[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 – 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!
Customers will also receive a refund when working with a Redfin Partner Agent, however the refund is reduced because Redfin pays the partner agent a sales commission, ( i.e. “When you work with one of our partner agents, you can expect the same commitment to customer service as you would with a Redfin Agent, as well as a 15% refund or credit on your agent's commission” Redfin website ).
[REQUIRED]Add Lender’s name if he/she’s presenting
[REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/
[REQUIRED – Update with local lender]
I removed the Common Contingencies and terms from the Overview slide # 6, because they will be discussed here.
OPTIONALThis is different by market so we should have different slides for each.
Notes from Matt:- Update this slide so it is easier to read
We’ll stick around to answer questions…..
Redfin Home Buying Fairfax
Redfin’s Home Buying Class
Redfin’s Fairfax Team
April 10th ~ Fairfax, VA
Host: Brian Herndon
● Overview of the process
● Are you ready to buy?
● Never miss a home
● Choosing an agent
● Short sales & foreclosures
● Making an offer
● Acceptance to closing
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
● Technology: sellers get more traffic; buyers tour homes first
● Value: a full-service brokerage that saves you thousands
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?
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?
Redfin’s 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
► If it’s in your financial advantage to work with a partner
► We’re experiencing unusually high customer demand
We survey all partner agent clients
► All surveys are published on their Redfin page
► 97% of customers would recommend Redfin Partners
Where Are Rates Headed?
Type of Loan April 3, 2014 March 27, 2014
30-Year Fixed 4.41% 4.40%
15-Year Fixed 3.47% 3.42%
5/1 ARM 3.12% 3.10%
1-Year ARM 2.45% 2.44%
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
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
● W-2, two pay-stubs, tax returns, bank statements
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
● Maintaining a pre-approval
has a negligible impact on
your credit score
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
Local Recommended Lenders
In no way does
lenders – we just
think they’re great
What is a Short Sale?
The owner owes more on the mortgage than the home is
● 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
● Redfin partner agents work for other brokerages but share
Redfin’s commitment to customer service
● Get a 15% commission refund
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
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
► Title Review
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
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
● Loan approval
● Document signing
● Walk through
● Receive your keys!
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.
● Appraisal – Performed in conjunction with financing
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
● 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
● Issues title insurance to the lender and the buyer
Signing and 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.
● 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
We’ve helped over 50 people sell their homes in the last six
Better Service, Lower Fees
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
Thanks for Coming!
Questions? Get in touch:
Brian Herndon email@example.com
Stevie Tibbs firstname.lastname@example.org
Check out our upcoming classes: