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Redfin’s Home Buying Class 
Redfin’s Walnut Creek – Lafayette Team 
August 20th, Walnut Creek, CA 
Host: Martin Hendren & ...
Meet Redfin’s Walnut Creek Team
Agenda 
● Overview of the process 
● Are you ready to buy? 
● Understanding the market 
● Mortgages 
● Short sales & forec...
A Little Bit About Redfin 
Redfin is a real estate brokerage on a mission to make buying 
and selling a home better for yo...
Are You Ready to Buy?
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? 
● ...
Understanding the Market
Current Market: Low Inventory
Current Market: Rising Prices
Where Are Rates Headed? 
Type of Loan August 13, 2014 August 6, 2014 
30-Year Fixed 4.14% 4.12% 
15-Year Fixed 3.27% 3.22%...
Mortgages
Review Your Financial Situation 
● Pull credit report, look for errors 
● Establish comfort level for monthly payment 
● F...
Get Pre-Approved Early 
A pre-approval letter is a letter from a bank or a lender estimating 
how much they'll lend you 
●...
Pulling Credit: Is It Harmful? 
● Your credit report must be reviewed by a lender before you 
can obtain a pre-approval 
●...
Start Shopping for Lenders 
Compile a list of 3-4 local lenders 
Good sources include: 
● Redfin's partner lenders 
● Refe...
Local Recommended Lender 
In no way does 
Redfin benefit 
financially from 
recommending 
lenders – we just 
think they’re...
Choosing the Right Agent
What to Ask Any Agent 
● Is this your full-time job? 
● Where were your last five deals? 
● Who else will be working with ...
Redfin Agent Reviews
Redfin’s Partner Program 
Partner agents are employed by other brokerages, and have 
teamed up with us to provide Redfin-c...
Never Miss A Home
Real Estate Sites: What to Look For 
● Has all the homes for sale 
● Updated every 15 minutes 
● Real-time sales data 
● I...
Never Miss a Home
Seeing Homes in Person
How Touring with Redfin Works 
● Led by agent or associate 
agent 
● Up to six homes per tour in 
two hour blocks 
● Go on...
Making the Most of Your Tour 
1. Bring a camera, notebook & tape measure 
2. See how much sunlight the place gets 
3. Chec...
Making an Offer
Crafting Your Offer 
● Evaluate – your agent will provide you with information 
about market conditions and recent sales i...
Tips for Winning a Bidding War 
1. Just win, baby! Simply have the best offer. 
► Cash is King 
► Escalate your price? 
► ...
Acceptance to Closing
Steps After Mutual Acceptance 
● Earnest money deposit – usually 1-3%+ 
● Inspection – approximately $500 
● Other inspect...
Home Inspection 
We recommend that you have a home inspection 
● Cost runs $350 to $1200 depending upon the home’s size 
●...
What are Contingencies? 
This means the seller has accepted an offer on the property, 
but success may still depend on pas...
What is Escrow? 
Escrow is a third party intermediary that represents neither the 
buyer nor the seller. 
What do they do?...
Title Companies 
● Prepares the final documents, including the HUD-1 
● Conducts the closing 
● Examines and clears the ti...
Signing and Closing 
A few days before closing you will sign your closing documents 
and have a walk through. 
On closing ...
All Done!
So What Now? 
● Make sure it’s the right time for you 
● Start browsing online 
● Check out our Home Buying Guide 
● Find ...
Thanks for Coming! 
Questions? Get in touch: 
Martin Hendren martin.hendren@redfin.com 
Suzanna Masella suzanna.masella@re...
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Redfin Walnut Creek Home Buying Class

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Transcript of "Redfin Walnut Creek Home Buying Class"

  1. 1. Redfin’s Home Buying Class Redfin’s Walnut Creek – Lafayette Team August 20th, Walnut Creek, CA Host: Martin Hendren & Suzanne Masella @Redfin http://www.facebook.com/Redfin
  2. 2. Meet Redfin’s Walnut Creek Team
  3. 3. Agenda ● Overview of the process ● Are you ready to buy? ● Understanding the market ● Mortgages ● Short sales & foreclosures ● Choosing an agent ● Never miss a home ● Touring ● Making an offer ● Acceptance to closing
  4. 4. 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
  5. 5. Are You Ready to Buy?
  6. 6. 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?
  7. 7. Understanding the Market
  8. 8. Current Market: Low Inventory
  9. 9. Current Market: Rising Prices
  10. 10. Where Are Rates Headed? Type of Loan August 13, 2014 August 6, 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%
  11. 11. Mortgages
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. Local Recommended Lender In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders! Kevin Kennedy Vice President Loan Agent RPM Mortgage, INC. Alamo 3240 Stone Valley Road West Alamo, CA 94507
  17. 17. Choosing the Right Agent
  18. 18. 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?
  19. 19. Redfin Agent Reviews
  20. 20. 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
  21. 21. Never Miss A Home
  22. 22. 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
  23. 23. Never Miss a Home
  24. 24. Seeing Homes in Person
  25. 25. 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 Slide 25 of 55
  26. 26. 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
  27. 27. Making an Offer
  28. 28. 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
  29. 29. 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
  30. 30. Acceptance to Closing
  31. 31. 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 ● Appraisal ● Loan approval ● Document signing ● Walk through ● Closing ● Receive your keys!
  32. 32. 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
  33. 33. 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
  34. 34. What is Escrow? Escrow is a third party intermediary that represents neither the buyer nor the seller. What do they do? • Hold the earnest money • Arrange for payoff of any liens (seller’s mortgage, utilities, etc.) • Coordinate the signing appointments for all parties • Receive and disburse funds for closing • Arrange to notify county offices to change ownership
  35. 35. 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
  36. 36. 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.
  37. 37. All Done!
  38. 38. 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
  39. 39. Thanks for Coming! Questions? Get in touch: Martin Hendren martin.hendren@redfin.com Suzanna Masella suzanna.masella@redfin.com Check out our upcoming classes: http://www.redfin.com/events
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