Redfin Free Contract Class - Irvine, CA

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  • Chart:http://www.mortgagenewsdaily.com/mortgage_rates/charts.aspPrediction:http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index.aspx

Transcript

  • 1. Real Estate Contracts: Making an Offer Redfin’s South Orange County Team~ April 30, 2014 Keith Thomas and Karl Stenske Follow: @Redfin Like: http://www.facebook.com
  • 2. Meet Redfin’s South OC Team
  • 3. 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 credit
  • 4. Partners in the Process AGENT Responsible for your success Writes your offer Handles negotiations TRANSACTION COORDINATOR Prepares paperwork Works with escrow TOUR COORDINATOR Schedules tours Prepares paperwork ASSOCIATE AGENT Takes you to see homes Sees 50+ homes a week
  • 5. Benefits of a MLS Powered Site  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 homes
  • 6. To Buy or Not to Buy
  • 7. 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 payment
  • 8. Making an Offer
  • 9. Completing the Offer Wizard
  • 10. Completing the Offer Wizard
  • 11. Offer Documentation To submit an offer we need to include several documents:  Pre-approval Letter  Proof of Down Payment Funds  Copy of an Earnest Money Deposit Check  Optional: FICO (credit) Scores  Other forms: RELO Addendum; REO Addm. etc.
  • 12. Offer Forms
  • 13. Offer Forms Disclaimer: The scope of this class is to discuss the process for drafting an offer to purchase a home, the documents involved and the strategies for getting an offer accepted. The presenter is not a real estate attorney. Questions pertaining to the legal ramifications of the following contracts should be directed to a real estate attorney.
  • 14. Offer Forms Redfin Buyer Representation Agreement (RBRA)  Establishes the representation relationship between you (Buyer) and Redfin  Documents expectations of Redfin and you, the Buyer  Protects Redfin’s claim to a commission  Establishes the buyer’s Redfin refund policy Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)
  • 15. Offer Forms Disclosure And Consent For Representation Of More Than One Buyer Or Seller (C.A.R. From DA)  Discloses that the Broker (Redfin) may represent both the Buyer and Seller in a transaction.  An individual Redfin Orange County agent will NOT represent both the Buyer and the Seller in any one transaction. Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)
  • 16. Offer Forms Market Conditions Advisory (C.A.R. Form MCA)  Advises Buyer about determining the price to offer  Warns Buyer about the importance of contingencies  Warns Buyer about the risk of writing multiple offers Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)
  • 17. Offer Forms Disclosure Regarding Real Estate Agency Relationship (C.A.R. Form AD)  Defines agency representation and relationships  Describes the fiduciary duty expected of real estate agents Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)  Seller
  • 18. Offer Forms Residential Purchase Agreement (C.A.R. Form RPA)  Main offer form that contains terms including:  Offer price and terms  Closing cost splits  Contingency periods  Etc… Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)  Seller and Seller’s Agent (Listing Agent)
  • 19. Offer Forms Buyer’s Inspection Advisory (C.A.R. Form BIA)  Advises Buyer to conduct thorough home inspections  Outlines the importance of proper inspection of many different parts of the home and it’s surroundings Who signs this document:  Buyer  Seller
  • 20. Offer Forms Wood Destroying Pet Inspection And Allocation Of Cost Addendum (C.A.R. Form WPA)  Outlines who is responsible for procuring and paying for a Wood Pest Report  Establishes who is responsible for correcting conditions discovered by Wood Pest Report  Section 1 & Section 2 conditions Who signs this document:  Buyer  Seller
  • 21. Other Forms
  • 22. Other Forms Request For Repair (C.A.R. Form RR)  Used to ask the Seller to fix or credit Buyer for conditions discovered during the inspection period  Seller is NOT obligated to fix items other than as required by local law  RPA states property is sold in ‘As-Is’ condition
  • 23. Other Forms Contingency Removal (C.A.R. Form CR)  Removes some or all of Buyer’s contingencies and commits Buyer to the purchase  If Buyer cancels transaction after removing contingencies deposit may be at risk  Should not be signed until Buyer is confident in their ability to close and satisfied with any terms agreed upon during negotiations
  • 24. Short-Sales & Bank Owned
  • 25. Offer Forms REO Advisory (C.A.R. Form REO)  Informs Buyer of Seller exemptions in a bank owned transaction  Establishes what is still required of the Seller  Recommends Buyer have any addendums or amendments provided by Seller be reviewed by legal counsel Who signs this document:  Buyer  Seller
  • 26. Offer Forms Short Sale Addendum (C.A.R. Form SSA)  Establishes timelines regarding short sale approval and contingencies  Outlines expectations of Buyer and Seller regarding short sale approval period Who signs this document:  Buyer  Seller
  • 27. Offer Forms Short Sale Information And Advisory (C.A.R. Form SSIA)  Defines short sale  Informs Buyer and Seller of the alternatives to a short sale  Discloses the difficulties that may arise during a short sale transaction Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)  Seller and Seller’s Agent (Listing Agent)
  • 28. Offer Forms Bank Addendums / Amendments / Counter Offers  Often added to bank owned (REO) transactions  Modify terms of the RPA and may limit the bank’s liability  Often add daily per diem if Buyer closes late  Redfin can’t provide guidance or opinion on bank addendums, attorney review is strongly encouraged
  • 29. Check out our local pages! Facebook.com/RedfinOC Twitter.com/RedfinOC Forums.Redfin.com
  • 30. Questions?
  • 31. After Class… 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/events Questions? Get in touch: Keith Thomas Keith.thomas@redfin.com Karl Stenske Karl.stenske@redfin.com