Redfin Roseville Home Buying Class

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  • 1. Redfin’s Home Buying Event August 19th, 2014 - Roseville, CA Host: Nikki Lawrence & Melanie Cortez Franklin @Redfin http://www.facebook.com/Redfin Slide 1 of 36
  • 2. Meet Redfin’s Roseville - Folsom Team Slide 2 of 36
  • 3. Agenda ● To buy or not to buy ● Overview of purchase process ● Understanding the Market ● Mortgages ● Multiple offers ● Choosing the right agent ● Making an Offer ● What to know about closing ● Thank you! Slide 3 of 36
  • 4. 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 36
  • 5. Save $4,000 on Average Slide 5 of 36
  • 6. Understanding the Buying Process Slide 6 of 36
  • 7. 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 a down payment? ● Can you rent for less? Slide 7 of 36
  • 8. Overview of a Purchase Research Neighborhoods Real Estate Agents Mortgage Options Preapproval Consider your needs Slide 8 of 36 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. Market Conditions Slide 9 of 36
  • 10. Current Market Slide 10 of 36
  • 11. Current Market: Rising Prices Slide 11 of 36
  • 12. Roseville Area Overview Slide 12 of 36
  • 13. What Other Trends are We Noticing? ● 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 price ● Deadlines are being set to accept & review offers ►Sellers usually review offers after about 7-14 days on market ►To give property exposure and create buzz amongst buyers ● Some buyers are waiving their contingencies in order to make their offers more attractive to the seller Slide 13 of 36
  • 14. 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 days. ● Expect to be up against multiple offers (5-10+), some cash offers ● Get pre approval early on Slide 14 of 36
  • 15. Mortgages Slide 15 of 36
  • 16. Where Are Rates Headed? Type of Loan August 15, 2014 August 5, 2014 30-Year Fixed 4.14% 4.12% 15-Year Fixed 3.27% 3.22% 5/1 ARM 3.00% 3.01% 1-Year ARM 2.35% 2.38% Slide 16 of 36
  • 17. 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 Slide 17 of 36
  • 18. 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 Info needed: ● W-2, two pay-stubs, tax returns, bank statements Slide 18 of 36
  • 19. Choosing the Right Agent Slide 19 of 36
  • 20. 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 20 of 36
  • 21. 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? Slide 21 of 36
  • 22. Redfin Agent Reviews Slide 22 of 36
  • 23. 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 Slide 23 of 36
  • 24. Making an Offer Slide 24 of 36
  • 25. 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 Slide 25 of 36
  • 26. 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 Slide 26 of 36
  • 27. Home Inspection 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 Slide 27 of 36
  • 28. 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. Other types: ● Appraisal – Performed in conjunction with financing ● Financing ● Termite ● Other Slide 28 of 36
  • 29. Title Companies ● 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 instruments ● Issues title insurance to the lender and the buyer Slide 29 of 36
  • 30. 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. Slide 30 of 36
  • 31. Overview Slide 31 of 36
  • 32. The Closing Process Slide 32 of 36 Get pre-approved Tour homes Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations Success! Mutual Acceptance Earnest money [Within 3 days] Inspection contingency [10-17 days] Title review [5 days] Loan & Appraisal Contingency [17 days] Waiting for loan approval Escrow signing appointment Closing! Get keys and take possession! Overview of a Purchase Receive Redfin refund Complete Redfin survey
  • 33. 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 Slide 33 of 36
  • 34. All Done! Slide 34 of 36
  • 35. Future Events! Slide 35 of 36
  • 36. Thanks for Coming! Questions? Get in touch: Melanie Cortez Franklin melanie.franklin@redfin.com Nikki Lawrence nikki.lawrence@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events Slide 36 of 36