Redfin's Arlington Home Buying Class 10. 17. 13

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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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  • [REQUIRED]Add Lender’s name if he/she’s presenting
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  • [REQUIRED – Update with local lender]
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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…
  • Redfin's Arlington Home Buying Class 10. 17. 13

    1. 1. Redfin’s Home Buying Class Redfin’s Arlington Team October 17, 2013 Arlington, VA Host: Rob Wittman Follow: @Redfin Like: http://www.facebook.com/Redfin
    2. 2. Rob Wittman, Arlington Agent ● I have been a real estate agent since 2004 ● I have helped 75 people buy or a sell a home in Arlington since working for Redfin!  Enough about me! Meet my 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 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 $7,000 on Average
    6. 6. Understanding the Buying Process
    7. 7. Overview of 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
    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. Case-Shiller: DC Area v. 20-City 300.00 250.00 200.00 150.00 100.00 50.00 0.00 Slide 11 of 55
    12. 12. Case-Shiller – By the Numbers Case-Shiller: DC Area Up 5.7% year-over-year Peak was May 2006 Down 25.5% from peak Currently at October 2004 prices Case-Shiller: 20-City Composite Up 12.1% year-over-year Peak was July 2006 Down 26.2% from peak Currently at February 2004 prices
    13. 13. Story of 2013: Low Inventory
    14. 14. Story of 2013: Rising Prices
    15. 15. Arlington Area Overview
    16. 16. Where Is the Market Headed? ● Supply of homes is at a five-year low and hasn’t increased as much as buyers would like ● Foreclosures drove price declines, for the most part that is no longer relevant in our area ● Rents have been rising, making buying more attractive ● Market stabilized – price increases in many areas ● Interest Rate increases - biggest potential issue for buyers
    17. 17. Never Miss A Home
    18. 18. 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
    19. 19. Never Miss a Home
    20. 20. Choosing the Right Agent
    21. 21. 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 complaint? How are you paid? Can I see some reviews of your work?
    22. 22. Redfin Agent Reviews
    23. 23. 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
    24. 24. Seeing Homes in Person
    25. 25. Making the Most of Your Tour 1. 2. 3. 4. 5. 6. 7. 8. 9. Bring a camera, notebook & tape measure See how much sunlight the place gets Check the bathrooms for rot & mold Look for wavy or discolored siding Make sure water drains away from house Take stock of storage space Turn off any music playing in house Check for hardwood floors Peek into the attic 10. 11. 12. 13. 14. 15. Bring a marble or a golf ball 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
    26. 26. 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 26 of 55
    27. 27. Mortgages
    28. 28. 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
    29. 29. 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
    30. 30. 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
    31. 31. Current Average Rates Type of Loan October 10, 2013 October 3, 2013 30-Year Fixed 4.23% 4.22% 15-Year Fixed 3.31% 3.29% 5/1 ARM 3.05% 3.03% 1-Year ARM 2.64% 2.63%
    32. 32. 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
    33. 33. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    34. 34. Short Sales and Bank Owned
    35. 35. 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
    36. 36. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender ● Standard sale but: ► Long response times ► Repairs unlikely ► Legal addenda may require an attorney ► Limited or no disclosures ► Banks demand use of their own contracts ► Bank agreement can be very one-sided ► Earnest money deposit usually held by listing agent
    37. 37. Making an Offer
    38. 38. 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
    39. 39. 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
    40. 40. Acceptance to Closing
    41. 41. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 1-3%+ Inspection – $350-$1,200 Other inspections – radon, lead etc. Loan application – 7days or less Title review Appraisal – 21 days Loan approval – 21 days Walk through Closing Receive your keys!
    42. 42. 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
    43. 43. 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 ● Financing ● Other ► Lead, mold, sale of home, etc
    44. 44. Title Companies ● When working with Redfin, the title company 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
    45. 45. Signing and Closing Before closing you will have a walk through to ensure the home is in substantially the same condition. On closing day, you’ll get your keys and probably take possession of your new home.
    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 We’ve helped over 50 people sell their homes in the last six months.
    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: Rob Wittman rob.wittman@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

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