Home Buying Class - Portland - July 21, 2011

  • 103 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
103
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
1
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • Redfin refunds 50% of the buyer’s agent commissionApplied to closing costsRemainder paid as a check within 10 days of closingRefund is tax-freeMinimum Redfin fee: $6,000
  • 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.”
  • Address in here how your agent fights for you in negotiations
  • You should not be reading all of these. Pick you top three and chat about those.
  • You should add your own key take aways for this and every class

Transcript

  • 1. Redfin’s Home Buying Class July 21, 2011 Portland, OR
  • 2. Agenda Considering… • Market Conditions • How to Search for a Home Looking… • Working with Redfin • Finding a Redfin Agent • Pre-approval Break! Buying… • Mortgages • Short Sales and Bank Owned • The Offer and the DealConsidering… Looking… Buying…
  • 3. Market Conditions
  • 4. Case-Shiller: Portland v. 20-City250.00 Case-Shiller: Portland Area Down 7.0% year-over-year200.00 Peak was July 2007 Down 28.3% from peak Currently at October 2004 prices150.00100.00 Case-Shiller: 20-City Composite Down 3.3% year-over-year Portland Area 50.00 Peak was July 2006 20-City Composite Down 32.6% from peak Currently at April 2003 prices 0.00Considering… Looking… Buying…
  • 5. # of Homes Sold in May: 788 in Multnomah County1,2001,000 800 600 400 200 -19% Y-o-Y change 7% M-o-M change -
  • 6. # of Listings in April: 4,618 in Multnomah County8,0007,0006,0005,0004,0003,000 -38% Y-o-Y change2,000 -0% M-o-M change1,000 -
  • 7. Months of Supply as of April: 6.8 Months in Greater PDX Area25.0 -3% Y-o-Y change20.0 -6% M-o-M change15.010.0 Multnomah County Months of Supply 5.0 6-2011: it would take 6.8 months to sell all the inventory if there were no new listings. 6-2010: 7.3 months of supply -
  • 8. Portland Area ForeclosuresArea Foreclosures Average Price % of HomesPortland 4,309 $178,194 0.13%Multnomah County 3,949 $167,192 0.15%Oregon 22,467 $169,264 0.16%Nationally 1,638,055 $177,569 0.17%Considering… Looking… Buying…
  • 9. What Does This Mean For You? • Rates are strong: 4.875% (week of February 14) • Home values have dropped: • Nationally: • -3.3% year-over-year • -32.6% since peak April 2006 • Portland: • -7.0% year-over-year • -28.3% since peak May 2007 Peak Price/Rate* Portland (-28%) Price $400,000 $288,000 Rate 6.26% 4.50% Payment $2,465 $1,459The peak represented is for Portland, May 2007 per Case-Shiller, national rate quoted per Freddie Mac
  • 10. How to Search for a Home
  • 11. Why Redfin’s Search is Better • 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 homesConsidering… Looking… Buying…
  • 12. Searching on Redfin Find open Redfin’s houses Forums Exclude Search short recent sales sales Download to ExcelConsidering… Looking… Buying…
  • 13. Home Details Page Add to Different Favorites History of the map views Local school property info Neighborhood area pricing Mortgage Calculator
  • 14. Add Homes to Your Favorites List Order by price, listing date, etc See your notesConsidering… Looking… Buying…
  • 15. Working with RedfinWorking with Redfin
  • 16. Working With Redfin is Different Service • Advocates: client-satisfaction bonuses, not commissions • Transparency: informed decisions • Best Agents: The right home for the right price No obligation • Switch Redfin agents • Pause and re-start your search any time Refund • You get up to 50% the commission (except in Oregon!) The Best Results • Service: 97% would recommend us to a friendConsidering… Looking… Buying…
  • 17. How Commissions WorkConsidering… Looking… Buying…
  • 18. How Our Team Works Agent •Responsible for your Field Agents success •Writes your offer •Takes you on •Handles inspection home tours •Handles negotiations •Attends inspections You Coordinator •Schedules tours •Works on escrow •Prepares paperworkConsidering… Looking… Buying…
  • 19. Find a Home to TourConsidering… Looking… Buying…
  • 20. Schedule a Tour or Add More HomesConsidering… Looking… Buying…
  • 21. Now You are Ready to Tour • Up to six homes per tour in two hour blocks • Go on as many tours as you would like • Led by field agent • No commitmentConsidering… Looking… Buying…
  • 22. Finding a Redfin Agent
  • 23. How to Find Our AgentsConsidering… Looking… Buying…
  • 24. Pick Your Area to Find Local Redfin AgentsConsidering… Looking… Buying…
  • 25. Make Sure He’s a Good Fit Click here when you decide Team members & roles See all deals & reviewsConsidering… Looking… Buying…
  • 26. What 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?Considering… Looking… Buying…
  • 27. Get Pre-Approved • A pre-approval letter is a letter from a bank or a lender estimating how much theyll lend a borrower • Help you establish how much you can afford and makes offer process go faster • Information needed: • W-2, two pay-stubs, tax returns (get them ready), bank statements • The process only takes a few days while banks get everything verified • The approval is good for 90 days, depending on lender • Ask for a few different amounts • Redfin asks that you get pre-approved before your third tourConsidering… Looking… Buying…
  • 28. Break!
  • 29. Mortgages
  • 30. Local Recommended Lenders *In no way does Redfin benefit financially from recommending lenders – we just think they are great lenders!Considering… Looking… Buying…
  • 31. Organize Your Assets • Get ready for the down payment • Cash accounts (liquid funds) • 401(k), stocks, other investments • Gift funds? (Max. allowed varies) • Move funds around before you start shoppingConsidering… Looking… Buying…
  • 32. Review Your Debt • Pull credit report, look for errors • Figure out how much monthly income goes towards paying off debt: 28 – 33% healthy • Pay down balances to 1/3rd of credit available • Don’t open any new lines of credit • Don’t buy any big ticket items • Co-borrower will need to do the sameConsidering… Looking… Buying…
  • 33. Current Average Rates Type of Loan July 7, 2011 July 14, 2011 30-Year Fixed 4.60% 4.51% 15-Year Fixed 3.75% 3.65% 5/1 ARM 3.30% 3.29% 1-Year ARM 3.01% 2.95%Considering… Looking… Buying…
  • 34. Comparing GFE Results • Gather Good Faith Estimates (loan quotes) • A minimum of three, more is better • 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)Considering… Looking… Buying…
  • 35. Make Your Decision • When possible, get a loan commitment • Lock your interest rate (30 - 60 days) • Make alternative funds liquid (401k, stock) Good news! Loan payments are made in arrears, so your first loan payment won’t be for two months. You’ll have one month of no payments.Considering… Looking… Buying…
  • 36. Short-Sales & Bank Owned
  • 37. 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)Considering… Looking… Buying…
  • 38. What if I want to buy a Short Sale? • Tour short sales with Redfin • If you want to buy, Redfin refers you to a short sale partner agent • Redfin partner agents work for other brokerages but share Redfin’s commitment to customer service • Get a 15% commission refundConsidering… Looking… Buying…
  • 39. 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 • Contract often requires early release of earnest moneyConsidering… Looking… Buying…
  • 40. So…Where’s the Best Deal? • Bank-owned & short-sales myths – • Always the best deal? • Banks are stingy • Not a fire sale • Your best bet for a good deal: • Sellers who own their home outright • Sellers who are relocating • Estate Sales • Short Sales with hardship packagesConsidering… Looking… Buying…
  • 41. The Offer & The Deal
  • 42. Tour homes Get pre-approved Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations Success! Mutual Acceptance Earnest money [Within 3 days]Overview of a Inspection contingency [5-10 days]Purchase Title review [5 days] Financing contingency [20-25 days] Waiting for loan approval Escrow signing appointment Closing! Get keys and take possession! Receive Redfin refund Complete Redfin survey
  • 43. Your Agent Negotiates Deal• Researches seller • Reviews agent-only comments • Contacts listing agent • Studies sellers situation and motivations• Discusses with you • Provides a comparative market analysis? • Where do you want to end up? • Where do you want to start?• Crafts Offer to Purchase • Inspection contingency • Financing contingency• Submits offer• Negotiates terms
  • 44. Home Inspection Hints Watch out for: Look for and Check: •Galvanized steel pipes •Chimney sweep fireplace •Double-paned windows •Knob and tube wiring inspection •Well ventilated attic •Cracks in foundation •Check all included •Sewer Line Inspection appliances •Mold, mildew or signs of •Check water pressure leaking near walls or floorsConsidering… Looking… Buying…
  • 45. So What Now? • Make sure it’s the right time for you • Get pre-approved & look for a lender • Search for homes & start touring • Find the right agent • Make an offer & close the dealConsidering… Looking… Buying…
  • 46. After Class… Please fill out the survey we’ll send this week along with this slide deck. We’d love to get your feedback on how the class could improve. To get even more info on the home buying process, check out our home buying guide: http://redfin.com/home-buying-guideConsidering… Looking… Buying…
  • 47. Appendix:•Tips for Touring•Important forms/contracts•Favorite Real Estate Resources
  • 48. Tours: Top-Ten Tips 1. Bring a camera and a notebook 2. Bring a (handy) friend 3. Bring a tape measure 4. Keep your thoughts to yourself 5. Visit during the day 6. Check under oddly placed furniture 7. Check the bathrooms for rot and mold 8. Look for wavy or discolored siding 9. When sharing a wall, make sure its thick 10. Be wary of signing a guest registerPrint out our checklist for your next home tour: http://p1.rfimg.us/static-images/images/text/redfin_home_tour_worksheet.pdf
  • 49. HUD Settlement Statement
  • 50. Favorite Real Estate Links • Property Information • PropertyShark: Zoning data, title history, permits, neighborhood data; navigation is clunky • Neighborhood Information • WalkScore: Proximity to points of interest • Trulia Heat Maps: Median prices across a county
  • 51. Favorite Real Estate Links: Listings • Redfin: MLS + FSBO + REO, updated every 15 minutes, with DOM, price history, Zestimate • craigslist: Major FSBO source that Redfin cant crawl • HotPads: Foreclosure heat maps • Brokerage site of listing agents: more photos of the listing • RealtyTrac: Foreclosure market detail, subscription required for full reports
  • 52. Favorite Real Estate Links: Pricing Data • Case-Schiller Indices: Pricing trends by metropolitan area • HouseMath: Compares a housing investment to a stock market investment • Altos Research: Median price trends and days on market by city, but some complain data is unreliable • MSN Home Affordability Calculator: Based on your income & credit score • SmartMoneys Home Buying Worksheet: Similar to the MSN calculator, but requires more info
  • 53. Favorite Real Estate Links: Mortgage • Bankrate: Many ads, but is great for comparing local lenders • Zillows Mortgage Marketplace Help Center: Articles mortgage rates, types of mortgages, credit reports, and a series of mortgage calculators • The Mortgage Professor: Bare bones information on mortgages, definitions of common terms, myriad of mortgage calculators • HUD FHA page: Most reliable explanation of FHA loans, good site for first-time buyers
  • 54. Favorite Links • Loans for First-Time Home-Buyers • Federal Housing Administration (FHA) • Fannie Mae and Freddy Mac • CalHFA: California State agency that helps certain buyers • Government Sites • Federal Trade Commission: Articles & alerts for home-buyers. • Dept. of Justice: Role of competition in real estate
  • 55. Favorite Links Cont. • Remodeling & Renovations • DoItYourself.com: A few ads, but a useful clearinghouse of information on remodeling • National Association of Home Builders (NAHB): Articles on remodeling your home, most are good • What to Look for in an Inspection • American Society of Home Inspectors (ASHI): Good consumer FAQ & virtual home inspection