Redfin's Free Contract Class - Seattle, WA

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  • [REQUIRED – please add the main presenter’s photos]
  • [REQUIRED – to be updated by the presenter to suit their strong points]
  • [REQUIRED – Update with local home in the $400-$500 range, ideally listed by Redfin]Talking points:- Refund is based on your list price not offer price.- You’ll get it as a closing credit or check after close, depending on your lender
  • Chart:http://www.mortgagenewsdaily.com/mortgage_rates/charts.aspPrediction:http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index.aspx
  • Redfin's Free Contract Class - Seattle, WA

    1. 1. Redfin Contract and Negotiation Class Redfin South Seattle Team November 7, 2013, West Seattle @Redfin facebook.com/Redfin
    2. 2. Dan Mullins – West Seattle ● Agent for 7 years ● Closed 73 homes ● Specialize in: First Time Home Buyers, Condos, town houses, Single Family. ● Buyers Agent ● West Seattle
    3. 3. 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
    4. 4. Save $4,000 on Average
    5. 5. To Buy or Not to Buy
    6. 6. Why You Should Buy a Home ● ● ● ● ● You have a family and need room to grow You expect to stay put for 5 or more years You want a home that is difficult to rent You’re handy & and ready to invest You’ve saved up a down payment
    7. 7. Why You Shouldn’t Buy a Home      You don’t have a good reason like family or schools You can’t afford the down payment You can rent for much less You plan on moving soon You’re worried about job security
    8. 8. Making an Offer
    9. 9. Completing the Offer Wizard
    10. 10. Completing the Offer Wizard
    11. 11. Completing the Offer Wizard
    12. 12. Completing the Offer Wizard
    13. 13. Offer Documentation To submit an offer we need to include several documents:      Pre-approval Letter Proof of Down Payment Funds Copy of an Earnest Money Deposit Check Optional: FICO (credit) Scores Other forms: RELO Addendum; REO Addm. etc.
    14. 14. Offer Forms
    15. 15. Offer Basics  Must be in writing to be binding  Specify both price and terms  Describes the duties and obligations, including timelines  Any change constitutes a “counter”
    16. 16. What Forms Will We Use?   NWMLS Forms Exceptions:  Builder Purchase Agreement/Addendum  Relocation Company Addendum  Bank Addendum  Short Sale Addendum
    17. 17. Most Commonly Used Forms      Form 21(28) – Purchase and Sale Agreement Form 22A – Financing Contingency Addendum Form 22D – Optional Clauses Addendum Form 22J – Lead Based Paint Disclosure Form 22K – Utilities Addendum
    18. 18. Most Commonly Used Forms       Form 22SS – Short Sale Addendum Form 22T – Title Contingency Addendum Form 35 – Inspection Contingency Addendum Form 35E – Escalation Addendum Form 35R – Inspection Response Buyer’s Agency Agreement
    19. 19. What Other Forms Are There?      Form 17 – Seller’s Disclosure Statement Legal Description Form 35R – Inspection Response Form Form 34 – General Addendum Form 36 – Counteroffer Addendum
    20. 20. Form 21: “PSA”
    21. 21. Form 21: “PSA”
    22. 22. Form 21: “PSA”
    23. 23. Form 21: “PSA” a) b) c) d) e) Purchase price - you can afford to pay the price, subject to any contingencies mentioned in the offer, like financing Earnest money 1. Deposit with escrow, 3 business days of offer acceptance 2. You get it back if you back out using a contingency Included items – if it’s attached it’s generally included Condition of title – have to be able to re-sell the home, but there may be conditions on the title like easements or HOA Title insurance – seller pays for the “owner’s policy”, buyer pays for the “mortgage policy”
    24. 24. Form 21: “PSA” f) g) h) i) Closing and Possession – officially closed when transfer documents are recorded, possession is 9pm that day unless otherwise agreed 1031 Exchange – relatively uncommon, no liability or expense for the cooperating party Closing costs 1. Buyer and Seller split escrow fee 2. Taxes, HOA dues prorated to the day of closing 3. Seller pays certain fees 4. Buyer pays certain fees unless otherwise negotiated Sale information – agents will report sales price to the MLS
    25. 25. Form 21: “PSA” j) k) l) m) n) o) FIRTPA – only affects the seller Notices – your agent will handle this on your behalf Computation of time a) 5 days or less – business days b) 6 days or more – calendar days c) Contingency periods cannot end on a weekend d) Most time periods expire at 9pm Fax and email – same as original signatures Electronic signatures – same as original signatures Assignment – requires the Seller’s permission
    26. 26. Form 21: “PSA” p) q) r) s) t) u) Default – if Buyer defaults, they may lose earnest money Professional advice – you’re advised to talk to an attorney. If there is a suit, the person who loses pays the fees. Offer – default offer expiration is 9pm on the date noted. Acceptance must be in writing. Counteroffer - default offer expiration is 9pm on the date noted. Acceptance must be in writing. Offer and counteroffer expiration date – if not specified, an offer or counteroffer is good for 2 days. Agency disclosure – explains which agent is working for which party.
    27. 27. Form 21: “PSA” v) w) x) Commission – paid by the seller at closing Cancellation/Lead Based Paint – if the home is built prior to 1978 and no disclosure is made prior to an offer being signed, you have 3 days from receipt to cancel Information verification – if within 10 days you discover that something significant about the property was in error, you may have the right to rescind your offer. This section also includes language about the buyer’s agent and listing agent relying on information provided to them by other parties.
    28. 28. Form 22A: Financing Addendum
    29. 29. Form 22A: Financing Addendum
    30. 30. Form 22A: Financing Addendum
    31. 31. Form 22D: Optional Clauses
    32. 32. Form 22D: Optional Clauses
    33. 33. Form 22D: Optional Clauses
    34. 34. Form 22D: Optional Clauses
    35. 35. Form 22J: Lead-Based Paint Disclosure
    36. 36. Form 22SS: Short Sale Addendum
    37. 37. Form 22T: Title
    38. 38. Form 35: Inspection
    39. 39. Form 35: Inspection
    40. 40. Form 35: Inspection
    41. 41. Form 35: Inspection
    42. 42. Form 35E: Escalation Addendum
    43. 43. Form 35R: Inspection Response
    44. 44. Buyer’s Agency Agreement
    45. 45. What happens when the documents are complete?       Sign – typically via DocuSign Submit – with your pre-approval letter Wait for a response Counter – if necessary Acceptance – when signed by all parties Next steps – your Agent and Coordinator walk you through the rest of the way
    46. 46. After Class… Please fill out the survey that was handed out at the beginning of class. We appreciate the feedback! Check out our upcoming classes and events at: http://www.redfin.com/events Questions? Get in touch: Dan Mullins dan.mullins@redfin.com

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