Redfin Home Buying CLass -

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Redfin Home Buying CLass -

  1. 1. Redfin’s Home Buying Class Redfin’s Anne Arundel Team July 22, 2014 – Annapolis, MD Host: Marcie Gatton & Kim Dixson @Redfin http://www.facebook.com/Redfin
  2. 2. Redfin’s Anne Arundel/PG Team! Pam Phelps Listing Specialist
  3. 3. Agenda ● Overview of the process ● Are you ready to buy? ● Choosing an agent ● Never miss a home ● Touring ● Mortgages ● Short sales & foreclosures ● Making an offer ● Acceptance to closing ● Selling with Redfin
  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 $6,000 on Average
  6. 6. Understanding the Buying Process
  7. 7. Overview of Buying a Home 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
  8. 8. Understanding the Market
  9. 9. Current Market: Low Inventory
  10. 10. Current Market: Rising Prices
  11. 11. Are You Ready to Buy?
  12. 12. 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?
  13. 13. Choosing the Right Agent
  14. 14. 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 complaint? ● How are you paid? ● Can I see some reviews of your work?
  15. 15. Redfin Agent Reviews
  16. 16. Putting it all together to find YOUR home
  17. 17. Redfin.com-Benefits of a MLS Powered Site ● All the homes for sale: 30% more listings ● You see what the agent sees: 4x the data ● Real-time market data: photos, details of just-sold homes
  18. 18. Highlights of Redfin’s Site ● Search by zip code or neighborhood ● Saved searches/instant alerts ● Agent notes ● Download results ● Price your home ● Forums ● Home buying guide ● Home inspection guide ● Any questions about the site?
  19. 19. Never Miss a Home
  20. 20. Seeing Homes in Person
  21. 21. Slide 21 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
  22. 22. Mortgages
  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. 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
  25. 25. 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
  26. 26. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  27. 27. Short Sales and Bank Owned
  28. 28. 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
  29. 29. 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
  30. 30. Making an Offer
  31. 31. 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
  32. 32. 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
  33. 33. Acceptance to Closing
  34. 34. Steps After Mutual Acceptance ● Earnest money deposit – usually 1% ● Inspections ● Loan application – 5 days or less ● Title review ● Appraisal ● Loan approval ● Walk through ● Closing ● Receive your keys!
  35. 35. Home Inspection We recommend that you have a home inspection ● Cost runs $350 to $650 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-well, septic, radon, chimney, termite
  36. 36. Closing Expect to be at closing 1 hour or longer to sign all documents. Bring your photo ID, check book and money for closing. On closing day, you usually get the keys to your new home.
  37. 37. Selling Your Home with Redfin
  38. 38. Pam Phelps – Listing Specialist ● Licensed since 1998 – 16 years ● 181+ transactions lifetime ● 33 transactions in 2013 ● Specialize in Anne Arundel, Prince Georges and Howard Counties ● Distinguished Sales Achievement Club of AA Co Assoc of Realtors – Lifetime Member ● Live in Annapolis
  39. 39. ● 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 Better Service, Lower Fees
  40. 40. 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
  41. 41. Thanks for Coming! Questions? Get in touch: Marcie Gatton marcie.gatton@redfin.com Phil Hobby phil.hobby@redfin.com Check out our upcoming classes: http://www.redfin.com/classes

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