Austin contract class 9.19.12


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Austin contract class 9.19.12

  1. 1. Redfin’s Contract Class September 19, 2012 Austin, TX Follow: @RedfinAustin Like: 1 of 31
  2. 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 commissionSlide 2 of 31
  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 BuySlide 4 of 31
  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 securitySlide 6 of 31
  7. 7. Making an OfferSlide 7 of 31
  8. 8. Completing the Offer WizardSlide 8 of 31
  9. 9. Completing the Offer WizardSlide 9 of 31
  10. 10. Completing the Offer WizardSlide 10 of 31
  11. 11. Completing the Offer WizardSlide 11 of 31
  12. 12. Offer Documentation To submit an offer we need to include several documents: 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.Slide 12 of 31
  13. 13. Offer FormsSlide 13 of 31
  14. 14. Offer Forms Disclaimer: The scope of this class is to discuss the process for drafting an offer to purchase a home, the documents involved and the strategies for getting an offer accepted. The presenter is not a real estate attorney. Questions pertaining to the legal ramifications of the following contracts should be directed to a real estate attorney.Slide 14 of 31
  15. 15. Offer Forms Redfin 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 policy Who signs this document: Buyer and Buyer’s Agent (Selling Agent)Slide 15 of 31
  16. 16. Offer Forms Disclosure And Consent For Representation Of More Than One Buyer Or Seller (C.A.R. From DA) Discloses that the Broker (Redfin) may represent both the Buyer and Seller in a transaction. An individual Redfin Orange County agent will NOT represent both the Buyer and the Seller in any one transaction. Who signs this document: Buyer and Buyer’s Agent (Selling Agent)Slide 16 of 31
  17. 17. Offer Forms Market 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 offers Who signs this document: Buyer and Buyer’s Agent (Selling Agent)Slide 17 of 31
  18. 18. Offer Forms Disclosure Regarding Real Estate Agency Relationship (C.A.R. Form AD) Defines agency representation and relationships Describes the fiduciary duty expected of real estate agents Who signs this document: Buyer and Buyer’s Agent (Selling Agent) SellerSlide 18 of 31
  19. 19. Offer Forms Residential 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)Slide 19 of 31
  20. 20. Offer Forms Buyer’s Inspection Advisory (C.A.R. Form BIA) Advises Buyer to conduct thorough home inspections Outlines the importance of proper inspection of many different parts of the home and it’s surroundings Who signs this document: Buyer SellerSlide 20 of 31
  21. 21. Offer Forms Wood Destroying Pet Inspection And Allocation Of Cost Addendum (C.A.R. Form WPA) Outlines who is responsible for procuring and paying for a Wood Pest Report Establishes who is responsible for correcting conditions discovered by Wood Pest Report Section 1 & Section 2 conditions Who signs this document: Buyer SellerSlide 21 of 31
  22. 22. Short-Sales & Bank OwnedSlide 22 of 31
  23. 23. Offer Forms REO Advisory (C.A.R. Form REO) Informs Buyer of Seller exemptions in a bank owned transaction Establishes what is still required of the Seller Recommends Buyer have any addendums or amendments provided by Seller be reviewed by legal counsel Who signs this document: Buyer SellerSlide 23 of 31
  24. 24. Offer Forms Short Sale Addendum (C.A.R. Form SSA) Establishes timelines regarding short sale approval and contingencies Outlines expectations of Buyer and Seller regarding short sale approval period Who signs this document: Buyer SellerSlide 24 of 31
  25. 25. Offer Forms Short Sale Information And Advisory (C.A.R. Form SSIA) Defines short sale Informs Buyer and Seller of the alternatives to a short sale Discloses the difficulties that may arise during a short sale transaction Who signs this document: Buyer and Buyer’s Agent (Selling Agent) Seller and Seller’s Agent (Listing Agent)Slide 25 of 31
  26. 26. Offer Forms Bank Addendums / Amendments / Counter Offers Often added to bank owned (REO) transactions Modify terms of the RPA and may limit the bank’s liability Often add daily per diem if Buyer closes late Redfin can’t provide guidance or opinion on bank addendums, attorney review is strongly encouragedSlide 26 of 31
  27. 27. Other FormsSlide 27 of 31
  28. 28. Other Forms Request For Repair (C.A.R. Form RR) Used to ask the Seller to fix or credit Buyer for conditions discovered during the inspection period Seller is NOT obligated to fix items other than as required by local law RPA states property is sold in ‘As-Is’ conditionSlide 28 of 31
  29. 29. Other Forms Contingency Removal (C.A.R. Form CR) Removes some or all of Buyer’s contingencies and commits Buyer to the purchase If Buyer cancels transaction after removing contingencies deposit may be at risk Should not be signed until Buyer is confident in their ability to close and satisfied with any terms agreed upon during negotiationsSlide 29 of 31
  30. 30. Questions? Writing Class March 27, 2012 – Irvine, CASlide 30 of 31
  31. 31. Thank You! Cyndy.Stewart@redfin.comSlide 31 of 31