[REQUIRED – please add the main presenter’s photos]
[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
[REQUIRED – Updated every time]
[REQUIRED – Updated every time]
[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.
[OPTIONAL – cut or skip this slide if not relevant for your market or class]
5 minute break timer.To begin the timer, when in presentation view on the slide, click advance once and you will see the red appear from left to right. When the entire bar is red your break is up!
[REQUIRED]Add Lender’s name if he/she’s presenting
Chart:http://www.mortgagenewsdaily.com/mortgage_rates/charts.aspPrediction:http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index.aspxWill rates rise or remain relatively unchanged? This week (Nov. 7-13), half of the panelists believe mortgage rates will rise over the next week or so, one-third think rates will fall, and the rest believe rates will remain relatively unchanged (plus or minus 2 basis points).Read more: http://www.bankrate.com/news/rate-trends/mortgage.aspxRead more: Rate Trend Index - Mortgage Rate Trends - Bankrate.com http://www.bankrate.com/news/rate-trends/mortgage.aspx#ixzz2097YRlM8
[REQUIRED – Update with local lender]
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 Home Buying Class- Chicago
Redfin’s Home Buying Class
Redfin’s Far North/Northwest Team
November 20, 2013 Chicago
Redfin Far North/Northwest Team
Overview of the process
Are you ready to buy?
Understanding the market
Never miss a home
Choosing an agent
Retaining an Attorney
Short sales & foreclosures
Making an offer
Acceptance to closing
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
● Technology: sellers get more traffic; buyers tour homes first
● Value: a full-service brokerage that saves you thousands
Overview of a Buying a Home
Buying a Home
Talk to Lender
Attorney Review – 5 bus. days
Negotiate Offer to Contract
Inspection – 5 bus. days
Loan Commitment – ~30 days
- - - - - - - - - - - - - - - Home-Sale/Close contingency
Other inspection contingencies
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? 3.5% to 20+%
Have you saved up for closing costs? Typically 0-2%
Can you rent for less?
Current Average Rates
Type of Loan
December 5, 2013
November 27, 2013
Where Is the Market Headed?
● Supply of homes is at a five-year low and won’t increase
much more this year
● Foreclosures have been driving price declines, and years of
inventory remain. Investment groups might have impact
● Rents have been rising, making buying more attractive
● Market stabilized – price increases in many areas
● Rate increases - biggest potential issue for buyers
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?
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
Making the Most of Your Tour
Bring a camera, notebook & tape measure
See how much sunlight the place gets
Check the bathrooms for rot & mold
Look for wavy or discolored wood siding
Make sure water spouts drain away from
Take stock of storage space
Turn off any music playing in house
Check for hardwood floors
Peek into the attic
Bring a marble or two
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
How Touring with Redfin Works
● Led by agent or associate
● Up to six homes per tour in
two hour blocks
● Go on as many tours
as you need
● No obligation, no
Slide 25 of 55
Let’s Get Started!
● A pre-approval letter is a letter from a bank or a lender
letting the seller know your financing is in order
● The process helps you establish how much you can afford
and allows you to make an offer with confidence
● Redfin asks that you get pre-approved before your third tour
● The process can be done in person or over the phone and
in most cases a letter will be issued same day
● The pre-approval is good for 90 days, depending on lender
Facts on Getting Pre-Approved
● Applications are usually free and credit checks should not
cost more than $20
● If you get multiple credit checks from multiple lenders within
a 30 day period, this will only count as one credit check
against your credit score
● The application does not bind you to a lender, loan or rate
● You will get a better idea of any other action items you need
to complete before you can buy
● Gives you a chance to discuss different financing options
● A pre-approval letter is required by most sellers before the
offer is considered
Start Shopping for Lenders
Compile a list of 3-4 lenders & brokers
Good sources include:
● Redfin Open Book
► Redfin Certified lenders
► Reviews you can trust
● Your real estate agent
● Friends, family & co-workers
● Banks or credit unions you have accounts with
● Beware of out-of-state lenders!
● Redfin-Certified Providers
● Every professional is reviewed and all reviews are shown
● Search for local:
Local Recommended Lenders
In no way does
lenders – we just
think they’re great
Review Your Situation
Time to call the Lenders
● The Lenders will gather some basic information to:
● Determine qualified income
● Identify eligible assets
● Pull credit report, look for errors
● The purpose is to:
● Establish a comfort level for the monthly payment
● Identify and explore financing options
● Ensure that when the time is right the financing is ready
Review Your Income and Debt
● Things to do:
► Establish a budget
► Pull credit report, look for errors or derogatory
► Gather the 2 most current Tax Returns, W2’s, Pay Stubs
● Things to avoid:
► Opening new lines of credit
► Closing old lines of credit
► Buying big ticket items (car, furniture, engagement ring)
► Changing jobs
Organize Your Assets
● How much do you have available and where is it coming
► Checking and Savings
► 401k Loan
► Sale of stock
► Gift funds? (restrictions apply)
► Proceeds from the sale of another home
► Distribution from an estate or trust
● Be prepared to provide a paper trail that reflects available
balance and origin of funds
Comparing GFE Results
● Gather Good Faith Estimates (loan quotes)
► A minimum of three, more is better
► Compare similar loans
Program (FHA, conventional)
Timeframe (same day)
● Compare costs side-by-side
► Discount & origination points
► Interest rates
► Insurance premiums (FHA, PMI)
► APR (interest rates + fees + points + PMI)
Make Your Decision
● Choose your lender wisely
► Lock your interest rate
► Review and return the Loan Application with any required
► Be available to send any additional documentation as
► Stay informed and keep your finger on the pulse of the
► Be prepared with a contingency plan in the event there
are any unexpected delays
► Buckle up and enjoy the ride
What is a Short Sale?
The owner owes more on the mortgage than the home is
● 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
● Redfin partner agents work for other brokerages but share
Redfin’s commitment to customer service
● Get a 15% commission refund
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
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
► Title Review
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
Steps After Mutual Acceptance
Earnest money deposit – usually 3% to 5%
Inspection Contingency – approximately $350 to $600
Other inspections – radon, sewer scope, etc.
Attorney Review Contingency
Loan application and appraisal
Receive your keys!
…and Redfin rebate…
● We recommend that you have a home inspection
● About $350 to $600
● Ask Potential Inspectors;
Are you Licensed?
► Are you Insured?
► Do you use Thermal Imaging?
► Will you Walk the Roof?
► Will your Inspection Report include Pictures?
► What do you charge for the Inspection?
Home Inspection Hints
Watch out for:
•Mold, mildew or signs of
leaking near walls or floors
Look for and Check:
•Check all included
•Check water pressure
•Well ventilated attic
•Check for Radon
Prepares the final documents, including the HUD-1
Conducts the closing
Examines and clears the title to the property
Records the deed, mortgage and any other recordable
● Issues title insurance to the lender and the buyer
Signing and Closing
You’ll have a final walk-through on closing ●
day or just before
What to bring:
► Government issued photo ID
► Certified check or wired funds
Closing typically takes 1.5 to 3 hours, but
can run longer
Get keys and take possession!
Receive Redfin Rebate in about a week
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
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
● Complete the Survey