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  • To be updated with information from neighborhood pages on the website.
  • To be updated with information from neighborhood pages on the website.
  • To be updated with information from neighborhood pages on the website.
  • To be updated with information from neighborhood pages on the website.
  • Doug: Courtney and I update this slide to reflect the agent who is presenting and their team.

North end hbc 4.10.13 North end hbc 4.10.13 Presentation Transcript

  • Redfin’s Home Buying Class April 10, 2013 Bothell, WA Tammi Escalle: Redfin’s North End Team Follow: @RedfinSeattle Like: http://www.facebook.com/redfinseattleSlide 1 of 46
  • Agenda ● Buying process overview ● Getting ready to buy ● Searching for homes ● Mortgages ● Making an offer ● Acceptance to closing ● Short sales & REO ● Q&ASlide 2 of 46
  • 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 creditSlide 3 of 46
  • Buying Process OverviewSlide 4 of 46
  • Steps in Buying a Home 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 ClosingSlide 5 of 46
  • Understanding the MarketSlide 6 of 46
  • Story of 2013: Low InventorySlide 7 of 46
  • Story of 2013: Rising PricesSlide 8 of 46
  • Story of 2013: Trends & InsightsSlide 9 of 46
  • Story of 2013: Find It On RedfinSlide 10 of 46
  • 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 stabilizing, though likely 2-3 years before significant appreciation. ● Rate increases - biggest potential issue for buyersSlide 11 of 46
  • Choosing the Right AgentSlide 12 of 46
  • Traditional vs. RedfinSlide 13 of 46
  • Redfin Agent ReviewsSlide 14 of 46
  • How Our Team Works AGENT Responsible for your success Writes your offer Handles negotiations YOU ASSOCIATE AGENT COORDINATOR Takes you to see homes Schedules tours See 50+ homes a week Prepares paperwork Works with escrowSlide 15 of 46
  • Your Redfin CreditSlide 16 of 46
  • 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 ► If it’s in your financial advantage to work with a partner ► 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 17 of 46
  • MortgagesSlide 18 of 46
  • 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 - typically 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 ● Determine source of funds ● Current employment statusSlide 19 of 46
  • 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 ● Maintaining a pre-approval has a negligible impact on your credit score ● Don’t allow lots of lenders to pull your credit score repeatedlySlide 20 of 46
  • Start Shopping for Lenders Compile a list of 3-4 lenders & brokers Good sources include: ● Redfins partner lenders ● Referrals from friends, family & co-workers ● Online review sites, such as Yelp ● Local chains and officesSlide 21 of 46
  • Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!Slide 22 of 46
  • Getting Pre-Approved A pre-approval proves that you have the basic qualifications to obtain a mortgage. You’ll need it to make an offer. ● Establishes what you can afford ● Pre-Approval vs. Pre-Qualification ● Good for 90 days, depending on lender ● Ask for a few different amounts ● Get pre-approved before your third tour ● Are gift funds involved? ● How much do you have for a down payment? Information needed: ● W-2, two pay-stubs, tax returns, bank statementsSlide 23 of 46
  • Learn more about mortgages http://www.redfin.com/buy-a-home/classes-and-eventsSlide 24 of 46
  • Finding Your HomeSlide 25 of 46
  • Benefits of a MLS Powered Site● See all the homes for sale: 20+% more than national portals● See newly listed homes faster by 7-9 days● Over 1/3 of the homes on a portal site are no longer for sale● You see what the agent sees plus data from other sources● Real-time market data: photos, details of just-sold homesSlide 26 of 46
  • Redfin Highlights ● Search by zip code, neighborhood, school district ● Instant alerts – save your search to get a jump on new listings ● Tour Insights – get the scoop before you see a home ● Download results – crunch your own spreadsheets ● Price your home – look at sold listings and ask for help ● Forums – get advice from the Redfin community ● Resources - Home buying guide & home inspection guide Any questions about the site?Slide 27 of 46
  • TouringSlide 28 of 46
  • How Touring with Redfin Works ● Up to six homes per tour in two hour blocks ● See as many homes as you need ● One home tours are okay ● Led by a member of your team – Agent or Associate Agent ● No obligation Tip: Consider starting off with fewer homes per tour so you don’t feel rushed.Slide 29 of 55
  • Making the Most of Your Tour The Redfin agent for your tour will help you evaluate homes – pointing out both positive and negative features. Considering bringing a camera, notebook and tape measure. Wear shoes that are easy to take off/put on.Slide 30 of 46
  • Making an OfferSlide 31 of 46
  • 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 ReviewSlide 32 of 46
  • Multiple Offer Situations Tips for Winning in 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.Slide 33 of 46
  • Dig Into the Details Redfin holds classes several classes where you can learn more: ● What Happens Next? ● Multiple Offer ● Inspection ● Mortgage ● Short Sale http://www.redfin.com/buy-a-home/classes-and-eventsSlide 34 of 46
  • Acceptance to ClosingSlide 35 of 46
  • Steps After Mutual Acceptance ● Earnest money deposit – usually 1-3%+ ● Inspection – approximately $500 ● Other inspections – sewer scope, septic, etc. ● Loan application – 5 days or less ● Title review ● Appraisal ● Loan approval ● Document signing ● Walk through ● Closing ● Receive your keys!Slide 36 of 46
  • What is Escrow? Escrow is a third party intermediary that represents neither the buyer nor the seller. 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 ownershipSlide 37 of 46
  • Signing and Closing A few days before closing you will sign your closing documents and have a walk through. On closing day, you’ll probably get your keys at about 5pm.Slide 38 of 46
  • Short Sales and Bank OwnedSlide 39 of 46
  • 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 refundSlide 40 of 46
  • 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 moneySlide 41 of 46
  • So… Where’s the Best Deal? ● Sellers who own their home outright ● Sellers who are relocating ● Estate Sales ● REO & Short Sales if “Best Deal” means lowest priceSlide 42 of 46
  • Key TakeawaysSlide 43 of 46
  • So What Now? ● Make sure it’s the right time for you ● Start browsing online ● Check out our Home Buying Guide and Events page ● Find the right agent ● Look for a lender and get pre-approved ● Start seeing homes ● Make an offer & close the dealSlide 44 of 46
  • Thanks for Coming! Please fill out the survey that was handed out at the beginning of class. We appreciate the feedback! Check out our upcoming classes and events at http://www.redfin.com/buy-a-home/classes-and-eventsSlide 45 of 46
  • Our next class! New Construction Home Buying Class April 13, 2013 11:30am – 1:00pm SpringHill Suites (Same location) http://www.redfin.com/buy-a-home/classes-and-eventsSlide 46 of 46