Redfin’s Home Buying Class
Redfin North Atlanta
March 4th, 2014
Alpharetta, GA

Hosts: Tammy Trenholm & Colette Barnett
@R...
Tammy Trenholm, Atlanta Agent
● I have been a real estate agent for 20 years
● I have helped 200+ clients buy or a sell a ...
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%...
Agenda
●
●
●
●
●
●
●
●
●

To Buy or Not to Buy
Understanding the Buying Process
Understanding the Market
Short Sales and B...
To Buy or Not to Buy
Are You Ready to Buy?
●
●
●
●

Do you have a family and need room to grow?
Do you expect to own the home for 5 or more yea...
Why You Shouldn’t Buy a Home
●
●
●
●
●

You don’t have a good reason
You can’t afford a down payment
You can rent for much...
Overview of a Purchase
Research

Search

Offer

Closing

Neighborhoods

Define Preferences

Comparables

Earnest Money

Re...
Overview of Purchase Process
● Information – learn as much as possible about the
market, the neighborhood, price trends
● ...
Understanding the
Market
Statistics for Houses – Alpharetta, GA
Redfin Price Tracker
Alpharetta Inventory
City Overview
Understanding the Buying
Process
Absorption Rate
“The rate at which available homes are sold in a specific
real estate market during a given time period”

...
Short Sales and Bank Owned
What is a Short Sale?
The owner owes more on the mortgage than the home is
worth
● Usually pre-foreclosure, but not always...
What is a Bank-Owned Property?
● A foreclosed home owned by a bank or lender
● Standard sale but:
► Verbal negotiations
► ...
Condominiums and Townhomes
Condos
● HOA
► Monthly Fees
 Ext Building Maintenance
 Ext Liability Insurance
 Ext lighting, security
 Landscaping
 ...
Condominiums
● HOA
► Meeting Minutes
► Special Assessments
► Rental Cap (10-25%)
► Wait list for Rentals
► Litigations?

►...
Condominiums
● Financing
► Conventional
► FHA
► FNMA
► Factor in HOA fee for approval amount
Condominium
● What to look for….
► Noise levels
► Staff friendly and helpful
► Pet friendly
► Pet restrictions
► Common Ar...
Townhomes
● Fee Simple
► Lower HOA fees than condos
► Owner responsible for interior and exterior of building
► Maintain f...
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...
Experience With Multiple Offers
This occurs when inventory is down and buyer interest is up
5 Tips for Winning in a Biddin...
Redfin Agent Reviews
Traditional vs. Redfin
Redfin’s Partner Program
Partner agents are affiliated by other brokerages, and have
teamed up with us to provide Redfin-c...
Seeing Homes in Person
Making the Most of Your Tour
1.
2.
3.
4.
5.
6.
7.
8.

Bring a camera, notebook & tape measure
See how much sunlight the pl...
How Touring with Redfin Works
● Led by agent or associate
agent
● Up to six homes per tour in
two hour blocks
● Go on as m...
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
...
Never Miss a Home
Mortgages
Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly payment
● Figu...
Get Pre-Approved Early
A pre-approval letter is a letter from a bank or a lender estimating
how much they'll lend you
● Es...
Pulling Credit: Is It Harmful?
● Your credit report must be reviewed by a lender before you
can obtain a pre-approval
● If...
Start Shopping for Lenders
Compile a list of 3-4 local lenders
Good sources include:
● Redfin's partner lenders
● Referral...
Local Recommended Lenders

In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re gre...
Break!
Tammy Trenholm
North Atlanta
10-Minute Break

10 mins

5 mins

Let’s Get Started!

End
Making an Offer
Crafting Your Offer
● Evaluate – your agent will provide you with information
about market conditions and recent sales in ...
Tips for Winning a Bidding War
1. Just win, baby! Simply have the best offer.
► Cash is King
► Escalate your price?
► Tigh...
Home Inspection and
Other Contingencies
Home Inspection
● We recommend that you have a home inspection
● Home Inspections are performed early in the due diligence...
Other Contingencies
● Appraisal Contingency
► Performed in conjunction with financing
► Appraisal report must be completed...
Closing
Closing: HUD–1 Settlement
HUD-1 Settlement Statement – Lists all fees/charges/credits
By law, the final costs listed on yo...
Attorney Closings
● What does the Attorney do?
► Prepares the final documents, including the HUD-1
► Represent the buyer’s...
Closing: Title Insurance
● Lender and Owner Title Policies
● Title insurance guarantees that the property is clear and
mar...
Closing Day
●
●

You’ll have a final walk-through on closing ●
day or just before
●
What to bring:
► Government issued pho...
Selling Your Home
with Redfin
Better Service, Lower Fees
● We’re on your side
► Agents paid on your satisfaction
● Double your exposure
► Premium placem...
All Done!
So What Now?
●
●
●
●
●
●
●

Make sure it’s the right time for you
Start browsing online
Check out our Home Buying Guide
Fi...
Future Events!
Thanks for Coming!
Questions? Get in touch:
Tammy Trenholm
tammy.trenholm@redfin.com
Colette Barnett
colette.barnett@redfi...
Upcoming SlideShare
Loading in …5
×

Redfin's Free Home Buying Class - Alpharetta, GA

209 views
85 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
209
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • [REQUIRED – to be updated by the presenter to suit their strong points]
  • [OPTIONAL]
  • [REQUIRED]
  • [REQUIRED]Add visual
  • [OPTIONAL – cut or skip this slide if not relevant for your market or class]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED – Update with local lender]
  • 5 minute break timer.To begin the timer, when in presentation view on the slide, click advance once and you will see the red appear from left to right. When the entire bar is red your break is up!
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • Notes from Matt:- Update this slide so it is easier to read
  • We’ll stick around…
  • Redfin's Free Home Buying Class - Alpharetta, GA

    1. 1. Redfin’s Home Buying Class Redfin North Atlanta March 4th, 2014 Alpharetta, GA Hosts: Tammy Trenholm & Colette Barnett @Redfin facebook.com/Redfin
    2. 2. Tammy Trenholm, Atlanta Agent ● I have been a real estate agent for 20 years ● I have helped 200+ clients buy or a sell a home ● I live in Roswell  Enough about me! Meet my team…
    3. 3. 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
    4. 4. Agenda ● ● ● ● ● ● ● ● ● To Buy or Not to Buy Understanding the Buying Process Understanding the Market Short Sales and Bank Owned Condos/Townhomes Choosing the Right Agent Seeing Homes in Person Mortgages Closing- What You Need to Know
    5. 5. To Buy or Not to Buy
    6. 6. Are You Ready to Buy? ● ● ● ● Do you have a family and need room to grow? Do you expect to own the home for 5 or more years? Have you saved up a down payment? Can you rent for less?
    7. 7. Why You Shouldn’t Buy a Home ● ● ● ● ● You don’t have a good reason You can’t afford a down payment You can rent for much less You plan on moving soon You’re worried about job security
    8. 8. Overview of a Purchase Research Search Offer Closing Neighborhoods Define Preferences Comparables Earnest Money Real Estate Agents Saved Search Draft Offer Docs Inspection Mortgage Options Home Tours Negotiate Loan application Preapproval Open Houses Mutual Acceptance Title Review Consider your needs Appraisal Financing Approval Closing
    9. 9. Overview of Purchase Process ● Information – learn as much as possible about the market, the neighborhood, price trends ● Tour some houses to get a general idea ● Interview Lenders- get pre-approved ● Choose an Agent ● Tour more seriously and find YOUR home ● Mutual Acceptance on your offer ● Home Inspection “Contingency” ● Financing and Appraisal “Contingencies” ● Closing
    10. 10. Understanding the Market
    11. 11. Statistics for Houses – Alpharetta, GA
    12. 12. Redfin Price Tracker
    13. 13. Alpharetta Inventory
    14. 14. City Overview
    15. 15. Understanding the Buying Process
    16. 16. Absorption Rate “The rate at which available homes are sold in a specific real estate market during a given time period” Number of Active listings or comps in a specific market Number of homes that sold in that last 12 months
    17. 17. Short Sales and Bank Owned
    18. 18. What is a Short Sale? The owner owes more on the mortgage than the home is worth ● 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 partner agent ● Redfin partner agents work for other brokerages but share Redfin’s commitment to customer service ● Get a 15% commission refund
    19. 19. 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
    20. 20. Condominiums and Townhomes
    21. 21. Condos ● HOA ► Monthly Fees  Ext Building Maintenance  Ext Liability Insurance  Ext lighting, security  Landscaping  Pest Control Water  Utilities  Cable, Internet 
    22. 22. Condominiums ● HOA ► Meeting Minutes ► Special Assessments ► Rental Cap (10-25%) ► Wait list for Rentals ► Litigations? ► Typically, the older the building, the higher the HOA fee
    23. 23. Condominiums ● Financing ► Conventional ► FHA ► FNMA ► Factor in HOA fee for approval amount
    24. 24. Condominium ● What to look for…. ► Noise levels ► Staff friendly and helpful ► Pet friendly ► Pet restrictions ► Common Area cleanliness, maintenance ► Parking, location and number of spaces, visitor ► Storage ► Security, Concierge 24/7? ► Amenities, pool, fitness, tennis, clubhouse, etc
    25. 25. Townhomes ● Fee Simple ► Lower HOA fees than condos ► Owner responsible for interior and exterior of building ► Maintain full home insurance ► If problem occurs, then work with insurance vs HOA
    26. 26. Choosing the Right Agent
    27. 27. 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?
    28. 28. Experience With Multiple Offers This occurs when inventory is down and buyer interest is up 5 Tips for Winning in a Bidding War 1. Make the competition eat your dust 2. Get pre-approved with a local lender & get underwriter approval 3. Start the conversation early 4. Write a letter & appeal to the seller 5. Know your limits
    29. 29. Redfin Agent Reviews
    30. 30. Traditional vs. Redfin
    31. 31. Redfin’s Partner Program Partner agents are affiliated 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
    32. 32. Seeing Homes in Person
    33. 33. Making the Most of Your Tour 1. 2. 3. 4. 5. 6. 7. 8. Bring a camera, notebook & tape measure See how much sunlight the place gets Check the bathrooms for rot & mold Look for wavy or discolored wood siding Make sure water spouts drain away from house Take stock of storage space Turn off any music playing in house Check for hardwood floors 9. 10. 11. 12. 13. 14. 15. Peek into the attic Bring a marble or two When sharing a wall, make sure it’s thick Ignore the appliances and carpets Check the closets Get the disclosure packet Compare the property’s tax records to the listing details
    34. 34. 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 34 of 55
    35. 35. Never Miss A Home
    36. 36. 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
    37. 37. Never Miss a Home
    38. 38. Mortgages
    39. 39. 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
    40. 40. 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
    41. 41. 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
    42. 42. 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
    43. 43. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    44. 44. Break! Tammy Trenholm North Atlanta
    45. 45. 10-Minute Break 10 mins 5 mins Let’s Get Started! End
    46. 46. Making an Offer
    47. 47. 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
    48. 48. 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
    49. 49. Home Inspection and Other Contingencies
    50. 50. Home Inspection ● We recommend that you have a home inspection ● Home Inspections are performed early in the due diligence period ● $350 to $800+ depending upon the size of the house ● A Redfin agent will accompany you ● Your time to evaluate the property ● Types of Due Diligence ► Specialized Inspections – Structural, Stucco, Septic, Sewer Scopes, Well, Specialized Roof, Tree, Pool, Radon Test, Air Quality/Mold Test, Termite & Pest ► Survey ► Other – Schools, Crime, Traffic, Sex Offender, etc.
    51. 51. Other Contingencies ● Appraisal Contingency ► Performed in conjunction with financing ► Appraisal report must be completed prior to the expiration of the Appraisal Contingency Period ● Financing Contingency ► Buyer must make full application for the mortgage with their selected lender within 3-5 days of binding agreement ► Lender must provide a loan commitment letter or denial letter prior to the expiration of the Financing Contingency Period ● Title – Owner must provide clear title to the property ● Other – Contingencies on sale or lease of other property, etc.
    52. 52. Closing
    53. 53. Closing: HUD–1 Settlement HUD-1 Settlement Statement – Lists all fees/charges/credits By law, the final costs listed on your HUD-1 must be within 10% of the estimates provided on your Good Faith Estimate (GFE). ● Lender charges ► Includes origination fee, appraisal fee, credit report, insurance and tax escrows ● Title charges ► Includes settlement fee, and owner’s and lender’s title insurance ● Government charges ► Includes recording fees, recordation taxes and property taxes
    54. 54. Attorney Closings ● What does the Attorney do? ► Prepares the final documents, including the HUD-1 ► Represent the buyer’s lender ► 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
    55. 55. Closing: Title Insurance ● Lender and Owner Title Policies ● Title insurance guarantees that the property is clear and marketable ● 2 types of Owner title insurance policies ► Limited (Standard)  Protection against pre-closing defects in title ► Enhanced (Eagle)  Costs 20% more than Standard policy  Covers post closing fraud, forgery, identity theft  Increases with value of the property up to 150% of original price  Includes coverage for: mechanic’s liens, invalid permits, forced removal of structure, unrecorded easements, unrecorded leases,
    56. 56. Closing Day ● ● You’ll have a final walk-through on closing ● day or just before ● What to bring: ► Government issued photo ID ► Certified check or wired funds Closing typically takes 1 hour Get keys and take possession!
    57. 57. Selling Your Home with Redfin
    58. 58. Better Service, Lower Fees ● 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 months.
    59. 59. All Done!
    60. 60. 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
    61. 61. Future Events!
    62. 62. Thanks for Coming! Questions? Get in touch: Tammy Trenholm tammy.trenholm@redfin.com Colette Barnett colette.barnett@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

    ×