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Austin contract class 7.18.12


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Austin contract class 7.18.12

  1. 1. Redfin Contract ClassJuly 18, 2012 Austin, TXFollow: @RedfinAustinLike:
  2. 2. A Little Bit About Who We AreRedfin is a real estate brokerage that has helped over20,000 people buy or sell a home; 97% would refer usto a friend. Customers, not commissions Informed decisions The right home for the right price No obligation Get back up to 45% of our commission
  3. 3. Benefits of a MLS Powered Site All the homes for sale: 30% more listings You see what the agent sees: 4x the data Real-time market data: photos, details of just-sold homes
  4. 4. To Buy or Not to Buy
  5. 5. Why You Should Buy a Home● You have a family and need room to grow● You expect to stay put for 5 or more years● You want a home that is difficult to rent● You’re handy & and ready to invest● You’ve saved up a down payment
  6. 6. Why You Shouldn’t Buy a Home You don’t have a good reason like family or schools You can’t afford the down payment You can rent for much less You plan on moving soon You’re worried about job security
  7. 7. Making an Offer
  8. 8. Completing the Offer Wizard
  9. 9. Completing the Offer Wizard
  10. 10. Completing the Offer Wizard
  11. 11. Completing the Offer Wizard
  12. 12. Offer DocumentationTo submit an offer we need to include severaldocuments: Pre-approval Letter Proof of Down Payment Funds Copy of an Earnest Money Deposit Check Optional: FICO (credit) Scores Other forms: RELO Addendum; REO Addm. etc.
  13. 13. Offer Forms
  14. 14. Offer FormsDisclaimer: The scope of this class is to discuss theprocess for drafting an offer to purchase a home, thedocuments involved and the strategies for getting anoffer accepted.The presenter is not a real estate attorney. Questionspertaining to the legal ramifications of the followingcontracts should be directed to a real estate attorney.
  15. 15. Offer FormsRedfin Buyer Representation Agreement (RBRA) Establishes the representation relationship between you (Buyer) and Redfin Documents expectations of Redfin and you, the Buyer Protects Redfin’s claim to a commission Establishes the buyer’s Redfin refund policyWho signs this document: Buyer and Buyer’s Agent (Selling Agent)
  16. 16. Offer FormsDisclosure And Consent For Representation OfMore Than One Buyer Or Seller (C.A.R. From DA) Discloses that the Broker (Redfin) may representboth the Buyer and Seller in a transaction. An individual Redfin Orange County agent will NOTrepresent both the Buyer and the Seller in any onetransaction.Who signs this document: Buyer and Buyer’s Agent (Selling Agent)
  17. 17. Offer FormsMarket Conditions Advisory (C.A.R. Form MCA) Advises Buyer about determining the price to offer Warns Buyer about the importance of contingencies Warns Buyer about the risk of writing multiple offersWho signs this document: Buyer and Buyer’s Agent (Selling Agent)
  18. 18. Offer FormsDisclosure Regarding Real Estate AgencyRelationship (C.A.R. Form AD) Defines agency representation and relationships Describes the fiduciary duty expected of real estateagentsWho signs this document: Buyer and Buyer’s Agent (Selling Agent) Seller
  19. 19. Offer FormsResidential Purchase Agreement (C.A.R. Form RPA) Main offer form that contains terms including: Offer price and terms Closing cost splits Contingency periods Etc…Who signs this document: Buyer and Buyer’s Agent (Selling Agent) Seller and Seller’s Agent (Listing Agent)
  20. 20. Offer FormsBuyer’s Inspection Advisory (C.A.R. Form BIA) Advises Buyer to conduct thorough homeinspections Outlines the importance of proper inspection of manydifferent parts of the home and it’s surroundingsWho signs this document: Buyer Seller
  21. 21. Offer FormsWood Destroying Pet Inspection And Allocation OfCost Addendum (C.A.R. Form WPA) Outlines who is responsible for procuring and payingfor a Wood Pest Report Establishes who is responsible for correctingconditions discovered by Wood Pest Report Section 1 & Section 2 conditionsWho signs this document: Buyer Seller
  22. 22. Short-Sales & Bank Owned
  23. 23. Offer FormsREO Advisory (C.A.R. Form REO) Informs Buyer of Seller exemptions in a bank ownedtransaction Establishes what is still required of the Seller Recommends Buyer have any addendums oramendments provided by Seller be reviewed by legalcounselWho signs this document: Buyer Seller
  24. 24. Offer FormsShort Sale Addendum (C.A.R. Form SSA) Establishes timelines regarding short sale approvaland contingencies Outlines expectations of Buyer and Seller regardingshort sale approval periodWho signs this document: Buyer Seller
  25. 25. Offer FormsShort Sale Information And Advisory (C.A.R. FormSSIA) Defines short sale Informs Buyer and Seller of the alternatives to a shortsale Discloses the difficulties that may arise during a shortsale transactionWho signs this document: Buyer and Buyer’s Agent (Selling Agent) Seller and Seller’s Agent (Listing Agent)
  26. 26. Offer FormsBank Addendums / Amendments / Counter Offers Often added to bank owned (REO) transactions Modify terms of the RPA and may limit the bank’sliability Often add daily per diem if Buyer closes late Redfin can’t provide guidance or opinion on bankaddendums, attorney review is strongly encouraged
  27. 27. Other Forms
  28. 28. Other FormsRequest For Repair (C.A.R. Form RR) Used to ask the Seller to fix or credit Buyer forconditions discovered during the inspection period Seller is NOT obligated to fix items other than asrequired by local law RPA states property is sold in ‘As-Is’ condition
  29. 29. Other FormsContingency Removal (C.A.R. Form CR) Removes some or all of Buyer’s contingencies andcommits Buyer to the purchase If Buyer cancels transaction after removingcontingencies deposit may be at risk Should not be signed until Buyer is confident in theirability to close and satisfied with any terms agreedupon during negotiations
  30. 30. Questions? Writing Class March 27, 2012 – Irvine, CA
  31. 31. Thank You!