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Redfin Home Buying Class
Redfin Southeast Los Angeles Team
November 14, Long Beach

@Redfin
facebook.com/Redfin
Southeast LA Team
Aviva Lomeli
Long Beach, Lakewood, Whittier, La Mirada,
Downey
Anne Ku
East San Gabriel Valley

Miriam K...
Agenda
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●
●
●
●
●
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●
●
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Overview of the process
Are you ready to buy?
Understanding the market
Never miss a home
Cho...
A Little Bit About Redfin
Redfin is a real estate brokerage on a mission to make buying
and selling a home better for you....
Save $4,000 on Average
Understanding the Buying
Process
Overview of a Buying a Home
Research

Search

Offer

Closing

Your needs

Define Preferences

Comparables

Earnest money

...
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
Long Beach Area Overview
Story of 2013: Lower Inventory
Story of 2013: Rising Prices
LA/OC Market Trends - September
●
●
●
●

LA: Prices up 23.4% YoY, down -1.1% MoM
LA: # homes sold down 1.8% YoY and 17.0% ...
Where Is the Market Headed?
● Supply of homes is at a five-year low and won’t increase
much more this year
● Foreclosures ...
Where Are Rates Headed?
Type of Loan

October 31, 2013

October 24, 2013

30-Year Fixed

4.10%

4.13%

15-Year Fixed

3.20...
Never Miss A Home
Real Estate Sites: What to Look For
● ALL the homes on MLS
● Updated every 15 minutes
● Real-time sales data

● Insights f...
Never Miss a Home
Choosing the Right Agent
What to Ask Any Agent
●
●
●
●
●
●

Where were your last 5 deals?
Who else will be working with me?
When am I committed to ...
Redfin Agent Reviews
Redfin’s Partner Program
Partner agents are employed by other brokerages, and have
teamed up with us to provide Redfin-cer...
Seeing Homes in Person
How Touring with Redfin Works
● Led by Agent or Associate
Agent
● Up to 6 homes per tour in 2
hour blocks
● Go on as many ...
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 (Openbook ...
Local Recommended Lenders

In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re gre...
Break!

Janice Sadler
Long Beach, Lakewood, Whittier, La Mirada, Downey
10-Minute Break

10 mins

5 mins

Let’s Get Started!

End
15-Minute Break

15 mins

7.5 mins

Let’s Get Started!

End
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 (REO)
● Standard sale but:
► Verbal negotiati...
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...
Acceptance to Closing
Steps After Mutual Acceptance
●
●
●
●
●
●
●
●
●
●
●

Earnest money deposit – usually 3%+
Inspection – approximately $350
O...
Home Inspection
We recommend that you have a home inspection
● Cost runs $350 to $1200 depending upon the home’s size
● Yo...
What are Contingencies?
This means the seller has accepted an offer on the property,
but success may still depend on passi...
What is Escrow?
Escrow is a third party intermediary that represents neither the
buyer nor the seller.
What do they do?
• ...
Signing and Closing
A few days before closing you will sign your closing documents
and have a walk through.
On closing day...
Selling Your Home
with Redfin
Better Service, Lower Fees
● We’re on your side
► Agents paid on your satisfaction
● Double your exposure
► Premium placem...
So What Now?
●
●
●
●
●
●
●

Make sure it’s the right time for you
Start browsing online
Check out our Home Buying Guide
Fi...
All Done!
Thanks for Coming!
Questions? Get in touch:
Janice Sadler
janice.sadler@redfin.com

Check out our upcoming classes:
http:/...
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Redfin's Free Home Buying Class - Los Angeles, CA

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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 list price not offer price.- You’ll get it as a closing credit or check after close, depending on your lender
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  • [REQUIRED – Updated every time]
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  • [REQUIRED – Updated every time]
  • [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.
  • [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.
  • [REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/
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  • [REQUIRED]
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  • [REQUIRED]Add visual
  • [OPTIONAL – cut or skip this slide if not relevant for your market or class]
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  • [REQUIRED]Add Lender’s name if he/she’s presenting
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  • [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!
  • 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!
  • [OPTIONAL]
  • [REQUIRED]
  • [REQUIRED]
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  • [Required]Add visual
  • [REQUIRED]Add visual
  • OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
  • Required
  • The visual of the HUD would be great and could eliminate some of the verbiage here. REQUIREDA HUD is divided into two parts:Lender charges Includes origination fee, appraisal fee, credit report, insurance and tax escrowsTitle chargesIncludes settlement fee, and owner’s and lender’s title insuranceGovernment chargesIncludes recording fees, recordation taxes and property taxes
  • 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 of "Redfin's Free Home Buying Class - Los Angeles, CA"

    1. 1. Redfin Home Buying Class Redfin Southeast Los Angeles Team November 14, Long Beach @Redfin facebook.com/Redfin
    2. 2. Southeast LA Team Aviva Lomeli Long Beach, Lakewood, Whittier, La Mirada, Downey Anne Ku East San Gabriel Valley Miriam Kirk Whittier, La Mirada, Cerritos, Covina, Glendora
    3. 3. Agenda ● ● ● ● ● ● ● ● ● ● ● Overview of the process Are you ready to buy? Understanding the market Never miss a home Choosing an agent Touring Mortgages Break! Short sales & foreclosures 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. Save $4,000 on Average
    6. 6. Understanding the Buying Process
    7. 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. 8. Are You Ready to Buy?
    9. 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? 20+% Have you saved up for closing costs? Typically 2% Can you rent for less?
    10. 10. Understanding the Market
    11. 11. Long Beach Area Overview
    12. 12. Story of 2013: Lower Inventory
    13. 13. Story of 2013: Rising Prices
    14. 14. LA/OC Market Trends - September ● ● ● ● LA: Prices up 23.4% YoY, down -1.1% MoM LA: # homes sold down 1.8% YoY and 17.0% MoM LA: # homes for sale decreased 11.8% YoY and 4.0% MoM LA: 30.4% of homes went pending in 2 weeks ● OC: 72.2% homes faced competition, 37.0% sold over asking ● OC winning offers: ► 3.7% were all cash ► 29.6% included a cover letter
    15. 15. 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
    16. 16. Where Are Rates Headed? Type of Loan October 31, 2013 October 24, 2013 30-Year Fixed 4.10% 4.13% 15-Year Fixed 3.20% 3.24% 5/1 ARM 2.96% 3.00% 1-Year ARM 2.64% 2.60%
    17. 17. Never Miss A Home
    18. 18. Real Estate Sites: What to Look For ● ALL the homes on MLS ● Updated every 15 minutes ● Real-time sales data ● Insights from Redfin Agents ● Lots of data ● Mobile apps
    19. 19. Never Miss a Home
    20. 20. Choosing the Right Agent
    21. 21. What to Ask Any Agent ● ● ● ● ● ● Where were your last 5 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? Do you have reviews from recent clients?
    22. 22. Redfin Agent Reviews
    23. 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. 24. Seeing Homes in Person
    25. 25. How Touring with Redfin Works ● Led by Agent or Associate Agent ● Up to 6 homes per tour in 2 hour blocks ● Go on as many tours as you need ● No obligation, no pressure Slide 25 of 55
    26. 26. Mortgages
    27. 27. 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
    28. 28. 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
    29. 29. 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
    30. 30. Start Shopping for Lenders Compile a list of 3-4 local lenders Good sources include: ● Redfin's Partner Lenders (Openbook Directory) ● Referrals from friends, family & co-workers ● Online review sites, such as Yelp ● Local chains and offices *Know your lender
    31. 31. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    32. 32. Break! Janice Sadler Long Beach, Lakewood, Whittier, La Mirada, Downey
    33. 33. 10-Minute Break 10 mins 5 mins Let’s Get Started! End
    34. 34. 15-Minute Break 15 mins 7.5 mins Let’s Get Started! End
    35. 35. Short Sales and Bank-Owned
    36. 36. 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
    37. 37. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender (REO) ● 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
    38. 38. Making an Offer
    39. 39. 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
    40. 40. 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
    41. 41. Acceptance to Closing
    42. 42. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 3%+ Inspection – approximately $350 Other inspections – Sewer scope, Chimney, etc. Loan application – 3 days or less Title review – 7 days Appraisal – 17 days Loan approval 17 days Document signing -25 days Walk through – 25 days Closing – 30 to 45 days Receive your keys! – 30 – 45 days
    43. 43. 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
    44. 44. 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 Report / Disclosures ● Other
    45. 45. 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
    46. 46. 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.
    47. 47. Selling Your Home with Redfin
    48. 48. 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 (4% total) ► Professional photos ► Beautiful flyers
    49. 49. 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
    50. 50. All Done!
    51. 51. Thanks for Coming! Questions? Get in touch: Janice Sadler janice.sadler@redfin.com Check out our upcoming classes: http://www.redfin.com/events
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