Redfin Home Buying Class
Lisa Padilla
Redfin San Diego
December 9, San Diego, CA

@Redfin
facebook.com/Redfin
Lisa Padilla – San Diego, Mission
Valley, Downtown, Chula Vista
● Agent for 13 years
● Closed 43 with homes with
Redfin an...
San Diego City Team

Tamara Markey
San Diego, Downtown,
Chula Vista

Chris Priola
San Diego
Agenda
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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
Story of 2013: Low Inventory
San Diego Area Overview
San Diego Market Trends – October
●
●
●
●
●

Prices up 17.6% YoY, down 2.5% MoM
# homes sold down 9.0% YoY, up 4.1% MoM
# ...
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

● Insi...
Never Miss a Home
Choosing the Right Agent
Redfin Agent Reviews
What to Ask Any Agent
●
●
●
●
●
●
●

Is this your full-time job?
Where were your last five deals?
Who else will be working...
Redfin Partner Program
Partner agents are employed by other brokerages, and have
teamed up with us to provide Redfin-certi...
Seeing Homes in Person
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 pl...
How Touring with Redfin Works
● Led by agent or associate
agent
● Up to six homes per tour in
two hour blocks
● Go on as m...
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...
Types of Loans
● Conventional:
► As low as 5% down
► Fixed or adjustable rates, conforming or non-conforming
● Federal Hou...
Start Shopping for Lenders
Compile a list of 3-4 local lenders
Good sources include:
● Redfin's partner lenders
● Referral...
Local Recommended Lenders

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

10 mins

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
● Standard sale but:
► Verbal negotiations
► ...
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
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?
• ...
Title Companies
●
●
●
●

Prepares the final documents, including the HUD-1
Conducts the closing
Examines and clears the ti...
Closing: HUD–1 Settlement
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...
All Done!
So What Now?
●
●
●
●
●
●
●

Make sure it’s the right time for you
Start browsing online
Check out our Home Buying Guide
Fi...
Thanks for Coming!
Questions? Get in touch:
Lisa Padilla
lisa.padilla@redfin.com

Check out our other upcoming classes:
ww...
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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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  • [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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  • [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!
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  • [Required]Add visual
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  • 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 - San Diego, CA

    1. 1. Redfin Home Buying Class Lisa Padilla Redfin San Diego December 9, San Diego, CA @Redfin facebook.com/Redfin
    2. 2. Lisa Padilla – San Diego, Mission Valley, Downtown, Chula Vista ● Agent for 13 years ● Closed 43 with homes with Redfin and 500+ career ● Specialize in: First Time Home Buyers, Condos/Urban, High End, Single Family, Short Sales. ● Services: San Diego City ● Lives in North Park  Enough about me! Meet my team…
    3. 3. San Diego City Team Tamara Markey San Diego, Downtown, Chula Vista Chris Priola San Diego
    4. 4. 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
    5. 5. 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
    6. 6. Save $4,000 on Average
    7. 7. Understanding the Buying Process
    8. 8. 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
    9. 9. Are You Ready to Buy?
    10. 10. 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?
    11. 11. Understanding the Market
    12. 12. Story of 2013: Low Inventory
    13. 13. San Diego Area Overview
    14. 14. San Diego Market Trends – October ● ● ● ● ● Prices up 17.6% YoY, down 2.5% MoM # homes sold down 9.0% YoY, up 4.1% MoM # homes for sale decreased 7.0% YoY, down 6.1% MoM 63.0% homes faced competition 28.9% sold in 2 weeks ● Winning Offers: ► 25.6% sold over asking ► 20.0% included a cover letter ► 6.7% were all cash
    15. 15. Never Miss A Home
    16. 16. 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
    17. 17. Never Miss a Home
    18. 18. Choosing the Right Agent
    19. 19. Redfin Agent Reviews
    20. 20. 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?
    21. 21. Redfin 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
    22. 22. Seeing Homes in Person
    23. 23. 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
    24. 24. 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
    25. 25. Mortgages
    26. 26. 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
    27. 27. 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
    28. 28. 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
    29. 29. 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
    30. 30. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    31. 31. 10-Minute Break 10 mins 5 mins Let’s Get Started! End
    32. 32. Short Sales and Bank-Owned
    33. 33. 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
    34. 34. 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
    35. 35. Making an Offer
    36. 36. 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
    37. 37. 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
    38. 38. Acceptance to Closing
    39. 39. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 1-3%+ Inspection – approximately $500 Other inspections – sewer scope, septic, foundation, etc. Loan application – 5 days or less Appraisal Loan approval Document signing Walk through Closing Receive your keys!
    40. 40. 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
    41. 41. 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
    42. 42. 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
    43. 43. 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
    44. 44. Closing: HUD–1 Settlement
    45. 45. 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.
    46. 46. Selling Your Home with Redfin
    47. 47. 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
    48. 48. All Done!
    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. Thanks for Coming! Questions? Get in touch: Lisa Padilla lisa.padilla@redfin.com Check out our other upcoming classes: www.redfin.com/events

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