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Redfin's Free Home Buying Class- Chicago

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  • [REQUIRED – please add the main presenter’s photos]
  • [REQUIRED – Update with local home in the $400-$500 range, ideally listed by Redfin]Talking points:- Refund is based on your offer price not the sales price- You’ll get it as a closing credit or check after close, depending on your lender
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  • Nate
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  • [REQUIRED – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [REQUIRED – Should be updated once a month]The info on this slide is great. Lets add a visual so its more interesting after all the data slides.
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  • [OPTIONAL – cut or skip this slide if not relevant for your market or class]
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  • 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]Add Lender’s name if he/she’s presenting
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  • [REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/
  • Point out reviewsUpdating this page: This should be updated based on your Local Rec. Lender. Just go to the page click “Print Screen.” Come back to this page, click on the large image, click delete, and then right click and paste. Size the images so it fits the page. The right click again and click “Send to back.”
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  • OPTIONALThis is different by market so we should have different slides for each.
  • Notes from Matt:- Update this slide so it is easier to read
  • We’ll stick around…

Transcript

  • 1. Redfin’s Home Buying Class Redfin’s North Side Team October 29th, 2013 Chicago Host: Carrie Georgitsis Follow: @Redfin Like: http://www.facebook.com/Redfin
  • 2. Carrie Georgitsis, Redfin Agent ● Services Lake View and Lincoln Park ● Been an agent for 12 years. 9 years with Re/Max, 3 years with Redfin ● Specializes in Condos, Single Family Homes, Multi unit properties
  • 3. Agenda ● ● ● ● ● ● ● ● ● ● ● Overview of the process Are you ready to buy? Understanding the market Never miss a home Choosing an agent Touring Break! Mortgages Short sales & foreclosures Making an offer Acceptance to closing
  • 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. Save $4,000 on Average
  • 6. Understanding the Buying Process
  • 7. Overview of a Buying a Home Research Search Offer Closing Your needs Define Preferences Comparables Earnest money The market Instant Alerts Draft offer Inspection Neighborhoods Open houses Negotiate Loan application Agents Home tours Mutual acceptance Title review Mortgages Appraisal Preapproval Financing approval Closing
  • 8. Buying a Home Contingency Periods Talk to Lender Attorney Review – 5 bus. days Negotiate Offer to Contract Search Homes Appraisal Inspection – 5 bus. days Loan Commitment – ~30 days - - - - - - - - - - - - - - - Home-Sale/Close contingency Other inspection contingencies Final Walkthrough Closing Redfin Rebate…
  • 9. 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?
  • 10. Understanding the Market
  • 11. Case-Shiller: Chicago Area v. 20-City 250.00 200.00 150.00 100.00 50.00 0.00 Chicago Area 20-City Composite
  • 12. Case-Shiller – By the Numbers Chicago Area Up 9.3% year-over-year Peak was September 2006 Down 32.6% from peak As of June 2013, selling at May 2002 prices Case-Shiller: 20-City Composite Up 12.1% year-over-year Peak was July 2006 Down 26.2% from peak As of June 2013 at April 2004 prices
  • 13. Story of 2013: Low Inventory
  • 14. Story of 2013: Rising Prices
  • 15. Area Overview
  • 16. Where Is the Market Headed? ● Supply of homes is at a five-year low and won’t increase much more this year ● Foreclosures have been driving price declines, and years of inventory remain. Investment groups might have impact ● Rents have been rising, making buying more attractive ● Market stabilized – price increases in many areas ● Rate increases - biggest potential issue for buyers
  • 17. Never Miss A Home
  • 18. 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
  • 19. Never Miss a Home
  • 20. Choosing the Right Agent
  • 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 compliant? How are you paid? Can I see some reviews of your work?
  • 22. Redfin Agent Reviews
  • 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
  • 24. Seeing Homes in Person
  • 25. 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
  • 26. 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 26 of 55
  • 27. Break! Carrie Georgitsis Lakeview & Lincoln Park
  • 28. 10-Minute Break ● Pizza, Beer! 10 mins 5 mins Let’s Get Started! End
  • 29. Mortgages Peter E. Georgitsis Peoples Home Equity, Inc.
  • 30. 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
  • 31. 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
  • 32. 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
  • 33. 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
  • 34. Where Are Rates Headed? Type of Loan October 24, 2013 October 17, 2013 30-Year Fixed 4.13% 4.28% 15-Year Fixed 3.24% 3.33% 5/1 ARM 3.00% 3.07% 1-Year ARM 2.60% 2.63%
  • 35. Local Recommended Lenders Peoples Home Equity, Inc. •Services: Lending •Location:2100 Clearwater Dr, #140 •Mobile:630-854-7811 •Email:Peter@PeterHomeLoans.com •Link:www.peopleshomeequity.com Peter Georgitsis Peter Georgitsis's Recent Reviews *In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders! $462K Townhouse Buyer (Closed) May 9, 2012 CHICAGO, IL [Wrigleyville / Lakeview] From the moment Peter took our application he was completely engaged in our loan. He took the time to walk us through multiple options, letting us decide which was best for our situation. Most importantly, he was able to follow through on his promises from the application and complete our mortgage with the terms we agreed upon. Throughout the process he made himself very available and responded to all of our questions in a timely fashion.
  • 36. Short Sales and Bank Owned
  • 37. 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
  • 38. 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
  • 39. Making an Offer
  • 40. 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
  • 41. 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
  • 42. Acceptance to Closing
  • 43. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 3% to 5% Inspection Contingency – approximately $350 to $600 Other inspections – radon, sewer scope, etc. Attorney Review Contingency Financing Contingency Loan application and appraisal Loan approval Walk through Closing Receive your keys! …and Redfin rebate…
  • 44. Home Inspection ● We recommend that you have a home inspection ● About $350 to $600 ● Ask Potential Inspectors; Are you Licensed?  idfpr.gov ► Are you Insured? ► Do you use Thermal Imaging? ► Will you Walk the Roof? ► Will your Inspection Report include Pictures? ► What do you charge for the Inspection?
  • 45. Home Inspection Hints Watch out for: •Plumbing System •Electrical system •Mold, mildew or signs of leaking near walls or floors Look for and Check: •Fireplace inspection •Check all included appliances •Check water pressure •Double-paned windows •Well ventilated attic •Safety Items •Check for Radon
  • 46. 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
  • 47. Signing and Closing ● ● 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 1.5 to 3 hours, but can run longer Get keys and take possession! Receive Redfin Rebate in about a week
  • 48. Selling Your Home with Redfin
  • 49. 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.
  • 50. 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 ● Complete the Survey
  • 51. All Done!
  • 52. Thanks for Coming! Questions? Get in touch: Carrie Georgitsis carrie.georgitsis@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events