Transcript of "Redfin Roseville Home Buying Class"
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Redfin’s Home Buying Event
June 18, 2014 - Folsom, CA
Host: Lindsay Martin & Melanie Cortez Franklin
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Meet Redfin’s Roseville - Folsom Team
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● To buy or not to buy
● Overview of purchase process
● Understanding the Market
● Multiple offers
● Choosing the right agent
● Making an Offer
● What to know about closing
● Thank you!
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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
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● Homes are being listed at strategically low prices
►So properties are selling above list price
►Base your offer price on comps & trends – NOT on list
● Deadlines are being set to accept & review offers
►Sellers usually review offers after about 7-14 days on
►To give property exposure and create buzz amongst
● Some buyers are waiving their contingencies in order to
make their offers more attractive to the seller
What Other Trends are We Noticing?
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What to do?
● Go see the home as soon as you can!
►First couple days on market
● Homes that are priced well, and move-in ready, may sell in
● Expect to be up against multiple offers (5-10+), some cash
● Get pre approval early on
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Where Are Rates Headed?
Type of Loan June 12, 2014 June 5, 2014
30-Year Fixed 4.20% 4.14%
15-Year Fixed 3.31% 3.23%
5/1 ARM 3.05% 2.93%
1-Year ARM 2.40% 2.40%
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Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly payment
● Pay down credit balances
● Don’t open any new lines of credit
● Don’t buy any big ticket items
● Source of money
● Current employment status
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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
● Good for 90 days, depending on lender
● W-2, two pay-stubs, tax returns, bank statements
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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
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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?
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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
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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:
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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
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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
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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
● Appraisal – Performed in conjunction with financing
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● Prepares the final documents, including the HUD-1
● 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
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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.
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The Closing Process
Find dream home
Consult with agent, write offer
Submit offer to listing agent
Success! Mutual Acceptance
Earnest money [Within 3 days]
Inspection contingency [10-17 days]
Loan & Appraisal Contingency [17 days]
Title review [5 days]
Waiting for loan approval
Escrow signing appointment
Get keys and take possession!
Overview of a
Receive Redfin refund
Complete Redfin survey
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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
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Thanks for Coming!
Questions? Get in touch:
Lindsay Martin email@example.com
Melanie Cortez Franklin firstname.lastname@example.org
Check out our upcoming classes:
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