Redfin’s Home Buying Class
Redfin’s Far North/Northwest Team
September 17th, 2013 Chicago
Follow: @RedfinChicago
Like: htt...
Clayton Jirak– Redfin Agent
● Lives in the Ravenswood Neighborhood, North side- 60640
● Specializes in helping my clients ...
“Clayton was a pleasure to work with and helped us
through a difficult sales process. He was very
responsive and worked th...
Paul Yambrovich – Redfin Agent
● Been in the business for over 25 years
● Specializes in single-family homes, townhomes &
...
Liz Palomar – Redfin Agent
● Lives in Portage Park- since 2009
● Born and raised in Lincoln Square
● Been an agent since 2...
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....
Awesome Redfin Clients!
Meet Can Canver and Veronica Hampton
At the closing- getting keys! Their new home in the
Avondale ...
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...
Buying a Home
Talk to Lender
Search Homes
Negotiate Offer to Contract
Attorney Review – 5 bus. days
Inspection – 5 bus. da...
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
Case-Shiller: Chicago Area v. 20-City
0.00
50.00
100.00
150.00
200.00
250.00
Chicago Area
20-City Composite
Case-Shiller – By the Numbers
Chicago Area
Up 9.3% year-over-year
Peak was September 2006
Down 32.6% from peak
As of April...
Story of 2013: Low Inventory
Story of 2013: Rising Prices
Chicago Area Overview
Current Average Rates
Type of Loan September 5, 2013 September 12, 2013
30-Year Fixed 4.57% 4.57%
15-Year Fixed 3.59% 3.59...
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...
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 31 of 55
How Touring with Redfin Works
● Led by agent or associate
agent
● Up to six homes per tour in
two hour bloc...
10-Minute Break
10 mins 5 mins End
Let’s Get Started!
Mortgages
Daryn Peterson – Wintrust Mortgage
Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly payment
● Figu...
Get Pre-Approved Early
A pre-approval letter is a letter from a bank or a lender estimating
how much they'll lend you
● Es...
Pulling Credit: Is It Harmful?
● Your credit report must be reviewed by a lender before you
can obtain a pre-approval
● If...
Start Shopping for Lenders
Compile a list of 3-4 local lenders
Good sources include:
● Redfin's partner lenders
● Referral...
Local Recommended Lenders
In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re grea...
Jason Schram – Real Estate Attorney
What does an attorney do on a
real estate transaction?
•Contract review – make sure contract comports with client’s
intere...
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
► ...
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 3% to 5%
● Inspection Contingency – approximately $350 to ...
Home Inspection
● We recommend that you have a home inspection
● About $350 to $600
● Ask Potential Inspectors;
Are you Li...
Home Inspection Hints
•Double-paned windows
•Well ventilated attic•Electrical system
•Mold, mildew or signs of
leaking nea...
Title Companies
● Prepares the final documents, including the HUD-1
● Conducts the closing
● Examines and clears the title...
Signing and Closing
● You’ll have a final walk-through on closing
day or just before
● What to bring:
► Government issued ...
Selling Your Home
with Redfin
● We’re on your side
► Agents paid on your satisfaction
● Double your exposure
► Premium placement on Redfin
► Zillow, Tru...
So What Now?
● Make sure it’s the right time for you
● Start browsing online
● Check out our Home Buying Guide
● Find the ...
All Done!
Thanks for Coming!
Questions? Get in touch:
Chris Chesne chris.chesne@redfin.com
Clayton Jirak clayton.jirak@redfin.com
Ch...
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Redfin's Free Home Buying Class- Chicago

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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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  • Nate
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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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  • 5 minute break timer.To begin the timer, when in presentation view on the slide, click advance once and you will see the red appear from left to right. When the entire bar is red your break is up!
  • [REQUIRED]Add Lender’s name if he/she’s presenting
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  • [REQUIRED – Update with local lender]
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  • [Required]Add visual
  • Required
  • 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's Free Home Buying Class- Chicago

    1. 1. Redfin’s Home Buying Class Redfin’s Far North/Northwest Team September 17th, 2013 Chicago Follow: @RedfinChicago Like: http://www.facebook.com/RedfinChicago
    2. 2. Clayton Jirak– Redfin Agent ● Lives in the Ravenswood Neighborhood, North side- 60640 ● Specializes in helping my clients find the perfect home, especially new home buyers and 1st time buyers in Chicago ● Been in real estate for several years mostly with Redfin Chicago ● Originally from Seattle, but lived in Chicago for almost 10 years
    3. 3. “Clayton was a pleasure to work with and helped us through a difficult sales process. He was very responsive and worked through the weekend to ensure we got the property we wanted”….Buyer that closed in May “I asked a million questions and Clayton always took the time to answer then, no matter how busy he was. He provided great in-site and support for myself, a first time home buyer”…Buyer that close in June Words from my clients:
    4. 4. Paul Yambrovich – Redfin Agent ● Been in the business for over 25 years ● Specializes in single-family homes, townhomes & condos on the north side of the city ● Marketed 17 new construction/conversion projects from 12 units up to 200 units
    5. 5. Liz Palomar – Redfin Agent ● Lives in Portage Park- since 2009 ● Born and raised in Lincoln Square ● Been an agent since 2010 ● Specializes in providing good tour insight and customer service
    6. 6. Agenda ● Overview of the process ● Are you ready to buy? ● Understanding the market ● Never miss a home ● Choosing an agent ● Touring ● Break! ● Mortgages ● Retaining an Attorney ● Short sales & foreclosures ● Making an offer ● Acceptance to closing
    7. 7. 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
    8. 8. Awesome Redfin Clients! Meet Can Canver and Veronica Hampton At the closing- getting keys! Their new home in the Avondale neighborhood
    9. 9. Save $4,000 on Average
    10. 10. Understanding the Buying Process
    11. 11. 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
    12. 12. Buying a Home Talk to Lender Search Homes Negotiate Offer to Contract Attorney Review – 5 bus. days Inspection – 5 bus. days Loan Commitment – ~30 days - - - - - - - - - - - - - - - - Home-Sale/Close contingency Other inspection contingencies Contingency Periods Appraisal Final Walkthrough Closing Redfin Rebate…
    13. 13. 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?
    14. 14. Understanding the Market
    15. 15. Case-Shiller: Chicago Area v. 20-City 0.00 50.00 100.00 150.00 200.00 250.00 Chicago Area 20-City Composite
    16. 16. Case-Shiller – By the Numbers Chicago Area Up 9.3% year-over-year Peak was September 2006 Down 32.6% from peak As of April 2013, selling at June 2001 prices, but also mid- 2010 prices Case-Shiller: 20-City Composite Up 12.1% year-over-year Peak was July 2006 Down 26.2% from peak As of April, 2013, at January 2004 prices
    17. 17. Story of 2013: Low Inventory
    18. 18. Story of 2013: Rising Prices
    19. 19. Chicago Area Overview
    20. 20. Current Average Rates Type of Loan September 5, 2013 September 12, 2013 30-Year Fixed 4.57% 4.57% 15-Year Fixed 3.59% 3.59% 5/1 ARM 3.28% 3.22% 1-Year ARM 2.71% 2.67%
    21. 21. 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
    22. 22. Never Miss A Home
    23. 23. 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
    24. 24. Never Miss a Home
    25. 25. Choosing the Right Agent
    26. 26. 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?
    27. 27. Redfin Agent Reviews
    28. 28. 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
    29. 29. Seeing Homes in Person
    30. 30. 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
    31. 31. Slide 31 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
    32. 32. 10-Minute Break 10 mins 5 mins End Let’s Get Started!
    33. 33. Mortgages
    34. 34. Daryn Peterson – Wintrust Mortgage
    35. 35. 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
    36. 36. 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
    37. 37. 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
    38. 38. Start Shopping for Lenders Compile a list of 3-4 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
    39. 39. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    40. 40. Jason Schram – Real Estate Attorney
    41. 41. What does an attorney do on a real estate transaction? •Contract review – make sure contract comports with client’s interests and expectations •Facilitate, expedite and manage disclosures, riders, requests for information between parties •Negotiate, draft and advocate pre-closing matters, i.e. inspection items, tax prorations, contingencies and condominium issues •Counsel and advise on mortgage issues/documents •Attend closing - review mortgage, seller and title documents
    42. 42. Short Sales and Bank Owned
    43. 43. 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
    44. 44. 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
    45. 45. Making an Offer
    46. 46. 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
    47. 47. 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
    48. 48. Acceptance to Closing
    49. 49. Steps After Mutual Acceptance ● Earnest money deposit – usually 3% to 5% ● Inspection Contingency – approximately $350 to $600 ● Other inspections – radon, sewer scope, etc. ● Attorney Review Contingency ● Financing Contingency ● Loan application and appraisal ● Loan approval ● Walk through ● Closing ● Receive your keys! ● …and Redfin rebate…
    50. 50. Home Inspection ● We recommend that you have a home inspection ● About $350 to $600 ● Ask Potential Inspectors; Are you Licensed?  idfpr.gov ► Are you Insured? ► Do you use Thermal Imaging? ► Will you Walk the Roof? ► Will your Inspection Report include Pictures? ► What do you charge for the Inspection?
    51. 51. Home Inspection Hints •Double-paned windows •Well ventilated attic•Electrical system •Mold, mildew or signs of leaking near walls or floors •Check water pressure •Plumbing System •Fireplace inspection •Safety Items •Check for Radon •Check all included appliances Watch out for: Look for and Check:
    52. 52. 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
    53. 53. Signing and Closing ● You’ll have a final walk-through on closing day or just before ● What to bring: ► Government issued photo ID ► Certified check or wired funds ● Closing typically takes 1.5 to 3 hours, but can run longer ● Get keys and take possession! ● Receive Redfin Rebate in about a week
    54. 54. Selling Your Home with Redfin
    55. 55. ● 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
    56. 56. 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 ● Complete the Survey
    57. 57. All Done!
    58. 58. Thanks for Coming! Questions? Get in touch: Chris Chesne chris.chesne@redfin.com Clayton Jirak clayton.jirak@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

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