Redfin's Free Home Buying Class - San Diego, CA
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Redfin's Free Home Buying Class - San Diego, CA

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  • [REQUIRED – please add the main presenter’s photos]
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  • [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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  • Replace with just sold per sq foot.
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  • Update to RPQAgents should use this slide to talk about what they’re seeing on the streetTell some stories!
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  • 1 in 80 people in CA has their RE license!!Add visual
  • Min 199k
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  • Don’t elaborate on this too much. A first tour should be just to get a general idea of the house.
  • [REQUIRED]Add Lender’s name if he/she’s presenting
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  • Move to mortgage http://www.freddiemac.com/pmms/
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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!
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  • Add cut facing DR slideAdd visual
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  • OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
  • OPTIONALThis is different by market so we should have different slides for each.
  • 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 - San Diego, CA Redfin's Free Home Buying Class - San Diego, CA Presentation Transcript

  • Redfin’s Home Buying Class Redfin’s Inland San Diego Team September 26, San Diego, CA @Redfin facebook.com/Redfin
  • Reina Acuna – Team Lead ● Agent for 6 years ● Specialize in: First Time Home Buyers, Condos, town houses, Single Family, REO’s, Short Sales. ● Services: Escondido, Rancho Bernardo, Poway, Rancho Penasquitos ● Lives in Rancho Bernardo (4S Ranch)
  • 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 View slide
  • 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  Video View slide
  • Save $4,000 on Average
  • Introducing: Anisio Resem Redfin Home Buyers
  • Understanding the Buying Process
  • 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
  • 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? ● 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?
  • Understanding the Market
  • Slide 12 of 55 0.00 50.00 100.00 150.00 200.00 250.00 300.00 Case-Shiller: San Diego v. 20-City San Diego 20-City Composite
  • Case-Shiller – By the Numbers San Diego Up 14.7% year-over-year Peak was November 2005 Down 30% from peak Currently at June 2003 and June 2010 prices 20-City Composite Up 12.1% year-over-year Peak was July 2006 Down 26% from peak Currently at and September and October 2010 prices
  • Story of 2013: Rising Prices
  • Story of 2013: Low Inventory
  • San Diego Area Overview
  • What trends are we noticing? ● Bidding wars in San Diego cooled the most in July with above 10 percentage point drop to 71.1% from 81.9% ● Why? ► Buyer fatigue: buyers are growing tired from losing bidding wars and are pulling back for now ► Budget: Rising prices and mortgage rates continues to price buyers out of the market, reducing competition for available inventory. Nationally, the median home price per square foot for single-family homes was up 18.7%. ► Growing inventory: Rising prices and mortgage rates are also driving homeowners to list their homes in greater numbers. ► Summer vacation: distracted some buyers from house hunting in July.
  • Jeremy Paul – Agent ● Agent for 3 years ● Specialize in: First Time Home Buyers, Condos, town houses, Single Family. ● Services: Escondido, Rancho Bernardo, Poway, Rancho Penasquitos ● Lives in Rancho Penasquitos
  • 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 ● Insights from agents ● Lots of data ● Mobile apps
  • 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? ● 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?
  • Redfin Agent Reviews
  • 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
  • Seeing Homes in Person
  • Slide 27 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
  • Slide 28 of 55 Redfin’s Associate Agents Greyson Barbour Laura Byrne Nuala Evans Anthony Palomarez Joni Philips
  • Making the Most of Your Tour 1. Bring a camera, notebook & tape measure 2. See how much sunlight the place gets 3. Look for wavy or discolored wood siding 4. Make sure water spouts drain away from house 5. Take stock of storage space 6. Turn off any music playing in house 7. Check for hardwood floors 8. Ignore the appliances and carpets 9. Check the closets 10. Compare the property’s tax records to the listing details
  • Mortgages
  • Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  • 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
  • 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
  • Where Are Rates Headed? Type of Loan July 11, 2013 July 18, 2013 30-Year Fixed 4.51% 4.37% 15-Year Fixed 3.53% 3.41% 5/1 ARM 3.26% 3.17% 1-Year ARM 2.66% 2.66%
  • Types of Loans ● Conventional: ► As low as 5% down ► Fixed or adjustable rates, conforming or non-conforming ● Federal Housing Administration Loan (FHA): ► Always have mortgage insurance ► Buyers need only a 3.5% down payment ● VA Guaranteed Loan: ► Veterans, active duty personnel, reservists/national guard, surviving spouses ► No down payment ● Ask your lender if they have special loan programs ► Example: BB&T Chips Program
  • 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
  • Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  • 10-Minute Break 10 mins 5 mins End Let’s Get Started!
  • Kyle Crabb – San Diego ● Agent for 12 years ● Specialize in: First Time Home Buyers, Condos, town houses, Single Family, REO’s, Short Sales. ● Services: Escondido, Rancho Bernardo, Poway, Rancho Penasquitos ● Lives in Carmel Valley
  • 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 ● 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
  • 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
  • Making an Offer
  • 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
  • Tips for Winning a Bidding War 1. Just win, baby! Simply have the best offer. ► Cash is King ► Escalate your price? ► Tighten your timelines 2. Get pre-approved with a local lender 3. What’s important to the seller? 4. Write a letter & appeal to the seller
  • Acceptance to Closing
  • 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 ● Closing ● Receive your keys!
  • 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
  • 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 ● Other
  • 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 What is title? ● 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
  • Customer Deal Room
  • 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.
  • Selling Your Home with Redfin
  • ● 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. Better Service, Lower Fees
  • All Done!
  • 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: Reina Acuna Reina.Acuna@redfin.com Kyle Crabb Kyle.Crabb@redfin.com Jeremy Paul Jeremy.Paul@redfin.com Check out our upcoming classes: http://www.redfin.com/events