  • [Required]Add visual
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  • OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
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  • 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…

Transcript

  • 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. 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. 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. 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. Save $4,000 on Average
  • 6. Understanding the Buying Process
  • 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. Are You Ready to Buy?
  • 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. Understanding the Market
  • 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. 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. Story of 2013: Low Inventory
  • 14. Story of 2013: Rising Prices
  • 15. Alexandria Area Overview
  • 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. 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. 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. Never Miss a Home
  • 21. Choosing the Right Agent
  • 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. Redfin Agent Reviews
  • 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. Seeing Homes in Person
  • 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. 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. Mortgages
  • 29. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  • 30. Top 10 Reasons to get Pre-Approved Stephen ―Steve‖ Fox Vice President
  • 31. 1. Our Online Application is FREE! www.StephenFox.com 2. Applying Online takes as little as ten minutes.
  • 32. 3. By applying, you can be provided with a FREE credit report.
  • 33. 4. Your application does not bind you to a lender, loan program or rate.
  • 34. 5. By applying, you can receive a complete list of documents needed to obtain final loan commitment.
  • 35. 6. Early application will determine any action items which a purchaser needs to accomplish to be positioned to buy.
  • 36. 7. Applying allows a discussion of various financing options before you sign a contract.
  • 37.  Choosing the Right Loan Fixed or Arm
  • 38.  Avoiding Mortgage Insurance
  • 39. 8. Applying will determine the price range of homes you are qualified to purchase, thereby focusing your home search.
  • 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. 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. 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. Short Sales and Bank Owned
  • 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. 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. Making an Offer
  • 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. 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. Acceptance to Closing
  • 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. 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. 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. 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. 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. Closing: HUD–1 Settlement
  • 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. Selling Your Home with Redfin
  • 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. All Done!
  • 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. 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