Redfin’s Home Buying Class
Redfin’s North Orange County Team
August 14 Fullerton, CA
@RedfinOC
facebook.com/RedfinOC
Jacob Bruce – North Orange
County Real Estate Agent
● Realtor for 11 years
● Closed over 50 deals with Redfin
● Born and r...
Agenda
● Overview of the process
● Are you ready to buy?
● Understanding the market
● Never miss a home
● Choosing an agen...
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
Your needs
The market
Neighborhoods
Agents
Mortgages
Preapproval
Search
Define Prefer...
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?
● Hav...
Understanding the
Market
Slide 11 of 55
Case-Shiller: Los Angeles Area v. 20-City
0.00
50.00
100.00
150.00
200.00
250.00
300.00
Los Angeles
20-City...
Case-Shiller – By the Numbers
● Los Angeles Area
Up 18.8% year-over-year
Peak was September 2006
Down 32% from peak
Curren...
Story of 2013: Low Inventory
Story of 2013: Rising Prices
Orange County Area Overview
Where Is the Market Headed?
● Supply of homes is at a five-year low and won’t increase
much more this year
● Even with ris...
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
● Insig...
Never Miss a Home
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 me?...
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
Making the Most of Your Tour
1. Bring a camera, notebook & tape measure
2. See how much sunlight the place gets
3. Check t...
Slide 26 of 55
How Touring with Redfin Works
● Led by agent or associate
agent
● Up to six homes per tour in
two hour bloc...
Mortgages
Craig C. Huston Skyline Home Loans
949-943-4122 chuston@skylinehl.com
Local Recommended Lenders
In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re grea...
Get Pre-Approved Early
A pre-approval letter is a letter from a bank or a lender estimating
how much they'll lend you (May...
Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly payment
● Figu...
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 2-3 local lenders – Best to research lenders well in
advance of offer being a...
10-Minute Break
10 mins 5 mins End
Let’s Get Started!
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(REO)?
● A foreclosed home owned by a bank or lender
● Standard sale but:
► Verbal negotiatio...
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 1-3%+
● Inspection – approximately $500
● Other inspection...
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 neutral third party intermediary that represents
neither the buyer nor the seller.
What do the...
Title Companies
● Prepares the final documents, including the HUD-1
● Conducts the closing
● Examines and clears the title...
Closing: HUD–1 Settlement
Signing and Closing
A few days before closing you will sign your loan documents
and have a walk through/ Verification of P...
Selling Your Home
with Redfin
● We’re on your side
► Agents paid on your satisfaction
● Double your exposure
► Premium placement on Redfin
► Zillow, Tru...
So What Now?
● Make sure it’s the right time for you
● Start browsing online
● Check out our Home Buying Guide
● Find the ...
Thanks for Coming!
Questions? Get in touch:
Jacob Bruce jacob.bruce@redfin.com
Craig Huston chuston@skylinehl.com
Check ou...
All Done!
Redfin's Free Home Buying Class - Orange County, CA
Upcoming SlideShare
Loading in …5
×

Redfin's Free Home Buying Class - Orange County, CA

157 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
157
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • [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
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED – Updated every time]
  • [REQUIRED – Updated every time]
  • [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.
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]Add visual
  • [OPTIONAL – cut or skip this slide if not relevant for your market or class]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [REQUIRED – Update with local lender]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • [REQUIRED]
  • 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]
  • [REQUIRED]
  • [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…
  • Redfin's Free Home Buying Class - Orange County, CA

    1. 1. Redfin’s Home Buying Class Redfin’s North Orange County Team August 14 Fullerton, CA @RedfinOC facebook.com/RedfinOC
    2. 2. Jacob Bruce – North Orange County Real Estate Agent ● Realtor for 11 years ● Closed over 50 deals with Redfin ● Born and raised in Fullerton ● Service Area: North OC
    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 Your needs The market Neighborhoods Agents Mortgages Preapproval Search Define Preferences Instant Alerts Open houses Home tours Offer Comparables Draft offer Negotiate Mutual acceptance Closing Earnest money Inspection Loan application Title review Appraisal 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? 3.5% to 20+% ● Have you saved up for closing costs? Typically 0-2% ● Can you rent for less?
    10. 10. Understanding the Market
    11. 11. Slide 11 of 55 Case-Shiller: Los Angeles Area v. 20-City 0.00 50.00 100.00 150.00 200.00 250.00 300.00 Los Angeles 20-City Composite
    12. 12. Case-Shiller – By the Numbers ● Los Angeles Area Up 18.8% year-over-year Peak was September 2006 Down 32% from peak Currently at February 2004 and October 2008 prices ● 20-City Composite Up 12.1% year-over-year Peak was July 2006 Down 28% from peak Currently at and September and October 2010 prices
    13. 13. Story of 2013: Low Inventory
    14. 14. Story of 2013: Rising Prices
    15. 15. Orange County Area Overview
    16. 16. Where Is the Market Headed? ● Supply of homes is at a five-year low and won’t increase much more this year ● Even with rising interest rates, in most areas of Orange County it is still cheaper to buy than it is to rent, making buying more attractive ● Market stabilized – price increases in many areas ● Rate increases - biggest potential issue for buyers
    17. 17. Never Miss A Home
    18. 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. 19. Never Miss a Home
    20. 20. Choosing the Right Agent
    21. 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 complaint? ● How are you paid? ● Can I see some reviews of your work?
    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. 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
    26. 26. Slide 26 of 55 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
    27. 27. Mortgages Craig C. Huston Skyline Home Loans 949-943-4122 chuston@skylinehl.com
    28. 28. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    29. 29. Get Pre-Approved Early A pre-approval letter is a letter from a bank or a lender estimating how much they'll lend you (May vary from what you want to pay monthly) ● 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 (Credit reports are good for 90 days) Info needed: ● W-2, 2 years tax returns, 1 month of pay-stubs, asset statements (Show all funds used to close loan)
    30. 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% for home. 45% for all debt. ● 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. 31. 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 ● Seek a soft pull of your credit first! ● Disputes typically take 30 days and can potentially save you thousands!
    32. 32. Start Shopping for Lenders Compile a list of 2-3 local lenders – Best to research lenders well in advance of offer being accepted. Don’t just look for best rate, look for communication and trust levels. Someone that holds your hand through the process can be much more valuable than an online source. Good sources include: ● Referrals from your agent ● Redfin's partner lenders ● Referrals from friends, family & co-workers ● Online review sites, such as Yelp, and of course the Redfin Open book ● Local chains and offices *Know your lender
    33. 33. 10-Minute Break 10 mins 5 mins End Let’s Get Started!
    34. 34. Short Sales and Bank Owned
    35. 35. 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
    36. 36. What is a Bank-Owned Property(REO)? ● 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
    37. 37. Making an Offer
    38. 38. 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
    39. 39. 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
    40. 40. Acceptance to Closing
    41. 41. 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/ Verification of Property ● Closing ● Receive your keys!
    42. 42. 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, know what you are buying Let’s talk about: ● What an inspection contingency covers and doesn’t cover ● Types of inspections
    43. 43. 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 ● Loan ● Termite ● Disclosures ● Inspections
    44. 44. What is Escrow? Escrow is a neutral 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, tax, etc.) • Coordinate the signing appointments for all parties • Receive and disburse funds for closing • Arrange to notify county offices to change ownership
    45. 45. 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
    46. 46. Closing: HUD–1 Settlement
    47. 47. Signing and Closing A few days before closing you will sign your loan documents and have a walk through/ Verification of Property. On closing day, your loan will fund and title will record in your name. Hopefully, you will get your keys that day too.
    48. 48. Selling Your Home with Redfin
    49. 49. ● 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 (or $5,500) ► Professional photos paid for by Redfin ► Beautiful flyers paid for by Redfin We’ve helped over 50 people sell their homes in the last six months. Better Service, Lower Fees
    50. 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
    51. 51. Thanks for Coming! Questions? Get in touch: Jacob Bruce jacob.bruce@redfin.com Craig Huston chuston@skylinehl.com Check out our upcoming classes: http://www.redfin.com/events
    52. 52. All Done!

    ×