Redfin’s Home Buying Class
Redfin’s Inland San Diego Team
November 21, San Diego, CA
● Overview of the process
● Are you ready to buy?
● Understanding the market
● Never miss a home
● Choosing an agent
● 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
Overview of a Buying a Home
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?
Where Is the Market Headed?
● Supply of homes is at a five-year low and may not increase
much more this year
● Rents have been rising, making buying more attractive
● Market stabilized – price increases in many areas
● Rate increases – biggest potential issue for buyers
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● IMPORTANT! Be sure to go in to any New
Home Office with your agent
● Verify Options and upgrade pricing
● Changes to home
● Property Inspection
● Check builders reputation
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
Victoria Mazon– Agent
● Lives in La Mesa
● Services: Santee, Poway, Scripps
Ranch, Lakeside, Ramona, Rancho
Penasquitos, Rancho Bernardo
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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
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San Diego Inland Team’s
Laura Byrne Joni Philips
Making the Most of Your Tour
1. Bring a camera, notebook & tape measure
2. See how much sunlight the place gets
3. Take stock of storage space
4. Turn off any music playing in house
5. Check for hardwood floors
6. Ignore the appliances and carpets
7. Check the closets
Local Recommended Lenders
In no way does
lenders – we just
think they’re great
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
Where Are Rates Headed?
Type of Loan May 8, 2014 February 20, 2014
30-Year Fixed 4.21% 4.37%
15-Year Fixed 3.32% 3.39%
5/1 ARM 3.05% 3.05%
1-Year ARM 2.43% 2.52%
Types of Loans
► As low as 5% down
► Fixed or adjustable rates, conforming or non-conforming
● Federal Housing Administration Loan (FHA):
► Always have mortgage insurance
► Buyers need only a 3.5% down payment
● VA Guaranteed Loan:
► Veterans, active duty personnel, reservists/national guard, surviving
► No down payment
● Ask your lender if they have special loan programs
► Example: BB&T Chips Program
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
10 mins 5 mins End
Let’s Get Started!
Anthony Palomarez– Agent
● Lives in North Escondido
● Services: Escondido, Fallbrook,
Poway, Valley Center, San Marcos,
Ramona, Rancho Bernardo
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:
►Long response times
►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
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:
Tips for Winning a Bidding War
1. Just win, baby! Simply have the best offer.
► Cash is King (deposit, down payment)
► Tighten your timelines
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 1-3%+
● Inspection – approximately $500
● Other inspections – sewer scope, septic, etc.
● Title review
● Loan approval
● Document signing
● Walk through
● Receive your keys!
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
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
● Appraisal – Performed in conjunction with financing
What is Escrow?
● Escrow is a third party intermediary that represents neither the buyer nor the
● What do they do?
● Hold the earnest money
● Arrange for payoff of any liens (seller’s mortgage, utilities, etc.)
● Coordinate the signing appointments for all parties
● Receive and disburse funds for closing
● Arrange to notify county offices to change ownership
What is title?
● 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
● 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
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
Thanks for Coming!
Questions? Get in touch:
Reina Acuna firstname.lastname@example.org
Anthony Palomarez email@example.com
Victoria Mazon firstname.lastname@example.org
Jeremy Paul email@example.com
Check out our upcoming classes: