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  • [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!
  • Doug: Courtney and I update this slide to reflect the agent who is presenting and their team.
  • [REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/

Transcript

  • 1. Home Buying 101 Webinar Holland Cohen Redfin’s Tacoma Team December 14th 2013 @Redfin facebook.com/Redfin Slide 1 of 26
  • 2. A Little Bit About Who We Are ● Redfin is a real estate brokerage that has helped over 20,000 people buy or sell a home; 97% would refer us to a friend. ● Customers, not commissions ● Informed decisions ● The right home for the right price ● No obligation ● Get back a portion of our commission Slide 2 of 26
  • 3. Understanding the Buying Process Slide 3 of 26
  • 4. 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 a down payment? Can you rent for less? Slide 4 of 26
  • 5. Overview of a Purchase Research Search Offer Closing Neighborhoods Define Preferences Comparables Earnest Money Real Estate Agents Saved Search Draft Offer Docs Inspection Mortgage Options Home Tours Negotiate Loan application Preapproval Open Houses Mutual Acceptance Title Review Consider your needs Appraisal Financing Approval Closing Slide 5 of 26
  • 6. Understanding the Market Slide 6 of 26
  • 7. Story of 2013: Rising Prices Slide 7 of 26
  • 8. Story of 2013: Low Inventory Slide 8 of 26
  • 9. Tacoma Area Overview Slide 9 of 26
  • 10. What Happens After You Find a Home You Love? Slide 10 of 26
  • 11. What to Ask Any Agent ● ● ● ● ● ● ● ● Is this your full-time job? Familiar with foreclosures or short-sales? Where were your last five deals? Who else will be working with me? Will you show me all properties for sale? When am I committed to working with you? Has a client ever filed a complaint? How are you paid? Slide 11 of 26
  • 12. Traditional vs. Redfin Slide 12 of 26
  • 13. Make Sure She’s a Good Fit Slide 13 of 26
  • 14. Redfin’s Partner Program Partner agents are employed by other brokerages, but have teamed up with us to provide RedfinCertified service to a wider range of customers. We’ll refer you to a partner agent when: ► A home is outside of our direct service area ► A home is below our price minimum ► We’re experiencing an 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 Slide 14 of 26
  • 15. We List Homes, Too! ● More people see your home ► Premium placement on Redfin.com ► Mobile apps target on-the-go buyers ► Professional flyers ● You’ll know it all at every step ► Email all buyers who see your home ► See how many people have viewed your home ► Advise you at every step in the process Slide 15 of 26
  • 16. Mortgages Slide 16 of 26
  • 17. Review Your Financial Situation To Buy or Not to Buy ● 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 Slide 17 of 26
  • 18. Start Shopping for Lenders Compile a list of 3-4 lenders & brokers 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 Slide 18 of 26
  • 19. Getting Pre-Approved 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 ● What’s the difference between Pre-Approval and PreQualification ● Good for 90 days, depending on lender ● Ask for a few different amounts ● Redfin asks that you get pre-approved before your third tour ● Are gift funds involved? ● How much do you have for a down payment? Information needed: ● W-2, two pay-stubs, tax returns, bank statements Slide 19 of 26
  • 20. Comparing Loan Estimates ● Gather loan estimates ► A minimum of three, more is better ► These aren’t final numbers, but within a few thousand dollars ► Compare similar loans  Program (FHA, conventional)  Timeframe (same day) ● Compare costs side-by-side ► Discount & origination points ► Interest rates ► Insurance premiums (FHA, PMI) ► APR (interest rates + fees + points + PMI) Slide 20 of 26
  • 21. 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 Slide 21 of 26
  • 22. Where Are Rates Headed? Type of Loan December 5, 2013 November 27, 2013 30-Year Fixed 4.46% 4.29% 15-Year Fixed 3.47% 3.30% 5/1 ARM 2.99% 2.94% 1-Year ARM 2.59% 2.60% Slide 22 of 26
  • 23. Make Your Decision ● When possible, get a loan commitment ● Make alternative funds liquid (401k, stock) Good news! Loan payments are made in arrears, so your first loan payment won’t be for two months. Slide 23 of 26
  • 24. Next Steps • • • • • • Check out our agents and their reviews Study the inventory and houses in your areas Go out on tour with us, no obligation Ask a lot of questions and see a lot of houses Email me: holland.cohen@redfin.com Check the events page for upcoming classes www.redfin.com/events • Go back to work! Slide 24 of 26