Redfin Home Buying Class 6.24
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Redfin Home Buying Class 6.24






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Redfin Home Buying Class 6.24 Redfin Home Buying Class 6.24 Presentation Transcript

  • Slide 1 of 58 Redfin Home Buying Class June 24, Fountain Valley, CA Host: Jennifer Chen & Karl Stenske @Redfin
  • Slide 2 of 58 Agenda ● A little about Redfin ● Understanding the market ● The purchase process ● 4 Tips in multiple offers ● Mortgages ● Break! ● Distressed sales ● Tools that Redfin offers ● Touring ● Selecting the right agent
  • Slide 3 of 58 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
  • Slide 4 of 58 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
  • Slide 5 of 58 Save $4,000 on Average • We refund back part of our commission to you! • New Construction – Redfin can provide our rebate if we sign you in the first time you go to the sales gallery
  • Slide 6 of 58 - Benefits of MLS Powered (Multiple Listing Service) ● 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
  • Slide 7 of 58 Understanding the Buying Process
  • Slide 8 of 58 Overview of a Buying a Home Research Your needs The market Neighborhoods Agents Mortgages Preapproval Search Define Preferences Instant Alerts Open houses Home tours Offer Comparables Draft offer Negotiate Mutual acceptance Closing Earnest money Inspection Loan application Title review Appraisal Financing approval Closing
  • Slide 9 of 58 Understanding the Market
  • Slide 10 of 58 Orange County Housing Report  The market is on Cruise Control  Inventory is increasing, demand is flat and foreclosures and short sales are almost non-existent. ● Active inventory increased by 8% in the past month ● We don’t anticipate home values to significantly increase or decrease anytime soon.
  • Slide 11 of 58 # of Homes for Sale
  • Slide 12 of 58 Tip: Local information can be found for any city, zip or county under “Stats and Trends” from the map page: Sold $ per Square Foot
  • Slide 13 of 58 Overview of a Purchase
  • Slide 14 of 58 Your Offer has been Accepted! ● Earnest money deposit – usually 1-3%+ ● Inspection – approximately $500 ● Other Inspections – roof, pool, etc. ● Loan Application – 2 days or less ● Review Title ● Order Appraisal – approximately $500 ● Loan Approval – remove contingencies! ● Escrow – appointment to sign documents ● Walk through ● Loan funds, title records ● Receive your keys!
  • Slide 15 of 58 Multiple Offer Situations 4 tips
  • Slide 16 of 58 Tip #1: Make the competition eat your dust
  • Slide 17 of 58 Sign up for Instant Alerts
  • Slide 18 of 58 Tip #2: Get pre-approved with a local lender
  • Slide 19 of 58 Questions to ask your lender ● How quickly can you close? ● How quickly can you issue a loan commitment? ● Are you available on weekends/evenings in case of emergencies? ● Can you call the listing agent after we present our offer?
  • Slide 20 of 58 Tip #3: Start the conversation early
  • Slide 21 of 58 Writing a Winning Offer Let’s Do our Homework  Buyer’s agent should call the listing agent to find out what the seller’s situation is and what the competition looks like.  Do the seller’s need a quick sale?  Will they need to remain in the property after the closing?  Build rapport with the listing agent
  • Slide 22 of 58 Single Family Residence - Irvine ● Listed for $1,399,888 ● Seller received multiple offers ● Sellers accepted an offer at $1,400,000, free 1 month rent back, “As Is” sale
  • Slide 23 of 58 Tip #4: Write a love letter to the seller
  • Slide 24 of 58 Writing a Winning Offer Personal Touch ● Including a short letter to the seller and a picture may help the seller connect and consider your offer. ● Include a bit about you, your family, your profession. ● Comment on the things you liked about the seller’s home. ● Send your agent a family photo to include. ►Won’t help as much with bank owned properties or investor sellers
  • Slide 25 of 58
  • Slide 26 of 58 18742 Via Siena, Irvine ● Listed at $1,758,000 ● Received Multiple Offers ● All cash buyer at $1,800,000 ● My clients won the home for $22,000 less with a loan
  • Slide 27 of 58 Mortgages
  • Slide 28 of 58 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
  • Slide 29 of 58 Organize Your Assets ● Get ready for the down payment ● Cash accounts (liquid funds) ● 401(k), stocks, other investments ● Gift funds? (Max. allowed varies) ● Move funds around before you start shopping
  • Slide 30 of 58 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
  • Slide 31 of 58 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
  • Slide 32 of 58 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
  • Slide 33 of 58 Types of Loans ● Conventional: ► 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 spouses ► No down payment
  • Slide 34 of 58 Interest Rates - snapshot Type of Loan June 19, 2013 June 12, 2013 30-Year Fixed 4.17% 4.20% 15-Year Fixed 3.30% 3.31% 5/1 ARM 3.00% 3.05% 1-Year ARM 2.41% 2.40%
  • Slide 35 of 58 Local Recommended Lenders
  • Slide 36 of 58 10-Minute Break ● Feel free to come ask us questions! 10 mins 5 mins End Let’s Get Started!
  • Slide 37 of 58 Short Sales and Bank Owned
  • Slide 38 of 58 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
  • Slide 39 of 58 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 money
  • Slide 40 of 58 Putting it all together to find YOUR home
  • Slide 41 of 58 Agent Notes
  • Slide 42 of 58 CMA Tool
  • Slide 43 of 58 Search by Schools
  • Slide 44 of 58 Home Inspection Guide
  • Slide 45 of 58 Redfin Open Book ● Redfin Certified Providers ►Proven track record, vetted by Redfin ● We survey every client & post the good, bad, & ugly ● Read real reviews & find a great local team ►Inspectors ►Lenders ►Title Companies ►Attorneys
  • Slide 46 of 58 Choosing the Right Agent
  • Slide 47 of 58 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?
  • Slide 48 of 58 Redfin Agent Reviews
  • Slide 49 of 58 Redfin 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
  • Slide 50 of 58 Seeing Homes in Person
  • Slide 51 of 58 How Touring with Redfin Works ● Up to six homes per tour in two hour blocks ● Go on as many tours as you need ● Led by agent or associate agent ● Need to be verified ● No obligation
  • Slide 52 of 58 Making the Most of Your Tour 1. Bring a camera, notebook & tape measure 2. See how much sunlight the place gets 3. Check the bathrooms for rot & mold 4. Look for wavy or discolored wood siding 5. Make sure water spouts drain away from house 6. Take stock of storage space 7. Turn off any music playing in house 8. Check for hardwood floors 9. Peek into the attic 10. Bring a marble or two 11. When sharing a wall, make sure it’s thick 12. Ignore the appliances and carpets 13. Check the closets 14. Get the disclosure packet 15. Compare the property’s tax records to the listing details
  • Slide 53 of 58 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
  • Slide 54 of 58 Selling Your Home with Redfin
  • Slide 55 of 58 ● 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
  • Slide 56 of 58 Future Events!
  • Slide 57 of 58 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 deal
  • Slide 58 of 58 Thank You for Coming!