[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 – 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.
[OPTIONAL – cut or skip this slide if not relevant for your market or class]
[REQUIRED]Add Lender’s name if he/she’s presenting
[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!
OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
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
Redfin’s Home Buying Class
Redfin’s North Orange County Team
August 14 Fullerton, CA
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
● Overview of the process
● Are you ready to buy?
● Understanding the market
● Never miss a home
● Choosing an agent
● Short sales & foreclosures
● Making an offer
● Acceptance to closing
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
● Technology: sellers get more traffic; buyers tour homes first
● Value: a full-service brokerage that saves you thousands
Overview of a Buying a Home
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?
Slide 11 of 55
Case-Shiller: Los Angeles Area v. 20-City
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
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
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?
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
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
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
Slide 26 of 55
How Touring with Redfin Works
● Led by agent or associate
● Up to six homes per tour in
two hour blocks
● Go on as many tours
as you need
● No obligation, no
Craig C. Huston Skyline Home Loans
Local Recommended Lenders
In no way does
lenders – we just
think they’re great
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
● 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)
● W-2, 2 years tax returns, 1 month of pay-stubs, asset
statements (Show all funds used to close loan)
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
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
● Seek a soft pull of your credit first!
● Disputes typically take 30 days and
can potentially save you thousands!
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
10 mins 5 mins End
Let’s Get Started!
What is a Short Sale?
The owner owes more on the mortgage than the home is
● 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
● Redfin partner agents work for other brokerages but share
Redfin’s commitment to customer service
● Get a 15% commission refund
What is a Bank-Owned
● 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
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
► Title Review
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
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
● Loan approval
● Document signing
● Walk through/ Verification of Property
● Receive your keys!
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
Let’s talk about:
● What an inspection contingency covers and doesn’t cover
● Types of inspections
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.
● Appraisal – Performed in conjunction with financing
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
● 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
● Issues title insurance to the lender and the buyer
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.
● 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
Better Service, Lower Fees
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
Thanks for Coming!
Questions? Get in touch:
Jacob Bruce email@example.com
Craig Huston firstname.lastname@example.org
Check out our upcoming classes: