Doug: Courtney and I update this slide to reflect the agent who is presenting and their team.
Point out reviewsUpdating this page: This should be updated based on your Local Rec. Lender. Just go to the page click “Print Screen.” Come back to this page, click on the large image, click delete, and then right click and paste. Size the images so it fits the page. The right click again and click “Send to back.”
Slide 40 – To get the data: Find all data here: http://www.freddiemac.com/pmms/No log in needed
Atlanta home buying webinar 5.2.13
Slide 1 of 37Home Buying 101WebinarMay 2, 2013Presented by: Danielle CoatsRedfin’s Atlanta TeamFollow: @RedfinAtlantaLike: http://www.facebook.com/RedfinAtlanta
Slide 2 of 37A Little Bit About Who We AreRedfin is a real estate brokerage that has helped over 20,000people buy or sell a home; 97% would refer us to a friend.● Customers, not commissions● Informed decisions● The right home for the right price No obligation Get back a portion of our commission
Slide 4 of 37Why You Should Buy a Home● You have a family and need room to grow● You expect to stay put for 5 or more years● You want a home that is difficult to rent● You’re handy & and ready to invest● You’ve saved up a down payment
Slide 5 of 37Why You Shouldn’t Buy a Home● You don’t have a good reason like family or schools● You can’t afford the down payment● You can rent for much less● You plan on moving soon● You’re worried about job security
Slide 7 of 37Overview of Purchase Process(more details to follow)● Information – learn as much as possible about the market,the neighborhood, price trends● Tour some houses to get a general idea● Interview Lenders- get pre-approved● Choose an Agent● Tour more seriously and find YOUR home● Mutual Acceptance on your offer● Home Inspection “Contingency”● Financing and Appraisal “Contingencies”● Closing
Slide 9 of 55Case-Shiller: Atlanta Area v. 20-City0.0050.00100.00150.00200.00250.0020 City CompositeAtlanta
Slide 10 of 37Case-Shiller – By the NumbersCase-Shiller: Atlanta AreaUp 13.4% year-over-yearPeak was July 2007Down 29.0% from peakCurrently at June 1999 prices20-City CompositeUp 8.1% year-over-yearPeak was July 2006Down 29.2% from peakCurrently at September 2003 prices
Slide 11 of 37National Market Trends Homes are being listed at strategically low prices So properties are selling above list price Base your offer price on comps & trends – NOT on list price Deadlines are being set to accept & review offers Sellers usually review offers after about 7 days on market To give property exposure and create buzz amongst buyers Some buyers are waiving their inspection contingency &appraisal contingency
Slide 12 of 37Where is the Local Market Headed?● Supply of homes is at a five-year low and won’t increase therest of the year● Rents have been rising, making buying more attractive● Market stabilizing, though likely 2-3 years before significantappreciation● Rate increases - biggest issue for buyers● Rise in New Construction activity
Slide 16 of 37This occurs when inventory is down and buyer interest is up5 Tips for Winning in a Bidding War1. Make the competition eat your dust2. Get pre-approved with a local lender & get underwriterapproval3. Start the conversation early4. Write a letter & appeal to the seller5. Know your limitsMultiple Offer Situations
Slide 17 of 37Absorption RateNumber of Active listings or comps ina specific marketNumber of homes that sold in that last12 months“The rate at which available homes are sold in a specificreal estate market during a given time period”
Slide 19 of 37What is a Short Sale?The owner owes more on the mortgage than the home isworth● 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)How are short sales different?● Flexible closing date● Contract Price has to be approved by the seller’s lender(s)● Property is sold “as-is”● Get a 15% commission refund
Slide 20 of 37What is a Foreclosure?● A foreclosed home owned by a bank, lender or GSE● Standard sale but:► Verbal negotiations► Long response times► Repairs unlikely► Legal addenda may require an attorney► Limited or no disclosures► Potential for multiple offers► Bank can back out any time until they’ve signed► Fannie Mae and Freddie Mac(GSE’s) – First Look Period► HUD Homes also have a First Look Period
Slide 21 of 37What Happens After You Finda Home You Love?
Slide 22 of 37What to Ask Any Agent● Is this your full-time job?● Familiar with foreclosures or short-sales?● Where were your last five deals?● Who else will be working with me?● Will you show me all properties for sale?● When am I committed to working with you?● Has a client ever filed a complaint?● How are you paid?
Slide 24 of 37Make Sure She’s a Good FitSee alldeals &reviews
Slide 25 of 37Partners in the ProcessAGENTResponsible for your successWrites your offerHandles negotiationsTRANSACTIONCOORDINATORPrepares paperworkWorks with escrowTOURCOORDINATORSchedules toursPrepares paperworkASSOCIATE AGENTTakes you to see homesSees 50+ homes a week
Slide 26 of 37Redfin’s Partner ProgramPartner agents are employed by otherbrokerages, but have teamed up with us to provideRedfin-Certified service to a wider range ofcustomers.We’ll refer you to a partner agent when:► A home is outside of our direct service area► A home is below our price minimum► We’re experiencing an unusually high customer demandWe survey all partner agent clients► All surveys are published on their Redfin page► 97% of customers would recommend Redfin partners
Slide 27 of 37Open Book● Redfin Certified Providers● Every professional is reviewed and all reviews are shown● Search for local:► Inspectors► Lenders► Attorneys
Slide 28 of 37We List Homes, Too!● More people see your home► Premium placement on Redfin.com► Mobile apps target on-the-go buyers► Professional flyers● You’ll know it all at every step► Email all buyers who see your home► See how many people have viewed your home► Advise you at every step in the process
Slide 30 of 37Review Your Financial SituationTo Buy or Not to Buy● 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
Slide 31 of 37Start Shopping for LendersCompile a list of 2-3 lenders & brokersGood sources include:● Redfins partner lenders● Referrals from friends, family & co-workers● Online review sites, such as Yelp● Local chains and offices*Know your lender
Slide 32 of 37Getting Pre-ApprovedA pre-approval letter is a letter from a bank or a lender estimatinghow much theyll lend you● Establishes what you can afford & makes offer process go faster● What’s the difference between Pre-Approval and Pre-Qualification● Good for 90 days, depending on lender● Ask for a few different amounts● Similar, yet different from pre-qualification● Redfin asks that you get pre-approved before your third tour● Are gift funds involved?● How much do you have for a down payment?Information needed:● W-2, two pay-stubs, tax returns, bank statements
Slide 33 of 37Comparing Loan Estimates● Gather loan estimates► A minimum of three, more is better► These aren’t final numbers, but within a few thousanddollars► Compare similar loans Program (FHA, conventional) Timeframe (same day)● Compare costs side-by-side► Discount & origination points► Interest rates► Insurance premiums (FHA, PMI)► APR (interest rates + fees + points + PMI)
Slide 34 of 37Local Recommended Lenders*In no way does Redfinbenefit financially fromrecommending lenders –we just think they’re greatlenders!
Slide 35 of 37Where Are Rates Headed?Type of Loan April 25, 2013 April 18, 201330-Year Fixed 3.40% 3.41%15-Year Fixed 2.61% 2.64%5/1 ARM 2.58% 2.60%1-Year ARM 2.62% 2.63%
Slide 36 of 37Make Your Decision● When possible, get a loan commitment● Make alternative funds liquid (401k, stock)Good news! Loan payments are made in arrears, so your firstloan payment won’t be for two months.
Slide 37 of 37Next Steps• Check out our agents and their reviews• Study the inventory and houses in your areas• Go out on Tour with us, no obligation• Ask a lot of questions and see a lot of houses• Email me: email@example.com• Check the events page for upcoming classes• Go back to work!