[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]Add Lender’s name if he/she’s presenting
[REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/
[REQUIRED – Update with local lender]
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!
OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
We’ll stick around…
Redfin Marin Home Buying Class 2.20.14
Redfin’s Home Buying Event
Redfin’s Marin County Team
February 20, 2014 ~ Mill Valley, CA
Host: Mark Biggins
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
Overview of Buying a Home
Real Estate Sites: What to Look For
● Has all the homes for sale
● Updated every 15 minutes
● Real-time sales data
● Insights from agents
● Lots of data
● Mobile apps
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 15 of 55
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 complaint?
How are you paid?
Can I see some reviews of your work?
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
● W-2, two pay-stubs, tax returns, bank statements
oSalary—Past 30 days
oHourly—Consistency and history
oSelf-employed—Two year average
o640 for FHA
o680 for Conventional
o720 for Rate Improvement
o Down Payment
o Closing Costs
o Cash Reserves
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
oHas car payment $300
oWants to buy a home for
oHas 20% down payment
o $6,500 x 45% = $2,925
o $2,925 – 300 (other
o30/Yr Fixed, 3.75%
= Allowed $2,625/Month!
= Qualified $2,540/Month!
o1.41% on purchase price
= $588 ($7,050/yr)
= $100 ($1,200/yr)
Where Are Rates Headed?
Type of Loan
February 13, 2014
February 6, 2014
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
Local Recommended Lenders
In no way
g lenders – we
Let’s Get Started!
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
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 getting financing.
● Appraisal – Performed in conjunction with financing
● Preliminary Title Report
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%+
Inspection – approximately $500
Other inspections – plumbing, structural, roof etc.
Receive your keys!
What is Escrow?
Escrow is a third party intermediary that represents neither the
buyer nor the seller.
What do they do?
• Hold the earnest money
• Arrange for payoff of any liens (seller’s
mortgage, utilities, etc.)
• Coordinate the signing appointments for all parties
• Receive and disburse funds for closing
• Arrange to notify county offices to change ownership
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 property
Let’s talk about:
● What an inspection contingency covers and doesn’t cover
● Types of inspections
The Closing Process
Overview of a
Find dream home
Consult with agent, write offer
Submit offer to listing agent
Success! Mutual Acceptance
Earnest money [Within 3 days]
Inspection contingency [10-17 days]
Title review [5 days]
Loan & Appraisal Contingency [17 days]
Waiting for loan approval
Escrow signing appointment
Get keys and take possession!
Receive Redfin refund
Complete Redfin survey
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