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Redfin Home Buying Class
South Bay Los Angeles Team
November 6th
Manhattan Beach, CA
Redfin’s Team for South Bay
● Specializing in:
► First Time Home Buyers
► Condos, Town Homes
► Single Family
► Move-Up - L...
The South Bay Team
Experienced Agents
Diana DuPre
Closed 58+ homes

Orlando Ford
Closed 50+ homes

Ryan Stires
Closed 6 ho...
Agenda
●
●
●
●
●
●
●
●
●
●

A little about Redfin
Buying Process
Are you ready to buy?
The Local Market
Finding 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
Buying A Home
Overview of a Buying a Home
Research

Search

Offer

Escrow

Your needs

Define Preferences

Comparables

Earnest money

T...
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...
The Market
Story of 2013: Low Inventory
Story of 2013: Rising Prices
Manhattan Beach
Redondo Beach
Torrance
El Segundo
Hawthorne
Where Are Rates Headed?
Type of Loan

October 24, 2013

October 17, 2013

30-Year Fixed

4.13%

4.28%

15-Year Fixed

3.24...
September Market Trends – Los Angeles
● Prices up 23.4% YoY, down 1.1% MoM
● # homes sold down 1.8% YoY, down 17.0% MoM

●...
Where Is the Market Headed?
● Supply of homes is at a five-year low and won’t increase
much more this year
● Foreclosures ...
Finding A Home – Tips
for using Redfin
Real Estate Sites: What to Look For
● Has all the homes for sale
● Updated every 15 minutes
● Real-time sales data

● Insi...
Redfin Instant Alerts – Sign Up!
Working with Redfin Agents & the
Team
● Agent 1st Tour
● Associate Agent or Agent
as you continue your
search
● See six ho...
Tips for looking at homes:
1.
2.
3.
4.
5.
6.
7.
8.

Bring a camera, notebook & tape measure
See how much sunlight the plac...
How to Choose an Agent
Ask Questions:
●
●
●
●
●
●
●

Is this your full-time job?
Where were your last five deals?
Who else will be working with m...
Redfin - Agent Reviews
Redfin Partner Program
Partner agents are employed by other brokerages, and have
teamed up with us to provide Redfin-certi...
Mortgages
Financing
Pre-approval letter: a letter from a bank or a lender estimating how
much they'll lend you
● Establishes what yo...
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
● For your offer you only need one pre-approval, once your
offer is accepted, you have about 24...
Open Book
Local Recommended Lenders

In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re gre...
10-Minute Break
● Feel free to come ask us questions!

10 mins

5 mins

Let’s Get Started!

End
Short Sales and REOs
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 an REO or Bank-Owned
Property?
● A foreclosed home owned by a bank or lender
● Standard sale but:
► Verbal negotia...
Offer Writing Tips
Where to start:
● Evaluate – your agent will provide you with information
about market conditions and recent sales in the ...
Tips for Winning
1. Simply have the best offer.
► Cash is King
► Don’t count on a counter
► Tighten your timelines
► Remov...
ESCROW – What is it?
What is Escrow?
Escrow is a third party intermediary that represents neither the
buyer nor the seller.
What do they do?
• ...
Your Offer has been Accepted!
● Day 1: The day after mutual acceptance, escrow opens
● Timeline for escrow: 30 to 45 calen...
What are Contingencies?
Standard timeline for contingencies: 17 days

● Inspection
► Title, disclosures, home inspection, ...
Home Inspection
We recommend that you have a home inspection

● Cost runs $350 to $1,200 depending upon the home’s size
● ...
Escrow - Day 17 to Closing
● Removing Contingencies (usually by Day 17)
● One week prior to closing date:
► Appointment to...
HUD–1 Settlement
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
Check out our Home Buying Guide
Find the right agent
Look ...
Thanks for Coming!
Questions? Get in touch:
Michelle Zabukovec
michelle.zabukovec@redfin.com
Diana DuPre
diana.dupre@redfi...
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Redfin's Free Home Buying Class - SB Los Angeles, CA

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  • [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
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  • [REQUIRED – Updated every time]
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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 – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [REQUIRED – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [REQUIRED – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [REQUIRED – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/
  • [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.
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  • [REQUIRED]Add visual
  • [OPTIONAL – cut or skip this slide if not relevant for your market or class]
  • [REQUIRED]Add Lender’s name if he/she’s presenting
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  • [REQUIRED – Update with local lender]
  • [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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  • OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
  • [Required]Add visual
  • [REQUIRED]Add visual
  • [Required]Add visual
  • 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
  • Notes from Matt:- Update this slide so it is easier to read
  • We’ll stick around…
  • Transcript of "Redfin's Free Home Buying Class - SB Los Angeles, CA"

    1. 1. Redfin Home Buying Class South Bay Los Angeles Team November 6th Manhattan Beach, CA
    2. 2. Redfin’s Team for South Bay ● Specializing in: ► First Time Home Buyers ► Condos, Town Homes ► Single Family ► Move-Up - Listings ● Why Redfin? Client comes first! Michelle Zabukovec Closed 112+ homes with Redfin clients
    3. 3. The South Bay Team Experienced Agents Diana DuPre Closed 58+ homes Orlando Ford Closed 50+ homes Ryan Stires Closed 6 homes this year
    4. 4. Agenda ● ● ● ● ● ● ● ● ● ● A little about Redfin Buying Process Are you ready to buy? The Local Market Finding a Home Choose An Agent Mortgages – with Davis Fretwell Short Sales & REOS Make An Offer Escrow
    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
    6. 6. Save $4,000 on Average
    7. 7. Buying A Home
    8. 8. Overview of a Buying a Home Research Search Offer Escrow Your needs Define Preferences Comparables Earnest money The market Instant Alerts Make an Offer Inspection Neighborhoods Open houses Negotiate Loan Contingency Agents Home tours Mutual acceptance ESCROW Mortgages Appraisal Preapproval Loan 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. The Market
    12. 12. Story of 2013: Low Inventory
    13. 13. Story of 2013: Rising Prices
    14. 14. Manhattan Beach
    15. 15. Redondo Beach
    16. 16. Torrance
    17. 17. El Segundo
    18. 18. Hawthorne
    19. 19. Where Are Rates Headed? Type of Loan October 24, 2013 October 17, 2013 30-Year Fixed 4.13% 4.28% 15-Year Fixed 3.24% 3.33% 5/1 ARM 3.00% 3.07% 1-Year ARM 2.60% 2.63%
    20. 20. September Market Trends – Los Angeles ● Prices up 23.4% YoY, down 1.1% MoM ● # homes sold down 1.8% YoY, down 17.0% MoM ● # homes for sale decreased 11.8% YoY and 4.0% MoM ● 72.2% homes faced competition, 34.5% sold over asking
    21. 21. 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. ● Rents have been rising, making buying more attractive ● Market stabilized – price increases in many areas ● Rate increases – COMPETITION – two biggest issues for buyers
    22. 22. Finding A Home – Tips for using Redfin
    23. 23. 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
    24. 24. Redfin Instant Alerts – Sign Up!
    25. 25. Working with Redfin Agents & the Team ● Agent 1st Tour ● Associate Agent or Agent as you continue your search ● See six homes per appointment ● Your schedule ● Unlimited – see as many homes as it takes! ● No pressure Slide 25 of 55
    26. 26. Tips for looking at homes: 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
    27. 27. How to Choose an Agent
    28. 28. Ask Questions: ● ● ● ● ● ● ● 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 or read referral letters of past clients?
    29. 29. Redfin - Agent Reviews
    30. 30. 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
    31. 31. Mortgages
    32. 32. Financing Pre-approval letter: a letter from a bank or a lender estimating how much they'll lend you ● Establishes what you can afford & completes your offer package ● Redfin asks that you get pre-approved before your third tour ● Good for 90 to 120 days, depending on lender Info needed: ● W-2, two pay-stubs, tax returns, bank statements ● Are you self-employed? ● Are you receiving gift funds?
    33. 33. 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 ● Employment – thinking of switching jobs?
    34. 34. 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
    35. 35. Start Shopping for Lenders ● For your offer you only need one pre-approval, once your offer is accepted, you have about 24 to 48 hours to choose the lender. ● ● ● ● Redfin Open Book Referrals from friends, family & co-workers Online review sites, such as Yelp Local lenders – benefits!
    36. 36. Open Book
    37. 37. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    38. 38. 10-Minute Break ● Feel free to come ask us questions! 10 mins 5 mins Let’s Get Started! End
    39. 39. Short Sales and REOs
    40. 40. 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 ● Get a 15% commission refund
    41. 41. What is an REO or 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
    42. 42. Offer Writing Tips
    43. 43. Where to start: ● 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 ● Common contingencies & terms: ► Earnest Money – 3% ► Inspection – 17 days ► Financing – 17 days ► Appraisal – 17 days
    44. 44. Tips for Winning 1. Simply have the best offer. ► Cash is King ► Don’t count on a counter ► 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, picture, move FAST
    45. 45. ESCROW – What is it?
    46. 46. 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
    47. 47. Your Offer has been Accepted! ● Day 1: The day after mutual acceptance, escrow opens ● Timeline for escrow: 30 to 45 calendar days ● Earnest money deposit – usually 1-3%+ ● Contingencies begin: Inspection, Loan and Appraisal
    48. 48. What are Contingencies? Standard timeline for contingencies: 17 days ● Inspection ► Title, disclosures, home inspection, termite report ● Appraisal ► Performed in conjunction with financing ● Loan
    49. 49. Home Inspection We recommend that you have a home inspection ● Cost runs $350 to $1,200 depending upon the home’s size ● Your agent will accompany you ● Your time to evaluate the property, bring notepad, ask questions ● Specialized inspections based on what is found at the home inspection ► Mold inspection, sewer line scope, foundation inspection
    50. 50. Escrow - Day 17 to Closing ● Removing Contingencies (usually by Day 17) ● One week prior to closing date: ► Appointment to sign documents ► Walk through home one last time ● Loan funds – day before scheduled close date ● Title records – last day of escrow ● Receive your keys!
    51. 51. HUD–1 Settlement
    52. 52. Selling Your Home with Redfin
    53. 53. 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
    54. 54. So What Now? ● ● ● ● ● ● Make sure it’s the right time for you 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 offers and find your dream home!
    55. 55. Thanks for Coming! Questions? Get in touch: Michelle Zabukovec michelle.zabukovec@redfin.com Diana DuPre diana.dupre@redfin.com Orlando Ford orlando.ford@redfin.com Ryan Stires ryan.stires@redfin.com Check out our upcoming classes: http://www.redfin.com/events
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