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Redfin’s Home Buying Class
Redfin’s Pleasanton Team
January 15th, Pleasanton, CA

Host: Barry Moon
@Redfin
facebook.com/re...
Agenda
●
●
●
●
●
●
●
●
●
●
●

Overview of the process
Are you ready to buy?
Understanding the market
Never miss a home
Cho...
A Little Bit About Redfin
Redfin is a real estate brokerage on a mission to make buying
and selling a home better for you....
Save $6,000 on Average
Understanding the Buying
Process
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?
...
Overview of Buying a Home
Research

Search

Offer

Closing

Your needs

Define Preferences

Comparables

Earnest money

Th...
Understanding the Market
Current Market: Low Inventory
Current Market: Rising Prices
Livermore Area Overview
CAR Facts
Where Are Rates Headed?
Type of Loan

January 9, 2013

January 2, 2014

30-Year Fixed

3.77%

4.53%

15-Year Fixed

3.03%
...
Local Market Trends: Bay Area
November 2013: Bidding Wars

● 74.2% homes faced competition



Down from 81.7% Month-Over...
Local Market Trends: Bay Area
● % of New Listings Under Contact in 2 weeks
► November 2013: 45.8%
► October 2013: 41.9%
► ...
Local Market Trends: Bay Area
November 2013: Price Tracker
● $610,000 – Median Sale Price
► Down .8% Month-Over-Month
► Up...
What Other Trends are We Noticing?
● Good Homes are being listed strategically with low prices
► So properties are selling...
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
● Insig...
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
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...
10-Minute Break
Next up- Short Sales, REO, Offer process and closing.

10 mins

5 mins

Let’s Get Started!

End
Mortgages
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

In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re gre...
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...
Acceptance to Closing
Steps After Mutual Acceptance
●
●
●
●
●
●
●
●
●
●
●

Earnest money deposit – usually 1-3%+
Inspection – approximately $500...
What are Contingencies?
This means the seller has accepted an offer on the property,
but success may still depend on passi...
Home Inspection
We recommend that you have a home inspection
● Cost runs $350 to $1200 depending upon the home’s size
● Yo...
Title Companies
● Prepares the final documents, including the HUD-1 (visual
example of HUD-1 on next slide).
● Conducts th...
Closing: HUD–1 Settlement
Signing and Closing
A few days before closing you will sign your closing documents
and have a walk through.
On closing day...
All Done!
So What Now?
●
●
●
●
●
●
●

Make sure it’s the right time for you
Start browsing online
Check out our Home Buying Guide
Fi...
CAR Cool Facts…
Thanks for Coming!
Questions? Get in touch:
Barry Moon
barry.moon.basu@redfin.com
Check out our upcoming classes:
http://w...
Redfin Pleasanton Home Buying Class 1.15.14
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Redfin Pleasanton Home Buying Class 1.15.14

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  • [REQUIRED – please add the main presenter’s photos]
  • [REQUIRED – Update with local home in the $400-$500 range, ideally listed by Redfin]Talking points:- Refund is based on your offer price not the sales price- You’ll get it as a closing credit or check after close, depending on your lender
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED – Updated every time]
  • [REQUIRED – Updated every time]
  • [REQUIRED – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]Add visual
  • [REQUIRED]
  • [REQUIRED]
  • 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!
  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED – Update with local lender]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [Required]Add visual
  • Add visual
  • Required
  • 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.
  • We’ll stick around…
  • Transcript of "Redfin Pleasanton Home Buying Class 1.15.14 "

    1. 1. Redfin’s Home Buying Class Redfin’s Pleasanton Team January 15th, Pleasanton, CA Host: Barry Moon @Redfin facebook.com/redfin
    2. 2. 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
    3. 3. 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 advice ● Technology: sellers get more traffic; buyers tour homes first ● Value: a full-service brokerage that saves you thousands  No obligation
    4. 4. Save $6,000 on Average
    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 stay put for 5 or more years? Have you saved up a down payment? Can you rent for less?
    7. 7. Overview of Buying a Home Research Search Offer Closing Your needs Define Preferences Comparables Earnest money The market Instant Alerts Draft offer Inspection Neighborhoods Open houses Negotiate Loan application Agents Home tours Mutual acceptance Title review Mortgages Appraisal Preapproval Financing approval Closing
    8. 8. Understanding the Market
    9. 9. Current Market: Low Inventory
    10. 10. Current Market: Rising Prices
    11. 11. Livermore Area Overview
    12. 12. CAR Facts
    13. 13. Where Are Rates Headed? Type of Loan January 9, 2013 January 2, 2014 30-Year Fixed 3.77% 4.53% 15-Year Fixed 3.03% 3.55% 5/1 ARM 3.00% 3.05% 1-Year ARM 2.50% 2.56%
    14. 14. Local Market Trends: Bay Area November 2013: Bidding Wars ● 74.2% homes faced competition   Down from 81.7% Month-Over-Month Down from 79.3 Year-Over-Year ● Features of Winning Offers:     All Cash: 6.5% Waived Financing: 26.1% Waived Inspection: 17.4% Had cover letter: 60.9%
    15. 15. Local Market Trends: Bay Area ● % of New Listings Under Contact in 2 weeks ► November 2013: 45.8% ► October 2013: 41.9% ► November 2012: 41.9% ● Median Number of Days on Market Until Pending ► November 2013: 16 ► October 2013: 14 ► November 2012: 15
    16. 16. Local Market Trends: Bay Area November 2013: Price Tracker ● $610,000 – Median Sale Price ► Down .8% Month-Over-Month ► Up 10.9% Year-Over-Year ● 3,257 – Homes Sold ► Down 14.6% Month-Over-Month ► Up 5.1% Year-Over-Year ● 3,868– Homes for Sale ► Down 26.5% Month-Over-Month ► Down 7.7% Year-Over-Year
    17. 17. What Other Trends are We Noticing? ● Good Homes are being listed strategically with low prices ► So properties are selling above list price ► Base your offer price on comps & trends – NOT on list price ● Deadlines are being set to accept & review offers ► Sellers usually review offers after about 7-14 days on market ► To give property exposure and create buzz amongst buyers and urgency with the deadline. ● Some buyers are waiving their contingencies in order to make their offers more attractive to the seller
    18. 18. Never Miss A Home
    19. 19. 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
    20. 20. Never Miss a Home
    21. 21. Choosing the Right Agent
    22. 22. 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 complaint? How are you paid? Can I see some reviews of your work?
    23. 23. Redfin Agent Reviews
    24. 24. Seeing Homes in Person
    25. 25. 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
    26. 26. 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 27 of 55
    27. 27. 10-Minute Break Next up- Short Sales, REO, Offer process and closing. 10 mins 5 mins Let’s Get Started! End
    28. 28. Mortgages
    29. 29. 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
    30. 30. 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
    31. 31. 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
    32. 32. 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
    33. 33. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    34. 34. Making an Offer
    35. 35. 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
    36. 36. 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
    37. 37. Acceptance to Closing
    38. 38. 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!
    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. 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
    41. 41. Title Companies ● Prepares the final documents, including the HUD-1 (visual example of HUD-1 on next slide). ● Conducts the closing ● 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
    42. 42. Closing: HUD–1 Settlement
    43. 43. 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.
    44. 44. All Done!
    45. 45. 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
    46. 46. CAR Cool Facts…
    47. 47. Thanks for Coming! Questions? Get in touch: Barry Moon barry.moon.basu@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events
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