Redfin Crofton Home Buying Class

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Redfin Crofton Home Buying Class

  1. 1. Redfin’s Home Buying Class Redfin’s Anne Arundel Team June 10, 2014 – Crofton, MD Host: Marcie Gatton & Phil Hobby @Redfin http://www.facebook.com/Redfin
  2. 2. Marcie Gatton - Anne Arundel ● Agent for 17 years ● Closed avg. 35+ transactions/year ● Written over 100 offers in this market in last 3 years ● Specialize in: Anne Arundel & Howard Countries ● Lives in Severna Park  Enough about me! Meet my team…
  3. 3. Redfin’s Anne Arundel/PG Team! Pam Phelps Listing Specialist
  4. 4. Agenda ● Overview of the process ● Are you ready to buy? ● Choosing an agent ● Never miss a home ● Touring ● Mortgages ● Short sales & foreclosures ● Making an offer ● Acceptance to closing ● Selling with Redfin
  5. 5. 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
  6. 6. Save $6,000 on Average
  7. 7. Understanding the Buying Process
  8. 8. Overview of Buying a Home Research Neighborhoods Real Estate Agents Mortgage Options Preapproval Consider your needs Search Define Preferences Saved Search Home Tours Open Houses Offer Comparables Draft Offer Docs Negotiate Mutual Acceptance Closing Earnest Money Inspection Loan application Title Review Appraisal Financing Approval Closing
  9. 9. Understanding the Market
  10. 10. Current Market: Low Inventory
  11. 11. Current Market: Rising Prices
  12. 12. Are You Ready to Buy?
  13. 13. 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?
  14. 14. Choosing the Right Agent
  15. 15. 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?
  16. 16. Redfin Agent Reviews
  17. 17. Putting it all together to find YOUR home
  18. 18. Redfin.com-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
  19. 19. Highlights of Redfin’s Site ● Search by zip code or neighborhood ● Saved searches/instant alerts ● Agent notes ● Download results ● Price your home ● Forums ● Home buying guide ● Home inspection guide ● Any questions about the site?
  20. 20. Never Miss a Home
  21. 21. Seeing Homes in Person
  22. 22. Slide 22 of 55 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
  23. 23. Mortgages
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  28. 28. Short Sales and Bank Owned
  29. 29. 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 refund
  30. 30. 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 ►Earnest money deposit usually held by listing agent
  31. 31. Making an Offer
  32. 32. 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
  33. 33. 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
  34. 34. Acceptance to Closing
  35. 35. Steps After Mutual Acceptance ● Earnest money deposit – usually 1% ● Inspections ● Loan application – 5 days or less ● Title review ● Appraisal ● Loan approval ● Walk through ● Closing ● Receive your keys!
  36. 36. Home Inspection We recommend that you have a home inspection ● Cost runs $350 to $650 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-well, septic, radon, chimney, termite
  37. 37. Closing Expect to be at closing 1 hour or longer to sign all documents. Bring your photo ID, check book and money for closing. On closing day, you usually get the keys to your new home.
  38. 38. Selling Your Home with Redfin
  39. 39. Pam Phelps – Listing Specialist ● Licensed since 1998 – 16 years ● 181+ transactions lifetime ● 33 transactions in 2013 ● Specialize in Anne Arundel, Prince Georges and Howard Counties ● Distinguished Sales Achievement Club of AA Co Assoc of Realtors – Lifetime Member ● Live in Annapolis
  40. 40. ● 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 ►Professional photos ►Beautiful flyers Better Service, Lower Fees
  41. 41. 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
  42. 42. Thanks for Coming! Questions? Get in touch: Marcie Gatton marcie.gatton@redfin.com Phil Hobby phil.hobby@redfin.com Kim Dixson kim.dixson@redfin.com Michael Seighman michael.seighman@redfin.com Barbara McCaffrey barbara.mccaffrey@redfin.com Michael Seighman michael.seighman@redfin.com Pam Phelps pam.phelps@redfin.com Check out our upcoming classes: http://www.redfin.com/classes

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