Welcome to Our Home Buying ClassWelcome to Our Home Buying Class
Pre-Class Task
Pl it d ti ld lik d t i htPlease write dow...
Redfin’s Home Buying ClassRedfin s Home Buying Class
Presented by: Redfin’s Phoenix Team
Date: June 26, 2014
Phoenix AZPho...
Agendag
● Overview of the process
● Are you ready to buy?
● Understanding the market● Understanding the market
● Never mis...
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%...
Redfin Phoenix Buyside Team
Angel Scott
2014 Expected Deal
Count for Each Agent
Roseann
Angel
Est. 36
Deals
Scott
Est. 36
...
Redfin’s Listing Teamg
Raegan Kraft
Redfin Listing Specialistg p
75 Transactions in 2 years
Projected to close 40 transact...
The Redfin Support Teampp
Marcia Bradley
Buyside Coordinator
Team of Associate Agents
Responsible for helping agents in
th...
Understanding the
Buying Process
Are You Ready to Buy?y y
● Do you have a family and need room to grow?
● Do you expect to own the home for 5 or more years...
Overview of a Purchase
Research
Neighborhoods
Search
Define Preferences
Offer
Comparables
Closing
Earnest Money
Real Estat...
Understanding theg
Market
Chandler May 2014 Stats for Housesy
Chandler May 2014 Stats for Condosy
Chandler Inventoryy
Chandler Area Overview
Redfin Price Tracker
35,000
Total Active and Sold Listings
Phoenix Area - All Homes
Active Listings
25 000
30,000
Active Listings
Sold Listings...
6
Months of Inventory
Months of Inventory
4
5
3
4
1
2
0
1
$300,000
Average Sales Price
Phoenix Area
Average Sales Price
$250,000
Average Sales Price
$150,000
$200,000
$100,000
$-
$...
98.5%
How Close to the Final List Price Are Homes Selling For?
98.0%
97.5%
96 5%
97.0%
96.0%
96.5%
20%
Interest Rates 1971 ‐ Today
30 Yr Fixed Source: Freddie Mac
Interest Rate
18.45%
16%
18%
20% Interest Rate
10%
12%
14%...
5.00%
Interest Rates Past 18 months
30 Yr Fixed Source: Freddie Mac
4.37%
4.46% 4.49% 4.46% 4.43%
4 34% 4 34%
4.60%
4.80%
...
Never Miss A Home
Real Estate Sites: What to Look For
● Has all the homes for sale
● Updated every 15 minutesp y
● Real-time sales data
● In...
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
Your Agent. A Good Fit?
Click hereClick here
when you
decide
See all
deals &
reviews
Redfin’s Partner Program
P t t l d b th b k d h t dPartner agents are employed by other brokerages, and have teamed
up wit...
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...
How Touring with Redfin Worksg
● Led by agent or associate
agentg
● Up to six homes per tour in
two hour blocks
● Go on as...
MMortgages
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 youmuch ...
Pulling Credit: Is It Harmful?g
● Your credit report must be reviewed by a lender before you
can obtain a pre-approval
● I...
Start Shopping for Lenders
Compile a list of 3-4 local lenders
G d i l dGood sources include:
● Redfin's partner lenders
●...
Local Recommended Lenders
In no way does
Redfin benefit
financially froma c a y o
recommending
lenders – we
just think
th ...
Break!
Angel Johnson
angel.johnson@redfin.comg j
Phoenix
Wayne GrahamWayne Graham
wayne.graham@redfin.com
PhoenixPhoenix
10-Minute Break
10 mins 5 mins End
L t’ G t St t d!Let’s Get Started!
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:
V b l ti ti► Verbal nego...
Making an Offer
Crafting Your Offer
● Evaluate your agent will provide you with information about market● Evaluate – your agent will provi...
Tips for Winning a Bidding War
1. Just win, baby! Simply have the best offer.
► Cash is King
► Escalate your price?
► Tigh...
Ratification to Closing
Steps After Contract Ratification
● Earnest money deposit – usually 1-3%+
● Inspection – approximately $500
● Other inspec...
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?
This means the seller has accepted an offer on the property, but
success may still depend on passi...
Title Companies
● Holds the earnest money deposit
● Prepares the final documents including the HUD-1● Prepares the final d...
Closing: HUD–1 Settlement
Walkthrough & Closing
A day or two prior to closing you will do a walkthrough to make sureA day or two prior to closing yo...
Selling Your Home with Redfin
Better Service, Lower Fees
● We’re on your side
► Agents paid on your satisfaction
D bl● Double your exposure
► Premium pl...
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 ...
Future Events!
Thanks for Coming!
Questions? Get in touch:
Wayne Graham – wayne.graham@redfin.com
Angel Johnson – angel.johnson@redfin.co...
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Redfin Free Home Buying Class - Chandler, AZ

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Redfin Free Home Buying Class - Chandler, AZ

  1. 1. Welcome to Our Home Buying ClassWelcome to Our Home Buying Class Pre-Class Task Pl it d ti ld lik d t i htPlease write down any questions you would like answered tonight G h d d th t it th t blGo ahead and use the post-its on the table
  2. 2. Redfin’s Home Buying ClassRedfin s Home Buying Class Presented by: Redfin’s Phoenix Team Date: June 26, 2014 Phoenix AZPhoenix, AZ H W G h &Hosts: Wayne Graham & Angel Johnson @Redfin@Redfin facebook.com/Redfin
  3. 3. Agendag ● Overview of the process ● Are you ready to buy? ● Understanding the market● Understanding the market ● Never miss a home ● Choosing an agent T i● Touring ● Mortgages ● Break! ● Short sales & foreclosures ● Making an offer ● Acceptance to closingp g
  4. 4. 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 I f d d i i● Informed decisions ● Right home for the right price  No obligation  Commission credit Commission credit
  5. 5. Redfin Phoenix Buyside Team Angel Scott 2014 Expected Deal Count for Each Agent Roseann Angel Est. 36 Deals Scott Est. 36 Deals BrendaRoseann Est. 10 Deals Brenda Est. 30 Deals 6 Agents 208 Deals $72 Million in Wayne Est. 36 Deals Kevin Est. 40 DealsSales VolumeDeals Deals
  6. 6. Redfin’s Listing Teamg Raegan Kraft Redfin Listing Specialistg p 75 Transactions in 2 years Projected to close 40 transactions in 2014 Territory: East Valley and Northeast Valley Roseann Cossman Redfin Listing Specialist Projected to close 45 transactions in 2014 T it N th E t V ll d W t V llTerritory: North East Valley and West Valley
  7. 7. The Redfin Support Teampp Marcia Bradley Buyside Coordinator Team of Associate Agents Responsible for helping agents in the field with activities ranging fromWill handle: 200 transactions in 2014 Joleen Sposeto the field with activities ranging from home tours, flyer drop offs, walk- throughs, etc. p Listing Coordinator Will handle: 75 transactions in 2014 Lisa AshfordLisa Ashford Hybrid Transaction and Tour Coordinator Will handle: 25 transactions in 2014 Will connect with: 2,300 Redfin customers in 2014
  8. 8. Understanding the Buying Process
  9. 9. Are You Ready to Buy?y y ● Do you have a family and need room to grow? ● Do you expect to own the home for 5 or more years? H d d t?● Have you saved up a down payment? ● Can you rent for less?
  10. 10. Overview of a Purchase Research Neighborhoods Search Define Preferences Offer Comparables Closing Earnest Money Real Estate Agents Mortgage Options Saved Search Home Tours Draft Offer Docs Negotiate Inspection Loan applicationMortgage Options Preapproval Home Tours Open Houses Negotiate Mutual Acceptance Loan application Title Review Consider your needs Appraisal Financing Approval Closing
  11. 11. Understanding theg Market
  12. 12. Chandler May 2014 Stats for Housesy
  13. 13. Chandler May 2014 Stats for Condosy
  14. 14. Chandler Inventoryy
  15. 15. Chandler Area Overview
  16. 16. Redfin Price Tracker
  17. 17. 35,000 Total Active and Sold Listings Phoenix Area - All Homes Active Listings 25 000 30,000 Active Listings Sold Listings 20,000 25,000 10,000 15,000 - 5,000
  18. 18. 6 Months of Inventory Months of Inventory 4 5 3 4 1 2 0 1
  19. 19. $300,000 Average Sales Price Phoenix Area Average Sales Price $250,000 Average Sales Price $150,000 $200,000 $100,000 $- $50,000 $
  20. 20. 98.5% How Close to the Final List Price Are Homes Selling For? 98.0% 97.5% 96 5% 97.0% 96.0% 96.5%
  21. 21. 20% Interest Rates 1971 ‐ Today 30 Yr Fixed Source: Freddie Mac Interest Rate 18.45% 16% 18% 20% Interest Rate 10% 12% 14% 4.19% 6% 8% 0% 2% 4% 1 2 3 4 5 7 8 9 0 1 2 4 5 6 7 8 9 1 2 3 4 5 6 8 9 0 1 2 3 5 6 7 8 9 0 2 3 Apr‐71 Jun‐72 Aug‐73 Oct‐74 Dec‐75 Feb‐77 Apr‐78 Jun‐79 Aug‐80 Oct‐81 Dec‐82 Feb‐84 Apr‐85 Jun‐86 Aug‐87 Oct‐88 Dec‐89 Feb‐91 Apr‐92 Jun‐93 Aug‐94 Oct‐95 Dec‐96 Feb‐98 Apr‐99 Jun‐00 Aug‐01 Oct‐02 Dec‐03 Feb‐05 Apr‐06 Jun‐07 Aug‐08 Oct‐09 Dec‐10 Feb‐12 Apr‐13
  22. 22. 5.00% Interest Rates Past 18 months 30 Yr Fixed Source: Freddie Mac 4.37% 4.46% 4.49% 4.46% 4.43% 4 34% 4 34% 4.60% 4.80% 5.00% Interest Rate 1% Increase in Rates ≈ 12%  4.07% 4.37% 4.19% 4.26% 4.30% 4.34% 4.34% 4.19% 4.00% 4.20% 4.40% increase in P&I Payments 3 35% 3.41% 3.53% 3.57% 3.45% 3.54% 3.60% 3.80% 3.35% 3.00% 3.20% 3.40%
  23. 23. Never Miss A Home
  24. 24. Real Estate Sites: What to Look For ● Has all the homes for sale ● Updated every 15 minutesp y ● Real-time sales data ● Insights from agentsg g ● Lots of data ● Mobile appsob e apps
  25. 25. Never Miss a Home
  26. 26. Choosing the Right Agent
  27. 27. What to Ask Any Agent ● Is this your full-time job? ● Where were your last five deals? ● Who else will be working with me?● 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?● How are you paid? ● Can I see some reviews of your work?
  28. 28. Redfin Agent Reviews
  29. 29. Your Agent. A Good Fit? Click hereClick here when you decide See all deals & reviews
  30. 30. Redfin’s Partner Program P t t l d b th b k d h t dPartner 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: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► 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
  31. 31. Seeing Homes in Person
  32. 32. 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 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 carpets4. 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 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 details8. Check for hardwood floors details
  33. 33. How Touring with Redfin Worksg ● Led by agent or associate agentg ● Up to six homes per tour in two hour blocks ● Go on as many tours as you need N bli i● No obligation, no pressure Slide 33 of 55
  34. 34. MMortgages
  35. 35. 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 P d dit b l t 1/3 d● Pay down credit balances to 1/3rd ● Don’t open any new lines of credit ● Don’t buy any big ticket items● Don t buy any big ticket items ● Source of money ● Current employment status
  36. 36. Get Pre-Approved Early A pre-approval letter is a letter from a bank or a lender estimating how much they'll lend youmuch 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● 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 statementsW 2, two pay stubs, tax returns, bank statements
  37. 37. Pulling Credit: Is It Harmful?g ● 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 M i t i i l● Maintaining a pre-approval has a negligible impact on your credit scoreyour credit score
  38. 38. Start Shopping for Lenders Compile a list of 3-4 local lenders G d i l dGood sources include: ● Redfin's partner lenders ● Referrals from friends family & co-workers● Referrals from friends, family & co workers ● Online review sites, such as Yelp ● Local chains and offices *K l d*Know your lender
  39. 39. Local Recommended Lenders In no way does Redfin benefit financially froma c a y o recommending lenders – we just think th ’ tthey’re great lenders!
  40. 40. Break! Angel Johnson angel.johnson@redfin.comg j Phoenix Wayne GrahamWayne Graham wayne.graham@redfin.com PhoenixPhoenix
  41. 41. 10-Minute Break 10 mins 5 mins End L t’ G t St t d!Let’s Get Started!
  42. 42. Short Sales and Bank Owned
  43. 43. 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 bankListed 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● 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● Get a 15% commission refund
  44. 44. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender ● Standard sale but: V b l ti ti► Verbal negotiations ► Long response times ► Repairs unlikely► 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 E t d it ll h ld b li ti t► Earnest money deposit usually held by listing agent
  45. 45. Making an Offer
  46. 46. Crafting Your Offer ● Evaluate your agent will provide you with information about market● 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:● Common contingencies & terms: ► Earnest Money ► Inspectionp ► Financing ► Appraisal ► Title Review
  47. 47. Tips for Winning a Bidding War 1. Just win, baby! Simply have the best offer. ► Cash is King ► Escalate your price? ► Tighten your timelinesg y ► Remove some contingencies? 2. Get pre-approved with a local lenderp pp 3. What’s important to the seller? 4. Write a letter & appeal to the sellerpp
  48. 48. Ratification to Closing
  49. 49. Steps After Contract Ratification ● Earnest money deposit – usually 1-3%+ ● Inspection – approximately $500 ● Other inspections – radon lead etc● Other inspections radon, lead etc. ● Loan application – 7days or less ● Title review ● Appraisal ● Loan approval ● Document signing● Document signing ● Walk through ● Closing R i k !● Receive your keys!
  50. 50. 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 propertyp p y Let’s talk about: ● What an inspection contingency covers and doesn’t cover ● Types of inspectionsyp p
  51. 51. 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 i fi igetting financing. Other types: ● Appraisal – Performed in conjunction with financing ● Financing ● Inspection ● Other
  52. 52. Title Companies ● Holds the earnest money deposit ● Prepares the final documents including the HUD-1● Prepares the final documents, including the HUD 1 ● Conducts the closing ● Receive and disburse funds for closingReceive and disburse funds for closing ● Arrange for pay off of any liens (sellers’ mortgage, taxes, etc) ● Examines and clears the title to the propertyp p y ● Records the deed, mortgage and any other recordable instruments ● Issues title insurance to the lender and the buyer
  53. 53. Closing: HUD–1 Settlement
  54. 54. Walkthrough & Closing A day or two prior to closing you will do a walkthrough to make sureA day or two prior to closing you will do a walkthrough to make sure the property is in the agreed upon condition At closing you will sign all necessary mortgage and closing documents d t k !and get your keys!
  55. 55. Selling Your Home with Redfin
  56. 56. Better Service, Lower Fees ● We’re on your side ► Agents paid on your satisfaction D bl● Double your exposure ► Premium placement on Redfin ► Zillow Trulia Craigslist and Realtor► Zillow, Trulia, Craigslist and Realtor ● 1.5% listing fee ► Professional photos ► Beautiful flyers W ’ h l d 50 l ll th i h i th l t i thWe’ve helped over 50 people sell their homes in the last six months.
  57. 57. All Done!
  58. 58. So What Now? ● Make sure it’s the right time for you ● Start browsing online ● Check out our Home Buying Guide ● Find the right agentg g ● Look for a local lender and get pre-approved ● Start seeing homes in persong p ● Make an offer & close the deal
  59. 59. Future Events!
  60. 60. Thanks for Coming! Questions? Get in touch: Wayne Graham – wayne.graham@redfin.com Angel Johnson – angel.johnson@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-eventsp y

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