Slide 1 of 28
Redfin Home Buying Class
June 25th – Seattle, WA
Host: Ruby Manuel & Ben Hitchins
@Redfin
http://www.faceboo...
Slide 2 of 28
Meet Ben Hitchins!
Agent on Central Seattle Team
Slide 3 of 28
Meet Ruby Manuel!
Redfin Listing Specialist
Slide 4 of 28
Agenda
● To buy or not to buy
● Overview of purchase process
● Understanding the Market
● Mortgages
● Multip...
Slide 5 of 28
A Little Bit About Who We Are
Redfin is a real estate brokerage that has helped over 20,000
people buy or se...
Slide 6 of 28
Understanding the Buying
Process
Slide 7 of 28
Are You Ready to Buy?
● Do you have a family and need room to grow?
● Do you expect to stay put for 5 or mor...
Slide 8 of 28
Overview of a Purchase
Research
Neighborhoods
Real Estate Agents
Mortgage Options
Preapproval
Consider your ...
Slide 9 of 28
Market Conditions
Slide 10 of 28
Current Market: Seattle Inventory
Slide 11 of 28
Current Market: Seattle Rising Prices
Slide 12 of 28
Greater Seattle Area Overview
Slide 13 of 28
Local Market Trends: Seattle
May 2014: Bidding Wars
● 62.1% homes faced competition
 Up from 60.8% Month-O...
Slide 14 of 28
Local Market Trends: Seattle
● % of New Listings Under Contract in 2 weeks
►March 2014: 44.1%
►Feb. 2014: 3...
Slide 15 of 28
● Homes are being listed at strategically low prices
►So properties are selling above list price
►Base your...
Slide 16 of 28
What to do?
● Go see the home as soon as you can!
►First couple days on market
►Saved Searches
● Homes that...
Slide 17 of 28
Mortgages
Slide 18 of 28
Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly...
Slide 19 of 28
Get Pre-Approved Early
A pre-approval letter is a letter from a bank or a lender estimating
how much they'l...
Slide 20 of 28
Start Shopping for Lenders
Compile a list of 3-4 local lenders
Good sources include:
● Redfin's partner len...
Slide 21 of 28
5 Tips for Winning a Bidding War
1. Make the competition eat your dust – sign up a Redfin
listing alert!
2....
Slide 22 of 28
Overview
Slide 23 of 28
The Closing Process
Tour homes
Find dream home
Consult with agent, write offer
Submit offer to listing agen...
Slide 24 of 28
So What Now?
● Make sure it’s the right time for you
● Start browsing online
● Check out our Home Buying Gu...
Slide 25 of 28
Questions?!
Slide 26 of 28
Future Events!
Slide 27 of 28
Thanks for Coming!
Questions? Get in touch:
Ben Hitchins – ben.hitchins@redfin.com
Ruby Manuel – ruby.manue...
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Redfin Home Buying Class - Seattle, WA

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Redfin Home Buying Class - Seattle, WA

  1. 1. Slide 1 of 28 Redfin Home Buying Class June 25th – Seattle, WA Host: Ruby Manuel & Ben Hitchins @Redfin http://www.facebook.com/Redfin
  2. 2. Slide 2 of 28 Meet Ben Hitchins! Agent on Central Seattle Team
  3. 3. Slide 3 of 28 Meet Ruby Manuel! Redfin Listing Specialist
  4. 4. Slide 4 of 28 Agenda ● To buy or not to buy ● Overview of purchase process ● Understanding the Market ● Mortgages ● Multiple offers ● What to know about closing ● Questions
  5. 5. Slide 5 of 28 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 ● Right home for the right price  No obligation  Commission credit
  6. 6. Slide 6 of 28 Understanding the Buying Process
  7. 7. Slide 7 of 28 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?
  8. 8. Slide 8 of 28 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
  9. 9. Slide 9 of 28 Market Conditions
  10. 10. Slide 10 of 28 Current Market: Seattle Inventory
  11. 11. Slide 11 of 28 Current Market: Seattle Rising Prices
  12. 12. Slide 12 of 28 Greater Seattle Area Overview
  13. 13. Slide 13 of 28 Local Market Trends: Seattle May 2014: Bidding Wars ● 62.1% homes faced competition  Up from 60.8% Month-Over-Month  Down from 71.9% Year-Over-Year ● 41.9% homes sold over asking ● 0% avg. sale to list price ● Features of Winning Offers:  All Cash: 14%  Waived Financing: 11.6%  Waived Inspection: 23.3%  Had cover letter: 37.2%
  14. 14. Slide 14 of 28 Local Market Trends: Seattle ● % of New Listings Under Contract in 2 weeks ►March 2014: 44.1% ►Feb. 2014: 39.8% ►March 2013: 42.9% ● Median Number of Days on Market Until Pending ►March 2014: 23 ►Feb. 2014: 36 ►March 2013: 22
  15. 15. Slide 15 of 28 ● Homes are being listed at strategically low prices ►So properties are selling above list price ►Base your offer price on comps & trends – NOT on list price ● Deadlines are being set to accept & review offers ►Sellers usually review offers after about 7-14 days on market ►To give property exposure and create buzz amongst buyers ● Some buyers are waiving their contingencies in order to make their offers more attractive to the seller What Other Trends are We Noticing?
  16. 16. Slide 16 of 28 What to do? ● Go see the home as soon as you can! ►First couple days on market ►Saved Searches ● Homes that are priced well, and move-in ready, may sell in days. ● Expect to be up against multiple offers (5-10+), some cash offers ● Get pre approval early on
  17. 17. Slide 17 of 28 Mortgages
  18. 18. Slide 18 of 28 Review Your Financial Situation ● Pull credit report, look for errors ● Establish comfort level for monthly payment ● Pay down credit balances ● Don’t open any new lines of credit ● Don’t buy any big ticket items ● Source of money ● Current employment status
  19. 19. Slide 19 of 28 Get Pre-Approved Early 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 Info needed: ● W-2, two pay-stubs, tax returns, bank statements
  20. 20. Slide 20 of 28 Start Shopping for Lenders Compile a list of 3-4 local lenders Good sources include: ● Redfin's partner lenders ● Referrals from friends, family & co-workers ● Online review sites, such as Yelp ● Local chains and offices *Know your lender
  21. 21. Slide 21 of 28 5 Tips for Winning a Bidding War 1. Make the competition eat your dust – sign up a Redfin listing alert! 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
  22. 22. Slide 22 of 28 Overview
  23. 23. Slide 23 of 28 The Closing Process Tour homes Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations Success! Mutual Acceptance Earnest money [Within 2 days] Inspection contingency [3-5 days] Loan & Appraisal Contingency [20-30days] Title review [5 days] Waiting for loan approval Escrow signing appointment Get keys and take possession! Closing! Overview of a Purchase Receive Redfin refund Complete Redfin survey Get pre-approved
  24. 24. Slide 24 of 28 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
  25. 25. Slide 25 of 28 Questions?!
  26. 26. Slide 26 of 28 Future Events!
  27. 27. Slide 27 of 28 Thanks for Coming! Questions? Get in touch: Ben Hitchins – ben.hitchins@redfin.com Ruby Manuel – ruby.manuel@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

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