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Redfin’s Home Buying Class
Redfin’s South Arlington Team
March 13, 2014 Arlington, VA
Host: David Le
@Redfin
facebook.com/...
Meet Redfin’s South Arlington Team
Agenda
● Overview of the process
● Are you ready to buy?
● Understanding the market
● Never miss a home
● Choosing an agen...
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 Buying a Home
Research
Your needs
The market
Neighborhoods
Agents
Mortgages
Preapproval
Search
Define Preferen...
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?
● Hav...
Understanding the
Market
Current Market: Low Inventory
Current Market: Rising Prices
South Arlington Area Overview
Where Is the Market Headed?
● Supply of homes is at a five-year low and won’t increase
much more this year
● Rents have be...
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
● Insig...
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?...
Redfin Agent Reviews
Redfin’s Partner Program
Partner agents are employed by other brokerages, and have
teamed up with us to provide Redfin-cer...
Seeing Homes in Person
Making the Most of Your Tour
1. Bring a camera, notebook & tape measure
2. See how much sunlight the place gets
3. Check t...
Slide 24 of 55
How Touring with Redfin Works
● Led by agent or associate
agent
● Up to six homes per tour in
two hour bloc...
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...
Pulling Credit: Is It Harmful?
● Your credit report must be reviewed by a lender before you
can obtain a pre-approval
● If...
Current Average Rates
Type of Loan March 6, 2014 February 27, 2014
30-Year Fixed 4.28% 4.37%
15-Year Fixed 3.32% 3.39%
5/1...
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 grea...
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
● Other inspection...
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?
A Seller has accepted an offer from a Buyer, but success may
still depend on various events contai...
What do Title Companies do?
● Typically holds the earnest money deposit
● Prepares the final documents, including the HUD-...
Signing and Closing
- Within a couple days prior to settlement, you have the
chance to conduct a walk-through to make sure...
Selling Your Home
with Redfin
● We’re on your side
► Agents paid on your satisfaction
► You’re backed by a whole team
● Double your exposure
► Premium p...
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 ...
Thanks for Coming!
Questions? Get in touch:
David Le david.le@redfin.com
Scott Sabey scott.sabey@redfin.com
Jazman Jackson...
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Redfin's Free Home Buying Class - Arlington, 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 offer price not the sales 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]
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  • [REQUIRED]Add visual
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  • 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…
  • Transcript of "Redfin's Free Home Buying Class - Arlington, CA"

    1. 1. Redfin’s Home Buying Class Redfin’s South Arlington Team March 13, 2014 Arlington, VA Host: David Le @Redfin facebook.com/Redfin
    2. 2. Meet Redfin’s South Arlington Team
    3. 3. 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
    4. 4. 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
    5. 5. Save $4,000 on Average
    6. 6. Understanding the Buying Process
    7. 7. Overview of 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
    8. 8. Are You Ready to Buy?
    9. 9. 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? 3.0% to 20+% ● Have you saved up for closing costs? Typically 0-2.5% ● Can you rent for less?
    10. 10. Understanding the Market
    11. 11. Current Market: Low Inventory
    12. 12. Current Market: Rising Prices
    13. 13. South Arlington Area Overview
    14. 14. Where Is the Market Headed? ● Supply of homes is at a five-year low and won’t increase much more this year ● Rents have been rising, making buying more attractive ● Market stabilized – price increases in many areas ● Rate increases - biggest potential issue for buyers
    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. 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?
    20. 20. Redfin Agent Reviews
    21. 21. 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
    22. 22. Seeing Homes in Person
    23. 23. 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 house 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 listing details
    24. 24. Slide 24 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
    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. 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
    29. 29. Current Average Rates Type of Loan March 6, 2014 February 27, 2014 30-Year Fixed 4.28% 4.37% 15-Year Fixed 3.32% 3.39% 5/1 ARM 3.03% 3.05% 1-Year ARM 2.52% 2.52%
    30. 30. 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
    31. 31. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    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 ► Title Review
    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 – radon, lead etc. ● Loan application – 7days or less ● Title review ● Appraisal ● Loan approval ● Walk through ● Closing and 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? A Seller has accepted an offer from a Buyer, but success may still depend on various events contained within the contract. Types of Contingencies: ● Appraisal ● Financing ● Home Inspection ● Sale of the Buyer’s home ● HOA/Condo Document Review ● Other
    42. 42. What do Title Companies do? ● Typically holds the earnest money deposit ● Prepares the final documents, including the HUD-1 ● Conducts the closing ● Receive and disburse funds for closing ● Arrange for pay off of any liens (sellers’ mortgage, taxes, etc) ● 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
    43. 43. Signing and Closing - Within a couple days prior to settlement, you have the chance to conduct a walk-through to make sure the home is in the same condition and to see if any agreed upon repairs are completed. - On the day of closing, you typically get the keys to your new home and you can start unpacking boxes right away!
    44. 44. Selling Your Home with Redfin
    45. 45. ● We’re on your side ► Agents paid on your satisfaction ► You’re backed by a whole team ● Double your exposure ► Premium placement on Redfin ► Zillow, Trulia, Craigslist and Realtor.com ● 1.5% selling side listing fee ► Professional Photographer to document your home ► Beautiful flyers to ‘wow’ people seeing your home ► Open houses that generate results ► No hidden brokerage administrative fees Better Service, Lower Fees
    46. 46. All Done!
    47. 47. 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
    48. 48. Thanks for Coming! Questions? Get in touch: David Le david.le@redfin.com Scott Sabey scott.sabey@redfin.com Jazman Jackson jazman.jackson@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events
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