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Redfin’s Home Buying Class
Redfin Far West Suburbs
January 16, 2014
Naperville, IL

Hosts: Konrad Rodak and Jennifer Ilic
...
Konrad Rodak

Jennifer Ilic

● Lives in Naperville

● Lives in Woodridge

● Services Naperville, Plainfield,
Aurora, Glen ...
Agenda
●
●
●
●
●
●
●
●
●
●
●

Overview of the process
Are you ready to buy?
Understanding the market
Never miss a home
Cho...
A Little Bit About Who We Are
Redfin is a real estate brokerage that has helped over 20,000
people buy or sell a home; 97%...
Understanding the Buying
Process
Are You Ready to Buy?
●
●
●
●

Do you have a family and need room to grow?
Do you expect to own the home for 5 or more yea...
Overview of a Purchase
Research

Search

Offer

Closing

Neighborhoods

Define Preferences

Comparables

Earnest Money

Re...
Understanding the
Market
Naperville- Statistics for Houses
Naperville Inventory
Naperville Overview
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
...
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...
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.
2.
3.
4.
5.
6.
7.
8.

Bring a camera, notebook & tape measure
See how much sunlight the pl...
How Touring with Redfin Works
● Led by agent or associate
agent
● Up to six homes per tour in
two hour blocks
● Go on as m...
Mortgages
Peter E. Georgitsis
Peoples Home Equity,
Inc.
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
Peoples Home Equity, Inc.
•Services: Lending
•Location:2100 Clearwater Dr, #140
•Mobile:630-854-...
Break!
Konrad Rodak

Jennifer Ilic
10-Minute Break

10 mins

5 mins

Let’s Get Started!

End
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...
Ratification to Closing
Steps After Contract Ratification
●
●
●
●
●
●
●
●
●
●
●

Earnest money deposit – usually 1-3%+
Inspection – approximately ...
Home Inspection
We recommend that you have a home inspection
● Cost runs $350 to $1200 depending upon the home’s size
● Yo...
What are Contingencies?
This means the seller has accepted an offer on the
property, but success may still depend on passi...
Title Companies
●
●
●
●
●

Holds the earnest money deposit
Prepares the final documents, including the HUD-1
Conducts the ...
Closing: HUD–1 Settlement
Walkthrough & Closing
A day or two prior to closing you will do a walkthrough to make
sure the property is in the agreed u...
Selling Your Home
with Redfin
Better Service, Lower Fees
● We’re on your side
► Agents paid on your satisfaction
● Double your exposure
► Premium placem...
All Done!
So What Now?
●
●
●
●
●
●
●

Make sure it’s the right time for you
Start browsing online
Check out our Home Buying Guide
Fi...
Future Events!
Thanks for Coming!
Questions? Get in touch:
Konrad Rodak
Jennifer Ilic

konrad.rodak@redfin.com
jennifer.ilic@redfin.com

...
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Far west1.16.14

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  • [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
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  • 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.”
  • 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!
  • [OPTIONAL]
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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.
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  • Transcript of "Far west1.16.14"

    1. 1. Redfin’s Home Buying Class Redfin Far West Suburbs January 16, 2014 Naperville, IL Hosts: Konrad Rodak and Jennifer Ilic @Redfin facebook.com/Redfin
    2. 2. Konrad Rodak Jennifer Ilic ● Lives in Naperville ● Lives in Woodridge ● Services Naperville, Plainfield, Aurora, Glen Ellyn and Wheaton ● Services Naperville, Wheaton, Glen Ellyn, Plainfield and Aurora ● Been an agent for 4 years ● Been an agent for 5 years ● Specializes in helping 1st time home buyers ● Specializes in short sales and foreclosures  Meet our team!
    3. 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. 4. A Little Bit About Who We Are Redfin is a real estate brokerage that has helped over 20,000 people buy or sell a home; 97% would refer us to a friend. ● Customers, not commissions ● Informed decisions ● Right home for the right price  No obligation  Commission credit
    5. 5. Understanding the Buying Process
    6. 6. Are You Ready to Buy? ● ● ● ● Do you have a family and need room to grow? Do you expect to own the home for 5 or more years? Have you saved up a down payment? Can you rent for less?
    7. 7. Overview of a Purchase Research Search Offer Closing Neighborhoods Define Preferences Comparables Earnest Money Real Estate Agents Saved Search Draft Offer Docs Inspection Mortgage Options Home Tours Negotiate Loan application Preapproval Open Houses Mutual Acceptance Title Review Consider your needs Appraisal Financing Approval Closing
    8. 8. Understanding the Market
    9. 9. Naperville- Statistics for Houses
    10. 10. Naperville Inventory
    11. 11. Naperville Overview
    12. 12. Never Miss A Home
    13. 13. 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
    14. 14. Never Miss a Home
    15. 15. Choosing the Right Agent
    16. 16. 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?
    17. 17. Redfin Agent Reviews
    18. 18. 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
    19. 19. Seeing Homes in Person
    20. 20. Making the Most of Your Tour 1. 2. 3. 4. 5. 6. 7. 8. Bring a camera, notebook & tape measure See how much sunlight the place gets Check the bathrooms for rot & mold Look for wavy or discolored wood siding Make sure water spouts drain away from house Take stock of storage space Turn off any music playing in house Check for hardwood floors 9. 10. 11. 12. 13. 14. 15. Peek into the attic Bring a marble or two When sharing a wall, make sure it’s thick Ignore the appliances and carpets Check the closets Get the disclosure packet Compare the property’s tax records to the listing details
    21. 21. 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 Slide 23 of 55
    22. 22. Mortgages Peter E. Georgitsis Peoples Home Equity, Inc.
    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. 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
    27. 27. Local Recommended Lenders Peoples Home Equity, Inc. •Services: Lending •Location:2100 Clearwater Dr, #140 •Mobile:630-854-7811 •Email:Peter@Peter@peopleshomeequity.com way does *In no •Link:www.peterhomeequity.com Redfin benefit Peter Georgitsis Peter Georgitsis's Recent Reviews financially from recommending lenders – we just think they’re great lenders! $462K Townhouse Buyer (Closed) May 9, 2012 CHICAGO, IL [Wrigleyville / Lakeview] From the moment Peter took our application he was completely engaged in our loan. He took the time to walk us through multiple options, letting us decide which was best for our situation. Most importantly, he was able to follow through on his promises from the application and complete our mortgage with the terms we agreed upon. Throughout the process he made himself very available and responded to all of our questions in a timely fashion.
    28. 28. Break! Konrad Rodak Jennifer Ilic
    29. 29. 10-Minute Break 10 mins 5 mins Let’s Get Started! End
    30. 30. Short Sales and Bank Owned
    31. 31. 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
    32. 32. 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
    33. 33. Making an Offer
    34. 34. 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
    35. 35. 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
    36. 36. Ratification to Closing
    37. 37. Steps After Contract Ratification ● ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 1-3%+ Inspection – approximately $500 Other inspections – radon, lead etc. Loan application – 7days or less Title review Appraisal Loan approval Document signing Walk through Closing Receive your keys!
    38. 38. 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
    39. 39. 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
    40. 40. Title Companies ● ● ● ● ● Holds the earnest money deposit Prepares the final documents, including the HUD-1 Conducts the closing Receive and disburse funds for closing Arrange for pay off of any liens (sellers’ mortgage, taxes, etc) ● 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
    41. 41. Closing: HUD–1 Settlement
    42. 42. Walkthrough & Closing A day or two prior to closing you will do a walkthrough to make sure the property is in the agreed upon condition At closing you will sign all necessary mortgage and closing documents and get your keys!
    43. 43. Selling Your Home with Redfin
    44. 44. Better Service, Lower Fees ● 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.
    45. 45. All Done!
    46. 46. 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
    47. 47. Future Events!
    48. 48. Thanks for Coming! Questions? Get in touch: Konrad Rodak Jennifer Ilic konrad.rodak@redfin.com jennifer.ilic@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events
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