Home buying webinar december 21 2012

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  • Doug: Courtney and I update this slide to reflect the agent who is presenting and their team.
  • Home buying webinar december 21 2012

    1. 1. Home Buying 101 Webinar December 19, 2012 Presented By: Joe Krupsaw Redfin’s DCTeamSlide 1 of 27
    2. 2. 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 ● The right home for the right price ● No obligation ● Get back a portion of our commissionSlide 2 of 27
    3. 3. To Buy or Not to BuySlide 3 of 27
    4. 4. Why 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 paymentSlide 4 of 27
    5. 5. Why 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 securitySlide 5 of 27
    6. 6. Market ConditionsSlide 6 of 27
    7. 7. Case-Shiller: DC Area v. 20-City 300.00 250.00 200.00 150.00 100.00 50.00 0.00Slide 7 of 55
    8. 8. Case-Shiller – By the Numbers Case-Shiller: DC Area Up 4.3% year-over-year Peak was May 2006 Down 22.7% from peak Currently at August 2004 prices Case-Shiller: 20-City Composite Up 2% year-over-year Peak was July 2006 Down 29.4% from peak Currently at September 2003 pricesSlide 8 of 27
    9. 9. Where to find data…Slide 9 of 27
    10. 10. Multiple Offer Situations This occurs when inventory is down and buyer interest is up 5 Tips for Winning in a Bidding War 1. Make the competition eat your dust 2. Get pre-approved with a local lender & get underwriter approval 3. Start the conversation early 4. Write a letter & appeal to the seller 5. Know your limitsSlide 10 of 27
    11. 11. National Market Trends ● The key metrics across 19 major metropolitan markets are: ► October home sales were up 21.8% from a year ago, with an unusual 9.8% gain from September to October. ► Home prices in October increased 8.4% year over year, and were up just 0.4% month over month. ► The number of homes for sale declined 29.4% from October 2011 to October 2012 (even larger than the 28.1% drop in September), and declined by 5.3% since September. ► The percentage of listings that sold within 14 days of their debut inched up to 28.2% in October.Slide 11 of 27
    12. 12. What Happens After You Find a Home You Love?Slide 12 of 27
    13. 13. 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?Slide 13 of 27
    14. 14. Traditional vs. RedfinSlide 14 of 27
    15. 15. Make Sure He’s a Good Fit See all deals & reviewsSlide 15 of 27
    16. 16. Redfin’s Partner Program Partner agents are employed by other brokerages, but have teamed up with us to provide Redfin-Certified service to a wider range of customers. 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 demand We survey all partner agent clients ► All surveys are published on their Redfin page ► 97% of customers would recommend Redfin partnersSlide 16 of 27
    17. 17. Open Book ● Redfin Certified Providers ● Every professional is reviewed and all reviews are shown ● Search for local: ► Inspectors ► Lenders ► Title CompaniesSlide 17 of 27
    18. 18. We 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 processSlide 18 of 27
    19. 19. MortgagesSlide 19 of 27
    20. 20. Getting Pre-Approved A pre-approval letter is a letter from a bank or a lender estimating how much theyll lend you ● Establishes what you can afford & makes offer process go faster ● Good for 90 days, depending on lender ● Ask for a few different amounts ● Redfin asks that you get pre-approved before your third tour ● Similar, yet different from pre-qualification Information needed: ● W-2, two pay-stubs, tax returns, bank statementsSlide 20 of 27
    21. 21. Organize Your Assets ● Get ready for the down payment ● Cash accounts (liquid funds) ● 401k, stocks, other investments ● Gift funds? (max. allowed varies) ● Move funds around earlySlide 21 of 27
    22. 22. Review Your Debt ● Pull credit report, look for errors ● 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 ● Co-borrower will need to do the sameSlide 22 of 27
    23. 23. Start Shopping for Lenders Compile a list of 3-4 lenders & brokers Good sources include: ● Redfins partner lenders ● Referrals from friends, family & co-workers ● Banks or credit unions you have accounts at ● A large, national bank with an advertised rate ● Your real estate agent ● Online review sites, such as YelpSlide 23 of 27
    24. 24. Current Average Rates Type of Loan November 29, 2012 December 6, 2012 30-Year Fixed 3.32% 3.34% 15-Year Fixed 2.64% 2.67% 5/1 ARM 2.72% 2.69% 1-Year ARM 2.56% 2.55%Slide 24 of 27
    25. 25. Comparing Loan Estimates ● Gather loan estimates ► A minimum of three, more is better ► These aren’t final numbers, but within a few thousand dollars ► 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 25 of 27
    26. 26. Make Your Decision ● When possible, get a loan commitment ● 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.Slide 26 of 27
    27. 27. Next 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: joe.krupsaw@redfin.com • Check the events page for upcoming classes • Go back to work!Slide 27 of 27

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