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Livermore Home Buying Webinar 8.8. 2013

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Livermore Home Buying Webinar 8.8. 2013

  1. 1. Slide 1 of 27 Home Buying 101 Webinar August 8, 2013 Presented By: Sonal Basu Redfin’s Livermore - PleasantonTeam
  2. 2. Slide 2 of 27 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 commission
  3. 3. Slide 3 of 27 Understanding the Buying Process
  4. 4. Slide 4 of 27 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 a down payment? ● Can you rent for less?
  5. 5. Slide 5 of 27 Overview of a Purchase Research Neighborhoods Real Estate Agents Mortgage Options Preapproval Consider your needs Search Define Preferences Saved Search Home Tours Open Houses Offer Comparables Draft Offer Docs Negotiate Mutual Acceptance Closing Earnest Money Inspection Loan application Title Review Appraisal Financing Approval Closing
  6. 6. Slide 6 of 27 Market Conditions
  7. 7. Slide 7 of 55 0.00 50.00 100.00 150.00 200.00 250.00 20 City Composite San Francisco Case-Shiller: San Francisco Area v. 20-City
  8. 8. Slide 8 of 27 Where to find data…
  9. 9. Slide 9 of 27 This occurs when inventory is down and buyer interest is up 5 Tips for Winning in a Bidding War 1. Make the competition eat your dust 2. Get pre-approved with a local lender & get underwriter approval 3. Start the conversation early 4. Write a letter & appeal to the seller 5. Know your limits Multiple Offer Situations
  10. 10. Slide 10 of 27 National Market Trends The March key metrics across 19 major metropolitan markets: ● Home sales rose 25% from February, but were barely up from 2012, rising just 0.9% year-over-year, the smallest gain in 14 months. ● The number of homes for sale declined 31% from March 2012 to March 2013 (a slight improvement over the 32% drop in February), and were flat month over month. ● Home prices in March increased 15% year over year, and rose 6% just since February. ● The percentage of listings that were under contract within 14 days of their debut inched up yet again from 33.2% in February to 34.8% in March, the highest point on record.
  11. 11. Slide 11 of 27 National Market Trends
  12. 12. Slide 12 of 27 What Happens After You Find a Home You Love?
  13. 13. Slide 13 of 27 What to Ask Any Agent ● Is this your full-time job? ● Familiar with foreclosures or short-sales? ● Where were your last five deals? ● Who else will be working with me? ● Will you show me all properties for sale? ● When am I committed to working with you? ● Has a client ever filed a complaint? ● How are you paid?
  14. 14. Slide 14 of 27 Traditional vs. Redfin
  15. 15. Slide 15 of 27 Redfin’s Partner Program Partner agents are employed by other brokerages, but have teamed up with us to provide Redfin-Certified service to a wider range of customers. We’ll refer you to a partner agent when: ► A home is outside of our direct service area ► A home is below our price minimum ► We’re experiencing an 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
  16. 16. Slide 16 of 27 Open Book ● Redfin Certified Providers ● Every professional is reviewed and all reviews are shown ● Search for local: ► Inspectors ► Lenders ► Title Companies
  17. 17. Slide 17 of 27 We List Homes, Too! ● More people see your home ► Premium placement on Redfin.com ► Mobile apps target on-the-go buyers ► Professional flyers ● You’ll know it all at every step ► Email all buyers who see your home ► See how many people have viewed your home ► Advise you at every step in the process
  18. 18. Slide 18 of 27 Mortgages
  19. 19. Slide 19 of 27 Getting Pre-Approved 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 ● Good for 90 days, depending on lender ● Ask for a few different amounts ● Redfin asks that you get pre-approved before your third tour ● Similar, yet different from pre-qualification Information needed: ● W-2, two pay-stubs, tax returns, bank statements
  20. 20. Slide 20 of 27 Organize Your Assets ● Get ready for the down payment ● Cash accounts (liquid funds) ● 401k, stocks, other investments ● Gift funds? (max. allowed varies) ● Move funds around early
  21. 21. Slide 21 of 27 Review Your Debt ● Pull credit report, look for errors ● 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 ● Co-borrower will need to do the same
  22. 22. Slide 22 of 27 Start Shopping for Lenders Compile a list of 3-4 lenders & brokers Good sources include: ● Redfin's partner lenders ● Referrals from friends, family & co-workers ● Banks or credit unions you have accounts at ● A large, national bank with an advertised rate ● Your real estate agent ● Online review sites, such as Yelp
  23. 23. Slide 23 of 27 Comparing Loan Estimates ● Gather loan estimates ► A minimum of three, more is better ► These aren’t final numbers, but within a few thousand dollars ► 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)
  24. 24. Slide 24 of 27 Current Average Rates Type of Loan August 1, 2013 July 25, 2013 30-Year Fixed 4.39% 4.31% 15-Year Fixed 3.43% 3.39% 5/1 ARM 3.18% 3.16% 1-Year ARM 2.64% 2.65%
  25. 25. Slide 25 of 27 Make Your Decision ● When possible, get a loan commitment ● Make alternative funds liquid (401k, stock) Good news! Loan payments are made in arrears, so your first loan payment won’t be for two months.
  26. 26. Slide 26 of 27 Next Steps • Check out our agents and their reviews • Study the inventory and houses in your areas • Go out on Tour with us, no obligation • Ask a lot of questions and see a lot of houses • Email me: sonal.basu@redfin.com • Check the events page for upcoming classes • Go back to work!

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