[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.
[OPTIONAL – cut or skip this slide if not relevant for your market or class]
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
[REQUIRED – Update with local lender]
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
Redfin’s Home Buying Class
Redfin’s Far North/Northwest Team
September 17th, 2013 Chicago
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
“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
“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:
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
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
● Overview of the process
● Are you ready to buy?
● Understanding the market
● Never miss a home
● Choosing an agent
● Retaining an Attorney
● Short sales & foreclosures
● Making an offer
● Acceptance to closing
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
● Technology: sellers get more traffic; buyers tour homes first
● Value: a full-service brokerage that saves you thousands
Awesome Redfin Clients!
Meet Can Canver and Veronica Hampton
At the closing- getting keys! Their new home in the
Overview of a Buying a Home
Buying a Home
Talk to Lender
Negotiate Offer to Contract
Attorney Review – 5 bus. days
Inspection – 5 bus. days
Loan Commitment – ~30 days
- - - - - - - - - - - - - - - -
Other inspection contingencies
Appraisal Final Walkthrough Closing Redfin Rebate…
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?
Case-Shiller: Chicago Area v. 20-City
Case-Shiller – By the Numbers
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-
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
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%
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
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?
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
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
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
Slide 31 of 55
How Touring with Redfin Works
● Led by agent or associate
● Up to six homes per tour in
two hour blocks
● Go on as many tours
as you need
● No obligation, no
10 mins 5 mins End
Let’s Get Started!
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
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
● W-2, two pay-stubs, tax returns, bank statements
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
● Maintaining a pre-approval
has a negligible impact on
your credit score
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
Local Recommended Lenders
In no way does
lenders – we just
think they’re great
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
What is a Short Sale?
The owner owes more on the mortgage than the home is
● 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
● Redfin partner agents work for other brokerages but share
Redfin’s commitment to customer service
● Get a 15% commission refund
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
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
► Title Review
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
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
● Receive your keys!
● …and Redfin rebate…
● We recommend that you have a home inspection
● About $350 to $600
● Ask Potential Inspectors;
Are you Licensed?
► 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?
Home Inspection Hints
•Well ventilated attic•Electrical system
•Mold, mildew or signs of
leaking near walls or floors
•Check water pressure
•Plumbing System •Fireplace inspection
•Check for Radon
•Check all included
Watch out for: Look for and Check:
● 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
● Issues title insurance to the lender and the buyer
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
● 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
Better Service, Lower Fees
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
Thanks for Coming!
Questions? Get in touch:
Chris Chesne email@example.com
Clayton Jirak firstname.lastname@example.org
Check out our upcoming classes: